0001193125-08-081700.txt : 20110304 0001193125-08-081700.hdr.sgml : 20110304 20080415154712 ACCESSION NUMBER: 0001193125-08-081700 CONFORMED SUBMISSION TYPE: 485APOS PUBLIC DOCUMENT COUNT: 7 FILED AS OF DATE: 20080415 DATE AS OF CHANGE: 20080428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METLIFE INVESTORS USA SEPARATE ACCOUNT A CENTRAL INDEX KEY: 0000356475 IRS NUMBER: 540696644 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485APOS SEC ACT: 1933 Act SEC FILE NUMBER: 333-54464 FILM NUMBER: 08757142 BUSINESS ADDRESS: STREET 1: 5 PARK PLAZA, SUITE 1900 CITY: IRVINE STATE: CA ZIP: 92614 BUSINESS PHONE: 9492235680 MAIL ADDRESS: STREET 1: 5 PARK PLAZA, SUITE 1900 CITY: IRVINE STATE: CA ZIP: 92614 FORMER COMPANY: FORMER CONFORMED NAME: METLIFE INVESTORS SEPARATE ACCOUNT A DATE OF NAME CHANGE: 20010314 FORMER COMPANY: FORMER CONFORMED NAME: SECURITY FIRST LIFE SEPARATE ACCOUNT A DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METLIFE INVESTORS USA SEPARATE ACCOUNT A CENTRAL INDEX KEY: 0000356475 IRS NUMBER: 540696644 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485APOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-03365 FILM NUMBER: 08757143 BUSINESS ADDRESS: STREET 1: 5 PARK PLAZA, SUITE 1900 CITY: IRVINE STATE: CA ZIP: 92614 BUSINESS PHONE: 9492235680 MAIL ADDRESS: STREET 1: 5 PARK PLAZA, SUITE 1900 CITY: IRVINE STATE: CA ZIP: 92614 FORMER COMPANY: FORMER CONFORMED NAME: METLIFE INVESTORS SEPARATE ACCOUNT A DATE OF NAME CHANGE: 20010314 FORMER COMPANY: FORMER CONFORMED NAME: SECURITY FIRST LIFE SEPARATE ACCOUNT A DATE OF NAME CHANGE: 19920703 0000356475 S000005224 METLIFE INVESTORS USA SEPARATE ACCOUNT A C000014237 Series VA 485APOS 1 d485apos.txt METLIFE INVESTORS USA SERIES VA POST-EFFECTIVE AMENDMENT NO. 31 As filed with the Securities and Exchange Commission on April 15, 2008 File Nos. 333-54464 811-03365 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-4 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Pre-Effective Amendment No. [] Post-Effective Amendment No. 31 [x] and REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. 284 [x] (Check Appropriate Box or Boxes) MetLife Investors USA Separate Account A (Exact Name of Registrant) MetLife Investors USA Insurance Company 5 Park Plaza, Suite 1900 Irvine, California 92614 (Address of Depositor's Principal Executive Offices) (Zip Code) Depositor's Telephone Number, including Area Code (800) 989-3752 (Name and Address of Agent for Service) Richard C. Pearson Vice President MetLife Investors USA Insurance Company c/o 5 Park Plaza, Suite 1900 Irvine, CA 92614 (949) 223-5680 COPIES TO: W. Thomas Conner Sutherland Asbill & Brennan LLP 1275 Pennsylvania Avenue, NW Washington, DC 20004-2415 (202) 383-0590 (Approximate Date of Proposed Public Offering) It is proposed that this filing will become effective (check appropriate box): [] immediately upon filing pursuant to paragraph (b) of Rule 485. [] on (date) pursuant to paragraph (b) of Rule 485. [x] 60 days after filing pursuant to paragraph (a)(1) of Rule 485. [] on (date) pursuant to paragraph (a)(1) of Rule 485. If appropriate, check the following box: [] this post-effective amendment designates a new effective date for a previously filed post-effective amendment. Title of Securities Registered: Individual Variable Annuity Contracts METLIFE INVESTORS USA INSURANCE COMPANY METLIFE INVESTORS USA SEPARATE ACCOUNT A SUPPLEMENT DATED APRIL 28, 2008 TO PROSPECTUSES DATED APRIL 28, 2008 For contracts issued on or after November 13, 2006, (or a later date, subject to state approval), this supplement describes the annuity date provision under the contract offered by the selling firm to which your account representative is associated. This supplement applies to the Series XC, C, L and VA variable annuity contracts issued by MetLife Investors USA Insurance Company ("we," "us," or "our"). This supplement provides information in addition to that contained in the prospectus dated April 28, 2008 for the contract. It should be read in its entirety and kept together with your prospectus for future reference. If you would like another copy of the prospectus, write to us at 5 Park Plaza, Suite 1900, Irvine, CA 92614 or call us at (800) 343-8496 to request a free copy. Certain terms used in this supplement have special meanings. If a term is not defined in this supplement, it has the meaning given to it in the prospectus. 1. ANNUITY DATE In the "ANNUITY PAYMENTS (THE INCOME PHASE)--Annuity Date" section of the prospectus, replace the second and third paragraphs with the following: When you purchase the contract, the annuity date will be the later of the first day of the calendar month after the annuitant's 90th birthday or ten (10) years from the date your contract was issued. You can change the annuity date at any time before the annuity date with 30 days prior notice to us. However, if you have bought your contract through the selling firm to which your account representative is associated, you cannot change your annuity date to a date beyond age 95 of the annuitant (see "Other Information--Annuitant" for the definition of annuitant and permitted changes of the annuitant). PLEASE BE AWARE THAT ONCE YOUR CONTRACT IS ANNUITIZED, YOU ARE INELIGIBLE TO RECEIVE THE DEATH BENEFIT YOU HAVE SELECTED. ADDITIONALLY, IF YOU HAVE ELECTED A LIVING BENEFIT RIDER SUCH AS A GUARANTEED WITHDRAWAL BENEFIT, A GUARANTEED MINIMUM INCOME BENEFIT, OR THE GUARANTEED MINIMUM ACCUMULATION BENEFIT, AND THE RIDER CONTINUES IN EFFECT AT THE TIME OF ANNUITIZATION, ANNUITIZING YOUR CONTRACT TERMINATES THE RIDER, INCLUDING ANY DEATH BENEFIT PROVIDED BY THE RIDER AND ANY GUARANTEED PRINCIPAL ADJUSTMENT (FOR THE LIFETIME WITHDRAWAL GUARANTEE OR GUARANTEED MINIMUM INCOME BENEFIT PLUS RIDERS) OR GUARANTEED ACCUMULATION PAYMENT (FOR THE GUARANTEED MINIMUM ACCUMULATION BENEFIT RIDER) THAT MAY ALSO BE PROVIDED BY THE RIDER. For a Guaranteed Withdrawal Benefit rider where annuitization must occur no later than age 95 of the annuitant, there are several annuity income options to choose from during the annuity phase that you should be aware of. (See "Annuitization" below in this prospectus supplement). 2. LIFETIME WITHDRAWAL GUARANTEE--REMAINING GUARANTEED WITHDRAWAL AMOUNT In the "Description of the Lifetime Withdrawal Guarantee II" section of the "LIVING BENEFITS" section of the prospectus, replace the last bullet item above the "Managing Your Withdrawals" subsection with the following: At any time during the accumulation phase, you can elect to annuitize under current annuity rates in lieu of continuing the LWG I or LWG II rider. When the annuitant attains age 95, your contract must be annuitized. Annuitization may provide higher income amounts and/or different tax treatment than the payments received under the LWG I or LWG II rider. (See "Annuitization" below in this prospectus supplement.) SUPP-MLFAN08 3. ANNUITIZATION Add the following at the end of the "Guaranteed Withdrawal Benefits" section of the "LIVING BENEFITS" section of the prospectus, just before the "Guaranteed Minimum Accumulation Benefit" section: GUARANTEED WITHDRAWAL BENEFIT AND ANNUITIZATION. At any time during the accumulation phase, you can elect to annuitize under current annuity rates in lieu of continuing any Guaranteed Withdrawal Benefit rider. For contracts issued on or after November 13, 2006 (or a later date, subject to state approval), when the annuitant attains age 95, your contract must be annuitized. (See "Annuity Date" above in this prospectus supplement.) At the required annuitization date you must select one of the following annuity income options: 1) Annuitize the account value under the contract's annuity provisions. 2) Elect to receive the Annual Benefit Payment paid each year until the Benefit Base (for GWB I or Enhanced GWB) or Remaining Guaranteed Withdrawal Amount (for the Lifetime Withdrawal Guarantee riders) is depleted. These payments will be equal in amount, except for the last payment that will be in an amount necessary to reduce the Benefit Base or Remaining Guaranteed Withdrawal Amount to zero. 3) If eligible for lifetime withdrawals under the LWG I or LWG II, elect to receive the Annual Benefit Payment paid each year until your death (or the later of your and your spousal beneficiary's death for the Joint Life version of the LWG I or LWG II). If you (or you and your spousal beneficiary for the Joint Life version) die before the Remaining Guaranteed Withdrawal Amount is depleted, your beneficiaries will continue to receive payments equal to the Annual Benefit Payment each year until the Remaining Guaranteed Withdrawal Amount is depleted. These payments will be equal in amount, except for the last payment that will be in an amount necessary to reduce the Remaining Guaranteed Withdrawal Amount to zero. Since the annuity date at the time you purchase the contract is the later of age 90 of the annuitant or 10 years from contract issue date, you will need to make an election if you would like to extend your annuity date to age 95 of the annuitant. At the time of annuitization, you will need to select an annuity income option from one of the above referenced payout options (or any other annuity income option available under your contract) (see "ANNUITY PAYMENTS (THE INCOME PHASE)--Annuity Options" in the prospectus). The default annuity income option is a life annuity with 10 years of annuity payments guaranteed. We will increase your payments so your aggregate payments will not be less than what you would have received under a GWB rider including the LWG I or LWG II. THIS SUPPLEMENT SHOULD BE READ AND RETAINED FOR FUTURE REFERENCE. Distributor: MetLife Investors Distribution Company Telephone: 800-343-8496 5 Park Plaza, Suite 1900 Irvine, CA 92614 THE VARIABLE ANNUITY CONTRACT ISSUED BY METLIFE INVESTORS USA INSURANCE COMPANY AND METLIFE INVESTORS USA SEPARATE ACCOUNT A SERIES VA APRIL 28, 2008 This prospectus describes the flexible premium deferred variable annuity contract offered by MetLife Investors USA Insurance Company (MetLife Investors USA or we or us). The contracts are offered for individuals and some tax qualified and non-tax qualified retirement plans. The annuity contract has 41 investment choices - a fixed account that offers an interest rate guaranteed by us, and 40 investment portfolios listed below. You can put your money in the fixed account and/or any of these investment portfolios. MET INVESTORS SERIES TRUST (CLASS B OR, AS NOTED, CLASS C): American Funds Bond Portfolio (Class C) American Funds Growth Portfolio (Class C) American Funds International Portfolio (Class C) BlackRock High Yield Portfolio Clarion Global Real Estate Portfolio (formerly Neuberger Berman Real Estate Portfolio) Harris Oakmark International Portfolio Lazard Mid Cap Portfolio Legg Mason Partners Aggressive Growth Portfolio Legg Mason Value Equity Portfolio Loomis Sayles Global Markets Portfolio Lord Abbett Bond Debenture Portfolio Lord Abbett Growth and Income Portfolio Lord Abbett Mid Cap Value Portfolio Met/AIM Small Cap Growth Portfolio Met/Franklin Mutual Shares Portfolio MFS (Reg. TM) Emerging Markets Equity Portfolio MFS (Reg. TM) Research International Portfolio PIMCO Inflation Protected Bond Portfolio PIMCO Total Return Portfolio Rainier Large Cap Equity Portfolio RCM Technology Portfolio T. Rowe Price Mid Cap Growth Portfolio Third Avenue Small Cap Value Portfolio Turner Mid Cap Growth Portfolio Van Kampen Comstock Portfolio METROPOLITAN SERIES FUND, INC. (CLASS B OR, AS NOTED, CLASS E): BlackRock Money Market Portfolio Davis Venture Value Portfolio (Class E) Harris Oakmark Focused Value Portfolio Jennison Growth Portfolio MetLife Stock Index Portfolio Western Asset Management U.S. Government Portfolio 1 MET INVESTORS SERIES TRUST - METLIFE ASSET ALLOCATION PROGRAM (CLASS B): MetLife Defensive Strategy Portfolio MetLife Moderate Strategy Portfolio MetLife Balanced Strategy Portfolio MetLife Growth Strategy Portfolio MetLife Aggressive Strategy Portfolio MET INVESTORS SERIES TRUST - AMERICAN FUNDS ASSET ALLOCATION PORTFOLIOS (CLASS C): American Funds Moderate Allocation Portfolio American Funds Balanced Allocation Portfolio American Funds Growth Allocation Portfolio MET INVESTORS SERIES TRUST - FRANKLIN TEMPLETON ASSET ALLOCATION PORTFOLIO (CLASS B): Met/Franklin Templeton Founding Strategy Portfolio Please read this prospectus before investing and keep it on file for future reference. It contains important information about the MetLife Investors USA Variable Annuity Contract. To learn more about the MetLife Investors USA Variable Annuity Contract, you can obtain a copy of the Statement of Additional Information (SAI) dated April 28, 2008. The SAI has been filed with the Securities and Exchange Commission (SEC) and is legally a part of the prospectus. The SEC maintains a Web site (http://www.sec.gov) that contains the SAI, material incorporated by reference, and other information regarding companies that file electronically with the SEC. The Table of Contents of the SAI is on Page 80 of this prospectus. For a free copy of the SAI, call us at (800) 343-8496, visit our website at WWW.METLIFEINVESTORS.COM, or write to us at: 5 Park Plaza, Suite 1900, Irvine, CA 92614. The contracts: o are not bank deposits o are not FDIC insured o are not insured by any federal government agency o are not guaranteed by any bank or credit union o may be subject to loss of principal THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. April 28, 2008 2 TABLE OF CONTENTS PAGE PAGE INDEX OF SPECIAL TERMS ................. 5 HIGHLIGHTS ............................. 7 FEE TABLES AND EXAMPLES ................ 9 1. THE ANNUITY CONTRACT ................ 18 Market Timing ..................... 18 2. PURCHASE ............................ 19 Purchase Payments ................. 19 Termination for Low Account Value . 19 Allocation of Purchase Payments ... 19 Investment Allocation Restrictions for Certain Riders .......................... 20 Free Look ......................... 22 Accumulation Units ................ 22 Account Value ..................... 23 Replacement of Contracts .......... 23 3. INVESTMENT OPTIONS .................. 23 Transfers ......................... 25 Dollar Cost Averaging Programs .... 28 Three Month Market Entry Program .. 30 Automatic Rebalancing Program ..... 30 Description of the MetLife Asset Allocation Program ......................... 30 Voting Rights ..................... 31 Substitution of Investment Options 31 4. EXPENSES ............................ 31 Product Charges ................... 31 Account Fee ....................... 32 Guaranteed Minimum Income Benefit - Rider Charge .......... 32 Lifetime Withdrawal Guarantee and Guaranteed Withdrawal Benefit - Rider 33 Charge Guaranteed Minimum Accumulation Benefit - Rider Charge .......... 34 Withdrawal Charge ................. 34 Reduction or Elimination of the Withdrawal Charge .......................... 35 Premium and Other Taxes ........... 36 Transfer Fee ...................... 36 Income Taxes ...................... 36 Investment Portfolio Expenses ..... 36 5. ANNUITY PAYMENTS (THE INCOME PHASE) ................ 36 Annuity Date ...................... 36 Annuity Payments .................. 37 Annuity Options ................... 37 6. ACCESS TO YOUR MONEY ................ 39 Systematic Withdrawal Program ..... 40
Suspension of Payments or 40 Transfers 7. LIVING BENEFITS ..................... 41 Overview of Living Benefit Riders . 41 Guaranteed Income Benefits ........ 41 Description of GMIB Plus II ....... 43 Description of GMIB Plus I ........ 46 Description of GMIB II ............ 47 Description of GMIB I ............. 48 Guaranteed Withdrawal Benefits .... 48 Description of the Lifetime Withdrawal Guarantee II .............................. 50 Description of the Lifetime Withdrawal Guarantee I ............................... 54 Description of the Enhanced Guaranteed Withdrawal Benefit .............. 56 Description of the Guaranteed Withdrawal Benefit I ............................... 59 Guaranteed Minimum Accumulation 59 Benefit 8. PERFORMANCE ......................... 64 9. DEATH BENEFIT ....................... 64 Upon Your Death ................... 64 Standard Death Benefit - Principal 65 Protection Optional Death Benefit - Annual 65 Step-Up Optional Death Benefit - Enhanced 65 Death Benefit Optional Death Benefit - 67 Compounded-Plus Additional Death Benefit - Earnings Preservation Benefit ......................... 68 General Death Benefit Provisions .. 69 Spousal Continuation .............. 69 Death of the Annuitant ............ 70 Controlled Payout ................. 70 10. FEDERAL INCOME TAX STATUS .......... 70 Taxation of Non-Qualified 70 Contracts Taxation of Qualified Contracts ... 72 Tax Benefits Related to the Assets of the Separate Account ......................... 75 Possible Tax Law Changes .......... 75 11. OTHER INFORMATION .................. 75 MetLife Investors USA ............. 75 The Separate Account .............. 76 Distributor ....................... 76 Selling Firms ..................... 76 Requests and Elections ............ 78 Ownership ......................... 79 Legal Proceedings ................. 79 Financial Statements .............. 80
3 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION ................. 80 APPENDIX A ............................. A-1 Condensed Financial Information ... A-1 APPENDIX B ............................. B-1 Participating Investment B-1 Portfolios APPENDIX C ............................. C-1 EDCA Examples with Multiple C-1 Purchase Payments APPENDIX D ............................. D-1 Guaranteed Minimum Income Benefit D-1 Examples APPENDIX E ............................. E-1 Guaranteed Withdrawal Benefit E-1 Examples APPENDIX F ............................. F-1 Enhanced Death Benefit Examples ... F-1
4 INDEX OF SPECIAL TERMS Because of the complex nature of the contract, we have used certain words or terms in this prospectus which may need an explanation. We have identified the following as some of these words or terms. The page that is indicated here is where we believe you will find the best explanation for the word or term. These words and terms are in italics on the indicated page. PAGE Account Value..............................................................23 Accumulation Phase.........................................................18 Accumulation Unit..........................................................22 Annual Benefit Payment.......................................50 and 56 Annuitant..................................................................79 Annuity Date...............................................................36 Annuity Options............................................................37 Annuity Payments...........................................................36 Annuity Units..............................................................37 Beneficiary................................................................79 Benefit Base...............................................................56 Business Day...............................................................19 Death Benefit Base.........................................................65 Fixed Account..............................................................18 Guaranteed Accumulation Amount.............................................60 Guaranteed Withdrawal Amount...............................................57 GWB Withdrawal Rate........................................................56 Income Base................................................................43 Income Phase...............................................................18 Investment Portfolios......................................................23 Joint Owners...............................................................79 Owner......................................................................79 Purchase Payment...........................................................19 Remaining Guaranteed Withdrawal Amount.....................................50 Separate Account...........................................................76 Total Guaranteed Withdrawal Amount.........................................50 5 This page intentionally left blank. 6 HIGHLIGHTS The variable annuity contract that we are offering is a contract between you, the owner, and us, the insurance company, where you agree to make at least one purchase payment to us and we agree to make a series of annuity payments at a later date. The contract has a maximum issue age and you should consult with your registered representative. The contract provides a means for investing on a tax-deferred basis in our fixed account and the investment portfolios. The contract is intended for retirement savings or other long-term investment purposes. When you purchase the contract, you can choose an optional death benefit and fixed and variable income options. You can also select a guaranteed minimum income benefit ("GMIB"), a guaranteed withdrawal benefit ("GWB"), or the guaranteed minimum accumulation benefit ("GMAB"). The contract, like all deferred annuity contracts, has two phases: the accumulation phase and the income phase. During the accumulation phase, earnings accumulate on a tax-deferred basis and are taxed as income when you make a withdrawal. If you make a withdrawal during the accumulation phase, we may assess a withdrawal charge of up to 7%. The income phase occurs when you or a designated payee begin receiving regular annuity payments from your contract. You and the annuitant (the person on whose life we base annuity payments) do not have to be the same, unless you purchase a tax qualified contract or elect a GMIB (see "Living Benefits - Guaranteed Income Benefits"). You can have annuity payments made on a variable basis, a fixed basis, or a combination of both. If you choose variable annuity payments, the amount of the variable annuity payments will depend upon the investment performance of the investment portfolio(s) you select for the income phase. If you choose fixed annuity payments, the amount of each payment will not change during the income phase. TAX DEFERRAL AND QUALIFIED PLANS. The contracts are offered for individuals and some tax qualified and non-tax qualified retirement plans. For any tax qualified account (e.g., an IRA), the tax deferred accrual feature is provided by the tax qualified retirement plan. Therefore, there should be reasons other than tax deferral for acquiring the contract within a qualified plan. (See "Federal Income Tax Status.") STATE VARIATIONS. Contracts issued in your state may provide different features and benefits from, and impose different costs than, those described in this prospectus because of state law variations. These differences include, among other things, free look rights, age issuance limitations, transfer rights and limitations, the right to reject purchase payments, the right to assess transfer fees, and general availability of certain riders. However, please note that the maximum fees and charges for all features and benefits are set forth in the fee table in this prospectus. If you would like to review a copy of the contract and any endorsements, contact our Annuity Service Center. FREE LOOK. You may cancel the contract within 10 days after receiving it (or whatever period is required in your state). If you mail your cancellation request, the request must be postmarked by the appropriate day; if you deliver your cancellation request by hand, it must be received by us by the appropriate day. Unless otherwise required by state law, you will receive whatever your contract is worth on the day that we receive your cancellation request and we will not deduct a withdrawal charge. The amount you receive may be more or less than your payment depending upon the performance of the investment portfolios. You bear the risk of any decline in account value. We do not refund any charges or deductions assessed during the free look period. We will return your payment if required by law. TAX PENALTY. The earnings in your contract are not taxed until you take money out of your contract. If you take money out of a non-qualified contract during the accumulation phase, for tax purposes any earnings are deemed to come out first. If you are younger than 59 1/2 when you take money out, you may be charged a 10% federal tax penalty on those earnings. Payments during the income phase are considered partly a return of your original investment until your investment is returned. NON-NATURAL PERSONS AS OWNERS. If the owner of a non-qualified annuity contract is not a natural person (e.g., a corporation, partnership or certain trusts), gains under the contract are generally not eligible for tax deferral. The owner of this contract can be a natural person, a trust established for the exclusive benefit of a natural person, a charitable remainder trust or other trust arrangement (if approved by us). The owner of this contract can also be a beneficiary of a deceased person's contract that is an Individual Retirement Account or non-qualified deferred 7 annuity. A contract generally may have two owners (both of whom must be individuals). The contract is not available to corporations or other business organizations, except to the extent an employer is the purchaser of a SEP or SIMPLE IRA contract. Subject to state approval, certain retirement plans qualified under the Internal Revenue Code may purchase the contract. INQUIRIES. If you need more information, please contact our Annuity Service Center at: MetLife Investors Distribution Company P.O. Box 10366 Des Moines, Iowa 50306-0366 (800) 343-8496 ELECTRONIC DELIVERY. As an owner you may elect to receive electronic delivery of current prospectuses related to this contract, prospectuses and annual and semi-annual reports for the investment portfolios and other contract related documents. Contact us at WWW.METLIFEINVESTORS.COM for more information and to enroll. 8 FEE TABLES AND EXAMPLES THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY WHEN BUYING, OWNING, AND SURRENDERING THE CONTRACT. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY AT THE TIME THAT YOU BUY THE CONTRACT, SURRENDER THE CONTRACT, OR TRANSFER ACCOUNT VALUE BETWEEN INVESTMENT OPTIONS. STATE PREMIUM TAXES OF 0% TO 3.5% MAY ALSO BE DEDUCTED. -------------------------------------------------------------------------------- OWNER TRANSACTION EXPENSES TABLE WITHDRAWAL CHARGE (Note 1) 7% (as a percentage of purchase payments) TRANSFER FEE (Note 2) $0 (First 12 per year) $25 (Thereafter)
-------------------------------------------------------------------------------- Note 1. If an amount withdrawn is determined to include the withdrawal of prior purchase payments, a withdrawal charge may be assessed. Withdrawal charges are calculated in accordance with the following. (See "Expenses - Withdrawal Charge.")
Number of Complete Years from Withdrawal Charge Receipt of Purchase Payment (% of Purchase Payment) ------------------------------ ------------------------ 0 7 1 6 2 6 3 5 4 4 5 3 6 2 7 and thereafter 0
Note 2. There is no charge for the first 12 transfers in a contract year; thereafter the fee is $25 per transfer. MetLife Investors USA is currently waiving the transfer fee, but reserves the right to charge the fee in the future. 9 THE NEXT TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT, NOT INCLUDING INVESTMENT PORTFOLIO FEES AND EXPENSES. -------------------------------------------------------------------------------- ACCOUNT FEE (Note 1) $30
SEPARATE ACCOUNT ANNUAL EXPENSES* (referred to as Separate Account Product Charges) (as a percentage of average account value in the Separate Account) Mortality and Expense Charge 1.05% Administration Charge 0.25% ---- Total Separate Account Annual Expenses 1.30% Death Benefit Rider Charges (Optional)** (as a percentage of average account value in the Separate Account) Optional Death Benefit - Annual Step-Up 0.20% Optional Death Benefit - Compounded-Plus 0.35% Additional Death Benefit - Earnings 0.25% Preservation Benefit Total Separate Account Annual Expenses Including Highest Charges for Optional 1.90% Death Benefits
-------------------------------------------------------------------------------- Note 1. An Account Fee of $30 is charged on the last day of each contract year if account value is less than $50,000. Different policies apply during the income phase of the contract. (See "Expenses.") *Certain charges and expenses for contracts issued before May 1, 2003, are different. Certain charges and expenses may not apply during the income phase of the contract. (See "Expenses.") **See below for an additional optional death benefit rider, the Enhanced Death Benefit, for which the charge is assessed on the Death Benefit Base and deducted annually from the account value. 10 ADDITIONAL OPTIONAL RIDER CHARGES* GUARANTEED MINIMUM INCOME BENEFIT RIDER CHARGES GMIB Plus II and I Prior to Optional 0.80% of the Income Base (Note 1) Step-Up/Reset GMIB Plus II and I Upon Optional 1.50% of the Income Base (Note 1) Step-Up/Reset (maximum) GMIB II and GMIB I 0.50% of the Income Base (Note 1) LIFETIME WITHDRAWAL GUARANTEE RIDER CHARGES Lifetime Withdrawal Guarantee II 0.65% of the Total Guaranteed Withdrawal Amount (Single Life Version) Prior to Automatic Annual (Note 2) Step-Up Lifetime Withdrawal Guarantee II 1.25% of the Total Guaranteed Withdrawal Amount (Single Life Version) Upon Automatic Annual Step-Up (Note 2) (maximum) Lifetime Withdrawal Guarantee II 0.85% of the Total Guaranteed Withdrawal Amount (Joint Life Version) Prior to Automatic Annual (Note 2) Step-Up Lifetime Withdrawal Guarantee II 1.50% of the Total Guaranteed Withdrawal Amount (Joint Life Version) Upon Automatic Annual Step-Up (Note 2) (maximum) Lifetime Withdrawal Guarantee I 0.50% of the Total Guaranteed Withdrawal Amount (Single Life Version) Prior to Automatic Annual (Note 2) Step-Up Lifetime Withdrawal Guarantee I 0.95% of the Total Guaranteed Withdrawal Amount (Single Life Version) Upon Automatic Annual Step-Up (Note 2) (maximum) Lifetime Withdrawal Guarantee I 0.70% of the Total Guaranteed Withdrawal Amount (Joint Life Version) Prior to Automatic Annual (Note 2) Step-Up Lifetime Withdrawal Guarantee I 1.40% of the Total Guaranteed Withdrawal Amount (Joint Life Version) Upon Automatic Annual Step-Up (Note 2) (maximum)
*Certain rider charges for contracts issued before July 16, 2007, are different. Certain charges and expenses may not apply during the income phase of the contract. (See "Expenses.") Note 1. On the issue date, the Income Base is equal to your initial purchase payment. The Income Base is adjusted for subsequent purchase payments and withdrawals. See "Living Benefits - Guaranteed Income Benefits" for a definition of the term Income Base. Note 2. The Total Guaranteed Withdrawal Amount is initially set at an amount equal to your initial purchase payment. The Total Guaranteed Withdrawal Amount may increase with additional purchase payments. See "Living Benefits - Guaranteed Withdrawal Benefits" for a definition of the term Total Guaranteed Withdrawal Amount. 11 GUARANTEED WITHDRAWAL BENEFIT RIDER CHARGES Enhanced Guaranteed Withdrawal 0.55% of the Guaranteed Withdrawal Amount Benefit Rider Charge Prior to Optional Reset (Note 3) Enhanced Guaranteed Withdrawal 1.00% of the Guaranteed Withdrawal Amount Benefit Rider Charge Upon Optional Reset (maximum) (Note 3) Guaranteed Withdrawal Benefit Rider 0.50% of the Guaranteed Withdrawal Amount Charge Prior to Optional Reset (Note 3) Guaranteed Withdrawal Benefit Rider 0.95% of the Guaranteed Withdrawal Amount Charge Upon Optional Reset (maximum) (Note 3) GUARANTEED MINIMUM ACCUMULATION BENEFIT 0.75% of the Guaranteed Accumulation Amount RIDER CHARGE (Note 4) ENHANCED DEATH BENEFIT RIDER CHARGES Enhanced Death Benefit Rider Charge 0.65% of the Death Benefit Base (Note 5) Prior to Optional Reset (issue age 69 or younger) Enhanced Death Benefit Rider Charge 0.85% of the Death Benefit Base (Note 5) Prior to Optional Reset (issue age 70-75) Enhanced Death Benefit Rider Charge 1.50% of the Death Benefit Base (Note 5) Upon Optional Reset (maximum)
Note 3. The Guaranteed Withdrawal Amount is initially set at an amount equal to your initial purchase payment plus the GWB Bonus Amount. The Guaranteed Withdrawal Amount may increase with additional purchase payments. See "Living Benefits - Guaranteed Withdrawal Benefits" for definitions of the terms Guaranteed Withdrawal Amount and GWB Bonus Amount. Note 4. The Guaranteed Accumulation Amount is initially set at an amount equal to a percentage of your initial purchase payment. The Guaranteed Accumulation Amount is adjusted for additional purchase payments made during the first 120 days of the contract and for withdrawals. See "Living Benefits - Guaranteed Minimum Accumulation Benefit" for a definition of the term Guaranteed Accumulation Amount. Note 5. The Death Benefit Base is initially set at an amount equal to your initial purchase payment. The Death Benefit Base is adjusted for subsequent purchase payments and withdrawals. See "Death Benefit - Enhanced Death Benefit" for a definition of the term Death Benefit Base. If you elect both the Enhanced Death Benefit rider and the GMIB Plus II rider, the charge for the Enhanced Death Benefit will be reduced to 0.60% of the Death Benefit Base if you are age 69 or younger at issue and 0.80% of the Death Benefit Base if you are age 70-75 at issue. 12 -------------------------------------------------------------------------------- THE NEXT TABLE SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE INVESTMENT PORTFOLIOS THAT YOU MAY PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. MORE DETAIL CONCERNING EACH INVESTMENT PORTFOLIO'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUSES FOR THE INVESTMENT PORTFOLIOS AND IN THE FOLLOWING TABLES. Minimum Maximum ---- ---- Total Annual Portfolio Expenses 0.54% 1.52% (expenses that are deducted from investment portfolio assets, including management fees, 12b-1/service fees, and other expenses)
-------------------------------------------------------------------------------- FOR INFORMATION CONCERNING COMPENSATION PAID FOR THE SALE OF THE CONTRACTS, SEE "OTHER INFORMATION - DISTRIBUTOR." 13 INVESTMENT PORTFOLIO EXPENSES (as a percentage of the average daily net assets of an investment portfolio) The following table is a summary. For more complete information on investment portfolio fees and expenses, please refer to the prospectus for each investment portfolio.
NET ACQUIRED TOTAL CONTRACTUAL TOTAL FUND ANNUAL EXPENSE ANNUAL MANAGEMENT 12B-1/SERVICE OTHER FEES AND PORTFOLIO SUBSIDY PORTFOLIO FEES FEES EXPENSES EXPENSES EXPENSES OR DEFERRAL EXPENSES ------------ --------------- ---------- ---------- ----------- ------------- ---------- MET INVESTORS SERIES TRUST American Funds Bond Portfolio(1)(2) 0.00% 0.55% 0.44% 0.41% 1.40% 0.34% 1.06% American Funds Growth Portfolio(1)(2) 0.00% 0.55% 0.13% 0.33% 1.01% 0.03% 0.98% American Funds International 0.00% 0.55% 0.36% 0.52% 1.43% 0.26% 1.17% Portfolio(1)(2) BlackRock High Yield Portfolio(3) 0.60% 0.25% 0.13% 0.00% 0.98% 0.00% 0.98% Clarion Global Real Estate Portfolio 0.61% 0.25% 0.04% 0.00% 0.90% 0.00% 0.90% Harris Oakmark International Portfolio 0.77% 0.25% 0.08% 0.00% 1.10% 0.00% 1.10% Lazard Mid Cap Portfolio 0.69% 0.25% 0.06% 0.00% 1.00% 0.00% 1.00% Legg Mason Partners Aggressive Growth 0.62% 0.25% 0.05% 0.00% 0.92% 0.00% 0.92% Portfolio Legg Mason Value Equity Portfolio 0.63% 0.25% 0.04% 0.00% 0.92% 0.00% 0.92% Loomis Sayles Global Markets Portfolio 0.68% 0.25% 0.09% 0.00% 1.02% 0.00% 1.02% Lord Abbett Bond Debenture Portfolio 0.49% 0.25% 0.04% 0.00% 0.78% 0.00% 0.78% Lord Abbett Growth and Income Portfolio 0.49% 0.25% 0.03% 0.00% 0.77% 0.00% 0.77% Lord Abbett Mid Cap Value Portfolio 0.67% 0.25% 0.09% 0.00% 1.01% 0.00% 1.01% Met/AIM Small Cap Growth Portfolio 0.86% 0.25% 0.06% 0.00% 1.17% 0.00% 1.17% Met/Franklin Mutual Shares Portfolio(1) 0.80% 0.25% 0.29% 0.00% 1.34% 0.19% 1.15% MFS (Reg. TM) Emerging Markets Equity 1.00% 0.25% 0.27% 0.00% 1.52% 0.00% 1.52% Portfolio MFS (Reg. TM) Research International 0.70% 0.25% 0.09% 0.00% 1.04% 0.00% 1.04% Portfolio PIMCO Inflation Protected Bond 0.50% 0.25% 0.05% 0.00% 0.80% 0.00% 0.80% Portfolio PIMCO Total Return Portfolio(4) 0.48% 0.25% 0.04% 0.00% 0.77% 0.00% 0.77% Rainier Large Cap Equity Portfolio 0.65% 0.25% 0.12% 0.00% 1.02% 0.00% 1.02% RCM Technology Portfolio 0.88% 0.25% 0.14% 0.00% 1.27% 0.00% 1.27% T. Rowe Price Mid Cap Growth Portfolio 0.75% 0.25% 0.05% 0.00% 1.05% 0.00% 1.05% Third Avenue Small Cap Value Portfolio 0.73% 0.25% 0.03% 0.00% 1.01% 0.00% 1.01% Turner Mid Cap Growth Portfolio 0.77% 0.25% 0.06% 0.00% 1.08% 0.00% 1.08% Van Kampen Comstock Portfolio 0.58% 0.25% 0.03% 0.00% 0.86% 0.00% 0.86% METROPOLITAN SERIES FUND, INC. BlackRock Money Market Portfolio 0.33% 0.25% 0.07% 0.00% 0.65% 0.01% 0.64% Davis Venture Value Portfolio 0.69% 0.15% 0.04% 0.00% 0.88% 0.00% 0.88% Harris Oakmark Focused Value Portfolio 0.72% 0.25% 0.04% 0.00% 1.01% 0.00% 1.01% Jennison Growth Portfolio 0.63% 0.25% 0.04% 0.00% 0.92% 0.00% 0.92% MetLife Stock Index Portfolio 0.25% 0.25% 0.04% 0.00% 0.54% 0.01% 0.53% Western Asset Management U.S. 0.49% 0.25% 0.05% 0.00% 0.79% 0.00% 0.79% Government Portfolio
14
NET TOTAL ANNUAL PORTFOLIO EXPENSES ACQUIRED TOTAL CONTRACTUAL INCLUDING FUND ANNUAL EXPENSE EXPENSES OF MANAGEMENT 12B-1/SERVICE OTHER FEES AND PORTFOLIO SUBSIDY UNDERLYING FEES FEES EXPENSES EXPENSES EXPENSES OR DEFERRAL PORTFOLIOS ------------ --------------- ---------- ---------- ----------- ------------- ------------ MET INVESTORS SERIES TRUST - METLIFE ASSET ALLOCATION PROGRAM MetLife Defensive Strategy Portfolio(5) 0.09% 0.25% 0.02% 0.62% 0.98% 0.01% 0.97% MetLife Moderate Strategy Portfolio(5) 0.07% 0.25% 0.00% 0.65% 0.97% 0.00% 0.97% MetLife Balanced Strategy Portfolio(5) 0.06% 0.25% 0.00% 0.69% 1.00% 0.00% 1.00% MetLife Growth Strategy Portfolio(5) 0.06% 0.25% 0.00% 0.72% 1.03% 0.00% 1.03% MetLife Aggressive Strategy 0.09% 0.25% 0.01% 0.72% 1.07% 0.00% 1.07% Portfolio(5) MET INVESTORS SERIES TRUST - AMERICAN FUNDS ASSET ALLOCATION PORTFOLIOS American Funds Moderate Allocation 0.10% 0.55% 0.26% 0.41% 1.32% 0.26% 1.06% Portfolio(1)(6) American Funds Balanced Allocation 0.10% 0.55% 0.15% 0.39% 1.19% 0.15% 1.04% Portfolio(1)(6) American Funds Growth Allocation 0.10% 0.55% 0.19% 0.36% 1.20% 0.19% 1.01% Portfolio(1)(6) MET INVESTORS SERIES TRUST - FRANKLIN TEMPLETON ASSET ALLOCATION PORTFOLIO Met/Franklin Templeton Founding 0.05% 0.25% 0.15% 0.87% 1.32% 0.15% 1.17% Strategy Portfolio(1)(7)
The Net Total Annual Portfolio Expenses have been restated to reflect contractual arrangements in effect as of April 28, 2008, under which investment advisers or managers of investment portfolios have agreed to waive and/or pay expenses of the portfolios. Each of these arrangements is in effect until at least April 30, 2009 (excluding optional extensions). Net Total Annual Portfolio Expenses have not been restated to reflect expense reductions that certain investment portfolios achieved as a result of directed brokerage arrangements. The investment portfolios provided the information on their expenses, and we have not independently verified the information. Unless otherwise indicated, the information provided is for the year ended December 31, 2007. (1) The fees and expenses of the Portfolio are estimated for the year ending December 31, 2008. (2) The Portfolio is a "feeder fund" that invests all of its assets in an underlying "master fund." As an investor in an underlying master fund, the Portfolio will bear its pro rata portion of the operating expenses of the underlying master fund, including the management fee. (3) This is a new share class for this Portfolio. Operating expenses are estimated based on the expenses of the Class A shares of the Portfolio. (4) The Management Fee has been restated to reflect an amended management fee agreement, as if the agreement had been in effect during the preceding fiscal year. (5) The Portfolio is a "fund of funds" that invests substantially all of its assets in other portfolios of the Met Investors Series Trust and the Metropolitan Series Fund, Inc. Because the Portfolio invests in other underlying portfolios, the Portfolio will bear its pro rata portion of the operating expenses of the underlying portfolios in which it invests, including the management fee. (6) The Portfolio is a "fund of funds" that invests substantially all of its assets in portfolios of the American Funds Insurance Series (Reg. TM). Because the Portfolio invests in other underlying portfolios, the Portfolio will bear its pro rata portion of the operating expenses of the underlying portfolios in which it invests, including the management fee. The estimated expenses of the underlying portfolios are based upon the weighted average of the total operating expenses of the underlying portfolios before expense waivers allocated to the portfolios at December 31, 2007. (7) The Portfolio is a "fund of funds" that invests equally in three other portfolios of the Met Investors Series Trust: the Met/Franklin Income Portfolio, the Met/Franklin Mutual Shares Portfolio and the Met/Templeton Growth Portfolio. Because the Portfolio invests in other underlying portfolios, the Portfolio will bear its pro rata portion of the operating expenses of the underlying portfolios in which it invests, including the management fee. The expenses of the underlying portfolios are based upon the weighted average of the estimated total operating expenses of the underlying portfolios after expense waivers allocated to the underlying portfolios for the year ending December 31, 2008. 15 EXAMPLES THESE EXAMPLES ARE INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THE CONTRACT WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITY CONTRACTS. THESE COSTS INCLUDE CONTRACT OWNER TRANSACTION EXPENSES, CONTRACT FEES, SEPARATE ACCOUNT ANNUAL EXPENSES, AND INVESTMENT PORTFOLIO FEES AND EXPENSES. THE EXAMPLES ASSUME THAT YOU INVEST $10,000 IN THE CONTRACT FOR THE TIME PERIODS INDICATED. THE EXAMPLES ALSO ASSUME THAT YOUR INVESTMENT HAS A 5% RETURN EACH YEAR AND ASSUME: (A) MAXIMUM AND (B) MINIMUM FEES AND EXPENSES OF ANY OF THE INVESTMENT PORTFOLIOS (BEFORE SUBSIDY AND/OR DEFERRAL). ALTHOUGH YOUR ACTUAL COSTS MAY BE HIGHER OR LOWER, BASED ON THESE ASSUMPTIONS, YOUR COSTS WOULD BE: CHART 1. Chart 1 assumes you select the Enhanced Death Benefit (assuming the maximum 1.50% charge applies in all contract years), the Additional Death Benefit - Earnings Preservation Benefit and the Guaranteed Minimum Income Benefit Plus II rider (assuming the maximum 1.50% charge applies in all contract years), which is the most expensive way to purchase the contract. (1) IF YOU SURRENDER YOUR CONTRACT AT THE END OF THE APPLICABLE TIME PERIOD:
Time Periods 1 year 3 years 5 years 10 years ------------------ ------------ ------------ ------------ (a)$1,326 (a)$2,461 (a)$3,639 (a)$6,973 (b)$1,228 (b)$2,178 (b)$3,187 (b)$6,181
(2) IF YOU DO NOT SURRENDER YOUR CONTRACT OR IF YOU ANNUITIZE AT THE END OF THE APPLICABLE TIME PERIOD:
Time Periods 1 year 3 years 5 years 10 years ------------ ------------ ------------ ------------ (a)$626 (a)$1,921 (a)$3,279 (a)$6,973 (b)$528 (b)$1,638 (b)$2,827 (b)$6,181
CHART 2. Chart 2 assumes you do not select optional death benefit riders, a Guaranteed Minimum Income Benefit rider, a Guaranteed Withdrawal Benefit rider, or the Guaranteed Minimum Accumulation Benefit rider, which is the least expensive way to purchase the contract. (1) IF YOU SURRENDER YOUR CONTRACT AT THE END OF THE APPLICABLE TIME PERIOD:
Time Periods 1 year 3 years 5 years 10 years ------------ ------------ ------------ ------------ (a)$988 (a)$1,422 (a)$1,860 (a)$3,161 (b)$890 (b)$1,128 (b)$1,370 (b)$2,183
(2) IF YOU DO NOT SURRENDER YOUR CONTRACT OR IF YOU ANNUITIZE AT THE END OF THE APPLICABLE TIME PERIOD:
Time Periods 1 year 3 years 5 years 10 years ------------ --------- ------------ ------------ (a)$288 (a)$882 (a)$1,500 (a)$3,161 (b)$190 (b)$588 (b)$1,010 (b)$2,183
The Examples should not be considered a representation of past or future expenses or annual rates of return of any investment portfolio. Actual expenses and annual rates of return may be more or less than those assumed for the purpose of 16 the Examples. Condensed financial information containing the accumulation unit value history appears in Appendix A of this prospectus as well as in the SAI. 17 1. THE ANNUITY CONTRACT This prospectus describes the Variable Annuity Contract offered by us. The variable annuity contract is a contract between you as the owner, and us, the insurance company, where we promise to pay an income to you, in the form of annuity payments, beginning on a designated date that you select. Until you decide to begin receiving annuity payments, your annuity is in the ACCUMULATION PHASE. Once you begin receiving annuity payments, your contract switches to the INCOME PHASE. The contract benefits from tax deferral. Tax deferral means that you are not taxed on earnings or appreciation on the assets in your contract until you take money out of your contract. For any tax qualified account (e.g., an IRA, 401 plan or 403(b) plan), the tax deferred accrual feature is provided by the tax qualified retirement plan. Therefore, there should be reasons other than tax deferral for acquiring the contract within a qualified plan. (See "Federal Income Tax Status.") The contract is called a variable annuity because you can choose among the investment portfolios and, depending upon market conditions, you can make or lose money in any of these portfolios. If you select the variable annuity portion of the contract, the amount of money you are able to accumulate in your contract during the accumulation phase depends upon the investment performance of the investment portfolio(s) you select. The amount of the annuity payments you receive during the income phase from the variable annuity portion of the contract also depends, in part, upon the investment performance of the investment portfolio(s) you select for the income phase. We do not guarantee the investment performance of the variable annuity portion. You bear the full investment risk for all amounts allocated to the variable annuity portion. However, there are certain optional features that provide guarantees that can reduce your investment risk (see "Living Benefits"). In most states, the contract also contains a FIXED ACCOUNT (contact your registered representative regarding your state). The fixed account is not offered by this prospectus. The fixed account offers an interest rate that is guaranteed by us. The minimum interest rate depends on the year your contract is issued but will not be less than 1%. Your registered representative can tell you the current and minimum interest rates that apply. If you select the fixed account, your money will be placed with our other general account assets, and the amount of money you are able to accumulate in your contract during the accumulation phase depends upon the total interest credited to your contract. The fixed account is part of our general account. Our general account consists of all assets owned by us other than those in the Separate Account and our other separate accounts. We have sole discretion over the investment of assets in the general account. If you select a fixed annuity payment option during the income phase, payments are made from our general account assets. The amount of the annuity payments you receive during the income phase from a fixed annuity payment option of the contract will remain level for the entire income phase, provided that the payment may increase in the event you make a transfer from a variable annuity payment option to the fixed annuity payment. Please see the terms of your actual contract for more detailed information. As owner of the contract, you exercise all interests and rights under the contract. You can change the owner at any time, subject to our underwriting rules (a change of ownership may terminate certain optional riders). The contract may be owned generally by joint owners (limited to two natural persons). We provide more information on this under "Other Information - Ownership." Because the contract proceeds must be distributed within the time periods required by the federal Internal Revenue Code, the right of a spouse to continue the contract, and all contract provisions relating to spousal continuation (see "Death Benefit - Spousal Continuation"), are available only to a person who is defined as a "spouse" under the federal Defense of Marriage Act, or any other applicable federal law. Accordingly, a purchaser who has or is contemplating a civil union should note that a civil union partner would not be able to receive continued payments after the death of the contract owner under the Joint Life version of the Lifetime Withdrawal Guarantee (see "Living Benefits - Guaranteed Withdrawal Benefits"). MARKET TIMING We have policies and procedures that attempt to detect transfer activity that may adversely affect other owners or investment portfolio shareholders in situations where there is potential for pricing inefficiencies or that involve certain other types of disruptive trading activity (I.E., market timing). We employ various means to try to detect such transfer activity, such as periodically examining the frequency and size of transfers into and out of particular 18 investment portfolios made by owners within given periods of time and/or investigating transfer activity identified by the investment portfolios on a case-by-case basis. We may revise these policies and procedures in our sole discretion at any time without prior notice. Our market timing policies and procedures are discussed in more detail in "Investment Options - Transfers - Market Timing." 2. PURCHASE The maximum issue age for the contract and certain of its riders may be reduced in connection with the offer of the contract through certain broker dealers ("selling firms"). In addition, certain riders may not be available through certain selling firms. You should discuss this with your registered representative. PURCHASE PAYMENTS A PURCHASE PAYMENT is the money you give us to invest in the contract. The initial purchase payment is due on the date the contract is issued. Subject to the minimum and maximum payment requirements (see below), you may make additional purchase payments. o The minimum initial purchase payment we will accept is $5,000 when the contract is purchased as a non-qualified contract. o If you are purchasing the contract as part of an IRA (Individual Retirement Annuity), 401(k) or other qualified plan, the minimum we will accept is $2,000. o If you want to make an initial purchase payment of $1 million or more, or an additional purchase payment that would cause your total purchase payments to exceed $1 million, you will need our prior approval. o You can make additional purchase payments of $500 or more to either type of contract (qualified and non-qualified) unless you have elected an electronic funds transfer program approved by us, in which case the minimum additional purchase payment is $100 per month. o We will accept a different amount if required by federal tax law. o We reserve the right to refuse purchase payments made via a personal check in excess of $100,000. Purchase payments over $100,000 may be accepted in other forms, including, but not limited to, EFT/wire transfers, certified checks, corporate checks, and checks written on financial institutions. The form in which we receive a purchase payment may determine how soon subsequent disbursement requests may be fulfilled. (See "Access to Your Money.") o We will not accept purchase payments made with cash, money orders, or travelers checks. We reserve the right to reject any application or purchase payment and to limit future purchase payments. TERMINATION FOR LOW ACCOUNT VALUE We may terminate your contract by paying you the account value in one sum if, prior to the annuity date, you do not make purchase payments for two consecutive contract years, the total amount of purchase payments made, less any partial withdrawals, is less than $2,000 or any lower amount required by federal tax laws, and the account value on or after the end of such two year period is less than $2,000. Accordingly, no contract will be terminated due solely to negative investment performance. Federal tax law may impose additional restrictions on our right to cancel your Traditional IRA, Roth IRA, SEP, SIMPLE IRA or other Qualified Contract. ALLOCATION OF PURCHASE PAYMENTS When you purchase a contract, we will allocate your purchase payment to the fixed account and/or any of the investment portfolios you have selected. You may not choose more than 18 investment portfolios (including the fixed account) at the time your initial purchase payment is allocated. Each allocation must be at least $500 and must be in whole numbers. We have reserved the right to restrict payments to the fixed account if any of the following conditions exist: o the credited interest rate on the fixed account is equal to the guaranteed minimum rate; or o your account value in the fixed account equals or exceeds our published maximum for fixed account allocation (currently, there is no limit); or o a transfer was made out of the fixed account within the previous 180 days. Once we receive your purchase payment and the necessary information, we will issue your contract and allocate your first purchase payment within 2 business days. A BUSINESS DAY is each day that the New York Stock Exchange is open for business. A business day closes at the close of normal 19 trading on the New York Stock Exchange, usually 4:00 p.m. Eastern Time. If you do not give us all of the information we need, we will contact you to get it before we make any allocation. If for some reason we are unable to complete this process within 5 business days, we will either send back your money or get your permission to keep it until we get all of the necessary information. (See "Other Information - Requests and Elections.") However, if you allocate purchase payments to a discontinued investment portfolio (see Appendix A), we will request reallocation instructions or if unable to obtain such instructions, we will return your purchase payment to you. If you choose the Guaranteed Minimum Income Benefit Plus II, Lifetime Withdrawal Guarantee II, or Enhanced Death Benefit riders, until the rider terminates, we will require you to allocate your purchase payments and account value as described below under "Investment Allocation Restrictions for Certain Riders." If you choose the GMIB Plus I rider or the Lifetime Withdrawal Guarantee I rider, until the rider terminates, we will require you to allocate your purchase payments and account value solely among the fixed account, the BlackRock Money Market Portfolio, the American Funds Asset Allocation portfolios, the Met/Franklin Templeton Founding Strategy Portfolio, and/or the MetLife Asset Allocation Program portfolios, excluding the MetLife Aggressive Strategy Portfolio (you may participate in the Enhanced Dollar Cost Averaging (EDCA) program, subject to restrictions). If you choose the Guaranteed Minimum Accumulation Benefit rider, until the rider terminates, we will require you to allocate your purchase payments and account value solely to one of the MetLife Asset Allocation Program portfolios, excluding the MetLife Growth Strategy Portfolio and the MetLife Aggressive Strategy Portfolio (you may participate in the EDCA program, subject to restrictions). If you make additional purchase payments, we will allocate them in the same way as your first purchase payment unless you tell us otherwise. However, if you make an additional purchase payment and you have an EDCA or Dollar Cost Averaging (DCA) program in effect, we will allocate your additional payments to the investment portfolios selected under the EDCA or DCA program unless you tell us otherwise. (See "Investment Options - Dollar Cost Averaging Programs.") You may change your allocation instructions at any time by notifying us in writing, by calling us or by Internet. You may not choose more than 18 investment portfolios (including the fixed account) at the time you submit a subsequent purchase payment. If you wish to allocate the payment to more than 18 investment portfolios (including the fixed account), we must have your request to allocate future purchase payments to more than 18 investment portfolios on record before we can apply your subsequent purchase payment to your chosen allocation. If there are joint owners, unless we are instructed to the contrary, we will accept allocation instructions from either joint owner. INVESTMENT ALLOCATION RESTRICTIONS FOR CERTAIN RIDERS ALLOCATION. If you elect the GMIB Plus II, the Lifetime Withdrawal Guarantee II, or the Enhanced Death Benefit, you must comply with certain investment allocation restrictions. SPECIFICALLY, YOU MUST ALLOCATE ACCORDING TO EITHER ------ (A) OR (B) BELOW: (A) You must allocate: o 100% of your purchase payments or account value among the MetLife Defensive Strategy Portfolio, MetLife Moderate Strategy Portfolio, MetLife Balanced Strategy Portfolio, MetLife Growth Strategy Portfolio, American Funds Moderate Allocation Portfolio, American Funds Balanced Allocation Portfolio, American Funds Growth Allocation Portfolio, Met/ Franklin Templeton Founding Strategy Portfolio, BlackRock Money Market Portfolio and/or the fixed account OR (B) You must allocate: o AT LEAST 15% of purchase payments or account value to Platform 1 portfolios and/or to the fixed account; o UP TO 85% of purchase payments or account value to Platform 2 portfolios; o UP TO 15% of purchase payments or account value to Platform 3 portfolios; and o UP TO 15% of purchase payments or account value to Platform 4 portfolios. The investment options in each Platform are: Platform 1 ---------- Fixed Account American Funds Bond Portfolio 20 BlackRock Money Market Portfolio PIMCO Inflation Protected Bond Portfolio PIMCO Total Return Portfolio Western Asset Management U.S. Government Portfolio Platform 2 ---------- American Funds Balanced Allocation Portfolio American Funds Growth Allocation Portfolio American Funds Growth Portfolio American Funds International Portfolio American Funds Moderate Allocation Portfolio BlackRock High Yield Portfolio Davis Venture Value Portfolio Harris Oakmark International Portfolio Jennison Growth Portfolio Legg Mason Partners Aggressive Growth Portfolio Legg Mason Value Equity Portfolio Loomis Sayles Global Markets Portfolio Lord Abbett Bond Debenture Portfolio Lord Abbett Growth and Income Portfolio Met/Franklin Mutual Shares Portfolio Met/Franklin Templeton Founding Strategy Portfolio MetLife Aggressive Strategy Portfolio MetLife Balanced Strategy Portfolio MetLife Defensive Strategy Portfolio MetLife Growth Strategy Portfolio MetLife Moderate Strategy Portfolio Metlife Stock Index Portfolio MFS (Reg. TM) Research International Portfolio Rainier Large Cap Equity Portfolio Van Kampen Comstock Portfolio Platform 3 ---------- Harris Oakmark Focused Value Portfolio Lazard Mid Cap Portfolio Lord Abbett Mid Cap Value Portfolio T. Rowe Price Mid Cap Growth Portfolio Turner Mid Cap Growth Portfolio Platform 4 ---------- Clarion Global Real Estate Portfolio Met/AIM Small Cap Growth Portfolio MFS (Reg. TM) Emerging Markets Equity Portfolio RCM Technology Portfolio Third Avenue Small Cap Value Portfolio YOUR PURCHASE PAYMENTS AND TRANSFER REQUESTS MUST BE ALLOCATED IN ACCORDANCE WITH THE ABOVE LIMITATIONS. WE WILL REJECT ANY PURCHASE PAYMENTS OR TRANSFER REQUESTS THAT DO NOT COMPLY WITH THE ABOVE LIMITATIONS. Certain selling firms do not offer option (B) at the time your initial purchase payment is allocated. Please contact our Annuity Service Center if you wish to change your allocation selection to option (B). We determine whether an investment option is classified as Platform 1, Platform 2, Platform 3 or Platform 4. We may determine or change the classification of an investment option in the event that an investment option is added, deleted, substituted, merged or otherwise reorganized. In that case, any change in classification will only take effect as to your contract in the event you make a new purchase payment or request a transfer among investment options. We will provide you with prior written notice of any changes in classification of investment options. REBALANCING. If you choose to allocate according to (B) above, we will rebalance your account value on a quarterly basis based on your most recent allocation of purchase payments that complies with the allocation limitations described above. We will also rebalance your account value when we receive a subsequent purchase payment that is accompanied by new allocation instructions (in addition to the quarterly rebalancing). We will first rebalance your account value on the date that is three months from the rider issue date; provided however, if a quarterly rebalancing date occurs on the 29th, 30th or 31st of a month, we will instead rebalance on the 1st day of the following month. We will subsequently rebalance your account value on each quarter thereafter on the same day. In addition, if a quarterly rebalancing date is not a business day the reallocation will occur on the next business day. Withdrawals from the contract will not result in rebalancing on the date of withdrawal. The rebalancing requirement described above does not apply if you choose to allocate according to (A) above. EDCA. If you choose to allocate according to (B) above and you choose to allocate a purchase payment to the EDCA account, that entire purchase payment must be allocated only to the EDCA account. Any transfer from an EDCA account must be allocated in accordance with the limitations described under (B) above. In addition, if you made previous purchase payments before allocating a purchase payment to the EDCA account, all transfers from an EDCA account must be allocated to the same investment options as your most recent allocations for purchase payments. CHANGING PURCHASE PAYMENT ALLOCATION INSTRUCTIONS. You may change your purchase payment allocation instructions under (B) above at any time by providing notice to us, at our Annuity Service Center, or by 21 any other method acceptable to us, provided that such instructions comply with the allocation limits described above. If you provide new allocation instructions for purchase payments and if these instructions conform to the allocation limits described under (B) above, then we will rebalance in accordance with the revised allocation instructions. Any future purchase payment, EDCA account transfer and quarterly rebalancing allocations will be automatically updated in accordance with these new instructions. TRANSFERS. Please note that any transfer request must result in an account value that meets the allocation limits described above. Any transfer request will not cause your allocation instructions to change unless you provide us with a separate instruction at the time of transfer. FREE LOOK If you change your mind about owning this contract, you can cancel it within 10 days after receiving it (or the period required in your state). We ask that you submit your request to cancel in writing, signed by you, to our Annuity Service Center. When you cancel the contract within this "free look" period, we will not assess a withdrawal charge. Unless otherwise required by state law, you will receive back whatever your contract is worth on the day we receive your request. This may be more or less than your payment depending upon the performance of the portfolios you allocated your purchase payment to during the free look period. This means that you bear the risk of any decline in the value of your contract during the free look period. We do not refund any charges or deductions assessed during the free look period. In certain states, we are required to give you back your purchase payment if you decide to cancel your contract during the free look period. ACCUMULATION UNITS The portion of your account value allocated to the Separate Account will go up or down depending upon the investment performance of the investment portfolio(s) you choose. In order to keep track of this portion of your account value, we use a unit of measure we call an ACCUMULATION UNIT. (An accumulation unit works like a share of a mutual fund.) Every business day we determine the value of an accumulation unit for each of the investment portfolios by multiplying the accumulation unit value for the immediately preceding business day by a factor for the current business day. The factor is determined by: 1) dividing the net asset value per share of the investment portfolio at the end of the current business day, plus any dividend or capital gains per share declared on behalf of the investment portfolio as of that day, by the net asset value per share of the investment portfolio for the previous business day, and 2) multiplying it by one minus the Separate Account product charges (including any rider charge for the Annual Step-Up Death Benefit, the Compounded-Plus Death Benefit, and/or the Additional Death Benefit-Earnings Preservation Benefit) for each day since the last business day and any charges for taxes. The value of an accumulation unit may go up or down from day to day. When you make a purchase payment, we credit your contract with accumulation units. The number of accumulation units credited is determined by dividing the amount of the purchase payment allocated to an investment portfolio by the value of the accumulation unit for that investment portfolio. We calculate the value of an accumulation unit for each investment portfolio after the New York Stock Exchange closes each day (generally 4:00 p.m. Eastern Time) and then credit your contract. EXAMPLE: On Monday we receive an additional purchase payment of $5,000 from you before 4:00 p.m. Eastern Time. You have told us you want this to go to the Lord Abbett Growth and Income Portfolio. When the New York Stock Exchange closes on that Monday, we determine that the value of an accumulation unit for the Lord Abbett Growth and Income Portfolio is $13.90. We then divide $5,000 by $13.90 and credit your contract on Monday night with 359.71 accumulation units for the Lord Abbett Growth and Income Portfolio. 22 ACCOUNT VALUE ACCOUNT VALUE is equal to the sum of your interests in the investment portfolios, the fixed account, and the EDCA account. Your interest in each investment portfolio is determined by multiplying the number of accumulation units for that portfolio by the value of the accumulation unit. REPLACEMENT OF CONTRACTS EXCHANGE PROGRAMS. From time to time we may offer programs under which certain fixed or variable annuity contracts previously issued by us or one of our affiliates may be exchanged for the contracts offered by this prospectus. Currently, with respect to exchanges from certain of our variable annuity contracts to this contract, an existing contract is eligible for exchange if a withdrawal from, or surrender of, the contract would not trigger a withdrawal charge. The account value of this contract attributable to the exchanged assets will not be subject to any withdrawal charge or be eligible for the Enhanced Dollar Cost Averaging program or the Three Month Market Entry Program (see "Investment Options - Dollar Cost Averaging Programs"). Any additional purchase payments contributed to the new contract will be subject to all fees and charges, including the withdrawal charge described in this prospectus. You should carefully consider whether an exchange is appropriate for you by comparing the death benefits, living benefits, and other guarantees provided by the contract you currently own to the benefits and guarantees that would be provided by the new contract offered by this prospectus. Then, you should compare the fees and charges (for example, the death benefit charges, the living benefit charges, and the mortality and expense charge) of your current contract to the fees and charges of the new contract, which may be higher than your current contract. The programs we offer will be made available on terms and conditions determined by us, and any such programs will comply with applicable law. We believe the exchanges will be tax free for federal income tax purposes; however, you should consult your tax adviser before making any such exchange. OTHER EXCHANGES. Generally you can exchange one variable annuity contract for another in a tax-free exchange under Section 1035 of the Internal Revenue Code. Before making an exchange, you should compare both annuities carefully. If you exchange another annuity for the one described in this prospectus, unless the exchange occurs under one of our exchange programs as described above, you might have to pay a surrender charge on your old annuity, and there will be a new surrender charge period for this contract. Other charges may be higher (or lower) and the benefits may be different. Also, because we will not issue the contract until we have received the initial premium from your existing insurance company, the issuance of the contract may be delayed. Generally, it is not advisable to purchase a contract as a replacement for an existing variable annuity contract. Before you exchange another annuity for our contract, ask your registered representative whether the exchange would be advantageous, given the contract features, benefits and charges. 3. INVESTMENT OPTIONS The contract offers 40 INVESTMENT PORTFOLIOS, which are listed below. Additional investment portfolios may be available in the future. YOU SHOULD READ THE PROSPECTUSES FOR THESE FUNDS CAREFULLY. COPIES OF THESE PROSPECTUSES WILL ACCOMPANY OR PRECEDE THE DELIVERY OF YOUR CONTRACT. YOU CAN OBTAIN COPIES OF THE FUND PROSPECTUSES BY CALLING OR WRITING TO US AT: METLIFE INVESTORS USA INSURANCE COMPANY, ANNUITY SERVICE CENTER, P.O. BOX 10366, DES MOINES, IOWA 50306-0366, (800) 343-8496. YOU CAN ALSO OBTAIN INFORMATION ABOUT THE FUNDS (INCLUDING A COPY OF THE STATEMENT OF ADDITIONAL INFORMATION) BY ACCESSING THE SECURITIES AND EXCHANGE COMMISSION'S WEBSITE AT HTTP:// WWW.SEC.GOV. CERTAIN INVESTMENT PORTFOLIOS DESCRIBED IN THE FUND PROSPECTUSES MAY NOT BE AVAILABLE WITH YOUR CONTRACT. (SEE APPENDIX A.) APPENDIX B CONTAINS A SUMMARY OF ADVISERS, SUBADVISERS, AND INVESTMENT OBJECTIVES FOR EACH INVESTMENT PORTFOLIO. The investment objectives and policies of certain of the investment portfolios may be similar to the investment objectives and policies of other mutual funds that certain of the portfolios' investment advisers manage. Although the objectives and policies may be similar, the investment results of the investment portfolios may be higher or lower than the results of such other mutual funds. The investment advisers cannot guarantee, and make no representation, that the investment results of similar funds will be comparable even though the funds may have the same investment advisers. 23 Shares of the investment portfolios may be offered to insurance company separate accounts of both variable annuity and variable life insurance contracts and to qualified plans. Due to differences in tax treatment and other considerations, the interests of various owners participating in, and the interests of qualified plans investing in the investment portfolios may conflict. The investment portfolios will monitor events in order to identify the existence of any material irreconcilable conflicts and determine what action, if any, should be taken in response to any such conflict. CERTAIN PAYMENTS WE RECEIVE WITH REGARD TO THE INVESTMENT PORTFOLIOS. We do not receive compensation from any of the advisers or subadvisers of any of the investment portfolios of the Met Investors Series Trust or the Metropolitan Series Fund, Inc. (or their affiliates) for administrative or other services relating to the portfolios, excluding 12b-1 fees (see below). However, we and/or certain of our affiliated insurance companies have joint ownership interests in our affiliated investment advisers, MetLife Advisers, LLC and Met Investors Advisory, LLC, which are formed as "limited liability companies." Our ownership interests in MetLife Advisers, LLC and Met Investors Advisory, LLC entitle us to profit distributions if the adviser makes a profit with respect to the advisory fees it receives from the investment portfolios. We will benefit accordingly from assets allocated to the investment portfolios to the extent they result in profits to the advisers. (See "Fee Tables and Examples - Investment Portfolio Expenses" for information on the management fees paid by the investment portfolios and the Statement of Additional Information for the investment portfolios for information on the management fees paid by the advisers to the subadvisers.) Additionally, an investment adviser or subadviser of an investment portfolio or its affiliates may provide us with wholesaling services that assist in the distribution of the contracts and may pay us and/or certain of our affiliates amounts to participate in sales meetings. These amounts may be significant and may provide the adviser or subadviser (or its affiliate) with increased access to persons involved in the distribution of the contracts. Each of the Met Investors Series Trust and the Metropolitan Series Fund, Inc. has adopted a Distribution Plan under Rule 12b-1 of the Investment Company Act of 1940. Each investment portfolio's 12b-1 Plan is described in more detail in the investment portfolio's prospectus. (See "Fee Tables and Examples - Investment Portfolio Expenses" and "Other Information - Distributor.") Any payments we receive pursuant to those 12b-1 Plans are paid to us or our distributor. Payments under an investment portfolio's 12b-1 Plan decrease the investment portfolio's investment return. We select the investment portfolios offered through this contract based on a number of criteria, including asset class coverage, the strength of the adviser's or subadviser's reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Another factor we consider during the selection process is whether the investment portfolio's adviser or subadviser is one of our affiliates or whether the investment portfolio, its adviser, its subadviser(s), or an affiliate will make payments to us or our affiliates. In this regard, the profit distributions we receive from our affiliated investment advisers are a component of the total revenue that we consider in configuring the features and investment choices available in the variable insurance products that we and our affiliated insurance companies issue. Since we and our affiliated insurance companies may benefit more from the allocation of assets to portfolios advised by our affiliates than to those that are not, we may be more inclined to offer portfolios advised by our affiliates in the variable insurance products we issue. We review the investment portfolios periodically and may remove an investment portfolio or limit its availability to new purchase payments and/or transfers of account value if we determine that the investment portfolio no longer meets one or more of the selection criteria, and/or if the investment portfolio has not attracted significant allocations from owners. In some cases, we have included investment portfolios based on recommendations made by selling firms. These selling firms may receive payments from the investment portfolios they recommend and may benefit accordingly from the allocation of account value to such investment portfolios. WE DO NOT PROVIDE ANY INVESTMENT ADVICE AND DO NOT RECOMMEND OR ENDORSE ANY PARTICULAR INVESTMENT PORTFOLIO. YOU BEAR THE RISK OF ANY DECLINE IN THE ACCOUNT VALUE OF YOUR CONTRACT RESULTING FROM THE PERFORMANCE OF THE INVESTMENT PORTFOLIOS YOU HAVE CHOSEN. MET INVESTORS SERIES TRUST (CLASS B OR, AS NOTED, CLASS C) Met Investors Series Trust is a mutual fund with multiple portfolios. Met Investors Advisory, LLC (Met Investors Advisory), an affiliate of MetLife Investors USA, is the 24 investment manager of Met Investors Series Trust. Met Investors Advisory has engaged subadvisers to provide investment advice for the individual investment portfolios. (See Appendix B for the names of the subadvisers.) The following Class B or, as noted, Class C portfolios are available under the contract: American Funds Bond Portfolio (Class C) American Funds Growth Portfolio (Class C) American Funds International Portfolio (Class C) BlackRock High Yield Portfolio Clarion Global Real Estate Portfolio (formerly Neuberger Berman Real Estate Portfolio) Harris Oakmark International Portfolio Lazard Mid Cap Portfolio Legg Mason Partners Aggressive Growth Portfolio Legg Mason Value Equity Portfolio Loomis Sayles Global Markets Portfolio Lord Abbett Bond Debenture Portfolio Lord Abbett Growth and Income Portfolio Lord Abbett Mid Cap Value Portfolio Met/AIM Small Cap Growth Portfolio Met/Franklin Mutual Shares Portfolio MFS (Reg. TM) Emerging Markets Equity Portfolio MFS (Reg. TM) Research International Portfolio PIMCO Inflation Protected Bond Portfolio PIMCO Total Return Portfolio Rainier Large Cap Equity Portfolio RCM Technology Portfolio T. Rowe Price Mid Cap Growth Portfolio Third Avenue Small Cap Value Portfolio Turner Mid Cap Growth Portfolio Van Kampen Comstock Portfolio METROPOLITAN SERIES FUND, INC. (CLASS B OR, AS NOTED, CLASS E) Metropolitan Series Fund, Inc. is a mutual fund with multiple portfolios. MetLife Advisers, LLC (MetLife Advisers), an affiliate of MetLife Investors USA, is the investment adviser to the portfolios. MetLife Advisers has engaged subadvisers to provide investment advice for the individual investment portfolios. (See Appendix B for the names of the subadvisers.) The following Class B or, as noted, Class E portfolios are available under the contract: BlackRock Money Market Portfolio Davis Venture Value Portfolio (Class E) Harris Oakmark Focused Value Portfolio Jennison Growth Portfolio MetLife Stock Index Portfolio Western Asset Management U.S. Government Portfolio MET INVESTORS SERIES TRUST - METLIFE ASSET ALLOCATION PROGRAM (CLASS B) In addition to the portfolios listed above under Met Investors Series Trust, the following Class B portfolios are available under the contract: MetLife Defensive Strategy Portfolio MetLife Moderate Strategy Portfolio MetLife Balanced Strategy Portfolio MetLife Growth Strategy Portfolio MetLife Aggressive Strategy Portfolio MET INVESTORS SERIES TRUST - AMERICAN FUNDS ASSET ALLOCATION PORTFOLIOS (CLASS C) In addition to the portfolios listed above under Met Investors Series Trust, the following Class C portfolios are also available under the contract: American Funds Moderate Allocation Portfolio American Funds Balanced Allocation Portfolio American Funds Growth Allocation Portfolio MET INVESTORS SERIES TRUST - FRANKLIN TEMPLETON ASSET ALLOCATION PORTFOLIOS (CLASS B) In addition to the portfolios listed above under Met Investors Series Trust, the following Class B portfolio is also available under the contract: Met/Franklin Templeton Founding Strategy Portfolio TRANSFERS GENERAL. You can transfer a portion of your account value among the fixed account and the investment portfolios. The contract provides that you can make a maximum of 12 transfers every year and that each transfer is made without charge. We measure a year from the anniversary of the day we issued your contract. We currently allow unlimited transfers but reserve the right to limit this in the future. We may also limit transfers in circumstances of market timing or other transfers we determine are or would be to the disadvantage of other contract owners. (See "Investment Options - Transfers - Market Timing.") We are not currently charging a transfer fee, but we reserve the right to charge such a fee in the future. If such a charge were to be imposed, it would be $25 for each transfer over 12 in a year. The transfer fee will be deducted from the investment portfolio or fixed account from which the transfer is made. However, if the entire interest in an account is being transferred, the transfer fee will be deducted from the amount which is transferred. 25 You can make a transfer to or from the fixed account and to or from any investment portfolio, subject to the limitations below. All transfers made on the same business day will be treated as one transfer. Transfers received before the close of trading on the New York Stock Exchange will take effect as of the end of the business day. The following apply to any transfer: o Your request for transfer must clearly state which investment portfolio(s) or the fixed account are involved in the transfer. o Your request for transfer must clearly state how much the transfer is for. o The minimum amount you can transfer is $500 from an investment portfolio, or your entire interest in the investment portfolio, if less (this does not apply to pre-scheduled transfer programs). o The minimum amount that may be transferred from the fixed account is $500, or your entire interest in the fixed account. Transfers out of the fixed account during the accumulation phase are limited to the greater of: (a) 25% of the fixed account value at the beginning of the contract year, or (b) the amount transferred out of the fixed account in the prior contract year. Currently we are not imposing these restrictions on transfers out of the fixed account, but we have the right to reimpose them at any time. o You may not make a transfer to more than 18 investment portfolios (including the fixed account) at any time if the request is made by telephone to our voice response system or by Internet. A request to transfer to more than 18 investment portfolios (including the fixed account) may be made by calling or writing our Annuity Service Center. o If you have elected to add the Enhanced Death Benefit, GMIB Plus I, GMIB Plus II, Lifetime Withdrawal Guarantee I or Lifetime Withdrawal Guarantee II rider to your contract, you may only make transfers between certain investment portfolios. Please refer to the sections "Purchase-Allocation of Purchase Payments" and "Purchase-Investment Allocation Restrictions for Certain Riders." o If you have elected to add the Guaranteed Minimum Accumulation Benefit rider to your contract, you may not transfer out of the MetLife Asset Allocation Program portfolio you chose at issue until the rider terminates. Please refer to the section "Living Benefits-Guaranteed Minimum Accumulation Benefit." During the accumulation phase, to the extent permitted by applicable law, during times of drastic economic or market conditions, we may suspend the transfer privilege temporarily without notice and treat transfer requests based on their separate components (a redemption order with simultaneous request for purchase of another investment portfolio). In such a case, the redemption order would be processed at the source investment portfolio's next determined accumulation unit value. However, the purchase of the new investment portfolio would be effective at the next determined accumulation unit value for the new investment portfolio only after we receive the proceeds from the source investment portfolio, or we otherwise receive cash on behalf of the source investment portfolio. For transfers during the accumulation phase, we have reserved the right to restrict transfers to the fixed account if any one of the following conditions exist: o The credited interest rate is equal to the guaranteed minimum rate; o Your account value in the fixed account equals or exceeds our published maximum for fixed account contract values (currently, there is no limit); or o A transfer was made out of the fixed account within the previous 180 days. During the income phase, you cannot make transfers from a fixed annuity payment option to the investment portfolios. You can, however, make transfers during the income phase from the investment portfolios to a fixed annuity payment option and among the investment portfolios. TRANSFERS BY TELEPHONE OR OTHER MEANS. You may elect to make transfers by telephone, Internet or other means acceptable to us. To elect this option, you must first provide us with a notice or agreement in a form that we may require. If you own the contract with a joint owner, unless we are instructed otherwise, we will accept instructions from either you or the other owner. (See "Other Information - Requests and Elections.") 26 All transfers made on the same day will be treated as one transfer. A transfer will be made as of the end of the business day when we receive a notice containing all the required information necessary to process the request. We will consider telephone and Internet requests received after 4:00 p.m. Eastern Time to be received the following business day. PRE-SCHEDULED TRANSFER PROGRAM. There are certain programs that involve transfers that are pre-scheduled. When a transfer is made as a result of such a program, we do not count the transfer in determining the applicability of any transfer fee and certain minimums do not apply. The current pre-scheduled transfers are made in conjunction with the following: Dollar Cost Averaging, Three Month Market Entry and Automatic Rebalancing Programs. MARKET TIMING. Frequent requests from contract owners to transfer account value may dilute the value of an investment portfolio's shares if the frequent trading involves an attempt to take advantage of pricing inefficiencies created by a lag between a change in the value of the securities held by the portfolio and the reflection of that change in the portfolio's share price ("arbitrage trading"). Regardless of the existence of pricing inefficiencies, frequent transfers may also increase brokerage and administrative costs of the underlying investment portfolios and may disrupt portfolio management strategy, requiring a portfolio to maintain a high cash position and possibly resulting in lost investment opportunities and forced liquidations ("disruptive trading"). Accordingly, arbitrage trading and disruptive trading activities (referred to collectively as "market timing") may adversely affect the long-term performance of the investment portfolios, which may in turn adversely affect contract owners and other persons who may have an interest in the contracts (E.G., annuitants and beneficiaries). We have policies and procedures that attempt to detect and deter frequent transfers in situations where we determine there is a potential for arbitrage trading. Currently, we believe that such situations may be presented in the international, small-cap, and high-yield investment portfolios (i.e., the American Funds International, BlackRock High Yield, Clarion Global Real Estate, Harris Oakmark International, Loomis Sayles Global Markets, Lord Abbett Bond Debenture, Met/AIM Small Cap Growth, MFS (Reg. TM) Emerging Markets Equity, MFS (Reg. TM) Research International, and Third Avenue Small Cap Value Portfolios), and we monitor transfer activity in those portfolios (the "Monitored Portfolios"). We employ various means to monitor transfer activity, such as examining the frequency and size of transfers into and out of the Monitored Portfolios within given periods of time. For example, we currently monitor transfer activity to determine if, for each category of international, small-cap, and high-yield portfolios, in a 12-month period there were: (1) six or more transfers involving the given category; (2) cumulative gross transfers involving the given category that exceed the current account value; and (3) two or more "round-trips" involving the given category. A round-trip generally is defined as a transfer in followed by a transfer out within the next seven calendar days or a transfer out followed by a transfer in within the next seven calendar days, in either case subject to certain other criteria. We do not believe that other investment portfolios present a significant opportunity to engage in arbitrage trading and therefore do not monitor transfer activity in those portfolios. We may change the Monitored Portfolios at any time without notice in our sole discretion. In addition to monitoring transfer activity in certain investment portfolios, we rely on the underlying investment portfolios to bring any potential disruptive trading activity they identify to our attention for investigation on a case-by-case basis. We will also investigate any other harmful transfer activity that we identify from time to time. We may revise these policies and procedures in our sole discretion at any time without prior notice. Our policies and procedures may result in transfer restrictions being applied to deter market timing. Currently, when we detect transfer activity in the Monitored Portfolios that exceeds our current transfer limits, or other transfer activity that we believe may be harmful to other owners or other persons who have an interest in the contracts, we require all future transfer requests to or from any Monitored Portfolios or other identified investment portfolios under that contract to be submitted with an original signature. Transfers made under a Dollar Cost Averaging Program, a rebalancing program or, if applicable, any asset allocation program described in this prospectus are not treated as transfers when we evaluate trading patterns for market timing. The detection and deterrence of harmful transfer activity involves judgments that are inherently subjective, such as the decision to monitor only those investment portfolios that we believe are susceptible to arbitrage trading, or the determination of the transfer limits. Our ability to detect 27 and/or restrict such transfer activity may be limited by operational and technological systems, as well as our ability to predict strategies employed by owners to avoid such detection. Our ability to restrict such transfer activity also may be limited by provisions of the contract. Accordingly, there is no assurance that we will prevent all transfer activity that may adversely affect owners and other persons with interests in the contracts. We do not accommodate market timing in any investment portfolios and there are no arrangements in place to permit any contract owner to engage in market timing; we apply our policies and procedures without exception, waiver, or special arrangement. The investment portfolios may have adopted their own policies and procedures with respect to frequent purchases and redemptions of their respective shares, and we reserve the right to enforce these policies and procedures. For example, investment portfolios may assess a redemption fee (which we reserve the right to collect) on shares held for a relatively short period. The prospectuses for the investment portfolios describe any such policies and procedures, which may be more or less restrictive than the policies and procedures we have adopted. Although we may not have the contractual authority or the operational capacity to apply the frequent trading policies and procedures of the investment portfolios, we have entered into a written agreement, as required by SEC regulation, with each investment portfolio or its principal underwriter that obligates us to provide to the investment portfolio promptly upon request certain information about the trading activity of individual contract owners, and to execute instructions from the investment portfolio to restrict or prohibit further purchases or transfers by specific contract owners who violate the frequent trading policies established by the investment portfolio. In addition, contract owners and other persons with interests in the contracts should be aware that the purchase and redemption orders received by the investment portfolios generally are "omnibus" orders from intermediaries, such as retirement plans or separate accounts funding variable insurance contracts. The omnibus orders reflect the aggregation and netting of multiple orders from individual owners of variable insurance contracts and/or individual retirement plan participants. The omnibus nature of these orders may limit the investment portfolios in their ability to apply their frequent trading policies and procedures. In addition, the other insurance companies and/or retirement plans may have different policies and procedures or may not have any such policies and procedures because of contractual limitations. For these reasons, we cannot guarantee that the investment portfolios (and thus contract owners) will not be harmed by transfer activity relating to other insurance companies and/or retirement plans that may invest in the investment portfolios. If an investment portfolio believes that an omnibus order reflects one or more transfer requests from contract owners engaged in disruptive trading activity, the investment portfolio may reject the entire omnibus order. In accordance with applicable law, we reserve the right to modify or terminate the transfer privilege at any time. We also reserve the right to defer or restrict the transfer privilege at any time that we are unable to purchase or redeem shares of any of the investment portfolios, including any refusal or restriction on purchases or redemptions of their shares as a result of their own policies and procedures on market timing activities (even if an entire omnibus order is rejected due to the market timing activity of a single contract owner). You should read the investment portfolio prospectuses for more details. DOLLAR COST AVERAGING PROGRAMS We offer two dollar cost averaging programs as described below. By allocating amounts on a regular schedule as opposed to allocating the total amount at one particular time, you may be less susceptible to the impact of market fluctuations. You can elect only one dollar cost averaging program at a time. The dollar cost averaging programs are available only during the accumulation phase. We reserve the right to modify, terminate or suspend any of the dollar cost averaging programs. There is no additional charge for participating in any of the dollar cost averaging programs. If you participate in any of the dollar cost averaging programs, the transfers made under the program are not taken into account in determining any transfer fee. We may, from time to time, offer other dollar cost averaging programs which have terms different from those described in this prospectus. 28 The two dollar cost averaging programs are: 1. STANDARD DOLLAR COST AVERAGING (DCA) This program allows you to systematically transfer a set amount each month from the fixed account or from a money market investment portfolio to any of the other available investment portfolio(s) you select. We provide certain exceptions from our normal fixed account restrictions to accommodate dollar cost averaging programs. These transfers are made on a date you select or, if you do not select a date, on the date that a purchase payment or account value is allocated to the dollar cost averaging program. You can make subsequent purchase payments while you have an active DCA program in effect, provided, however, that no amount will be allocated to the DCA program without your express direction. (See "Purchase - Allocation of Purchase Payments.") If you make such an addition to your existing DCA program, the DCA transfer amount will not be increased; however, the number of months over which transfers are made is increased, unless otherwise elected in writing. You can terminate the program at any time, at which point transfers under the program will stop. This program is not available if you have selected the GMIB Plus I rider, the GMIB Plus II rider, the Lifetime Withdrawal Guarantee II rider, the GMAB rider, or the Enhanced Death Benefit rider. 2. ENHANCED DOLLAR COST AVERAGING PROGRAM (EDCA) The Enhanced Dollar Cost Averaging (EDCA) Program allows you to systematically transfer amounts from the EDCA account in the general account to any available investment portfolio(s) you select. Except as discussed below, only new purchase payments or portions thereof can be allocated to an EDCA account. The transfer amount will be equal to the amount allocated to the EDCA account divided by a specified number of months (currently 6 or 12 months). For example, a $12,000 allocation to a 6-month program will consist of six $2,000 transfers, and a final transfer of the interest processed separately as a seventh transfer. You can make subsequent purchase payments while you have an active EDCA account in effect, provided, however, that no amount will be allocated to the EDCA account without your express direction. (See "Purchase - Allocation of Purchase Payments.") When a subsequent purchase payment is allocated by you to your existing EDCA account we create "buckets" within your EDCA account. o The EDCA transfer amount will be increased by the subsequent purchase payment divided by the number of EDCA months (6 or 12 months as you selected) and thereby accelerates the time period over which transfers are made. o Each allocation (bucket) resulting from a subsequent purchase payment will earn interest at the then current interest rate applied to new allocations to an EDCA account of the same monthly term. o Allocations (buckets) resulting from each purchase payment, along with the interest credited, will be transferred on a first-in, first-out basis. Using the example above, a subsequent $6,000 allocation to a 6 month EDCA will increase the EDCA transfer amount from $2,000 to $3,000 ($2,000 plus $6,000/6). This increase will have the effect of accelerating the rate at which the 1st payment bucket is exhausted. (See Appendix C for further examples of EDCA with multiple purchase payments.) The interest rate earned in an EDCA account will be the minimum guaranteed rate, plus any additional interest which we may declare from time to time. The interest rate earned in an EDCA account is paid over time on declining amounts in the EDCA account. Therefore, the amount of interest payments you receive will decrease as amounts are systematically transferred from the EDCA account to any investment portfolio, and the effective interest rate earned will therefore be less than the declared interest rate. The first transfer we make under the EDCA program is the date your purchase payment is allocated to your EDCA account. Subsequent transfers will be made each month thereafter on the same day. However, transfers will be made on the 1st day of the following month for purchase payments allocated on the 29th, 30th, or 31st day of a month. If the selected day is not a business day, the transfer will be deducted from the EDCA account on the selected day but will be applied to the investment portfolios on the next business day. EDCA interest will not be credited on the transfer amount between the selected day and the next 29 business day. Transfers will continue on a monthly basis until all amounts are transferred from your EDCA account. Your EDCA account will be terminated as of the last transfer. If you decide you no longer want to participate in the EDCA program, and your contract was issued prior to May 1, 2005, all money remaining in your EDCA account will be transferred to the BlackRock Money Market Portfolio, unless you specify otherwise. If your contract was issued on or after May 1, 2005, all money remaining in your EDCA account will be transferred to the investment portfolio(s) in accordance with the percentages you have chosen for the EDCA program, unless you specify otherwise. THREE MONTH MARKET ENTRY PROGRAM Alternatively, you can participate in the Three Month Market Entry Program which operates in the same manner as the Enhanced Dollar Cost Averaging Program, except it is of 3 months duration. AUTOMATIC REBALANCING PROGRAM Once your money has been allocated to the investment portfolios, the performance of each portfolio may cause your allocation to shift. You can direct us to automatically rebalance your contract to return to your original percentage allocations by selecting our Automatic Rebalancing Program. You can tell us whether to rebalance monthly, quarterly, semi-annually or annually. An automatic rebalancing program is intended to transfer account value from those portfolios that have increased in value to those that have declined or not increased as much in value. Over time, this method of investing may help you "buy low and sell high," although there can be no assurance that this objective will be achieved. Automatic rebalancing does not guarantee profits, nor does it assure that you will not have losses. We will measure the rebalancing periods from the anniversary of the date we issued your contract. If a dollar cost averaging (either DCA or EDCA) program is in effect, rebalancing allocations will be based on your current DCA or EDCA allocations. If you are not participating in a dollar cost averaging program, we will make allocations based upon your current purchase payment allocations, unless you tell us otherwise. The Automatic Rebalancing Program is available only during the accumulation phase. There is no additional charge for participating in the Automatic Rebalancing Program. If you participate in the Automatic Rebalancing Program, the transfers made under the program are not taken into account in determining any transfer fee. If you have selected the GMIB Plus II rider, the Lifetime Withdrawal Guarantee II rider, or the Enhanced Death Benefit rider, the fixed account is available for automatic rebalancing. The Automatic Rebalancing Program is not available if you have selected the GMAB rider. EXAMPLE: Assume that you want your initial purchase payment split between 2 investment portfolios. You want 40% to be in the Lord Abbett Bond Debenture Portfolio and 60% to be in the Legg Mason Partners Aggressive Growth Portfolio. Over the next 2 1/2 months the bond market does very well while the stock market performs poorly. At the end of the first quarter, the Lord Abbett Bond Debenture Portfolio now represents 50% of your holdings because of its increase in value. If you have chosen to have your holdings rebalanced quarterly, on the first day of the next quarter, we will sell some of your units in the Lord Abbett Bond Debenture Portfolio to bring its value back to 40% and use the money to buy more units in the Legg Mason Partners Aggressive Growth Portfolio to increase those holdings to 60%. DESCRIPTION OF THE METLIFE ASSET ALLOCATION PROGRAM The MetLife Asset Allocation Program consists of the following five MetLife asset allocation portfolios (Class B), each of which is a portfolio of the Met Investors Series Trust. Met Investors Advisory, LLC ("Met Investors Advisory"), an affiliate of ours, is the investment manager of the MetLife asset allocation portfolios. METLIFE ASSET ALLOCATION PROGRAM PORTFOLIOS ------------------------------------------- MetLife Defensive Strategy Portfolio MetLife Moderate Strategy Portfolio MetLife Balanced Strategy Portfolio MetLife Growth Strategy Portfolio MetLife Aggressive Strategy Portfolio Each portfolio is well diversified and was designed on established principles of asset allocation and risk tolerance. Each portfolio will invest substantially all of its assets in the Class A shares of other investment portfolios of the Met Investors Series Trust or of the Metropolitan Series Fund, Inc., which invest either in equity securities, fixed income securities or cash equivalent money market securities, as applicable. Each portfolio has a target 30 allocation among the three types of asset classes (equity, fixed income and cash/money market). Met Investors Advisory establishes specific target investment percentages for the asset classes and the various components of each asset category and then selects the underlying investment portfolios in which a portfolio invests based on, among other things, the underlying investment portfolios' investment objectives and policies, Met Investors Advisory's investment process, its outlook for the economy, interest rates, financial markets and historical performance of each underlying investment portfolio and/or asset class. At least annually, Met Investors Advisory will evaluate each portfolio's target allocation between equity and fixed income securities, including the allocation among sub-classes of these asset classes, based on the portfolio's risk profile. At the same time, Met Investors Advisory will also consider whether to make changes to each portfolio's underlying investment portfolio target. (See the fund prospectus for a description of each portfolio's target allocation.) Met Investors Advisory has hired an independent consultant to provide research and consulting services with respect to the periodic asset allocation targets for each of the portfolios and to investment in the underlying investment portfolios, which may assist Met Investors Advisory in determining the underlying investment portfolios that may be available for investment and with the selection of and allocation of each portfolio's investments among the underlying investment portfolios. Met Investors Advisory is responsible for paying the consulting fees. VOTING RIGHTS We are the legal owner of the investment portfolio shares. However, we believe that when an investment portfolio solicits proxies in conjunction with a vote of shareholders, we are required to obtain from you and other affected owners instructions as to how to vote those shares. When we receive those instructions, we will vote all of the shares we own in proportion to those instructions. This will also include any shares that we own on our own behalf. The effect of this proportional voting is that a small number of contract owners may control the outcome of a vote. Should we determine that we are no longer required to comply with the above, we will vote the shares in our own right. SUBSTITUTION OF INVESTMENT OPTIONS If investment in the investment portfolios or a particular investment portfolio is no longer possible, in our judgment becomes inappropriate for purposes of the contract, or for any other reason in our sole discretion, we may substitute another investment portfolio or investment portfolios without your consent. The substituted investment portfolio may have different fees and expenses. Substitution may be made with respect to existing investments or the investment of future purchase payments, or both. However, we will not make such substitution without any necessary approval of the Securities and Exchange Commission and applicable state insurance departments. Furthermore, we may close investment portfolios to allocation of purchase payments or account value, or both, at any time in our sole discretion. 4. EXPENSES There are charges and other expenses associated with the contract that reduce the return on your investment in the contract. These charges and expenses are: PRODUCT CHARGES SEPARATE ACCOUNT PRODUCT CHARGES. Each day, we make a deduction for our Separate Account product charges (which consist of the mortality and expense charge, the administration charge and the charges related to certain death benefit riders). We do this as part of our calculation of the value of the accumulation units and the annuity units (I.E., during the accumulation phase and the income phase - although death benefit charges no longer continue in the income phase). MORTALITY AND EXPENSE CHARGE. We assess a daily mortality and expense charge which is equal, on an annual basis, to 1.05% of the average daily net asset value of each investment portfolio. This charge compensates us for mortality risks we assume for the annuity payment and death benefit guarantees made under the contract. These guarantees include making annuity payments that will not change based on our actual mortality experience, and providing a guaranteed minimum death benefit under the contract. The charge also compensates us for expense risks we assume to cover contract maintenance expenses. These expenses may include issuing contracts, maintaining records, making and maintaining subaccounts available under the contract and performing accounting, regulatory compliance, and reporting functions. This charge also compensates us for costs associated with the establishment and administration of the contract, including programs like transfers and dollar cost averaging. If the mortality and expense charge is 31 inadequate to cover the actual expenses of mortality, maintenance, and administration, we will bear the loss. If the charge exceeds the actual expenses, we will add the excess to our profit and it may be used to finance distribution expenses or for any other purpose. ADMINISTRATION CHARGE. This charge is equal, on an annual basis, to 0.25% of the average daily net asset value of each investment portfolio. This charge, together with the account fee (see below), is for the expenses associated with the administration of the contract. Some of these expenses are: issuing contracts, maintaining records, providing accounting, valuation, regulatory and reporting services, as well as expenses associated with marketing, sale and distribution of the contracts. DEATH BENEFIT RIDER CHARGES. If you select one of the following death benefit riders, we assess a daily charge during the accumulation phase equal, on an annual basis, to the percentages below of the average daily net asset value of each investment portfolio: Annual Step-Up Death Benefit 0.20%* Additional Death Benefit - Earnings Preservation Benefit 0.25 % Compounded-Plus Death Benefit 0.35%*
*For contracts issued prior to May 1, 2003, the percentage charge for the Annual Step-Up Death Benefit is 0.10% and for the Compounded-Plus Death Benefit is 0.25% of the average daily net asset value of each investment portfolio. Please check with your registered representative regarding which death benefits are available in your state. If you select the Enhanced Death Benefit, and you are age 69 or younger at issue, we will assess a charge during the accumulation phase equal to 0.65% of the death benefit base. If you are age 70-75 at issue, we will assess a charge during the accumulation phase equal to 0.85% of the death benefit base (see "Death Benefit - Optional Death Benefit - Enhanced Death Benefit" for a discussion of how the death benefit base is determined). If your death benefit base is increased due to an Optional Step-Up, we may reset the rider charge to a rate we shall determine that does not exceed the Maximum Optional Step-Up Charge (1.50%), provided that this rate will not exceed the rate currently applicable to the same rider available for new contract purchases at the time of the Optional Step-Up. Starting with the first contract anniversary, the charge is assessed for the prior contract year at each contract anniversary before any Optional Step-Up. If you make a full withdrawal (surrender) or if you begin to receive annuity payments at the annuity date, a pro rata portion of the charge will be assessed based on the number of months from the last contract anniversary to the date of withdrawal or application to an annuity option. The charge is deducted from your account value pro rata from each investment portfolio, the fixed account and the EDCA account in the ratio each portfolio/account bears to your total account value. We take amounts from the investment options that are part of the Separate Account by canceling accumulation units from the Separate Account. If you elect both the Enhanced Death Benefit rider and the GMIB Plus II rider (described below), the percentage charge for the Enhanced Death Benefit will be reduced to 0.60% of the death benefit base if you are age 69 or younger at issue and 0.80% of the death benefit base if you are age 70-75 at issue. ACCOUNT FEE During the accumulation phase, every contract year on your contract anniversary (the anniversary of the date when your contract was issued), we will deduct $30 from your contract as an account fee for the prior contract year if your account value is less than $50,000. If you make a complete withdrawal from your contract, the full account fee will be deducted from the account value regardless of the amount of your account value. During the accumulation phase, the account fee is deducted pro rata from the investment portfolios. This charge is for administrative expenses (see above). This charge cannot be increased. A pro rata portion of the charge will be deducted from the account value on the annuity date if this date is other than a contract anniversary. If your account value on the annuity date is at least $50,000, then we will not deduct the account fee. After the annuity date, the charge will be collected monthly out of the annuity payment, regardless of the size of your contract. GUARANTEED MINIMUM INCOME BENEFIT - RIDER CHARGE We offer a Guaranteed Minimum Income Benefit ("GMIB") that you can select when you purchase the contract. There are four different versions of the GMIB 32 under this contract (a maximum of two of which are available in your state): GMIB Plus II, GMIB Plus I, GMIB II, and GMIB I. If you select the GMIB Plus II rider, we will assess a charge during the accumulation phase equal to 0.80% of the income base (see "Living Benefits - Guaranteed Income Benefits" for a discussion of how the income base is determined) at the time the rider charge is assessed prior to any Optional Step-Up. If your income base is increased due to an Optional Step-Up under the GMIB Plus II rider, we may reset the rider charge to a rate we shall determine that does not exceed the Maximum Optional Step-Up Charge (1.50%), provided that this rate will not exceed the rate currently applicable to the same rider available for new contract purchases at the time of the Optional Step-Up. If you select the GMIB Plus I rider, we will assess a charge during the accumulation phase equal to 0.80% of the income base at the time the rider charge is assessed. If your income base is increased due to an Optional Reset under the GMIB Plus I rider, we may increase the rider charge to the charge applicable to contract purchases of the same rider at the time of the increase, but to no more than a maximum of 1.50%. For contracts issued prior to February 26, 2007 for which the GMIB Plus I was elected, the rider charge equals 0.75% of the income base. If you select the GMIB II or GMIB I rider, the charge is 0.50% of the income base at the time the charge is assessed. For contracts issued from May 1, 2003 and prior to May 1, 2005 for which the GMIB II or GMIB I was elected, the rider charge is reduced to 0.45% of the income base if you elected either the optional Annual Step-Up Death Benefit or the Compounded-Plus Death Benefit. (See "Death Benefit.") For contracts issued on and after May 1, 2005, the rider charge will not be reduced if you elect either the optional Annual Step-Up Death Benefit or the Compounded-Plus Death Benefit. For contracts issued prior to February 15, 2003, the GMIB I rider charge equals 0.35% of the income base. The rider charge is assessed at the first contract anniversary, and then at each subsequent contract anniversary, up to and including the anniversary on or immediately preceding the date the rider is exercised. If you make a full withdrawal (surrender) or if you begin to receive annuity payments at the annuity date, a pro rata portion of the rider charge will be assessed based on the number of months from the last contract anniversary to the date of withdrawal or application to an annuity option. The GMIB rider charge is deducted from your account value pro rata from each investment portfolio, the fixed account and the EDCA account in the ratio each portfolio/ account bears to your total account value. We take amounts from the investment options that are part of the Separate Account by canceling accumulation units from the Separate Account. LIFETIME WITHDRAWAL GUARANTEE AND GUARANTEED WITHDRAWAL BENEFIT - RIDER CHARGE There are two versions of the optional Lifetime Withdrawal Guarantee rider: the Lifetime Withdrawal Guarantee II rider and the Lifetime Withdrawal Guarantee I rider (collectively referred to as the Lifetime Withdrawal Guarantee riders). There are also two versions of the optional Guaranteed Withdrawal Benefit ("GWB") rider: the Enhanced GWB rider and the GWB I rider (collectively referred to as the Guaranteed Withdrawal Benefit riders). Please check with your registered representative regarding which versions are available in your state. If you elect one of the Lifetime Withdrawal Guarantee riders or one of the Guaranteed Withdrawal Benefit riders, a charge is deducted from your account value during the accumulation phase on each contract anniversary. The charge for the Lifetime Withdrawal Guarantee II rider is equal to 0.65% (Single Life version) or 0.85% (Joint Life version) of the Total Guaranteed Withdrawal Amount (see "Living Benefits - Guaranteed Withdrawal Benefits - Description of the Lifetime Withdrawal Guarantee II") on the applicable contract anniversary, after applying any 7.25% Compounding Income Amount and prior to taking into account any Automatic Annual Step-Up occurring on such contract anniversary. The charge for the Lifetime Withdrawal Guarantee I rider is equal to 0.50% (Single Life version) or 0.70% (Joint Life version) of the Total Guaranteed Withdrawal Amount on the applicable contract anniversary, after applying any 5% Compounding Income Amount and prior to taking into account any Automatic Annual Step-Up occurring on such contract anniversary. The charge for the Enhanced GWB rider is equal to 0.55% of the Guaranteed Withdrawal Amount (see "Living Benefits - Guaranteed Withdrawal Benefit - Description of the Enhanced Guaranteed Withdrawal Benefit") on the applicable contract anniversary, prior to taking into account any Optional Reset occurring on such contract anniversary. (For contracts issued prior to July 16, 2007, the charge for the Enhanced GWB rider is equal to 0.50% of the Guaranteed Withdrawal Amount on the applicable contract anniversary, prior to taking into account any Optional Reset occurring on such contract 33 anniversary.) The charge for the GWB I rider is equal to 0.50% of the Guaranteed Withdrawal Amount on the applicable contract anniversary, prior to taking into account any Optional Reset occurring on such contract anniversary. The rider charge for the Lifetime Withdrawal Guarantee riders and the Guaranteed Withdrawal Benefit riders is deducted from your account value pro rata from each investment portfolio, the fixed account and the EDCA account in the ratio each portfolio/account bears to your total account value. We take amounts from the investment options that are part of the Separate Account by canceling accumulation units from the Separate Account. If you make a full withdrawal (surrender) of your account value, you apply your account value to an annuity option, there is a change in owners, joint owners or annuitants (if the owner is a non-natural person), or the contract terminates (except for a termination due to death), a pro rata portion of the rider charge will be assessed based on the number of full months from the last contract anniversary to the date of the change. If the Enhanced GWB rider or a Lifetime Withdrawal Guarantee rider is cancelled pursuant to the cancellation provisions of each rider, a pro rata portion of the rider charge will not be assessed based on the period from the most recent contract anniversary to the date the cancellation takes effect. If an Automatic Annual Step-Up occurs under the Lifetime Withdrawal Guarantee II rider, we may reset the Lifetime Withdrawal Guarantee II rider charge to a rate we shall determine that does not exceed the Maximum Optional Step-Up Charge of 1.25% (Single Life version) or 1.50% (Joint Life version), provided that this rate will not exceed the rate currently applicable to the same rider available for new contract purchases at the time of the step-up. If an Automatic Annual Step-Up occurs under the Lifetime Withdrawal Guarantee I rider, we may increase the Lifetime Withdrawal Guarantee I rider charge to the charge applicable to current contract purchases of the same rider at the time of the step-up, but to no more than a maximum of 0.95% (Single Life version) or 1.40% (Joint Life version) of the Total Guaranteed Withdrawal Amount. If you elect an Optional Reset as permitted under the Enhanced GWB rider or the GWB I rider, we may increase the rider charge to the Enhanced GWB/GWB I rider charge applicable to current contract purchases of the same rider at the time of the reset, but to no more than a maximum of 1.00% (for Enhanced GWB) or 0.95% (for GWB I) of the Guaranteed Withdrawal Amount. (For contracts issued prior to July 16, 2007, the maximum charge for the Enhanced GWB rider upon an Optional Reset is equal to 0.95% of the Guaranteed Withdrawal Amount.) If one of the Lifetime Withdrawal Guarantee riders is in effect, the rider charge will continue if your Remaining Guaranteed Withdrawal Amount (see "Living Benefits - Guaranteed Withdrawal Benefit - Description of the Lifetime Withdrawal Guarantee II") equals zero. If the Enhanced GWB or GWB I rider is in effect, the rider charge will not continue if your Benefit Base (see "Living Benefits - Guaranteed Withdrawal Benefit - Description of the Enhanced Guaranteed Withdrawal Benefit") equals zero. GUARANTEED MINIMUM ACCUMULATION BENEFIT - RIDER CHARGE We offer a Guaranteed Minimum Accumulation Benefit ("GMAB") rider that you can select when you purchase the contract. If you elect the GMAB, a charge is deducted from your account value during the accumulation phase on each contract anniversary. The charge is equal to 0.75% of the GMAB Guaranteed Accumulation Amount (see "Living Benefits-Guaranteed Minimum Accumulation Benefit") at the end of the prior contract year. The GMAB rider charge is deducted from your account value pro rata from your contract's MetLife Asset Allocation Program portfolio and the EDCA account in the ratio each portfolio/account bears to your total account value. We take amounts from the investment options that are part of the Separate Account by cancelling accumulation units from the Separate Account. If you make a full withdrawal (surrender) of your account value or you apply your account value to an annuity option, we will assess a pro rata portion of the GMAB rider charge based on the number of whole months since the last contract anniversary. WITHDRAWAL CHARGE During the accumulation phase, you can make a withdrawal from your contract (either a partial or a complete withdrawal). If the amount you withdraw is determined to include the withdrawal of any of your prior purchase payments, a withdrawal charge is assessed against the purchase payment withdrawn. To determine if your withdrawal includes prior purchase payments, amounts are withdrawn from your contract in the following order: 1. Earnings in your contract (earnings are equal to your 34 account value, less purchase payments not previously withdrawn); then 2. The free withdrawal amount described below; then 3. Purchase payments not previously withdrawn, in the order such purchase payments were made: the oldest purchase payment first, the next purchase payment second, etc. until all purchase payments have been withdrawn. A withdrawal charge will be assessed if prior purchase payments are withdrawn pursuant to a request to divide the assets of a contract due to divorce. FREE WITHDRAWAL AMOUNT. The free withdrawal amount for each contract year after the first (there is no free withdrawal amount in the first contract year) is equal to 10% of your total purchase payments, less the total free withdrawal amount previously withdrawn in the same contract year. Also, we currently will not assess the withdrawal charge on amounts withdrawn during the first contract year under the Systematic Withdrawal Program. Any unused free withdrawal amount in one contract year does not carry over to the next contract year. The withdrawal charge is calculated at the time of each withdrawal in accordance with the following:
Number of Complete Years from Withdrawal Charge Receipt of Purchase Payment (% of Purchase Payment) ------------------------------ ------------------------ 0 7 1 6 2 6 3 5 4 4 5 3 6 2 7 and thereafter 0
For a partial withdrawal, the withdrawal charge is deducted from the remaining account value, if sufficient. If the remaining account value is not sufficient, the withdrawal charge is deducted from the amount withdrawn. If the account value is smaller than the total of all purchase payments, the withdrawal charge only applies up to the account value. We do not assess the withdrawal charge on any payments paid out as annuity payments or as death benefits, although we do assess the withdrawal charge in calculating GMIB payments, if applicable. In addition, we will not assess the withdrawal charge on required minimum distributions from qualified contracts but only as to amounts required to be distributed from this contract. We do not assess the withdrawal charge on earnings in your contract. NOTE: For tax purposes, earnings from non-qualified contracts are considered to come out first. REDUCTION OR ELIMINATION OF THE WITHDRAWAL CHARGE GENERAL. We may elect to reduce or eliminate the amount of the withdrawal charge when the contract is sold under circumstances which reduce our sales expenses. Some examples are: if there is a large group of individuals that will be purchasing the contract or a prospective purchaser already had a relationship with us. We may not deduct a withdrawal charge under a contract issued to an officer, director, employee, or a family member of an officer, director, or employee of ours or any of our affiliates and we may not deduct a withdrawal charge under a contract issued to an officer, director or employee or family member of an officer, director or employee of a broker-dealer which is participating in the offering of the contract. In lieu of a withdrawal charge waiver, we may provide an account value credit. NURSING HOME OR HOSPITAL CONFINEMENT RIDER. We will not impose a withdrawal charge if, after you have owned the contract for one year, you or your joint owner becomes confined to a nursing home and/or hospital for at least 90 consecutive days or confined for a total of at least 90 days if there is no more than a 6 month break in confinement and the confinements are for related causes. The confinement must begin after the first contract anniversary and you must have been the owner continuously since the contract was issued (or have become the owner as the spousal beneficiary who continues the contract). The confinement must be prescribed by a physician and be medically necessary. This waiver terminates on the annuity date. We will not accept additional payments once this waiver is used. This rider may not be available in your state. (Check with your registered representative regarding availability.) TERMINAL ILLNESS RIDER. After the first contract anniversary, we will waive the withdrawal charge if you or your joint owner are terminally ill and not expected to live more than 12 months; a physician certifies to your illness and life expectancy; you were not diagnosed with the terminal illness as of the date we issued your contract; and you have been the owner continuously since the contract was issued (or have become the owner as the spousal 35 beneficiary who continues the contract). This waiver terminates on the annuity date. We will not accept additional payments once this waiver is used. This rider may not be available in your state. (Check with your registered representative regarding availability.) For contracts issued on and after May 1, 2005, the Nursing Home or Hospital Confinement rider and the Terminal Illness rider are not available for owners who are age 81 or older (on the contract issue date). Additional conditions and requirements apply to the Nursing Home or Hospital Confinement rider and the Terminal Illness rider. They are specified in the rider(s) that are part of your contract. PREMIUM AND OTHER TAXES We reserve the right to deduct from purchase payments, account balances, withdrawals, death benefits or income payments any taxes relating to the contracts (including, but not limited to, premium taxes) paid by us to any government entity. Examples of these taxes include, but are not limited to, premium tax, generation-skipping transfer tax or a similar excise tax under federal or state tax law which is imposed on payments we make to certain persons and income tax withholdings on withdrawals and income payments to the extent required by law. Premium taxes generally range from 0 to 3.5%, depending on the state. We will, at our sole discretion, determine when taxes relate to the contracts. We may, at our sole discretion, pay taxes when due and deduct that amount from the account balance at a later date. Payment at an earlier date does not waive any right we may have to deduct amounts at a later date. It is our current practice not to charge premium taxes until annuity payments begin. TRANSFER FEE We currently allow unlimited transfers without charge during the accumulation phase. However, we have reserved the right to limit the number of transfers to a maximum of 12 per year without charge and to charge a transfer fee of $25 for each transfer greater than 12 in any year. We are currently waiving the transfer fee, but reserve the right to charge it in the future. The transfer fee is deducted from the investment portfolio or fixed account from which the transfer is made. However, if the entire interest in an account is being transferred, the transfer fee will be deducted from the amount which is transferred. If the transfer is part of a pre-scheduled transfer program, it will not count in determining the transfer fee. INCOME TAXES We will deduct from the contract for any income taxes which we incur because of the contract. At the present time, we are not making any such deductions. INVESTMENT PORTFOLIO EXPENSES There are deductions from and expenses paid out of the assets of each investment portfolio, which are described in the fee table in this prospectus and the investment portfolio prospectuses. These deductions and expenses are not charges under the terms of the contract, but are represented in the share values of each investment portfolio. 5. ANNUITY PAYMENTS (THE INCOME PHASE) ANNUITY DATE Under the contract you can receive regular income payments (referred to as ANNUITY PAYMENTS). You can choose the month and year in which those payments begin. We call that date the ANNUITY DATE. Your annuity date must be the first day of a calendar month and must be at least 30 days after we issue the contract. Annuity payments must begin by the first day of the calendar month following the annuitant's 90th birthday or 10 years from the date we issue your contract, whichever is later (this requirement may be changed by us). When you purchase the contract, the annuity date will be the later of the first day of the calendar month after the annuitant's 90th birthday or 10 years from the date your contract was issued. You can change the annuity date at any time before the annuity date with 30 days prior notice to us. Please be aware that once your contract is annuitized, you are ineligible to receive the death benefit you have selected. Additionally, if you have selected a living benefit rider such as a Guaranteed Minimum Income Benefit, a Guaranteed Withdrawal Benefit, or the Guaranteed Minimum Accumulation Benefit, annuitizing your contract terminates the rider, including any death benefit provided by the rider and any Guaranteed Principal Adjustment (for the Guaranteed Minimum Income Benefit Plus or Lifetime Withdrawal Guarantee riders) or Guaranteed Accumulation Payment (for the Guaranteed Minimum Accumulation Benefit rider) that may also be provided by the rider. 36 ANNUITY PAYMENTS You (unless another payee is named) will receive the annuity payments during the income phase. The annuitant is the natural person(s) whose life we look to in the determination of annuity payments. During the income phase, you have the same investment choices you had just before the start of the income phase. At the annuity date, you can choose whether payments will be: o fixed annuity payments, or o variable annuity payments, or o a combination of both. If you don't tell us otherwise, your annuity payments will be based on the investment allocations that were in place just before the start of the income phase. If you choose to have any portion of your annuity payments based on the investment portfolio(s), the dollar amount of your initial payment will vary and will depend upon three things: 1) the value of your contract in the investment portfolio(s) just before the start of the income phase, 2) the assumed investment return (AIR) (you select) used in the annuity table for the contract, and 3) the annuity option elected. Subsequent variable annuity payments will vary with the performance of the investment portfolios you selected. (For more information, see "Variable Annuity Payments" below.) At the time you choose an annuity option, you select the AIR, which must be acceptable to us. Currently, you can select an AIR of 3% or 4%. You can change the AIR with 30 days notice to us prior to the annuity date. If you do not select an AIR, we will use 3%. If the actual performance exceeds the AIR, your variable annuity payments will increase. Similarly, if the actual investment performance is less than the AIR, your variable annuity payments will decrease. Your variable annuity payment is based on ANNUITY UNITS. An annuity unit is an accounting device used to calculate the dollar amount of annuity payments. (For more information, see "Variable Annuity Payments" below.) When selecting an AIR, you should keep in mind that a lower AIR will result in a lower initial variable annuity payment, but subsequent variable annuity payments will increase more rapidly or decline more slowly as changes occur in the investment experience of the investment portfolios. On the other hand, a higher AIR will result in a higher initial variable annuity payment than a lower AIR, but later variable annuity payments will rise more slowly or fall more rapidly. In the event of a transfer during the income phase from a variable annuity payment option to a fixed annuity payment option, this may result in a reduction in the amount of annuity payments. If you choose to have any portion of your annuity payments be a fixed annuity payment, the dollar amount of each fixed annuity payment will not change. Annuity payments are made monthly (or at any frequency permitted under the contract) unless you have less than $5,000 to apply toward an annuity option. In that case, we may provide your annuity payment in a single lump sum instead of annuity payments. Likewise, if your annuity payments would be or become less than $100 a month, we have the right to change the frequency of payments so that your annuity payments are at least $100. ANNUITY OPTIONS You can choose among income plans. We call those ANNUITY OPTIONS. We ask you to choose an annuity option when you purchase the contract. You can change it at any time before the annuity date with 30 days notice to us. If you do not choose an annuity option at the time you purchase the contract, Option 2, which provides a life annuity with 10 years of guaranteed annuity payments, will automatically be applied. You can choose one of the following annuity options or any other annuity option acceptable to us. After annuity payments begin, you cannot change the annuity option. OPTION 1. LIFE ANNUITY. Under this option, we will make annuity payments so long as the annuitant is alive. We stop making annuity payments after the annuitant's death. It is possible under this option to receive only one annuity payment if the annuitant dies before the due date of the second payment or to receive only two annuity payments if the annuitant dies before the due date of the third payment, and so on. OPTION 2. LIFE ANNUITY WITH 10 YEARS OF ANNUITY PAYMENTS GUARANTEED. Under this option, we will make annuity payments so long as the annuitant is alive. If, 37 when the annuitant dies, we have made annuity payments for less than ten years, we will then continue to make annuity payments for the rest of the 10 year period. OPTION 3. JOINT AND LAST SURVIVOR ANNUITY. Under this option, we will make annuity payments so long as the annuitant and a second person (joint annuitant) are both alive. When either annuitant dies, we will continue to make annuity payments, so long as the survivor continues to live. We will stop making annuity payments after the last survivor's death. OPTION 4. JOINT AND LAST SURVIVOR ANNUITY WITH 10 YEARS OF ANNUITY PAYMENTS GUARANTEED. Under this option, we will make annuity payments so long as the annuitant and a second person (joint annuitant) are both alive. When either annuitant dies, we will continue to make annuity payments, so long as the survivor continues to live. If, at the last death of the annuitant and the joint annuitant, we have made annuity payments for less than ten years, we will then continue to make annuity payments for the rest of the 10 year period. OPTION 5. PAYMENTS FOR A DESIGNATED PERIOD. We currently offer an annuity option under which fixed or variable monthly annuity payments are made for a selected number of years as approved by us, currently not less than 10 years. This annuity option may be limited or withdrawn by us in our discretion. We may require proof of age or sex of an annuitant before making any annuity payments under the contract that are measured by the annuitant's life. If the age or sex of the annuitant has been misstated, the amount payable will be the amount that the account value would have provided at the correct age or sex. Once annuity payments have begun, any underpayments will be made up in one sum with the next annuity payment. Any overpayments will be deducted from future annuity payments until the total is repaid. You may withdraw the commuted value of the payments remaining under the variable Payments for a Designated Period annuity option (Option 5). You may not commute the fixed Payments for a Designated Period annuity option or any option involving a life contingency, whether fixed or variable, prior to the death of the last surviving annuitant. Upon the death of the last surviving annuitant, the beneficiary may choose to continue receiving income payments or to receive the commuted value of the remaining guaranteed payments. For variable annuity options, the calculation of the commuted value will be done using the AIR applicable to the contract. (See "Annuity Payments" above.) For fixed annuity options, the calculation of the commuted value will be done using the then current annuity option rates. There may be tax consequences resulting from the election of an annuity payment option containing a commutation feature (I.E., an annuity payment option that permits the withdrawal of a commuted value). (See "Federal Income Tax Status.") Due to underwriting or Internal Revenue Code considerations, there may be limitations on payments to the survivor under Options 3 and 4 and/or the duration of the guarantee period under Options 2, 4, and 5. In addition to the annuity options described above, we may offer an additional payment option that would allow your beneficiary to take distribution of the account value over a period not extending beyond his or her life expectancy. Under this option, annual distributions would not be made in the form of an annuity, but would be calculated in a manner similar to the calculation of required minimum distributions from IRAs. (See "Federal Income Tax Status.") We intend to make this payment option available to both tax qualified and non-tax qualified contracts. In the event that you purchased the contract as a tax qualified contract, you must take distribution of the account value in accordance with the minimum required distribution rules set forth in applicable tax law. (See "Federal Income Tax Status.") Under certain circumstances, you may satisfy those requirements by electing an annuity option. You may choose any death benefit available under the contract, but certain other contract provisions and programs will not be available. Upon your death, if annuity payments have already begun, the death benefit would be required to be distributed to your beneficiary at least as rapidly as under the method of distribution in effect at the time of your death. VARIABLE ANNUITY PAYMENTS The Adjusted Contract Value (the account value, less any applicable premium taxes, account fee, and any prorated rider charge) is determined on the annuity calculation date, which is a business day no more than five (5) business days before the annuity date. The first variable annuity payment will be based upon the Adjusted Contract Value, the annuity option elected, the annuitant's age and sex, and the appropriate variable annuity option table. If, as of the annuity calculation date, the then current variable annuity option rates applicable to this class of contracts provide a 38 first annuity payment greater than that which is guaranteed under the same annuity option under this contract, the greater payment will be made. The dollar amount of variable annuity payments after the first payment is determined as follows: o The dollar amount of the first variable annuity payment is divided by the value of an annuity unit for each applicable investment portfolio as of the annuity calculation date. This establishes the number of annuity units for each payment. The number of annuity units for each applicable investment portfolio remains fixed during the annuity period, provided that transfers among the subaccounts will be made by converting the number of annuity units being transferred to the number of annuity units of the subaccount to which the transfer is made, and the number of annuity units will be adjusted for transfers to a fixed annuity option. Please see the Statement of Additional Information for details about making transfers during the Annuity Phase. o The fixed number of annuity units per payment in each investment portfolio is multiplied by the annuity unit value for that investment portfolio for the business day for which the annuity payment is being calculated. This result is the dollar amount of the payment for each applicable investment portfolio, less any account fee. The account fee will be deducted pro rata out of each annuity payment. o The total dollar amount of each variable annuity payment is the sum of all investment portfolio variable annuity payments. ANNUITY UNIT. The initial annuity unit value for each investment portfolio of the Separate Account was set by us. The subsequent annuity unit value for each investment portfolio is determined by multiplying the annuity unit value for the immediately preceding business day by the net investment factor (see the Statement of Additional Information for a definition) for the investment portfolio for the current business day and multiplying the result by a factor for each day since the last business day which represents the daily equivalent of the AIR you elected. FIXED ANNUITY PAYMENTS The Adjusted Contract Value (defined above under "Variable Annuity Payments") on the day immediately preceding the annuity date will be used to determine a fixed annuity payment. The annuity payment will be based upon the annuity option elected and the appropriate annuity option table. If, as of the annuity calculation date, the then current annuity option rates applicable to this class of contracts provide an annuity payment greater than that which is guaranteed under the same annuity option under this contract, the greater payment will be made. You may not make a transfer from the fixed annuity option to the variable annuity option. 6. ACCESS TO YOUR MONEY You (or in the case of a death benefit, your beneficiary) can have access to the money in your contract: (1) by making a withdrawal (either a partial or a complete withdrawal); (2) by electing to receive annuity payments; or (3) when a death benefit is paid to your beneficiary. Under most circumstances, withdrawals can only be made during the accumulation phase. You may establish a withdrawal plan under which you can receive substantially equal periodic payments in order to comply with the requirements of Sections 72(q) or (t) of the Code. Premature modification or termination of such payments may result in substantial penalty taxes. (See "Federal Income Tax Status.") When you make a complete withdrawal, you will receive the withdrawal value of the contract. The withdrawal value of the contract is the account value of the contract at the end of the business day when we receive a written request for a withdrawal: o less any applicable withdrawal charge; o less any premium or other tax; o less any account fee; and o less any applicable pro rata GMIB, GWB, GMAB or Enhanced Death Benefit rider charge. Unless you instruct us otherwise, any partial withdrawal will be made pro rata from the fixed account, the EDCA account and the investment portfolio(s) you selected. Under most circumstances the amount of any partial withdrawal must be for at least $500, or your entire interest in the investment portfolio, fixed account or EDCA account. We require that after a partial withdrawal is made you keep at least $2,000 in the contract. If the withdrawal would result in the account value being less than $2,000 after a partial 39 withdrawal, we will treat the withdrawal request as a request for a full withdrawal. We will pay the amount of any withdrawal from the Separate Account within seven days of when we receive the request in good order unless the suspension of payments or transfers provision is in effect. We may withhold payment of withdrawal proceeds if any portion of those proceeds would be derived from a contract owner's check that has not yet cleared (I.E., that could still be dishonored by the contract owner's banking institution). We may use telephone, fax, Internet or other means of communication to verify that payment from the contract owner's check has been or will be collected. We will not delay payment longer than necessary for us to verify that payment has been or will be collected. Contract owners may avoid the possibility of delay in the disbursement of proceeds coming from a check that has not yet cleared by providing us with a certified check. How to withdraw all or part of your account value: o You must submit a request to our Annuity Service Center. (See "Other Information - Requests and Elections.") o You must provide satisfactory evidence of terminal illness or confinement to a nursing home if you would like to have the withdrawal charge waived. (See "Expenses - Reduction or Elimination of the Withdrawal Charge.") o You must state in your request whether you would like to apply the proceeds to a payment option (otherwise you will receive the proceeds in a lump sum and may be taxed on them). o We have to receive your withdrawal request in our Annuity Service Center prior to the annuity date or owner's death. There are limits to the amount you can withdraw from certain qualified plans including Qualified and TSA plans. (See "Federal Income Tax Status.") INCOME TAXES, TAX PENALTIES AND CERTAIN RESTRICTIONS MAY APPLY TO ANY WITHDRAWAL YOU MAKE. SYSTEMATIC WITHDRAWAL PROGRAM You may elect the Systematic Withdrawal Program at any time. We do not assess a charge for this program. This program provides an automatic payment to you of up to 10% of your total purchase payments each year. You can receive payments monthly or quarterly, provided that each payment must amount to at least $100 (unless we consent otherwise). We reserve the right to change the required minimum systematic withdrawal amount. If the New York Stock Exchange is closed on a day when the withdrawal is to be made, we will process the withdrawal on the next business day. While the Systematic Withdrawal Program is in effect you can make additional withdrawals. However, such withdrawals plus the systematic withdrawals will be considered when determining the applicability of any withdrawal charge. (For a discussion of the withdrawal charge, see "Expenses" above.) INCOME TAXES, TAX PENALTIES AND CERTAIN RESTRICTIONS MAY APPLY TO SYSTEMATIC WITHDRAWALS. SUSPENSION OF PAYMENTS OR TRANSFERS We may be required to suspend or postpone payments for withdrawals or transfers for any period when: o the New York Stock Exchange is closed (other than customary weekend and holiday closings); o trading on the New York Stock Exchange is restricted; o an emergency exists, as determined by the Securities and Exchange Commission, as a result of which disposal of shares of the investment portfolios is not reasonably practicable or we cannot reasonably value the shares of the investment portfolios; or o during any other period when the Securities and Exchange Commission, by order, so permits for the protection of owners. We have reserved the right to defer payment for a withdrawal or transfer from the fixed account for the period permitted by law but not for more than six months. Federal laws designed to counter terrorism and prevent money laundering might, in certain circumstances, require us to block an owner's ability to make certain transactions and thereby refuse to accept any requests for transfers, withdrawals, surrenders, or death benefits until instructions are received from the appropriate regulator. We may also be required to provide additional information about you and your contract to government regulators. 40 7. LIVING BENEFITS OVERVIEW OF LIVING BENEFIT RIDERS We offer a suite of optional living benefit riders that, for certain additional charges, offer protection against market risk (the risk that your investments may decline in value or underperform your expectations). Only one of these riders may be elected, and the rider must be elected at contract issue. These optional riders are described briefly below. Please see the more detailed description that follows for important information on the costs, restrictions and availability of each optional rider. We offer three types of Living Benefit riders: Guaranteed Income Benefits -------------------------- o Guaranteed Minimum Income Benefit Plus (GMIB Plus I and GMIB Plus II) o Guaranteed Minimum Income Benefit (GMIB I and GMIB II) Our guaranteed income benefit riders are designed to allow you to invest your account value in the market while at the same time assuring a specified guaranteed level of minimum fixed annuity payments if you elect the income phase. The fixed annuity payment amount is guaranteed regardless of investment performance or the actual account value at the time you annuitize. Prior to exercising the rider and annuitizing your contract, you may make withdrawals up to a maximum level specified in the rider and still maintain the benefit amount. Guaranteed Withdrawal Benefits ------------------------------ o Lifetime Withdrawal Guarantee (LWG I and LWG II) o Enhanced Guaranteed Withdrawal Benefit (Enhanced GWB) o Guaranteed Withdrawal Benefit (GWB I) The GWB riders are designed to guarantee that at least the entire amount of purchase payments you make will be returned to you through a series of withdrawals without annuitizing, regardless of investment performance, as long as withdrawals in any contract year do not exceed the maximum amount allowed under the rider. With the LWG riders, you get the same benefits, but in addition, if you make your first withdrawal on or after the date you reach age 59 1/2, you are guaranteed income without annuitizing for your life (and the life of your spouse, if the Joint Life version of the rider was elected), even after the entire amount of purchase payments has been returned. Guaranteed Asset Accumulation Benefit ------------------------------------- o Guaranteed Minimum Accumulation Benefit (GMAB) The GMAB is designed to guarantee that your account value will not be less than a minimum amount at the end of the 10-year waiting period. The amount of the guarantee depends on which of three permitted investment portfolios you select. GUARANTEED INCOME BENEFITS At the time you buy the contract, you may elect a guaranteed income benefit rider, called a Guaranteed Minimum Income Benefit (GMIB), for an additional charge. Each version of these riders is designed to guarantee a predictable, minimum level of fixed annuity payments, regardless of investment performance during the accumulation phase. HOWEVER, IF APPLYING YOUR ACTUAL ACCOUNT VALUE AT THE TIME YOU ANNUITIZE THE CONTRACT TO THEN CURRENT ANNUITY PURCHASE RATES (OUTSIDE OF THE RIDER) PRODUCES HIGHER INCOME PAYMENTS, YOU WILL RECEIVE THE HIGHER PAYMENTS, AND THUS YOU WILL HAVE PAID FOR THE RIDER EVEN THOUGH IT WAS NOT USED. Also, prior to exercising the rider, you may make specified withdrawals that reduce your income base (as explained below) during the accumulation phase and still leave the rider guarantees intact, provided the conditions of the rider are met. Your registered representative can provide you an illustration of the amounts you would receive, with or without withdrawals, if you exercised the rider. There are four versions of the GMIB available with this contract, A MAXIMUM OF TWO OF WHICH ARE OFFERED IN ANY PARTICULAR STATE: o GMIB Plus II o GMIB Plus I o GMIB II o GMIB I Additionally, there may be versions of each rider that vary by issue date and state availability. Please check with your registered representative regarding which versions are available in your state. You may not have this benefit and a 41 GWB or GMAB rider in effect at the same time. Once elected, the rider cannot be terminated except as discussed below. FACTS ABOUT GUARANTEED INCOME BENEFIT RIDERS INCOME BASE AND GMIB ANNUITY PAYMENTS. Under all versions of the GMIB, we calculate an "income base" (as described below) that determines, in part, the minimum amount you receive as an income payment upon exercising the GMIB rider and annuitizing the contract. IT IS IMPORTANT TO RECOGNIZE THAT THIS INCOME BASE IS NOT AVAILABLE FOR CASH WITHDRAWALS AND DOES NOT ESTABLISH OR GUARANTEE YOUR ACCOUNT VALUE OR A MINIMUM RETURN FOR ANY INVESTMENT PORTFOLIO. After a minimum 10-year waiting period, and then only within 30 days following a contract anniversary, you may exercise the rider. We then will apply the income base calculated at the time of exercise to the conservative GMIB Annuity Table (as described below) specified in the rider in order to determine your minimum guaranteed lifetime fixed monthly annuity payments (your actual payment may be higher than this minimum if, as discussed above, the base contract under its terms would provide a higher payment). THE GMIB ANNUITY TABLE. The GMIB Annuity Table is specified in the rider. This table is calculated based on the Annuity 2000 Mortality Table with a 7-year age set back with interest of 2.5% per annum. As with other pay-out types, the amount you receive as an income payment also depends on your age, your sex, and the annuity option you select. For GMIB Plus II, the annuity rates for attained ages 86 to 90 are the same as those for attained age 85. The annuity rates in the GMIB Annuity Table are conservative and a withdrawal charge may be applicable, so the amount of guaranteed minimum lifetime income that the GMIB produces may be less than the amount of annuity income that would be provided by applying your account value on your annuity date to then-current annuity purchase rates. If you exercise a GMIB rider, your annuity payments will be the greater of: o the annuity payment determined by applying the amount of the income base to the GMIB Annuity Table, or o the annuity payment determined for the same annuity option in accordance with the base contract. (See "Annuity Payments (The Income Phase).") If you choose not to receive annuity payments as guaranteed under the GMIB, you may elect any of the annuity options available under the contract. OWNERSHIP. If the owner is a natural person, the owner must be the annuitant. If a non-natural person owns the contract, then annuitant will be considered the owner in determining the income base and GMIB annuity payments. If joint owners are named, the age of the older will be used to determine the income base and GMIB annuity payments. GMIB, QUALIFIED CONTRACTS AND DECEDENT CONTRACTS. The GMIB may have limited usefulness in connection with a Qualified Contract, such as an IRA (see "Federal Income Tax Status - Taxation of Qualified Contracts"), in circumstances where, due to the ten-year waiting period after purchase (and, for the GMIB Plus II and GMIB Plus I, after an Optional Step-Up/Optional Reset) the owner is unable to exercise the rider until after the required beginning date of required minimum distributions under the contract. In such event, required minimum distributions received from the contract during the 10-year waiting period will have the effect of reducing the income base either on a proportionate or dollar for dollar basis, as the case may be. This may have the effect of reducing or eliminating the value of annuity payments under the GMIB. You should consult your tax adviser prior to electing a GMIB rider. Additionally, the GMIB is not available for purchase by a beneficiary under a decedent's Non-Qualified Contract (see "Federal Income Tax Status - Taxation of Non-Qualified Contracts") or IRA (or where otherwise offered, under any other contract which is being "stretched" by a beneficiary after the death of the owner or after the death of the annuitant in certain cases). The GMIB benefit may not be exercised until 10 years after purchase (and, for the GMIB Plus II and GMIB Plus I, after an Optional Step-Up/ Optional Reset), and the benefit provides guaranteed monthly fixed income payments for life (or joint lives, if applicable), with payments guaranteed for 10 years. However, the tax rules require distributions prior to the end of the 10-year waiting period, commencing generally in the year after the owner's death, and also prohibit payments for as long as the beneficiary's life in certain circumstances. (See Appendix D for examples of the GMIB.) 42 DESCRIPTION OF GMIB PLUS II In states where approved, the GMIB Plus II rider is available only for owners up through age 78, and you can only elect the GMIB Plus II at the time you purchase the contract. The GMIB Plus II may be exercised after a 10-year waiting period and then only within 30 days following a contract anniversary, provided that the exercise must occur no later than the 30-day period following the contract anniversary on or following the owner's 90th birthday. INCOME BASE. The INCOME BASE is the greater of (a) or (b) below. (a) Highest Anniversary Value: On the issue date, the "Highest Anniversary Value" is equal to your initial purchase payment. Thereafter, the Highest Anniversary Value will be increased by subsequent purchase payments and reduced proportionately by the percentage reduction in account value attributable to each subsequent withdrawal (including any applicable withdrawal charge). On each contract anniversary prior to the owner's 81st birthday, the Highest Anniversary Value will be recalculated and set equal to the greater of the Highest Anniversary Value before the recalculation or the account value on the date of the recalculation. The Highest Anniversary Value does not change after the contract anniversary immediately preceding the owner's 81st birthday, except that it is increased for each subsequent purchase payment and reduced proportionally by the percentage reduction in account value attributable to each subsequent withdrawal (including any applicable withdrawal charge). (b) Annual Increase Amount: On the issue date, the "Annual Increase Amount" is equal to your initial purchase payment. (For these purposes, all purchase payments credited within 120 days of the date we issued the contract will be treated as if they were received on the date we issue the contract.) Thereafter, the Annual Increase Amount is equal to (i) less (ii), where: (i) is purchase payments accumulated at the annual increase rate. The annual increase rate is 6% per year through the contract anniversary on or following the owner's 90th birthday and 0% thereafter; and (ii) is withdrawal adjustments accumulated at the annual increase rate. Withdrawal adjustments in a contract year are determined according to (1) or (2) as defined below: (1) The withdrawal adjustment for each withdrawal in a contract year is the value of the Annual Increase Amount immediately prior to the withdrawal multiplied by the percentage reduction in account value attributed to that withdrawal (including any applicable withdrawal charge); or (2) If total withdrawals in a contract year are 6% or less of the Annual Increase Amount on the issue date or on the prior contract anniversary after the first contract year, and if these withdrawals are paid to you (or the annuitant if the contract is owned by a non-natural person) or to another payee we agree to, the total withdrawal adjustments for that contract year will be set equal to the dollar amount of total withdrawals (including any applicable withdrawal charge) in that contract year. These withdrawal adjustments will replace the withdrawal adjustments defined in (1) above and be treated as though the corresponding withdrawals occurred at the end of that contract year. (See section (1) of Appendix D for examples of the calculation of the withdrawal adjustment.) In determining the GMIB Plus II annuity income, an amount equal to the withdrawal charge that would be assessed upon a complete withdrawal and the amount of any premium and other taxes that may apply will be deducted from the income base. OPTIONAL STEP-UP. On each contract anniversary as permitted, you may elect to reset the Annual Increase Amount to the account value. An Optional Step-Up may be beneficial if your account value has grown at a rate above the 6% accumulation rate on the Annual Increase Amount. HOWEVER, RESETTING THE ANNUAL INCREASE AMOUNT WILL INCREASE YOUR WAITING PERIOD FOR EXERCISING THE GMIB PLUS II BY RESTARTING THE 10-YEAR WAITING PERIOD, AND WE MAY RESET THE GMIB PLUS II RIDER CHARGE TO A RATE WE SHALL DETERMINE THAT DOES NOT EXCEED THE MAXIMUM OPTIONAL STEP-UP CHARGE (1.50%), PROVIDED THAT THIS RATE WILL NOT EXCEED THE RATE CURRENTLY APPLICABLE TO THE SAME 43 RIDER AVAILABLE FOR NEW CONTRACT PURCHASES AT THE TIME OF THE OPTIONAL STEP-UP. An Optional Step-Up is permitted only if: (1) the account value exceeds the Annual Increase Amount immediately before the reset; and (2) the owner (or oldest joint owner or annuitant if the contract is owned by a non-natural person) is not older than age 80 on the date of the Optional Step-Up. You may elect either: 1) a one-time Optional Step-Up at any contract anniversary provided the above requirements are met, or 2) Optional Step-Ups to occur under the Automatic Annual Step-Up. If you elect Automatic Annual Step-Ups, on any contract anniversary while this election is in effect, the Annual Increase Amount will reset to the account value automatically, provided the above requirements are met. The same conditions described above will apply to each Automatic Step-Up. You may discontinue this election at any time by notifying us in writing, at our Annuity Service Center (or by any other method acceptable to us), at least 30 days prior to the contract anniversary on which a reset may otherwise occur. Otherwise, it will remain in effect through the seventh contract anniversary following the date you make this election, at which point you must make a new election if you want Automatic Annual Step-Ups to continue. If you discontinue or do not re-elect the Automatic Annual Step-Ups, no Optional Step-Up will occur automatically on any subsequent contract anniversary unless you make a new election under the terms described above. (If you discontinue Automatic Annual Step-Ups, the GMIB Plus II rider (and the rider charge) will continue, and you may choose to elect a one time Optional Step-Up or reinstate Automatic Annual Step-Ups as described above.) We must receive your request to exercise the Optional Step-Up in writing, at our Annuity Service Center, or any other method acceptable to us. We must receive your request prior to the contract anniversary for an Optional Step-Up to occur on that contract anniversary. The Optional Step-Up will: (1) reset the Annual Increase Amount to the account value on the contract anniversary following the receipt of an Optional Step-Up election; (2) reset the GMIB Plus II waiting period to the tenth contract anniversary following the date the Optional Step-Up took effect; and (3) we may reset the GMIB Plus II rider charge to a rate we shall determine that does not exceed the Maximum Optional Step-Up Charge (1.50%), provided that this rate will not exceed the rate currently applicable to the same rider available for new contract purchases at the time of the Optional Step-Up. On the date of the Optional Step-Up, the account value on that day will be treated as a single purchase payment received on the date of the step-up for purposes of determining the Annual Increase Amount after the reset. All purchase payments and withdrawal adjustments previously used to calculate the Annual Increase Amount will be set equal to zero on the date of the step-up. INVESTMENT ALLOCATION RESTRICTIONS. If you elect the GMIB Plus II, there are certain investment allocation restrictions. (See "Purchase - Investment Allocation Restrictions for Certain Riders.") If you elect the GMIB Plus II, you may not particpate in the Dollar Cost Averaging (DCA) program. However, you may elect to participate in the Enhanced Dollar Cost Averaging (EDCA) program, provided that your destination investment portfolios are selected in accordance with the investment allocation restrictions. GUARANTEED PRINCIPAL OPTION. On each contract anniversary starting with the tenth contract anniversary and through the contract anniversary prior to the owner's 91st birthday, you may exercise the Guaranteed Principal Option. If the owner is a non-natural person, the annuitant's age is the basis for determining the birthday. If there are joint owners, the age of the oldest owner is used for determining the birthday. We must receive your request to exercise the Guaranteed Principal Option in writing, or any other method that we agree to, within 30 days following the applicable contract anniversary. The Guaranteed Principal Option will take effect at the end of this 30-day period following that contract anniversary. By exercising the Guaranteed Principal Option, you elect to receive an additional amount to be added to your account value intended to restore your initial investment in the contract, in lieu of receiving GMIB payments. The additional amount is called the Guaranteed Principal Adjustment and is equal to (a) minus (b) where: (a) is purchase payments credited within 120 days of the date we issued the contract (reduced proportionately 44 by the percentage reduction in account value attributable to each partial withdrawal (including applicable withdrawal charges) prior to the exercise of the Guaranteed Principal Option) and (b) the account value on the contract anniversary immediately preceding exercise of the Guaranteed Principal Option. The Guaranteed Principal Option can only be exercised if (a) exceeds (b), as defined above. The Guaranteed Principal Adjustment will be added to each applicable investment portfolio in the ratio the portion of the account value in such investment portfolio bears to the total account value in all investment portfolios. IT IS IMPORTANT TO NOTE THAT ONLY PURCHASE PAYMENTS MADE DURING THE FIRST 120 DAYS THAT YOU HOLD THE CONTRACT ARE TAKEN INTO CONSIDERATION IN DETERMINING THE GUARANTEED PRINCIPAL ADJUSTMENT. IF YOU ANTICIPATE MAKING PURCHASE PAYMENTS AFTER 120 DAYS, YOU SHOULD UNDERSTAND THAT SUCH PAYMENTS WILL NOT INCREASE THE GUARANTEED PRINCIPAL ADJUSTMENT. However, because purchase payments made after 120 days will increase your account value, such payments may have a significant impact on whether or not a Guaranteed Principal Adjustment is due. Therefore, GMIB Plus II may not be appropriate for you if you intend to make additional purchase payments after the 120-day period and are purchasing the GMIB Plus II for this feature. The Guaranteed Principal Adjustment will never be less than zero. IF THE GUARANTEED PRINCIPAL OPTION IS EXERCISED, THE GMIB PLUS II RIDER WILL TERMINATE AS OF THE DATE THE OPTION TAKES EFFECT AND NO ADDITIONAL GMIB CHARGES WILL APPLY THEREAFTER. The variable annuity contract, however, will continue, and the GMIB Plus II investment allocation restrictions, described above, will no longer apply. EXERCISING THE GMIB PLUS II RIDER. If you exercise the GMIB Plus II, you must elect to receive annuity payments under one of the following fixed annuity options: (1) Life annuity with 10 years of annuity payments guaranteed. For annuitization ages over 79, the guaranteed component of the life annuity is reduced as follows:
Age at Annuitization Guarantee Period --------------------- ----------------- 80 9 81 8 82 7 83 6 84 - 90 5
(2) Joint and last survivor annuity with 10 years of annuity payments guaranteed. Based on federal tax rules, this option is not available for Qualified Contracts where the difference in ages of the joint annuitants is greater than 10 years. (See "Annuity Payments (The Income Phase).") These options are described in the contract and the GMIB Plus II rider. The GMIB Annuity Table is specified in the rider. This table is calculated based on the Annuity 2000 Mortality Table with a 7-year age set back with interest of 2.5% per annum. As with other payout types, the amount you receive as an income payment also depends on your age, your sex, and the annuity option you select. For GMIB Plus II, the annuity rates for attained ages 86 to 90 are the same as those for attained age 85. THE ANNUITY RATES IN THE GMIB ANNUITY TABLE ARE CONSERVATIVE AND A WITHDRAWAL CHARGE MAY BE APPLICABLE, SO THE AMOUNT OF GUARANTEED MINIMUM LIFETIME INCOME THAT THE GMIB PRODUCES MAY BE LESS THAN THE AMOUNT OF ANNUITY INCOME THAT WOULD BE PROVIDED BY APPLYING YOUR ACCOUNT VALUE ON YOUR ANNUITY DATE TO THEN-CURRENT ANNUITY PURCHASE RATES. If you exercise the GMIB Plus II, your annuity payments will be the greater of: o the annuity payment determined by applying the amount of the income base to the GMIB Annuity Table, or o the annuity payment determined for the same annuity option in accordance with the base contract. (See "Annuity Payments (The Income Phase).") 45 If the amount of the guaranteed minimum lifetime income that the GMIB Plus II produces is less than the amount of annuity income that would be provided by applying contract value on the annuity date to the then-current annuity purchase rates, then you would have paid for a benefit that you did not use. If you take a full withdrawal of your account value, your contract is terminated by us due to its small account value and inactivity (see "Purchase - Purchase Payments"), or your contract lapses and there remains any income base, we will commence making income payments within 30 days of the date of the full withdrawal, termination or lapse. In such cases, your income payments under this benefit, if any, will be determined using the income base and any applicable withdrawal adjustment that was taken on account of the withdrawal, termination or lapse. The GMIB purchase payout rates are enhanced under the following circumstances. If: o you take no withdrawals before your 60th birthday; o your account value is fully withdrawn at or after your 60th birthday and there is an income base remaining; and o the annuity option you select is the single life annuity with 10 years of annuity payments guaranteed; then the annual annuity payments under the GMIB Plus II rider will equal or exceed 6% of the Annual Increase Amount (calculated on the date the payments are determined). If you choose not to receive annuity payments as guaranteed under the GMIB Plus II, you may elect any of the annuity options available under the contract. TERMINATING THE GMIB PLUS II RIDER. Except as otherwise provided in the GMIB Plus II rider, the GMIB Plus II will terminate upon the earliest of: a) The 30th day following the contract anniversary on or following your 90th birthday; b) The date you make a complete withdrawal of your account value; c) The date you elect to receive annuity payments under the contract and you do not elect to receive payments under the GMIB; d) Death of the owner or joint owner (unless the spouse (age 89 or younger) is the beneficiary and elects to continue the contract), or death of the annuitant if a non-natural person owns the contract; e) A change for any reason of the owner or joint owner or the annuitant, if a non-natural person owns the contract, unless we agree otherwise; f) The effective date of the Guaranteed Principal Option; or g) The date you assign your contract, subject to our administrative procedures. When the GMIB Plus II rider terminates, the corresponding GMIB Plus II rider charge terminates and the GMIB Plus II investment allocation restrictions no longer apply. (See Appendix D for examples illustrating the operation of the GMIB Plus II.) DESCRIPTION OF GMIB PLUS I In states where the GMIB Plus I has been approved and the GMIB Plus II has not been approved, the GMIB Plus I is available only for owners up through age 75, and you can only elect GMIB Plus I at the time you purchase the contract. GMIB Plus I may be exercised after a 10-year waiting period and then only within 30 days following a contract anniversary, provided that the exercise must occur no later than the 30-day period following the contract anniversary on or following the owner's 85th birthday. GMIB Plus I is otherwise identical to GMIB Plus II, with the following exceptions: (1) The GMIB Plus I Income Base is calculated as described above, except that the annual increase rate is 6% per year through the contract anniversary on or following the owner's 85th birthday and 0% thereafter. (2) An "Optional Step-Up" under the GMIB Plus II rider is referred to as an "Optional Reset" under the GMIB Plus I rider. An Optional Reset is permitted only if: (a) the account value exceeds the Annual Increase Amount immediately before the reset; and (b) the owner (or oldest joint owner or annuitant if the contract is owned by a non-natural person) is not older than age 75 on the date of the Optional Reset. (3) If your income base is increased due to an Optional Reset under the GMIB Plus I rider, we may increase the rider charge to the charge applicable to contract purchases of the same rider at the time of the increase, but to no more than a maximum of 1.50%. (4) The Guaranteed Principal Option may be exercised on 46 each contract anniversary starting with the tenth contract anniversary and through the contract anniversary prior to the owner's 86th birthday. (5) We reserve the right to prohibit an Optional Reset if we no longer offer this benefit for this class of contract. We are waiving this right with respect to purchasers of the contract offered by this prospectus who elect or have elected the GMIB Plus I rider and will allow Optional Resets by those purchasers even if this benefit is no longer offered for this class of contract. (6) If you exercise the GMIB Plus I rider under the life annuity with 10 years of annuity payments guaranteed option, the Guarantee Period is five years for ages 84 - 85. (7) Termination provision g) above does not apply, and the following replaces termination provision a), above: The 30th day following the contract anniversary on or following your 85th birthday. and the following replaces termination provision d), above: Death of the owner or joint owner (unless the spouse (age 84 or younger) is the beneficiary and elects to continue the contract), or death of the annuitant if a non-natural person owns the contract. (8) If you elect the GMIB Plus I, you are limited to allocating your purchase payments and account value among the fixed account and the following investment portfolios: (a) the MetLife Defensive Strategy Portfolio, (b) the MetLife Moderate Strategy Portfolio, (c) the MetLife Balanced Strategy Portfolio, (d) the MetLife Growth Strategy Portfolio, (e) the American Funds Moderate Allocation Portfolio, (f) the American Funds Balanced Allocation Portfolio, (g) the American Funds Growth Allocation Portfolio, (h) the Met/Franklin Templeton Founding Strategy Portfolio, or (i) the BlackRock Money Market Portfolio. You may also elect to participate in the EDCA program, provided that your destination investment portfolios are one or more of the above-listed investment portfolios. For contracts issued before July 16, 2007, the enhanced GMIB purchase payout ----------------------------------------- rates described under "Exercising the GMIB Plus II Rider" will not be applied. For contracts issued before February 26, 2007, we offered a version of the GMIB --------------------------------------------- Plus I that is no longer available. Under this prior version, when we calculate the Annual Increase Amount: (1) the annual increase rate is 5% per year through the contract anniversary on or following the owner's 85th birthday; and (2) the amount of total withdrawal adjustments for a contract year will be set equal to the dollar amount of total withdrawals in such contract year, provided that such total withdrawals do not exceed 5% of the Annual Increase Amount on the issue date or on the prior contract anniversary after the first contract year. The rider charge for this prior version of the GMIB Plus I is 0.75% of the income base (with a maximum charge of 1.50% of the income base applicable upon the exercise of the Optional Reset feature). (See Appendix D for examples of the GMIB.) For contracts issued before February 27, 2006, you may elect an Optional Reset --------------------------------------------- under the GMIB Plus I as described above, except that: 1) you may elect an Optional Reset on any contract anniversary only on or after the third contract anniversary, and you may then elect an Optional Reset at any subsequent contract anniversary only if it has been at least three years since the last Optional Reset; and 2) you are required to affirmatively elect an Optional Reset in accordance with the procedures described above; the Automatic Annual Step-Up feature is not available. By endorsement, we have enhanced your contract to change the frequency of the Optional Resets from every third contract anniversary to every contract anniversary. You will also be able to elect Automatic Annual Step-Ups, as described above. DESCRIPTION OF GMIB II In states where approved, GMIB II is available only for owners up through age 75, and you can only elect GMIB II at the time you purchase the contract. GMIB II may be exercised after a 10-year waiting period and then only within 30 days following a contract anniversary, provided that the exercise must occur no later than the 30-day period following the contract anniversary on or following the owner's 85th birthday. GMIB II is otherwise identical to the GMIB Plus II, with the following exceptions: 47 (1) The additional charge for GMIB II is lower (see "Expenses-Guaranteed Minimum Income Benefit-Rider Charge"). (2) The GMIB II Income Base is calculated as described above, except that, for purposes of calculating the Annual Increase Amount: a. the annual increase rate is 5% per year through the contract anniversary on or following the owner's 85th birthday and 0% thereafter, and b. the amount of total withdrawal adjustments for a contract year as calculated in paragraph (b)(ii)(2) of the "Income Base" section of "Description of GMIB Plus II" above will be set equal to the dollar amount of total withdrawals (including any applicable withdrawal charge) in such contract year provided that such total withdrawals do not exceed 5% of the Annual Increase Amount on the issue date or on the prior contract anniversary after the first contract year. (3) There is no Guaranteed Principal Option. (4) There is no Optional Reset feature. (5) If you exercise the GMIB II rider under the life annuity with 10 years of annuity payments guaranteed option, the Guarantee Period is five years for ages 84 - 85. (6) The following replaces termination provision a), above: The 30th day following the contract anniversary on or following your 85th birthday. (7) The following replaces termination provision d), above: Death of the owner or joint owner (unless the spouse (age 84 or younger) is the beneficiary and elects to continue the contract), or death of the annuitant if a non-natural person owns the contract. (8) The following replaces termination provision e), above: A change for any reason of the owner or joint owner or the annuitant if a non-natural person owns the contract. (9) Termination provisions f) and g), above, do not apply. (10) There are no limitations to how you may allocate your purchase payments and account value among the investment portfolios, and you may participate in the Dollar Cost Averaging (DCA) program. (See Appendix D for examples illustrating the operation of GMIB II.) DESCRIPTION OF GMIB I In states where GMIB I has been approved and GMIB II has not been approved, you can only elect GMIB I at the time you purchase the contract and if you are age 75 or less. Once elected, the rider cannot be terminated except as described below. GMIB I may be exercised after a 10-year waiting period, up through age 85, within 30 days following a contract anniversary. GMIB I is identical to GMIB II, with the following exceptions: (1) The GMIB I Income Base is calculated as described above in "Description of GMIB Plus II-Income Base", except that: a) Withdrawals may be payable as you direct without affecting the withdrawal adjustments; and b) The annual increase rate is 6% per year through the contract anniversary immediately prior to the owner's 81st birthday and 0% thereafter. (2) The following replaces termination provision d), above: Death of the owner or death of the annuitant if a non-natural person owns the contract. (3) If you take a full withdrawal of your account value, your contract is terminated by us due to its small account value and inactivity (see "Purchase - Purchase Payments"), or your contract lapses, the GMIB I rider terminates (even if there remains any income base) and no payments will be made under the rider. We currently waive the contractual requirement that terminates the GMIB I rider in the event of the death of the owner in circumstances where the spouse of the owner elects to continue the contract. (See "Death Benefit - General Death Benefit Provisions.") In such event, the GMIB I rider will automatically continue unless the spouse elects to terminate the rider. We are permanently waiving this requirement with respect to purchasers of the contract offered by this prospectus who have elected GMIB I. GUARANTEED WITHDRAWAL BENEFITS We offer optional guaranteed withdrawal benefit riders for an additional charge. There are four guaranteed withdrawal benefit riders (two versions of the LWG, the Enhanced GWB, and GWB I) available under this contract: o Lifetime Withdrawal Guarantee II (LWG II) o Lifetime Withdrawal Guarantee I (LWG I) 48 o Enhanced Guaranteed Withdrawal Benefit (Enhanced GWB) o Guaranteed Withdrawal Benefit (GWB I) Each of the guaranteed withdrawal benefit riders guarantees that the entire amount of purchase payments you make will be returned to you through a series of withdrawals that you may begin taking immediately or at a later time, provided withdrawals in any contract year do not exceed the maximum amount allowed. This means that, regardless of negative investment performance, you can take specified annual withdrawals until the entire amount of the purchase payments you made during the time period specified in your rider has been returned to you. Moreover, if you make your first withdrawal on or after the date you reach age 59 1/2, the Lifetime Withdrawal Guarantee riders guarantee income, without annuitizing the contract, for your life (and the life of your spouse, if the Joint Life version of the rider was elected, and your spouse elects to continue the contract and is at least age 59 1/2 at continuation), even after the entire amount of purchase payments has been returned. (See "Description of the Lifetime Withdrawal Guarantee II" below.) If you purchase a guaranteed withdrawal benefit rider, you must elect one version at the time you purchase the contract, prior to age 86. A maximum of two guaranteed withdrawal benefit riders are offered in any particular state. Please check with your registered representative regarding which version(s) are available in your state. You may not have this benefit and another living benefit (GMIB or GMAB) or the Enhanced Death Benefit rider in effect at the same time. Once elected, these riders may not be terminated except as stated below. FACTS ABOUT GUARANTEED WITHDRAWAL BENEFIT RIDERS MANAGING WITHDRAWALS. The GWB guarantee may be reduced if your annual withdrawals are greater than the maximum amount allowed, called the Annual Benefit Payment, which is described in more detail below. The GWB does not establish or guarantee an account value or minimum return for any investment portfolio. The Benefit Base (as described below) under the Enhanced GWB and GWB I, and the Remaining Guaranteed Withdrawal Amount (as described below) under the Lifetime Withdrawal Guarantee, cannot be taken as a lump sum. (However, if you cancel the Lifetime Withdrawal Guarantee riders after a waiting period of at least fifteen years, the Guaranteed Principal Adjustment will increase your account value to the purchase payments credited within the first 120 days of the date that we issue the contract, reduced proportionately for any withdrawals. See "Description of the Lifetime Withdrawal Guarantee II- Cancellation and Guaranteed Principal Adjustment" below.) Income taxes and penalties may apply to your withdrawals, and withdrawal charges may apply to withdrawals during the first contract year unless you take the necessary steps to elect to take such withdrawals under a Systematic Withdrawal Program. Withdrawal charges will also apply to withdrawals of purchase payments that exceed the free withdrawal amount. (See "Expenses-Withdrawal Charge.") IF IN ANY CONTRACT YEAR YOU TAKE CUMULATIVE WITHDRAWALS THAT EXCEED THE ANNUAL BENEFIT PAYMENT, THE TOTAL PAYMENTS THAT THE GWB GUARANTEES THAT YOU OR YOUR BENEFICIARY WILL RECEIVE FROM THE CONTRACT OVER TIME MAY BE LESS THAN THE INITIAL GUARANTEED WITHDRAWAL AMOUNT (TOTAL GUARANTEED WITHDRAWAL AMOUNT FOR THE LIFETIME WITHDRAWAL GUARANTEE RIDERS). THIS REDUCTION MAY BE SIGNIFICANT AND MEANS THAT RETURN OF YOUR PURCHASE PAYMENTS MAY BE LOST. THE GWB RIDER CHARGE WILL CONTINUE TO BE DEDUCTED AND CALCULATED BASED ON THE GUARANTEED WITHDRAWAL AMOUNT (TOTAL GUARANTEED WITHDRAWAL AMOUNT FOR THE LIFETIME WITHDRAWAL GUARANTEE RIDERS) UNTIL TERMINATION OF THE RIDER. RIDER CHARGES. If a Lifetime Withdrawal Guarantee rider is in effect, we will continue to assess the GWB rider charge even in the case where your Remaining Guaranteed Withdrawal Amount, as described below, equals zero. However, if the Enhanced GWB or GWB I rider is in effect, we will not continue to assess the GWB rider charge if your Benefit Base, as described below, equals zero. WITHDRAWAL CHARGE. We will apply a withdrawal charge to withdrawals from purchase payments of up to 7% of purchase payments taken in the first seven years following receipt of the applicable purchase payment. (See "Expenses - Withdrawal Charge - Free Withdrawal Amount" and "Access to Your Money - Systematic Withdrawal Program.") 49 TAXES. Withdrawals of taxable amounts will be subject to ordinary income tax and, if made prior to age 59 1/2, a 10% federal tax penalty may apply. TAX TREATMENT. THE TAX TREATMENT OF WITHDRAWALS UNDER THE GWB RIDERS IS UNCERTAIN. IT IS CONCEIVABLE THAT THE AMOUNT OF POTENTIAL GAIN COULD BE DETERMINED BASED ON THE BENEFIT BASE (REMAINING GUARANTEED WITHDRAWAL AMOUNT UNDER THE LIFETIME WITHDRAWAL GUARANTEE RIDERS) AT THE TIME OF THE WITHDRAWAL, IF THE BENEFIT BASE (OR REMAINING GUARANTEED WITHDRAWAL AMOUNT) IS GREATER THAN THE ACCOUNT VALUE (PRIOR TO WITHDRAWAL CHARGES, IF APPLICABLE). THIS COULD RESULT IN A GREATER AMOUNT OF TAXABLE INCOME REPORTED UNDER A WITHDRAWAL AND CONCEIVABLY A LIMITED ABILITY TO RECOVER ANY REMAINING BASIS IF THERE IS A LOSS ON SURRENDER OF THE CONTRACT. CONSULT YOUR TAX ADVISOR PRIOR TO PURCHASE. GWB, LIFETIME WITHDRAWAL GUARANTEE AND DECEDENT CONTRACTS. The Lifetime Withdrawal Guarantee is not available for purchase under a decedent's Non-Qualified Contract (see "Federal Income Tax Status - Taxation of Non-Qualified Contracts") or IRA (or where otherwise offered, under any other contract which is being "stretched" by a beneficiary after the death of the owner or after the death of the annuitant in certain cases). Under the tax rules, such contracts generally require distributions to commence in accordance with tax regulations by the end of the calendar year following the year of the owner's death. However, these required distributions can in certain circumstances exceed the Annual Benefit Payment, and any such excess will have the effect of reducing the lifetime payments under the Lifetime Withdrawal Guarantee. Note that the Enhanced GWB and GWB I riders are not available for purchase by a beneficiary under a decedent's Non-Qualified Contract. (See Appendix E for examples of the GWB riders.) DESCRIPTION OF THE LIFETIME WITHDRAWAL GUARANTEE II TOTAL GUARANTEED WITHDRAWAL AMOUNT. While the Lifetime Withdrawal Guarantee II rider is in effect, we guarantee that you will receive a minimum amount over time. We refer to this minimum amount as the TOTAL GUARANTEED WITHDRAWAL AMOUNT. The initial Total Guaranteed Withdrawal Amount is equal to your initial purchase payment. We increase the Total Guaranteed Withdrawal Amount (up to a maximum of $10,000,000) by each additional purchase payment. If you take a withdrawal that does not exceed the Annual Benefit Payment (see "Annual Benefit Payment" below), then we will not reduce the Total Guaranteed Withdrawal Amount. We refer to this type of withdrawal as a Non-Excess Withdrawal. If, however, you take a withdrawal that results in cumulative withdrawals for the current contract year that exceed the Annual Benefit Payment, then we will reduce the Total Guaranteed Withdrawal Amount in the same proportion that the withdrawal (including any applicable withdrawal charges) reduced the account value. We refer to this type of withdrawal as an Excess Withdrawal. REMAINING GUARANTEED WITHDRAWAL AMOUNT. The REMAINING GUARANTEED WITHDRAWAL AMOUNT is the remaining amount you are guaranteed to receive over time. We increase the Remaining Guaranteed Withdrawal Amount (up to a maximum of $10,000,000) by additional purchase payments. If you take a Non-Excess Withdrawal, we will decrease the Remaining Guaranteed Withdrawal Amount by the amount of the Non-Excess Withdrawal (including any applicable withdrawal charges). If, however, you take an Excess Withdrawal, then we will reduce the Remaining Guaranteed Withdrawal Amount in the same proportion that the withdrawal (including any applicable withdrawal charges) reduces the account value. 7.25% COMPOUNDING INCOME AMOUNT. On each contract anniversary until the earlier of: (a) the date of the second withdrawal from the contract or (b) the tenth contract anniversary, we increase the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount by an amount equal to 7.25% multiplied by the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount before such increase (up to a maximum of $10,000,000). We may also increase the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount by the Automatic Annual Step-Up (discussed below), if that would result in a higher Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount. ANNUAL BENEFIT PAYMENT. The initial ANNUAL BENEFIT PAYMENT is equal to the initial Total Guaranteed Withdrawal Amount multiplied by the 5% Withdrawal Rate (6% Withdrawal Rate if you make your first withdrawal on or after the date you reach age 76). If the Total Guaranteed Withdrawal Amount is later recalculated (for example, because of additional purchase payments, the 50 7.25% Compounding Income Amount, the Automatic Annual Step-Up, or Excess Withdrawals), the Annual Benefit Payment is reset equal to the new Total Guaranteed Withdrawal Amount multiplied by the 5% Withdrawal Rate (6% Withdrawal Rate if you make your first withdrawal on or after the date you reach age 76). IT IS IMPORTANT TO NOTE: o If you take your first withdrawal before the date you reach age 59 1/2, we will continue to pay the Annual Benefit Payment each year until the Remaining Guaranteed Withdrawal Amount is depleted, even if your account value declines to zero. This means if your account value is depleted due to a Non-Excess Withdrawal or the deduction of the rider charge, and your Remaining Guaranteed Withdrawal Amount is greater than zero, we will pay you the remaining Annual Benefit Payment, if any, not yet withdrawn during the contract year that the account value was depleted, and beginning in the following contract year, we will continue paying the Annual Benefit Payment to you each year until your Remaining Guaranteed Withdrawal Amount is depleted. This guarantees that you will receive your purchase payments regardless of market performance so long as you do not take Excess Withdrawals; however, you will not be guaranteed income for the rest of your life. o If you take your first withdrawal on or after the date you reach age 59 1/2, we will continue to pay the Annual Benefit Payment each year for the rest of your life (and the life of your spouse, if the Joint Life version of the rider was elected, and your spouse elects to continue the contract and is at least age 59 1/2 at continuation), even if your Remaining Guaranteed Withdrawal Amount and/or account value declines to zero. This means if your Remaining Guaranteed Withdrawal Amount and/or your account value is depleted due to a Non-Excess Withdrawal or the deduction of the rider charge, we will pay to you the remaining Annual Benefit Payment, if any, not yet withdrawn during that contract year that the account value was depleted, and beginning in the following contract year, we will continue paying the Annual Benefit Payment to you each year for the rest of your life (and your spouse's life, if the Joint Life version of the rider was elected, and your spouse elects to continue the contract and is at least age 59 1/2 at continuation). Therefore, you will be guaranteed income for life. o If you take your first withdrawal on or after the date you reach age 76, your Annual Benefit payment will be set equal to a 6% Withdrawal Rate multiplied by the Total Guaranteed Withdrawal Amount. o IF YOU HAVE ELECTED THE LWG II, YOU SHOULD CAREFULLY CONSIDER WHEN TO BEGIN TAKING WITHDRAWALS. IF YOU BEGIN TAKING WITHDRAWALS TOO SOON, YOU MAY LIMIT THE VALUE OF THE LWG II. FOR EXAMPLE, WE NO LONGER INCREASE YOUR TOTAL GUARANTEED WITHDRAWAL AMOUNT BY THE 7.25% COMPOUNDING INCOME AMOUNT ONCE YOU MAKE YOUR SECOND WITHDRAWAL. HOWEVER, IF YOU DELAY TAKING WITHDRAWALS FOR TOO LONG, YOU MAY LIMIT THE NUMBER OF YEARS AVAILABLE FOR YOU TO TAKE WITHDRAWALS IN THE FUTURE (DUE TO LIFE EXPECTANCY) AND YOU MAY BE PAYING FOR A BENEFIT YOU ARE NOT USING. o At any time during the accumulation phase, you can elect to annuitize under current annuity rates in lieu of continuing the LWG II rider. This may provide higher income amounts and/or different tax treatment than the payments received under the LWG II rider. MANAGING YOUR WITHDRAWALS. It is important that you carefully manage your annual withdrawals. To retain the full guarantees of this rider, your annual withdrawals cannot exceed the Annual Benefit Payment each contract year. In other words, you should not take Excess Withdrawals. We do not include withdrawal charges for the purpose of calculating whether you have made an Excess Withdrawal. If you do take an Excess Withdrawal, we will recalculate the Total Guaranteed Withdrawal Amount and reduce the Annual Benefit Payment to the new Total Guaranteed Withdrawal Amount multiplied by the 5% Withdrawal Rate (6% Withdrawal Rate if you make your first withdrawal on or after the date you reach age 76). In addition, as noted above, if you take an Excess Withdrawal, we will reduce the Remaining Total Guaranteed Withdrawal Amount in the same proportion that the withdrawal reduces the account value. These reductions in the Total Guaranteed Withdrawal Amount, Annual Benefit Payment, and Remaining Guaranteed Withdrawal Amount may be significant. You are still eligible to receive either lifetime payments or the remainder of the Remaining Guaranteed Withdrawal Amount so long 51 as the withdrawal that exceeded the Annual Benefit Payment did not cause your account value to decline to zero. You can always take Non-Excess Withdrawals. However, if you choose to receive only a part of your Annual Benefit Payment in any given contract year, your Annual Benefit Payment is not cumulative and your Remaining Guaranteed Withdrawal Amount and Annual Benefit Payment will not increase. For example, since your Annual Benefit Payment is 5% of your Total Guaranteed Withdrawal Amount (or 6% if you make your first withdrawal on or after the date you reach age 76), you cannot withdraw 3% of the Total Guaranteed Withdrawal Amount in one year and then withdraw 7% of the Total Guaranteed Withdrawal Amount the next year without making an Excess Withdrawal in the second year. AUTOMATIC ANNUAL STEP-UP. On each contract anniversary prior to the owner's 91st birthday, an Automatic Annual Step-Up will occur, provided that the account value exceeds the Total Guaranteed Withdrawal Amount (after compounding) immediately before the step-up (and provided that you have not chosen to decline the step-up as described below). The Automatic Annual Step-Up will: o reset the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount to the account value on the date of the step-up, up to a maximum of $10,000,000, regardless of whether or not you have taken any withdrawals. o reset the Annual Benefit Payment equal to 5% of the Total Guaranteed Withdrawal Amount after the step-up (or 6% if you make your first withdrawal on or after the date you reach age 76); and o reset the LWG II rider charge to a rate we shall determine that does not exceed the maximum charge of 1.25% (Single Life version) or 1.50% (Joint Life version), provided that this rate will not exceed the rate currently applicable to the same rider available for new contract purchases at the time of the step-up. In the event that the charge applicable to contract purchases at the time of the step-up is higher than your current LWG II rider charge, we will notify you in writing a minimum of 30 days in advance of the applicable contract anniversary and inform you that you may choose to decline the Automatic Annual Step-Up. If you choose to decline the Automatic Annual Step-Up, you must notify us in accordance with our Administrative Procedures (currently we require you to submit your request in writing to our Annuity Service Center no less than seven calendar days prior to the applicable contract anniversary). Once you notify us of your decision to decline the Automatic Annual Step-Up, you will no longer be eligible for future Automatic Annual Step-Ups until you notify us in writing to our Annuity Service Center that you wish to reinstate the step-ups. This reinstatement will take effect at the next contract anniversary after we receive your request for reinstatement. Please note that the Automatic Annual Step-Up may be of limited benefit if you intend to make purchase payments that would cause your account value to approach $10,000,000, because the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount cannot exceed $10,000,000. REQUIRED MINIMUM DISTRIBUTIONS. For IRAs and other contracts subject to Section 401(a)(9) of the Internal Revenue Code, you may be required to take withdrawals to fulfill minimum distribution requirements generally beginning at age 70 1/2. These required distributions may be larger than your Annual Benefit Payment. If you enroll in the Automated Required Minimum Distribution program and elect annual withdrawals, after the first contract year, we will increase your Annual Benefit Payment to equal your most recently calculated required minimum distribution amount, if such amount is greater than your Annual Benefit Payment. Otherwise, any cumulative withdrawals you make to satisfy your required minimum distribution amount will be treated as Excess Withdrawals if they exceed your Annual Benefit Payment. YOU MUST BE ENROLLED IN THE AUTOMATED REQUIRED MINIMUM DISTRIBUTION PROGRAM TO QUALIFY FOR THIS INCREASE IN THE ANNUAL BENEFIT PAYMENT. THE FREQUENCY OF YOUR WITHDRAWALS MUST BE ANNUAL. THE AUTOMATED REQUIRED MINIMUM DISTRIBUTION PROGRAM IS BASED ON INFORMATION RELATING TO THIS CONTRACT ONLY. To enroll in the Automated Required Minimum Distribution program, please contact our Annuity Service Center. INVESTMENT ALLOCATION RESTRICTIONS. If you elect the LWG II rider, there are certain investment allocation restrictions. Please see "Purchase - Investment Allocation Restrictions for Certain Riders" above. JOINT LIFE VERSION. A Joint Life version of the LWG II rider is available for a charge of 0.85% (which may increase upon an Automatic Annual Step-Up to a 52 maximum of 1.50%). Like the Single Life version of the LWG II rider, the Joint Life version must be elected at the time you purchase the contract, and the owner (or oldest joint owner) must be age 85 or younger. Under the Joint Life version, when the owner of the contract dies (or when the first joint owner dies), the LWG II rider will automatically remain in effect only if the spouse is the primary beneficiary and elects to continue the contract under the spousal continuation provisions. (See "Death Benefit-Spousal Continuation.") This means that if you purchase the Joint Life version and subsequently get divorced, or your spouse is no longer the primary beneficiary at the time of your death, he or she will not be eligible to receive payments under the LWG II rider. If the spouse is younger than age 59 1/2 when he or she elects to continue the contract, the spouse will receive the Annual Benefit Payment each year until the Remaining Guaranteed Withdrawal Amount is depleted. If the spouse is age 59 1/2 or older when he or she elects to continue the contract, the spouse will receive the Annual Benefit Payment each year for the remainder of his or her life. In situations in which a trust is both the owner and beneficiary of the contract, the Joint Life version of the LWG II would not apply. In addition, because of the definition of "spouse" under federal law, a purchaser who has or is contemplating a civil union should note that a civil union partner would not be able to receive continued payments after the death of the contract owner under the Joint Life version of the LWG II. CANCELLATION AND GUARANTEED PRINCIPAL ADJUSTMENT. You may elect to cancel the LWG II rider on the contract anniversary every five contract years for the first 15 contract years and annually thereafter. We must receive your cancellation request within 30 days following the applicable contract anniversary in accordance with our Administrative Procedures (currently we require you to submit your request in writing to our Annuity Service Center). The cancellation will take effect upon our receipt of your request. If cancelled, the LWG II rider will terminate, we will no longer deduct the LWG II rider charge, and the investment allocation restrictions described in "Purchase - Investment Allocation Restrictions for Certain Riders" will no longer apply. The variable annuity contract, however, will continue. If you cancel the LWG II rider on the fifteenth contract anniversary or any contract anniversary thereafter, we will add a Guaranteed Principal Adjustment to your account value. The Guaranteed Principal Adjustment is intended to restore your initial investment in the contract in the case of poor investment performance. The Guaranteed Principal Adjustment is equal to (a) - (b) where: (a) is purchase payments credited within 120 days of the date that we issued the contract, reduced proportionately by the percentage reduction in account value attributable to any partial withdrawals taken (including any applicable withdrawal charges) and (b) is the account value on the date of cancellation. The Guaranteed Principal Adjustment will be added to each applicable investment portfolio in the ratio the portion of the account value in such investment portfolio bears to the total account value in all investment portfolios. The Guaranteed Principal Adjustment will never be less than zero. Only purchase payments made during the first 120 days that you hold the contract are taken into consideration in determining the Guaranteed Principal Adjustment. Contract owners who anticipate making purchase payments after 120 days should understand that such payments will not increase the Guaranteed Principal Adjustment. Purchase payments made after 120 days are added to your account value and impact whether or not a benefit is due. Therefore, the LWG II may not be appropriate for you if you intend to make additional purchase payments after the 120-day period and are purchasing the LWG II for its Guaranteed Principal Adjustment feature. TERMINATION OF THE LIFETIME WITHDRAWAL GUARANTEE II RIDER. The Lifetime Withdrawal Guarantee II rider will terminate upon the earliest of: (1) the date of a full withdrawal of the account value (a pro rata portion of the rider charge will be assessed; you are still eligible to receive either the Remaining Guaranteed Withdrawal Amount or lifetime payments, provided the withdrawal did not exceed the Annual Benefit Payment and the provisions and conditions of the rider have been met); (2) the date all of the account value is applied to an annuity option (a pro rata portion of the rider charge will be assessed); (3) the date there are insufficient funds to deduct the Lifetime Withdrawal Guarantee rider charge from the account value (you are still eligible to receive either the 53 Remaining Guaranteed Withdrawal Amount or lifetime payments, provided the provisions and conditions of the rider have been met); (4) death of the owner or joint owner (or the annuitant if the owner is a non-natural person), except where the contract is issued under the Joint Life version of the Lifetime Withdrawal Guarantee, the primary beneficiary is the spouse, and the spouse elects to continue the contract under the spousal continuation provisions of the contract; (5) change of the owner or joint owner for any reason (a pro rata portion of the rider charge will be assessed), subject to our administrative procedures; (6) the effective date of the cancellation of the rider; (7) termination of the contract to which the rider is attached (a pro rata portion of the rider charge will be assessed, except for a termination due to death); or (8) the date you assign your contract, subject to our administrative procedures. Once the rider is terminated, the LWG II rider charge will no longer be deducted and the LWG II investment allocation restrictions will no longer apply. ADDITIONAL INFORMATION. The LWG II rider may affect the death benefit available under your contract. If the owner or joint owner should die while the LWG II rider is in effect, an alternate death benefit amount will be calculated under the LWG II rider that can be taken in a lump sum. The LWG II death benefit amount that may be taken as a lump sum will be equal to total purchase payments less any partial withdrawals (deducted on a dollar-for-dollar basis). If this death benefit amount is greater than the death benefit provided by your contract, and if you made no Excess Withdrawals, then this death benefit amount will be paid instead of the death benefit provided by the contract. All other provisions of your contract's death benefit will apply. Alternatively, the beneficiary may elect to receive the Remaining Guaranteed Withdrawal Amount as a death benefit, in which case we will pay the Remaining Guaranteed Withdrawal Amount on a monthly basis (or any mutually agreed upon frequency, but no less frequently than annually) until the Remaining Guaranteed Withdrawal Amount is exhausted. The surviving spouse's withdrawal rights then come to an end. Currently, there is no minimum dollar amount for the payments; however, we reserve the right to accelerate any payment, in a lump sum, that is less than $500 (see below). This death benefit will be paid instead of the applicable contractual death benefit or the additional death benefit amount calculated under the LWG II as described above. Otherwise, the provisions of those contractual death benefits will determine the amount of the death benefit. Except as may be required by the Internal Revenue Code, an annual payment will not exceed the Annual Benefit Payment. If your beneficiary dies while such payments are made, we will continue making the payments to the beneficiary's estate unless we have agreed to another payee in writing. If the contract is a Non-Qualified Contract, any death benefit must be paid out over a time period and in a manner that satisfies Section 72(s) of the Internal Revenue Code. If the owner (or the annuitant, if the owner is not a natural person) dies prior to the "annuity starting date" (as defined under the Internal Revenue Code and regulations thereunder), the period over which the Remaining Guaranteed Withdrawal Amount is paid as a death benefit cannot exceed the remaining life expectancy of the payee under the appropriate IRS tables. For purposes of the preceding sentence, if the payee is a non-natural person, the Remaining Guaranteed Withdrawal Amount must be paid out within 5 years from the date of death. Payments under this death benefit must begin within 12 months following the date of death. We reserve the right to accelerate any payment, in a lump sum, that is less than $500 or to comply with requirements under the Internal Revenue Code (including minimum distribution requirements for IRAs and other contracts subject to Section 401(a)(9) of the Internal Revenue Code and Non-Qualified Contracts subject to Section 72(s)). If you terminate the LWG II rider because (1) you make a total withdrawal of your account value; (2) your account value is insufficient to pay the LWG II rider charge; or (3) the contract owner dies, except where the beneficiary or joint owner is the spouse of the owner and the spouse elects to continue the contract, you may not make additional purchase payments under the contract. DESCRIPTION OF THE LIFETIME WITHDRAWAL GUARANTEE I In states where the Lifetime Withdrawal Guarantee II is not yet approved, we offer (in states where approved) the Lifetime Withdrawal Guarantee I rider. The Lifetime 54 Withdrawal Guarantee I rider is identical to the Lifetime Withdrawal Guarantee II, with the exceptions described below. TOTAL GUARANTEED WITHDRAWAL AMOUNT. The maximum Total Guaranteed Withdrawal Amount for the Lifetime Withdrawal Guarantee I rider is $5,000,000. If you elect the Lifetime Withdrawal Guarantee I rider and take an Excess Withdrawal, we will reduce the Total Guaranteed Withdrawal Amount by an amount equal to the difference between the Total Guaranteed Withdrawal Amount after the withdrawal and the Account Value after the withdrawal (if lower). On the other hand, if you elect the LWG II rider and take an Excess Withdrawal, we will reduce the Total Guaranteed Withdrawal Amount in the same proportion that the withdrawal reduces the Account Value. REMAINING GUARANTEED WITHDRAWAL AMOUNT. The maximum Remaining Guaranteed Withdrawal Amount for the Lifetime Withdrawal Guarantee I rider is $5,000,000. If you elect the Lifetime Withdrawal Guarantee I rider and take a withdrawal, we will reduce the Remaining Guaranteed Withdrawal Amount by the amount of each withdrawal regardless of whether it is an Excess or Non-Excess withdrawal. However, if the withdrawal is an Excess Withdrawal, then we will additionally reduce the Remaining Guaranteed Withdrawal Amount to equal the difference between the Remaining Guaranteed Withdrawal Amount after the withdrawal and the Account Value after the withdrawal (if lower). On the other hand, if you elect the LWG II rider and take a withdrawal, we will reduce the Remaining Guaranteed Withdrawal Amount by the amount of each withdrawal for withdrawals that are Non-Excess Withdrawals and for Excess Withdrawals, we will reduce the Remaining Guaranteed Withdrawal Amount in the same proportion that the withdrawal reduces the Account Value. COMPOUNDING INCOME AMOUNT. If you elect the Lifetime Withdrawal Guarantee I rider, on each contract anniversary until the earlier of: (a) the date of the first withdrawal from the contract or (b) the tenth contract anniversary, we ----- increase the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount by an amount equal to 5% multiplied by the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount before such increase. On the other hand, if you elect the LWG II rider, on each contract anniversary until the earlier of: (a) the date of the second withdrawal from ------ the contract or (b) the tenth contract anniversary, we increase the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount by an amount equal to 7.25% multiplied by the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount before such increase. ANNUAL BENEFIT PAYMENT. Under the Lifetime Withdrawal Guarantee I, the Annual Benefit Payment is set equal to the Total Guaranteed Withdrawal Amount multiplied by the 5% Withdrawal Rate (there is no 6% Withdrawal Rate for taking later withdrawals). AUTOMATIC ANNUAL STEP-UP. If an Automatic Annual Step-Up occurs under the Lifetime Withdrawal Guarantee I rider, we may increase the Lifetime Withdrawal Guarantee I rider charge to the charge applicable to current contract purchases of the same rider at the time of the step-up, but to no more than a maximum of 0.95% (Single Life version) or 1.40% (Joint Life version) of the Total Guaranteed Withdrawal Amount. RIDER CHARGE. The charge for the Lifetime Withdrawal Guarantee I rider is 0.50% (Single Life version) or 0.70% (Joint Life version) of the Total Guaranteed Withdrawal Amount (see "Expenses - Guaranteed Withdrawal Benefit - Rider Charge"). INVESTMENT ALLOCATION RESTRICTIONS. If you elect the Lifetime Withdrawal Guarantee I rider, you are limited to allocating your purchase payments and account value among the fixed account and the following investment portfolios: (a) the MetLife Defensive Strategy Portfolio (b) the MetLife Moderate Strategy Portfolio (c) the MetLife Balanced Strategy Portfolio (d) the MetLife Growth Strategy Portfolio (e) the American Funds Moderate Allocation Portfolio, (f) the American Funds Balanced Allocation Portfolio, (g) the American Funds Growth Allocation Portfolio, (h) the Met/Franklin Templeton Founding Strategy Portfolio, or (i) the BlackRock Money Market Portfolio. You may also elect to participate in the EDCA program, provided that your destination investment portfolios are one or more of the above listed investment portfolios. On the other hand, if you elect the LWG II rider, you must 55 comply with the restrictions listed in "Purchase - Investment Allocation Restrictions for Certain Riders." DESCRIPTION OF THE ENHANCED GUARANTEED WITHDRAWAL BENEFIT BENEFIT BASE. The Guaranteed Withdrawal Amount is the maximum TOTAL amount of money that you are guaranteed to receive over time under the Enhanced GWB rider. At issue, the Guaranteed Withdrawal Amount and the Benefit Base are both equal to your initial purchase payment plus the GWB Bonus Amount. At any subsequent point in time, the BENEFIT BASE is the remaining amount of money that you are guaranteed to receive through withdrawals under the Enhanced GWB rider. Your Benefit Base will change with each purchase payment, or as the result of an Optional Reset. Also, each withdrawal will reduce your Benefit Base. If negative investment performance reduces your account value below the Benefit Base, you are still guaranteed to be able to withdraw the entire amount of your Benefit Base. The Benefit Base is equal to: o Your initial purchase payment, increased by the 5% GWB Bonus Amount; o Increased by each subsequent purchase payment, and by the 5% GWB Bonus Amount; o Reduced dollar for dollar by Benefits Paid, which are withdrawals and amounts applied to an annuity option (currently, you may not apply amounts less than your entire account value to an annuity option); and o If a Benefit Paid from your contract is not payable to the contract owner or the contract owner's bank account (or to the annuitant or the annuitant's bank account, if the owner is a non-natural person), or results in cumulative Benefits Paid for the current contract year exceeding the Annual Benefit Payment, and the resulting Benefit Base exceeds the account value, an additional reduction in the Benefit Base will be made. This additional reduction will be equal to the difference between the Benefit Base and your account value after the decrease for the Benefits Paid. The Benefit Base will also be reset as a result of an Optional Reset as described below. (See section A of Appendix E for examples of how withdrawals affect the Benefit Base.) ANNUAL BENEFIT PAYMENT. The ANNUAL BENEFIT PAYMENT is the maximum amount of your Benefit Base you may withdraw each contract year without adversely impacting the amount guaranteed to be available to you through withdrawals over time. The initial Annual Benefit Payment is equal to the initial Benefit Base multiplied by the GWB WITHDRAWAL RATE (7%). The Annual Benefit Payment is reset after each subsequent purchase payment to the greater of: (1) the Annual Benefit Payment before the subsequent purchase payment, and (2) the GWB Withdrawal Rate multiplied by the Benefit Base after the subsequent purchase payment. The Annual Benefit Payment will also be reset as a result of an Optional Reset as described below. You can continue to receive annual withdrawals in an amount equal to or less than your Annual Benefit Payment until your Benefit Base is depleted. MANAGING YOUR WITHDRAWALS. It is important that you carefully manage your annual withdrawals. To retain the guarantees of this rider, your annual withdrawals cannot exceed the Annual Benefit Payment each contract year. If a withdrawal from your contract does result in annual withdrawals during a contract year exceeding the Annual Benefit Payment, or if the withdrawal is not payable to the contract owner or the contract owner's bank account (or to the annuitant or the annuitant's bank account, if the owner is a non-natural person), the Annual Benefit Payment will be recalculated and may be reduced. The new Annual Benefit Payment will equal the lower of (1) the Annual Benefit Payment before the withdrawal and (2) your account value after the decrease for the withdrawal (including any applicable withdrawal charge) multiplied by the GWB Withdrawal Rate. This reduction may be significant. Furthermore, because the GWB rider charge is assessed as a percentage of the Guaranteed Withdrawal Amount, any decrease of the Annual Benefit Payment caused by an excess withdrawal results in an increase in the cost of the rider relative to the benefits you will receive. (See sections B and C of Appendix E for examples of how withdrawals and subsequent purchase payments affect the Annual Benefit Payment.) You can always take annual withdrawals less than the Annual Benefit Payment. However, if you choose to receive only a part of, or none of, your Annual Benefit Payment in any given contract year, your Annual Benefit Payment is not cumulative and your Benefit Base and Annual Benefit 56 Payment will not increase. For example, if your Annual Benefit Payment is 7% of your Benefit Base and you withdraw only 4% one year, you cannot then withdraw 10% the next year without exceeding your Annual Benefit Payment. REQUIRED MINIMUM DISTRIBUTIONS. For IRAs and other contracts subject to Section 401(a)(9) of the Internal Revenue Code, you may be required to take withdrawals to fulfill minimum distribution requirements generally beginning at age 70 1/2. These required distributions may be larger than your Annual Benefit Payment. If you enroll in the Automated Required Minimum Distribution program and elect annual withdrawals, after the first contract year, we will increase your Annual Benefit Payment to equal your most recently calculated required minimum distribution amount, if such amount is greater than your Annual Benefit Payment. Otherwise, any cumulative withdrawals you make to satisfy your required minimum distribution amount will be treated as Excess Withdrawals if they exceed your Annual Benefit Payment. YOU MUST BE ENROLLED IN THE AUTOMATED REQUIRED MINIMUM DISTRIBUTION PROGRAM TO QUALIFY FOR THIS INCREASE IN THE ANNUAL BENEFIT PAYMENT. THE FREQUENCY OF YOUR WITHDRAWALS MUST BE ANNUAL. THE AUTOMATED REQUIRED MINIMUM DISTRIBUTION PROGRAM IS BASED ON INFORMATION RELATING TO THIS CONTRACT ONLY. To enroll in the Automated Required Minimum Distribution program, please contact our Annuity Service Center. GUARANTEED WITHDRAWAL AMOUNT. We assess the GWB rider charge as a percentage of the GUARANTEED WITHDRAWAL AMOUNT, which is initially set at an amount equal to your initial purchase payment plus the GWB Bonus Amount. The Guaranteed Withdrawal Amount may increase with subsequent purchase payments. In this case, the Guaranteed Withdrawal Amount will be reset equal to the greater of: (1) the Guaranteed Withdrawal Amount before the purchase payment and (2) the Benefit Base after the purchase payment. Withdrawals do not decrease the Guaranteed Withdrawal Amount. The Guaranteed Withdrawal Amount will also be reset as a result of an Optional Reset as described below. If your Guaranteed Withdrawal Amount increases, the amount of the Enhanced GWB rider charge we deduct will increase because the rider charge is a percentage of your Guaranteed Withdrawal Amount. OPTIONAL RESET. The purpose of an Optional Reset is to "lock-in" a higher Benefit Base, which may increase the amount of the Annual Benefit Payment and lengthen the period of time over which these withdrawals can be taken. At any contract anniversary prior to the owner's 86th birthday, you may elect an Optional Reset. The Optional Reset will reset the Annual Benefit Payment, Benefit Base and Guaranteed Withdrawal Amount, provided that your account value is larger than the Benefit Base immediately before the reset. We reserve the right to prohibit an Optional Reset election if we no longer offer this benefit. The reset will: o Reset your Guaranteed Withdrawal Amount and Benefit Base equal to the account value on the date of the reset; o Reset your Annual Benefit Payment equal to the account value on the date of the reset multiplied by the GWB Withdrawal Rate (7%); and o Reset the Enhanced GWB rider charge equal to the then current level we charge for the same rider at the time of the reset, up to the maximum charge of 1.00%. An Optional Reset can also result in an increase of the Guaranteed Withdrawal Amount and the Enhanced GWB rider charge. However, locking in a higher Benefit Base by electing an Optional Reset can result in a decrease of the Annual Benefit Payment and the Guaranteed Withdrawal Amount if the account value before the reset was less than the Guaranteed Withdrawal Amount. Therefore, generally it may be beneficial to reset your Benefit Base only if your account value exceeds your Guaranteed Withdrawal Amount. However, any benefit of an Optional Reset also depends on the current Enhanced GWB rider charge. If the current charge in effect is higher than the charge you are paying, it may not be beneficial to reset your Benefit Base since we will begin applying the higher current charge at the time of the reset (even if the reset results in a decrease of your Annual Benefit Payment and/or your Guaranteed Withdrawal Amount). We must receive your request for an Optional Reset in accordance with our administrative procedures (currently we require you to submit your request in writing to our Annuity Service Center) within the 30-day period ending on the day before the applicable contract anniversary. If the owner is a non-natural person, the annuitant's age is the basis for determining the birthday. If there are joint owners, the age of the oldest joint owner is used to determine the birthday. The Optional Reset will take effect on the next contract anniversary following our receipt of your written request. 57 For contracts issued prior to July 16, 2007, you may elect an Optional Reset ------------------------------------------- beginning with the third contract annivesary (as long as it is prior to the owner's 86th birthday) and at any subsequent contract anniversary prior to the owner's 86th birthday as long as it has been at least three years since the last Optional Reset. CANCELLATION OF THE ENHANCED GWB RIDER. You may elect to cancel the Enhanced GWB rider in accordance with our Administrative Procedures (currently we require you to submit your cancellation request in writing to our Annuity Service Center) during the 90-day period following your fifth contract anniversary. Such cancellation will take effect upon our receipt of your request. If cancelled, the Enhanced GWB rider will terminate and we will no longer deduct the Enhanced GWB rider charge. The variable annuity contract, however, will continue. If you cancel the Enhanced GWB rider, you may not re-elect it. TERMINATION OF THE ENHANCED GWB RIDER. The Enhanced GWB rider will terminate upon the earliest of: (1) the date you make a full withdrawal of your account value; (2) the date you apply all of your account value to an annuity option; (3) the date there are insufficient funds to deduct the Enhanced GWB rider charge from your account value (whatever account value is available will be applied to pay the annual Enhanced GWB rider charge); (4) the date we receive due proof of the owner's death and a beneficiary claim form, except where the beneficiary or joint owner is the spouse of the owner and the spouse elects to continue the contract and the spouse is less than 85 years old, or the annuitant dies if the owner is a non-natural person; note: (a) if the spouse elects to continue the contract (so long as the spouse is less than 85 years old and the Enhanced GWB rider is in effect at the time of continuation), all terms and conditions of the Enhanced GWB rider will apply to the surviving spouse; and (b) we will not terminate the rider until we receive both due proof of the owner's death and a beneficiary claim form (from certain beneficiaries, such as a trust, we may require additional information, such as the trust document), which means we will continue to deduct the Enhanced GWB rider charge until we receive this information; (5) a change of the owner or joint owner (or the annuitant if the owner is a non-natural person) for any reason; (6) the effective date of cancellation of the rider; or (7) the termination of your contract. ADDITIONAL INFORMATION. If you take a full withdrawal of your account value and the withdrawal does not exceed the Annual Benefit Payment, or your account value is reduced to zero because you do not have a sufficient account value to pay the Enhanced GWB rider charge and your Benefit Base after the withdrawal is greater than zero, we will commence making payments to the owner or joint owner (or to the annuitant if the owner is a non-natural person) on a monthly basis (or any mutually agreed upon frequency, but not less frequently than annually) until the Benefit Base is exhausted. Your withdrawal rights then come to an end. Currently, there is no minimum dollar amount for the payments; however, we reserve the right to accelerate any payment, in a lump sum, that is less than $500 (see below). The total annual payments cannot exceed the Annual Benefit Payment, except to the extent required under the Internal Revenue Code. If you or the joint owner (or the annuitant if the owner is a non-natural person) should die while these payments are being made, your beneficiary will receive these payments. No other death benefit will be paid. If the owner or joint owner (or the annuitant if the owner is a non-natural person) should die while the Enhanced GWB rider is in effect, your beneficiary may elect to receive the Benefit Base as a death benefit in lieu of any other contractual death benefits. Otherwise, the provisions of those death benefits will determine the amount of the death benefit and no benefit will be payable under the Enhanced GWB rider. If the beneficiary elects the Benefit Base as a death benefit, we will pay the remaining Benefit Base on a monthly basis (or any mutually agreed upon frequency, but no less frequently than annually) until the Benefit Base is exhausted. Except as may be required by the Internal Revenue Code, an annual payment will not exceed the Annual Benefit Payment. If your beneficiary dies while such payments are made, we will continue making the payments to the beneficiary's estate unless we have agreed to another payee in writing. If the contract is a Non-Qualified Contract, any death benefit must be paid out over a time period and in a manner that satisfies Section 72(s) of the Internal Revenue Code. If the owner (or the annuitant, if the owner is not a natural person) dies prior to the "annuity starting date" (as defined under the Internal Revenue Code and regulations thereunder), the period over 58 which the Benefit Base is paid as a death benefit cannot exceed the remaining life expectancy of the payee under the appropriate IRS tables. For purposes of the preceding sentence, if the payee is a non-natural person, the Benefit Base must be paid out within 5 years from the date of death. Payments under this death benefit must begin within 12 months following the date of death. We reserve the right to accelerate any payment, in a lump sum, that is less than $500 or to comply with requirements under the Internal Revenue Code (including minimum distribution requirements for IRAs and other contracts subject to Section 401(a)(9) of the Internal Revenue Code and Non-Qualified Contracts subject to Section 72(s)). If you terminate the Enhanced GWB rider because (1) you make a total withdrawal of your account value; (2) your account value is insufficient to pay the Enhanced GWB rider charge; or (3) the contract owner or joint owner (or the annuitant, if the owner is a non-natural person) dies, except where the beneficiary or joint owner is the spouse of the owner and the spouse elects to continue the contract and the spouse is less than 85 years old, you may not make additional purchase payments under the contract. DESCRIPTION OF THE GUARANTEED WITHDRAWAL BENEFIT I The GWB I rider is the same as the Enhanced GWB rider described above with the following differences: (1) there is no favorable treatment of required minimum distributions; (2) the GWB I rider charge continues even if your Benefit Base equals zero; (3) you may only elect the Optional Reset once every five contract years instead of every contract year; (4) the GWB I rider charge is 0.50% and the maximum GWB I rider charge upon an Optional Reset is 0.95%; (5) you do not have the ability to cancel the rider following your fifth contract anniversary; and (6) we include withdrawal charges for purposes of determining whether your withdrawals have exceeded your Annual Benefit Payment. By endorsement, the GWB I rider has been enhanced so that items (1) and (2) above no longer apply and the interval between Optional Resets in item (3) has been decreased to every three contract years. You may now elect an Optional Reset under the GWB I starting with the third contract anniversary (as long as it is prior to the owner's 86th birthday), and you may elect an Optional Reset at any subsequent contract anniversary prior to the owner's 86th birthday, as long as it has been at least three years since the last Optional Reset. GUARANTEED MINIMUM ACCUMULATION BENEFIT In states where approved, you may elect the Guaranteed Minimum Accumulation Benefit ("GMAB") as an optional rider to your contract. The GMAB guarantees that your account value will not be less than a minimum amount at the end of a specified number of years (the "Rider Maturity Date"). If your account value is less than the minimum guaranteed amount at the Rider Maturity Date, we will apply an additional amount to increase your account value so that it is equal to the guaranteed amount. If you elect the GMAB rider, we require you to allocate your purchase payments and all of your account value to one of the MetLife Asset Allocation Program --- portfolios available in your contract (the MetLife Aggressive Strategy and the MetLife Growth Strategy Portfolios are not available for this purpose). You may also allocate purchase payments to the EDCA program, provided that your destination portfolio is the available MetLife Asset Allocation Program portfolio that you have chosen. No transfers are permitted while this rider is in effect. The MetLife Asset Allocation Program portfolio you choose will determine the percentage of purchase payments that equals the guaranteed amount. The MetLife Asset Allocation Program portfolios available if you choose the GMAB rider, the percentage of purchase payments that determines the guaranteed amount, and the number of years to the Rider Maturity Date for each, are:
Guaranteed Amount Years to (% of Purchase Rider Portfolio Payments) Maturity Date ------------------- ---------------- -------------- MetLife Defensive Strategy Portfolio 130% 10 years MetLife Moderate Strategy Portfolio 120% 10 years MetLife Balanced Strategy Portfolio 110% 10 years
For more information about the MetLife Asset Allocation Program portfolios, please see "Investment Options - Description of the MetLife Asset Allocation Program" and the prospectus for the MetLife Asset Allocation Program portfolios. You may elect the GMAB rider when you purchase the contract, up through age 80. This benefit is intended to protect you against poor investment performance during the accumulation phase of your contract. You may not 59 have this benefit and a GMIB or GWB rider in effect at the same time. BENEFIT DESCRIPTION. The GMAB rider guarantees that at the Rider Maturity Date, your account value will at least be equal to a percentage of the purchase payments you made during the first 120 days that you held the contract (the "GMAB Eligibility Period"), less reductions for any withdrawals (and related withdrawal charges) that you made at any time before the Rider Maturity Date. The percentage of purchase payments made that determines the guaranteed amount range from 110% to 130%, depending on the MetLife Asset Allocation Program portfolio you selected. This guaranteed amount is the "GUARANTEED ACCUMULATION AMOUNT." The Guaranteed Accumulation Amount is used only to determine the amount of any benefit payable under the GMAB feature and the amount of the annual charge for the GMAB. There is a maximum Guaranteed Accumulation Amount for your contract that is shown on your contract schedule page (currently $5 million). Purchase payments made after this maximum Guaranteed Accumulation Amount is reached will not increase the Guaranteed Accumulation Amount above the maximum. However, if you make a withdrawal of account value during the GMAB Eligibility Period that reduces the Guaranteed Accumulation Amount below the maximum, then purchase payments you make AFTER the withdrawal, and during the GMAB Eligibility Period, will increase the Guaranteed Accumulation Amount until it reaches the maximum. Only purchase payments made during the first 120 days that you hold the contract are taken into consideration in determining the Guaranteed Accumulation Amount. If you anticipate making purchase payments after 120 days, you should understand that such payments will not increase the Guaranteed Accumulation Amount. Purchase payments made after 120 days are added to your account value and impact whether or not a benefit is due under the GMAB feature at the Rider Maturity Date. On your contract's issue date, the Guaranteed Accumulation Amount is equal to a percentage of your initial purchase payment. Subsequent purchase payments made during the GMAB Eligibility Period increase the Guaranteed Accumulation Amount by the percentage amount of the purchase payment (subject to the limit described above) depending on which MetLife Asset Allocation Program portfolio you have selected. When you make a withdrawal from the contract, the Guaranteed Accumulation Amount is reduced in the same proportion that the amount of the withdrawal (including any related withdrawal charge) bears to the total account value. EXAMPLE: Assume your account value is $100,000 and your Guaranteed Accumulation Amount is $120,000, prior to making a $10,000 withdrawal from the contract. The withdrawal amount is 10% of the account value. Therefore, after the withdrawal, your account value would be $90,000 and your Guaranteed Accumulation Amount would be $108,000 (90% of $120,000). The Guaranteed Accumulation Amount does not represent an amount of money available for withdrawal and is not used to calculate any benefits under the contract prior to the Rider Maturity Date. At the Rider Maturity Date, after deduction of the annual charge for the GMAB rider, we will compare your contract's account value to its Guaranteed Accumulation Amount. If the account value is less than the Guaranteed Accumulation Amount, we will contribute to your account value the amount needed to make it equal the Guaranteed Accumulation Amount. (This added amount is the "Guaranteed Accumulation Payment.") The Guaranteed Accumulation Payment is allocated entirely to the MetLife Asset Allocation Program portfolio you have selected (no portion of the Guaranteed Accumulation Payment is allocated to the EDCA account). If your account value is greater than or equal to the Guaranteed Accumulation Amount at the Rider Maturity Date, then no Guaranteed Accumulation Payment will be paid into your account value. The GMAB rider terminates at the Rider Maturity Date. We will not deduct the GMAB rider charge after that date, and the related investment requirements and restrictions will no longer apply. If your account value is reduced to zero for any reason other than a full withdrawal of the account value or application of the entire account value to an annuity option, but your contract has a positive Guaranteed Accumulation Amount remaining, the contract and the GMAB rider will remain in force. No charge for the GMAB rider will be deducted or accrue while there is insufficient account value to cover the deductions for the charge. At the 60 Rider Maturity Date, the Guaranteed Accumulation Payment will be paid into the account value. Purchase payments made after the 120 day GMAB Eligibility Period may have a significant impact on whether or not a Guaranteed Accumulation Payment is due at the Rider Maturity Date. Even if purchase payments made during the 120 day GMAB Eligibility Period lose significant value, if the account value, which includes all purchase payments, is equal to or greater than the Guaranteed --- Accumulation Amount, which is a percentage of your purchase payments made during the 120 day period, then no Guaranteed Accumulation Payment is made. Therefore, the GMAB rider may not be appropriate for you if you intend to make additional purchase payments after the GMAB Eligibility Period. EXAMPLE: Assume that you make one $10,000 purchase payment during the 120 day GMAB Eligibility Period and you select the MetLife Balanced Strategy Porfolio. Therefore, the Guaranteed Accumulation Amount is $11,000 (110% of your $10,000 purchase payment). Assume that at the Rider Maturity Date, your account value is $0. The Guaranteed Accumulation Payment is $11,000 ($11,000 - $0 = $11,000). In contrast, assume that you make one $10,000 purchase payment during the 120 day GMAB Eligibility Period and you select the MetLife Balanced Strategy Porfolio. Therefore, the Guaranteed Accumulation Amount is $11,000. Also assume that on the day before the Rider Maturity Date your account value is $0. Assume that you decide to make one purchase payment on the day before the Rider Maturity Date of $11,000. At the Rider Maturity Date, assume there has not been any positive or negative investment experience for the one day between your purchase payment and the Rider Maturity Date. Consequently, your account value is $11,000. We would not pay a Guaranteed Accumulation Payment because the account value of $11,000 is equal to the Guaranteed Accumulation Amount of $11,000 ($11,000 - $11,000 = $0). RIDER TERMINATION. The GMAB rider will terminate at the earliest of: (1) the Rider Maturity Date; (2) the date you surrender the contract; (3) the date you cancel the GMAB rider, as described below; (4) the date you apply all of your account value to an annuity option; and (5) the date of death of the owner or joint owner (or annuitant if the owner is a non-natural person), unless the beneficiary is the spouse of the owner and elects to continue the contract under the spousal continuation provisions of the contract. Once the rider is terminated, the GMAB rider charge will no longer be deducted and the related investment requirements and limitations will no longer apply. If the rider is terminated before the Rider Maturity Date, the Guaranteed Accumulation Payment will not be paid. CANCELLATION. You have a one-time right to cancel this optional benefit to take effect on your fifth contract anniversary. We must receive your request in writing within the 90-day period after your fifth contract anniversary. Such cancellation will take effect upon our receipt of your request. Once you have cancelled the GMAB rider, you will no longer be eligible to receive the Guaranteed Accumulation Payment or be bound by the investment requirements and restrictions, and we will no longer deduct the charge for this rider. GMAB AND DECEDENT CONTRACTS. The GMAB is not available for purchase by a beneficiary under a decedent's Non-Qualified Contract (see "Federal Income Tax Status - Taxation of Non-Qualified Contracts") or IRA contract (or where otherwise offered, under any other contract which is being "stretched" by a beneficiary after the death of the owner or after the death of the annuitant in certain cases) because, under tax rules, such contracts generally require distributions to commence by the end of the calendar year following the year of the owner's death and such distributions will have the effect of reducing the usefulness of the GMAB. 61 SUMMARY OF LIVING BENEFIT RIDERS The chart below highlights certain differences among the living benefit riders. Please refer to the detailed descriptions above for specific information about the features, costs and restrictions associated with the riders.
INCOME GUARANTEES GMIB PLUS GMIB I & II I & II LIFETIME INCOME Yes (after waiting Yes (after waiting period) period) BENEFIT RIDER Yes Yes INVOLVES ANNUITIZATION WITHDRAWALS Prior to Prior to PERMITTED/1/ annuitization annuitization WAITING PERIOD Must wait 10 years Must wait 10 years to annuitize under to annuitize under rider; Optional rider; withdrawals Step-Up/2/ restarts available waiting period; immediately withdrawals available immediately RESET/STEP-UP Yes No MAY INVEST IN Prior to Prior to VARIABLE annuitization annuitization INVESTMENT OPTIONS INVESTMENT Yes No ALLOCATION REQUIREMENTS ABILITY TO CANCEL Yes, after 10 years, No RIDER can take lump-sum option under the GPO provisions DEATH BENEFIT Prior to Prior to annuitization, annuitization, contract death contract death benefit available/3/ benefit available/3/ ACCOUNT WITHDRAWAL VALUE GUARANTEES GUARANTEE LIFETIME WITHDRAWAL ENHANCED GWB GUARANTEE I & II & GWB I GMAB LIFETIME INCOME Yes (if first No No withdrawal on or after age 59 1/2) BENEFIT RIDER No No No INVOLVES ANNUITIZATION WITHDRAWALS Yes Yes Yes PERMITTED/1/ WAITING PERIOD None (age 59 1/2 for None 10 years lifetime withdrawals) RESET/STEP-UP Yes Yes No MAY INVEST IN Yes Yes Yes VARIABLE INVESTMENT OPTIONS INVESTMENT Yes No Yes ALLOCATION REQUIREMENTS ABILITY TO CANCEL Yes, at 5th, 10th & Enhanced GWB Yes, within 90 days ---------------------- RIDER 15th contract only: Yes, within 90 after 5th contract anniversary, days after 5th anniversary annually thereafter; contract or, lump-sum anniversary option under the GPA provisions after 15 years DEATH BENEFIT Contract death Ability to receive Prior to benefit or alternate Benefit Base in annuitization, rider death benefit series of payments contract death available; ability to instead of contract benefit available/3/ receive Remaining death benefit Guaranteed Withdrawal Amount in series of payments instead of contract death benefit
62
ACCOUNT INCOME WITHDRAWAL VALUE GUARANTEES GUARANTEES GUARANTEE LIFETIME GMIB PLUS GMIB WITHDRAWAL ENHANCED GWB I & II I & II GUARANTEE I & II & GWB I GMAB CURRENT RIDER 0.80% 0.50% LWG II: 0.65% Enhanced GWB: 0.75% CHARGES/4/ (Single Life version) 0.55%; GWB I: or 0.85% (Joint 0.50% Life version); LWG I: 0.50% (Single Life version) or 0.70% (Joint Life version)
-------- (1) Withdrawals will reduce the living and death benefits and account value. (2) For GMIB Plus I, the Optional Step-Up is called the "Optional Reset." (3) If the contract is annuitized, annuity payments may be guaranteed for a certain period of time (depending on the annuity option selected) and therefore payable upon death of the annuitant. See "Annuity Payments (The Income Phase)" and the rider descriptions for more information. (4) Certain rider charges may increase upon a Reset or Step-Up. Generally, rider charges are assessed as a percentage of the guaranteed benefit rather than account value. For example, the charge for GMIB II is 0.50% of the Income Base. See the Expenses section and the individual rider descriptions for more information. 63 8. PERFORMANCE We periodically advertise subaccount performance relating to the investment portfolios. We will calculate performance by determining the percentage change in the value of an accumulation unit by dividing the increase (decrease) for that unit by the value of the accumulation unit at the beginning of the period. This performance number reflects the deduction of the Separate Account product charges (including certain death benefit rider charges) and the investment portfolio expenses. It does not reflect the deduction of any applicable account fee, withdrawal charge, Enhanced Death Benefit charge, and GMIB, GWB, or GMAB rider charge. The deduction of these charges would reduce the percentage increase or make greater any percentage decrease. Any advertisement will also include total return figures which reflect the deduction of the Separate Account product charges (including certain death benefit rider charges), account fee, withdrawal charges, Enhanced Death Benefit charge, GMIB, GWB or GMAB rider charge, and the investment portfolio expenses. For periods starting prior to the date the contract was first offered, the performance will be based on the historical performance of the corresponding investment portfolios for the periods commencing from the date on which the particular investment portfolio was made available through the Separate Account. In addition, the performance for the investment portfolios may be shown for the period commencing from the inception date of the investment portfolios. These figures should not be interpreted to reflect actual historical performance of the Separate Account. We may, from time to time, include in our advertising and sales materials performance information for funds or investment accounts related to the investment portfolios and/or their investment advisers or subadvisers. Such related performance information also may reflect the deduction of certain contract charges. We may also include in our advertising and sales materials tax deferred compounding charts and other hypothetical illustrations, which may include comparisons of currently taxable and tax deferred investment programs, based on selected tax brackets. We may advertise the GMIB, GWB, or GMAB riders using illustrations showing how the benefit works with historical performance of specific investment portfolios or with a hypothetical rate of return (which rate will not exceed 12%) or a combination of historical and hypothetical returns. These illustrations will reflect the deduction of all applicable charges including the portfolio expenses of the underlying investment portfolios. You should know that for any performance we illustrate, future performance will vary and results shown are not necessarily representative of future results. 9. DEATH BENEFIT UPON YOUR DEATH If you die during the accumulation phase, we will pay a death benefit to your beneficiary(ies). The Principal Protection is the standard death benefit for your contract. At the time you purchase the contract, depending on availability in your state, you can select the optional Annual Step-Up Death Benefit rider, the Enhanced Death Benefit rider or the Compounded-Plus Death Benefit rider and you can also select the Additional Death Benefit-Earnings Preservation Benefit. If you are 80 years old or older at the effective date of your contract, you are not eligible to select the Annual Step-Up Death Benefit rider, the Compounded-Plus Death Benefit rider or the Earnings Preservation Benefit. If you are 76 years old or older at the effective date of your contract, you are not eligible to select the Enhanced Death Benefit rider. The death benefits are described below. Check your contract and riders for the specific provisions applicable. One or more optional death benefits may not be available in your state (check with your registered representative regarding availability). The death benefit is determined as of the end of the business day on which we receive both due proof of death and an election for the payment method. Where there are multiple beneficiaries, the death benefit will only be determined as of the time the first beneficiary submits the necessary documentation in good order. If you have a joint owner, the death benefit will be paid when the first owner dies. Upon the death of either owner, the surviving joint owner will be the primary beneficiary. Any other beneficiary designation will be treated as a contingent beneficiary, unless instructed otherwise. If a non-natural person owns the contract, the annuitant will be deemed to be the owner in determining the death 64 benefit. If there are joint owners, the age of the oldest owner will be used to determine the death benefit amount. STANDARD DEATH BENEFIT - PRINCIPAL PROTECTION The death benefit will be the greater of: (1) the account value; or (2) total purchase payments, reduced proportionately by the percentage reduction in account value attributable to each partial withdrawal. If the owner is a natural person and the owner is changed to someone other than a spouse, the death benefit amount will be determined as defined above; however, subsection (2) will be changed to provide as follows: "the account value as of the effective date of the change of owner, increased by purchase payments received after the date of the change of owner, reduced proportionately by the percentage reduction in account value attributable to each partial withdrawal made after such date." In the event that a beneficiary who is the spouse of the owner elects to continue the contract in his or her name after the owner dies, the death benefit amount will be determined in accordance with (1) or (2) above. OPTIONAL DEATH BENEFIT - ANNUAL STEP-UP If you select the Annual Step-Up death benefit rider, the death benefit will be the greatest of: (1) the account value; or (2) total purchase payments, reduced proportionately by the percentage reduction in account value attributable to each partial withdrawal; or (3) the highest anniversary value, as defined below. On the date we issue your contract, the highest anniversary value is equal to your initial purchase payment. Thereafter, the highest anniversary value (as recalculated) will be increased by subsequent purchase payments and reduced proportionately by the percentage reduction in account value attributable to each subsequent partial withdrawal. On each contract anniversary prior to your 81st birthday, the highest anniversary value will be recalculated and set equal to the greater of the highest anniversary value before the recalculation or the account value on the date of the recalculation. If the owner is a natural person and the owner is changed to someone other than a spouse, the death benefit is equal to the greatest of (1), (2) or (3); however, for purposes of calculating (2) and (3) above: o Subsection (2) is changed to provide: "The account value as of the effective date of the change of owner, increased by purchase payments received after the date of change of owner, and reduced proportionately by the percentage reduction in account value attributable to each partial withdrawal made after such date"; and o for subsection (3), the highest anniversary value will be recalculated to equal your account value as of the effective date of the change of owner. In the event that a beneficiary who is the spouse of the owner elects to continue the contract in his or her name after the owner dies, the death benefit is equal to the greatest of (1), (2) or (3). OPTIONAL DEATH BENEFIT - ENHANCED DEATH BENEFIT In states where approved, you may select the Enhanced Death Benefit rider if you are age 75 or younger at the effective date of your contract and you either (a) have not elected any living benefit rider or (b) have elected the GMIB Plus II rider. If you select the Enhanced Death Benefit rider, the amount of the death benefit will be the greater of: (1) the account value; or (2) the death benefit base. The DEATH BENEFIT BASE provides protection against adverse investment experience. It guarantees that the death benefit will not be less than the greater of: (1) the highest account value on any anniversary (adjusted for withdrawals), or (2) the amount of your initial investment (adjusted for withdrawals), accumulated at 6% per year. The death benefit base is the greater of (a) or (b) below: (a) Highest Anniversary Value: On the date we issue your contract, the Highest Anniversary Value is equal to your initial purchase payment. Thereafter, the Highest Anniversary Value will be increased by subsequent purchase payments and reduced proportionately by the percentage reduction in account value attributable to each partial withdrawal. The percentage reduction in account value is the dollar amount of the withdrawal (including any applicable withdrawal charge) divided by the account value immediately preceding such withdrawal. On each contract anniversary prior to your 81st birthday, the Highest Anniversary Value will be recalculated to equal the greater of the Highest Anniversary Value before the 65 recalculation or the account value on the date of the recalculation. (b) Annual Increase Amount: On the date we issue your contract, the Annual Increase Amount is equal to your initial purchase payment. All purchase payments received within 120 days of the date we issue your contract will be treated as part of the initial purchase payment for this purpose. Thereafter, the Annual Increase Amount is equal to (i) less (ii), where: (i) is purchase payments accumulated at the annual increase rate. The annual increase rate is 6% per year through the contract anniversary immediately prior to your 91st birthday, and 0% per year thereafter; and (ii) is withdrawal adjustments accumulated at the annual increase rate. The annual increase rate is 6% per year through the contract anniversary immediately prior to your 91st birthday, and 0% per year thereafter. The withdrawal adjustment for any partial withdrawal in a contract year is equal to the Annual Increase Amount immediately prior to the withdrawal multiplied by the percentage reduction in account value attributable to that partial withdrawal (including any applicable withdrawal charge). However, (1) if the partial withdrawal occurs before the the contract anniversary immediately prior to your 91st birthday; (2) if all partial withdrawals in a contract year are payable to the owner (or the annuitant if the owner is a non-natural person) or other payees that we agree to; and (3) if total partial withdrawals in a contract year are not greater than 6% of the Annual Increase Amount on the previous contract anniversary, the total withdrawal adjustments for that contract year will be set equal to the dollar amount of total partial withdrawals in that contract year and will be treated as a single withdrawal at the end of that contract year. The Highest Anniversary Value does not change after the contract anniversary immediately preceding the owner's 81st birthday, except that it is increased for each subsequent purchase payment and reduced proportionately by the percentage reduction in account value attributable to each subsequent withdrawal (including any applicable withdrawal charge). The Annual Increase Amount does not change after the contract anniversary immediately preceding the owner's 91st birthday, except that it is increased for each subsequent purchase payment and reduced by the withdrawal adjustments described in (b)(ii) above. OPTIONAL STEP-UP. On each contract anniversary on or after the first anniversary following the effective date of the rider, you may elect an Optional Step-Up provided that (1) the account value exceeds the Annual Increase Amount immediately before the Optional Step-Up; and (2) the owner (or oldest joint owner or annuitant if the contract is owned by a non-natural person) is not older than age 80 on the date of the Optional Step-Up. We must receive your request to exercise the Optional Step-Up in writing, at our Annuity Service Center, or any other method acceptable to us. We must receive your request prior to the contract anniversary for an Optional Step-Up to occur on that contract anniversary. The Optional Step-Up will: (a) Reset the Annual Increase Amount to the account value on the contract anniversary following the receipt of an Optional Step-Up election; and (b) Reset the Enhanced Death Benefit rider charge to a rate we shall determine that does not exceed the maximum Optional Step-Up charge (1.50%), provided that this rate will not exceed the rate currently applicable to the same rider available for new contract purchases at the time of the step-up. On the date of the Optional Step-Up, the account value on that day will be treated as a single purchase payment received on the date of the step-up for purposes of determining the Annual Increase Amount after the step-up. All purchase payments and withdrawal adjustments previously used to calculate the Annual Increase Amount will be set equal to zero on the date of the Optional Step-Up. When you elect the Optional Step-Up, provided the above requirements are met, you may elect either: 1) a one time Optional Step-Up at any contract anniversary; or 66 2) Optional Step-Ups to occur under the Automatic Annual Step-Up (on any contract anniversary while this election is in effect, the Annual Increase Amount will reset to the account value automatically). In the event that the charge applicable to contract purchases at the time of the step-up is higher than your current Enhanced Death Benefit rider charge, you will be notified in writing a minimum of 30 days in advance of the applicable contract anniversary and be informed that you may choose to decline the Automatic Annual Step-Up. If you decline the Automatic Annual Step-Up, you must notify us in accordance with our Administrative Procedures (currently we require you to submit your request in writing to our Annuity Service Center no less than seven calendar days prior to the applicable contract anniversary). Once you notify us of your decision to decline the Automatic Annual Step-Up, you will no longer be eligible for future Automatic Annual Step-Ups until you notify us in writing to our Annuity Service Center that you wish to reinstate the Automatic Annual Step-Ups. This reinstatement will take effect at the next contract anniversary after we receive your request for reinstatement. If you have also elected the GMIB Plus II rider and you elect Optional Step-Ups to occur under the Automatic Annual Step-up, it will remain in effect through the seventh contract anniversary following the date you make the election. You may make a new election if you want Automatic Annual Step-Ups to continue after the seventh contract anniversary. You may discontinue Automatic Annual Step-Ups at any time by notifying us in writing, at our Annuity Service Center (or by any other method acceptable to us), at least 30 days prior to the contract anniversary following the date you make this election. If you discontinue Automatic Annual Step-Ups, the Enhanced Death Benefit rider (and the rider charge) will continue, and you may choose to elect a one time Optional Step-Up or reinstate Automatic Annual Step-Ups as described above. INVESTMENT ALLOCATION RESTRICTIONS. If you select the Enhanced Death Benefit rider, there are certain investment allocation restrictions. (See "Purchase - Investment Allocation Restrictions for Certain Riders.") TERMINATION OF THE ENHANCED DEATH BENEFIT. The Enhanced Death Benefit will terminate upon the earliest of: a) The date you make a total withdrawal of your account value (a pro rata portion of the rider charge will be assessed); b) The date there are insufficient funds to deduct the Enhanced Death Benefit rider charge from your account value; c) The date you annuitize your contract (a pro rata portion of the rider charge will be assessed); d) A change of the owner or joint owner (or annuitant if the owner is a non-natural person), subject to our administrative procedures; e) The date you assign your contract, subject to our administrative procedures; f) The date the death benefit amount is determined (excluding the determination of the death benefit amount under the spousal continuation option); or g) Termination of the contract to which this rider is attached. (See Appendix F for examples of the Enhanced Death Benefit.) OPTIONAL DEATH BENEFIT - COMPOUNDED-PLUS In states where the Compounded-Plus death benefit rider has been approved and the Enhanced Death Benefit has not been approved, you may select the Compounded-Plus death benefit rider if you are age 79 or younger at the effective date of your contract. If you select the Compounded-Plus death benefit rider, the death benefit will be the greater of: (1) the account value; or (2) the enhanced death benefit. The enhanced death benefit is the greater of (a) or (b) below: (a) Highest Anniversary Value: On the date we issue your contract, the highest anniversary value is equal to your initial purchase payment. Thereafter, the highest anniversary value (as recalculated) will be increased by subsequent purchase payments and reduced proportionately by the percentage reduction in account value attributable to each subsequent partial withdrawal. On each contract anniversary prior to your 81st birthday, the highest anniversary value will be recalculated and set equal to the greater of the highest anniversary value before the recalculation or the account value on the date of the recalculation. (b) Annual Increase Amount: On the date we issue your contract, the annual increase amount is equal 67 to your initial purchase payment. Thereafter, the annual increase amount is equal to (i) less (ii), where: (i) is purchase payments accumulated at the annual increase rate. The annual increase rate is 5% per year through the contract anniversary immediately prior to your 81st birthday, and 0% per year thereafter; and (ii) is withdrawal adjustments accumulated at the annual increase rate. A withdrawal adjustment is equal to the value of the annual increase amount immediately prior to a withdrawal multiplied by the percentage reduction in account value attributable to that partial withdrawal. If the owner is a natural person and the owner is changed to someone other than a spouse, the death benefit is equal to the greatest of (1) or (2); however, for purposes of calculating the enhanced death benefit under (2) above: (a) for the highest anniversary value, the highest anniversary value will be recalculated to equal your account value as of the effective date of the owner change; and (b) for the annual increase amount, the current annual increase amount will be reset to equal your account value as of the effective date of the owner change. For purposes of the calculation of the annual increase amount thereafter, the account value on the effective date of the owner change will be treated as the initial purchase payment and purchase payments received and partial withdrawals taken prior to the change of owner will not be taken into account. In the event that a beneficiary who is the spouse of the owner elects to continue the contract in his or her name after the owner dies, the death benefit amount is equal to the greater of (1) or (2). ADDITIONAL DEATH BENEFIT - EARNINGS PRESERVATION BENEFIT The Additional Death Benefit - Earnings Preservation Benefit pays an additional death benefit that is intended to help pay part of the income taxes due at the time of death of the owner or joint owner. The benefit is only available up through age 79 (on the contract issue date). In certain situations, this benefit may not be available for qualified plans (check with your registered representative for details). Before the contract anniversary immediately prior to your 81st birthday, the additional death benefit is equal to the "benefit percentage" (determined in accordance with the table below) times the result of (a) - (b), where: (a) is the death benefit under your contract; and (b) is total purchase payments not withdrawn. For purposes of calculating this value, partial withdrawals are first applied against earnings in the contract, and then against purchase payments not withdrawn. On or after the contract anniversary immediately prior to your 81st birthday, the additional death benefit is equal to the "benefit percentage" (determined in accordance with the table below) times the result of (a) - (b), where: (a) is the death benefit on the contract anniversary immediately prior to your 81st birthday, increased by subsequent purchase payments and reduced proportionately by the percentage reduction in account value attributable to each subsequent partial withdrawal; and (b) is total purchase payments not withdrawn. For purposes of calculating this value, partial withdrawals are first applied against earnings in the contract, and then against purchase payments not withdrawn. Benefit Percentage Issue Age Percentage ---------------------- Ages 69 or younger 40% Ages 70-79 25% Ages 80 and above 0%
If the owner is a natural person and the owner is changed to someone other than a spouse, the additional death benefit is as defined above; however, for the purposes of calculating subsection (b) above "total purchase payments not withdrawn" will be reset to equal the account value as of the effective date of the owner change, and purchase payments received and partial withdrawals taken prior to the change of owner will not be taken into account. In the event that a beneficiary who is the spouse of the owner elects to continue the contract in his or her name after the owner dies, the additional death benefit will be determined and payable upon receipt of due proof of death of the first spousal beneficiary. Alternatively, the spousal beneficiary may elect to have the additional death benefit determined and added to the account value upon the election, in which case the additional death benefit rider 68 will terminate (and the corresponding death benefit rider charge will also terminate). GENERAL DEATH BENEFIT PROVISIONS The death benefit amount remains in the Separate Account until distribution begins. From the time the death benefit is determined until complete distribution is made, any amount in the Separate Account will continue to be subject to investment risk. This risk is borne by the beneficiary. Please check with your registered representative regarding the availability of the following in your state. If the beneficiary under a tax qualified contract is the annuitant's spouse, the tax law generally allows distributions to begin by the year in which the annuitant would have reached 70 1/2 (which may be more or less than five years after the annuitant's death). A beneficiary must elect the death benefit to be paid under one of the payment options (unless the owner has previously made the election). The entire death benefit must be paid within five years of the date of death unless the beneficiary elects to have the death benefit payable under an annuity option. The death benefit payable under an annuity option must be paid over the beneficiary's lifetime or for a period not extending beyond the beneficiary's life expectancy. For non-qualified contracts, payment must begin within one year of the date of death. For tax qualified contracts, payment must begin no later than the end of the calendar year immediately following the year of death. We may also offer a payment option, for both non-tax qualified contracts and certain tax qualified contracts, under which your beneficiary may receive payments, over a period not extending beyond his or her life expectancy, under a method of distribution similar to the distribution of required minimum distributions from Individual Retirement Accounts. If this option is elected, we will issue a new contract to your beneficiary in order to facilitate the distribution of payments. Your beneficiary may choose any optional death benefit available under the new contract. Upon the death of your beneficiary, the death benefit would be required to be distributed to your beneficiary's beneficiary at least as rapidly as under the method of distribution in effect at the time of your beneficiary's death. (See "Federal Income Tax Status.") To the extent permitted under the tax law, and in accordance with our procedures, your designated beneficiary is permitted under our procedures to make additional purchase payments consisting of monies which are direct transfers (as permitted under tax law) from other tax qualified or non-tax qualified contracts, depending on which type of contract you own, held in the name of the decedent. Any such additional purchase payments would be subject to applicable withdrawal charges. Your beneficiary is also permitted to choose some of the optional benefits available under the contract, but certain contract provisions or programs may not be available. If a lump sum payment is elected and all the necessary requirements are met, the payment will be made within 7 days. Payment to the beneficiary under an annuity option may only be elected during the 60 day period beginning with the date we receive due proof of death. If we do not receive an election during such time, we will make a single lump sum payment to the beneficiary at the end of the 60 day period. If the owner or a joint owner, who is not the annuitant, dies during the income phase, any remaining payments under the annuity option elected will continue at least as rapidly as under the method of distribution in effect at the time of the owner's death. Upon the death of the owner or a joint owner during the income phase, the beneficiary becomes the owner. SPOUSAL CONTINUATION If the primary beneficiary is the spouse of the owner, upon the owner's death, the beneficiary may elect to continue the contract in his or her own name. Upon such election, the account value will be adjusted upward (but not downward) to an amount equal to the death benefit amount determined upon such election and receipt of due proof of death of the owner. Any excess of the death benefit amount over the account value will be allocated to each applicable investment portfolio and/or the fixed account in the ratio that the account value in the investment portfolio and/or the fixed account bears to the total account value. The terms and conditions of the contract that applied prior to the owner's death will continue to apply, with certain exceptions described in the contract. For purposes of the death benefit on the continued contract, the death benefit is calculated in the same manner as it was prior to continuation except that all values used to calculate the death benefit, which may include a highest anniversary value and/or an annual increase amount 69 (depending on whether you elected an optional death benefit), are reset on the date the spouse continues the contract. Spousal continuation will not satisfy minimum required distribution rules for Qualified Contracts other than IRAs (see "Federal Income Tax Status"). DEATH OF THE ANNUITANT If the annuitant, not an owner or joint owner, dies during the accumulation phase, you automatically become the annuitant. You can select a new annuitant if you do not want to be the annuitant (subject to our then current underwriting standards). However, if the owner is a non- natural person (for example, a trust), then the death of the primary annuitant will be treated as the death of the owner, and a new annuitant may not be named. Upon the death of the annuitant after annuity payments begin, the death benefit, if any, will be as provided for in the annuity option selected. Death benefits will be paid at least as rapidly as under the method of distribution in effect at the annuitant's death. CONTROLLED PAYOUT You may elect to have the death benefit proceeds paid to your beneficiary in the form of annuity payments for life or over a period of time that does not exceed your beneficiary's life expectancy. This election must be in writing in a form acceptable to us. You may revoke the election only in writing and only in a form acceptable to us. Upon your death, the beneficiary cannot revoke or modify your election. The Controlled Payout is only available to Non-Qualified Contracts (see "Federal Income Tax Status"). 10. FEDERAL INCOME TAX STATUS The following discussion is general in nature and is not intended as tax advice. Each person concerned should consult a competent tax adviser. No attempt is made to consider any applicable state tax or other tax laws, or to address any state and local estate, inheritance and other tax consequences of ownership or receipt of distributions under a contract. When you invest in an annuity contract, you usually do not pay taxes on your investment gains until you withdraw the money, generally for retirement purposes. If you invest in an annuity contract as part of an individual retirement plan, pension plan or employer-sponsored retirement program, your contract is called a "Qualified Contract." The tax rules applicable to Qualified Contracts vary according to the type of retirement plan and the terms and conditions of the plan. You should note that for any Qualified Contract, the tax deferred accrual feature is provided by the tax qualified retirement plan, and as a result there should be reasons other than tax deferral for acquiring the contract within a qualified plan. If your annuity is independent of any formal retirement or pension plan, it is termed a "Non-Qualified Contract." Under current federal income tax law, the taxable portion of distributions under variable annuity contracts and qualified plans (including IRAs) is not eligible for the reduced tax rate applicable to long-term capital gains and qualifying dividends. TAXATION OF NON-QUALIFIED CONTRACTS NON-NATURAL PERSON. If a non-natural person (e.g., a trust) owns a Non-Qualified Contract, the taxpayer generally must include in income any increase in the excess of the account value over the investment in the contract (generally, the premiums or other consideration paid for the contract) during the taxable year. There are some exceptions to this rule and a prospective owner that is not a natural person should discuss these with a tax adviser. The following discussion generally applies to Non-Qualified Contracts owned by natural persons. WITHDRAWALS. When a withdrawal from a Non-Qualified Contract occurs, the amount received will be treated as ordinary income subject to tax up to an amount equal to the excess (if any) of the account value immediately before the distribution over the owner's investment in the contract (generally, the premiums or other consideration paid for the contract, reduced by any amount previously distributed from the contract that was not subject to tax) at that time. In the case of a surrender under a Non-Qualified Contract, the amount received generally will be taxable only to the extent it exceeds the owner's investment in the contract. In the case of a withdrawal under a Qualified Contract, a ratable portion of the amount received is taxable, generally based on the ratio of the "investment in the contract" to the individual's total account balance or accrued benefit 70 under the retirement plan. The "investment in the contract" generally equals the amount of any non-deductible purchase payments paid by or on behalf of any individual. In many cases, the "investment in the contract" under a Qualified Contract can be zero. It is conceivable that certain benefits or the charges for certain benefits such as any of the guaranteed death benefits (including, but not limited to, the Earnings Preservation Benefit) and certain living benefits (E.G., the GWB riders or GMAB rider), could be considered to be taxable each year as deemed distributions from the contract to pay for non-annuity benefits. We currently treat these charges and benefits as an intrinsic part of the annuity contract and do not tax report these as taxable income until distributions are actually made. However, it is possible that this may change in the future if we determine that this is required by the IRS. If so, the charges or benefits could also be subject to a 10% penalty tax if the taxpayer is under age 59 1/2. The tax treatment of withdrawals under a Guaranteed Withdrawal Benefit is also uncertain. It is conceivable that the amount of potential gain could be determined based on the Benefit Base at the time of the withdrawal, if greater than the account value. This could result in a greater amount of taxable income in certain cases. In general, at the present time, we intend to tax report such withdrawals using the gross account value rather than the Benefit Base at the time of the withdrawal to determine gain. However, in cases where the maximum permitted withdrawal in any year under the GWB exceeds the gross account value, the portion of the withdrawal treated as taxable gain (not to exceed the amount of the withdrawal) should be measured as the difference between the maximum permitted withdrawal amount under the benefit and the remaining after-tax basis immediately preceding the withdrawal. Consult your tax adviser. We reserve the right to change our tax reporting practices if we determine that they are not in accordance with IRS guidance (whether formal or informal). ADDITIONAL PENALTY TAX ON CERTAIN WITHDRAWALS. In the case of a distribution (or a deemed distribution) from a Non-Qualified Contract, there may be imposed a federal tax penalty equal to 10% of the amount treated as income. In general, however, there is no penalty on distributions: o made on or after the taxpayer reaches age 59 1/2; o made on or after the death of an owner; o attributable to the taxpayer's becoming disabled; o made as part of a series of substantially equal periodic payment (at least annually) for the life (or life expectancy) of the taxpayer or the joint lives (or joint life expectancies) of the taxpayer and his or her designated beneficiary; or o under certain immediate income annuities providing for substantially equal payments made at least annually. Other exceptions may be applicable under certain circumstances and special rules may be applicable in connection with the exceptions enumerated above. Also, additional exceptions apply to distributions from a Qualified Contract. You should consult a tax adviser with regard to exceptions from the penalty tax. ANNUITY PAYMENTS. Although tax consequences may vary depending on the payout option elected under an annuity contract, a portion of each annuity payment is generally not taxed and the remainder is taxed as ordinary income. The non-taxable portion of any annuity payment is generally determined in a manner that is designed to allow you to recover your investment in the contract ratably on a tax-free basis over the expected stream of annuity payments, as determined when annuity payments start. Once your investment in the contract has been fully recovered, however, the full amount of each annuity payment is subject to tax as ordinary income. In general, the amount of each payment under a variable annuity payment option that can be excluded from federal income tax is the remaining after-tax cost in the amount annuitized at the time such payments commence, divided by the number of expected payments, subject to certain adjustments. No deduction is permitted for any excess of such excludable amount for a year over the annuity payments actually received in that year. However, you may elect to increase the excludable amount attributable to future years by a ratable portion of such excess. Consult your tax adviser as to how to make such election and also as to how to treat the loss due to any unrecovered investment in the contract when the income stream is terminated. Once the investment in the contract has been recovered through the use of the excludable amount, the 71 entire amount of all future payments are includable in taxable income. The IRS has not furnished explicit guidance as to how the excludable amount is to be determined each year under variable income annuities that permit transfers between the fixed account and variable investment portfolios, as well as transfers between investment portfolios after the annuity starting date. Consult your tax adviser. TAXATION OF DEATH BENEFIT PROCEEDS. Amounts may be distributed from a Non-Qualified Contract because of your death or the death of the annuitant. Generally, such amounts are includible in the income of the recipient as follows: (i) if distributed in a lump sum, they are taxed in the same manner as a surrender of the contract, or (ii) if distributed under a payout option, they are taxed in the same way as annuity payments. See the Statement of Additional Information as well as "Death Benefit - General Death Benefit Provisions" in this prospectus for a general discussion on the federal income tax rules applicable to how death benefits must be distributed. TRANSFERS, ASSIGNMENTS OR EXCHANGES OF A CONTRACT. Where otherwise permitted under the terms of the contract, a transfer or assignment of ownership of a Non-Qualified Contract, the designation or change of an annuitant, the selection of certain maturity dates, or the exchange of a contract may result in certain adverse tax consequences to you that are not discussed herein. An owner contemplating any such transfer, assignment, exchange or event should consult a tax adviser as to the tax consequences. WITHHOLDING. Annuity distributions are generally subject to withholding for the recipient's federal income tax liability. Recipients can generally elect, however, not to have tax withheld from distributions. MULTIPLE CONTRACTS. The tax law provides that deferred annuities issued after October 21, 1988 by the same insurance company or an affiliate in the same calendar year to the same owner are combined for tax purposes. As a result, a greater portion of your withdrawals may be considered taxable income than you would otherwise expect. Please consult your own tax adviser. OWNERSHIP OF THE INVESTMENTS. In certain circumstances, owners of variable annuity contracts have been considered to be the owners of the assets of the underlying Separate Account for Federal income tax purposes due to their ability to exercise investment control over those assets. When this is the case, the contract owners have been currently taxed on income and gains attributable to the variable account assets. There is little guidance in this area, and some features of the contract, such as the number of funds available and the flexibility of the contract owner to allocate premium payments and transfer amounts among the funding options, have not been addressed in public rulings. While we believe that the contract does not give the contract owner investment control over Separate Account assets, we reserve the right to modify the contract as necessary to prevent a contract owner from being treated as the owner of the Separate Account assets supporting the contract. FURTHER INFORMATION. We believe that the contracts will qualify as annuity contracts for federal income tax purposes and the above discussion is based on that assumption. Further details can be found in the Statement of Additional Information under the heading "Tax Status of the Contracts." TAXATION OF QUALIFIED CONTRACTS The tax rules applicable to Qualified Contracts vary according to the type of retirement plan and the terms and conditions of the plan. Your rights under a Qualified Contract may be subject to the terms of the retirement plan itself, regardless of the terms of the Qualified Contract. Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions with respect to the contract comply with the law. INDIVIDUAL RETIREMENT ACCOUNTS (IRAS). IRAs, as defined in Section 408 of the Internal Revenue Code (Code), permit individuals to make annual contributions of up to the lesser of the applicable dollar amount for the year (for 2008, $5,000 plus, for an owner age 50 or older, $1,000) or the amount of compensation includible in the individual's gross income for the year. The contributions may be deductible in whole or in part, depending on the individual's income. Distributions from certain retirement plans may be "rolled over" into an IRA on a tax-deferred basis without regard to these limits. Amounts in the IRA (other than non-deductible contributions) are taxed when distributed from the IRA. A 10% penalty tax generally applies to distributions made before age 59 1/2, unless an exception applies. The Internal Revenue Service (IRS) has approved the forms of the IRA and SIMPLE IRA endorsements, when used with the contract and certain of its riders (including enhanced death benefits), but your 72 contract may differ from the approved version because of differences in riders or state insurance law requirements. Traditional IRAs/SEPs, SIMPLE IRAs and Roth IRAs may not invest in life insurance. The contract may provide death benefits that could exceed the greater of premiums paid or the account balance. The final required minimum distribution income tax regulations generally treat such benefits as part of the annuity contract and not as life insurance and require the value of such benefits to be included in the participant's interest that is subject to the required minimum distribution rules. SIMPLE IRA. A SIMPLE IRA permits certain small employers to establish SIMPLE plans as provided by Section 408(p) of the Code, under which employees may elect to defer to a SIMPLE IRA a percentage of compensation up to $10,500 for 2008. The sponsoring employer is generally required to make matching or non-elective contributions on behalf of employees. Distributions from SIMPLE IRA's are subject to the same restrictions that apply to IRA distributions and are taxed as ordinary income. Subject to certain exceptions, premature distributions prior to age 59 1/2 are subject to a 10% penalty tax, which is increased to 25% if the distribution occurs within the first two years after the commencement of the employee's participation in the plan. ROTH IRA. A Roth IRA, as described in Code section 408A, permits certain eligible individuals to make non-deductible contributions to a Roth IRA in cash or as a rollover or transfer from another Roth IRA or other IRA. A rollover from or conversion of an IRA to a Roth IRA is generally subject to tax, and other special rules apply. The owner may wish to consult a tax adviser before combining any converted amounts with any other Roth IRA contributions, including any other conversion amounts from other tax years. Distributions from a Roth IRA generally are not taxed, except that, once aggregate distributions exceed contributions to the Roth IRA, income tax and a 10% penalty tax may apply to distributions made (1) before age 59 1/2 (subject to certain exceptions) or (2) during the five taxable years starting with the year in which the first contribution is made to any Roth IRA. A 10% penalty tax may apply to amounts attributable to a conversion from an IRA if they are distributed during the five taxable years beginning with the year in which the conversion was made. PENSION PLANS. Corporate pension and profit-sharing plans under Section 401(a) of the Code allow corporate employers to establish various types of retirement plans for employees, and self-employed individuals to establish qualified plans for themselves and their employees. Adverse tax consequences to the retirement plan, the participant or both may result if the contract is transferred to any individual as a means to provide benefit payments, unless the plan complies with all the requirements applicable to such benefits prior to transferring the contract. The contract includes optional death benefits that in some cases may exceed the greater of the premium payments or the account value. TAX SHELTERED ANNUITIES. Tax Sheltered Annuities (TSA) that qualify under section 403(b) of the Code allow employees of certain Section 501(c)(3) organizations and public schools to exclude from their gross income the premium payments made, within certain limits, on a contract that will provide an annuity for the employee's retirement. These premium payments may be subject to FICA (social security) tax. Distributions of (1) salary reduction contributions made in years beginning after December 31, 1988; (2) earnings on those contributions; and (3) earnings on amounts held as of the close of the last year beginning before January 1, 1989, are not allowed prior to age 59 1/2, severance from employment, death or disability. Salary reduction contributions may also be distributed upon hardship, but would generally be subject to penalties. Income tax regulations issued in July 2007 will require certain fundamental changes to these arrangements including (a) a requirement that there be a written plan document in addition to the annuity contract (or section 403(b)(7) custodial account), (b) significant restrictions on the ability of participants to direct proceeds between 403(b) annuity contracts and (c) new restrictions on withdrawals of amounts attributable to contributions other than elective deferrals. The regulations are generally effective for taxable years beginning after December 31, 2008. However, certain aspects, including a proposed prohibition on use of new life insurance under section 403(b) arrangements and rules affecting payroll taxes on certain types of contributions are currently effective. Please note that, in light of the regulations, this contract is not available for purchase via a "90-24" transfer. If your contract was issued previously in a 90-24 transfer completed on or before September 24, 2007, we urge you to consult with your tax adviser prior to making additional purchase payments. 73 SECTION 457(B) PLANS. An eligible 457(b) plan, while not actually a qualified plan as that term is normally used, provides for certain eligible deferred compensation plans with respect to service for state governments, local governments, political subdivisions, agencies, instrumentalities and certain affiliates of such entities, and tax exempt organizations. Under such plans a participant may specify the form of investment in which his or her participation will be made. Under a non-governmental plan, which must be a tax-exempt entity under section 501(c) of the Code, all such investments, however, are owned by and are subject to, the claims of the general creditors of the sponsoring employer. In general, all amounts received under a non-governmental section 457(b) plan are taxable and are subject to federal income tax withholding as wages. SEPARATE ACCOUNT CHARGES FOR DEATH BENEFITS. For contracts purchased under section 401(a) plans or 403(b) plans, certain death benefits could conceivably be characterized as an incidental benefit, the amount of which is limited in any pension or profit-sharing plan. Because the death benefits, in certain cases, may exceed this limitation employers using the contract in connection with such plans should consult their tax adviser. Additionally, it is conceivable that the explicit charges for, or the amount of the mortality and expense charges allocable to, such benefits may be considered taxable distributions. OTHER TAX ISSUES. Qualified Contracts (including contracts under section 457(b) plans) have minimum distribution rules that govern the timing and amount of distributions. You should refer to your retirement plan, adoption agreement, or consult a tax adviser for more information about these distribution rules. Failure to meet such rules generally results in the imposition of a 50% excise tax on the amount that should have been, but was not, distributed. Final income tax regulations regarding minimum distribution requirements were released in June 2004. These regulations affect both deferred and income annuities. Under these new rules, effective with respect to minimum distributions required for the 2006 distribution year, in general, the value of all benefits under a deferred annuity (including death benefits in excess of account value, as well as all living benefits) must be added to the account value in computing the amount required to be distributed over the applicable period. The final required minimum distribution regulations permit income payments to increase due to "actuarial gain" which includes the investment performance of the underlying assets, as well as changes in actuarial factors and assumptions under certain conditions. Additionally, withdrawals may also be permitted under certain conditions. The new rules are not entirely clear, and you should consult with your own tax adviser to determine whether your variable income annuity will satisfy these rules for your own situation. Distributions from Qualified Contracts generally are subject to withholding for the owner's federal income tax liability. The withholding rate varies according to the type of distribution and the owner's tax status. The owner will be provided the opportunity to elect not to have tax withheld from distributions. "Eligible rollover distributions" from section 401(a), 403(a), 403(b) and governmental section 457(b) plans are subject to a mandatory federal income tax withholding of 20%. An eligible rollover distribution is any distribution to an employee (or employee's spouse or former spouse as beneficiary or alternate payee) from such a plan, except certain distributions such as distributions required by the Code, distributions in a specified annuity form or hardship distributions. The 20% withholding does not apply, however, if the employee chooses a "direct rollover" from the plan to a tax-qualified plan, IRA or tax sheltered annuity or to a governmental 457(b) plan that agrees to separately account for rollover contributions. Effective March 28, 2005, certain mandatory distributions made to participants in an amount in excess of $1,000 must be rolled over to an IRA designated by the Plan, unless the participant elects to receive it in cash or roll it over to a different IRA or eligible retirement plan of his or her own choosing. General transitional rules apply as to when plans have to be amended. Special effective date rules apply for governmental plans and church plans. COMMUTATION FEATURES UNDER ANNUITY PAYMENT OPTIONS. Please be advised that the tax consequences resulting from the election of an annuity payment option containing a commutation feature are uncertain and the IRS may determine that the taxable amount of annuity payments and withdrawals received for any year could be greater than or less than the taxable amount reported by us. The exercise of the commutation feature also may result in adverse tax consequences including: 74 o The imposition of a 10% penalty tax on the taxable amount of the commuted value, if the taxpayer has not attained age 59 1/2 at the time the withdrawal is made. This 10% penalty tax is in addition to the ordinary income tax on the taxable amount of the commuted value. o The retroactive imposition of the 10% penalty tax on annuity payments received prior to the taxpayer attaining age 59 1/2. o The possibility that the exercise of the commutation feature could adversely affect the amount excluded from federal income tax under any annuity payments made after such commutation. A payee should consult with his or her own tax adviser prior to electing to annuitize the contract and prior to exercising any commutation feature under an annuity payment option. FEDERAL ESTATE TAXES. While no attempt is being made to discuss the federal estate tax implications of the contract, you should keep in mind that the value of an annuity contract owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in the decedent's gross estate. Depending on the terms of the annuity contract, the value of the annuity included in the gross estate may be the value of the lump sum payment payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning adviser for more information. GENERATION-SKIPPING TRANSFER TAX. Under certain circumstances, the Code may impose a "generation-skipping transfer tax" when all or part of an annuity contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the contract owner. Regulations issued under the Code may require us to deduct the tax from your contract, or from any applicable payment, and pay it directly to the IRS. ANNUITY PURCHASE PAYMENTS BY NONRESIDENT ALIENS AND FOREIGN CORPORATIONS. The discussion above provides general information regarding U.S. federal income tax consequences to annuity purchasers that are U.S. citizens or residents. Purchasers that are not U.S. citizens or residents will generally be subject to the U.S. federal withholding tax on taxable distributions from annuity contracts at a 30% rate, unless a lower treaty rate applies. In addition, purchasers may be subject to state and/or municipal taxes and taxes that may be imposed by the purchaser's country of citizenship or residence. Prospective purchasers are advised to consult with a qualified tax adviser regarding U.S., state, and foreign taxation with respect to an annuity contract purchase. TAX BENEFITS RELATED TO THE ASSETS OF THE SEPARATE ACCOUNT We may be entitled to certain tax benefits related to the assets of the Separate Account. These tax benefits, which may include foreign tax credits and corporate dividends received deductions, are not passed back to the Separate Account or to contract owners because we are the owner of the assets from which the tax benefits are derived. POSSIBLE TAX LAW CHANGES Although the likelihood of legislative changes is uncertain, there is always the possibility that the tax treatment of the contract could change by legislation or otherwise. Consult a tax adviser with respect to legislative developments and their effect on the contract. We have the right to modify the contract in response to legislative changes that could otherwise diminish the favorable tax treatment that annuity contract owners currently receive. We make no guarantee regarding the tax status of the contract and do not intend the above discussion as tax advice. 11. OTHER INFORMATION METLIFE INVESTORS USA MetLife Investors USA Insurance Company (MetLife Investors USA) is a stock life insurance company founded on September 13, 1960, and organized under the laws of the State of Delaware. Its principal executive offices are located at 5 Park Plaza, Suite 1900, Irvine, CA 92614. MetLife Investors USA is authorized to transact the business of life insurance, including annuities, and is currently licensed to do business in all states (except New York) and the District of Columbia. On October 11, 2006, MetLife Investors USA became a wholly-owned subsidiary of MetLife Insurance Company of Connecticut. We changed our name to MetLife Investors USA Insurance Company on February 12, 2001. On December 31, 2002, MetLife Investors USA became an indirect subsidiary of MetLife, Inc., a listed company on the New York Stock Exchange. MetLife, Inc., through its subsidiaries and 75 affiliates, is a leading provider of insurance and other financial services to individual and institutional customers. We are a member of the Insurance Marketplace Standards Association ("IMSA"). Companies that belong to IMSA subscribe to a set of ethical standards covering the various aspects of sales and service for individually sold life insurance and annuities. THE SEPARATE ACCOUNT We have established a SEPARATE ACCOUNT, MetLife Investors USA Separate Account A (Separate Account), to hold the assets that underlie the contracts. Our Board of Directors adopted a resolution to establish the Separate Account under Delaware insurance law on May 29, 1980. We have registered the Separate Account with the Securities and Exchange Commission as a unit investment trust under the Investment Company Act of 1940. The Separate Account is divided into subaccounts. The assets of the Separate Account are held in our name on behalf of the Separate Account and legally belong to us. However, those assets that underlie the contracts, are not chargeable with liabilities arising out of any other business we may conduct. All the income, gains and losses (realized or unrealized) resulting from these assets are credited to or charged against the contracts and not against any other contracts we may issue. We reserve the right to transfer assets of the Separate Account to another account, and to modify the structure or operation of the Separate Account, subject to necessary regulatory approvals. If we do so, we guarantee that the modification will not affect your account value. The amount of the guaranteed death benefit that exceeds the account value is paid from our general account. In addition, portions of the contract's guaranteed living benefits payable may exceed the amount of the account value and be paid from our general account. Benefit amounts paid from the general account are subject to the claims-paying ability of MetLife Investors USA. DISTRIBUTOR We have entered into a distribution agreement with our affiliate, MetLife Investors Distribution Company (Distributor), 5 Park Plaza, Suite 1900, Irvine, CA 92614, for the distribution of the contracts. Distributor is a member of the Financial Industry Regulatory Authority (FINRA). FINRA maintains a Public Disclosure Program for investors. A brochure that includes information describing the Program is available by calling FINRA's Public Disclosure Program hotline at 1-800-289-9999, or by visiting FINRA's website at www.finra.org. Distributor, and in certain cases, we, have entered into selling agreements with other affiliated and unaffiliated selling firms for the sale of the contracts. We pay compensation to Distributor for sales of the contracts by selling firms. We also pay amounts to Distributor that may be used for its operating and other expenses, including the following sales expenses: compensation and bonuses for the Distributor's management team, advertising expenses, and other expenses of distributing the contracts. Distributor's management team also may be eligible for non-cash compensation items that we may provide jointly with Distributor. Non-cash items include conferences, seminars and trips (including travel, lodging and meals in connection therewith), entertainment, merchandise and other similar items. All of the investment portfolios make payments to Distributor under their distribution plans in consideration of services provided and expenses incurred by Distributor in distributing shares of the investment portfolios. (See "Fee Tables and Examples - Investment Portfolio Expenses" and the fund prospectuses.) These payments range from 0.15% to 0.55% of Separate Account assets invested in the particular investment portfolio. SELLING FIRMS As noted above, Distributor, and in certain cases, we, have entered into selling agreements with affiliated and unaffiliated selling firms for the sale of the contracts. Affiliated selling firms include Metropolitan Life Insurance Company (MLIC); New England Securities Corporation; Tower Square Securities, Inc.; and Walnut Street Securities, Inc. All selling firms receive commissions, and they may also receive some form of non-cash compensation. Certain selected selling firms receive additional compensation (described below under "Additional Compensation for Selected Selling Firms"). These commissions and other incentives or payments are not charged directly to contract owners or the Separate Account. We intend to recoup commissions and other sales expenses through fees and charges deducted under the contract or from our general account. A portion of the payments made to selling firms may be passed on to their sales representatives in 76 accordance with the selling firms' internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. COMPENSATION PAID TO SELLING FIRMS. We and Distributor pay compensation to all affiliated and unaffiliated selling firms in the form of commissions and may also provide certain types of non-cash compensation. The maximum commission payable for contract sales and additional purchase payments by selling firms is 8% of purchase payments. Some selling firms may elect to receive a lower commission when a purchase payment is made, along with annual trail commissions up to 1.20% of account value (less purchase payments received within the previous 12 months) for so long as the contract remains in effect or as agreed in the selling agreement. We also pay commissions when a contract owner elects to begin receiving regular income payments (referred to as "annuity payments"). (See "Annuity Payments - The Income Phase.") Distributor may also provide non-cash compensation items that we may provide jointly with Distributor. Non-cash items include expenses for conference or seminar trips and certain gifts. With respect to the contracts, the compensation paid to affiliated selling firms is generally not expected to exceed, on a present value basis, the aggregate amount of commission that is paid by Distributor to all other selling firms as noted above. SALES BY OUR AFFILIATES. As previously noted, we and Distributor may offer the contracts through retail selling firms that are affiliates of ours. The amount of compensation the affiliated selling firms pass on to their sales representatives is determined in accordance with their own internal compensation programs. These programs may also include other types of cash compensation, such as bonuses, equity awards (such as stock options), training allowances, supplementary salary, financing arrangements, marketing support, medical and other insurance benefits, retirement benefits, non-qualified deferred compensation plans and other benefits. For sales representatives of certain affiliates, the amount of this additional compensation is based primarily on the amount of proprietary products sold and serviced by the representative. Proprietary products are those issued by us or our affiliates. The managers who supervise these sales representatives may also be entitled to additional cash compensation based on the sale of proprietary products sold by their representatives. Because the additional cash compensation paid to these sales representatives and their managers is primarily based on sales of proprietary products, these sales representatives and their managers have an incentive to favor the sale of proprietary products over other products issued by non-affiliates. Sales representatives of our affiliate, MLIC, receive cash payments for the products they sell and service based upon a "gross dealer concession" model. The cash payment received by the sales representative is equal to a percentage of the gross dealer concession. For MLIC sales represenatives other than those in its MetLife Resources (MLR) division, the percentage is determined by a formula that takes into consideration the amount of proprietary products that the sales representative sells and services. The percentage could be as high as 100%. (MLR sales representatives receive compensation based on premiums and purchase payments applied to all products sold and serviced by the representative.) In addition, MetLife sales representatives may be entitled to the additional compensation described above based on sales of proprietary products. Because sales of proprietary products are a factor determining the percentage of gross dealer concession and/or the amount of additional compensation to which MLIC sales representatives are entitled, the sales representatives have an incentive to favor the sale of the contracts over other similar products issued by non-affiliates. In addition, because the MLIC sales managers' compensation is based upon the sales made by the sales representatives they supervise, the MLIC sales managers also have an incentive to favor the sale of proprietary products. We may also make certain payments to the business unit responsible for the operation of the distribution systems through which the contracts are sold. These amounts are part of the total compensation paid for the sale of the contracts. Ask your registered representative for further information about what payments your registered representative and the selling firm for which he or she works may receive in connection with your purchase of a contract. ADDITIONAL COMPENSATION FOR SELECTED SELLING FIRMS. We and Distributor have entered into distribution arrangements with certain selected selling firms. Under these arrangements we and Distributor may pay additional compensation to selected selling firms, including marketing allowances, introduction fees, persistency payments, preferred status fees and industry conference fees. Marketing allowances are periodic payments to certain 77 selling firms based on cumulative periodic (usually quarterly) sales of our variable insurance contracts (including the contracts). Introduction fees are payments to selling firms in connection with the addition of our products to the selling firm's line of investment products, including expenses relating to establishing the data communications systems necessary for the selling firm to offer, sell and administer our products. Persistency payments are periodic payments based on account values of our variable insurance contracts (including account values of the contracts) or other persistency standards. Preferred status fees are paid to obtain preferred treatment of the contracts in selling firms' marketing programs, which may include marketing services, participation in marketing meetings, listings in data resources and increased access to their sales representatives. Industry conference fees are amounts paid to cover in part the costs associated with sales conferences and educational seminars for selling firms' sales representatives. We and Distributor have entered into such distribution agreements with our affiliates, Tower Square Securities, Inc. and Walnut Street Securities, Inc., as well as unaffiliated selling firms identified in the Statement of Additional Information. We and Distributor may enter into similar arrangements with other affiliates, such as MLIC and New England Securities Corporation. The additional types of compensation discussed above are not offered to all selling firms. The terms of any particular agreement governing compensation may vary among selling firms and the amounts may be significant. The prospect of receiving, or the receipt of, additional compensation as described above may provide selling firms and/or their sales representatives with an incentive to favor sales of the contracts over other variable annuity contracts (or other investments) with respect to which selling firm does not receive additional compensation, or lower levels of additional compensation. You may wish to take such payment arrangements into account when considering and evaluating any recommendation relating to the contracts. For more information about any such additional compensation arrangements, ask your registered representative. (See the Statement of Additional Information - "Distribution" for a list of selling firms that received compensation during 2007, as well as the range of additional compensation paid.) REQUESTS AND ELECTIONS We will treat your request for a contract transaction, or your submission of a purchase payment, as received by us if we receive a request conforming to our administrative procedures or a payment at our Annuity Service Center before the close of regular trading on the New York Stock Exchange on that day. We will treat your submission of a purchase payment as received by us if we receive a payment at our Annuity Service Center (or a designee receives a payment in accordance with the designee's administrative procedures) before the close of regular trading on the New York Stock Exchange on that day. If we receive the request, or if we (or our designee) receive the payment, after the close of trading on the New York Stock Exchange on that day, or if the New York Stock Exchange is not open that day, then the request or payment will be treated as received on the next day when the New York Stock Exchange is open. Our Annuity Service Center is located at P.O. Box 10366, Des Moines, IA 50306-0366. If you send your purchase payments or transaction requests to an address other than the one we have designated for receipt of such purchase payments or requests, we may return the purchase payment to you, or there may be a delay in applying the purchase payment or transaction to your contract. Requests for service may be made: o Through your registered representative o By telephone at (800) 343-8496, between the hours of 7:30AM and 5:30PM Central Time Monday through Thursday and 7:30AM and 5:00PM Central Time on Friday o In writing to our Annuity Service Center o By fax at (515) 457-4400 or o By Internet at www.metlifeinvestors.com All other requests must be in written form, satisfactory to us. We will use reasonable procedures such as requiring certain identifying information, tape recording the telephone instructions, and providing written confirmation of the transaction, in order to confirm that instructions communicated by telephone, fax, Internet or other means are genuine. Any telephone, fax or Internet instructions reasonably believed by us to be genuine will be your responsibility, including losses arising from any errors in the communication of instructions. As a result of this policy, you will bear the risk of loss. If we do not employ reasonable procedures to confirm that instructions communicated by telephone, fax or Internet are genuine, we may be liable for any losses due to unauthorized or 78 fraudulent transactions. All other requests and elections under your contract must be in writing signed by the proper party, must include any necessary documentation and must be received at our Annuity Service Center to be effective. If acceptable to us, requests or elections relating to beneficiaries and ownership will take effect as of the date signed unless we have already acted in reliance on the prior status. We are not responsible for the validity of any written request or action. Telephone and computer systems may not always be available. Any telephone or computer system, whether it is yours, your service provider's, your agent's, or ours, can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may delay or prevent our processing of your request. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability under all circumstances. If you experience technical difficulties or problems, you should make your transaction request in writing to our Annuity Service Center. CONFIRMING TRANSACTIONS. We will send out written statements confirming that a transaction was recently completed. Unless you inform us of any errors within 60 days of receipt, we will consider these communications to be accurate and complete. OWNERSHIP OWNER. You, as the OWNER of the contract, have all the interest and rights under the contract. These rights include the right to: o change the beneficiary. o change the annuitant before the annuity date (subject to our underwriting and administrative rules). o assign the contract (subject to limitation). o change the payment option. o exercise all other rights, benefits, options and privileges allowed by the contract or us. The owner is as designated at the time the contract is issued, unless changed. Any change of owner is subject to our underwriting rules in effect at the time of the request. JOINT OWNER. The contract can be owned by JOINT OWNERS, limited to two natural persons. Upon the death of either owner, the surviving owner will be the primary beneficiary. Any other beneficiary designation will be treated as a contingent beneficiary unless otherwise indicated. BENEFICIARY. The BENEFICIARY is the person(s) or entity you name to receive any death benefit. The beneficiary is named at the time the contract is issued unless changed at a later date. Unless an irrevocable beneficiary has been named, you can change the beneficiary at any time before you die. If joint owners are named, unless you tell us otherwise, the surviving joint owner will be the primary beneficiary. Any other beneficiary designation will be treated as a contingent beneficiary (unless you tell us otherwise). ANNUITANT. The ANNUITANT is the natural person(s) on whose life we base annuity payments. You can change the annuitant at any time prior to the annuity date, unless an owner is not a natural person. Any reference to annuitant includes any joint annuitant under an annuity option. The owner and the annuitant do not have to be the same person except as required under certain sections of the Internal Revenue Code or under a GMIB rider (see "Living Benefits - Guaranteed Income Benefits"). ASSIGNMENT. You can assign a Non-Qualified Contract at any time during your lifetime. We will not be bound by the assignment until the written notice of the assignment is recorded by us. We will not be liable for any payment or other action we take in accordance with the contract before we record the assignment. AN ASSIGNMENT MAY BE A TAXABLE EVENT. If the contract is issued pursuant to a qualified plan, there may be limitations on your ability to assign the contract. LEGAL PROCEEDINGS In the ordinary course of business, MetLife Investors USA, similar to other life insurance companies, is involved in lawsuits (including class action lawsuits), arbitrations and other legal proceedings. Also, from time to time, state and federal regulators or other officials conduct formal and informal examinations or undertake other actions dealing with various aspects of the financial services and insurance industries. In some legal proceedings involving insurers, substantial damages have been sought and/or material settlement payments have been made. It is not possible to predict with certainty the ultimate outcome of any pending legal proceeding or regulatory action. However, MetLife Investors USA does not believe any such action or proceeding will have a material adverse effect upon the Separate Account or upon the ability of 79 MetLife Investors Distribution Company to perform its contract with the Separate Account or of MetLife Investors USA to meet its obligations under the contracts. FINANCIAL STATEMENTS Our financial statements and the financial statements of the Separate Account have been included in the SAI. TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Company Experts Custodian Distribution Calculation of Performance Information Annuity Provisions Tax Status of the Contracts Condensed Financial Information Financial Statements 80 APPENDIX A CONDENSED FINANCIAL INFORMATION The following charts list the Condensed Financial Information (the accumulation unit value information for the accumulation units outstanding) for contracts issued as of December 31, 2007. See "Purchase - Accumulation Units" in the prospectus for information on how accumulation unit values are calculated. Chart 1 presents accumulation unit values for the lowest possible combination of separate account product charges and death benefit rider charges, and Chart 2 presents accumulation unit values for the highest possible combination of such charges. The SAI contains the accumulation unit values for all other possible combinations of separate account product charges and death benefit rider charges. (See "Cover Page" for how to obtain a copy of the SAI.) CHART 1
1.30% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- MET INVESTORS SERIES TRUST GOLDMAN SACHS MID-CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998932 11.979835 751,289.5807 01/01/2005 to 12/31/2005 11.979835 13.308023 835,059.7337 01/01/2006 to 12/31/2006 13.308023 15.197948 1,031,962.6009 01/01/2007 to 12/31/2007 15.197948 15.465093 1,098,494.8422 ============ ==== ========== ========= ========= ============== HARRIS OAKMARK INTERNATIONAL SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 10.938098 3,561.3631 01/01/2002 to 12/31/2002 10.938098 8.843411 124,407.6562 01/01/2003 to 12/31/2003 8.843411 11.781709 1,944,440.9745 01/01/2004 to 12/31/2004 11.781709 14.015958 2,895,079.4680 01/01/2005 to 12/31/2005 14.015958 15.805131 2,751,090.9694 01/01/2006 to 12/31/2006 15.805131 20.102385 2,862,528.7388 01/01/2007 to 12/31/2007 20.102385 19.619410 2,901,790.3525 ============ ==== ========== ========= ========= ============== LAZARD MID-CAP SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 10.993732 5,514.8131 01/01/2002 to 12/31/2002 10.993732 9.677875 221,500.4020 01/01/2003 to 12/31/2003 9.677875 12.053335 1,424,037.3695 01/01/2004 to 12/31/2004 12.053335 13.610720 1,326,055.6245 01/01/2005 to 12/31/2005 13.610720 14.518126 1,231,425.6966 01/01/2006 to 12/31/2006 14.518126 16.434208 1,118,035.4493 01/01/2007 to 12/31/2007 16.434208 15.781153 1,013,729.6416 ============ ==== ========== ========= ========= ==============
A-1 APPENDIX A CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.30% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- LEGG MASON PARTNERS AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B) (FORMERLY LEGG MASON AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B)) 03/21/2001 to 12/31/2001 8.041634 7.313773 141,261.7815 01/01/2002 to 12/31/2002 7.313773 5.209721 646,613.5515 01/01/2003 to 12/31/2003 5.209721 6.731495 2,939,421.7723 01/01/2004 to 12/31/2004 6.731495 7.205146 2,913,112.4155 01/01/2005 to 12/31/2005 7.205146 8.077921 2,119,856.3566 01/01/2006 to 12/31/2006 8.077921 7.835262 1,864,011.0022 01/01/2007 to 12/31/2007 7.835262 7.908830 1,836,123.3787 ============ ==== ========== ========= ========= ============== LEGG MASON VALUE EQUITY SUB-ACCOUNT (CLASS B) 11/07/2005 to 12/31/2005 10.247456 10.627269 8,086.7340 01/01/2006 to 12/31/2006 10.627269 11.180916 193,857.7538 01/01/2007 to 12/31/2007 11.180916 10.383877 268,142.2292 ============ ==== ========== ========= ========= ============== LOOMIS SAYLES GLOBAL MARKETS SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988932 10.346428 31,867.7088 01/01/2007 to 12/31/2007 10.346428 13.056584 306,643.1941 ============ ==== ========== ========= ========= ============== LORD ABBETT BOND DEBENTURE SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 13.963875 13.989418 76,822.8145 01/01/2002 to 12/31/2002 13.989418 13.729566 549,399.5889 01/01/2003 to 12/31/2003 13.729566 16.148717 3,043,791.3676 01/01/2004 to 12/31/2004 16.148717 17.241340 2,951,732.6696 01/01/2005 to 12/31/2005 17.241340 17.273419 2,205,759.5223 01/01/2006 to 12/31/2006 17.273419 18.610680 2,004,715.4933 01/01/2007 to 12/31/2007 18.610680 19.572206 1,859,195.1431 ============ ==== ========== ========= ========= ============== LORD ABBETT GROWTH AND INCOME SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 39.123031 41.425267 71,763.1393 01/01/2002 to 12/31/2002 41.425267 33.480916 447,743.2489 01/01/2003 to 12/31/2003 33.480916 43.205327 1,597,992.6751 01/01/2004 to 12/31/2004 43.205327 48.039270 1,656,588.5973 01/01/2005 to 12/31/2005 48.039270 49.028917 1,378,873.7766 01/01/2006 to 12/31/2006 49.028917 57.004744 1,310,759.5018 01/01/2007 to 12/31/2007 57.004744 58.358469 1,226,195.9076 ============ ==== ========== ========= ========= ==============
A-2 APPENDIX A CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.30% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------ MET/AIM SMALL CAP GROWTH SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 11.855004 12,265.6895 01/01/2002 to 12/31/2002 11.855004 8.483365 332,911.4483 01/01/2003 to 12/31/2003 8.483365 11.628364 1,351,749.0063 01/01/2004 to 12/31/2004 11.628364 12.216087 2,216,614.2986 01/01/2005 to 12/31/2005 12.216087 13.055494 1,845,780.7359 01/01/2006 to 12/31/2006 13.055494 14.715075 1,681,372.8277 01/01/2007 to 12/31/2007 14.715075 16.132011 1,583,272.0426 ============ ==== ========== ========= ========= ============== MET/PUTNAM RESEARCH SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.137898 8.072222 72,909.1257 01/01/2002 to 12/31/2002 8.072222 6.309653 326,542.9084 01/01/2003 to 12/31/2003 6.309653 7.744019 823,530.0876 01/01/2004 to 11/19/2004 7.744019 7.962421 930,038.0768 ============ ==== ========== ========= ========= ============== MFS (Reg. TM) EMERGING MARKETS EQUITY SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988932 10.485576 88,014.0200 01/01/2007 to 12/31/2007 10.485576 14.139404 389,137.7826 ============ ==== ========== ========= ========= ============== MFS (Reg. TM) RESEARCH INTERNATIONAL SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.805686 8.387714 54,695.0381 01/01/2002 to 12/31/2002 8.387714 7.302286 483,704.5145 01/01/2003 to 12/31/2003 7.302286 9.517689 1,369,849.4587 01/01/2004 to 12/31/2004 9.517689 11.231988 2,488,309.3887 01/01/2005 to 12/31/2005 11.231988 12.908110 2,064,405.4810 01/01/2006 to 12/31/2006 12.908110 16.126532 2,095,887.3446 01/01/2007 to 12/31/2007 16.126532 18.032713 2,060,385.5071 ============ ==== ========== ========= ========= ============== MONEY MARKET SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 10.032441 10.162217 294,508.2021 01/01/2002 to 12/31/2002 10.162217 10.140914 670,575.2963 01/01/2003 to 12/31/2003 10.140914 10.053407 1,024,266.9615 01/01/2004 to 12/31/2004 10.053407 9.986845 1,038,005.1340 01/01/2005 to 04/30/2005 9.986845 10.003169 0.0000 ============ ==== ========== ========= ========= ============== NEUBERGER BERMAN REAL ESTATE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998932 12.842253 770,371.6137 01/01/2005 to 12/31/2005 12.842253 14.361086 620,485.4876 01/01/2006 to 12/31/2006 14.361086 19.503665 729,869.7516 01/01/2007 to 12/31/2007 19.503665 16.361582 625,721.8632 ============ ==== ========== ========= ========= ==============
A-3 APPENDIX A CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.30% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- OPPENHEIMER CAPITAL APPRECIATION SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.558733 8.473531 183,404.0859 01/01/2002 to 12/31/2002 8.473531 6.295082 1,277,509.7466 01/01/2003 to 12/31/2003 6.295082 7.986520 5,587,981.7744 01/01/2004 to 12/31/2004 7.986520 8.387919 6,348,848.3146 01/01/2005 to 12/31/2005 8.387919 8.670211 5,438,695.6071 01/01/2006 to 12/31/2006 8.670211 9.210340 4,963,489.8364 01/01/2007 to 12/31/2007 9.210340 10.389731 4,381,936.1057 ============ ==== ========== ========= ========= ============== PIMCO INFLATION PROTECTED BOND SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 10.000000 10.442908 2,658,017.4183 01/01/2004 to 12/31/2004 10.442908 11.236502 3,631,576.4996 01/01/2005 to 12/31/2005 11.236502 11.245632 2,758,740.9203 01/01/2006 to 12/31/2006 11.245632 11.143728 2,525,466.7768 01/01/2007 to 12/31/2007 11.143728 12.186705 2,361,952.3491 ============ ==== ========== ========= ========= ============== PIMCO TOTAL RETURN SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 10.161771 10.544458 262,930.6255 01/01/2002 to 12/31/2002 10.544458 11.375589 1,717,758.7339 01/01/2003 to 12/31/2003 11.375589 11.712172 4,747,365.6685 01/01/2004 to 12/31/2004 11.712172 12.136302 4,541,906.1125 01/01/2005 to 12/31/2005 12.136302 12.249240 4,194,421.7575 01/01/2006 to 12/31/2006 12.249240 12.637717 3,970,715.3475 01/01/2007 to 12/31/2007 12.637717 13.417201 3,792,176.8187 ============ ==== ========== ========= ========= ============== RAINIER LARGE CAP EQUITY SUB-ACCOUNT (CLASS B) 11/12/2007 to 12/31/2007 9.565877 9.985542 51,490.4133 ============ ==== ========== ========= ========= ============== RCM TECHNOLOGY SUB-ACCOUNT (CLASS B) (FORMERLY RCM GLOBAL TECHNOLOGY SUB-ACCOUNT (CLASS B)) 03/21/2001 to 12/31/2001 7.234270 6.098184 49,113.5010 01/01/2002 to 12/31/2002 6.098184 2.965659 351,078.3241 01/01/2003 to 12/31/2003 2.965659 4.612668 1,003,197.0985 01/01/2004 to 12/31/2004 4.612668 4.356604 1,811,654.0810 01/01/2005 to 12/31/2005 4.356604 4.774216 1,336,486.7661 01/01/2006 to 12/31/2006 4.774216 4.964676 1,217,275.7450 01/01/2007 to 12/31/2007 4.964676 6.444975 1,348,808.2667 ============ ==== ========== ========= ========= ==============
A-4 APPENDIX A CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.30% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- T. ROWE PRICE MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.099086 8.243089 122,870.7366 01/01/2002 to 12/31/2002 8.243089 4.553397 857,020.9813 01/01/2003 to 12/31/2003 4.553397 6.141416 3,875,360.9009 01/01/2004 to 12/31/2004 6.141416 7.142345 3,798,386.0730 01/01/2005 to 12/31/2005 7.142345 8.081594 4,168,208.3625 01/01/2006 to 12/31/2006 8.081594 8.469235 4,101,476.6397 01/01/2007 to 12/31/2007 8.469235 9.833670 3,861,948.9829 ============ ==== ========== ========= ========= ============== THIRD AVENUE SMALL CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2002 to 12/31/2002 10.000000 8.238014 217,902.1405 01/01/2003 to 12/31/2003 8.238014 11.499992 2,204,028.2289 01/01/2004 to 12/31/2004 11.499992 14.359765 2,789,605.9918 01/01/2005 to 12/31/2005 14.359765 16.368827 2,614,232.6949 01/01/2006 to 12/31/2006 16.368827 18.279602 2,569,424.3193 01/01/2007 to 12/31/2007 18.279602 17.497164 2,329,908.1628 ============ ==== ========== ========= ========= ============== TURNER MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998932 11.122514 651,276.7103 01/01/2005 to 12/31/2005 11.122514 12.226213 496,307.5290 01/01/2006 to 12/31/2006 12.226213 12.801545 492,284.4045 01/01/2007 to 12/31/2007 12.801545 15.686606 553,918.9023 ============ ==== ========== ========= ========= ============== VAN KAMPEN COMSTOCK SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 9.998932 10.482927 123,592.2670 01/01/2006 to 12/31/2006 10.482927 12.009028 388,804.9097 01/01/2007 to 12/31/2007 12.009028 11.557695 526,684.2776 ============ ==== ========== ========= ========= ============== METROPOLITAN SERIES FUND, INC. BLACKROCK MONEY MARKET SUB-ACCOUNT (CLASS B) (FORMERLY MONEY MARKET SUB-ACCOUNT (CLASS B)) 05/01/2005 to 12/31/2005 10.003238 10.115353 1,787,666.3266 01/01/2006 to 12/31/2006 10.115353 10.439484 2,652,583.4142 01/01/2007 to 12/31/2007 10.439484 10.800004 1,988,178.0359 ============ ==== ========== ========= ========= ============== DAVIS VENTURE VALUE SUB-ACCOUNT (CLASS E) 03/21/2001 to 12/31/2001 10.000000 10.164523 226,062.5443 01/01/2002 to 12/31/2002 10.164523 8.372638 1,454,877.2395 01/01/2003 to 12/31/2003 8.372638 10.804691 4,466,753.8811 01/01/2004 to 12/31/2004 10.804691 11.959652 7,052,746.9586 01/01/2005 to 12/31/2005 11.959652 13.002225 7,035,744.2983 01/01/2006 to 12/31/2006 13.002225 14.683664 6,858,303.6892 01/01/2007 to 12/31/2007 14.683664 15.135328 6,289,293.8889 ============ ==== ========== ========= ========= ==============
A-5 APPENDIX A CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.30% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------- HARRIS OAKMARK FOCUSED VALUE SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 10.000000 11.957073 161,189.7692 01/01/2002 to 12/31/2002 11.957073 10.732579 912,536.4123 01/01/2003 to 12/31/2003 10.732579 14.018909 3,128,901.9323 01/01/2004 to 12/31/2004 14.018909 15.173053 3,222,798.8875 01/01/2005 to 12/31/2005 15.173053 16.431581 2,899,320.6220 01/01/2006 to 12/31/2006 16.431581 18.194413 2,717,312.3747 01/01/2007 to 12/31/2007 18.194413 16.687600 2,403,404.8355 ============ ==== ========== ========= ========= =============== JENNISON GROWTH SUB-ACCOUNT (CLASS B) 05/01/2002 to 12/31/2002 10.000000 7.633197 430,856.6897 01/01/2003 to 12/31/2003 7.633197 9.771784 1,956,003.9889 01/01/2004 to 12/31/2004 9.771784 10.507294 2,509,951.1567 01/01/2005 to 12/31/2005 10.507294 11.776011 2,038,848.2797 01/01/2006 to 12/31/2006 11.776011 11.917701 1,965,486.7985 01/01/2007 to 12/31/2007 11.917701 13.102626 2,064,348.4206 ============ ==== ========== ========= ========= =============== METLIFE STOCK INDEX SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 10.852281 18,910.0961 01/01/2002 to 12/31/2002 10.852281 8.300023 374,833.1880 01/01/2003 to 12/31/2003 8.300023 10.476416 1,586,695.1489 01/01/2004 to 12/31/2004 10.476416 11.403676 2,766,944.4806 01/01/2005 to 12/31/2005 11.403676 11.749364 2,889,074.9741 01/01/2006 to 12/31/2006 11.749364 13.359298 2,682,914.1364 01/01/2007 to 12/31/2007 13.359298 13.841789 2,605,480.1759 ============ ==== ========== ========= ========= =============== WESTERN ASSET MANAGEMENT U.S. GOVERNMENT SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 15.969806 15.964032 6,938.4022 01/01/2006 to 12/31/2006 15.964032 16.375307 65,282.4384 01/01/2007 to 12/31/2007 16.375307 16.814588 143,538.5481 ============ ==== ========== ========= ========= =============== MET INVESTORS SERIES TRUST - ASSET ALLOCATION PROGRAM (CLASS B) METLIFE AGGRESSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.303038 10.693251 2,326,694.2040 01/01/2005 to 12/31/2005 10.693251 11.651175 5,310,394.4587 01/01/2006 to 12/31/2006 11.651175 13.070727 6,013,814.3879 01/01/2007 to 12/31/2007 13.070727 13.273444 5,847,450.7799 ============ ==== ========== ========= ========= =============== METLIFE BALANCED STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.103167 10.397106 14,344,105.0800 01/01/2005 to 12/31/2005 10.397106 10.994107 30,284,092.8176 01/01/2006 to 12/31/2006 10.994107 12.152378 39,319,947.5583 01/01/2007 to 12/31/2007 12.152378 12.580234 49,522,416.6533 ============ ==== ========== ========= ========= ===============
A-6 APPENDIX A CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.30% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------- METLIFE DEFENSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 9.943271 10.113107 1,394,500.7160 01/01/2005 to 12/31/2005 10.113107 10.430055 3,346,655.1997 01/01/2006 to 12/31/2006 10.430055 11.183762 4,179,011.9855 01/01/2007 to 12/31/2007 11.183762 11.691964 5,303,478.6896 ============ ==== ========== ========= ========= =============== METLIFE GROWTH STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.243077 10.608115 12,239,398.8200 01/01/2005 to 12/31/2005 10.608115 11.426958 26,220,599.1050 01/01/2006 to 12/31/2006 11.426958 12.813215 40,037,532.9256 01/01/2007 to 12/31/2007 12.813215 13.241565 55,415,178.8218 ============ ==== ========== ========= ========= =============== METLIFE MODERATE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.013225 10.233375 4,494,540.6410 01/01/2005 to 12/31/2005 10.233375 10.688727 10,046,993.4560 01/01/2006 to 12/31/2006 10.688727 11.630632 12,013,044.0543 01/01/2007 to 12/31/2007 11.630632 12.192163 14,749,472.3108 ============ ==== ========== ========= ========= ===============
A-7 APPENDIX A CONDENSED FINANCIAL INFORMATION (CONTINUED) CHART 2
1.90% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- MET INVESTORS SERIES TRUST GOLDMAN SACHS MID-CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998438 11.931716 465,390.7868 01/01/2005 to 12/31/2005 11.931716 13.175555 638,172.2854 01/01/2006 to 12/31/2006 13.175555 14.956929 796,969.2487 01/01/2007 to 12/31/2007 14.956929 15.128293 787,469.3823 ============ ==== ========== ========= ========= ============== HARRIS OAKMARK INTERNATIONAL SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 8.683960 11.625277 1,067,394.2768 01/01/2004 to 12/31/2004 11.625277 13.746952 1,667,703.1943 01/01/2005 to 12/31/2005 13.746952 15.409353 1,282,258.0943 01/01/2006 to 12/31/2006 15.409353 19.482154 1,443,863.0159 01/01/2007 to 12/31/2007 19.482154 18.899669 1,449,336.1099 ============ ==== ========== ========= ========= ============== LAZARD MID-CAP SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 9.653416 11.893317 828,392.8204 01/01/2004 to 12/31/2004 11.893317 13.349490 765,475.6868 01/01/2005 to 12/31/2005 13.349490 14.154574 603,413.4304 01/01/2006 to 12/31/2006 14.154574 15.927114 560,292.1986 01/01/2007 to 12/31/2007 15.927114 15.202206 776,179.4275 ============ ==== ========== ========= ========= ============== LEGG MASON PARTNERS AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B) (FORMERLY LEGG MASON AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B)) 05/01/2003 to 12/31/2003 5.448004 6.620031 1,802,196.0562 01/01/2004 to 12/31/2004 6.620031 7.043338 1,923,348.2733 01/01/2005 to 12/31/2005 7.043338 7.849430 1,230,788.4022 01/01/2006 to 12/31/2006 7.849430 7.568189 1,135,831.0174 01/01/2007 to 12/31/2007 7.568189 7.593294 1,049,433.6246 ============ ==== ========== ========= ========= ============== LEGG MASON VALUE EQUITY SUB-ACCOUNT (CLASS B) 11/07/2005 to 12/31/2005 10.246282 10.616793 14,518.9346 01/01/2006 to 12/31/2006 10.616793 11.103240 778,942.9631 01/01/2007 to 12/31/2007 11.103240 10.249680 927,582.9383 ============ ==== ========== ========= ========= ============== LOOMIS SAYLES GLOBAL MARKETS SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988438 10.304828 24,678.2581 01/01/2007 to 12/31/2007 10.304828 12.925932 226,717.8612 ============ ==== ========== ========= ========= ==============
A-8 APPENDIX A CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.90% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------- LORD ABBETT BOND DEBENTURE SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 14.542867 15.881558 1,711,235.4675 01/01/2004 to 12/31/2004 15.881558 16.854422 1,700,183.8269 01/01/2005 to 12/31/2005 16.854422 16.785051 1,126,430.5272 01/01/2006 to 12/31/2006 16.785051 17.976644 1,086,758.7958 01/01/2007 to 12/31/2007 17.976644 18.791730 1,042,212.6471 ============ ==== ========== ========= ========= ============== LORD ABBETT GROWTH AND INCOME SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 34.192095 42.490294 1,028,814.3410 01/01/2004 to 12/31/2004 42.490294 46.960946 1,127,359.5546 01/01/2005 to 12/31/2005 46.960946 47.642491 838,033.3523 01/01/2006 to 12/31/2006 47.642491 55.062455 832,858.1777 01/01/2007 to 12/31/2007 55.062455 56.030982 787,206.9374 ============ ==== ========== ========= ========= ============== MET/AIM SMALL CAP GROWTH SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 8.639989 11.473990 754,676.3210 01/01/2004 to 12/31/2004 11.473990 11.981598 1,280,199.2526 01/01/2005 to 12/31/2005 11.981598 12.728544 820,853.3167 01/01/2006 to 12/31/2006 12.728544 14.260960 740,367.1024 01/01/2007 to 12/31/2007 14.260960 15.540130 658,878.2034 ============ ==== ========== ========= ========= ============== MET/PUTNAM RESEARCH SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 6.358161 7.615832 491,229.4686 01/01/2004 to 11/19/2004 7.615832 7.789155 628,014.4597 ============ ==== ========== ========= ========= ============== MFS (Reg. TM) EMERGING MARKETS EQUITY SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988438 10.443386 61,894.0304 01/01/2007 to 12/31/2007 10.443386 13.997877 201,857.8366 ============ ==== ========== ========= ========= ============== MFS (Reg. TM) RESEARCH INTERNATIONAL SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 7.257269 9.360152 668,332.2299 01/01/2004 to 12/31/2004 9.360152 10.979856 1,371,702.0629 01/01/2005 to 12/31/2005 10.979856 12.543118 1,048,425.7713 01/01/2006 to 12/31/2006 12.543118 15.577096 1,324,091.3409 01/01/2007 to 12/31/2007 15.577096 17.313567 1,552,782.6006 ============ ==== ========== ========= ========= ============== MONEY MARKET SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 9.990594 9.887065 754,276.1323 01/01/2004 to 12/31/2004 9.887065 9.762689 569,937.6104 01/01/2005 to 04/30/2005 9.762689 9.759537 3,293.9145 ============ ==== ========== ========= ========= ==============
A-9 APPENDIX A CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.90% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- NEUBERGER BERMAN REAL ESTATE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998438 12.790697 448,931.1752 01/01/2005 to 12/31/2005 12.790697 14.218141 457,667.2761 01/01/2006 to 12/31/2006 14.218141 19.194490 706,727.4837 01/01/2007 to 12/31/2007 19.194490 16.005296 838,701.4795 ============ ==== ========== ========= ========= ============== OPPENHEIMER CAPITAL APPRECIATION SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 6.476827 7.854290 3,492,160.9173 01/01/2004 to 12/31/2004 7.854290 8.199570 4,131,977.5777 01/01/2005 to 12/31/2005 8.199570 8.424977 2,949,553.7719 01/01/2006 to 12/31/2006 8.424977 8.896428 2,832,565.6219 01/01/2007 to 12/31/2007 8.896428 9.975273 2,475,304.2300 ============ ==== ========== ========= ========= ============== PIMCO INFLATION PROTECTED BOND SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 10.000000 10.401088 1,548,238.9531 01/01/2004 to 12/31/2004 10.401088 11.124393 2,348,867.5763 01/01/2005 to 12/31/2005 11.124393 11.067004 1,872,092.1192 01/01/2006 to 12/31/2006 11.067004 10.901283 1,987,044.5726 01/01/2007 to 12/31/2007 10.901283 11.849895 2,236,803.2418 ============ ==== ========== ========= ========= ============== PIMCO TOTAL RETURN SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 11.491153 11.518393 2,164,984.1662 01/01/2004 to 12/31/2004 11.518393 11.863917 2,064,108.2669 01/01/2005 to 12/31/2005 11.863917 11.902882 1,662,486.0267 01/01/2006 to 12/31/2006 11.902882 12.207117 2,342,787.3303 01/01/2007 to 12/31/2007 12.207117 12.882116 3,224,156.4153 ============ ==== ========== ========= ========= ============== RAINIER LARGE CAP EQUITY SUB-ACCOUNT (CLASS B) 11/12/2007 to 12/31/2007 9.563975 9.975512 35,042.6801 ============ ==== ========== ========= ========= ============== RCM TECHNOLOGY SUB-ACCOUNT (CLASS B) (FORMERLY RCM GLOBAL TECHNOLOGY SUB-ACCOUNT (CLASS B)) 05/01/2003 to 12/31/2003 3.270487 4.536216 786,150.0851 01/01/2004 to 12/31/2004 4.536216 4.258682 1,231,242.5910 01/01/2005 to 12/31/2005 4.258682 4.639082 948,466.6679 01/01/2006 to 12/31/2006 4.639082 4.795367 870,261.8653 01/01/2007 to 12/31/2007 4.795367 6.187776 868,987.5489 ============ ==== ========== ========= ========= ============== T. ROWE PRICE MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 4.708135 6.039673 2,197,630.1348 01/01/2004 to 12/31/2004 6.039673 6.981901 1,971,653.9916 01/01/2005 to 12/31/2005 6.981901 7.852952 1,749,537.6740 01/01/2006 to 12/31/2006 7.852952 8.180513 1,877,045.2415 01/01/2007 to 12/31/2007 8.180513 9.441318 1,687,942.5475 ============ ==== ========== ========= ========= ==============
A-10 APPENDIX A CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.90% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------- THIRD AVENUE SMALL CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 8.429221 11.385490 1,287,783.9731 01/01/2004 to 12/31/2004 11.385490 14.131572 1,715,706.2330 01/01/2005 to 12/31/2005 14.131572 16.012689 1,610,231.6767 01/01/2006 to 12/31/2006 16.012689 17.775216 1,771,398.0074 01/01/2007 to 12/31/2007 17.775216 16.911972 1,570,748.0957 ============ ==== ========== ========= ========= ============== TURNER MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998438 11.077804 425,828.7454 01/01/2005 to 12/31/2005 11.077804 12.104461 252,330.7747 01/01/2006 to 12/31/2006 12.104461 12.598415 414,552.4863 01/01/2007 to 12/31/2007 12.598415 15.344884 405,066.0009 ============ ==== ========== ========= ========= ============== VAN KAMPEN COMSTOCK SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 9.998438 10.440811 81,993.7821 01/01/2006 to 12/31/2006 10.440811 11.889440 287,564.3432 01/01/2007 to 12/31/2007 11.889440 11.373762 619,909.5147 ============ ==== ========== ========= ========= ============== METROPOLITAN SERIES FUND, INC. BLACKROCK MONEY MARKET SUB-ACCOUNT (CLASS B) (FORMERLY MONEY MARKET SUB-ACCOUNT (CLASS B)) 05/01/2005 to 12/31/2005 9.759123 9.829323 745,305.1838 01/01/2006 to 12/31/2006 9.829323 10.083779 959,252.7544 01/01/2007 to 12/31/2007 10.083779 10.369277 2,552,182.5580 ============ ==== ========== ========= ========= ============== DAVIS VENTURE VALUE SUB-ACCOUNT (CLASS E) 05/01/2003 to 12/31/2003 8.466410 10.625867 2,611,291.2113 01/01/2004 to 12/31/2004 10.625867 11.691186 3,771,622.5577 01/01/2005 to 12/31/2005 11.691186 12.634573 2,990,969.8038 01/01/2006 to 12/31/2006 12.634573 14.183373 2,926,032.1850 01/01/2007 to 12/31/2007 14.183373 14.531708 2,645,006.5433 ============ ==== ========== ========= ========= ============== HARRIS OAKMARK FOCUSED VALUE SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 10.824616 13.787013 2,059,838.4388 01/01/2004 to 12/31/2004 13.787013 14.832557 2,192,766.3823 01/01/2005 to 12/31/2005 14.832557 15.967065 1,837,384.5287 01/01/2006 to 12/31/2006 15.967065 17.574617 1,664,990.4354 01/01/2007 to 12/31/2007 17.574617 16.022131 1,327,881.8231 ============ ==== ========== ========= ========= ============== JENNISON GROWTH SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 8.028934 9.674439 1,172,461.3599 01/01/2004 to 12/31/2004 9.674439 10.340233 1,645,901.3429 01/01/2005 to 12/31/2005 10.340233 11.519694 1,126,690.4531 01/01/2006 to 12/31/2006 11.519694 11.588731 1,222,537.2190 01/01/2007 to 12/31/2007 11.588731 12.664321 1,152,722.9121 ============ ==== ========== ========= ========= ==============
A-11 APPENDIX A CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.90% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------- METLIFE STOCK INDEX SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 8.560748 10.337295 662,457.2601 01/01/2004 to 12/31/2004 10.337295 11.184770 1,062,486.9123 01/01/2005 to 12/31/2005 11.184770 11.455096 948,385.9606 01/01/2006 to 12/31/2006 11.455096 12.947028 927,907.6398 01/01/2007 to 12/31/2007 12.947028 13.333947 811,550.3591 ============ ==== ========== ========= ========= =============== WESTERN ASSET MANAGEMENT U.S. GOVERNMENT SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 14.993974 14.929039 18,584.4022 01/01/2006 to 12/31/2006 14.929039 15.222294 106,625.8664 01/01/2007 to 12/31/2007 15.222294 15.536642 140,960.3651 ============ ==== ========== ========= ========= =============== MET INVESTORS SERIES TRUST - ASSET ALLOCATION PROGRAM (CLASS B) METLIFE AGGRESSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.299826 10.683074 1,069,672.4010 01/01/2005 to 12/31/2005 10.683074 11.570684 3,214,740.0473 01/01/2006 to 12/31/2006 11.570684 12.903002 4,398,997.4450 01/01/2007 to 12/31/2007 12.903002 13.024293 4,667,961.0060 ============ ==== ========== ========= ========= =============== METLIFE BALANCED STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.100015 10.387206 8,807,823.5290 01/01/2005 to 12/31/2005 10.387206 10.918136 17,721,069.7741 01/01/2006 to 12/31/2006 10.918136 11.996419 24,085,573.8268 01/01/2007 to 12/31/2007 11.996419 12.344089 25,810,255.4351 ============ ==== ========== ========= ========= =============== METLIFE DEFENSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 9.940166 10.103473 586,448.2435 01/01/2005 to 12/31/2005 10.103473 10.357964 1,408,916.6816 01/01/2006 to 12/31/2006 10.357964 11.040211 2,194,364.1670 01/01/2007 to 12/31/2007 11.040211 11.472478 2,881,371.6356 ============ ==== ========== ========= ========= =============== METLIFE GROWTH STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.239883 10.598018 5,966,809.4160 01/01/2005 to 12/31/2005 10.598018 11.348007 14,686,703.6966 01/01/2006 to 12/31/2006 11.348007 12.648785 23,609,063.4459 01/01/2007 to 12/31/2007 12.648785 12.993010 30,109,928.2965 ============ ==== ========== ========= ========= =============== METLIFE MODERATE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.010099 10.223628 2,954,333.1140 01/01/2005 to 12/31/2005 10.223628 10.614857 6,636,215.7766 01/01/2006 to 12/31/2006 10.614857 11.481355 8,463,388.9588 01/01/2007 to 12/31/2007 11.481355 11.963296 10,373,135.2116 ============ ==== ========== ========= ========= ===============
A-12 APPENDIX A CONDENSED FINANCIAL INFORMATION (CONTINUED) DISCONTINUED INVESTMENT PORTFOLIOS. The following investment portfolios are no longer available for allocations of new purchase payments or transfers of account value (excluding rebalancing and dollar cost averaging programs in existence at the time of closing): (a) Met Investors Series Trust: Oppenheimer Capital Appreciation Portfolio (Class B) (closed effective November 12, 2007); and (b) Met Investors Series Trust: Goldman Sachs Mid Cap Value Portfolio (Class B) (closed effective April 28, 2008). A-13 APPENDIX B PARTICIPATING INVESTMENT PORTFOLIOS Below are the advisers and subadvisers and investment objectives of each investment portfolio available under the contract. The fund prospectuses contain more complete information, including a description of the investment objectives, policies, restrictions and risks. THERE CAN BE NO ASSURANCE THAT THE INVESTMENT OBJECTIVES WILL BE ACHIEVED. MET INVESTORS SERIES TRUST (CLASS B OR, AS NOTED, CLASS C) Met Investors Series Trust is managed by Met Investors Advisory, LLC, which is an affiliate of MetLife Investors USA. Met Investors Series Trust is a mutual fund with multiple portfolios. The following Class B or, as noted, Class C portfolios are available under the contract: AMERICAN FUNDS BOND PORTFOLIO (CLASS C) SUBADVISER: Capital Research and Management Company INVESTMENT OBJECTIVE: The American Funds Bond Portfolio seeks to maximize current income and preserve capital. AMERICAN FUNDS GROWTH PORTFOLIO (CLASS C) SUBADVISER: Capital Research and Management Company INVESTMENT OBJECTIVE: The American Funds Growth Portfolio seeks to achieve growth of capital. AMERICAN FUNDS INTERNATIONAL PORTFOLIO (CLASS C) SUBADVISER: Capital Research and Management Company INVESTMENT OBJECTIVE: The American Funds International Portfolio seeks to achieve growth of capital. BLACKROCK HIGH YIELD PORTFOLIO SUBADVISER: BlackRock Financial Management, Inc. INVESTMENT OBJECTIVE: The BlackRock High Yield Portfolio seeks to maximize total return, consistent with income generation and prudent investment management. CLARION GLOBAL REAL ESTATE PORTFOLIO (formerly Neuberger Berman Real Estate Portfolio) SUBADVISER: ING Clarion Real Estate Securities L.P. (formerly Neuberger Berman Management, Inc.) INVESTMENT OBJECTIVE: The Clarion Global Real Estate Portfolio seeks to provide total return through investment in real estate securities, emphasizing both capital appreciation and current income. HARRIS OAKMARK INTERNATIONAL PORTFOLIO SUBADVISER: Harris Associates L.P. INVESTMENT OBJECTIVE: The Harris Oakmark International Portfolio seeks long-term capital appreciation. LAZARD MID CAP PORTFOLIO SUBADVISER: Lazard Asset Management LLC INVESTMENT OBJECTIVE: The Lazard Mid-Cap Portfolio seeks long-term growth of capital. B-1 LEGG MASON PARTNERS AGGRESSIVE GROWTH PORTFOLIO SUBADVISER: ClearBridge Advisors, LLC INVESTMENT OBJECTIVE: The Legg Mason Partners Aggressive Growth Portfolio seeks capital appreciation. LEGG MASON VALUE EQUITY PORTFOLIO SUBADVISER: Legg Mason Capital Management, Inc. INVESTMENT OBJECTIVE: The Legg Mason Value Equity Portfolio seeks long-term growth of capital. LOOMIS SAYLES GLOBAL MARKETS PORTFOLIO SUBADVISER: Loomis, Sayles & Company, L.P. INVESTMENT OBJECTIVE: The Loomis Sayles Global Markets Portfolio seeks high total investment return through a combination of capital appreciation and income. LORD ABBETT BOND DEBENTURE PORTFOLIO SUBADVISER: Lord, Abbett & Co. LLC INVESTMENT OBJECTIVE: The Lord Abbett Bond Debenture Portfolio seeks high current income and the opportunity for capital appreciation to produce a high total return. LORD ABBETT GROWTH AND INCOME PORTFOLIO SUBADVISER: Lord, Abbett & Co. LLC INVESTMENT OBJECTIVE: The Lord Abbett Growth and Income Portfolio seeks long-term growth of capital and income without excessive fluctuations in market value. LORD ABBETT MID CAP VALUE PORTFOLIO SUBADVISER: Lord, Abbett & Co. LLC INVESTMENT OBJECTIVE: The Lord Abbett Mid Cap Value Portfolio seeks capital appreciation through investments primarily in equity securities which are believed to be undervalued in the marketplace. MET/AIM SMALL CAP GROWTH PORTFOLIO SUBADVISER: Invesco Aim Capital Management, Inc. INVESTMENT OBJECTIVE: The Met/AIM Small Cap Growth Portfolio seeks long-term growth of capital. MET/FRANKLIN MUTUAL SHARES PORTFOLIO SUBADVISER: Franklin Mutual Advisers, LLC INVESTMENT OBJECTIVE: The Met/Franklin Mutual Shares Portfolio seeks capital appreciation, which may occasionally be short-term. The portfolio's secondary investment objective is income. MFS (Reg. TM) EMERGING MARKETS EQUITY PORTFOLIO SUBADVISER: Massachusetts Financial Services Company INVESTMENT OBJECTIVE: The MFS (Reg. TM) Emerging Markets Equity Portfolio seeks capital appreciation. MFS (Reg. TM) RESEARCH INTERNATIONAL PORTFOLIO SUBADVISER: Massachusetts Financial Services Company INVESTMENT OBJECTIVE: The MFS (Reg. TM) Research International Portfolio seeks capital appreciation. PIMCO INFLATION PROTECTED BOND PORTFOLIO SUBADVISER: Pacific Investment Management Company LLC INVESTMENT OBJECTIVE: The PIMCO Inflation Protected Bond Portfolio seeks to provide maximum real return, consistent with preservation of capital and prudent investment management. PIMCO TOTAL RETURN PORTFOLIO SUBADVISER: Pacific Investment Management Company LLC INVESTMENT OBJECTIVE: The PIMCO Total Return Portfolio seeks maximum total return, consistent with the preservation of capital and prudent investment management. RAINIER LARGE CAP EQUITY PORTFOLIO SUBADVISER: Rainier Investment Management, Inc. INVESTMENT OBJECTIVE: The Rainier Large Cap Equity Portfolio seeks to maximize long-term capital appreciation. B-2 RCM TECHNOLOGY PORTFOLIO SUBADVISER: RCM Capital Management LLC INVESTMENT OBJECTIVE: The RCM Technology Portfolio seeks capital appreciation; no consideration is given to income. T. ROWE PRICE MID CAP GROWTH PORTFOLIO SUBADVISER: T. Rowe Price Associates, Inc. INVESTMENT OBJECTIVE: The T. Rowe Price Mid-Cap Growth Portfolio seeks long-term growth of capital. THIRD AVENUE SMALL CAP VALUE PORTFOLIO SUBADVISER: Third Avenue Management LLC INVESTMENT OBJECTIVE: The Third Avenue Small Cap Value Portfolio seeks long-term capital appreciation. TURNER MID CAP GROWTH PORTFOLIO SUBADVISER: Turner Investment Partners, Inc. INVESTMENT OBJECTIVE: The Turner Mid-Cap Growth Portfolio seeks capital appreciation. VAN KAMPEN COMSTOCK PORTFOLIO SUBADVISER: Morgan Stanley Investment Management, Inc., doing business as Van Kampen INVESTMENT OBJECTIVE: The Van Kampen Comstock Portfolio seeks capital growth and income. METROPOLITAN SERIES FUND, INC. (CLASS B OR, AS NOTED, CLASS E) Metropolitan Series Fund, Inc. is a mutual fund with multiple portfolios. MetLife Advisers, LLC, an affiliate of MetLife Investors USA, is the investment adviser to the portfolios. The following Class B or, as noted, Class E portfolios are available under the contract: BLACKROCK MONEY MARKET PORTFOLIO SUBADVISER: BlackRock Advisors, LLC INVESTMENT OBJECTIVE: The BlackRock Money Market Portfolio seeks a high level of current income consistent with preservation of capital. An investment in the BlackRock Money Market Portfolio is not insured or guaranteed by the Federal Deposit Insurance Company or any other government agency. Although the BlackRock Money Market Portfolio seeks to preserve the value of your investment at $100 per share, it is possible to lose money by investing in the BlackRock Money Market Portfolio. During extended periods of low interest rates, the yields of the BlackRock Money Market Portfolio may become extremely low and possibly negative. DAVIS VENTURE VALUE PORTFOLIO (CLASS E) SUBADVISER: Davis Selected Advisers, L.P. Davis Selected Advisers, Inc., L.P. may delegate any of its responsibilities to Davis Selected Advisers - NY, Inc., a wholly-owned subsidiary. INVESTMENT OBJECTIVE: The Davis Venture Value Portfolio seeks growth of capital. HARRIS OAKMARK FOCUSED VALUE PORTFOLIO SUBADVISER: Harris Associates L.P. INVESTMENT OBJECTIVE: The Harris Oakmark Focused Value Portfolio seeks long-term capital appreciation. JENNISON GROWTH PORTFOLIO SUBADVISER: Jennison Associates LLC INVESTMENT OBJECTIVE: The Jennison Growth Portfolio seeks long-term growth of capital. B-3 METLIFE STOCK INDEX PORTFOLIO SUBADVISER: MetLife Investment Advisors Company, LLC INVESTMENT OBJECTIVE: The MetLife Stock Index Portfolio seeks to equal the performance of the Standard & Poor's 500 (Reg. TM) Composite Stock Price Index. WESTERN ASSET MANAGEMENT U.S. GOVERNMENT PORTFOLIO SUBADVISER: Western Asset Management Company INVESTMENT OBJECTIVE: The Western Asset Management U.S. Government Portfolio seeks to maximize total return consistent with preservation of capital and maintenance of liquidity. MET INVESTORS SERIES TRUST - METLIFE ASSET ALLOCATION PROGRAM (CLASS B) In addition to the Met Investors Series Trust Portfolios listed above, the following Class B portfolios managed by Met Investors Advisory, LLC are available under the contract: METLIFE DEFENSIVE STRATEGY PORTFOLIO INVESTMENT OBJECTIVE: The MetLife Defensive Strategy Portfolio seeks to provide a high level of current income with growth of capital, a secondary objective. METLIFE MODERATE STRATEGY PORTFOLIO INVESTMENT OBJECTIVE: The MetLife Moderate Strategy Portfolio seeks to provide a high total return in the form of income and growth of capital, with a greater emphasis on income. METLIFE BALANCED STRATEGY PORTFOLIO INVESTMENT OBJECTIVE: The MetLife Balanced Strategy Portfolio seeks to provide a balance between a high level of current income and growth of capital with a greater emphasis on growth of capital. METLIFE GROWTH STRATEGY PORTFOLIO INVESTMENT OBJECTIVE: The MetLife Growth Strategy Portfolio seeks to provide growth of capital. METLIFE AGGRESSIVE STRATEGY PORTFOLIO INVESTMENT OBJECTIVE: The MetLife Aggressive Strategy Portfolio seeks to provide growth of capital. MET INVESTORS SERIES TRUST - AMERICAN FUNDS ASSET ALLOCATION PORTFOLIOS (CLASS C) In addition to the Met Investors Series Trust portfolios listed above, the following Class C portfolios managed by Met Investors Advisory, LLC are also available under the contract: AMERICAN FUNDS MODERATE ALLOCATION PORTFOLIO INVESTMENT OBJECTIVE: The American Funds Moderate Allocation Portfolio seeks a high total return in the form of income and growth of capital, with a greater emphasis on income. AMERICAN FUNDS BALANCED ALLOCATION PORTFOLIO INVESTMENT OBJECTIVE: The American Funds Balanced Allocation Portfolio seeks a balance between a high level of current income and growth of capital with a greater emphasis on growth of capital. AMERICAN FUNDS GROWTH ALLOCATION PORTFOLIO INVESTMENT OBJECTIVE: The American Funds Growth Allocation Portfolio seeks growth of capital. MET INVESTORS SERIES TRUST - FRANKLIN TEMPLETON ASSET ALLOCATION PORTFOLIO (CLASS B) In addition to the Met Investors Series Trust portfolios listed above, the following Class B portfolio managed by Met Investors Advisory, LLC is also available under the contract: MET/FRANKLIN TEMPLETON FOUNDING STRATEGY PORTFOLIO INVESTMENT OBJECTIVE: The Met/Franklin Templeton Founding Strategy Portfolio primarily seeks capital appreciation and secondarily seeks income. B-4 APPENDIX C EDCA EXAMPLES WITH MULTIPLE PURCHASE PAYMENTS In order to show how the EDCA program works, we have created some examples. The examples are purely hypothetical and are for illustrative purposes only. The interest rate earned in an EDCA account will be the guaranteed minimum interest rate, plus any additional interest which we may declare from time to time. In addition, each bucket attributable to a subsequent purchase payment will earn interest at the then-current interest rate applied to new allocations to an EDCA account of the same monthly term. 6-MONTH EDCA The following example demonstrates how the 6-month Enhanced Dollar Cost Averaging (EDCA) program operates when multiple purchase payments are allocated to the program. The example assumes that a $12,000 purchase payment is allocated to the EDCA program at the beginning of the first month and the first transfer of $2,000 also occurs on that date. The $10,000 remaining after the EDCA transfer is allocated to the 1st Payment Bucket where it is credited with a 5% effective annual interest rate. The EDCA transfer amount of $2,000 is determined by dividing the $12,000 allocation amount by 6 (the number of months in the EDCA program). Thereafter, a $2,000 transfer is made from the EDCA at the beginning of each month. Amounts remaining in the EDCA Account Value are accumulated at the EDCA interest rate using the following formula: Account Value 1st Payment Bucket (month 2) = Account Value 1st Payment Bucket (month 1) x (1+EDCA Rate)(1/12) - EDCA Transfer Amount At the beginning of the 4th month, a second purchase payment of $6,000 is allocated to the EDCA program. The entire $6,000 is allocated to the 2nd Payment Bucket where it is credited with a 4% effective annual interest rate. This second purchase payment triggers an increase in the EDCA transfer amount to $3,000. The increased EDCA transfer amount is determined by adding $1,000 (the $6,000 allocation amount divided by 6) to the current EDCA transfer amount. The $3,000 monthly EDCA transfers will first be applied against the account value in the 1st Payment Bucket until exhausted and then against the account value in the 2nd Payment Bucket until it is exhausted.
---- Account Values---- Beg of Amount Allocated Actual EDCA 1st Payment 2nd Payment Month to EDCA EDCA Transfer Account Value Bucket Bucket -------- ------------------ --------------- --------------- ------------- ------------ 1 12000 2000 10000 10000 2 2000 8041 8041 3 2000 6074 6074 4 6000 3000 9098 3098 6000 5 3000 6131 111 6020 6 3000 3151 0 3151 7 3000 161 0 161 8 162 0 0 0
C-1 12-MONTH EDCA The following example demonstrates how the 12-month Enhanced Dollar Cost Averaging (EDCA) program operates when multiple purchase payments are allocated to the program. The example assumes that a $24,000 purchase payment is allocated to the EDCA program at the beginning of the first month and the first transfer of $2,000 also occurs on that date. The $22,000 remaining after the EDCA transfer is allocated to the 1st Payment Bucket where it is credited with a 5% effective annual interest rate. The EDCA transfer amount of $2,000 is determined by dividing the $24,000 allocation amount by 12 (the number of months in the EDCA program). Thereafter, a $2,000 transfer is made from the EDCA at the beginning of each month. Amounts remaining in the EDCA account value are accumulated at the EDCA interest rate using the following formula: Account Value 1st Payment Bucket (month 2) = Account Value 1st Payment Bucket (month 1) x (1+EDCA Rate)(1/12) - EDCA Transfer Amount At the beginning of the 6th month, a second purchase payment of $12,000 is allocated to the EDCA program. The entire $12,000 is allocated to the 2nd Payment Bucket where it is credited with a 4% effective annual interest rate. This second purchase payment triggers an increase in the EDCA transfer amount to $3,000. The increased EDCA transfer amount is determined by adding $1,000 (the $12,000 allocation amount divided by 12) to the current EDCA transfer amount. The $3,000 monthly EDCA transfers will first be applied against the account value in the 1st Payment Bucket until exhausted and then against the account value in the 2nd Payment Bucket until it is exhausted.
---- Account Values---- Beg of Amount Allocated Actual EDCA 1st Payment 2nd Payment Month to EDCA EDCA Transfer Account Value Bucket Bucket -------- ------------------ --------------- --------------- ------------- ------------ 1 24000 2000 22000 22000 2 2000 20090 20090 3 2000 18171 18171 4 2000 16246 16246 5 2000 14312 14312 6 12000 3000 23370 11370 12000 7 3000 20456 8416 12039 8 3000 17529 5451 12079 9 3000 14591 2473 12118 10 3000 11641 0 11641 11 3000 8679 0 8679 12 3000 5707 0 5707 13 3000 2726 0 2726 14 2735 0 0 0
C-2 APPENDIX D GUARANTEED MINIMUM INCOME BENEFIT EXAMPLES The purpose of these examples is to illustrate the operation of the Guaranteed Minimum Income Benefit. (Unless otherwise noted, these examples are for the GMIB Plus II rider.) The investment results shown are hypothetical and are not representative of past or future performance. Actual investment results may be more or less than those shown and will depend upon a number of factors, including investment allocations and the investment experience of the investment portfolios chosen. THE EXAMPLES DO NOT REFLECT THE DEDUCTION OF FEES AND CHARGES, WITHDRAWAL CHARGES OR INCOME TAXES AND TAX PENALITIES. (1) WITHDRAWAL ADJUSTMENTS TO ANNUAL INCREASE AMOUNT Dollar-for-dollar adjustment when withdrawal is less than or equal to 6% of --------------------------------------------------------------------------- the Annual Increase Amount from the prior contract anniversary -------------------------------------------------------------- Assume the initial purchase payment is $100,000 and the GMIB Plus II is selected. Assume that during the first contract year, $6,000 is withdrawn. Because the withdrawal is less than or equal to 6% of the Annual Increase Amount from the prior contract anniversary, the Annual Increase Amount is reduced by the withdrawal on a dollar-for-dollar basis to $100,000 ($100,000 increased by 6% per year, compounded annually, less $6,000 = $100,000). Assuming no other purchase payments or withdrawals are made before the second contract anniversary, the Annual Increase Amount at the second contract anniversary will be $106,000 ($100,000 increased by 6% per year, compounded annually). Proportionate adjustment when withdrawal is greater than 6% of the Annual ------------------------------------------------------------------------- Increase Amount from the prior contract anniversary --------------------------------------------------- Assume the initial purchase payment is $100,000 and the GMIB Plus II is selected. Assume the account value at the first contract anniversary is $100,000. The Annual Increase Amount at the first contract anniversary will be $106,000 ($100,000 increased by 6% per year, compounded annually). Assume that on the first contract anniversary, $10,000 is withdrawn (leaving an account balance of $90,000). Because the withdrawal is greater than 6% of the Annual Increase Amount from the prior contract anniversary, the Annual Increase Amount is reduced by the value of the Annual Increase Amount immediately prior to the withdrawal ($106,000) multiplied by the percentage reduction in the account value attributed to that withdrawal (10%). Therefore, the new Annual Increase Amount is $95,400 ($106,000 x 10% = $10,600; $106,000 - $10,600 = $95,400). Assuming no other purchase payments or withdrawals are made before the second contract anniversary, the Annual Increase Amount at the second contract anniversary will be $101,124 ($95,400 increased by 6% per year, compounded annually). (In contrast to the GMIB Plus II rider, for the GMIB II rider, the annual increase rate for purposes of calculating the Annual Increase Amount is 5% per year.) (2) THE 6% ANNUAL INCREASE AMOUNT Example ------- Assume the owner of the contract is a male, age 55 at issue, and he elects the GMIB Plus II rider. He makes an initial purchase payment of $100,000, and makes no additional purchase payments or partial withdrawals. On the contract issue date, the 6% Annual Increase Amount is equal to $100,000 (the initial purchase payment). The 6% Annual Increase Amount is calculated at each contract anniversary (through the contract anniversary on or following the owner's 90th birthday). At the tenth contract anniversary, when the owner is age 65, the 6% Annual Increase Amount is $179,085 ($100,000 increased by 6% per year, compounded annually). See section (3) below for an example of the calculation of the Highest Anniversary Value. Graphic Example: Determining a value upon which future income payments can -------------------------------------------------------------------------- be based -------- Assume that you make an initial purchase payment of $100,000. Prior to annuitization, your account value fluctuates above and below your initial purchase payment depending on the investment performance of the investment options you selected. Your purchase payments accumulate at the annual increase rate of 6%, until the contract anniversary on or immediately after the contract owner's 90th birthday. Your purchase payments are also adjusted for any withdrawals (including any applicable withdrawal charge) made during this period. The line (your D-1 purchase payments accumulated at 6% a year adjusted for withdrawals and charges "the 6% Annual Increase Amount") is the value upon which future income payments can be based. [GRAPHIC APPEARS HERE] Graphic Example: Determining your guaranteed lifetime income stream ------------------------------------------------------------------- Assume that you decide to annuitize your contract and begin taking annuity payments after 20 years. In this example, your 6% Annual Increase Amount is higher than the Highest Anniversary Value and will produce a higher income benefit. Accordingly, the 6% Annual Increase Amount will be applied to the annuity pay-out rates in the Guaranteed Minimum Income Benefit Annuity Table to determine your lifetime annuity payments. THE INCOME BASE IS NOT AVAILABLE FOR CASH WITHDRAWALS AND IS ONLY USED FOR PURPOSES OF CALCULATING THE GUARANTEED MINIMUM INCOME BENEFIT PAYMENT AND THE CHARGE FOR THE BENEFIT. [GRAPHIC APPEARS HERE] (In contrast to the GMIB Plus II rider, for the GMIB II rider, purchase payments accumulate at the annual increase rate of 5% until the contract anniversary on or immediately after the contract owner's 85th birthday.) (3) THE "HIGHEST ANNIVERSARY VALUE" ("HAV") Example ------- Assume, as in the example in section (2) above, the owner of the contract is a male, age 55 at issue, and he elects the GMIB Plus II rider. He makes an initial purchase payment of $100,000, and makes no additional purchase payments or partial withdrawals. On the contract issue date, the Highest Anniversary Value is equal to $100,000 (the initial purchase payment). Assume the account value on the first contract anniversary is $108,000 due to good market performance. Because the account value is greater than the Highest Anniversary Value ($100,000), the Highest Anniversary Value is set equal to the account value ($108,000). Assume the account value on the second contract anniversary is $102,000 due to poor market performance. Because the account value is less than the Highest Anniversary Value ($108,000), the Highest Anniversary Value remains $108,000. Assume this process is repeated on each contract anniversary until the tenth contract anniversary, when the account value is $155,000 and the Highest Anniversary Value is $150,000. The Highest Anniversary Value is set equal to the account value ($155,000). See section (4) below for an example of the exercise of the GMIB Plus II rider. Graphic Example: Determining a value upon which future income payments can -------------------------------------------------------------------------- be based -------- Prior to annuitization, the Highest Anniversary Value begins to lock in growth. The Highest Anniversary Value is adjusted upward each contract anniversary if the account value at that time is greater than the amount of the current Highest Anniversary Value. Upward adjustments will continue until the contract anniversary immediately prior to the contract owner's 81st birthday. The Highest Anniversary Value also is adjusted for any withdrawals taken (including any applicable withdrawal charge) or any additional payments made. The Highest Anniversary Value line is D-2 the value upon which future income payments can be based. [GRAPHIC APPEARS HERE] Graphic Example: Determining your guaranteed lifetime income stream ------------------------------------------------------------------- Assume that you decide to annuitize your contract and begin taking annuity payments after 20 years. In this example, the Highest Anniversary Value is higher than the account value. Accordingly, the Highest Anniversary Value will be applied to the annuity payout rates in the Guaranteed Minimum Income Benefit Annuity Table to determine your lifetime annuity payments. THE INCOME BASE IS NOT AVAILABLE FOR CASH WITHDRAWALS AND IS ONLY USED FOR PURPOSES OF CALCULATING THE GUARANTEED MINIMUM INCOME BENEFIT PAYMENT AND THE CHARGE FOR THE BENEFIT. [GRAPHIC APPEARS HERE] (4) PUTTING IT ALL TOGETHER Example ------- Continuing the examples in sections (2) and (3) above, assume the owner chooses to exercise the GMIB Plus II rider at the tenth contract anniversary and elects a life annuity with 10 years of annuity payments guaranteed. Because the 6% Annual Increase Amount ($179,085) is greater than the Highest Anniversary Value ($155,000), the 6% Annual Increase Amount ($179,085) is used as the income base. The income base of $179,085 is applied to the GMIB Annuity Table. This yields annuity payments of $788 per month for life, with a minimum of 10 years guaranteed. (If the same owner were instead age 70, the income base of $179,085 would yield monthly payments of $886; if the owner were age 75, the income base of $179,085 would yield monthly payments of $1,012.) The above example does not take into account the impact of premium and other taxes. As with other pay-out types, the amount you receive as an income payment depends on your age, sex, and the income type you select. THE INCOME BASE IS NOT AVAILABLE FOR CASH WITHDRAWALS AND IS ONLY USED FOR PURPOSES OF CALCULATING THE GUARANTEED MINIMUM INCOME BENEFIT PAYMENT AND THE CHARGE FOR THE BENEFIT. Graphic Example --------------- Prior to annuitization, the two calculations (the 6% Annual Increase Amount and the Highest Anniversary Value) work together to protect your future income. Upon annuitization of the contract, you will receive income payments for life and the income bases and the account value will cease to exist. Also, the GMIB Plus II may only be exercised no later than the contract anniversary on or following the contract owner's 90th birthday, after a 10 year waiting period, and then only within a 30 day period following the contract anniversary. (The GMIB II may only be exercised no later than the contract anniversary on or following the contract owner's 85th birthday, after a 10 year waiting period, and then only within a 30 day period following the contract anniversary.) [GRAPHIC APPEARS HERE] D-3 With the Guaranteed Minimum Income Benefit, the Income Base is applied to special, conservative Guaranteed Minimum Income Benefit annuity purchase factors, which are guaranteed at the time the contract is issued. However, if then-current annuity purchase factors applied to the account value would produce a greater amount of income, then you will receive the greater amount. In other words, when you annuitize your contract you will receive whatever amount produces the greatest income payment. Therefore, if your account value would provide greater income than would the amount provided under the Guaranteed Minimum Income Benefit, you will have paid for the Guaranteed Minimum Income Benefit although it was never used. [GRAPHIC APPEARS HERE] (5) THE GUARANTEED PRINCIPAL OPTION - GMIB PLUS II Assume your initial purchase payment is $100,000 and no withdrawals are taken. Assume that the account value at the 10th contract anniversary is $50,000 due to poor market performance, and you exercise the Guaranteed Principal Option at this time. The effects of exercising the Guaranteed Principal Option are: 1) A Guaranteed Principal Adjustment of $100,000 - $50,000 = $50,000 is added to the account value 30 days after the 10th contract anniversary bringing the account value back up to $100,000. 2) The GMIB Plus rider and rider fee terminates as of the date that the adjustment is made to the account value; the variable annuity contract continues. 3) GMIB Plus allocation and transfer restrictions terminate as of the date that the adjustment is made to the account value. [GRAPHIC APPEARS HERE] *Withdrawals reduce the original purchase payment (I.E. those payments credited within 120 days of contract issue date) proportionately and therefore, may have a significant impact on the amount of the Guaranteed Principal Adjustment. (6) THE OPTIONAL RESET: AUTOMATIC ANNUAL STEP-UP - GMIB PLUS II Assume your initial investment is $100,000 and no withdrawals are taken. The 6% Annual Increase Amount increases to $106,000 on the first anniversary ($100,000 increased by 6% per year, compounded annually). Assume your account value at the first contract anniversary is $110,000 due to good market performance, and you elected Optional Resets to occur under the Automatic Annual Step-Up feature prior to the first contract anniversary. Because your account value is higher than your 6% Annual Increase Amount, an Optional Reset will automatically occur. The effect of the Optional Reset is: (1) The 6% Annual Increase Amount automatically resets from $106,000 to $110,000; (2) The 10-year waiting period to annuitize the contract under the Guaranteed Minimum Income Benefit is reset to 10 years from the first contract anniversary; (3) The GMIB Plus rider charge is reset to the fee we charge new contract owners for the same GMIB Plus rider at that time; and (4) The Guaranteed Principal Option can still be elected on the 10th contract anniversary. The 6% Annual Increase Amount increases to $116,600 on the second anniversary ($110,000 increased by 6% per year, compounded annually). Assume your account value at the second contract anniversary is $120,000 due to good market performance, and you have not discontinued the Automatic Annual Step-Up feature. Because your account value is higher than your 6% Annual Increase Amount, an Optional Reset will automatically occur. D-4 The effect of the Optional Reset is: (1) The 6% Annual Increase Amount automatically resets from $116,600 to $120,000; (2) The 10-year waiting period to annuitize the contract under the Guaranteed Minimum Income Benefit is reset to 10 years from the second contract anniversary; (3) The GMIB Plus rider charge is reset to the fee we charge new contract owners for the same GMIB Plus rider at that time; and (4) The Guaranteed Principal Option can still be elected on the 10th contract anniversary. Assume your account value increases by $10,000 at each contract anniversary in years three through seven. At each contract anniversary, your account value would exceed the 6% Annual Increase Amount and an Optional Reset would automatically occur (provided you had not discontinued the Automatic Annual Step-Up feature, and other requirements were met). The effect of each Optional Reset is: (1) The 6% Annual Increase Amount automatically resets to the higher account value; (2) The 10-year waiting period to annuitize the contract under the Guaranteed Minimum Income Benefit is reset to 10 years from the date of the Optional Reset; (3) The GMIB Plus rider charge is reset to the fee we charge new contract owners for the same GMIB Plus rider at that time; and (4) The Guaranteed Principal Option can still be elected on the 10th contract anniversary. After the seventh contract anniversary, the initial Automatic Annual Step-Up election expires. Assume you do not make a new election of the Automatic Annual Step-Up. The 6% Annual Increase Amount increases to $180,200 on the eighth anniversary ($170,000 increased by 6% per year, compounded annually). Assume your account value at the eighth contract anniversary is $160,000 due to poor market performance. An Optional Reset is NOT permitted because your account value is lower than your 6% Annual Increase Amount. However, because the Optional Reset has locked-in previous gains, the 6% Annual Increase Amount remains at $180,200 despite poor market performance, and, provided the rider continues in effect, will continue to grow at 6% annually (subject to adjustments for additional purchase payments and/or withdrawals) through the contract anniversary on or after your 90th birthday. Also, please note: (1) The 10-year waiting period to annuitize the contract under the Guaranteed Minimum Income Benefit remains at the 17th contract anniversary (10 years from the date of the last Optional Reset); (2) The GMIB Plus rider charge remains at its current level; and (3) The Guaranteed Principal Option can still be elected on the 10th contract anniversary. [GRAPHIC APPEARS HERE] D-5 APPENDIX E GUARANTEED WITHDRAWAL BENEFIT EXAMPLES The purpose of these examples is to illustrate the operation of the Guaranteed Withdrawal Benefit. (Examples A, B and C are for the Lifetime Withdrawal Guarantee I and Lifetime Withdrawal Guarantee II riders. Examples D through K are for Enhanced GWB and GWB I.) The investment results shown are hypothetical and are not representative of past or future performance. Actual investment results may be more or less than those shown and will depend upon a number of factors, including investment allocations and the investment experience of the investment portfolios chosen. THE EXAMPLES DO NOT REFLECT THE DEDUCTION OF FEES AND CHARGES, WITHDRAWAL CHARGES OR INCOME TAXES AND TAX PENALTIES. The Guaranteed Withdrawal Benefit does not establish or guarantee an account value or minimum return for any investment portfolio. The Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount (under the Lifetime Withdrawal Guarantee) and the Guaranteed Withdrawal Amount and the Benefit Base (under the Enhanced GWB and GWB I) cannot be taken as a lump sum. A. Lifetime Withdrawal Guarantee 1. When Withdrawals Do Not Exceed the Annual Benefit Payment Assume that a contract had an initial purchase payment of $100,000. The initial account value would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, the initial Remaining Guaranteed Withdrawal Amount would be $100,000 and the initial Annual Benefit Payment would be $5,000 ($100,000 x 5%). Assume that $5,000 is withdrawn each year, beginning before the contract owner attains age 59 1/2. The Remaining Guaranteed Withdrawal Amount is reduced by $5,000 each year as withdrawals are taken (the Total Guaranteed Withdrawal Amount is not reduced by these withdrawals). The Annual Benefit Payment of $5,000 is guaranteed to be received until the Remaining Guaranteed Withdrawal Amount is depleted, even if the account value is reduced to zero. If the first withdrawal is taken after age 59 1/2, then the Annual Benefit Payment of $5,000 is guaranteed to be received for the owner's lifetime, even if the Remaining Guaranteed Withdrawal Amount and the account value are reduced to zero. (Under the Lifetime Withdrawal Guarantee II rider, if the contract owner makes the first withdrawal at or after age 76, the Withdrawal Rate is 6% instead of 5% and the Annual Benefit Payment is $6,000.) [GRAPHIC APPEARS HERE]
Remaining Annual Guaranteed Guaranteed Benefit Cumulative Account Withdrawal Withdrawal Payment Withdrawals Value Amount Amount $5,000 $5,000 $100,000 $100,000 $100,000 5,000 10,000 90,250 95,000 100,000 5,000 15,000 80,987.5 90,000 100,000 5,000 20,000 72,188.13 85,000 100,000 5,000 25,000 63,828.72 80,000 100,000 5,000 30,000 55,887.28 75,000 100,000 5,000 35,000 48,342.92 70,000 100,000 5,000 40,000 41,175.77 65,000 100,000 5,000 45,000 34,366.98 60,000 100,000 5,000 50,000 27,898.63 55,000 100,000 5,000 55,000 21,753.7 50,000 100,000 5,000 60,000 15,916.02 45,000 100,000 5,000 65,000 10,370.22 40,000 100,000 5,000 70,000 5,101.706 35,000 100,000 5,000 75,000 96.62093 30,000 100,000 5,000 80,000 0 0 100,000 5,000 85,000 0 0 100,000 5,000 90,000 0 0 100,000 5,000 95,000 0 0 100,000 5,000 100,000 0 0 100,000
2. When Withdrawals Do Exceed the Annual Benefit Payment a. Lifetime Withdrawal Guarantee II - Proportionate Reduction Assume that a contract with the Lifetime Withdrawal Guarantee II rider had an initial purchase payment of $100,000. The initial account value would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, the initial Remaining Guaranteed Withdrawal Amount would be $100,000 and the initial Annual Benefit Payment would be $5,000 ($100,000 x 5%). (If the contract owner makes the first withdrawal on or after the date he or she reaches age 76, the E-1 Withdrawal Rate is 6% instead of 5% and the initial Annual Benefit Payment would be $6,000. For the purposes of this example, assume the contract owner makes the first withdrawal before he or she reaches age 76 and the Withdrawal Rate is therefore 5%.) Assume that the Remaining Guaranteed Withdrawal Amount is reduced to $95,000 due to a withdrawal of $5,000 in the first year. Assume the account value was further reduced to $80,000 at year two due to poor market performance. If you withdrew $10,000 at this time, your account value would be reduced to $80,000 - $10,000 = $70,000. Since the withdrawal of $10,000 exceeded the Annual Benefit Payment of $5,000, there would be a proportional reduction to the Remaining Guaranteed Withdrawal Amount and the Total Guaranteed Withdrawal Amount. The proportional reduction is equal to the withdrawal ($10,000) divided by the account value before the withdrawal ($80,000), or 12.5%. The Remaining Guaranteed Withdrawal Amount after the withdrawal would be $83,125 ($95,000 reduced by 12.5%). This new Remaining Guaranteed Withdrawal Amount of $83,125 would now be the amount guaranteed to be available to be withdrawn over time. The Total Guaranteed Withdrawal Amount would be reduced to $87,500 ($100,000 reduced by 12.5%). The Annual Benefit Payment would be set equal to 5% x $87,500 = $4,375. b. Lifetime Withdrawal Guarantee I - Reduction to Account Value Assume that a contract with the Lifetime Withdrawal Guarantee I rider had an initial purchase payment of $100,000. The initial account value would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, the initial Remaining Guaranteed Withdrawal Amount would be $100,000 and the initial Annual Benefit Payment would be $5,000 ($100,000 x 5%). Assume that the Remaining Guaranteed Withdrawal Amount is reduced to $95,000 due to a withdrawal of $5,000 in the first year. Assume the account value was further reduced to $75,000 at year two due to poor market performance. If you withdrew $10,000 at this time, your account value would be reduced to $75,000 - $10,000 = $65,000. Your Remaining Guaranteed Withdrawal Amount would be reduced to $95,000 - $10,000 = $85,000. Since the withdrawal of $10,000 exceeded the Annual Benefit Payment of $5,000 and the resulting Remaining Guaranteed Withdrawal Amount would be greater than the resulting account value, there would be an additional reduction to the Remaining Guaranteed Withdrawal Amount. The Remaining Guaranteed Withdrawal Amount after the withdrawal would be set equal to the account value after the withdrawal ($65,000). This new Remaining Guaranteed Withdrawal Amount of $65,000 would now be the amount guaranteed to be available to be withdrawn over time. The Total Guaranteed Withdrawal Amount would also be reduced to $65,000. The Annual Benefit Payment would be set equal to 5% x $65,000 = $3,250. B. Lifetime Withdrawal Guarantee - Compounding Income Amount Assume that a contract with the Lifetime Withdrawal Guarantee II rider had an initial purchase payment of $100,000. The initial Remaining Guaranteed Withdrawal Amount would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, and the Annual Benefit Payment would be $5,000 ($100,000 x 5%). (If the contract owner makes the first withdrawal at or after age 76, the Withdrawal Rate is 6% instead of 5% and the Annual Benefit Payment would be $6,000. For the purposes of this example, assume the contract owner makes the first withdrawal before he or she reaches age 76 and the Withdrawal Rate is therefore 5%.) The Total Guaranteed Withdrawal Amount will increase by 7.25% of the previous year's Total Guaranteed Withdrawal Amount until the earlier of the second withdrawal or the 10th contract anniversary. The Annual Benefit Payment will be recalculated as 5% of the new Total Guaranteed Withdrawal Amount. If the second withdrawal is taken in the first contract year, then there would be no increase: the Total Guaranteed Withdrawal Amount would remain at $100,000 and the Annual Benefit Payment will remain at $5,000 ($100,000 x 5%). If the second withdrawal is taken in the second contract year, then the Total Guaranteed Withdrawal Amount would increase to $107,250 ($100,000 x 107.25%), and the Annual Benefit Payment would increase to $5,362 ($107,250 x 5%). If the second withdrawal is taken in the third contract year, then the Total Guaranteed Withdrawal Amount would increase to $115,025 ($107,250 x 107.25%), and the Annual Benefit Payment would increase to $5,751 ($115,025 x 5%). E-2 If the second withdrawal is taken after the 10th contract year, then the Total Guaranteed Withdrawal Amount would increase to $201,360 (the initial $100,000, increased by 7.25% per year, compounded annually for 10 years), and the Annual Benefit Payment would increase to $10,068 ($201,360 x 5%). (In contrast to the Lifetime Withdrawal Guarantee II rider, the Lifetime Withdrawal Guarantee I rider has a 5% Compounding Income Amount and the Total -- Guaranteed Withdrawal Amount is increased by 5% on each contract anniversary until the earlier of the date of the first withdrawal or the tenth contract ----- anniversary.) [GRAPHIC APPEARS HERE]
Year Annual of Second Benefit Withdrawal Payment 1 $5,000 2 5,363 3 5,751 4 6,168 5 6,615 6 7,095 7 7,609 8 8,161 9 8,753 10 9,387 11 10,068
C. Lifetime Withdrawal Guarantee - Automatic Annual Step-Ups and 7.25% Compounding Income Amount (No Withdrawals) Assume that a contract with the Lifetime Withdrawal Guarantee II rider had an initial purchase payment of $100,000. Assume that no withdrawals are taken. At the first contract anniversary, assuming that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $107,250 ($100,000 increased by 7.25%, compounded annually). Assume the account value has increased to $110,000 at the first contract anniversary due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $107,250 to $110,000 and reset the Annual Benefit Payment to $5,500 ($110,000 x 5%). At the second contract anniversary, assuming that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $117,975 ($110,000 increased by 7.25%, compounded annually). Assume the account value has increased to $120,000 at the second contract anniversary due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $117,975 to $120,000 and reset the Annual Benefit Payment to $6,000 ($120,000 x 5%). Assuming that no withdrawals are taken, each year the Total Guaranteed Withdrawal Amount would increase by 7.25%, compounded annually, from the second contract anniversary through the ninth contract anniversary, and at that point would be equal to $195,867. Assume that during these contract years the account value does not exceed the Total Guaranteed Withdrawal Amount due to poor market performance. Assume the account value at the ninth contract anniversary has E-3 increased to $200,000 due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $195,867 to $200,000 and reset the Annual Benefit Payment to $10,000 ($200,000 x 5%). At the 10th contract anniversary, assuming that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $214,500 ($200,000 increased by 7.25%, compounded annually). Assume the account value is less than $214,500. There is no Automatic Annual Step-Up since the account value is below the Total Guaranteed Withdrawal Amount; however, due to the 7.25% increase in the Total Guaranteed Withdrawal Amount, the Annual Benefit Payment is increased to $10,725 ($214,500 x 5%). [GRAPHIC APPEARS HERE] D. Enhanced Guaranteed Withdrawal Benefit and GWB I - How Withdrawals Affect the Benefit Base 1. An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000 ($100,000 + 5% GWB Bonus Amount). Assume that the account value grew to $110,000 because of market performance. If a subsequent withdrawal of $10,000 were made, the Benefit Base would be reduced to $105,000 - $10,000 = $95,000. Assume the withdrawal of $10,000 exceeded the Annual Benefit Payment. Since the account value of $100,000 exceeds the Benefit Base of $95,000, no further reduction to the Benefit Base is made. 2. An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000. Assume that the account value shrank to $90,000 because of market performance. If a subsequent withdrawal of $10,000 were made, the Benefit Base would be reduced to $95,000 and the account value would be reduced to $80,000. Assume the withdrawal of $10,000 exceeded the Annual Benefit Payment. Since the account value of $80,000 is less than the Benefit Base of $95,000, a further reduction of the $15,000 difference is made, bringing the Benefit Base to $80,000. E. Enhanced Guaranteed Withdrawal Benefit and GWB I - How Withdrawals and Subsequent Purchase Payments Affect the Annual Benefit Payment An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000 and the initial Annual Benefit Payment would be $7,350 ($105,000 x 7%). If $7,000 withdrawals were then made for each of the next five years, the Benefit Base would be decreased to $70,000. If a subsequent purchase payment of $10,000 were made the next day, the Benefit Base would be increased to $70,000 + $10,000 + (5% x $10,000) = $80,500. The Annual Benefit Payment would be reset to the greater of a) $7,350 (the Annual Benefit Payment before the second purchase payment) and b) $5,635 (7% multiplied by the Benefit Base after the second purchase payment). In this case, the Annual Benefit Payment would remain at $7,350. F. Enhanced Guaranteed Withdrawal Benefit and GWB I - How Withdrawals Affect the Annual Benefit Payment 1. An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000 and the initial Annual Benefit Payment would be $7,350. If a withdrawal of $9,000 was made the next day, and negative market E-4 performance reduced the account value by an additional $1,000, the account value would be reduced to $100,000 - $9,000 - $1,000 = $90,000. Since the withdrawal of $9,000 exceeded the Annual Benefit Payment of $7,350, the Annual Benefit Payment would be reset to the lower of a) $7,350 (the Annual Benefit Payment before the withdrawal) and b) $6,300 (7% multiplied by the account value after the withdrawal). In this case the Annual Benefit Payment would be reset to $6,300. 2. An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000 and the initial Annual Benefit Payment would be $7,350. If a withdrawal of $10,000 was made two years later after the account value had increased to $150,000, the account value would be reduced to $140,000. Since the withdrawal of $10,000 exceeded the Annual Benefit Payment of $7,350, the Annual Benefit Payment would be reset to the lower of a) $7,350 (the Annual Benefit Payment before the withdrawal) and b) $9,800 (7% multiplied by the account value after the withdrawal). In this case the Annual Benefit Payment would remain at $7,350. G. Enhanced Guaranteed Withdrawal Benefit and GWB I - How Withdrawals and Subsequent Purchase Payments Affect the Guaranteed Withdrawal Amount An initial purchase payment is made of $100,000 and the initial Guaranteed Withdrawal Amount and initial Benefit Base would both be $105,000. Assume that over the next five years, withdrawals reduced the Benefit Base to $70,000. If a subsequent purchase payment of $10,000 was made, the Benefit Base would be increased to $70,000 + $10,000 + (5% x $10,000) = $80,500. The Guaranteed Withdrawal Amount would be reset to the greater of a) $105,000 (the Guaranteed Withdrawal Amount before the second purchase payment) and b) $80,500 (the Benefit Base after the second purchase payment). In this case, the Guaranteed Withdrawal Amount would remain at $105,000. H. Enhanced Guaranteed Withdrawal Benefit and GWB I - Putting It All Together 1. When Withdrawals Do Not Exceed the Annual Benefit Payment An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000, the Guaranteed Withdrawal Amount would be $105,000, and the Annual Benefit Payment would be $7,350. Assume that the Benefit Base was reduced to $82,950 due to 3 years of withdrawing $7,350 each year and assume that the account value was further reduced to $50,000 at year four due to poor market performance. If you withdrew $7,350 at this time, your account value would be reduced to $50,000 - $7,350 = $42,650. Your Benefit Base would be reduced to $82,950 - $7,350 = $75,600. Since the withdrawal of $7,350 did not exceed the Annual Benefit Payment, there would be no additional reduction to the Benefit Base. The Guaranteed Withdrawal Amount would remain at $105,000 and the Annual Benefit Payment would remain at $7,350. [GRAPHIC APPEARS HERE]
Annual Benefit Cumulative Account Benefit Payment Withdrawal Value Base 0 $0 $0 $100,000 $105,000 1 7,350 7,350 85,000 97,650 2 7,350 7,350 68,000 90,300 3 7,350 7,350 50,000 82,950 4 7,350 7,350 42,650 75,600 5 7,350 7,350 35,300 68,250 6 7,350 7,350 27,950 60,900 7 7,350 7,350 20,600 53,550 8 7,350 7,350 13,250 46,200 9 7,350 7,350 5,900 38,850 10 7,350 7,350 0 31,500 11 7,350 7,350 0 24,150 12 7,350 7,350 0 16,800 13 7,350 7,350 0 9,450 14 7,350 7,350 0 2,100 15 2,100 2,100 0 0 16 17 18
E-5 2. When Withdrawals Do Exceed the Annual Benefit Payment An initial purchase payment is made of $100,000. The initial Benefit Base would be $105,000, the Guaranteed Withdrawal Amount would be $105,000, and the Annual Benefit Payment would be $7,350. Assume that the Benefit Base was reduced to $82,950 due to 3 years of withdrawing $7,350 each year. Assume the account value was further reduced to $50,000 at year four due to poor market performance. If you withdrew $10,000 at this time, your account value would be reduced to $50,000 - $10,000 = $40,000. Your Benefit Base would be reduced to $82,950 - $10,000 = $72,950. Since the withdrawal of $10,000 exceeded the Annual Benefit Payment of $7,350 and the resulting Benefit Base would be greater than the resulting account value, there would be an additional reduction to the Benefit Base. The Benefit Base after the withdrawal would be set equal to the account value after the withdrawal = $40,000. The Annual Benefit Payment would be set equal to the lesser of $7,350 and 7% x $40,000 = $2,800. The Guaranteed Withdrawal Amount would remain at $105,000, but this amount now no longer would be guaranteed to be received over time. The new Benefit Base of $40,000 would be now the amount guaranteed to be available to be withdrawn over time. [GRAPHIC APPEARS HERE]
Annual Benefit Cumulative Account Benefit Payment Withdrawals Value Base 0 $0 $0 $100,000 $105,000 1 7,350 7,350 85,000 97,650 2 7,350 7,350 68,000 90,300 3 7,350 7,350 50,000 82,950 4 7,350 10,000 40,000 40,000 5 2,800 2,800 37,200 37,200 6 2,800 2,800 34,400 34,400 7 2,800 2,800 31,600 31,600 8 2,800 2,800 28,800 28,800 9 2,800 2,800 26,000 26,000 10 2,800 2,800 23,200 23,200 11 2,800 2,800 20,400 20,400 12 2,800 2,800 17,600 17,600 13 2,800 2,800 14,800 14,800 14 2,800 2,800 12,000 12,000 15 2,800 2,800 9,200 9,200 16 2,800 2,800 6,400 6,400 17 2,800 2,800 3,600 3,600 18 2,800 2,800 800 800
I. Enhanced GWB - How the Optional Reset Works (may be elected prior to age 86) Assume that a contract had an initial purchase payment of $100,000 and the fee is 0.55%. The initial account value would be $100,000, the initial Benefit Base would be $105,000, the Guaranteed Withdrawal Amount would be $105,000 and the Annual Benefit Payment would be $7,350 (assuming you began withdrawing in your first year). The account value on the third contract anniversary grew due to market performance to $148,350. Assume the fee remains at 0.55%. If an Optional Reset is elected, the charge would remain at 0.55%, the Guaranteed Withdrawal Amount and the Benefit Base would both be reset to $148,350, and the Annual Benefit Payment would become 7% x $148,350 = $10,385. The account value on the sixth contract anniversary grew due to market performance to $179,859. Assume the fee has been increased to 0.60%. If an Optional Reset is elected, the charge would increase to 0.60%, the Guaranteed Withdrawal Amount and the Benefit Base would both be reset to $179,859, and the Annual Benefit Payment would become 7% x $179,859 = $12,590. E-6 The account value on the ninth contract anniversary grew due to market performance to $282,582. Assume the fee is still 0.60%. If an Optional Reset is elected, the charge would remain at 0.60%, the Guaranteed Withdrawal Amount and the Benefit Base would both be reset to $282,582, and the Annual Benefit Payment would become 7% x $282,582 = $19,781. The period of time over which the Annual Benefit Payment may be taken would be lengthened. [GRAPHIC APPEARS HERE]
Annual Benefit Cumulative Account Payment Withdrawal Value 1 7350 7350 105000 2 7350 14700 125000 3 7350 22050 130000 4 10385 32435 148350 5 10385 42819 185000 6 10385 53204 195000 7 12590 65794 179859 8 12590 78384 210000 9 12590 90974 223000 10 19781 110755 282582 11 19781 130535 270000 12 19781 150316 278000 13 0 0 315000
J. Enhanced GWB - How an Optional Reset May Increase the Benefit Base While Decreasing the Guaranteed Withdrawal Amount and Annual Benefit Payment Assume that a contract had an initial purchase payment of $100,000. The initial account value would be $100,000, the initial Benefit Base would be $105,000, the Guaranteed Withdrawal Amount would be $105,000 and the Annual Benefit Payment would be $7,350. Assume that the Benefit Base is reduced to $70,000 due to 5 years of withdrawing $7,000 each year, but also assume that, due to positive market performance, the account value at the end of 5 years is $80,000. If an Optional Reset is elected, the Benefit Base would be reset from $70,000 to $80,000, the Guaranteed Withdrawal Amount would be reduced from $105,000 to $80,000, and the Annual Benefit Payment would be reduced from $7,350 to $5,600 ($80,000 x 7%). Under these circumstances, the Optional Reset increases the Benefit Base (the remaining amount of money you are guaranteed to receive) by $10,000, but also reduces the Annual Benefit Payment, thereby lengthening the period of time over which you will receive the money. This Optional Reset also reduces the Guaranteed Withdrawal Amount, against which the GWB rider charge is calculated. If the GWB rider charge fee rate does not increase in connection with the Optional Reset, the reduced Guaranteed Withdrawal Amount will result in a reduction in the amount of the annual GWB rider charge. E-7 K. Enhanced GWB and GWB I - Annual Benefit Payment Continuing When Account Value Reaches Zero Assume that a contract had an initial purchase payment of $100,000. The initial account value would be $100,000, the initial Benefit Base would be $105,000 and the initial Annual Benefit Payment would be $7,350 ($105,000 x 7%). Assume that the Benefit Base was reduced to $31,500 due to 10 years of withdrawing $7,350 each year and assume that the account value was further reduced to $0 at year 11 due to poor market performance. We would commence making payments to you (equal, on an annual basis, to the Annual Benefit Payment) until the Benefit Base is exhausted. In this situation (assuming monthly payments), there would be 51 payments of $612.50 and a final payment of $262.50, which, in sum, would deplete the $31,500 Benefit Base. The total amount withdrawn over the life of the contract would then be $105,000. [GRAPHIC APPEARS HERE]
Annual Benefit Cumulative Account Benefit Payment Withdrawals Value Base $7350 $7,350 $100,000 $105,000 7350 14,700 73,000 97,650 7350 22,050 52,750 90,300 7350 29,400 37,562.5 82,950 7350 36,750 26,171.88 75,600 7350 44,100 17,628.91 68,250 7350 51,450 11,221.68 60,900 7350 58,800 6,416.26 53,550 7350 66,150 2,812.195 46,200 7350 73,500 109.1461 38,850 7350 80,850 0 31,500 7350 88,200 0 24,150 7350 95,550 0 16,800 7350 102,900 0 9,450 2,100 105,000 0 2,100 0 0
E-8 APPENDIX F ENHANCED DEATH BENEFIT EXAMPLES The purpose of these examples is to illustrate the operation of the death benefit base under the Enhanced Death Benefit rider. The investment results shown are hypothetical and are not representative of past or future performance. Actual investment results may be more or less than those shown and will depend upon a number of factors, including the investment allocation made by a contract owner and the investment experience of the investment portfolios chosen. THE EXAMPLES DO NOT REFLECT THE DEDUCTION OF FEES AND CHARGES, WITHDRAWAL CHARGES OR INCOME TAXES AND TAX PENALTIES. (1) WITHDRAWAL ADJUSTMENTS TO ANNUAL INCREASE AMOUNT Dollar-for-dollar adjustment when withdrawal is less than or equal to 6% of --------------------------------------------------------------------------- the Annual Increase Amount from the prior contract anniversary -------------------------------------------------------------- Assume the initial purchase payment is $100,000 and the Enhanced Death Benefit is selected. Assume that during the first contract year, $6,000 is withdrawn. Because the withdrawal is less than or equal to 6% of the Annual Increase Amount from the prior contract anniversary, the Annual Increase Amount is reduced by the withdrawal on a dollar-for-dollar basis to $100,000 ($100,000 increased by 6% per year, compounded annually, less $6,000 = $100,000). Assuming no other purchase payments or withdrawals are made before the second contract anniversary, the Annual Increase Amount at the second contract anniversary will be $106,000 ($100,000 increased by 6% per year, compounded annually). Proportionate adjustment when withdrawal is greater than 6% of the Annual ------------------------------------------------------------------------- Increase Amount from the prior contract anniversary --------------------------------------------------- Assume the initial purchase payment is $100,000 and the Enhanced Death Benefit is selected. Assume the account value at the first contract anniversary is $100,000. The Annual Increase Amount at the first contract anniversary will be $106,000 ($100,000 increased by 6% per year, compounded annually). Assume that on the first contract anniversary, $10,000 is withdrawn (leaving an account balance of $90,000). Because the withdrawal is greater than 6% of the Annual Increase Amount from the prior contract anniversary, the Annual Increase Amount is reduced by the value of the Annual Increase Amount immediately prior to the withdrawal ($106,000) multiplied by the percentage reduction in the account value attributed to that withdrawal (10%). Therefore, the new Annual Increase Amount is $95,400 ($106,000 x 10% = $10,600; $106,000 - $10,600 = $95,400). Assuming no other purchase payments or withdrawals are made before the second contract anniversary, the Annual Increase Amount at the second contract anniversary will be $101,124 ($95,400 increased by 6% per year, compounded annually). (2) THE 6% ANNUAL INCREASE AMOUNT Example ------- Assume the contract owner is a male, age 55 at issue, and he elects the Enhanced Death Benefit rider. He makes an initial purchase payment of $100,000, and makes no additional purchase payments or partial withdrawals. On the contract issue date, the 6% Annual Increase Amount is equal to $100,000 (the initial purchase payment). The 6% Annual Increase Amount is calculated at each contract anniversary (through the contract anniversary on or following the contract owner's 90th birthday). At the tenth contract anniversary, when the contract owner is age 65, the 6% Annual Increase Amount is $179,085 ($100,000 increased by 6% per year, compounded annually). See section (3) below for an example of the calculation of the Highest Anniversary Value. Determining a death benefit based on the Annual Increase Amount --------------------------------------------------------------- Assume that you make an initial purchase payment of $100,000. Prior to annuitization, your account value fluctuates above and below your initial purchase payment depending on the investment performance of the subaccounts you selected. The 6% Annual Increase Amount, however, accumulates an amount equal to your purchase payments at the Annual Increase Rate of 6% per annum, until the contract anniversary on or following the contract owner's 90th birthday. The 6% Annual Increase Amount is also adjusted for any withdrawals (including any applicable withdrawal charge) made during this period. The 6% Annual Increase Amount line is the value upon which a future death benefit amount can be based (if it is greater than the Highest Anniversary Value and account value on the date the death benefit amount is determined). F-1 (3) THE HIGHEST ANNIVERSARY VALUE (HAV) Example ------- Assume, as in the example in section (2) above, the contract owner is a male, age 55 at issue, and he elects the Enhanced Death Benefit rider. He makes an initial purchase payment of $100,000, and makes no additional purchase payments or partial withdrawals. On the contract issue date, the Highest Anniversary Value is equal to $100,000 (the initial purchase payment). Assume the account value on the first contract anniversary is $108,000 due to good market performance. Because the account value is greater than the Highest Anniversary Value ($100,000), the Highest Anniversary Value is set equal to the account value ($108,000). Assume the account value on the second contract anniversary is $102,000 due to poor market performance. Because the account value is less than the Highest Anniversary Value ($108,000), the Highest Anniversary Value remains $108,000. Assume this process is repeated on each contract anniversary until the tenth contract anniversary, when the account value is $155,000 and the Highest Anniversary Value is $150,000. The Highest Anniversary Value is set equal the account value ($155,000). Determining a death benefit based on the Highest Anniversary Value ------------------------------------------------------------------ Prior to annuitization, the Highest Anniversary Value begins to lock in growth. The Highest Anniversary Value is adjusted upward each contract anniversary if the account value at that time is greater than the amount of the current Highest Anniversary Value. Upward adjustments will continue until the contract anniversary immediately prior to the contract owner's 81st birthday. The Highest Anniversary Value also is adjusted for any withdrawals taken (including any applicable withdrawal charge) or any additional payments made. The Highest Anniversary Value line is the value upon which a future death benefit amount can be based (if it is greater than the Annual Increase Amount and account value on the date the death benefit amount is determined). (4) PUTTING IT ALL TOGETHER Example ------- Continuing the examples in sections (2) and (3) above, assume the contract owner dies after the tenth contract anniversary but prior to the eleventh contract anniversary, and on the date the death benefit amount is determined, the account value is $150,000 due to poor market performance. Because the 6% Annual Increase Amount ($179,085) is greater than the Highest Anniversary Value ($155,000), the 6% Annual Increase Amount ($179,085) is used as the death benefit base. Because the death benefit base ($179,085) is greater than the account value ($150,000), the death benefit base will be the death benefit amount. The above example does not take into account the impact of premium and other taxes. THE DEATH BENEFIT BASE IS NOT AVAILABLE FOR CASH WITHDRAWALS AND IS ONLY USED FOR PURPOSES OF CALCULATING THE DEATH BENEFIT AMOUNT AND THE CHARGE FOR THE BENEFIT. (5) THE OPTIONAL STEP-UP Assume your initial purchase payment is $100,000 and no withdrawals are taken. The 6% Annual Increase Amount increases to $106,000 on the first anniversary ($100,000 increased by 6% per year, compounded annually). Assume your account value at the first contract anniversary is $110,000 due to good market performance, and you elect an Optional Step-Up. The effect of the Optional Step-Up election is: (1) The 6% Annual Increase Amount resets from $106,000 to $110,000; and (2) The Enhanced Death Benefit rider charge is reset to the fee we charge new contract owners for the Enhanced Death Benefit at that time. The 6% Annual Increase Amount increases to $116,600 on the second anniversary ($110,000 increased by 6% per year, compounded annually). Assume your account value at the second contract anniversary is $112,000 due to poor market performance. You may NOT elect an Optional Step-Up at this time, because the account value is less than the 6% Annual Increase Amount F-2 (6) THE OPTIONAL STEP-UP: AUTOMATIC ANNUAL STEP-UP Assume your initial purchase payment is $100,000 and no withdrawals are taken. The 6% Annual Increase Amount increases to $106,000 on the first anniversary ($100,000 increased by 6% per year, compounded annually). Assume your account value at the first contract anniversary is $110,000 due to good market performance, and you elected Optional Step-Ups to occur under the Automatic Annual Step-Up feature prior to the first contract anniversary. Because your account value is higher than your 6% Annual Increase Amount, an Optional Step-Up will automatically occur. The effect of the Optional Step-Up is: (1) The 6% Annual Increase Amount automatically resets from $106,000 to $110,000; and (2) The Enhanced Death Benefit rider charge is reset to the fee we charge new contract owners for the Enhanced Death Benefit at that time. The 6% Annual Increase Amount increases to $116,600 on the second anniversary ($110,000 increased by 6% per year, compounded annually). Assume your account value at the second contract anniversary is $120,000 due to good market performance, and you have not discontinued the Automatic Annual Step-Up feature. Because your account value is higher than your 6% Annual Increase Amount, an Optional Step-Up will automatically occur. The effect of the Optional Step-Up is: (1) The 6% Annual Increase Amount automatically resets from $116,600 to $120,000; and (2) The Enhanced Death Benefit rider charge is reset to the fee we charge new contract owners for the Enhanced Death Benefit at that time. Assume your account value increases by $10,000 at each contract anniversary in years three through seven. At each contract anniversary, your account value would exceed the 6% Annual Increase Amount and an Optional Step-Up would automatically occur (provided you had not discontinued the Automatic Annual Step-Up feature, and other requirements were met). The effect of the Optional Step-Up is: (1) The 6% Annual Increase Amount automatically resets to the higher account value; and (2) The Enhanced Death Benefit rider charge is reset to the fee we charge new contract owners for the Enhanced Death Benefit at that time. After the seventh contract anniversary, the initial Automatic Annual Step-Up election expires. Assume you do not make a new election of the Automatic Annual Step-Up. The 6% Annual Increase Amount increases to $180,200 on the eighth anniversary ($170,000 increased by 6% per year, compounded annually). Assume your account value at the eighth contract anniversary is $160,000 due to poor market performance. An Optional Step-Up is NOT permitted because your account value is lower than your 6% Annual Increase Amount. However, because the Optional Step-Up has locked-in previous gains, the 6% Annual Increase Amount remains at $180,200 despite poor market performance, and, provided the rider continues in effect, will continue to grow at 6% annually (subject to adjustments for additional purchase payments and/or withdrawals) through the contract anniversary on or after your 90th birthday. Also, please note the Enhanced Death Benefit rider charge remains at its current level. F-3 STATEMENT OF ADDITIONAL INFORMATION INDIVIDUAL VARIABLE DEFERRED ANNUITY CONTRACT ISSUED BY METLIFE INVESTORS USA SEPARATE ACCOUNT A AND METLIFE INVESTORS USA INSURANCE COMPANY SERIES VA THIS IS NOT A PROSPECTUS. THIS STATEMENT OF ADDITIONAL INFORMATION SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS DATED APRIL 28, 2008, FOR THE INDIVIDUAL VARIABLE DEFERRED ANNUITY CONTRACT THAT IS DESCRIBED HEREIN. THE PROSPECTUS CONCISELY SETS FORTH INFORMATION THAT A PROSPECTIVE INVESTOR OUGHT TO KNOW BEFORE INVESTING. FOR A COPY OF THE PROSPECTUS WRITE US AT: P.O. BOX 10366, DES MOINES, IOWA 50306-0366, OR CALL (800) 343-8496. THIS STATEMENT OF ADDITIONAL INFORMATION IS DATED APRIL 28, 2008. SAI-407USAVA TABLE OF CONTENTS PAGE COMPANY ................................ 2 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ...................... 2 CUSTODIAN .............................. 2 DISTRIBUTION ........................... 2 Reduction or Elimination of the 4 Withdrawal Charge CALCULATION OF PERFORMANCE INFORMATION . 4 Total Return ...................... 4 Historical Unit Values ............ 5 Reporting Agencies ................ 5 ANNUITY PROVISIONS ..................... 5 Variable Annuity .................. 5 Fixed Annuity ..................... 7 Mortality and Expense Guarantee ... 7 Legal or Regulatory Restrictions 7 on Transactions TAX STATUS OF THE CONTRACTS ............ 7 CONDENSED FINANCIAL INFORMATION ........ 9 FINANCIAL STATEMENTS ................... 43
1 COMPANY MetLife Investors USA Insurance Company (MetLife Investors USA) is a stock life insurance company founded on September 13, 1960, and organized under the laws of the State of Delaware. Its principal executive offices are located at 5 Park Plaza, Suite 1900 Irvine, CA 92614. MetLife Investors USA is authorized to transact the business of life insurance, including annuities, and is currently licensed to do business in all states (except New York) and the District of Columbia. On October 11, 2006, MetLife Investors USA became a wholly-owned subsidiary of MetLife Insurance Company of Connecticut. We changed our name to MetLife Investors USA Insurance Company on February 12, 2001. On December 31, 2002, MetLife Investors USA became an indirect subsidiary of MetLife, Inc., a listed company on the New York Stock Exchange. MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of insurance and other financial services to individual and institutional customers. We are a member of the Insurance Marketplace Standards Association ("IMSA"). Companies that belong to IMSA subscribe to a set of ethical standards covering the various aspects of sales and service for individually sold life insurance and annuities. INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The financial statements of MetLife Investors USA Insurance Company (the "Company") included in this Statement of Additional Information have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing herein (which report expresses an unqualified opinion and includes an explanatory paragraph referring to the fact that the Company's 2006 and 2005 financial statements have been restated), and are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The principal address of Deloitte & Touche LLP is 201 East Kennedy Boulevard, Suite 1200, Tampa, FL 33602-5827. The financial statements of each of the Sub-Accounts of MetLife Investors USA Separate Account A included in this Statement of Additional Information have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing herein, and are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The principal address of Deloitte & Touche LLP is 201 East Kennedy Boulevard, Suite 1200, Tampa, FL 33602-5827. CUSTODIAN MetLife Investors USA Insurance Company, 5 Park Plaza, Suite 1900, Irvine, CA 92614, is the custodian of the assets of the Separate Account. The custodian has custody of all cash of the Separate Account and handles the collection of proceeds of shares of the underlying funds bought and sold by the Separate Account. DISTRIBUTION Information about the distribution of the contracts is contained in the prospectus. (See "Other Information.") Additional information is provided below. The contracts are offered to the public on a continuous basis. We anticipate continuing to offer the contracts, but reserve the right to discontinue the offering. MetLife Investors Distribution Company ("Distributor") serves as principal underwriter for the contracts. Distributor is a Missouri corporation and its home office is located at 5 Park Plaza, Suite 1900, Irvine, CA 92614. In December 2004, MetLife Investors Distribution Company, which was then a Delaware corporation, was merged into General American Distributors, Inc., and the name of the surviving corporation was changed to MetLife Investors Distribution Company. Distributor is an indirect, wholly-owned subsidiary of MetLife, Inc. Distributor is registered as a broker-dealer with the Securities and Exchange Commission under the Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority ("FINRA"). Distributor is not a member of the Securities Investor Protection Corporation. Distributor has entered into selling agreements with other broker-dealers ("selling firms") and compensates them for their services. Distributor (including its predecessor) received sales compensation with respect to all contracts issued from the Separate Account in the following amounts during the 2 periods indicated:
Aggregate Amount of Commissions Retained Aggregate Amount of by Distributor After Commissions Paid to Payments to Selling Fiscal year Distributor Firms ------------- --------------------- --------------------- 2005 $176,095,864 $0 2006 $285,683,129 $0 2007 $378,957,429 $0
Distributor passes through commissions to selling firms for their sales. In addition we pay compensation to Distributor to offset its expenses, including compensation costs, marketing and distribution expenses, advertising, wholesaling, printing, and other expenses of distributing the contracts. As noted in the prospectus, we and Distributor pay compensation to all selling firms in the form of commissions and certain types of non-cash compensation. We and Distributor may pay additional compensation to selected firms, including marketing allowances, introduction fees, persistency payments, preferred status fees and industry conference fees. The terms of any particular agreement governing compensation may vary among selling firms and the amounts may be significant. The amount of additional compensation (non-commission amounts) paid to selected selling firms during 2007 ranged from $14,155,459 to $18,665. The amount of commissions paid to selected selling firms during 2007 ranged from $65,110,481 to $16,701. The amount of total compensation (includes non-commission as well as commission amounts) paid to selected selling firms during 2007 ranged from $79,265,940 to $16,701. For purposes of calculating such amounts, the amount of compensation received by a selling firm may include additional compensation received by the firm for the sale of insurance products issued by our affiliates within the MetLife Investors group of companies (First MetLife Investors Insurance Company and MetLife Investors Insurance Company). The following list sets forth the names of selling firms that received additional compensation in 2007 in connection with the sale of our variable annuity contracts, variable life policies and other insurance products (including the contracts). The selling firms are listed in alphabetical order. Associated Securities Corp. Brookstreet Securities Corporation Centaurus Financial, Inc. Compass Bank CUSO Financial Sevices, L.P. Davenport & Company Ferris, Baker Watts Incorporated Founders Financial Securities Gunn Allen Financial H. Beck, Inc. Harbour Investments, Inc. Huntington Bank IFMG Securities, Inc. Infinex Investments, Inc. Intersecurities, Inc. Investment Professionals, Inc. Janney Montgomery Scott LLC Jefferson Pilot Key Investment Services LaSalle St. Securities, L.L.C. Lincoln Financial Advisors Lincoln Investment Planning Medallion Investment Services, Inc. Merrill Lynch Morgan Keegan & Company, Inc. Morgan Stanley Mutual Service Corporation National Planning Holdings NEXT Financial Group NFP Securities Planning Corp. of America PNC Investments Primerica Scott & Stringfellow, Inc. Securities America, Inc. Sigma Financial Corporation Smith Barney Holdings, Inc. Summit Brokerage Services, Inc. Tower Square Transamerica Financial U.S. Bancorp Investment, Inc. United Planners' Financial Services of America UVEST Financial Services Group, Inc. Valmark Securities Wall Street Financial Walnut Street Securities, Inc. Waterstone Financial Group, Inc. Woodbury Financial Services Workman Securities. 3 There are other broker dealers who receive compensation for servicing our contracts, and the account value of the contracts or the amount of added purchase payments received may be included in determining their additional compensation, if any. REDUCTION OR ELIMINATION OF THE WITHDRAWAL CHARGE The amount of the withdrawal charge on the contracts may be reduced or eliminated when sales of the contracts are made to individuals or to a group of individuals in a manner that results in savings of sales expenses. The entitlement to reduction of the withdrawal charge will be determined by the Company after examination of all the relevant factors such as: 1. The size and type of group to which sales are to be made will be considered. Generally, the sales expenses for a larger group are less than for a smaller group because of the ability to implement large numbers of contracts with fewer sales contacts. 2. The total amount of purchase payments to be received will be considered. Per contract sales expenses are likely to be less on larger purchase payments than on smaller ones. 3. Any prior or existing relationship with the Company will be considered. Per contract sales expenses are likely to be less when there is a prior existing relationship because of the likelihood of implementing the contract with fewer sales contacts. 4. There may be other circumstances, of which the Company is not presently aware, which could result in reduced sales expenses. If, after consideration of the foregoing factors, the Company determines that there will be a reduction in sales expenses, the Company may provide for a reduction or elimination of the withdrawal charge. The withdrawal charge may be eliminated when the contracts are issued to an officer, director or employee of the Company or any of its affiliates. In no event will any reduction or elimination of the withdrawal charge be permitted where the reduction or elimination will be unfairly discriminatory to any person. In lieu of a withdrawal charge waiver, we may provide an account value credit. CALCULATION OF PERFORMANCE INFORMATION TOTAL RETURN From time to time, the Company may advertise performance data. Such data will show the percentage change in the value of an accumulation unit based on the performance of an investment portfolio over a period of time, usually a calendar year, determined by dividing the increase (decrease) in value for that unit by the accumulation unit value at the beginning of the period. Any such advertisement will include total return figures for the time periods indicated in the advertisement. Such total return figures will reflect the deduction of the separate account product charges (including certain death benefit rider charges), the expenses for the underlying investment portfolio being advertised, and any applicable account fee, withdrawal charges, Enhanced Death Benefit rider charge, and/or GMIB,GWB or GMAB rider charge. For purposes of calculating performance information, the Enhanced Death Benefit rider charge and the GWB rider charge are currently reflected as a percentage of account value. Premium taxes are not reflected. The deduction of such charges would reduce any percentage increase or make greater any percentage decrease. The hypothetical value of a contract purchased for the time periods described in the advertisement will be determined by using the actual accumulation unit values for an initial $1,000 purchase payment, and deducting any applicable account fee and any applicable sales charge to arrive at the ending hypothetical value. The average annual total return is then determined by computing the fixed interest rate that a $1,000 purchase payment would have to earn annually, compounded annually, to grow to the hypothetical value at the end of the time periods described. The formula used in these calculations is: P (1 + T)n = ERV Where: P = a hypothetical initial payment of $1,000 T = average annual total return n = number of years ERV = ending redeemable value at the end of the time periods used (or fractional portion thereof) of a hypothetical $1,000 payment 4 made at the beginning of the 1, 5 or 10 year periods used. The Company may also advertise performance data which will be calculated in the same manner as described above but which will not reflect the deduction of a withdrawal charge, or applicable Enhanced Death Benefit, GMIB, GWB, or GMAB rider charge. Premium taxes are not reflected. The deduction of such charges would reduce any percentage increase or make greater any percentage decrease. Owners should note that the investment results of each investment portfolio will fluctuate over time, and any presentation of the investment portfolio's total return for any period should not be considered as a representation of what an investment may earn or what the total return may be in any future period. HISTORICAL UNIT VALUES The Company may also show historical accumulation unit values in certain advertisements containing illustrations. These illustrations will be based on actual accumulation unit values. In addition, the Company may distribute sales literature which compares the percentage change in accumulation unit values for any of the investment portfolios against established market indices such as the Standard & Poor's 500 Composite Stock Price Index, the Dow Jones Industrial Average or other management investment companies which have investment objectives similar to the investment portfolio being compared. The Standard & Poor's 500 Composite Stock Price Index is an unmanaged, unweighted average of 500 stocks, the majority of which are listed on the New York Stock Exchange. The Dow Jones Industrial Average is an unmanaged, weighted average of thirty blue chip industrial corporations listed on the New York Stock Exchange. Both the Standard & Poor's 500 Composite Stock Price Index and the Dow Jones Industrial Average assume quarterly reinvestment of dividends. REPORTING AGENCIES The Company may also distribute sales literature which compares the performance of the accumulation unit values of the Contracts with the unit values of variable annuities issued by other insurance companies. Such information will be derived from the Lipper Variable Insurance Products Performance Analysis Service, the VARDS Report or from Morningstar. The Lipper Variable Insurance Products Performance Analysis Service is published by Lipper Analytical Services, Inc., a publisher of statistical data which currently tracks the performance of thousands of investment companies. The rankings compiled by Lipper may or may not reflect the deduction of asset-based insurance charges. The Company's sales literature utilizing these rankings will indicate whether or not such charges have been deducted. Where the charges have not been deducted, the sales literature will indicate that if the charges had been deducted, the ranking might have been lower. The VARDS Report is a monthly variable annuity industry analysis compiled by Variable Annuity Research & Data Service. The VARDS rankings may or may not reflect the deduction of asset-based insurance charges. In addition, VARDS prepares risk adjusted rankings, which consider the effects of market risk on total return performance. This type of ranking may address the question as to which funds provide the highest total return with the least amount of risk. Other ranking services may be used as sources of performance comparison, such as CDA/Weisenberger. Morningstar rates a variable annuity against its peers with similar investment objectives. Morningstar does not rate any variable annuity that has less than three years of performance data. ANNUITY PROVISIONS VARIABLE ANNUITY A variable annuity is an annuity with payments which: (1) are not predetermined as to dollar amount; and (2) will vary in amount in proportion to the amount that the net investment factor exceeds the assumed investment return selected. The Adjusted Contract Value (contract value, less any applicable premium taxes, account fee, and prorated Enhanced Death Benefit, GMIB, GWB or GMAB rider charge, if any) will be applied to the applicable Annuity Table to determine the first annuity payment. The Adjusted Contract Value is determined on the annuity calculation date, which is a business day no more than five (5) business days before the annuity date. The dollar amount of the first variable annuity payment is determined as follows: The first variable annuity payment will be based upon the annuity option elected, the annuitant's age and sex, and the 5 appropriate variable annuity option table. If, as of the annuity calculation date, the then current variable annuity option rates applicable to this class of contracts provide a first annuity payment greater than that which is guaranteed under the same annuity option under this contract, the greater payment will be made. The dollar amount of variable annuity payments after the first payment is determined as follows: 1. the dollar amount of the first variable annuity payment is divided by the value of an annuity unit for each applicable investment portfolio as of the annuity calculation date. This establishes the number of annuity units for each monthly payment. The number of annuity units for each applicable investment portfolio remains fixed during the annuity period, unless you transfer values from the investment portfolio to another investment portfolio; 2. the fixed number of annuity units per payment in each investment portfolio is multiplied by the annuity unit value for that investment portfolio for the business day for which the annuity payment is being calculated. This result is the dollar amount of the payment for each applicable investment portfolio, less any account fee. The account fee will be deducted pro rata out of each annuity payment. The total dollar amount of each variable annuity payment is the sum of all investment portfolio variable annuity payments. ANNUITY UNIT - The initial annuity unit value for each investment portfolio of the Separate Account was set by us. The subsequent annuity unit value for each investment portfolio is determined by multiplying the annuity unit value for the immediately preceding business day by the net investment factor for the investment portfolio for the current business day and multiplying the result by a factor for each day since the last business day which represents the daily equivalent of the AIR you elected. (1) the dollar amount of the first annuity payment is divided by the value of an annuity unit as of the annuity date. This establishes the number of annuity units for each monthly payment. The number of annuity units remains fixed during the annuity payment period. (2) the fixed number of annuity units is multiplied by the annuity unit value for the last valuation period of the month preceding the month for which the payment is due. This result is the dollar amount of the payment. NET INVESTMENT FACTOR - The net investment factor for each investment portfolio is determined by dividing A by B and multiplying by (1-C) where: A is (i) the net asset value per share of the portfolio at the end of the current business day; plus (ii) any dividend or capital gains per share declared on behalf of such portfolio that has an ex-dividend date as of the current business day. B is the net asset value per share of the portfolio for the immediately preceding business day. C is (i) the separate account product charges and for each day since the last business day. The daily charge is equal to the annual separate account product charges divided by 365; plus (ii) a charge factor, if any, for any taxes or any tax reserve we have established as a result of the operation of the Separate Account. Transfers During the Annuity Phase: o You may not make a transfer from the fixed account to the Separate Account; o Transfers among the subaccounts will be made by converting the number of annuity units being transferred to the number of annuity units of the subaccount to which the transfer is made, so that the next annuity payment if it were made at that time would be the same amount that it would have been without the transfer. Thereafter, annuity payments will reflect changes in the value of the new annuity units; and o You may make a transfer from the variable annuity option to the fixed annuity option. The amount transferred from a subaccount of the Separate Account will be equal to the product of "(a)" multiplied by "(b)" multiplied by "(c)", where (a) is the number of annuity units representing your interest in the subaccount per annuity payment; (b) is the annuity unit value for the subaccount; and (c) is the present value of $1.00 per payment period for the remaining annuity benefit period based on the attained age of the annuitant at the time of transfer, calculated using the same actuarial basis as the variable annuity rates applied on the annuity date for the annuity option elected. Amounts transferred to the fixed annuity option will be applied under the annuity option elected at the attained age of the annuitant at the time of the 6 transfer using the fixed annuity option table. If at the time of transfer, the then current fixed annuity option rates applicable to this class of contracts provide a greater payment, the greater payment will be made. All amounts and annuity unit values will be determined as of the end of the business day on which the Company receives a notice. FIXED ANNUITY A fixed annuity is a series of payments made during the annuity phase which are guaranteed as to dollar amount by the Company and do not vary with the investment experience of the Separate Account. The Adjusted Contract Value on the day immediately preceding the annuity date will be used to determine the fixed annuity monthly payment. The monthly annuity payment will be based upon the annuity option elected and the appropriate annuity option table. If, as of the annuity calculation date, the then current annuity option rates applicable to this class of contracts provide an annuity payment greater than that which is guaranteed under the same annuity option under this contract, the greater payment will be made. MORTALITY AND EXPENSE GUARANTEE The Company guarantees that the dollar amount of each annuity payment after the first annuity payment will not be affected by variations in mortality or expense experience. LEGAL OR REGULATORY RESTRICTIONS ON TRANSACTIONS If mandated under applicable law, the Company may be required to reject a premium payment. The Company may also be required to block a contract owner's account and thereby refuse to pay any request for transfers, withdrawals, surrenders, death benefits or continue making annuity payments until instructions are received from the appropriate regulator. TAX STATUS OF THE CONTRACTS Tax law imposes several requirements that variable annuities must satisfy in order to receive the tax treatment normally accorded to annuity contracts. DIVERSIFICATION. In order for your Non-Qualified Contract to be considered an annuity contract for federal income tax purposes, we must comply with certain diversification standards with respect to the investments underlying the contract. We believe that we satisfy and will continue to satisfy these diversification standards. However, the tax law concerning these rules is subject to change and to different interpretations. Inadvertent failure to meet these standards may be correctable. Failure to meet these standards would result in immediate taxation to contract owners of gains under their contracts. Consult your tax adviser prior to purchase. If underlying fund shares are sold directly to tax-qualified retirement plans that later lose their tax-qualified status or to non-qualified plans, the separate accounts investing in the underlying fund may fail the diversification requirements of Section 817, which could have adverse tax consequences for variable contract owners, including losing the benefit of tax deferral. REQUIRED DISTRIBUTIONS. In order to be treated as an annuity contract for Federal income tax purposes, Section 72(s) of the Code generally requires any Non-Qualified Contract to contain certain provisions specifying how your interest in the contract will be distributed in the event of the death of an owner of the contract (or on the death of, or change in, any primary annuitant where the contract is owned by a non-natural person). Specifically, Section 72(s) requires that: (a) if any owner dies on or after the annuity starting date, but prior to the time the entire interest in the contract has been distributed, the entire interest in the contract will be distributed at least as rapidly as under the method of distribution being used as of the date of such owner's death; and (b) if any owner dies prior to the annuity starting date, the entire interest in the contract will be distributed within five years after the date of such owner's death. These requirements will be considered satisfied as to any portion of an owner's interest which is payable to or for the benefit of a designated beneficiary and which is distributed over the life of such designated beneficiary or over a period not extending beyond the life expectancy of that beneficiary, provided that such distributions begin within one year of the owner's death. The designated beneficiary refers to a natural person designated by the owner as a beneficiary and to whom ownership of the contract passes by reason of death. However, if the designated beneficiary is the surviving spouse of the deceased owner, the contract may be continued with the surviving spouse as the new owner. The Non-Qualified Contracts contain provisions that are intended to comply with these Code requirements, although no regulations interpreting these requirements have yet been issued. We intend to review such provisions and modify them if necessary to assure that they comply 7 with the applicable requirements when such requirements are clarified by regulation or otherwise. Other rules may apply to Qualified Contracts. MANDATORY DISTRIBUTIONS FOR QUALIFIED PLANS. Federal tax law requires that minimum annual distributions begin by April 1st of the calendar year following the calendar year in which an IRA owner attains age 70 1/2. Participants in qualified plans and 403(b) annuities may defer minimum distributions until the later of April 1st of the calendar year following the calendar year in which they attain age 70 1/2 or the year of retirement (except for 5% or more owners). If you own more than one individual retirement annuity and/or account, you may satisfy the minimum distribution rules on an aggregate basis (i.e., determine the total amount of required distributions from all IRAs and take the required amount from any one or more IRAs). A similar aggregate approach is available to meet your 403(b) minimum distribution requirements if you have multiple 403(b) annuities. Recently promulgated Treasury regulations changed the distribution requirements; therefore, it is important that you consult your tax adviser as to the impact of these regulations on your personal situation. Final income tax regulations regarding minimum distribution requirements were released in June 2004. These regulations affect both deferred and income annuities. Under these new rules, effective with respect to minimum distributions required for the 2006 distribution year, in general, the value of all benefits under a deferred annuity (including death benefits in excess of cash value) must be added to the account value in computing the amount required to be distributed over the applicable period. We will provide you with additional information as to the amount of your interest in the contract that is subject to required minimum distributions under this new rule and either compute the required amount for you or offer to do so at your request. The new rules are not entirely clear and you should consult your tax adviser as to how these rules affect your contract. MINIMUM DISTRIBUTIONS FOR BENEFICIARIES UPON THE CONTRACT OWNER'S DEATH. Upon the death of the contract owner and/or annuitant of a Qualified Contract, the funds remaining in the contract must be completely withdrawn within 5 years from the date of death (including in a single lump sum) or minimum distributions may be taken over the life expectancy of the individual beneficiaries (and in certain situations, trusts for individuals), provided such distributions are payable at least annually and begin within one year from the date of death. Special rules apply in the case of an IRA where the beneficiary is the surviving spouse which allow the spouse to assume the contract as owner. Alternative rules permit a spousal beneficiary under a qualified contract, including an IRA, to defer the minimum distribution requirements until the end of the year in which the deceased spouse would have attained age 70 1/2 or to rollover the death proceeds to his or her own IRA or to another eligible retirement plan in which he or she participates. 8 CONDENSED FINANCIAL INFORMATION The following charts list the Condensed Financial Information (the accumulation unit value information for the accumulation units outstanding) for contracts issued as of December 31, 2007. See "Purchase - Accumulation Units" in the prospectus for information on how accumulation unit values are calculated. The charts present accumulation unit values based upon which riders you select. The charts are in addition to the charts in the prospectus. CONDENSED FINANCIAL NEW PRODUCTS
1.40% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- MET INVESTORS SERIES TRUST GOLDMAN SACHS MID-CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998849 11.971801 110,975.8591 01/01/2005 to 12/31/2005 11.971801 13.285850 107,738.5606 01/01/2006 to 12/31/2006 13.285850 15.157506 94,852.5033 01/01/2007 to 12/31/2007 15.157506 15.408438 90,103.0206 ============ ==== ========== ========= ========= ============== HARRIS OAKMARK INTERNATIONAL SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 10.935611 1,661.5408 01/01/2002 to 12/31/2002 10.935611 8.832552 61,767.4607 01/01/2003 to 12/31/2003 8.832552 11.755482 567,930.7746 01/01/2004 to 12/31/2004 11.755482 13.970748 468,461.1555 01/01/2005 to 12/31/2005 13.970748 15.738453 335,477.5085 01/01/2006 to 12/31/2006 15.738453 19.997636 349,757.6654 01/01/2007 to 12/31/2007 19.997636 19.497553 320,997.3809 ============ ==== ========== ========= ========= ============== LAZARD MID-CAP SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 10.991234 1,316.0853 01/01/2002 to 12/31/2002 10.991234 9.665975 118,900.4673 01/01/2003 to 12/31/2003 9.665975 12.026501 471,795.8061 01/01/2004 to 12/31/2004 12.026501 13.566810 293,841.0626 01/01/2005 to 12/31/2005 13.566810 14.456870 218,218.9503 01/01/2006 to 12/31/2006 14.456870 16.348558 174,472.6015 01/01/2007 to 12/31/2007 16.348558 15.683126 159,350.9153 ============ ==== ========== ========= ========= ============== LEGG MASON PARTNERS AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B) (FORMERLY LEGG MASON AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B)) 03/21/2001 to 12/31/2001 8.041634 7.308054 63,660.6570 01/01/2002 to 12/31/2002 7.308054 5.200438 480,837.8708 01/01/2003 to 12/31/2003 5.200438 6.712800 1,065,070.4451 01/01/2004 to 12/31/2004 6.712800 7.177933 584,753.1445 01/01/2005 to 12/31/2005 7.177933 8.039394 397,123.9613 01/01/2006 to 12/31/2006 8.039394 7.790114 363,694.1567 01/01/2007 to 12/31/2007 7.790114 7.855354 291,569.6083 ============ ==== ========== ========= ========= ==============
9 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.40% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------ LEGG MASON VALUE EQUITY SUB-ACCOUNT (CLASS B) 11/07/2005 to 12/31/2005 10.247260 10.625522 0.0000 01/01/2006 to 12/31/2006 10.625522 11.167932 38,533.2251 01/01/2007 to 12/31/2007 11.167932 10.361388 22,079.2475 ============ ==== ========== ========= ========= ============== LOOMIS SAYLES GLOBAL MARKETS SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988849 10.339483 3,756.1881 01/01/2007 to 12/31/2007 10.339483 13.034716 28,249.7110 ============ ==== ========== ========= ========= ============== LORD ABBETT BOND DEBENTURE SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 13.963875 13.978494 39,278.6617 01/01/2002 to 12/31/2002 13.978494 13.705136 392,181.6024 01/01/2003 to 12/31/2003 13.705136 16.103871 1,080,974.2815 01/01/2004 to 12/31/2004 16.103871 17.176230 648,290.9241 01/01/2005 to 12/31/2005 17.176230 17.191034 467,958.8220 01/01/2006 to 12/31/2006 17.191034 18.503458 426,298.2445 01/01/2007 to 12/31/2007 18.503458 19.439891 375,324.0130 ============ ==== ========== ========= ========= ============== LORD ABBETT GROWTH AND INCOME SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 39.123031 41.392944 52,407.8859 01/01/2002 to 12/31/2002 41.392944 33.421284 328,461.3149 01/01/2003 to 12/31/2003 33.421284 43.085314 640,274.4970 01/01/2004 to 12/31/2004 43.085314 47.857828 443,894.2034 01/01/2005 to 12/31/2005 47.857828 48.795052 338,375.4373 01/01/2006 to 12/31/2006 48.795052 56.676303 299,001.3290 01/01/2007 to 12/31/2007 56.676303 57.963907 261,732.5402 ============ ==== ========== ========= ========= ============== MET/AIM SMALL CAP GROWTH SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 11.852311 2,727.5377 01/01/2002 to 12/31/2002 11.852311 8.472945 286,442.6237 01/01/2003 to 12/31/2003 8.472945 11.602508 528,487.2938 01/01/2004 to 12/31/2004 11.602508 12.176705 514,266.4566 01/01/2005 to 12/31/2005 12.176705 13.000440 378,144.7250 01/01/2006 to 12/31/2006 13.000440 14.638413 340,036.0008 01/01/2007 to 12/31/2007 14.638413 16.031837 289,705.8337 ============ ==== ========== ========= ========= ============== MET/PUTNAM RESEARCH SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.137898 8.065922 67,207.7510 01/01/2002 to 12/31/2002 8.065922 6.298411 258,067.3964 01/01/2003 to 12/31/2003 6.298411 7.722500 404,829.4974 01/01/2004 to 11/19/2004 7.722500 7.933271 320,106.1403 ============ ==== ========== ========= ========= ============== MFS (Reg. TM) EMERGING MARKETS EQUITY SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988849 10.478532 13,203.7716 01/01/2007 to 12/31/2007 10.478532 14.115716 70,637.4919 ============ ==== ========== ========= ========= ==============
10 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.40% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------ MFS (Reg. TM) RESEARCH INTERNATIONAL SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.805686 8.381159 44,261.7817 01/01/2002 to 12/31/2002 8.381159 7.289280 389,172.3820 01/01/2003 to 12/31/2003 7.289280 9.491245 617,615.6489 01/01/2004 to 12/31/2004 9.491245 11.189560 583,677.1368 01/01/2005 to 12/31/2005 11.189560 12.846538 431,277.2218 01/01/2006 to 12/31/2006 12.846538 16.033618 406,916.9031 01/01/2007 to 12/31/2007 16.033618 17.910797 381,250.9783 ============ ==== ========== ========= ========= ============== MONEY MARKET SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 10.032409 10.154282 31,639.8915 01/01/2002 to 12/31/2002 10.154282 10.122875 330,699.3768 01/01/2003 to 12/31/2003 10.122875 10.025490 352,116.6137 01/01/2004 to 12/31/2004 10.025490 9.949131 379,421.0528 01/01/2005 to 04/30/2005 9.949131 9.962144 0.0000 ============ ==== ========== ========= ========= ============== NEUBERGER BERMAN REAL ESTATE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998849 12.833645 137,236.5826 01/01/2005 to 12/31/2005 12.833645 14.337160 83,621.5864 01/01/2006 to 12/31/2006 14.337160 19.451786 90,546.2653 01/01/2007 to 12/31/2007 19.451786 16.301648 67,844.0339 ============ ==== ========== ========= ========= ============== OPPENHEIMER CAPITAL APPRECIATION SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.558733 8.466912 187,903.3752 01/01/2002 to 12/31/2002 8.466912 6.283863 1,098,407.9222 01/01/2003 to 12/31/2003 6.283863 7.964318 2,288,717.7022 01/01/2004 to 12/31/2004 7.964318 8.356218 1,898,933.5377 01/01/2005 to 12/31/2005 8.356218 8.628835 1,522,728.0644 01/01/2006 to 12/31/2006 8.628835 9.157247 1,304,849.1418 01/01/2007 to 12/31/2007 9.157247 10.319460 1,123,712.0953 ============ ==== ========== ========= ========= ============== PIMCO INFLATION PROTECTED BOND SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 10.000000 10.435925 878,270.9261 01/01/2004 to 12/31/2004 10.435925 11.217736 591,684.1184 01/01/2005 to 12/31/2005 11.217736 11.215657 372,241.8055 01/01/2006 to 12/31/2006 11.215657 11.102944 344,036.7657 01/01/2007 to 12/31/2007 11.102944 12.129906 338,950.7205 ============ ==== ========== ========= ========= ==============
11 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.40% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------ PIMCO TOTAL RETURN SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 10.161771 10.536235 95,690.8088 01/01/2002 to 12/31/2002 10.536235 11.355362 1,063,324.6531 01/01/2003 to 12/31/2003 11.355362 11.679662 1,746,944.8377 01/01/2004 to 12/31/2004 11.679662 12.090485 1,158,533.2891 01/01/2005 to 12/31/2005 12.090485 12.190831 958,135.1736 01/01/2006 to 12/31/2006 12.190831 12.564918 920,215.1375 01/01/2007 to 12/31/2007 12.564918 13.326509 799,550.3875 ============ ==== ========== ========= ========= ============== RAINIER LARGE CAP EQUITY SUB-ACCOUNT (CLASS B) 11/12/2007 to 12/31/2007 9.565560 9.983869 3,700.8992 ============ ==== ========== ========= ========= ============== RCM TECHNOLOGY SUB-ACCOUNT (CLASS B) (FORMERLY RCM GLOBAL TECHNOLOGY SUB-ACCOUNT (CLASS B)) 03/21/2001 to 12/31/2001 7.234270 6.093409 44,185.6889 01/01/2002 to 12/31/2002 6.093409 2.960358 183,010.6801 01/01/2003 to 12/31/2003 2.960358 4.599830 387,204.2476 01/01/2004 to 12/31/2004 4.599830 4.340121 374,902.9132 01/01/2005 to 12/31/2005 4.340121 4.751414 291,121.6847 01/01/2006 to 12/31/2006 4.751414 4.936039 228,976.1397 01/01/2007 to 12/31/2007 4.936039 6.401365 210,182.4942 ============ ==== ========== ========= ========= ============== T. ROWE PRICE MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.099086 8.236645 85,522.8017 01/01/2002 to 12/31/2002 8.236645 4.545270 630,000.4208 01/01/2003 to 12/31/2003 4.545270 6.124338 1,412,198.5584 01/01/2004 to 12/31/2004 6.124338 7.115346 782,937.5564 01/01/2005 to 12/31/2005 7.115346 8.043025 699,058.4751 01/01/2006 to 12/31/2006 8.043025 8.420410 609,774.3647 01/01/2007 to 12/31/2007 8.420410 9.767155 562,310.3382 ============ ==== ========== ========= ========= ============== THIRD AVENUE SMALL CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2002 to 12/31/2002 10.000000 8.232502 186,055.8904 01/01/2003 to 12/31/2003 8.232502 11.480838 737,651.3214 01/01/2004 to 12/31/2004 11.480838 14.321488 525,778.8905 01/01/2005 to 12/31/2005 14.321488 16.308935 381,852.4187 01/01/2006 to 12/31/2006 16.308935 18.194563 345,512.2969 01/01/2007 to 12/31/2007 18.194563 17.398251 305,625.0510 ============ ==== ========== ========= ========= ============== TURNER MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998849 11.115049 97,649.7026 01/01/2005 to 12/31/2005 11.115049 12.205834 49,967.7938 01/01/2006 to 12/31/2006 12.205834 12.767461 56,895.4717 01/01/2007 to 12/31/2007 12.767461 15.629122 64,668.2067 ============ ==== ========== ========= ========= ==============
12 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.40% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------ VAN KAMPEN COMSTOCK SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 9.998849 10.475896 13,574.0447 01/01/2006 to 12/31/2006 10.475896 11.989012 35,174.0120 01/01/2007 to 12/31/2007 11.989012 11.526833 25,340.3839 ============ ==== ========== ========= ========= ============== METROPOLITAN SERIES FUND, INC. BLACKROCK MONEY MARKET SUB-ACCOUNT (CLASS B) (FORMERLY MONEY MARKET SUB-ACCOUNT (CLASS B)) 05/01/2005 to 12/31/2005 9.962131 10.067108 311,708.8445 01/01/2006 to 12/31/2006 10.067108 10.379339 311,719.9901 01/01/2007 to 12/31/2007 10.379339 10.726990 326,599.4613 ============ ==== ========== ========= ========= ============== DAVIS VENTURE VALUE SUB-ACCOUNT (CLASS E) 03/21/2001 to 12/31/2001 10.000000 10.156586 188,512.1789 01/01/2002 to 12/31/2002 10.156586 8.357717 1,029,327.1623 01/01/2003 to 12/31/2003 8.357717 10.774657 1,780,472.6958 01/01/2004 to 12/31/2004 10.774657 11.914458 1,643,359.7116 01/01/2005 to 12/31/2005 11.914458 12.940186 1,298,023.2971 01/01/2006 to 12/31/2006 12.940186 14.599039 1,170,674.5812 01/01/2007 to 12/31/2007 14.599039 15.032974 1,009,913.5395 ============ ==== ========== ========= ========= ============== HARRIS OAKMARK FOCUSED VALUE SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 10.000000 11.947753 100,591.8095 01/01/2002 to 12/31/2002 11.947753 10.713489 654,589.4979 01/01/2003 to 12/31/2003 10.713489 13.979999 1,248,378.3443 01/01/2004 to 12/31/2004 13.979999 15.115774 861,229.6083 01/01/2005 to 12/31/2005 15.115774 16.353241 715,239.8882 01/01/2006 to 12/31/2006 16.353241 18.089623 624,598.6039 01/01/2007 to 12/31/2007 18.089623 16.574803 544,768.1865 ============ ==== ========== ========= ========= ============== JENNISON GROWTH SUB-ACCOUNT (CLASS B) 05/01/2002 to 12/31/2002 10.000000 7.628086 309,963.6215 01/01/2003 to 12/31/2003 7.628086 9.755498 633,772.9831 01/01/2004 to 12/31/2004 9.755498 10.479270 484,756.6882 01/01/2005 to 12/31/2005 10.479270 11.732904 294,668.3504 01/01/2006 to 12/31/2006 11.732904 11.862235 270,044.5448 01/01/2007 to 12/31/2007 11.862235 13.028539 251,039.9769 ============ ==== ========== ========= ========= ==============
13 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.40% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------ METLIFE STOCK INDEX SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 10.849814 4,338.9645 01/01/2002 to 12/31/2002 10.849814 8.289818 419,964.7101 01/01/2003 to 12/31/2003 8.289818 10.453078 866,010.5131 01/01/2004 to 12/31/2004 10.453078 11.366871 774,439.1885 01/01/2005 to 12/31/2005 11.366871 11.699773 684,474.3394 01/01/2006 to 12/31/2006 11.699773 13.289654 635,296.8127 01/01/2007 to 12/31/2007 13.289654 13.755791 575,088.9353 ============ ==== ========== ========= ========= ============== WESTERN ASSET MANAGEMENT U.S. GOVERNMENT SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 15.802857 15.786672 63,577.1450 01/01/2006 to 12/31/2006 15.786672 16.177236 0.0000 01/01/2007 to 12/31/2007 16.177236 16.594510 6,590.1017 ============ ==== ========== ========= ========= ============== MET INVESTORS SERIES TRUST - ASSET ALLOCATION PROGRAM (CLASS B) METLIFE AGGRESSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.302502 10.691554 423,653.0455 01/01/2005 to 12/31/2005 10.691554 11.637720 842,785.6994 01/01/2006 to 12/31/2006 11.637720 13.042619 865,985.8199 01/01/2007 to 12/31/2007 13.042619 13.231586 745,104.5513 ============ ==== ========== ========= ========= ============== METLIFE BALANCED STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.102642 10.395455 2,131,841.0010 01/01/2005 to 12/31/2005 10.395455 10.981407 3,317,209.3937 01/01/2006 to 12/31/2006 10.981407 12.126242 3,443,230.6998 01/01/2007 to 12/31/2007 12.126242 12.540561 3,403,431.2772 ============ ==== ========== ========= ========= ============== METLIFE DEFENSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 9.942753 10.111501 251,883.7423 01/01/2005 to 12/31/2005 10.111501 10.418004 325,570.8705 01/01/2006 to 12/31/2006 10.418004 11.159705 336,242.0816 01/01/2007 to 12/31/2007 11.159705 11.655090 517,011.3947 ============ ==== ========== ========= ========= ============== METLIFE GROWTH STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.242545 10.606431 1,612,727.0590 01/01/2005 to 12/31/2005 10.606431 11.413760 2,588,357.6661 01/01/2006 to 12/31/2006 11.413760 12.785659 2,705,623.6941 01/01/2007 to 12/31/2007 12.785659 13.199806 2,570,950.8382 ============ ==== ========== ========= ========= ============== METLIFE MODERATE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.012704 10.231750 1,118,951.6810 01/01/2005 to 12/31/2005 10.231750 10.676378 1,295,927.8258 01/01/2006 to 12/31/2006 10.676378 11.605616 1,317,042.5067 01/01/2007 to 12/31/2007 11.605616 12.153713 1,364,352.6728 ============ ==== ========== ========= ========= ==============
14 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.50% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- MET INVESTORS SERIES TRUST GOLDMAN SACHS MID-CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998767 11.963775 385,752.4248 01/01/2005 to 12/31/2005 11.963775 13.263723 471,799.0265 01/01/2006 to 12/31/2006 13.263723 15.117186 490,380.3953 01/01/2007 to 12/31/2007 15.117186 15.352009 420,766.6302 ============ ==== ========== ========= ========= ============== HARRIS OAKMARK INTERNATIONAL SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 8.751972 11.747643 756,819.7494 01/01/2004 to 12/31/2004 11.747643 13.947450 1,351,551.7323 01/01/2005 to 12/31/2005 13.947450 15.696557 1,096,728.8216 01/01/2006 to 12/31/2006 15.696557 19.924541 1,181,055.9347 01/01/2007 to 12/31/2007 19.924541 19.406759 1,029,661.8912 ============ ==== ========== ========= ========= ============== LAZARD MID-CAP SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 9.728989 12.018475 480,095.4897 01/01/2004 to 12/31/2004 12.018475 13.544176 472,333.6992 01/01/2005 to 12/31/2005 13.544176 14.418376 360,528.5486 01/01/2006 to 12/31/2006 14.418376 16.288783 322,292.7085 01/01/2007 to 12/31/2007 16.288783 15.610081 307,336.3229 ============ ==== ========== ========= ========= ============== LEGG MASON PARTNERS AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B) (FORMERLY LEGG MASON AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B)) 05/01/2003 to 12/31/2003 5.505944 6.708323 1,029,156.0732 01/01/2004 to 12/31/2004 6.708323 7.165960 1,409,714.5048 01/01/2005 to 12/31/2005 7.165960 8.017990 912,555.5370 01/01/2006 to 12/31/2006 8.017990 7.761627 865,107.0244 01/01/2007 to 12/31/2007 7.761627 7.818763 768,397.8206 ============ ==== ========== ========= ========= ============== LEGG MASON VALUE EQUITY SUB-ACCOUNT (CLASS B) 11/07/2005 to 12/31/2005 10.247064 10.623775 9,324.5179 01/01/2006 to 12/31/2006 10.623775 11.154963 81,551.1511 01/01/2007 to 12/31/2007 11.154963 10.338948 343,368.8306 ============ ==== ========== ========= ========= ============== LOOMIS SAYLES GLOBAL MARKETS SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988767 10.332542 11,206.9474 01/01/2007 to 12/31/2007 10.332542 13.012885 129,039.2612 ============ ==== ========== ========= ========= ============== LORD ABBETT BOND DEBENTURE SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 14.697264 16.093112 923,928.1901 01/01/2004 to 12/31/2004 16.093112 17.147561 1,131,596.6690 01/01/2005 to 12/31/2005 17.147561 17.145239 748,444.4360 01/01/2006 to 12/31/2006 17.145239 18.435781 730,961.6142 01/01/2007 to 12/31/2007 18.435781 19.349333 688,689.2732 ============ ==== ========== ========= ========= ==============
15 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.50% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- LORD ABBETT GROWTH AND INCOME SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 34.555426 43.056580 525,677.3736 01/01/2004 to 12/31/2004 43.056580 47.778007 722,605.9075 01/01/2005 to 12/31/2005 47.778007 48.665131 556,709.7101 01/01/2006 to 12/31/2006 48.665131 56.469091 565,427.4055 01/01/2007 to 12/31/2007 56.469091 57.693957 507,883.6488 ============ ==== ========== ========= ========= ============== MET/AIM SMALL CAP GROWTH SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 8.707674 11.594771 508,558.9718 01/01/2004 to 12/31/2004 11.594771 12.156391 1,007,144.4117 01/01/2005 to 12/31/2005 12.156391 12.965826 758,178.4177 01/01/2006 to 12/31/2006 12.965826 14.584886 715,236.5733 01/01/2007 to 12/31/2007 14.584886 15.957165 712,915.0942 ============ ==== ========== ========= ========= ============== MET/PUTNAM RESEARCH SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 6.425734 7.717350 184,539.7269 01/01/2004 to 11/19/2004 7.717350 7.920970 303,419.9832 ============ ==== ========== ========= ========= ============== MFS (Reg. TM) EMERGING MARKETS EQUITY SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988767 10.471493 31,376.9890 01/01/2007 to 12/31/2007 10.471493 14.092068 222,274.4968 ============ ==== ========== ========= ========= ============== MFS (Reg. TM) RESEARCH INTERNATIONAL SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 7.334391 9.484912 341,186.9079 01/01/2004 to 12/31/2004 9.484912 11.170897 931,002.4173 01/01/2005 to 12/31/2005 11.170897 12.812338 718,459.0428 01/01/2006 to 12/31/2006 12.812338 15.975005 849,134.1505 01/01/2007 to 12/31/2007 15.975005 17.827392 981,756.7932 ============ ==== ========== ========= ========= ============== MONEY MARKET SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 10.096666 10.018792 199,522.4947 01/01/2004 to 12/31/2004 10.018792 9.932521 321,584.5729 01/01/2005 to 04/30/2005 9.932521 9.942272 0.0000 ============ ==== ========== ========= ========= ============== NEUBERGER BERMAN REAL ESTATE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998767 12.825046 341,279.4008 01/01/2005 to 12/31/2005 12.825046 14.313282 284,966.0807 01/01/2006 to 12/31/2006 14.313282 19.400065 341,923.2420 01/01/2007 to 12/31/2007 19.400065 16.241955 287,939.8016 ============ ==== ========== ========= ========= ==============
16 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.50% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------- OPPENHEIMER CAPITAL APPRECIATION SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 6.545686 7.959003 1,870,642.0503 01/01/2004 to 12/31/2004 7.959003 8.342276 2,688,780.5124 01/01/2005 to 12/31/2005 8.342276 8.605857 2,117,060.4438 01/01/2006 to 12/31/2006 8.605857 9.123759 2,000,058.6283 01/01/2007 to 12/31/2007 9.123759 10.271393 2,041,909.8369 ============ ==== ========== ========= ========= ============== PIMCO INFLATION PROTECTED BOND SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 10.000000 10.428951 979,191.3103 01/01/2004 to 12/31/2004 10.428951 11.199010 1,664,254.2638 01/01/2005 to 12/31/2005 11.199010 11.185776 1,258,097.5813 01/01/2006 to 12/31/2006 11.185776 11.062326 1,081,097.2073 01/01/2007 to 12/31/2007 11.062326 12.073393 1,176,094.6040 ============ ==== ========== ========= ========= ============== PIMCO TOTAL RETURN SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 11.613154 11.671860 984,214.9295 01/01/2004 to 12/31/2004 11.671860 12.070302 1,124,179.3780 01/01/2005 to 12/31/2005 12.070302 12.158353 934,478.0215 01/01/2006 to 12/31/2006 12.158353 12.518956 1,006,056.1846 01/01/2007 to 12/31/2007 12.518956 13.264424 987,878.3809 ============ ==== ========== ========= ========= ============== RAINIER LARGE CAP EQUITY SUB-ACCOUNT (CLASS B) 11/12/2007 to 12/31/2007 9.565243 9.982197 31,728.5190 ============ ==== ========== ========= ========= ============== RCM TECHNOLOGY SUB-ACCOUNT (CLASS B) (FORMERLY RCM GLOBAL TECHNOLOGY SUB-ACCOUNT (CLASS B)) 05/01/2003 to 12/31/2003 3.305316 4.596762 376,764.9283 01/01/2004 to 12/31/2004 4.596762 4.332878 944,721.5371 01/01/2005 to 12/31/2005 4.332878 4.738761 763,828.3954 01/01/2006 to 12/31/2006 4.738761 4.917987 735,899.2357 01/01/2007 to 12/31/2007 4.917987 6.371552 821,833.3211 ============ ==== ========== ========= ========= ============== T. ROWE PRICE MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 4.758231 6.120250 1,265,528.1007 01/01/2004 to 12/31/2004 6.120250 7.103474 1,418,696.1502 01/01/2005 to 12/31/2005 7.103474 8.021608 1,505,958.0827 01/01/2006 to 12/31/2006 8.021608 8.389616 1,301,126.7319 01/01/2007 to 12/31/2007 8.389616 9.721661 1,271,289.4453 ============ ==== ========== ========= ========= ============== THIRD AVENUE SMALL CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 8.471513 11.473181 822,102.8845 01/01/2004 to 12/31/2004 11.473181 14.297607 1,262,122.0154 01/01/2005 to 12/31/2005 14.297607 16.265528 1,141,959.3647 01/01/2006 to 12/31/2006 16.265528 18.128055 1,061,165.5239 01/01/2007 to 12/31/2007 18.128055 17.317227 1,108,343.4965 ============ ==== ========== ========= ========= ==============
17 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.50% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- TURNER MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998767 11.107592 304,226.4600 01/01/2005 to 12/31/2005 11.107592 12.185496 187,019.8349 01/01/2006 to 12/31/2006 12.185496 12.733479 195,773.9448 01/01/2007 to 12/31/2007 12.733479 15.571869 281,775.0479 ============ ==== ========== ========= ========= ============== VAN KAMPEN COMSTOCK SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 9.998767 10.468869 77,238.6746 01/01/2006 to 12/31/2006 10.468869 11.969030 182,103.1289 01/01/2007 to 12/31/2007 11.969030 11.496053 185,588.1520 ============ ==== ========== ========= ========= ============== METROPOLITAN SERIES FUND, INC. BLACKROCK MONEY MARKET SUB-ACCOUNT (CLASS B) (FORMERLY MONEY MARKET SUB-ACCOUNT (CLASS B)) 05/01/2005 to 12/31/2005 9.942177 10.040284 314,820.6458 01/01/2006 to 12/31/2006 10.040284 10.341366 648,996.2731 01/01/2007 to 12/31/2007 10.341366 10.677005 463,556.3497 ============ ==== ========== ========= ========= ============== DAVIS VENTURE VALUE SUB-ACCOUNT (CLASS E) 05/01/2003 to 12/31/2003 8.556367 10.767472 1,337,704.9715 01/01/2004 to 12/31/2004 10.767472 11.894586 2,810,933.8280 01/01/2005 to 12/31/2005 11.894586 12.905737 2,340,963.5903 01/01/2006 to 12/31/2006 12.905737 14.545670 2,305,536.6054 01/01/2007 to 12/31/2007 14.545670 14.962968 2,155,727.5537 ============ ==== ========== ========= ========= ============== HARRIS OAKMARK FOCUSED VALUE SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 10.939577 13.970674 998,905.5531 01/01/2004 to 12/31/2004 13.970674 15.090555 1,258,947.6906 01/01/2005 to 12/31/2005 15.090555 16.309697 1,065,949.9144 01/01/2006 to 12/31/2006 16.309697 18.023482 979,787.7027 01/01/2007 to 12/31/2007 18.023482 16.497600 919,954.8595 ============ ==== ========== ========= ========= ============== JENNISON GROWTH SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 8.069248 9.748996 790,492.1098 01/01/2004 to 12/31/2004 9.748996 10.461794 1,210,962.0864 01/01/2005 to 12/31/2005 10.461794 11.701673 963,570.1510 01/01/2006 to 12/31/2006 11.701673 11.818868 900,755.2061 01/01/2007 to 12/31/2007 11.818868 12.967866 856,242.3937 ============ ==== ========== ========= ========= ==============
18 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.50% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------- METLIFE STOCK INDEX SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 8.627802 10.446114 527,967.2267 01/01/2004 to 12/31/2004 10.446114 11.347920 906,649.8217 01/01/2005 to 12/31/2005 11.347920 11.668631 910,222.5291 01/01/2006 to 12/31/2006 11.668631 13.241076 859,032.6016 01/01/2007 to 12/31/2007 13.241076 13.691738 788,994.3507 ============ ==== ========== ========= ========= =============== WESTERN ASSET MANAGEMENT U.S. GOVERNMENT SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 15.637653 15.611281 139,800.7028 01/01/2006 to 12/31/2006 15.611281 15.981559 237,649.2315 01/01/2007 to 12/31/2007 15.981559 16.377312 269,307.2655 ============ ==== ========== ========= ========= =============== MET INVESTORS SERIES TRUST - ASSET ALLOCATION PROGRAM (CLASS B) METLIFE AGGRESSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.301967 10.689858 1,667,502.9330 01/01/2005 to 12/31/2005 10.689858 11.624285 2,989,218.8353 01/01/2006 to 12/31/2006 11.624285 13.014582 3,243,607.4584 01/01/2007 to 12/31/2007 13.014582 13.189874 3,303,842.0630 ============ ==== ========== ========= ========= =============== METLIFE BALANCED STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.102117 10.393805 6,546,978.7990 01/01/2005 to 12/31/2005 10.393805 10.968727 13,965,365.0188 01/01/2006 to 12/31/2006 10.968727 12.100171 16,563,341.4943 01/01/2007 to 12/31/2007 12.100171 12.501027 19,359,187.5971 ============ ==== ========== ========= ========= =============== METLIFE DEFENSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 9.942236 10.109895 309,388.4846 01/01/2005 to 12/31/2005 10.109895 10.405971 846,563.9767 01/01/2006 to 12/31/2006 10.405971 11.135709 1,226,978.5669 01/01/2007 to 12/31/2007 11.135709 11.618345 1,665,556.5249 ============ ==== ========== ========= ========= =============== METLIFE GROWTH STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.242012 10.604748 5,614,494.9200 01/01/2005 to 12/31/2005 10.604748 11.400582 12,106,413.7772 01/01/2006 to 12/31/2006 11.400582 12.758172 15,990,624.8470 01/01/2007 to 12/31/2007 12.758172 13.158195 19,602,856.3872 ============ ==== ========== ========= ========= =============== METLIFE MODERATE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.012183 10.230125 1,561,629.5600 01/01/2005 to 12/31/2005 10.230125 10.664048 3,762,480.2562 01/01/2006 to 12/31/2006 10.664048 11.580662 4,594,947.6354 01/01/2007 to 12/31/2007 11.580662 12.115397 5,335,534.1478 ============ ==== ========== ========= ========= ===============
19 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.55% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------- MET INVESTORS SERIES TRUST GOLDMAN SACHS MID-CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998726 11.959762 1,102,347.7665 01/01/2005 to 12/31/2005 11.959762 13.252669 1,255,052.0060 01/01/2006 to 12/31/2006 13.252669 15.097059 1,840,179.4484 01/01/2007 to 12/31/2007 15.097059 15.323863 1,974,328.5432 ============ ==== ========== ========= ========= ============== HARRIS OAKMARK INTERNATIONAL SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 10.931888 4,037.2252 01/01/2002 to 12/31/2002 10.931888 8.816298 276,216.8987 01/01/2003 to 12/31/2003 8.816298 11.716282 2,862,323.8722 01/01/2004 to 12/31/2004 11.716282 13.903248 3,433,073.0381 01/01/2005 to 12/31/2005 13.903248 15.639015 3,053,798.5167 01/01/2006 to 12/31/2006 15.639015 19.841608 3,839,493.5102 01/01/2007 to 12/31/2007 19.841608 19.316263 3,627,717.1768 ============ ==== ========== ========= ========= ============== LAZARD MID-CAP SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 10.987487 20,124.3000 01/01/2002 to 12/31/2002 10.987487 9.648180 538,310.0754 01/01/2003 to 12/31/2003 9.648180 11.986389 2,255,146.6683 01/01/2004 to 12/31/2004 11.986389 13.501246 1,793,295.2164 01/01/2005 to 12/31/2005 13.501246 14.365513 1,502,465.8760 01/01/2006 to 12/31/2006 14.365513 16.220973 1,416,020.0097 01/01/2007 to 12/31/2007 16.220973 15.537278 1,317,758.5597 ============ ==== ========== ========= ========= ============== LEGG MASON PARTNERS AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B) (FORMERLY LEGG MASON AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B)) 03/21/2001 to 12/31/2001 8.041634 7.299489 375,946.0256 01/01/2002 to 12/31/2002 7.299489 5.186539 1,550,682.3521 01/01/2003 to 12/31/2003 5.186539 6.684840 4,963,173.8274 01/01/2004 to 12/31/2004 6.684840 7.137295 4,250,790.1304 01/01/2005 to 12/31/2005 7.137295 7.981937 2,950,067.8894 01/01/2006 to 12/31/2006 7.981937 7.722873 3,052,274.0469 01/01/2007 to 12/31/2007 7.722873 7.775812 2,788,672.1390 ============ ==== ========== ========= ========= ============== LEGG MASON VALUE EQUITY SUB-ACCOUNT (CLASS B) 11/07/2005 to 12/31/2005 10.246967 10.622902 11,199.5403 01/01/2006 to 12/31/2006 10.622902 11.148484 782,041.0111 01/01/2007 to 12/31/2007 11.148484 10.327747 1,025,605.6494 ============ ==== ========== ========= ========= ============== LOOMIS SAYLES GLOBAL MARKETS SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988726 10.329074 193,617.3219 01/01/2007 to 12/31/2007 10.329074 13.001983 1,346,098.4166 ============ ==== ========== ========= ========= ==============
20 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.55% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- LORD ABBETT BOND DEBENTURE SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 13.963875 13.962133 337,551.0448 01/01/2002 to 12/31/2002 13.962133 13.668578 2,112,043.8536 01/01/2003 to 12/31/2003 13.668578 16.036858 6,432,602.9652 01/01/2004 to 12/31/2004 16.036858 17.079057 5,049,160.4140 01/01/2005 to 12/31/2005 17.079057 17.068231 3,421,340.7498 01/01/2006 to 12/31/2006 17.068231 18.343828 3,378,801.5732 01/01/2007 to 12/31/2007 18.343828 19.243149 3,061,412.7241 ============ ==== ========== ========= ========= ============== LORD ABBETT GROWTH AND INCOME SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 39.123031 41.344503 194,262.4069 01/01/2002 to 12/31/2002 41.344503 33.332049 1,007,684.6491 01/01/2003 to 12/31/2003 33.332049 42.905952 2,717,972.9723 01/01/2004 to 12/31/2004 42.905952 47.587002 2,478,937.4046 01/01/2005 to 12/31/2005 47.587002 48.446417 1,980,166.9179 01/01/2006 to 12/31/2006 48.446417 56.187289 1,972,468.7829 01/01/2007 to 12/31/2007 56.187289 57.377185 1,815,200.8221 ============ ==== ========== ========= ========= ============== MET/AIM SMALL CAP GROWTH SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 11.848284 28,117.1670 01/01/2002 to 12/31/2002 11.848284 8.457339 885,410.3746 01/01/2003 to 12/31/2003 8.457339 11.563798 2,268,579.5739 01/01/2004 to 12/31/2004 11.563798 12.117839 3,030,400.5294 01/01/2005 to 12/31/2005 12.117839 12.918267 2,267,560.3441 01/01/2006 to 12/31/2006 12.918267 14.524142 2,367,140.1379 01/01/2007 to 12/31/2007 14.524142 15.882719 2,161,461.2596 ============ ==== ========== ========= ========= ============== MET/PUTNAM RESEARCH SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.137898 8.056476 266,878.5685 01/01/2002 to 12/31/2002 8.056476 6.281590 901,094.8229 01/01/2003 to 12/31/2003 6.281590 7.690349 1,817,499.2312 01/01/2004 to 11/19/2004 7.690349 7.889764 2,035,854.2350 ============ ==== ========== ========= ========= ============== MFS (Reg. TM) EMERGING MARKETS EQUITY SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988726 10.467975 234,049.8683 01/01/2007 to 12/31/2007 10.467975 14.080259 1,220,647.4457 ============ ==== ========== ========= ========= ==============
21 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.55% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------- MFS (Reg. TM) RESEARCH INTERNATIONAL SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.805686 8.371336 253,462.5773 01/01/2002 to 12/31/2002 8.371336 7.269814 1,423,606.5757 01/01/2003 to 12/31/2003 7.269814 9.451731 2,681,802.5049 01/01/2004 to 12/31/2004 9.451731 11.126240 3,948,676.3779 01/01/2005 to 12/31/2005 11.126240 12.754761 3,011,325.8171 01/01/2006 to 12/31/2006 12.754761 15.895291 3,499,951.2116 01/01/2007 to 12/31/2007 15.895291 17.729518 3,511,942.6595 ============ ==== ========== ========= ========= =============== MONEY MARKET SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 10.032441 10.142394 431,445.5300 01/01/2002 to 12/31/2002 10.142394 10.095861 2,283,173.6792 01/01/2003 to 12/31/2003 10.095861 9.983746 2,948,898.2150 01/01/2004 to 12/31/2004 9.983746 9.892815 2,479,422.6610 01/01/2005 to 04/30/2005 9.892815 9.900912 71,090.2589 ============ ==== ========== ========= ========= =============== NEUBERGER BERMAN REAL ESTATE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998726 12.820747 1,285,526.3249 01/01/2005 to 12/31/2005 12.820747 14.301354 1,037,085.5635 01/01/2006 to 12/31/2006 14.301354 19.374246 1,550,846.3065 01/01/2007 to 12/31/2007 19.374246 16.212180 1,281,966.1503 ============ ==== ========== ========= ========= =============== OPPENHEIMER CAPITAL APPRECIATION SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.558733 8.456989 612,798.0288 01/01/2002 to 12/31/2002 8.456989 6.267067 3,252,130.4928 01/01/2003 to 12/31/2003 6.267067 7.931148 9,406,939.8845 01/01/2004 to 12/31/2004 7.931148 8.308913 10,385,882.8179 01/01/2005 to 12/31/2005 8.308913 8.567167 7,959,046.9005 01/01/2006 to 12/31/2006 8.567167 9.078212 7,444,317.5078 01/01/2007 to 12/31/2007 9.078212 10.214981 6,205,886.9023 ============ ==== ========== ========= ========= =============== PIMCO INFLATION PROTECTED BOND SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 10.000000 10.425465 4,619,316.3976 01/01/2004 to 12/31/2004 10.425465 11.189656 5,890,782.1348 01/01/2005 to 12/31/2005 11.189656 11.170860 4,640,469.4529 01/01/2006 to 12/31/2006 11.170860 11.042066 4,659,084.7052 01/01/2007 to 12/31/2007 11.042066 12.045226 4,427,688.3956 ============ ==== ========== ========= ========= ===============
22 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.55% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- PIMCO TOTAL RETURN SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 10.161771 10.523893 594,267.2482 01/01/2002 to 12/31/2002 10.523893 11.325063 4,438,758.8429 01/01/2003 to 12/31/2003 11.325063 11.631034 8,254,960.4589 01/01/2004 to 12/31/2004 11.631034 12.022053 7,156,721.7548 01/01/2005 to 12/31/2005 12.022053 12.103714 6,140,732.1433 01/01/2006 to 12/31/2006 12.103714 12.456484 6,241,551.6398 01/01/2007 to 12/31/2007 12.456484 13.191600 6,255,575.1940 ============ ==== ========== ========= ========= ============== RAINIER LARGE CAP EQUITY SUB-ACCOUNT (CLASS B) 11/12/2007 to 12/31/2007 9.565084 9.981362 252,989.2550 ============ ==== ========== ========= ========= ============== RCM TECHNOLOGY SUB-ACCOUNT (CLASS B) (FORMERLY RCM GLOBAL TECHNOLOGY SUB-ACCOUNT (CLASS B)) 03/21/2001 to 12/31/2001 7.234270 6.086250 213,915.6068 01/01/2002 to 12/31/2002 6.086250 2.952425 883,327.5873 01/01/2003 to 12/31/2003 2.952425 4.580635 1,633,943.3731 01/01/2004 to 12/31/2004 4.580635 4.315511 2,454,413.2550 01/01/2005 to 12/31/2005 4.315511 4.717416 1,827,496.1004 01/01/2006 to 12/31/2006 4.717416 4.893393 2,017,174.2673 01/01/2007 to 12/31/2007 4.893393 6.336505 3,201,065.8191 ============ ==== ========== ========= ========= ============== T. ROWE PRICE MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.099086 8.226988 413,454.3044 01/01/2002 to 12/31/2002 8.226988 4.533110 1,942,616.5055 01/01/2003 to 12/31/2003 4.533110 6.098811 6,058,122.8378 01/01/2004 to 12/31/2004 6.098811 7.075043 5,077,616.0133 01/01/2005 to 12/31/2005 7.075043 7.985522 4,887,124.2422 01/01/2006 to 12/31/2006 7.985522 8.347710 5,129,926.6394 01/01/2007 to 12/31/2007 8.347710 9.668240 5,322,789.3870 ============ ==== ========== ========= ========= ============== THIRD AVENUE SMALL CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2002 to 12/31/2002 10.000000 8.224231 574,173.6446 01/01/2003 to 12/31/2003 8.224231 11.452136 3,289,763.0104 01/01/2004 to 12/31/2004 11.452136 14.264232 3,613,703.7635 01/01/2005 to 12/31/2005 14.264232 16.219476 3,159,008.3602 01/01/2006 to 12/31/2006 16.219476 18.067717 3,490,210.3731 01/01/2007 to 12/31/2007 18.067717 17.250907 3,167,307.4367 ============ ==== ========== ========= ========= ============== TURNER MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998726 11.103863 807,745.9515 01/01/2005 to 12/31/2005 11.103863 12.175337 526,216.8326 01/01/2006 to 12/31/2006 12.175337 12.716515 822,609.2209 01/01/2007 to 12/31/2007 12.716515 15.543311 1,012,832.9945 ============ ==== ========== ========= ========= ==============
23 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.55% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- VAN KAMPEN COMSTOCK SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 9.998726 10.465357 290,014.4667 01/01/2006 to 12/31/2006 10.465357 11.959052 1,032,186.8204 01/01/2007 to 12/31/2007 11.959052 11.480694 1,188,014.5277 ============ ==== ========== ========= ========= ============== METROPOLITAN SERIES FUND, INC. BLACKROCK MONEY MARKET SUB-ACCOUNT (CLASS B) (FORMERLY MONEY MARKET SUB-ACCOUNT (CLASS B)) 05/01/2005 to 12/31/2005 9.900777 9.995162 3,039,676.2882 01/01/2006 to 12/31/2006 9.995162 10.289758 3,814,479.9963 01/01/2007 to 12/31/2007 10.289758 10.618384 5,599,625.4943 ============ ==== ========== ========= ========= ============== DAVIS VENTURE VALUE SUB-ACCOUNT (CLASS E) 03/21/2001 to 12/31/2001 10.000000 10.144691 642,550.3776 01/01/2002 to 12/31/2002 10.144691 8.335400 3,375,423.5555 01/01/2003 to 12/31/2003 8.335400 10.729806 7,298,409.0367 01/01/2004 to 12/31/2004 10.729806 11.847038 8,923,006.6889 01/01/2005 to 12/31/2005 11.847038 12.847742 7,396,347.7022 01/01/2006 to 12/31/2006 12.847742 14.473087 7,633,129.8588 01/01/2007 to 12/31/2007 14.473087 14.880819 7,686,213.7456 ============ ==== ========== ========= ========= ============== HARRIS OAKMARK FOCUSED VALUE SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 10.000000 11.933782 485,066.9543 01/01/2002 to 12/31/2002 11.933782 10.684902 2,278,921.2261 01/01/2003 to 12/31/2003 10.684902 13.921813 5,568,162.6649 01/01/2004 to 12/31/2004 13.921813 15.030239 4,728,111.6992 01/01/2005 to 12/31/2005 15.030239 16.236413 4,041,727.0568 01/01/2006 to 12/31/2006 16.236413 17.933554 3,962,750.8350 01/01/2007 to 12/31/2007 17.933554 16.407030 3,413,682.7803 ============ ==== ========== ========= ========= ============== JENNISON GROWTH SUB-ACCOUNT (CLASS B) 05/01/2002 to 12/31/2002 10.000000 7.620419 1,050,939.2922 01/01/2003 to 12/31/2003 7.620419 9.731099 3,449,109.3346 01/01/2004 to 12/31/2004 9.731099 10.437354 3,838,975.7645 01/01/2005 to 12/31/2005 10.437354 11.668521 2,877,686.1189 01/01/2006 to 12/31/2006 11.668521 11.779506 3,022,831.1946 01/01/2007 to 12/31/2007 11.779506 12.918182 2,769,925.0974 ============ ==== ========== ========= ========= ==============
24 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.55% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- -------------------- METLIFE STOCK INDEX SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 10.846117 60,513.3225 01/01/2002 to 12/31/2002 10.846117 8.274548 974,270.3069 01/01/2003 to 12/31/2003 8.274548 10.418203 2,321,792.9079 01/01/2004 to 12/31/2004 10.418203 11.311929 3,866,252.2493 01/01/2005 to 12/31/2005 11.311929 11.625825 3,980,676.4049 01/01/2006 to 12/31/2006 11.625825 13.185925 3,772,231.0537 01/01/2007 to 12/31/2007 13.185925 13.627858 3,599,478.2320 ============ ==== ========== ========= ========= ================ WESTERN ASSET MANAGEMENT U.S. GOVERNMENT SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 15.555699 15.524317 47,979.6539 01/01/2006 to 12/31/2006 15.524317 15.884610 161,548.7856 01/01/2007 to 12/31/2007 15.884610 16.269782 266,886.4325 ============ ==== ========== ========= ========= ================ MET INVESTORS SERIES TRUST - ASSET ALLOCATION PROGRAM (CLASS B) METLIFE AGGRESSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.301699 10.689009 2,649,613.2340 01/01/2005 to 12/31/2005 10.689009 11.617570 5,300,779.7737 01/01/2006 to 12/31/2006 11.617570 13.000581 7,468,528.3660 01/01/2007 to 12/31/2007 13.000581 13.169061 7,419,034.2610 ============ ==== ========== ========= ========= ================ METLIFE BALANCED STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.101854 10.392980 19,253,700.8800 01/01/2005 to 12/31/2005 10.392980 10.962390 41,877,501.8531 01/01/2006 to 12/31/2006 10.962390 12.087152 64,425,856.1014 01/01/2007 to 12/31/2007 12.087152 12.481300 86,637,148.3553 ============ ==== ========== ========= ========= ================ METLIFE DEFENSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 9.941977 10.109092 2,013,349.9680 01/01/2005 to 12/31/2005 10.109092 10.399957 6,980,567.5684 01/01/2006 to 12/31/2006 10.399957 11.123726 9,747,921.0275 01/01/2007 to 12/31/2007 11.123726 11.600009 12,585,727.7053 ============ ==== ========== ========= ========= ================ METLIFE GROWTH STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.241746 10.603907 15,209,446.5400 01/01/2005 to 12/31/2005 10.603907 11.393996 32,218,154.4778 01/01/2006 to 12/31/2006 11.393996 12.744446 64,374,999.9162 01/01/2007 to 12/31/2007 12.744446 13.137431 104,224,424.3930 ============ ==== ========== ========= ========= ================ METLIFE MODERATE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.011923 10.229313 6,153,817.0840 01/01/2005 to 12/31/2005 10.229313 10.657886 13,175,600.1368 01/01/2006 to 12/31/2006 10.657886 11.568201 19,584,843.4273 01/01/2007 to 12/31/2007 11.568201 12.096278 26,417,788.6885 ============ ==== ========== ========= ========= ================
25 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.65% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- MET INVESTORS SERIES TRUST GOLDMAN SACHS MID-CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998644 11.951741 477,074.9357 01/01/2005 to 12/31/2005 11.951741 13.230588 433,735.8007 01/01/2006 to 12/31/2006 13.230588 15.056884 509,180.0631 01/01/2007 to 12/31/2007 15.056884 15.267724 480,483.4273 ============ ==== ========== ========= ========= ============== HARRIS OAKMARK INTERNATIONAL SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 10.929396 1,596.2444 01/01/2002 to 12/31/2002 10.929396 8.805453 200,259.1478 01/01/2003 to 12/31/2003 8.805453 11.690181 1,800,857.3596 01/01/2004 to 12/31/2004 11.690181 13.858377 1,893,872.6921 01/01/2005 to 12/31/2005 13.858377 15.573010 1,460,926.9241 01/01/2006 to 12/31/2006 15.573010 19.738183 1,444,291.5282 01/01/2007 to 12/31/2007 19.738183 19.196255 1,309,437.7594 ============ ==== ========== ========= ========= ============== LAZARD MID-CAP SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 10.984994 21,430.4004 01/01/2002 to 12/31/2002 10.984994 9.636340 372,265.9861 01/01/2003 to 12/31/2003 9.636340 11.959724 1,390,805.3998 01/01/2004 to 12/31/2004 11.959724 13.457712 1,044,402.9697 01/01/2005 to 12/31/2005 13.457712 14.304925 901,098.2128 01/01/2006 to 12/31/2006 14.304925 16.136462 798,060.0015 01/01/2007 to 12/31/2007 16.136462 15.440795 795,947.1799 ============ ==== ========== ========= ========= ============== LEGG MASON PARTNERS AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B) (FORMERLY LEGG MASON AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B)) 03/21/2001 to 12/31/2001 8.041634 7.293775 200,665.6505 01/01/2002 to 12/31/2002 7.293775 5.177286 1,182,455.2685 01/01/2003 to 12/31/2003 5.177286 6.666256 3,040,597.8790 01/01/2004 to 12/31/2004 6.666256 7.110320 2,240,054.2473 01/01/2005 to 12/31/2005 7.110320 7.943847 1,493,694.9694 01/01/2006 to 12/31/2006 7.943847 7.678353 1,319,287.8541 01/01/2007 to 12/31/2007 7.678353 7.723216 1,192,379.9742 ============ ==== ========== ========= ========= ============== LEGG MASON VALUE EQUITY SUB-ACCOUNT (CLASS B) 11/07/2005 to 12/31/2005 10.246771 10.621157 1,461.1723 01/01/2006 to 12/31/2006 10.621157 11.135542 97,913.2279 01/01/2007 to 12/31/2007 11.135542 10.305387 117,018.1167 ============ ==== ========== ========= ========= ============== LOOMIS SAYLES GLOBAL MARKETS SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988644 10.322142 37,091.0910 01/01/2007 to 12/31/2007 10.322142 12.980214 282,833.4404 ============ ==== ========== ========= ========= ==============
26 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.65% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------ LORD ABBETT BOND DEBENTURE SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 13.963875 13.951241 98,860.4297 01/01/2002 to 12/31/2002 13.951241 13.644245 1,433,749.7065 01/01/2003 to 12/31/2003 13.644245 15.992320 3,417,720.2748 01/01/2004 to 12/31/2004 15.992320 17.014558 2,491,874.8192 01/01/2005 to 12/31/2005 17.014558 16.986823 1,707,181.4409 01/01/2006 to 12/31/2006 16.986823 18.238141 1,511,266.0668 01/01/2007 to 12/31/2007 18.238141 19.113056 1,324,544.3157 ============ ==== ========== ========= ========= ============== LORD ABBETT GROWTH AND INCOME SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 39.123031 41.312239 154,864.3979 01/01/2002 to 12/31/2002 41.312239 33.272684 866,333.4857 01/01/2003 to 12/31/2003 33.272684 42.786777 1,850,654.0769 01/01/2004 to 12/31/2004 42.786777 47.407274 1,488,211.5584 01/01/2005 to 12/31/2005 47.407274 48.215337 1,165,322.0002 01/01/2006 to 12/31/2006 48.215337 55.863563 1,063,571.5275 01/01/2007 to 12/31/2007 55.863563 56.989263 965,351.2326 ============ ==== ========== ========= ========= ============== MET/AIM SMALL CAP GROWTH SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 11.845599 40,372.3824 01/01/2002 to 12/31/2002 11.845599 8.446962 722,370.5304 01/01/2003 to 12/31/2003 8.446962 11.538078 1,482,751.0855 01/01/2004 to 12/31/2004 11.538078 12.078766 1,685,925.2184 01/01/2005 to 12/31/2005 12.078766 12.863783 1,213,341.4530 01/01/2006 to 12/31/2006 12.863783 14.448465 1,125,427.8246 01/01/2007 to 12/31/2007 14.448465 15.784081 1,124,177.1115 ============ ==== ========== ========= ========= ============== MET/PUTNAM RESEARCH SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.137898 8.050186 207,533.2474 01/01/2002 to 12/31/2002 8.050186 6.270402 799,574.2621 01/01/2003 to 12/31/2003 6.270402 7.668982 1,192,672.1819 01/01/2004 to 11/19/2004 7.668982 7.860884 1,063,826.7850 ============ ==== ========== ========= ========= ============== MFS (Reg. TM) EMERGING MARKETS EQUITY SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988644 10.460946 75,004.0443 01/01/2007 to 12/31/2007 10.460946 14.056678 260,925.3834 ============ ==== ========== ========= ========= ==============
27 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.65% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- MFS (Reg. TM) RESEARCH INTERNATIONAL SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.805686 8.364799 129,003.6811 01/01/2002 to 12/31/2002 8.364799 7.256874 1,070,822.3007 01/01/2003 to 12/31/2003 7.256874 9.425479 1,546,831.2953 01/01/2004 to 12/31/2004 9.425479 11.084222 1,973,434.6670 01/01/2005 to 12/31/2005 11.084222 12.693933 1,519,906.5715 01/01/2006 to 12/31/2006 12.693933 15.803723 1,675,995.6328 01/01/2007 to 12/31/2007 15.803723 17.609666 1,967,696.5666 ============ ==== ========== ========= ========= ============== MONEY MARKET SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 10.032441 10.134478 219,948.2744 01/01/2002 to 12/31/2002 10.134478 10.077903 1,572,815.7956 01/01/2003 to 12/31/2003 10.077903 9.956033 1,516,693.5265 01/01/2004 to 12/31/2004 9.956033 9.855466 1,344,613.7000 01/01/2005 to 04/30/2005 9.855466 9.860317 0.0000 ============ ==== ========== ========= ========= ============== NEUBERGER BERMAN REAL ESTATE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998644 12.812153 568,357.1101 01/01/2005 to 12/31/2005 12.812153 14.277527 395,543.4809 01/01/2006 to 12/31/2006 14.277527 19.322711 453,956.1167 01/01/2007 to 12/31/2007 19.322711 16.152793 376,486.1366 ============ ==== ========== ========= ========= ============== OPPENHEIMER CAPITAL APPRECIATION SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.558733 8.450379 360,423.9784 01/01/2002 to 12/31/2002 8.450379 6.255898 2,701,558.8170 01/01/2003 to 12/31/2003 6.255898 7.909106 6,125,313.9186 01/01/2004 to 12/31/2004 7.909106 8.277517 5,627,959.2383 01/01/2005 to 12/31/2005 8.277517 8.526290 4,240,760.7630 01/01/2006 to 12/31/2006 8.526290 9.025889 3,917,052.0073 01/01/2007 to 12/31/2007 9.025889 10.145899 3,508,490.0296 ============ ==== ========== ========= ========= ============== PIMCO INFLATION PROTECTED BOND SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 10.000000 10.418489 2,657,135.0362 01/01/2004 to 12/31/2004 10.418489 11.170963 2,588,620.0762 01/01/2005 to 12/31/2005 11.170963 11.141080 1,815,134.7662 01/01/2006 to 12/31/2006 11.141080 11.001649 1,705,064.6921 01/01/2007 to 12/31/2007 11.001649 11.989080 1,606,330.6049 ============ ==== ========== ========= ========= ==============
28 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.65% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- PIMCO TOTAL RETURN SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 10.161771 10.515687 355,008.2887 01/01/2002 to 12/31/2002 10.515687 11.304919 3,428,408.9805 01/01/2003 to 12/31/2003 11.304919 11.598744 4,916,658.1773 01/01/2004 to 12/31/2004 11.598744 11.976661 3,713,382.2728 01/01/2005 to 12/31/2005 11.976661 12.045993 3,069,684.8285 01/01/2006 to 12/31/2006 12.045993 12.384722 3,004,460.8663 01/01/2007 to 12/31/2007 12.384722 13.102425 2,715,670.5623 ============ ==== ========== ========= ========= ============== RAINIER LARGE CAP EQUITY SUB-ACCOUNT (CLASS B) 11/12/2007 to 12/31/2007 9.564767 9.979690 23,404.9197 ============ ==== ========== ========= ========= ============== RCM TECHNOLOGY SUB-ACCOUNT (CLASS B) (FORMERLY RCM GLOBAL TECHNOLOGY SUB-ACCOUNT (CLASS B)) 03/21/2001 to 12/31/2001 7.234270 6.081488 99,431.4277 01/01/2002 to 12/31/2002 6.081488 2.947164 447,788.5981 01/01/2003 to 12/31/2003 2.947164 4.567923 1,190,199.1530 01/01/2004 to 12/31/2004 4.567923 4.299219 1,375,292.1160 01/01/2005 to 12/31/2005 4.299219 4.694924 1,041,016.5365 01/01/2006 to 12/31/2006 4.694924 4.865207 977,499.3370 01/01/2007 to 12/31/2007 4.865207 6.293680 952,541.5610 ============ ==== ========== ========= ========= ============== T. ROWE PRICE MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.099086 8.220557 269,557.5629 01/01/2002 to 12/31/2002 8.220557 4.525032 1,726,869.5986 01/01/2003 to 12/31/2003 4.525032 6.081870 4,006,200.0912 01/01/2004 to 12/31/2004 6.081870 7.048322 2,765,448.7425 01/01/2005 to 12/31/2005 7.048322 7.947436 2,381,258.1746 01/01/2006 to 12/31/2006 7.947436 8.299611 2,133,250.2131 01/01/2007 to 12/31/2007 8.299611 9.602874 2,015,602.4477 ============ ==== ========== ========= ========= ============== THIRD AVENUE SMALL CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2002 to 12/31/2002 10.000000 8.218733 605,519.3266 01/01/2003 to 12/31/2003 8.218733 11.433062 2,150,386.2473 01/01/2004 to 12/31/2004 11.433062 14.226210 2,040,391.3429 01/01/2005 to 12/31/2005 14.226210 16.160130 1,768,021.0904 01/01/2006 to 12/31/2006 16.160130 17.983664 1,676,491.5926 01/01/2007 to 12/31/2007 17.983664 17.153385 2,085,655.8497 ============ ==== ========== ========= ========= ============== TURNER MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998644 11.096411 440,580.9814 01/01/2005 to 12/31/2005 11.096411 12.155042 222,582.1272 01/01/2006 to 12/31/2006 12.155042 12.682656 224,564.1266 01/01/2007 to 12/31/2007 12.682656 15.486352 272,402.5802 ============ ==== ========== ========= ========= ==============
29 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.65% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------ VAN KAMPEN COMSTOCK SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 9.998644 10.458340 72,647.9975 01/01/2006 to 12/31/2006 10.458340 11.939126 135,900.9890 01/01/2007 to 12/31/2007 11.939126 11.450048 189,434.8309 ============ ==== ========== ========= ========= ============== METROPOLITAN SERIES FUND, INC. BLACKROCK MONEY MARKET SUB-ACCOUNT (CLASS B) (FORMERLY MONEY MARKET SUB-ACCOUNT (CLASS B)) 05/01/2005 to 12/31/2005 9.860101 9.947503 1,208,087.1075 01/01/2006 to 12/31/2006 9.947503 10.230491 1,331,507.1674 01/01/2007 to 12/31/2007 10.230491 10.546619 1,237,132.0960 ============ ==== ========== ========= ========= ============== DAVIS VENTURE VALUE SUB-ACCOUNT (CLASS E) 03/21/2001 to 12/31/2001 10.000000 10.136771 411,598.0340 01/01/2002 to 12/31/2002 10.136771 8.320551 2,576,279.4317 01/01/2003 to 12/31/2003 8.320551 10.699997 4,532,908.6121 01/01/2004 to 12/31/2004 10.699997 11.802287 4,850,017.5631 01/01/2005 to 12/31/2005 11.802287 12.786459 3,793,667.2169 01/01/2006 to 12/31/2006 12.786459 14.389697 3,562,636.9670 01/01/2007 to 12/31/2007 14.389697 14.780208 3,235,152.8647 ============ ==== ========== ========= ========= ============== HARRIS OAKMARK FOCUSED VALUE SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 10.000000 11.924478 285,336.2915 01/01/2002 to 12/31/2002 11.924478 10.665887 1,968,096.2417 01/01/2003 to 12/31/2003 10.665887 13.883167 3,688,778.9808 01/01/2004 to 12/31/2004 13.883167 14.973492 2,836,827.6471 01/01/2005 to 12/31/2005 14.973492 16.158995 2,279,554.3064 01/01/2006 to 12/31/2006 16.158995 17.830257 1,983,617.8488 01/01/2007 to 12/31/2007 17.830257 16.296121 1,757,054.9099 ============ ==== ========== ========= ========= ============== JENNISON GROWTH SUB-ACCOUNT (CLASS B) 05/01/2002 to 12/31/2002 10.000000 7.615315 1,073,693.6827 01/01/2003 to 12/31/2003 7.615315 9.714878 2,017,856.2237 01/01/2004 to 12/31/2004 9.714878 10.409513 1,755,936.0453 01/01/2005 to 12/31/2005 10.409513 11.625804 1,144,312.5058 01/01/2006 to 12/31/2006 11.625804 11.724679 1,109,070.1458 01/01/2007 to 12/31/2007 11.724679 12.845133 1,025,921.1868 ============ ==== ========== ========= ========= ==============
30 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.65% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------ METLIFE STOCK INDEX SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 10.843650 18,876.8867 01/01/2002 to 12/31/2002 10.843650 8.264381 872,377.2426 01/01/2003 to 12/31/2003 8.264381 10.395014 1,538,007.3438 01/01/2004 to 12/31/2004 10.395014 11.275442 1,808,666.3091 01/01/2005 to 12/31/2005 11.275442 11.576776 1,879,819.8668 01/01/2006 to 12/31/2006 11.576776 13.117210 1,674,556.1560 01/01/2007 to 12/31/2007 13.117210 13.543213 1,579,360.1615 ============ ==== ========== ========= ========= =============== WESTERN ASSET MANAGEMENT U.S. GOVERNMENT SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 15.393136 15.351902 13,607.1637 01/01/2006 to 12/31/2006 15.351902 15.692541 334,634.4450 01/01/2007 to 12/31/2007 15.692541 16.056909 557,507.2711 ============ ==== ========== ========= ========= =============== MET INVESTORS SERIES TRUST - ASSET ALLOCATION PROGRAM (CLASS B) METLIFE AGGRESSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.301164 10.687313 2,304,564.3300 01/01/2005 to 12/31/2005 10.687313 11.604154 3,797,155.8861 01/01/2006 to 12/31/2006 11.604154 12.972623 3,696,892.5187 01/01/2007 to 12/31/2007 12.972623 13.127531 3,376,137.0305 ============ ==== ========== ========= ========= =============== METLIFE BALANCED STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.101328 10.391330 9,244,968.6310 01/01/2005 to 12/31/2005 10.391330 10.949726 15,654,665.8225 01/01/2006 to 12/31/2006 10.949726 12.061156 15,970,090.4093 01/01/2007 to 12/31/2007 12.061156 12.441938 15,796,918.8197 ============ ==== ========== ========= ========= =============== METLIFE DEFENSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 9.941459 10.107486 544,182.6754 01/01/2005 to 12/31/2005 10.107486 10.387940 1,172,854.2321 01/01/2006 to 12/31/2006 10.387940 11.099798 1,155,380.4528 01/01/2007 to 12/31/2007 11.099798 11.563424 2,224,232.6638 ============ ==== ========== ========= ========= =============== METLIFE GROWTH STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.241214 10.602224 7,443,048.7610 01/01/2005 to 12/31/2005 10.602224 11.380836 13,124,730.2207 01/01/2006 to 12/31/2006 11.380836 12.717038 14,850,374.1630 01/01/2007 to 12/31/2007 12.717038 13.096001 15,110,937.6858 ============ ==== ========== ========= ========= =============== METLIFE MODERATE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.011402 10.227688 2,738,870.9120 01/01/2005 to 12/31/2005 10.227688 10.645573 4,949,049.8811 01/01/2006 to 12/31/2006 10.645573 11.543319 5,383,931.7361 01/01/2007 to 12/31/2007 11.543319 12.058129 5,756,684.0520 ============ ==== ========== ========= ========= ===============
31 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.75% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- MET INVESTORS SERIES TRUST GOLDMAN SACHS MID-CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998562 11.943726 765,505.5042 01/01/2005 to 12/31/2005 11.943726 13.208544 945,753.5764 01/01/2006 to 12/31/2006 13.208544 15.016817 1,186,087.0928 01/01/2007 to 12/31/2007 15.016817 15.211790 1,247,775.3144 ============ ==== ========== ========= ========= ============== HARRIS OAKMARK INTERNATIONAL SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 8.704299 11.664171 1,582,080.9990 01/01/2004 to 12/31/2004 11.664171 13.813691 2,499,190.8720 01/01/2005 to 12/31/2005 13.813691 15.507328 2,150,637.1787 01/01/2006 to 12/31/2006 15.507328 19.635353 2,631,951.7652 01/01/2007 to 12/31/2007 19.635353 19.077046 2,661,988.0151 ============ ==== ========== ========= ========= ============== LAZARD MID-CAP SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 9.676034 11.933125 969,677.0465 01/01/2004 to 12/31/2004 11.933125 13.414325 939,494.6966 01/01/2005 to 12/31/2005 13.414325 14.244599 812,668.8522 01/01/2006 to 12/31/2006 14.244599 16.052398 792,054.4037 01/01/2007 to 12/31/2007 16.052398 15.344915 852,082.9812 ============ ==== ========== ========= ========= ============== LEGG MASON PARTNERS AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B) (FORMERLY LEGG MASON AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B)) 05/01/2003 to 12/31/2003 5.472328 6.656250 2,189,655.8426 01/01/2004 to 12/31/2004 6.656250 7.092530 2,634,521.3969 01/01/2005 to 12/31/2005 7.092530 7.916077 1,451,202.3221 01/01/2006 to 12/31/2006 7.916077 7.643879 1,541,034.7726 01/01/2007 to 12/31/2007 7.643879 7.680812 1,431,667.2461 ============ ==== ========== ========= ========= ============== LEGG MASON VALUE EQUITY SUB-ACCOUNT (CLASS B) 11/07/2005 to 12/31/2005 10.246575 10.619411 17,170.5774 01/01/2006 to 12/31/2006 10.619411 11.122610 296,078.0348 01/01/2007 to 12/31/2007 11.122610 10.283068 381,548.3832 ============ ==== ========== ========= ========= ============== LOOMIS SAYLES GLOBAL MARKETS SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988562 10.315213 65,186.2876 01/01/2007 to 12/31/2007 10.315213 12.958474 467,262.5377 ============ ==== ========== ========= ========= ============== LORD ABBETT BOND DEBENTURE SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 14.607628 15.968273 2,217,899.1634 01/01/2004 to 12/31/2004 15.968273 16.971948 2,305,656.3497 01/01/2005 to 12/31/2005 16.971948 16.927392 1,537,124.4946 01/01/2006 to 12/31/2006 16.927392 18.156219 1,546,336.5949 01/01/2007 to 12/31/2007 18.156219 19.008084 1,523,473.4252 ============ ==== ========== ========= ========= ==============
32 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.75% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------- LORD ABBETT GROWTH AND INCOME SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 34.344447 42.722358 1,078,327.5527 01/01/2004 to 12/31/2004 42.722358 47.288467 1,278,395.0330 01/01/2005 to 12/31/2005 47.288467 48.046567 944,813.1184 01/01/2006 to 12/31/2006 48.046567 55.612548 1,006,501.2743 01/01/2007 to 12/31/2007 55.612548 56.676164 903,235.4541 ============ ==== ========== ========= ========= ============== MET/AIM SMALL CAP GROWTH SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 8.660245 11.512395 1,016,218.6566 01/01/2004 to 12/31/2004 11.512395 12.039797 1,852,928.5555 01/01/2005 to 12/31/2005 12.039797 12.809506 1,105,784.6984 01/01/2006 to 12/31/2006 12.809506 14.373156 1,107,678.6553 01/01/2007 to 12/31/2007 14.373156 15.686028 1,054,768.7555 ============ ==== ========== ========= ========= ============== MET/PUTNAM RESEARCH SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 6.386488 7.657424 517,765.8984 01/01/2004 to 11/19/2004 7.657424 7.842093 672,573.1924 ============ ==== ========== ========= ========= ============== MFS (Reg. TM) EMERGING MARKETS EQUITY SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988562 10.453918 150,669.8182 01/01/2007 to 12/31/2007 10.453918 14.033128 553,272.4136 ============ ==== ========== ========= ========= ============== MFS (Reg. TM) RESEARCH INTERNATIONAL SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 7.289616 9.411295 782,001.8856 01/01/2004 to 12/31/2004 9.411295 11.056455 1,884,428.7072 01/01/2005 to 12/31/2005 11.056455 12.649518 1,378,894.2445 01/01/2006 to 12/31/2006 12.649518 15.732735 1,689,045.0405 01/01/2007 to 12/31/2007 15.732735 17.512947 1,754,022.5344 ============ ==== ========== ========= ========= ============== MONEY MARKET SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 10.035084 9.941055 762,469.3722 01/01/2004 to 12/31/2004 9.941055 9.830775 705,063.1521 01/01/2005 to 04/30/2005 9.830775 9.832408 15,384.7195 ============ ==== ========== ========= ========= ============== NEUBERGER BERMAN REAL ESTATE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998562 12.803566 715,423.2729 01/01/2005 to 12/31/2005 12.803566 14.253740 515,191.5715 01/01/2006 to 12/31/2006 14.253740 19.271313 862,705.3728 01/01/2007 to 12/31/2007 19.271313 16.093623 623,725.2338 ============ ==== ========== ========= ========= ==============
33 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.75% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------- OPPENHEIMER CAPITAL APPRECIATION SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 6.505698 7.897196 4,020,523.3423 01/01/2004 to 12/31/2004 7.897196 8.256769 4,933,536.0487 01/01/2005 to 12/31/2005 8.256769 8.496442 3,325,789.3318 01/01/2006 to 12/31/2006 8.496442 8.985325 3,267,057.7938 01/01/2007 to 12/31/2007 8.985325 10.090152 3,069,690.3843 ============ ==== ========== ========= ========= ============== PIMCO INFLATION PROTECTED BOND SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 10.000000 10.411529 2,159,263.8369 01/01/2004 to 12/31/2004 10.411529 11.152314 3,469,965.1450 01/01/2005 to 12/31/2005 11.152314 11.111391 2,463,646.6739 01/01/2006 to 12/31/2006 11.111391 10.961391 2,220,380.5386 01/01/2007 to 12/31/2007 10.961391 11.933208 2,084,242.4959 ============ ==== ========== ========= ========= ============== PIMCO TOTAL RETURN SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 11.542328 11.581293 2,576,587.2669 01/01/2004 to 12/31/2004 11.581293 11.946656 2,682,203.9735 01/01/2005 to 12/31/2005 11.946656 12.003835 2,243,440.5285 01/01/2006 to 12/31/2006 12.003835 12.329076 2,475,380.0163 01/01/2007 to 12/31/2007 12.329076 13.030449 2,573,935.4892 ============ ==== ========== ========= ========= ============== RAINIER LARGE CAP EQUITY SUB-ACCOUNT (CLASS B) 11/12/2007 to 12/31/2007 9.564450 9.978019 57,408.4183 ============ ==== ========== ========= ========= ============== RCM TECHNOLOGY SUB-ACCOUNT (CLASS B) (FORMERLY RCM GLOBAL TECHNOLOGY SUB-ACCOUNT (CLASS B)) 05/01/2003 to 12/31/2003 3.285104 4.561046 751,484.2936 01/01/2004 to 12/31/2004 4.561046 4.288441 1,387,165.3470 01/01/2005 to 12/31/2005 4.288441 4.678488 881,423.9561 01/01/2006 to 12/31/2006 4.678488 4.843341 981,053.7874 01/01/2007 to 12/31/2007 4.843341 6.259103 1,281,841.0510 ============ ==== ========== ========= ========= ============== T. ROWE PRICE MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 4.729155 6.072712 2,709,467.8857 01/01/2004 to 12/31/2004 6.072712 7.030656 2,304,586.4158 01/01/2005 to 12/31/2005 7.030656 7.919619 2,509,867.3433 01/01/2006 to 12/31/2006 7.919619 8.262314 2,787,888.8492 01/01/2007 to 12/31/2007 8.262314 9.550114 2,838,873.7163 ============ ==== ========== ========= ========= ============== THIRD AVENUE SMALL CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 8.441884 11.414006 1,753,064.5796 01/01/2004 to 12/31/2004 11.414006 14.188273 2,329,772.3620 01/01/2005 to 12/31/2005 14.188273 16.100983 2,080,104.1971 01/01/2006 to 12/31/2006 16.100983 17.899981 2,201,821.2268 01/01/2007 to 12/31/2007 17.899981 17.056395 2,005,086.4356 ============ ==== ========== ========= ========= ==============
34 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.75% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- TURNER MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998562 11.088963 607,504.4692 01/01/2005 to 12/31/2005 11.088963 12.134782 384,671.9183 01/01/2006 to 12/31/2006 12.134782 12.648888 488,658.0219 01/01/2007 to 12/31/2007 12.648888 15.429601 608,232.2181 ============ ==== ========== ========= ========= ============== VAN KAMPEN COMSTOCK SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 9.998562 10.451325 404,253.5662 01/01/2006 to 12/31/2006 10.451325 11.919227 733,338.5778 01/01/2007 to 12/31/2007 11.919227 11.419472 696,720.6931 ============ ==== ========== ========= ========= ============== METROPOLITAN SERIES FUND, INC. BLACKROCK MONEY MARKET SUB-ACCOUNT (CLASS B) (FORMERLY MONEY MARKET SUB-ACCOUNT (CLASS B)) 05/01/2005 to 12/31/2005 9.832112 9.912691 1,636,855.6528 01/01/2006 to 12/31/2006 9.912691 10.184528 2,928,687.9304 01/01/2007 to 12/31/2007 10.184528 10.488684 3,209,808.7050 ============ ==== ========== ========= ========= ============== DAVIS VENTURE VALUE SUB-ACCOUNT (CLASS E) 05/01/2003 to 12/31/2003 8.504143 10.683910 2,758,052.1367 01/01/2004 to 12/31/2004 10.683910 11.772734 4,984,547.1735 01/01/2005 to 12/31/2005 11.772734 12.741735 3,808,951.1096 01/01/2006 to 12/31/2006 12.741735 14.325075 4,090,483.3841 01/01/2007 to 12/31/2007 14.325075 14.699041 4,003,015.4437 ============ ==== ========== ========= ========= ============== HARRIS OAKMARK FOCUSED VALUE SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 10.872809 13.862260 2,071,231.0065 01/01/2004 to 12/31/2004 13.862260 14.935957 2,326,417.7204 01/01/2005 to 12/31/2005 14.935957 16.102428 2,059,343.2150 01/01/2006 to 12/31/2006 16.102428 17.750131 1,938,746.9426 01/01/2007 to 12/31/2007 17.750131 16.206575 1,739,557.5778 ============ ==== ========== ========= ========= ============== JENNISON GROWTH SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 8.040998 9.698673 1,534,395.9590 01/01/2004 to 12/31/2004 9.698673 10.381735 2,143,440.0559 01/01/2005 to 12/31/2005 10.381735 11.583229 1,427,441.4251 01/01/2006 to 12/31/2006 11.583229 11.670094 1,638,152.1073 01/01/2007 to 12/31/2007 11.670094 12.772482 1,581,921.5609 ============ ==== ========== ========= ========= ==============
35 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.75% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------- METLIFE STOCK INDEX SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 8.580805 10.371889 800,039.6336 01/01/2004 to 12/31/2004 10.371889 11.239084 1,579,342.3803 01/01/2005 to 12/31/2005 11.239084 11.527947 1,708,923.5260 01/01/2006 to 12/31/2006 11.527947 13.048866 1,484,207.7008 01/01/2007 to 12/31/2007 13.048866 13.459109 1,324,928.4194 ============ ==== ========== ========= ========= =============== WESTERN ASSET MANAGEMENT U.S. GOVERNMENT SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 15.232212 15.181339 22,550.0470 01/01/2006 to 12/31/2006 15.181339 15.502724 86,787.6793 01/01/2007 to 12/31/2007 15.502724 15.846744 173,390.5817 ============ ==== ========== ========= ========= =============== MET INVESTORS SERIES TRUST - ASSET ALLOCATION PROGRAM (CLASS B) METLIFE AGGRESSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.300629 10.685617 2,213,209.3000 01/01/2005 to 12/31/2005 10.685617 11.590752 5,453,491.2845 01/01/2006 to 12/31/2006 11.590752 12.944726 7,434,056.8268 01/01/2007 to 12/31/2007 12.944726 13.086132 7,321,485.5993 ============ ==== ========== ========= ========= =============== METLIFE BALANCED STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.100803 10.389680 13,257,270.6000 01/01/2005 to 12/31/2005 10.389680 10.937077 30,155,136.3775 01/01/2006 to 12/31/2006 10.937077 12.035216 44,641,442.0347 01/01/2007 to 12/31/2007 12.035216 12.402700 57,251,497.9108 ============ ==== ========== ========= ========= =============== METLIFE DEFENSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 9.940942 10.105881 1,028,820.4850 01/01/2005 to 12/31/2005 10.105881 10.375938 3,083,958.7669 01/01/2006 to 12/31/2006 10.375938 11.075921 5,087,809.1993 01/01/2007 to 12/31/2007 11.075921 11.526954 8,010,536.6604 ============ ==== ========== ========= ========= =============== METLIFE GROWTH STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.240681 10.600541 10,403,515.5800 01/01/2005 to 12/31/2005 10.600541 11.367691 25,977,701.3949 01/01/2006 to 12/31/2006 11.367691 12.689689 45,893,148.8369 01/01/2007 to 12/31/2007 12.689689 13.054701 69,469,707.8460 ============ ==== ========== ========= ========= =============== METLIFE MODERATE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.010881 10.226064 4,046,698.7430 01/01/2005 to 12/31/2005 10.226064 10.633274 9,743,418.7961 01/01/2006 to 12/31/2006 10.633274 11.518490 14,282,137.9124 01/01/2007 to 12/31/2007 11.518490 12.020101 18,882,391.9704 ============ ==== ========== ========= ========= ===============
36 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.80% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- MET INVESTORS SERIES TRUST GOLDMAN SACHS MID-CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998521 11.939720 642,749.4681 01/01/2005 to 12/31/2005 11.939720 13.197536 755,942.8156 01/01/2006 to 12/31/2006 13.197536 14.996823 880,136.7237 01/01/2007 to 12/31/2007 14.996823 15.183900 884,393.1976 ============ ==== ========== ========= ========= ============== HARRIS OAKMARK INTERNATIONAL SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 10.925670 976.7295 01/01/2002 to 12/31/2002 10.925670 8.789245 140,210.7037 01/01/2003 to 12/31/2003 8.789245 11.651185 1,480,540.4357 01/01/2004 to 12/31/2004 11.651185 13.791399 2,141,878.0681 01/01/2005 to 12/31/2005 13.791399 15.474588 1,708,844.9828 01/01/2006 to 12/31/2006 15.474588 19.584134 1,778,510.3311 01/01/2007 to 12/31/2007 19.584134 19.017716 1,638,960.3342 ============ ==== ========== ========= ========= ============== LAZARD MID-CAP SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 10.981256 4,572.0767 01/01/2002 to 12/31/2002 10.981256 9.618604 293,855.6450 01/01/2003 to 12/31/2003 9.618604 11.919827 1,159,676.0099 01/01/2004 to 12/31/2004 11.919827 13.392661 960,651.1466 01/01/2005 to 12/31/2005 13.392661 14.214507 787,627.2410 01/01/2006 to 12/31/2006 14.214507 16.010503 624,114.6295 01/01/2007 to 12/31/2007 16.010503 15.297171 499,276.5476 ============ ==== ========== ========= ========= ============== LEGG MASON PARTNERS AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B) (FORMERLY LEGG MASON AGGRESSIVE GROWTH SUB-ACCOUNT (CLASS B)) 03/21/2001 to 12/31/2001 8.041634 7.285235 208,194.1462 01/01/2002 to 12/31/2002 7.285235 5.163465 835,615.5593 01/01/2003 to 12/31/2003 5.163465 6.638491 2,448,116.8208 01/01/2004 to 12/31/2004 6.638491 7.070062 2,574,044.8090 01/01/2005 to 12/31/2005 7.070062 7.887068 1,420,964.3860 01/01/2006 to 12/31/2006 7.887068 7.612069 1,339,272.4269 01/01/2007 to 12/31/2007 7.612069 7.645002 1,154,904.2918 ============ ==== ========== ========= ========= ============== LEGG MASON VALUE EQUITY SUB-ACCOUNT (CLASS B) 11/07/2005 to 12/31/2005 10.246477 10.618538 5,368.6632 01/01/2006 to 12/31/2006 10.618538 11.116150 197,254.1536 01/01/2007 to 12/31/2007 11.116150 10.271927 275,417.2282 ============ ==== ========== ========= ========= ============== LOOMIS SAYLES GLOBAL MARKETS SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988521 10.311750 133,934.5438 01/01/2007 to 12/31/2007 10.311750 12.947617 328,121.3529 ============ ==== ========== ========= ========= ==============
37 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.80% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- LORD ABBETT BOND DEBENTURE SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 13.963875 13.934910 151,439.8865 01/01/2002 to 12/31/2002 13.934910 13.607857 1,326,102.1495 01/01/2003 to 12/31/2003 13.607857 15.925780 3,507,953.9211 01/01/2004 to 12/31/2004 15.925780 16.918301 2,771,874.1357 01/01/2005 to 12/31/2005 16.918301 16.865474 1,846,433.2934 01/01/2006 to 12/31/2006 16.865474 18.080789 1,699,415.0615 01/01/2007 to 12/31/2007 18.080789 18.919602 1,401,255.6043 ============ ==== ========== ========= ========= ============== LORD ABBETT GROWTH AND INCOME SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 39.123031 41.263886 88,945.3931 01/01/2002 to 12/31/2002 41.263886 33.183838 534,288.0861 01/01/2003 to 12/31/2003 33.183838 42.608637 1,374,254.9266 01/01/2004 to 12/31/2004 42.608637 47.138957 1,417,141.8408 01/01/2005 to 12/31/2005 47.138957 47.870784 1,076,495.9235 01/01/2006 to 12/31/2006 47.870784 55.381470 954,509.0865 01/01/2007 to 12/31/2007 55.381470 56.412293 757,135.7169 ============ ==== ========== ========= ========= ============== MET/AIM SMALL CAP GROWTH SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 11.841568 4,288.5527 01/01/2002 to 12/31/2002 11.841568 8.431404 362,610.9895 01/01/2003 to 12/31/2003 8.431404 11.499598 984,920.2486 01/01/2004 to 12/31/2004 11.499598 12.020385 1,623,020.9578 01/01/2005 to 12/31/2005 12.020385 12.782480 1,176,064.6357 01/01/2006 to 12/31/2006 12.782480 14.335678 972,968.3298 01/01/2007 to 12/31/2007 14.335678 15.637262 827,319.8326 ============ ==== ========== ========= ========= ============== MET/PUTNAM RESEARCH SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.137898 8.040755 188,353.5820 01/01/2002 to 12/31/2002 8.040755 6.253646 555,618.7598 01/01/2003 to 12/31/2003 6.253646 7.637036 1,094,159.0554 01/01/2004 to 11/19/2004 7.637036 7.817754 993,305.6103 ============ ==== ========== ========= ========= ============== MFS (Reg. TM) EMERGING MARKETS EQUITY SUB-ACCOUNT (CLASS B) 05/01/2006 to 12/31/2006 9.988521 10.450406 72,747.7988 01/01/2007 to 12/31/2007 10.450406 14.021368 322,080.9114 ============ ==== ========== ========= ========= ==============
38 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.80% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- MFS (Reg. TM) RESEARCH INTERNATIONAL SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.805686 8.354994 127,244.6672 01/01/2002 to 12/31/2002 8.354994 7.237479 665,344.3014 01/01/2003 to 12/31/2003 7.237479 9.386204 1,209,618.3405 01/01/2004 to 12/31/2004 9.386204 11.021453 2,069,121.5884 01/01/2005 to 12/31/2005 11.021453 12.603190 1,522,889.8641 01/01/2006 to 12/31/2006 12.603190 15.667304 1,628,699.0663 01/01/2007 to 12/31/2007 15.667304 17.431346 1,500,469.4417 ============ ==== ========== ========= ========= ============== MONEY MARKET SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 10.032441 10.122623 258,104.6279 01/01/2002 to 12/31/2002 10.122623 10.051027 1,207,446.1109 01/01/2003 to 12/31/2003 10.051027 9.914594 1,452,290.1044 01/01/2004 to 12/31/2004 9.914594 9.799692 1,055,081.7100 01/01/2005 to 04/30/2005 9.799692 9.799722 0.0000 ============ ==== ========== ========= ========= ============== NEUBERGER BERMAN REAL ESTATE SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998521 12.799274 597,141.0429 01/01/2005 to 12/31/2005 12.799274 14.241861 448,104.2114 01/01/2006 to 12/31/2006 14.241861 19.245665 603,303.4149 01/01/2007 to 12/31/2007 19.245665 16.064120 447,914.0234 ============ ==== ========== ========= ========= ============== OPPENHEIMER CAPITAL APPRECIATION SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.558733 8.440489 263,517.2886 01/01/2002 to 12/31/2002 8.440489 6.239188 1,773,536.2393 01/01/2003 to 12/31/2003 6.239188 7.876171 4,817,764.5225 01/01/2004 to 12/31/2004 7.876171 8.230659 5,530,751.6105 01/01/2005 to 12/31/2005 8.230659 8.465353 3,883,884.1478 01/01/2006 to 12/31/2006 8.465353 8.947983 3,487,237.6422 01/01/2007 to 12/31/2007 8.947983 10.043168 2,885,506.3481 ============ ==== ========== ========= ========= ============== PIMCO INFLATION PROTECTED BOND SUB-ACCOUNT (CLASS B) 05/01/2003 to 12/31/2003 10.000000 10.408048 2,507,733.3149 01/01/2004 to 12/31/2004 10.408048 11.142998 3,061,984.3576 01/01/2005 to 12/31/2005 11.142998 11.096573 2,274,973.7393 01/01/2006 to 12/31/2006 11.096573 10.941314 2,055,042.1997 01/01/2007 to 12/31/2007 10.941314 11.905367 1,700,055.1886 ============ ==== ========== ========= ========= ==============
39 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.80% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- PIMCO TOTAL RETURN SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 10.161771 10.503380 283,097.4435 01/01/2002 to 12/31/2002 10.503380 11.274776 2,505,019.1930 01/01/2003 to 12/31/2003 11.274776 11.550473 4,240,212.2557 01/01/2004 to 12/31/2004 11.550473 11.908891 3,592,733.8360 01/01/2005 to 12/31/2005 11.908891 11.959923 3,021,342.6907 01/01/2006 to 12/31/2006 11.959923 12.277851 2,847,466.1932 01/01/2007 to 12/31/2007 12.277851 12.969788 2,498,091.8260 ============ ==== ========== ========= ========= ============== RAINIER LARGE CAP EQUITY SUB-ACCOUNT (CLASS B) 11/12/2007 to 12/31/2007 9.564292 9.977183 48,189.7344 ============ ==== ========== ========= ========= ============== RCM TECHNOLOGY SUB-ACCOUNT (CLASS B) (FORMERLY RCM GLOBAL TECHNOLOGY SUB-ACCOUNT (CLASS B)) 03/21/2001 to 12/31/2001 7.234270 6.074341 89,301.1669 01/01/2002 to 12/31/2002 6.074341 2.939266 505,062.4218 01/01/2003 to 12/31/2003 2.939266 4.548861 1,097,034.0651 01/01/2004 to 12/31/2004 4.548861 4.274839 1,658,801.2050 01/01/2005 to 12/31/2005 4.274839 4.661325 961,138.9494 01/01/2006 to 12/31/2006 4.661325 4.823166 908,692.4532 01/01/2007 to 12/31/2007 4.823166 6.229901 956,219.8608 ============ ==== ========== ========= ========= ============== T. ROWE PRICE MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 8.099086 8.210931 210,431.8435 01/01/2002 to 12/31/2002 8.210931 4.512937 1,031,443.2742 01/01/2003 to 12/31/2003 4.512937 6.056532 2,893,956.4329 01/01/2004 to 12/31/2004 6.056532 7.008410 2,048,930.8382 01/01/2005 to 12/31/2005 7.008410 7.890626 2,222,654.6618 01/01/2006 to 12/31/2006 7.890626 8.227961 2,043,114.2190 01/01/2007 to 12/31/2007 8.227961 9.505627 1,985,353.8466 ============ ==== ========== ========= ========= ============== THIRD AVENUE SMALL CAP VALUE SUB-ACCOUNT (CLASS B) 05/01/2002 to 12/31/2002 10.000000 8.210477 275,334.0815 01/01/2003 to 12/31/2003 8.210477 11.404493 1,782,235.4316 01/01/2004 to 12/31/2004 11.404493 14.169346 2,104,571.8357 01/01/2005 to 12/31/2005 14.169346 16.071495 1,840,652.9726 01/01/2006 to 12/31/2006 16.071495 17.858290 1,755,732.0486 01/01/2007 to 12/31/2007 17.858290 17.008110 1,443,724.3360 ============ ==== ========== ========= ========= ============== TURNER MID-CAP GROWTH SUB-ACCOUNT (CLASS B) 05/01/2004 to 12/31/2004 9.998521 11.085242 523,770.7046 01/01/2005 to 12/31/2005 11.085242 12.124664 304,613.1156 01/01/2006 to 12/31/2006 12.124664 12.632037 340,639.0078 01/01/2007 to 12/31/2007 12.632037 15.401303 350,783.1998 ============ ==== ========== ========= ========= ==============
40 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.80% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ----------------- VAN KAMPEN COMSTOCK SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 9.998521 10.447819 156,499.5392 01/01/2006 to 12/31/2006 10.447819 11.909290 338,153.6938 01/01/2007 to 12/31/2007 11.909290 11.404215 365,711.1651 ============ ==== ========== ========= ========= ============== METROPOLITAN SERIES FUND, INC. BLACKROCK MONEY MARKET SUB-ACCOUNT (CLASS B) (FORMERLY MONEY MARKET SUB-ACCOUNT (CLASS B)) 05/01/2005 to 12/31/2005 9.799387 9.876423 836,908.6974 01/01/2006 to 12/31/2006 9.876423 10.142207 1,380,988.0751 01/01/2007 to 12/31/2007 10.142207 10.439850 1,528,198.8217 ============ ==== ========== ========= ========= ============== DAVIS VENTURE VALUE SUB-ACCOUNT (CLASS E) 03/21/2001 to 12/31/2001 10.000000 10.124913 348,124.3820 01/01/2002 to 12/31/2002 10.124913 8.298345 1,897,436.7263 01/01/2003 to 12/31/2003 8.298345 10.655482 4,063,318.9486 01/01/2004 to 12/31/2004 10.655482 11.735525 5,616,092.4340 01/01/2005 to 12/31/2005 11.735525 12.695134 4,489,657.5895 01/01/2006 to 12/31/2006 12.695134 14.265570 4,233,485.5363 01/01/2007 to 12/31/2007 14.265570 14.630624 3,661,355.2511 ============ ==== ========== ========= ========= ============== HARRIS OAKMARK FOCUSED VALUE SUB-ACCOUNT (CLASS B) 03/21/2001 to 12/31/2001 10.000000 11.910526 252,316.2501 01/01/2002 to 12/31/2002 11.910526 10.637413 1,266,772.6327 01/01/2003 to 12/31/2003 10.637413 13.825385 2,883,328.2301 01/01/2004 to 12/31/2004 13.825385 14.888758 2,775,140.5731 01/01/2005 to 12/31/2005 14.888758 16.043544 2,228,217.0660 01/01/2006 to 12/31/2006 16.043544 17.676407 1,978,532.4121 01/01/2007 to 12/31/2007 17.676407 16.131145 1,598,488.4887 ============ ==== ========== ========= ========= ============== JENNISON GROWTH SUB-ACCOUNT (CLASS B) 05/01/2002 to 12/31/2002 10.000000 7.607663 603,710.2354 01/01/2003 to 12/31/2003 7.607663 9.690594 1,724,473.5507 01/01/2004 to 12/31/2004 9.690594 10.367887 2,142,412.1792 01/01/2005 to 12/31/2005 10.367887 11.562016 1,560,795.8047 01/01/2006 to 12/31/2006 11.562016 11.642913 1,547,216.5941 01/01/2007 to 12/31/2007 11.642913 12.736327 1,370,855.8448 ============ ==== ========== ========= ========= ==============
41 CONDENSED FINANCIAL INFORMATION (CONTINUED)
1.80% SEPARATE ACCOUNT PRODUCT CHARGES NUMBER OF ACCUMULATION ACCUMULATION ACCUMULATION UNIT VALUE AT UNIT VALUE AT UNITS BEGINNING OF END OF OUTSTANDING AT PERIOD PERIOD END OF PERIOD --------------- --------------- ------------------ METLIFE STOCK INDEX SUB-ACCOUNT (CLASS B) 10/09/2001 to 12/31/2001 10.000000 10.839954 6,382.0246 01/01/2002 to 12/31/2002 10.839954 8.249162 677,031.6286 01/01/2003 to 12/31/2003 8.249162 10.360344 1,312,372.0999 01/01/2004 to 12/31/2004 10.360344 11.220948 1,562,037.4490 01/01/2005 to 12/31/2005 11.220948 11.503609 1,519,249.0129 01/01/2006 to 12/31/2006 11.503609 13.014826 1,318,334.2929 01/01/2007 to 12/31/2007 13.014826 13.417251 1,047,513.7250 ============ ==== ========== ========= ========= =============== WESTERN ASSET MANAGEMENT U.S. GOVERNMENT SUB-ACCOUNT (CLASS B) 05/01/2005 to 12/31/2005 15.152382 15.096769 14,731.7289 01/01/2006 to 12/31/2006 15.096769 15.408678 39,328.2866 01/01/2007 to 12/31/2007 15.408678 15.742695 84,109.8648 ============ ==== ========== ========= ========= =============== MET INVESTORS SERIES TRUST - ASSET ALLOCATION PROGRAM (CLASS B) METLIFE AGGRESSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.300361 10.684769 1,487,877.4590 01/01/2005 to 12/31/2005 10.684769 11.584057 3,909,384.7415 01/01/2006 to 12/31/2006 11.584057 12.930800 3,940,889.4579 01/01/2007 to 12/31/2007 12.930800 13.065482 3,265,679.1542 ============ ==== ========== ========= ========= =============== METLIFE BALANCED STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.100540 10.388855 8,421,041.7640 01/01/2005 to 12/31/2005 10.388855 10.930758 20,949,578.4864 01/01/2006 to 12/31/2006 10.930758 12.022266 27,286,538.8309 01/01/2007 to 12/31/2007 12.022266 12.383127 33,870,556.6607 ============ ==== ========== ========= ========= =============== METLIFE DEFENSIVE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 9.940683 10.105078 1,595,158.4110 01/01/2005 to 12/31/2005 10.105078 10.369941 2,443,244.2844 01/01/2006 to 12/31/2006 10.369941 11.064002 2,898,156.1817 01/01/2007 to 12/31/2007 11.064002 11.508762 3,757,749.2514 ============ ==== ========== ========= ========= =============== METLIFE GROWTH STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.240415 10.599700 7,829,502.2490 01/01/2005 to 12/31/2005 10.599700 11.361125 19,917,570.3516 01/01/2006 to 12/31/2006 11.361125 12.676036 29,901,569.1855 01/01/2007 to 12/31/2007 12.676036 13.034100 44,918,849.8659 ============ ==== ========== ========= ========= =============== METLIFE MODERATE STRATEGY SUB-ACCOUNT (CLASS B) 11/22/2004 to 12/31/2004 10.010620 10.225252 4,072,519.8390 01/01/2005 to 12/31/2005 10.225252 10.627130 9,201,916.9296 01/01/2006 to 12/31/2006 10.627130 11.506096 11,247,462.2064 01/01/2007 to 12/31/2007 11.506096 12.001131 13,659,352.2150 ============ ==== ========== ========= ========= ===============
42 FINANCIAL STATEMENTS The financial statements of the Separate Account and the Company are included herein. The financial statements of the Company should be considered only as bearing upon the ability of the Company to meet its obligations under the contract. 43 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Contract Owners of MetLife Investors USA Separate Account A and the Board of Directors of MetLife Investors USA Insurance Company: We have audited the accompanying statements of assets and liabilities of MetLife Investors USA Separate Account A (the "Separate Account") of MetLife Investors USA Insurance Company (the "Company") comprising each of the individual Sub-Accounts listed in Appendix A as of December 31, 2007, and the related statements of operations for the periods presented in the year then ended, and the statements of changes in net assets for each of the periods presented in the two years then ended. We have also audited the statements of operations for the periods presented in the year ended December 31, 2007, and the statements of changes in net assets for each of the periods presented in the two years then ended for each of the individual Sub-Accounts listed in Appendix B. These financial statements are the responsibility of the Separate Account's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Separate Account is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Separate Account's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2007, by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the Sub-Accounts constituting the Separate Account of the Company as of December 31, 2007, the results of their operations for each of the periods presented in the year then ended, and the changes in their net assets for each of the periods presented in the two years then ended, in conformity with accounting principles generally accepted in the United States of America. /s/ DELOITTE & TOUCHE LLP Certified Public Accountants Tampa, FL March 24, 2008 APPENDIX - A MIST Lord Abbett Growth and Income Sub-Account MIST Lord Abbett Bond Debenture Sub-Account MIST Van Kampen Mid-Cap Growth Sub-Account MIST Lord Abbett Mid-Cap Value Sub-Account MIST Lazard Mid-Cap Sub-Account MIST Met/AIM Small-Cap Growth Sub-Account MIST Harris Oakmark International Sub-Account MIST Third Avenue Small-Cap Value Sub-Account MIST Oppenheimer Capital Appreciation Sub-Account MIST Legg Mason Partners Aggressive Growth Sub-Account MIST PIMCO Total Return Sub-Account MIST RCM Technology Sub-Account MIST PIMCO Inflation Protected Bond Sub-Account MIST T. Rowe Price Mid-Cap Growth Sub-Account MIST MFS Research International Sub-Account MIST Neuberger Berman Real Estate Sub-Account MIST Turner Mid-Cap Growth Sub-Account MIST Goldman Sachs Mid-Cap Value Sub-Account MIST MetLife Defensive Strategy Sub-Account MIST MetLife Moderate Strategy Sub-Account MIST MetLife Balanced Strategy Sub-Account MIST MetLife Growth Strategy Sub-Account MIST MetLife Aggressive Strategy Sub-Account MIST Van Kampen Comstock Sub-Account MIST Legg Mason Value Equity Sub-Account MIST MFS Emerging Markets Equity Sub-Account MIST Loomis Sayles Global Markets Sub-Account MIST Met/AIM Capital Appreciation Sub-Account MIST Janus Forty Sub-Account MIST MFS Value Sub-Account MIST Dreman Small Cap Value Sub-Account MIST Pioneer Fund Sub-Account MIST Pioneer Strategic Income Sub-Account MIST BlackRock Large-Cap Core Sub-Account MIST BlackRock High Yield Sub-Account MIST Rainier Large Cap Equity Sub-Account AIM V.I. Core Equity Sub-Account AIM V.I. Capital Appreciation Sub-Account AIM V.I. International Growth Sub-Account AIM V.I. Basic Balanced Sub-Account AIM V.I. Global Real Estate Sub-Account MFS Research Sub-Account MFS Investors Trust Sub-Account MFS New Discovery Sub-Account Oppenheimer Main Street Fund/VA Sub-Account Oppenheimer Bond Sub-Account Oppenheimer Strategic Bond Sub-Account Oppenheimer Main Street Small Cap Sub-Account Oppenheimer Money Sub-Account Fidelity VIP Asset Manager Sub-Account Fidelity VIP Growth Sub-Account Fidelity VIP Contrafund Sub-Account Fidelity VIP Overseas Sub-Account Fidelity VIP Equity-Income Sub-Account Fidelity VIP Index 500 Sub-Account Fidelity VIP Money Market Sub-Account Fidelity VIP Mid-Cap Sub-Account DWS International Sub-Account MSF FI Mid-Cap Opportunities Sub-Account MSF FI Large Cap Sub-Account MSF FI Value Leaders Sub-Account MSF Russell 2000 Index Sub-Account MSF FI International Stock Sub-Account MSF MetLife Stock Index Sub-Account MSF BlackRock Legacy Large-Cap Growth Sub-Account MSF BlackRock Strategic Value Sub-Account MSF BlackRock Bond Income Sub-Account MSF BlackRock Large-Cap Value Sub-Account MSF Lehman Brothers Aggregate Bond Index Sub-Account MSF Harris Oakmark Large-Cap Value Sub-Account MSF Morgan Stanley EAFE Index Sub-Account MSF MFS Total Return Sub-Account MSF MetLife Mid-Cap Stock Index Sub-Account MSF Davis Venture Value Sub-Account MSF Harris Oakmark Focused Value Sub-Account MSF Jennison Growth Sub-Account MSF BlackRock Money Market Sub-Account MSF T. Rowe Price Small-Cap Growth Sub-Account MSF Western Asset Management U.S. Government Sub-Account MSF Oppenheimer Global Equity Sub-Account MSF MetLife Aggressive Allocation Sub-Account MSF MetLife Conservative Allocation Sub-Account MSF MetLife Conservative to Moderate Allocation Sub-Account MSF MetLife Moderate Allocation Sub-Account MSF MetLife Moderate to Aggressive Allocation Sub-Account Van Kampen LIT Strategic Growth Sub-Account Van Kampen LIT Enterprise Sub-Account Van Kampen LIT Growth and Income Sub-Account Van Kampen LIT Comstock Sub-Account Federated Equity Income Sub-Account Federated High Income Bond Sub-Account Federated Mid-Cap Growth Strategy Sub-Account Neuberger Genesis Sub-Account Alger American Small Capitalization Sub-Account T. Rowe Price Growth Sub-Account T. Rowe Price International Sub-Account T. Rowe Price Prime Reserve Sub-Account Janus Aspen Worldwide Growth Sub-Account American Funds Global Small Capitalization Sub-Account American Funds Growth Sub-Account American Funds Growth-Income Sub-Account American Funds Global Growth Sub-Account American Funds Bond Sub-Account AllianceBernstein Large Cap Growth Sub-Account FTVIPT Franklin Templeton Developing Markets Sub-Account FTVIPT Franklin Mutual Shares Securities Sub-Account FTVIPT Franklin Templeton Foreign Securities Sub-Account FTVIPT Franklin Templeton Growth Securities Sub-Account FTVIPT Franklin Income Securities Sub-Account FTVIPT Franklin Templeton Global Income Securities Sub-Account FTVIPT Franklin Templeton Small Cap Value Securities Sub-Account Van Kampen UIF Equity and Income Sub-Account Van Kampen UIF U.S. Real Estate Sub-Account Van Kampen UIF U.S. Mid Cap Value Sub-Account Pioneer VCT Mid-Cap Value Sub-Account LMPVET Small Cap Growth Sub-Account LMPVET Investors Sub-Account LMPVET Equity Index Sub-Account LMPVET Fundamental Value Sub-Account LMPVET Appreciation Sub-Account LMPVET Aggressive Growth Sub-Account LMPVET Large Cap Growth Sub-Account LMPVET Social Awareness Sub-Account LMPVET Capital and Income Sub-Account LMPVET Capital Sub-Account LMPVET Global Equity Sub-Account LMPVET Dividend Strategy Sub-Account LMPVET Lifestyle Allocation 50% Sub-Account LMPVET Lifestyle Allocation 70% Sub-Account LMPVET Lifestyle Allocation 85% Sub-Account LMPVIT Adjustable Rate Income Sub-Account LMPVIT Global High Yield Bond Sub-Account LMPVIT Money Market Sub-Account APPENDIX - B MIST Met/Putnam Capital Opportunities Sub-Account MIST Pioneer Mid-Cap Value Sub-Account LMPV Capital and Income Sub-Account LMPV Large Cap Value Sub-Account LMPVET Multiple Discipline Sub-Account-Large Cap Growth and Value LMPV Premier Selections All Cap Growth Sub-Account LMPV Growth and Income Sub-Account [THIS PAGE INTENTIONALLY LEFT BLANK] 1 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 2007
MIST LORD ABBETT MIST LORD ABBETT MIST VAN KAMPEN MIST LORD ABBETT GROWTH AND INCOME BOND DEBENTURE MID-CAP GROWTH MID-CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------- ---------------- ---------------- ---------------- ASSETS: Investments at fair value..... $ 822,332,641 $ 288,949,168 $ 23,676,827 $ 16,075,642 Other receivables............. -- -- -- -- Due from MetLife Investors USA Insurance Company........... -- -- -- -- ---------------- ---------------- ---------------- ---------------- Total Assets.............. 822,332,641 288,949,168 23,676,827 16,075,642 ---------------- ---------------- ---------------- ---------------- LIABILITIES: Other payables................ -- -- -- -- Due to MetLife Investors USA Insurance Company........... 332 554 742 573 ---------------- ---------------- ---------------- ---------------- Total Liabilities......... 332 554 742 573 ---------------- ---------------- ---------------- ---------------- NET ASSETS..................... $ 822,332,309 $ 288,948,614 $ 23,676,085 $ 16,075,069 ================ ================ ================ ================ Units outstanding............. 18,116,672 15,162,946 1,845,571 609,565 Unit value (accumulation)..... $30.63-$100.12 $6.68-$20.98 $12.30-$13.50 $25.04-$27.45
(^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 2
MIST LEGG MASON MIST LAZARD MIST MET/AIM MIST HARRIS OAKMARK MIST THIRD AVENUE MIST OPPENHEIMER PARTNERS AGGRESSIVE MID-CAP SMALL-CAP GROWTH INTERNATIONAL SMALL-CAP VALUE CAPITAL APPRECIATION GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ------------------- ----------------- -------------------- ------------------- $ 121,255,612 $ 181,045,574 $ 384,273,817 $ 316,501,941 $ 354,883,324 $ 104,187,108 -- -- -- -- -- -- -- -- -- -- -- -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 121,255,612 181,045,574 384,273,817 316,501,941 354,883,324 104,187,108 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- -- -- -- 320 1,057 242 539 715 287 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 320 1,057 242 539 715 287 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 121,255,292 $ 181,044,517 $ 384,273,575 $ 316,501,402 $ 354,882,609 $ 104,186,821 ================ ================ ================ ================ ================ ================ 7,858,992 11,452,863 20,013,713 18,432,805 34,634,000 13,488,538 $14.83-$15.78 $15.20-$16.74 $18.49-$19.62 $16.58-$18.13 $9.77-$12.90 $7.44-$7.91
The accompanying notes are an integral part of these financial statements. 3 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
MIST PIMCO MIST PIMCO MIST RCM INFLATION PROTECTED MIST T. ROWE PRICE TOTAL RETURN TECHNOLOGY BOND MID-CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ------------------- ------------------ ASSETS: Investments at fair value..... $ 469,985,773 $ 78,046,440 $ 255,623,602 $ 242,044,028 Other receivables............. -- -- -- -- Due from MetLife Investors USA Insurance Company........... -- -- -- -- ---------------- ---------------- ---------------- ---------------- Total Assets.............. 469,985,773 78,046,440 255,623,602 242,044,028 ---------------- ---------------- ---------------- ---------------- LIABILITIES: Other payables................ -- -- -- -- Due to MetLife Investors USA Insurance Company........... 413 445 438 298 ---------------- ---------------- ---------------- ---------------- Total Liabilities......... 413 445 438 298 ---------------- ---------------- ---------------- ---------------- NET ASSETS..................... $ 469,985,360 $ 78,045,995 $ 255,623,164 $ 242,043,730 ================ ================ ================ ================ Units outstanding............. 37,539,072 12,386,524 21,340,808 25,165,985 Unit value (accumulation)..... $9.10-$14.05 $6.06-$6.72 $11.60-$12.19 $9.25-$9.83
(^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 4
MIST MFS RESEARCH MIST NEUBERGER MIST TURNER MIST GOLDMAN SACHS MIST METLIFE MIST METLIFE INTERNATIONAL BERMAN REAL ESTATE MID-CAP GROWTH MID-CAP VALUE DEFENSIVE STRATEGY MODERATE STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------- ------------------ ---------------- ------------------ ------------------ ----------------- $ 345,569,565 $ 100,668,568 $ 69,239,927 $ 140,074,062 $ 600,410,520 $ 1,602,068,482 -- -- -- -- -- -- -- -- -- -- -- -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 345,569,565 100,668,568 69,239,927 140,074,062 600,410,520 1,602,068,482 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- -- -- -- 593 474 337 343 195 258 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 593 474 337 343 195 258 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 345,568,972 $ 100,668,094 $ 69,239,590 $ 140,073,719 $ 600,410,325 $ 1,602,068,224 ================ ================ ================ ================ ================ ================ 19,606,367 6,238,930 4,472,333 9,178,387 51,959,475 132,930,004 $16.84-$18.48 $15.74-$16.36 $15.09-$15.69 $14.88-$15.47 $11.31-$11.75 $11.79-$12.25
The accompanying notes are an integral part of these financial statements. 5 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
MIST METLIFE MIST METLIFE MIST METLIFE MIST VAN KAMPEN BALANCED STRATEGY GROWTH STRATEGY AGGRESSIVE STRATEGY COMSTOCK SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------- ---------------- ------------------- ---------------- ASSETS: Investments at fair value..... $ 5,073,218,859 $ 6,304,660,694 $ 607,024,073 $ 60,994,174 Other receivables............. -- -- -- -- Due from MetLife Investors USA Insurance Company........... -- -- -- -- ---------------- ---------------- ---------------- ---------------- Total Assets.............. 5,073,218,859 6,304,660,694 607,024,073 60,994,174 ---------------- ---------------- ---------------- ---------------- LIABILITIES: Other payables................ -- -- -- -- Due to MetLife Investors USA Insurance Company........... 208 233 158 479 ---------------- ---------------- ---------------- ---------------- Total Liabilities......... 208 233 158 479 ---------------- ---------------- ---------------- ---------------- NET ASSETS..................... $ 5,073,218,651 $ 6,304,660,461 $ 607,023,915 $ 60,993,695 ================ ================ ================ ================ Units outstanding............. 407,763,369 481,475,567 46,258,233 5,330,717 Unit value (accumulation)..... $12.17-$12.64 $12.81-$13.30 $12.84-$13.34 $11.24-$11.56
(^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 6
MIST LEGG MASON MIST MFS EMERGING MIST LOOMIS SAYLES MIST MET/AIM VALUE EQUITY MARKETS EQUITY GLOBAL MARKETS CAPITAL APPRECIATION MIST JANUS FORTY MIST MFS VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ----------------- ------------------ -------------------- ---------------- ---------------- $ 57,823,376 $ 62,076,003 $ 55,474,619 $ 2,334,656 $ 8,715,620 $ 19,329,049 -- -- -- -- -- -- -- -- -- -- -- -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 57,823,376 62,076,003 55,474,619 2,334,656 8,715,620 19,329,049 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- -- -- -- 573 756 397 629 529 444 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 573 756 397 629 529 444 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 57,822,803 $ 62,075,247 $ 55,474,222 $ 2,334,027 $ 8,715,091 $ 19,328,605 ================ ================ ================ ================ ================ ================ 5,608,172 4,415,597 4,274,323 146,406 62,044 1,161,519 $10.15-$10.46 $13.89-$14.22 $12.83-$13.06 $14.96-$16.91 $124.70-$149.97 $15.79-$17.03
The accompanying notes are an integral part of these financial statements. 7 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
MIST DREMAN MIST PIONEER MIST BLACKROCK SMALL CAP VALUE MIST PIONEER FUND STRATEGIC INCOME LARGE-CAP CORE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ----------------- ---------------- ---------------- ASSETS: Investments at fair value..... $ 11,511,490 $ 8,680,647 $ 98,174,689 $ 4,467,719 Other receivables............. -- -- -- -- Due from MetLife Investors USA Insurance Company........... -- -- -- -- ---------------- ---------------- ---------------- ---------------- Total Assets.............. 11,511,490 8,680,647 98,174,689 4,467,719 ---------------- ---------------- ---------------- ---------------- LIABILITIES: Other payables................ -- -- -- -- Due to MetLife Investors USA Insurance Company........... 436 888 276 503 ---------------- ---------------- ---------------- ---------------- Total Liabilities......... 436 888 276 503 ---------------- ---------------- ---------------- ---------------- NET ASSETS..................... $ 11,511,054 $ 8,679,759 $ 98,174,413 $ 4,467,216 ================ ================ ================ ================ Units outstanding............. 865,483 441,310 4,979,963 390,444 Unit value (accumulation)..... $13.13-$13.40 $17.99-$21.26 $18.89-$21.05 $10.96-$11.80
(^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 8
MIST BLACKROCK HIGH MIST RAINIER LARGE AIM V.I. AIM V.I. AIM V.I. AIM V.I. YIELD CAP EQUITY CORE EQUITY CAPITAL APPRECIATION INTERNATIONAL GROWTH BASIC BALANCED SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------ ---------------- -------------------- -------------------- ---------------- $ 7,452,384 $ 6,390,642 $ 859,148 $ 433,497 $ 11,957,904 $ 673,828 -- -- -- -- -- -- -- -- -- -- -- -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 7,452,384 6,390,642 859,148 433,497 11,957,904 673,828 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- -- -- -- 204 550 30 10 3,847 15 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 204 550 30 10 3,847 15 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 7,452,180 $ 6,390,092 $ 859,118 $ 433,487 $ 11,954,057 $ 673,813 ================ ================ ================ ================ ================ ================ 450,432 640,297 181,999 77,611 445,944 125,704 $15.68-$16.78 $9.97-$9.99 $4.72 $5.59 $8.54-$31.74 $5.36
The accompanying notes are an integral part of these financial statements. 9 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
AIM V.I. GLOBAL REAL ESTATE MFS RESEARCH MFS INVESTORS TRUST MFS NEW DISCOVERY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------ ---------------- ------------------- ----------------- ASSETS: Investments at fair value..... $ 1,511,128 $ 199,356 $ 132,137 $ 99,392 Other receivables............. -- -- -- -- Due from MetLife Investors USA Insurance Company........... -- -- -- -- ---------------- ---------------- ---------------- ---------------- Total Assets.............. 1,511,128 199,356 132,137 99,392 ---------------- ---------------- ---------------- ---------------- LIABILITIES: Other payables................ -- -- -- -- Due to MetLife Investors USA Insurance Company........... 444 39 15 38 ---------------- ---------------- ---------------- ---------------- Total Liabilities......... 444 39 15 38 ---------------- ---------------- ---------------- ---------------- NET ASSETS..................... $ 1,510,684 $ 199,317 $ 132,122 $ 99,354 ================ ================ ================ ================ Units outstanding............. 156,912 34,862 23,909 13,583 Unit value (accumulation)..... $9.58-$ 9.67 $5.72 $5.53 $7.31
(^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 10
OPPENHEIMER MAIN OPPENHEIMER OPPENHEIMER MAIN FIDELITY VIP STREET FUND/VA OPPENHEIMER BOND STRATEGIC BOND STREET SMALL CAP OPPENHEIMER MONEY ASSET MANAGER SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ---------------- ---------------- ----------------- ---------------- $ 254,460 $ 264,529 $ 46,614 $ 8,314,544 $ 168,182 $ 143,069,973 -- -- -- -- 170 -- -- -- -- -- -- -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 254,460 264,529 46,614 8,314,544 168,352 143,069,973 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- -- -- -- -- -- -- 358 -- 32 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- 358 -- 32 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 254,460 $ 264,529 $ 46,614 $ 8,314,186 $ 168,352 $ 143,069,941 ================ ================ ================ ================ ================ ================ 45,428 37,290 5,661 492,857 28,881 11,728,296 $5.60 $7.09 $8.23 $10.26-$17.46 $5.83 $12.10-$12.42
The accompanying notes are an integral part of these financial statements. 11 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP GROWTH CONTRAFUND OVERSEAS EQUITY-INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ---------------- ---------------- ASSETS: Investments at fair value..... $ 239,237,664 $ 377,397,475 $ 11,327,760 $ 13,694,030 Other receivables............. -- -- -- -- Due from MetLife Investors USA Insurance Company........... -- -- -- -- ---------------- ---------------- ---------------- ---------------- Total Assets.............. 239,237,664 377,397,475 11,327,760 13,694,030 ---------------- ---------------- ---------------- ---------------- LIABILITIES: Other payables................ -- -- -- -- Due to MetLife Investors USA Insurance Company........... 49 478 26 -- ---------------- ---------------- ---------------- ---------------- Total Liabilities......... 49 478 26 -- ---------------- ---------------- ---------------- ---------------- NET ASSETS..................... $ 239,237,615 $ 377,396,997 $ 11,327,734 $ 13,694,030 ================ ================ ================ ================ Units outstanding............. 14,370,091 16,613,759 826,076 942,455 Unit value (accumulation)..... $16.58-$16.86 $12.51-$50.32 $12.67-$14.58 $14.53
(^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 12
FIDELITY VIP FIDELITY VIP FIDELITY VIP DWS MSF FI MID-CAP MSF FI INDEX 500 MONEY MARKET MID-CAP INTERNATIONAL OPPORTUNITIES LARGE CAP SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 122,812,743 $ 38,182,736 $ 40,496,541 $ 39,213,025 $ 6,518,948 $ 4,767,832 -- -- -- -- -- -- -- -- -- -- -- -- ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- 122,812,743 38,182,736 40,496,541 39,213,025 6,518,948 4,767,832 ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- -- -- -- 38 79 225 -- 30 467 ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- 38 79 225 -- 30 467 ----------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 122,812,705 $ 38,182,657 $ 40,496,316 $ 39,213,025 $ 6,518,918 $ 4,767,365 ================= ================ ================ ================ ================ ================ 7,211,573 5,148,515 997,653 3,119,351 574,272 275,445 $17.03-$17.44 $7.35-$7.86 $39.38-$42.90 $12.50-$12.57 $2.76-$23.91 $16.41-$17.97
The accompanying notes are an integral part of these financial statements. 13 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
MSF FI MSF RUSSELL MSF FI MSF METLIFE VALUE LEADERS 2000 INDEX INTERNATIONAL STOCK STOCK INDEX SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ------------------- ---------------- ASSETS: Investments at fair value..... $ 4,543,167 $ 8,015,881 $ 6,422,193 $ 299,990,263 Other receivables............. -- -- -- -- Due from MetLife Investors USA Insurance Company........... -- -- -- -- ---------------- ---------------- ---------------- ---------------- Total Assets.............. 4,543,167 8,015,881 6,422,193 299,990,263 ---------------- ---------------- ---------------- ---------------- LIABILITIES: Other payables................ -- -- -- -- Due to MetLife Investors USA Insurance Company........... 406 49 122 424 ---------------- ---------------- ---------------- ---------------- Total Liabilities......... 406 49 122 424 ---------------- ---------------- ---------------- ---------------- NET ASSETS..................... $ 4,542,761 $ 8,015,832 $ 6,422,071 $ 299,989,839 ================ ================ ================ ================ Units outstanding............. 211,868 481,904 398,333 17,885,006 Unit value (accumulation)..... $20.17-$22.08 $6.97-$19.23 $6.06-$20.94 $13.05-$51.54
(^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 14
MSF BLACKROCK LEGACY LARGE- MSF BLACKROCK MSF BLACKROCK MSF BLACKROCK MSF LEHMAN BROTHERS MSF HARRIS OAKMARK CAP GROWTH STRATEGIC VALUE BOND INCOME LARGE-CAP VALUE AGGREGATE BOND INDEX LARGE-CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ---------------- ---------------- -------------------- ------------------ $ 1,046,662 $ 12,924,711 $ 30,160,762 $ 3,754,506 $ 6,246,057 $ 6,305,535 -- -- -- -- -- -- -- -- -- -- -- -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 1,046,662 12,924,711 30,160,762 3,754,506 6,246,057 6,305,535 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- -- -- -- 59 53 649 55 49 71 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 59 53 649 55 49 71 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 1,046,603 $ 12,924,658 $ 30,160,113 $ 3,754,451 $ 6,246,008 $ 6,305,464 ================ ================ ================ ================ ================ ================ 31,453 625,394 654,278 251,656 436,992 439,738 $33.18-$35.25 $20.66-$21.39 $39.89-$58.33 $14.92-$15.31 $14.29-$14.90 $14.33-$14.95
The accompanying notes are an integral part of these financial statements. 15 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
MSF MORGAN STANLEY MSF MFS MSF METLIFE MSF DAVIS EAFE INDEX TOTAL RETURN MID-CAP STOCK INDEX VENTURE VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------ ---------------- ------------------- ---------------- ASSETS: Investments at fair value..... $ 18,684,696 $ 50,198,785 $ 15,036,445 $ 599,873,653 Other receivables............. -- -- -- -- Due from MetLife Investors USA Insurance Company........... -- -- -- -- ---------------- ---------------- ---------------- ---------------- Total Assets.............. 18,684,696 50,198,785 15,036,445 599,873,653 ---------------- ---------------- ---------------- ---------------- LIABILITIES: Other payables................ -- -- -- -- Due to MetLife Investors USA Insurance Company........... 75 453 22 359 ---------------- ---------------- ---------------- ---------------- Total Liabilities......... 75 453 22 359 ---------------- ---------------- ---------------- ---------------- NET ASSETS..................... $ 18,684,621 $ 50,198,332 $ 15,036,423 $ 599,873,294 ================ ================ ================ ================ Units outstanding............. 1,079,041 1,100,140 886,564 39,936,774 Unit value (accumulation)..... $17.30-$18.05 $38.88-$54.24 $16.94-$17.54 $14.23-$42.70
(^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 16
MSF WESTERN ASSET MSF HARRIS OAKMARK MSF JENNISON MSF BLACKROCK MSF T. ROWE PRICE MANAGEMENT MSF OPPENHEIMER FOCUSED VALUE GROWTH MONEY MARKET SMALL-CAP GROWTH U.S. GOVERNMENT GLOBAL EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------ ---------------- ---------------- ----------------- ----------------- ---------------- $ 316,048,405 $ 182,244,720 $ 241,601,618 $ 1,279,339 $ 44,642,933 $ 9,987,518 -- -- -- -- -- -- -- -- -- -- -- -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 316,048,405 182,244,720 241,601,618 1,279,339 44,642,933 9,987,518 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- -- -- -- 333 299 435 49 998 484 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 333 299 435 49 998 484 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 316,048,072 $ 182,244,421 $ 241,601,183 $ 1,279,290 $ 44,641,935 $ 9,987,034 ================ ================ ================ ================ ================ ================ 18,551,932 14,275,390 22,951,175 77,656 2,760,203 501,067 $15.69-$40.39 $2.70-$13.10 $10.16-$25.09 $16.25-$18.44 $14.93-$17.61 $19.16-$21.24
The accompanying notes are an integral part of these financial statements. 17 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
MSF METLIFE MSF METLIFE MSF METLIFE AGGRESSIVE CONSERVATIVE CONSERVATIVE TO MSF METLIFE ALLOCATION ALLOCATION MODERATE ALLOCATION MODERATE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ------------------- ------------------- ASSETS: Investments at fair value..... $ 2,403,722 $ 2,703,131 $ 4,530,147 $ 40,157,294 Other receivables............. -- -- -- -- Due from MetLife Investors USA Insurance Company........... -- -- -- -- ---------------- ---------------- ---------------- ---------------- Total Assets.............. 2,403,722 2,703,131 4,530,147 40,157,294 ---------------- ---------------- ---------------- ---------------- LIABILITIES: Other payables................ -- -- -- -- Due to MetLife Investors USA Insurance Company........... 247 282 355 180 ---------------- ---------------- ---------------- ---------------- Total Liabilities......... 247 282 355 180 ---------------- ---------------- ---------------- ---------------- NET ASSETS..................... $ 2,403,475 $ 2,702,849 $ 4,529,792 $ 40,157,114 ================ ================ ================ ================ Units outstanding............. 189,794 242,633 392,909 3,351,654 Unit value (accumulation)..... $12.50-$12.74 $11.07-$11.20 $11.42-$11.59 $11.81-$12.04
(^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 18
MSF METLIFE MODERATE TO VAN KAMPEN LIT VAN KAMPEN LIT VAN KAMPEN LIT VAN KAMPEN LIT FEDERATED AGGRESSIVE ALLOCATION STRATEGIC GROWTH ENTERPRISE GROWTH AND INCOME COMSTOCK EQUITY INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------- ---------------- ---------------- ----------------- ---------------- ---------------- $ 61,541,420 $ 9,156,416 $ 122,997 $ 49,067,568 $ 77,265,128 $ 31,210 -- -- -- -- -- -- -- -- -- -- -- -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 61,541,420 9,156,416 122,997 49,067,568 77,265,128 31,210 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- -- -- -- 234 385 -- 364 194 37 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 234 385 -- 364 194 37 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 61,541,186 $ 9,156,031 $ 122,997 $ 49,067,204 $ 77,264,934 $ 31,173 ================ ================ ================ ================ ================ ================ 5,047,763 1,659,770 28,313 3,069,791 5,188,036 5,473 $12.02-$12.25 $5.28-$5.59 $4.34 $7.27-$27.31 $14.46-$16.01 $5.70
The accompanying notes are an integral part of these financial statements. 19 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
FEDERATED FEDERATED MID-CAP ALGER AMERICAN HIGH INCOME BOND GROWTH STRATEGY NEUBERGER GENESIS SMALL CAPITALIZATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ----------------- ----------------- -------------------- ASSETS: Investments at fair value..... $ 126,869 $ 139,853 $ 14,032 $ 79,134,670 Other receivables............. -- -- -- -- Due from MetLife Investors USA Insurance Company........... -- -- -- -- ---------------- ---------------- ---------------- ---------------- Total Assets.............. 126,869 139,853 14,032 79,134,670 ---------------- ---------------- ---------------- ---------------- LIABILITIES: Other payables................ -- -- -- -- Due to MetLife Investors USA Insurance Company........... 34 -- 10 -- ---------------- ---------------- ---------------- ---------------- Total Liabilities......... 34 -- 10 -- ---------------- ---------------- ---------------- ---------------- NET ASSETS..................... $ 126,835 $ 139,853 $ 14,022 $ 79,134,670 ================ ================ ================ ================ Units outstanding............. 18,999 20,874 927 7,147,895 Unit value (accumulation)..... $6.68 $6.70 $15.13 $11.01-$11.13
(^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 20
AMERICAN FUNDS T. ROWE PRICE T. ROWE PRICE T. ROWE PRICE JANUS ASPEN GLOBAL SMALL AMERICAN FUNDS GROWTH INTERNATIONAL PRIME RESERVE WORLDWIDE GROWTH CAPITALIZATION GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 10,486,221 $ 1,365,106 $ 1,750,411 $ 9,939 $ 35,036,892 $ 245,763,422 -- -- -- -- -- -- -- -- -- -- -- -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 10,486,221 1,365,106 1,750,411 9,939 35,036,892 245,763,422 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- -- -- -- -- -- -- 7 442 503 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- 7 442 503 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 10,486,221 $ 1,365,106 $ 1,750,411 $ 9,932 $ 35,036,450 $ 245,762,919 ================ ================ ================ ================ ================ ================ 118,255 87,971 96,955 1,182 985,561 1,458,315 $88.67 $15.52 $18.05 $8.40 $34.16-$37.13 $142.42-$199.51
The accompanying notes are an integral part of these financial statements. 21 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS ALLIANCEBERNSTEIN GROWTH-INCOME GLOBAL GROWTH BOND LARGE CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ---------------- ----------------- ASSETS: Investments at fair value..... $ 156,224,564 $ 104,848,489 $ 6,640,160 $ 1,081,428 Other receivables............. -- -- -- -- Due from MetLife Investors USA Insurance Company........... -- -- -- -- ---------------- ---------------- ---------------- ---------------- Total Assets.............. 156,224,564 104,848,489 6,640,160 1,081,428 ---------------- ---------------- ---------------- ---------------- LIABILITIES: Other payables................ -- -- -- -- Due to MetLife Investors USA Insurance Company........... 495 608 219 192 ---------------- ---------------- ---------------- ---------------- Total Liabilities......... 495 608 219 192 ---------------- ---------------- ---------------- ---------------- NET ASSETS..................... $ 156,224,069 $ 104,847,881 $ 6,639,941 $ 1,081,236 ================ ================ ================ ================ Units outstanding............. 1,369,874 3,676,314 413,860 29,088 Unit value (accumulation)..... $96.80-$135.60 $26.64-$30.77 $15.27-$16.64 $35.49-$37.77
(^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 22
FTVIPT FRANKLIN FTVIPT FRANKLIN FTVIPT FRANKLIN FTVIPT FRANKLIN TEMPLETON FTVIPT FRANKLIN TEMPLETON TEMPLETON GROWTH FTVIPT FRANKLIN TEMPLETON GLOBAL DEVELOPING MARKETS MUTUAL SHARES SECURITIES FOREIGN SECURITIES SECURITIES INCOME SECURITIES INCOME SECURITIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------ ------------------------ ------------------ ---------------- ----------------- ----------------- $ 26,039,534 $ 71,392,933 $ 56,499,161 $ 38,096,710 $ 88,519,611 $ 4,081,268 -- -- -- -- -- -- -- -- -- -- -- -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 26,039,534 71,392,933 56,499,161 38,096,710 88,519,611 4,081,268 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- -- -- -- 472 205 429 345 393 397 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 472 205 429 345 393 397 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 26,039,062 $ 71,392,728 $ 56,498,732 $ 38,096,365 $ 88,519,218 $ 4,080,871 ================ ================ ================ ================ ================ ================ 1,494,843 3,006,411 1,778,828 2,063,301 1,974,360 318,925 $15.37-$25.43 $22.90-$25.46 $15.73-$36.77 $13.72-$19.85 $39.38-$50.37 $12.27-$13.18
The accompanying notes are an integral part of these financial statements. 23 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
FTVIPT FRANKLIN TEMPLETON SMALL CAP VAN KAMPEN UIF VAN KAMPEN UIF VAN KAMPEN UIF VALUE SECURITIES EQUITY AND INCOME U.S. REAL ESTATE U.S. MID CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ----------------- ---------------- ------------------ ASSETS: Investments at fair value..... $ 2,208,895 $ 166,104,960 $ 52,908,845 $ 2,834,230 Other receivables............. -- -- -- -- Due from MetLife Investors USA Insurance Company........... -- -- -- -- ---------------- ---------------- ---------------- ---------------- Total Assets.............. 2,208,895 166,104,960 52,908,845 2,834,230 ---------------- ---------------- ---------------- ---------------- LIABILITIES: Other payables................ -- -- -- -- Due to MetLife Investors USA Insurance Company........... 408 162 320 561 ---------------- ---------------- ---------------- ---------------- Total Liabilities......... 408 162 320 561 ---------------- ---------------- ---------------- ---------------- NET ASSETS..................... $ 2,208,487 $ 166,104,798 $ 52,908,525 $ 2,833,669 ================ ================ ================ ================ Units outstanding............. 251,664 10,934,412 2,043,530 257,428 Unit value (accumulation)..... $8.75-$8.79 $14.95-$15.63 $24.02-$49.19 $10.95-$11.05
(^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 24
PIONEER VCT LMPVET LMPVET LMPVET LMPVET LMPVET MID-CAP VALUE SMALL CAP GROWTH INVESTORS EQUITY INDEX FUNDAMENTAL VALUE APPRECIATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ---------------- ---------------- ----------------- ---------------- $ 26,729,064 $ 10,905,220 $ 4,699,616 $ 66,117,661 $ 84,463,843 $ 83,498,410 -- -- -- -- -- -- -- -- -- -- -- -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 26,729,064 10,905,220 4,699,616 66,117,661 84,463,843 83,498,410 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- -- -- -- 280 862 451 380 536 948 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 280 862 451 380 536 948 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 26,728,784 $ 10,904,358 $ 4,699,165 $ 66,117,281 $ 84,463,307 $ 83,497,462 ================ ================ ================ ================ ================ ================ 813,072 754,675 279,645 2,276,152 2,440,021 2,591,844 $31.43-$35.50 $13.77-$17.53 $15.98-$17.30 $9.89-$29.42 $31.33-$37.72 $15.95-$36.42
The accompanying notes are an integral part of these financial statements. 25 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2007
LMPVET LMPVET LMPVET LMPVET AGGRESSIVE GROWTH LARGE CAP GROWTH SOCIAL AWARENESS CAPITAL AND INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (^) ----------------- ---------------- ---------------- ------------------ ASSETS: Investments at fair value..... $ 127,960,287 $ 9,921,366 $ 566,069 $ 59,959,388 Other receivables............. -- -- -- 33,110 Due from MetLife Investors USA Insurance Company........... -- -- -- -- ---------------- ---------------- ---------------- ---------------- Total Assets.............. 127,960,287 9,921,366 566,069 59,992,498 ---------------- ---------------- ---------------- ---------------- LIABILITIES: Other payables................ -- -- -- -- Due to MetLife Investors USA Insurance Company........... 626 354 104 34,911 ---------------- ---------------- ---------------- ---------------- Total Liabilities......... 626 354 104 34,911 ---------------- ---------------- ---------------- ---------------- NET ASSETS..................... $ 127,959,661 $ 9,921,012 $ 565,965 $ 59,957,587 ================ ================ ================ ================ Units outstanding............. 9,406,900 699,543 19,022 4,737,273 Unit value (accumulation)..... $13.02-$15.26 $13.49-$14.58 $28.57-$30.42 $12.15-$15.28
(^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 26
LMPVET LMPVET LMPVET LMPVET LIFESTYLE LMPVET LIFESTYLE LMPVET LIFESTYLE CAPITAL GLOBAL EQUITY DIVIDEND STRATEGY ALLOCATION 50% ALLOCATION 70% ALLOCATION 85% SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ----------------- ---------------- ---------------- ---------------- $ 8,964,370 $ 7,705,540 $ 8,243,937 $ 9,409,401 $ 3,668,999 $ 16,581,916 -- -- -- -- -- -- -- -- -- -- -- -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 8,964,370 7,705,540 8,243,937 9,409,401 3,668,999 16,581,916 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- -- -- -- -- 581 217 408 146 49 189 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 581 217 408 146 49 189 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 8,963,789 $ 7,705,323 $ 8,243,529 $ 9,409,255 $ 3,668,950 $ 16,581,727 ================ ================ ================ ================ ================ ================ 542,230 417,802 834,706 590,437 250,067 1,057,927 $16.11-$16.80 $18.13-$18.61 $9.41-$10.05 $15.45-$16.14 $14.23-$14.86 $14.80-$16.41
The accompanying notes are an integral part of these financial statements. 27 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF ASSETS AND LIABILITIES -- (CONCLUDED) DECEMBER 31, 2007
LMPVIT ADJUSTABLE LMPVIT GLOBAL LMPVIT RATE INCOME HIGH YIELD BOND MONEY MARKET SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------- ---------------- ----------------- ASSETS: Investments at fair value....................... $ 3,179,105 $ 40,739,127 $ 44,647,967 Other receivables............................... -- -- -- Due from MetLife Investors USA Insurance Company -- -- -- ---------------- ---------------- ----------------- Total Assets................................ 3,179,105 40,739,127 44,647,967 ---------------- ---------------- ----------------- LIABILITIES: Other payables.................................. -- -- -- Due to MetLife Investors USA Insurance Company.. 205 643 454 ---------------- ---------------- ----------------- Total Liabilities........................... 205 643 454 ---------------- ---------------- ----------------- NET ASSETS....................................... $ 3,178,900 $ 40,738,484 $ 44,647,513 ================ ================ ================= Units outstanding............................... 310,564 2,527,054 3,326,218 Unit value (accumulation)....................... $10.02-$10.28 $15.11-$16.97 $12.23-$14.61
(^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 28 [THIS PAGE INTENTIONALLY LEFT BLANK] 29 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2007
MIST LORD ABBETT MIST LORD ABBETT MIST VAN KAMPEN MIST LORD ABBETT GROWTH AND INCOME BOND DEBENTURE MID-CAP GROWTH MID-CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------- ---------------- ---------------- ---------------- INVESTMENT INCOME: Dividends................................. $ 8,282,056 $ 16,026,920 $ -- $ 83,405 ---------------- ---------------- ---------------- ---------------- EXPENSES: Mortality and expense risk charges........ 11,655,545 4,270,178 183,009 218,752 Administrative charges.................... 1,855,249 751,351 30,150 34,985 ---------------- ---------------- ---------------- ---------------- Total expenses.......................... 13,510,794 5,021,529 213,159 253,737 ---------------- ---------------- ---------------- ---------------- Net investment income (loss).............. (5,228,738) 11,005,391 (213,159) (170,332) ---------------- ---------------- ---------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions............... 39,903,692 386,216 688,223 1,758,485 Realized gains (losses) on sale of investments............................. 27,069,493 971,053 (10,999) (186,016) ---------------- ---------------- ---------------- ---------------- Net realized gains (losses)........... 66,973,185 1,357,269 677,224 1,572,469 ---------------- ---------------- ---------------- ---------------- Change in unrealized gains (losses) on investments.......................... (41,085,573) 1,748,154 1,346,860 (1,981,561) ---------------- ---------------- ---------------- ---------------- Net realized and unrealized gains (losses) on investments............. 25,887,612 3,105,423 2,024,084 (409,092) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............... $ 20,658,874 $ 14,110,814 $ 1,810,925 $ (579,424) ================ ================ ================ ================
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 30
MIST MIST MIST LAZARD MIST MET/AIM HARRIS OAKMARK MIST THIRD AVENUE MIST OPPENHEIMER LEGG MASON PARTNERS MID-CAP SMALL-CAP GROWTH INTERNATIONAL SMALL-CAP VALUE CAPITAL APPRECIATION AGGRESSIVE GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ---------------- ----------------- -------------------- ------------------- $ 465,955 $ -- $ 3,410,659 $ 3,579,298 $ 21,048 $ -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 1,926,905 2,610,196 6,017,074 5,051,865 5,044,179 1,598,478 341,394 467,944 1,071,173 892,895 896,532 282,317 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 2,268,299 3,078,140 7,088,247 5,944,760 5,940,711 1,880,795 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (1,802,344) (3,078,140) (3,677,588) (2,365,462) (5,919,663) (1,880,795) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 11,621,738 2,656,713 34,202,898 24,211,821 22,634,965 10,582,249 5,372,232 8,836,601 24,125,372 21,959,557 6,917,205 1,716,309 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 16,993,970 11,493,314 58,328,270 46,171,378 29,552,170 12,298,558 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (22,036,063) 7,260,878 (66,126,162) (58,768,816) 18,087,115 (9,545,677) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (5,042,093) 18,754,192 (7,797,892) (12,597,438) 47,639,285 2,752,881 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ (6,844,437) $ 15,676,052 $ (11,475,480) $ (14,962,900) $ 41,719,622 $ 872,086 ================ ================ ================ ================ ================ ================
The accompanying notes are an integral part of these financial statements. 31 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
MIST PIMCO MIST PIMCO TOTAL MIST RCM INFLATION PROTECTED MIST T. ROWE PRICE RETURN TECHNOLOGY BOND MID-CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ------------------- ------------------ INVESTMENT INCOME: Dividends............................. $ 14,890,134 $ -- $ 5,293,982 $ 2,374 ---------------- ---------------- ---------------- ---------------- EXPENSES: Mortality and expense risk charges.... 6,240,683 786,219 3,520,948 3,318,008 Administrative charges................ 1,066,612 138,177 619,355 597,617 ---------------- ---------------- ---------------- ---------------- Total expenses...................... 7,307,295 924,396 4,140,303 3,915,625 ---------------- ---------------- ---------------- ---------------- Net investment income (loss).......... 7,582,839 (924,396) 1,153,679 (3,913,251) ---------------- ---------------- ---------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... -- 1,939,730 -- 10,849,263 Realized gains (losses) on sale of investments......................... 1,865,721 3,298,371 (630,364) 19,060,764 ---------------- ---------------- ---------------- ---------------- Net realized gains (losses)....... 1,865,721 5,238,101 (630,364) 29,910,027 ---------------- ---------------- ---------------- ---------------- Change in unrealized gains (losses) on investments...................... 16,489,342 9,989,409 20,764,489 7,709,385 ---------------- ---------------- ---------------- ---------------- Net realized and unrealized gains (losses) on investments............. 18,355,063 15,227,510 20,134,125 37,619,412 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........... $ 25,937,902 $ 14,303,114 $ 21,287,804 $ 33,706,161 ================ ================ ================ ================
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 32
MIST MFS MIST RESEARCH NEUBERGER BERMAN MIST TURNER MIST GOLDMAN SACHS MIST METLIFE MIST METLIFE INTERNATIONAL REAL ESTATE MID-CAP GROWTH MID-CAP VALUE DEFENSIVE STRATEGY MODERATE STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ---------------- ------------------ ------------------ ----------------- $ 3,890,447 $ 1,262,045 $ -- $ 728,280 $ 9,390,169 $ 27,375,996 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 4,487,943 1,860,802 779,285 2,114,718 7,064,874 20,285,810 786,524 326,254 137,601 373,857 1,247,073 3,570,910 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 5,274,467 2,187,056 916,886 2,488,575 8,311,947 23,856,720 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (1,384,020) (925,011) (916,886) (1,760,295) 1,078,222 3,519,276 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 43,855,896 12,204,483 1,731,771 13,206,075 10,535,484 35,251,154 9,563,061 13,959,463 3,539,335 6,851,474 15,023,889 8,277,428 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 53,418,957 26,163,946 5,271,106 20,057,549 25,559,373 43,528,582 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (18,855,679) (48,097,283) 6,353,919 (17,017,038) (5,702,644) 9,710,951 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 34,563,278 (21,933,337) 11,625,025 3,040,511 19,856,729 53,239,533 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 33,179,258 $ (22,858,348) $ 10,708,139 $ 1,280,216 $ 20,934,951 $ 56,758,809 ================ ================ ================ ================ ================ ================
The accompanying notes are an integral part of these financial statements. 33 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
MIST METLIFE MIST METLIFE MIST METLIFE MIST VAN KAMPEN BALANCED STRATEGY GROWTH STRATEGY AGGRESSIVE STRATEGY COMSTOCK SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------- ---------------- ------------------- ---------------- INVESTMENT INCOME: Dividends............................. $ 74,855,694 $ 58,368,752 $ 8,296,064 $ 798,554 ---------------- ---------------- ---------------- ---------------- EXPENSES: Mortality and expense risk charges.... 64,611,025 74,974,663 9,167,411 853,079 Administrative charges................ 11,485,493 13,320,877 1,617,464 150,308 ---------------- ---------------- ---------------- ---------------- Total expenses...................... 76,096,518 88,295,540 10,784,875 1,003,387 ---------------- ---------------- ---------------- ---------------- Net investment income (loss).......... (1,240,824) (29,926,788) (2,488,811) (204,833) ---------------- ---------------- ---------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... 138,412,622 165,181,441 39,419,094 1,203,267 Realized gains (losses) on sale of investments......................... 8,159,506 2,930,142 16,728,069 1,400,677 ---------------- ---------------- ---------------- ---------------- Net realized gains (losses)....... 146,572,128 168,111,583 56,147,163 2,603,944 ---------------- ---------------- ---------------- ---------------- Change in unrealized gains (losses) on investments...................... (28,996,861) (39,049,469) (45,549,415) (5,459,293) ---------------- ---------------- ---------------- ---------------- Net realized and unrealized gains (losses) on investments............. 117,575,267 129,062,114 10,597,748 (2,855,349) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........... $ 116,334,443 $ 99,135,326 $ 8,108,937 $ (3,060,182) ================ ================ ================ ================
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 34
MIST MFS MIST LEGG MASON MIST MET/PUTNAM EMERGING MARKETS MIST LOOMIS SAYLES MIST MET/AIM VALUE EQUITY CAPITAL OPPORTUNITIES EQUITY GLOBAL MARKETS CAPITAL APPRECIATION MIST JANUS FORTY SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- --------------------- ---------------- ------------------ -------------------- ---------------- $ 1,467 $ 544 $ 11,557 $ -- $ 1,205 $ 2,910 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 704,610 2,087 383,580 274,216 21,486 52,689 122,076 385 67,771 47,961 3,948 8,455 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 826,686 2,472 451,351 322,177 25,434 61,144 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (825,219) (1,928) (439,794) (322,177) (24,229) (58,234) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 49,476 41,667 -- -- 3,309 279,776 299,645 15,985 1,483,800 699,708 (15,080) 10,775 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 349,121 57,652 1,483,800 699,708 (11,771) 290,551 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (4,218,334) (9,944) 6,322,422 4,061,051 153,974 745,181 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (3,869,213) 47,708 7,806,222 4,760,759 142,203 1,035,732 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ (4,694,432) $ 45,780 $ 7,366,428 $ 4,438,582 $ 117,974 $ 977,498 ================ ================ ================ ================ ================ ================
The accompanying notes are an integral part of these financial statements. 35 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
MIST DREMAN MIST PIONEER MIST MFS VALUE SMALL CAP VALUE MIST PIONEER FUND MID-CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (A) ---------------- ---------------- ----------------- ---------------- INVESTMENT INCOME: Dividends............................. $ 62 $ -- $ 51,180 $ 22,205 ---------------- ---------------- ---------------- ---------------- EXPENSES: Mortality and expense risk charges.... 191,995 131,573 95,706 24,532 Administrative charges................ 32,402 21,126 16,604 3,944 ---------------- ---------------- ---------------- ---------------- Total expenses...................... 224,397 152,699 112,310 28,476 ---------------- ---------------- ---------------- ---------------- Net investment income (loss).......... (224,335) (152,699) (61,130) (6,271) ---------------- ---------------- ---------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... 187,800 33,486 -- 790,968 Realized gains (losses) on sale of investments......................... 44,784 78,301 41,030 (60,215) ---------------- ---------------- ---------------- ---------------- Net realized gains (losses)....... 232,584 111,787 41,030 730,753 ---------------- ---------------- ---------------- ---------------- Change in unrealized gains (losses) on investments...................... 416,511 (482,953) 90,072 (223,664) ---------------- ---------------- ---------------- ---------------- Net realized and unrealized gains (losses) on investments............. 649,095 (371,166) 131,102 507,089 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........... $ 424,760 $ (523,865) $ 69,972 $ 500,818 ================ ================ ================ ================
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 36
MIST PIONEER MIST BLACKROCK MIST BLACKROCK MIST RAINIER LARGE AIM V.I. AIM V.I. STRATEGIC INCOME LARGE-CAP CORE HIGH YIELD CAP EQUITY CORE EQUITY CAPITAL APPRECIATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (B) SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ---------------- ------------------ ---------------- -------------------- $ 376,788 $ 22,574 $ 426,744 $ 4,193 $ 10,322 $ -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 909,884 55,708 79,668 6,073 13,251 7,347 168,046 8,889 12,593 1,055 1,461 812 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 1,077,930 64,597 92,261 7,128 14,712 8,159 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (701,142) (42,023) 334,483 (2,935) (4,390) (8,159) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- 196,664 -- -- -- -- 6,106 68,726 (5,218) 1,427 52,971 18,910 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 6,106 265,390 (5,218) 1,427 52,971 18,910 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 4,115,896 (95,545) (351,001) 80,318 22,869 46,579 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 4,122,002 169,845 (356,219) 81,745 75,840 65,489 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 3,420,860 $ 127,822 $ (21,736) $ 78,810 $ 71,450 $ 57,330 ================ ================ ================ ================ ================ ================
The accompanying notes are an integral part of these financial statements. 37 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
AIM V.I. AIM V.I. AIM V.I. INTERNATIONAL GROWTH BASIC BALANCED GLOBAL REAL ESTATE MFS RESEARCH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (C) SUB-ACCOUNT -------------------- ---------------- ------------------ ---------------- INVESTMENT INCOME: Dividends............................. $ 39,474 $ 23,585 $ 86,240 $ 1,746 ---------------- ---------------- ---------------- ---------------- EXPENSES: Mortality and expense risk charges.... 38,710 11,056 4,937 3,168 Administrative charges................ 7,860 1,223 1,101 349 ---------------- ---------------- ---------------- ---------------- Total expenses...................... 46,570 12,279 6,038 3,517 ---------------- ---------------- ---------------- ---------------- Net investment income (loss).......... (7,096) 11,306 80,202 (1,771) ---------------- ---------------- ---------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... -- -- 206,446 -- Realized gains (losses) on sale of investments......................... 166,260 22,846 (1,175) 13,554 ---------------- ---------------- ---------------- ---------------- Net realized gains (losses)....... 166,260 22,846 205,271 13,554 ---------------- ---------------- ---------------- ---------------- Change in unrealized gains (losses) on investments...................... (94,729) (21,687) (363,478) 13,793 ---------------- ---------------- ---------------- ---------------- Net realized and unrealized gains (losses) on investments............. 71,531 1,159 (158,207) 27,347 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........... $ 64,435 $ 12,465 $ (78,005) $ 25,576 ================ ================ ================ ================
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 38
MFS NEW OPPENHEIMER MAIN OPPENHEIMER OPPENHEIMER MAIN MFS INVESTORS TRUST DISCOVERY STREET FUND/VA OPPENHEIMER BOND STRATEGIC BOND STREET SMALL CAP SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 1,415 $ -- $ 3,203 $ 16,427 $ 1,725 $ 591 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 2,147 2,033 3,639 3,747 612 22,626 236 227 400 412 67 4,979 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 2,383 2,260 4,039 4,159 679 27,605 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (968) (2,260) (836) 12,268 1,046 (27,014) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 1,435 11,645 -- -- -- 6,307 14,950 17,283 15,776 (766) 1,332 16,731 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 16,385 28,928 15,776 (766) 1,332 23,038 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (1,764) (23,022) (4,165) (3,427) 1,375 (357,522) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 14,621 5,906 11,611 (4,193) 2,707 (334,484) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 13,653 $ 3,646 $ 10,775 $ 8,075 $ 3,753 $ (361,498) ================ ================ ================ ================ ================ ================
The accompanying notes are an integral part of these financial statements. 39 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
FIDELITY VIP FIDELITY VIP FIDELITY VIP OPPENHEIMER MONEY ASSET MANAGER GROWTH CONTRAFUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------- ---------------- ---------------- ---------------- INVESTMENT INCOME: Dividends............................. $ 9,143 $ 8,586,449 $ 1,873,575 $ 3,369,937 ---------------- ---------------- ---------------- ---------------- EXPENSES: Mortality and expense risk charges.... 2,387 1,720,245 2,729,558 4,348,313 Administrative charges................ 260 193,890 308,235 499,786 ---------------- ---------------- ---------------- ---------------- Total expenses...................... 2,647 1,914,135 3,037,793 4,848,099 ---------------- ---------------- ---------------- ---------------- Net investment income (loss).......... 6,496 6,672,314 (1,164,218) (1,478,162) ---------------- ---------------- ---------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... -- 3,961,061 195,976 90,436,342 Realized gains (losses) on sale of investments......................... -- (115,518) 941,759 12,123,953 ---------------- ---------------- ---------------- ---------------- Net realized gains (losses)....... -- 3,845,543 1,137,735 102,560,295 ---------------- ---------------- ---------------- ---------------- Change in unrealized gains (losses) on investments...................... -- 7,775,552 50,354,170 (48,785,560) ---------------- ---------------- ---------------- ---------------- Net realized and unrealized gains (losses) on investments............. -- 11,621,095 51,491,905 53,774,735 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........... $ 6,496 $ 18,293,409 $ 50,327,687 $ 52,296,573 ================ ================ ================ ================
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 40
FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP OVERSEAS EQUITY-INCOME INDEX 500 MONEY MARKET MID-CAP DWS INTERNATIONAL SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ---------------- ---------------- ---------------- ----------------- $ 377,102 $ 265,110 $ 4,687,606 $ 1,869,925 $ 133,839 $ 905,219 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 130,538 206,038 1,600,925 446,215 355,691 461,496 15,739 22,724 182,725 50,604 65,123 52,010 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 146,277 228,762 1,783,650 496,819 420,814 513,506 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 230,825 36,348 2,903,956 1,373,106 (286,975) 391,713 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 769,078 1,168,184 -- -- 1,483,666 -- 466,428 715,277 4,803,371 -- 5,583 732,180 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 1,235,506 1,883,461 4,803,371 -- 1,489,249 732,180 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 203,682 (1,744,928) (2,246,692) -- 1,421,180 3,398,301 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 1,439,188 138,533 2,556,679 -- 2,910,429 4,130,481 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 1,670,013 $ 174,881 $ 5,460,635 $ 1,373,106 $ 2,623,454 $ 4,522,194 ================ ================ ================ ================ ================ ================
The accompanying notes are an integral part of these financial statements. 41 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
MSF FI MID-CAP MSF FI MSF FI MSF RUSSELL OPPORTUNITIES LARGE CAP VALUE LEADERS 2000 INDEX SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ---------------- ---------------- INVESTMENT INCOME: Dividends............................. $ 7,588 $ 5,479 $ 26,171 $ 81,426 ---------------- ---------------- ---------------- ---------------- EXPENSES: Mortality and expense risk charges.... 72,314 59,647 56,813 106,419 Administrative charges................ 8,099 9,495 9,512 12,182 ---------------- ---------------- ---------------- ---------------- Total expenses...................... 80,413 69,142 66,325 118,601 ---------------- ---------------- ---------------- ---------------- Net investment income (loss).......... (72,825) (63,663) (40,154) (37,175) ---------------- ---------------- ---------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... -- 227,257 283,342 666,363 Realized gains (losses) on sale of investments......................... 162,396 (2,724) (7,927) 154,591 ---------------- ---------------- ---------------- ---------------- Net realized gains (losses)....... 162,396 224,533 275,415 820,954 ---------------- ---------------- ---------------- ---------------- Change in unrealized gains (losses) on investments...................... 243,487 (129,030) (250,698) (1,007,958) ---------------- ---------------- ---------------- ---------------- Net realized and unrealized gains (losses) on investments............. 405,883 95,503 24,717 (187,004) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........... $ 333,058 $ 31,840 $ (15,437) $ (224,179) ================ ================ ================ ================
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 42
MSF BLACKROCK MSF FI MSF METLIFE LEGACY LARGE-CAP MSF BLACKROCK MSF BLACKROCK MSF BLACKROCK INTERNATIONAL STOCK STOCK INDEX GROWTH STRATEGIC VALUE BOND INCOME LARGE-CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 39,018 $ 2,827,241 $ 1,411 $ 41,058 $ 488,594 $ 29,506 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 69,838 4,222,062 9,885 166,831 296,083 39,477 12,079 692,819 1,095 19,032 43,799 4,415 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 81,917 4,914,881 10,980 185,863 339,882 43,892 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (42,899) (2,087,640) (9,569) (144,805) 148,712 (14,386) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 230,257 6,558,222 -- 1,576,916 -- 112,207 80,363 15,456,037 65,625 (67,855) 8,061 109,763 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 310,620 22,014,259 65,625 1,509,061 8,061 221,970 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 48,677 (9,054,135) 70,108 (2,028,210) 908,389 (177,922) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 359,297 12,960,124 135,733 (519,149) 916,450 44,048 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 316,398 $ 10,872,484 $ 126,164 $ (663,954) $ 1,065,162 $ 29,662 ================ ================ ================ ================ ================ ================
The accompanying notes are an integral part of these financial statements. 43 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
MSF LEHMAN BROTHERS MSF HARRIS OAKMARK MSF MORGAN STANLEY AGGREGATE BOND INDEX LARGE-CAP VALUE EAFE INDEX MFS TOTAL RETURN SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------ ------------------ ---------------- INVESTMENT INCOME: Dividends............................. $ 236,784 $ 53,784 $ 331,528 $ 774,829 ---------------- ---------------- ---------------- ---------------- EXPENSES: Mortality and expense risk charges.... 66,844 82,363 208,288 572,393 Administrative charges................ 7,486 9,406 23,538 92,435 ---------------- ---------------- ---------------- ---------------- Total expenses...................... 74,330 91,769 231,826 664,828 ---------------- ---------------- ---------------- ---------------- Net investment income (loss).......... 162,454 (37,985) 99,702 110,001 ---------------- ---------------- ---------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... -- 188,020 176,815 1,263,006 Realized gains (losses) on sale of investments......................... (6,457) 202,067 1,272,295 186,859 ---------------- ---------------- ---------------- ---------------- Net realized gains (losses)....... (6,457) 390,087 1,449,110 1,449,865 ---------------- ---------------- ---------------- ---------------- Change in unrealized gains (losses) on investments...................... 152,003 (692,362) (207,275) (955,552) ---------------- ---------------- ---------------- ---------------- Net realized and unrealized gains (losses) on investments............. 145,546 (302,275) 1,241,835 494,313 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........... $ 308,000 $ (340,260) $ 1,341,537 $ 604,314 ================ ================ ================ ================
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007, to December 31, 2007. (d)For the period January 1, 2007, to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 44
MSF METLIFE MID-CAP MSF DAVIS MSF HARRIS OAKMARK MSF JENNISON MSF BLACKROCK MSF T. ROWE PRICE STOCK INDEX VENTURE VALUE FOCUSED VALUE GROWTH MONEY MARKET SMALL-CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ------------------ ---------------- ---------------- ----------------- $ 111,960 $ 4,194,993 $ 1,303,271 $ 347,122 $ 10,618,196 $ -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 172,686 8,716,401 5,190,857 2,551,605 3,266,088 14,954 19,640 1,559,787 907,402 454,597 566,775 1,717 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 192,326 10,276,188 6,098,259 3,006,202 3,832,863 16,671 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (80,366) (6,081,195) (4,794,988) (2,659,080) 6,785,333 (16,671) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 599,919 -- 47,975,297 6,620,700 -- -- 514,021 22,595,716 16,520,186 6,420,398 -- 67,666 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 1,113,940 22,595,716 64,495,483 13,041,098 -- 67,666 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (259,259) 509,254 (89,503,608) 6,006,766 -- 41,398 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 854,681 23,104,970 (25,008,125) 19,047,864 -- 109,064 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 774,315 $ 17,023,775 $ (29,803,113) $ 16,388,784 $ 6,785,333 $ 92,393 ================ ================ ================ ================ ================ ================
The accompanying notes are an integral part of these financial statements. 45 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
MSF WESTERN ASSET MSF METLIFE MSF METLIFE MANAGEMENT MSF OPPENHEIMER AGGRESSIVE CONSERVATIVE U.S. GOVERNMENT GLOBAL EQUITY ALLOCATION ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------- ---------------- ---------------- ---------------- INVESTMENT INCOME: Dividends............................. $ 843,364 $ 48,136 $ 881 $ -- ---------------- ---------------- ---------------- ---------------- EXPENSES: Mortality and expense risk charges.... 527,095 90,776 27,051 35,948 Administrative charges................ 92,052 16,910 4,675 5,917 ---------------- ---------------- ---------------- ---------------- Total expenses...................... 619,147 107,686 31,726 41,865 ---------------- ---------------- ---------------- ---------------- Net investment income (loss).......... 224,217 (59,550) (30,845) (41,865) ---------------- ---------------- ---------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... -- 79,812 2,533 1,503 Realized gains (losses) on sale of investments......................... 361,346 73,346 38,757 8,361 ---------------- ---------------- ---------------- ---------------- Net realized gains (losses)....... 361,346 153,158 41,290 9,864 ---------------- ---------------- ---------------- ---------------- Change in unrealized gains (losses) on investments...................... 305,583 39,076 (55,561) 117,468 ---------------- ---------------- ---------------- ---------------- Net realized and unrealized gains (losses) on investments............. 666,929 192,234 (14,271) 127,332 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........... $ 891,146 $ 132,684 $ (45,116) $ 85,467 ================ ================ ================ ================
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 46
MSF METLIFE MSF METLIFE CONSERVATIVE TO MSF METLIFE MODERATE TO VAN KAMPEN LIT VAN KAMPEN LIT VAN KAMPEN LIT MODERATE ALLOCATION MODERATE ALLOCATION AGGRESSIVE ALLOCATION STRATEGIC GROWTH ENTERPRISE GROWTH AND INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- --------------------- ---------------- ---------------- ----------------- $ -- $ 1,959 $ 10,098 $ 176 $ 650 $ 345,314 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 58,876 418,339 604,098 99,135 2,129 457,193 9,869 71,460 102,111 17,371 233 84,890 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 68,745 489,799 706,209 116,506 2,362 542,083 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (68,745) (487,840) (696,111) (116,330) (1,712) (196,769) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 6,386 35,269 40,391 -- -- 928,360 39,292 197,232 65,717 30,962 6,611 96,470 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 45,678 232,501 106,108 30,962 6,611 1,024,830 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 130,975 582,917 572,440 1,037,575 11,304 (1,228,849) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 176,653 815,418 678,548 1,068,537 17,915 (204,019) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 107,908 $ 327,578 $ (17,563) $ 952,207 $ 16,203 $ (400,788) ================ ================ ================ ================ ================ ================
The accompanying notes are an integral part of these financial statements. 47 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
FEDERATED VAN KAMPEN LIT FEDERATED FEDERATED HIGH MID-CAP GROWTH COMSTOCK EQUITY INCOME INCOME BOND STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ---------------- ---------------- INVESTMENT INCOME: Dividends.............................. $ 680,531 $ 2,644 $ 10,439 $ -- ---------------- ---------------- ---------------- ---------------- EXPENSES: Mortality and expense risk charges..... 793,492 743 1,672 2,126 Administrative charges................. 146,465 85 183 235 ---------------- ---------------- ---------------- ---------------- Total expenses....................... 939,957 828 1,855 2,361 ---------------- ---------------- ---------------- ---------------- Net investment income (loss)........... (259,426) 1,816 8,584 (2,361) ---------------- ---------------- ---------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions............ 947,315 -- -- -- Realized gains (losses) on sale of investments.......................... 28,248 15,960 (533) 1,990 ---------------- ---------------- ---------------- ---------------- Net realized gains (losses)........ 975,563 15,960 (533) 1,990 ---------------- ---------------- ---------------- ---------------- Change in unrealized gains (losses) on investments.......................... (4,879,310) (14,812) (5,482) 28,811 ---------------- ---------------- ---------------- ---------------- Net realized and unrealized gains (losses) on investments.............. (3,903,747) 1,148 (6,015) 30,801 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ $ (4,163,173) $ 2,964 $ 2,569 $ 28,440 ================ ================ ================ ================
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 48
NEUBERGER ALGER AMERICAN T. ROWE PRICE T. ROWE PRICE T. ROWE PRICE JANUS ASPEN GENESIS SMALL CAPITALIZATION GROWTH INTERNATIONAL PRIME RESERVE WORLDWIDE GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- -------------------- ---------------- ---------------- ---------------- ---------------- $ 19 $ -- $ 63,359 $ 22,311 $ 83,470 $ 76 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 109 954,596 79,763 10,378 13,262 76 20 107,854 14,550 1,892 2,414 14 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 129 1,062,450 94,313 12,270 15,676 90 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (110) (1,062,450) (30,954) 10,041 67,794 (14) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 2,034 -- 304,726 141,062 -- -- 997 229,835 254,200 51,784 -- 259 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 3,031 229,835 558,926 192,846 -- 259 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (201) 12,066,768 401,349 (42,947) -- 573 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 2,830 12,296,603 960,275 149,899 -- 832 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 2,720 $ 11,234,153 $ 929,321 $ 159,940 $ 67,794 $ 818 ================ ================ ================ ================ ================ ================
The accompanying notes are an integral part of these financial statements. 49 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
AMERICAN FUNDS GLOBAL SMALL AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS CAPITALIZATION GROWTH GROWTH-INCOME GLOBAL GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ---------------- ---------------- INVESTMENT INCOME: Dividends............................. $ 816,282 $ 1,716,891 $ 2,233,446 $ 2,141,475 ---------------- ---------------- ---------------- ---------------- EXPENSES: Mortality and expense risk charges.... 327,046 2,408,688 1,610,886 932,977 Administrative charges................ 38,642 389,310 257,406 162,315 ---------------- ---------------- ---------------- ---------------- Total expenses...................... 365,688 2,797,998 1,868,292 1,095,292 ---------------- ---------------- ---------------- ---------------- Net investment income (loss).......... 450,594 (1,081,107) 365,154 1,046,183 ---------------- ---------------- ---------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... 1,886,030 11,015,618 3,537,989 2,371,100 Realized gains (losses) on sale of investments......................... 1,578,722 1,120,829 587,028 25,691 ---------------- ---------------- ---------------- ---------------- Net realized gains (losses)....... 3,464,752 12,136,447 4,125,017 2,396,791 ---------------- ---------------- ---------------- ---------------- Change in unrealized gains (losses) on investments...................... (92,073) 2,531,680 (3,416,856) 3,316,954 ---------------- ---------------- ---------------- ---------------- Net realized and unrealized gains (losses) on investments............. 3,372,679 14,668,127 708,161 5,713,745 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........... $ 3,823,273 $ 13,587,020 $ 1,073,315 $ 6,759,928 ================ ================ ================ ================
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 50
FTVIPT FRANKLIN FTVIPT FRANKLIN FTVIPT FRANKLIN FTVIPT FRANKLIN AMERICAN FUNDS ALLIANCEBERNSTEIN TEMPLETON MUTUAL TEMPLETON TEMPLETON GROWTH BOND LARGE CAP GROWTH DEVELOPING MARKETS SHARES SECURITIES FOREIGN SECURITIES SECURITIES SUB-ACCOUNT (C) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ----------------- ------------------ ----------------- ------------------ ---------------- $ 236,888 $ -- $ 366,787 $ 718,598 $ 701,899 $ 367,919 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 15,234 12,355 268,347 715,639 602,810 386,729 3,618 2,306 44,098 131,537 96,502 70,803 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 18,852 14,661 312,445 847,176 699,312 457,532 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 218,036 (14,661) 54,342 (128,578) 2,587 (89,613) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- 1,260,326 1,759,592 1,600,947 1,173,916 799 38,484 385,656 52,446 344,374 46,012 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 799 38,484 1,645,982 1,812,038 1,945,321 1,219,928 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (187,750) 80,891 2,389,109 (2,198,007) 2,747,346 (1,451,628) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (186,951) 119,375 4,035,091 (385,969) 4,692,667 (231,700) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 31,085 $ 104,714 $ 4,089,433 $ (514,547) $ 4,695,254 $ (321,313) ================ ================ ================ ================ ================ ================
The accompanying notes are an integral part of these financial statements. 51 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
FTVIPT FRANKLIN FTVIPT FRANKLIN TEMPLETON FTVIPT FRANKLIN TEMPLETON GLOBAL SMALL CAP VALUE VAN KAMPEN UIF INCOME SECURITIES INCOME SECURITIES SECURITIES EQUITY AND INCOME SUB-ACCOUNT SUB-ACCOUNT (C) SUB-ACCOUNT (C) SUB-ACCOUNT ----------------- ----------------- ---------------- ----------------- INVESTMENT INCOME: Dividends.............................. $ 1,860,300 $ 158 $ -- $ 2,484,944 ---------------- ---------------- ---------------- ---------------- EXPENSES: Mortality and expense risk charges..... 800,533 9,566 5,885 1,642,622 Administrative charges................. 147,818 2,263 1,371 303,888 ---------------- ---------------- ---------------- ---------------- Total expenses....................... 948,351 11,829 7,256 1,946,510 ---------------- ---------------- ---------------- ---------------- Net investment income (loss)........... 911,949 (11,671) (7,256) 538,434 ---------------- ---------------- ---------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions............ 344,999 -- -- 2,792,337 Realized gains (losses) on sale of investments.......................... 155,497 248 (2,830) 104,098 ---------------- ---------------- ---------------- ---------------- Net realized gains (losses)........ 500,496 248 (2,830) 2,896,435 ---------------- ---------------- ---------------- ---------------- Change in unrealized gains (losses) on investments.......................... (1,585,931) 76,020 (107,802) (3,278,237) ---------------- ---------------- ---------------- ---------------- Net realized and unrealized gains (losses) on investments.............. (1,085,435) 76,268 (110,632) (381,802) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ $ (173,486) $ 64,597 $ (117,888) $ 156,632 ================ ================ ================ ================
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 52
VAN KAMPEN UIF VAN KAMPEN UIF PIONEER VCT LMPVET LMPVET LMPV U.S. REAL ESTATE U.S. MID CAP VALUE MID-CAP VALUE SMALL CAP GROWTH INVESTORS CAPITAL AND INCOME SUB-ACCOUNT SUB-ACCOUNT (C) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (A) ---------------- ------------------ ---------------- ---------------- ---------------- ------------------ $ 1,084,944 $ 2,205 $ 94,184 $ -- $ 61,447 $ 289,738 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 666,241 7,018 238,530 102,771 63,120 187,809 121,245 1,576 43,968 17,368 10,139 34,151 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 787,486 8,594 282,498 120,139 73,259 221,960 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 297,458 (6,389) (188,314) (120,139) (11,812) 67,778 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 3,838,755 2,664 1,682,986 707,809 129,078 1,832,931 (58,951) (3,852) (96,517) 10,220 87,538 1,748,416 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 3,779,804 (1,188) 1,586,469 718,029 216,616 3,581,347 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (16,191,487) (47,921) (1,953,012) (170,870) (220,243) (1,315,359) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (12,411,683) (49,109) (366,543) 547,159 (3,627) 2,265,988 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ (12,114,225) $ (55,498) $ (554,857) $ 427,020 $ (15,439) $ 2,333,766 ================ ================ ================ ================ ================ ================
The accompanying notes are an integral part of these financial statements. 53 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2007
LMPVET LMPVET LMPVET LMPVET EQUITY INDEX FUNDAMENTAL VALUE APPRECIATION AGGRESSIVE GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ----------------- ---------------- ----------------- INVESTMENT INCOME: Dividends............................. $ 1,225,791 $ 1,043,749 $ 867,304 $ -- ---------------- ---------------- ---------------- ---------------- EXPENSES: Mortality and expense risk charges.... 1,571,976 930,498 878,083 1,496,131 Administrative charges................ 92,215 170,202 159,512 268,345 ---------------- ---------------- ---------------- ---------------- Total expenses...................... 1,664,191 1,100,700 1,037,595 1,764,476 ---------------- ---------------- ---------------- ---------------- Net investment income (loss).......... (438,400) (56,951) (170,291) (1,764,476) ---------------- ---------------- ---------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... 3,050,411 4,022,538 6,645,299 732,935 Realized gains (losses) on sale of investments......................... 355,707 19,299 118,766 45,169 ---------------- ---------------- ---------------- ---------------- Net realized gains (losses)....... 3,406,118 4,041,837 6,764,065 778,104 ---------------- ---------------- ---------------- ---------------- Change in unrealized gains (losses) on investments...................... (2,264,449) (5,252,831) (2,893,138) (263,742) ---------------- ---------------- ---------------- ---------------- Net realized and unrealized gains (losses) on investments............. 1,141,669 (1,210,994) 3,870,927 514,362 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........... $ 703,269 $ (1,267,945) $ 3,700,636 $ (1,250,114) ================ ================ ================ ================
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 54
LMPVET MULTIPLE DISCIPLINE LMPVET LMPV LMPVET LMPVET SUB-ACCOUNT-LARGE LARGE CAP GROWTH LARGE CAP VALUE SOCIAL AWARENESS CAPITAL AND INCOME CAP GROWTH LMPVET CAPITAL SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT (^) AND VALUE (D) SUB-ACCOUNT ---------------- ---------------- ---------------- ------------------ ----------------- ---------------- $ 4,229 $ 6,328 $ 7,533 $ 809,283 $ 13,415 $ 36,948 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 128,661 6,342 5,703 550,433 25,315 112,378 21,082 1,188 1,032 100,278 4,131 18,089 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 149,743 7,530 6,735 650,711 29,446 130,467 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (145,514) (1,202) 798 158,572 (16,031) (93,519) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- -- -- 87,361 9,564,244 110,813 474,841 135,272 148,950 10,559 (12,949) (16,252) 81,202 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 135,272 148,950 97,920 9,551,295 94,561 556,043 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 250,277 (68,118) (63,896) (9,641,183) (64,765) (598,669) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 385,549 80,832 34,024 (89,888) 29,796 (42,626) ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 240,035 $ 79,630 $ 34,822 $ 68,684 $ 13,765 $ (136,145) ================ ================ ================ ================ ================ ================
The accompanying notes are an integral part of these financial statements. 55 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENT OF OPERATIONS -- (CONCLUDED) FOR THE YEAR ENDED DECEMBER 31, 2007
LMPV PREMIER LMPVET SELECTIONS LMPVET LMPV GLOBAL EQUITY ALL CAP GROWTH DIVIDEND STRATEGY GROWTH AND INCOME SUB-ACCOUNT SUB-ACCOUNT (A) SUB-ACCOUNT SUB-ACCOUNT (A) ---------------- ---------------- ----------------- ----------------- INVESTMENT INCOME: Dividends............................. $ 43,379 $ 286 $ 168,832 $ 5,001 ---------------- ---------------- ---------------- ---------------- EXPENSES: Mortality & expense risk charges...... 103,047 1,320 85,567 18,570 Administrative charges................ 18,166 253 14,631 3,446 ---------------- ---------------- ---------------- ---------------- Total expenses...................... 121,213 1,573 100,198 22,016 ---------------- ---------------- ---------------- ---------------- Net investment income (loss).......... (77,834) (1,287) 68,634 (17,015) ---------------- ---------------- ---------------- ---------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... 371,323 32,000 -- 63,569 Realized gains (losses) on sale of investments......................... 98,856 (8,934) 31,060 404,806 ---------------- ---------------- ---------------- ---------------- Net realized gains (losses)....... 470,179 23,066 31,060 468,375 ---------------- ---------------- ---------------- ---------------- Change in unrealized gains (losses) on investments...................... (171,007) (1,057) 47,810 (231,080) ---------------- ---------------- ---------------- ---------------- Net realized and unrealized gains (losses) on investments............. 299,172 22,009 78,870 237,295 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........... $ 221,338 $ 20,722 $ 147,504 $ 220,280 ================ ================ ================ ================
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 56
LMPVET LMPVET LMPVET LMPVIT LIFESTYLE LIFESTYLE LIFESTYLE ADJUSTABLE LMPVIT GLOBAL LMPVIT ALLOCATION 50% ALLOCATION 70% ALLOCATION 85% RATE INCOME HIGH YIELD BOND MONEY MARKET SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ 339,979 $ 100,596 $ 265,757 $ 153,358 $ 3,002,167 $ 1,578,220 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 91,297 29,972 57,581 40,039 427,034 461,691 16,771 5,495 12,155 7,463 76,154 82,690 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 108,068 35,467 69,736 47,502 503,188 544,381 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 231,911 65,129 196,021 105,856 2,498,979 1,033,839 ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 71,693 42,030 97,773 -- 183,865 -- 61,630 7,122 6,580 (3,665) 8,344 -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 133,323 49,152 104,353 (3,665) 192,209 -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (374,438) (194,902) (650,821) (117,934) (3,622,401) -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- (241,115) (145,750) (546,468) (121,599) (3,430,192) -- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- $ (9,204) $ (80,621) $ (350,447) $ (15,743) $ (931,213) $ 1,033,839 ================ ================ ================ ================ ================ ================
The accompanying notes are an integral part of these financial statements. 57 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MIST LORD ABBETT MIST LORD ABBETT MIST VAN KAMPEN GROWTH AND INCOME BOND DEBENTURE MID-CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- --------------------------- ------------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ (5,228,738) $ 900,405 $ 11,005,391 $ 15,214,222 $ (213,159) $ (60,487) Net realized gains (losses)...... 66,973,185 83,592,141 1,357,269 2,913,009 677,224 91,530 Change in unrealized gains (losses) on investments........ (41,085,573) 42,908,024 1,748,154 3,338,422 1,346,860 185,358 ------------- ------------- ------------- ------------- ------------ ------------ Net increase (decrease) in net assets resulting from operations................ 20,658,874 127,400,570 14,110,814 21,465,653 1,810,925 216,401 ------------- ------------- ------------- ------------- ------------ ------------ CONTRACT TRANSACTIONS: Purchase payments received from contract owners........... 46,834,968 43,067,650 11,866,307 12,538,333 16,272,511 6,126,207 Net transfers (including fixed account)................. (42,192,503) (18,222,831) (537,799) (461,124) 1,160,441 (79,412) Contract charges................. (2,005,324) (1,901,988) (1,008,101) (1,024,216) (24,193) (1,119) Transfers for contract benefits and terminations............... (99,400,248) (75,937,047) (41,996,259) (29,019,560) (1,974,131) (131,097) ------------- ------------- ------------- ------------- ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions.......... (96,763,107) (52,994,216) (31,675,852) (17,966,567) 15,434,628 5,914,579 ------------- ------------- ------------- ------------- ------------ ------------ Net increase (decrease) in net assets.................. (76,104,233) 74,406,354 (17,565,038) 3,499,086 17,245,553 6,130,980 NET ASSETS: Beginning of period.............. 898,436,542 824,030,188 306,513,652 303,014,566 6,430,532 299,552 ------------- ------------- ------------- ------------- ------------ ------------ End of period.................... $ 822,332,309 $ 898,436,542 $ 288,948,614 $ 306,513,652 $ 23,676,085 $ 6,430,532 ============= ============= ============= ============= ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 58
MIST LORD ABBETT MIST LAZARD MIST MET/AIM MIST HARRIS OAKMARK MID-CAP VALUE MID-CAP SMALL-CAP GROWTH INTERNATIONAL SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- --------------------------- --------------------------- --------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- ---- ---- $ (170,332) $ (70,022) $ (1,802,344) $ (1,645,652) $ (3,078,140) $ (2,901,725) $ (3,677,588) $ 2,822,960 1,572,469 274,246 16,993,970 17,825,409 11,493,314 27,136,360 58,328,270 30,998,347 (1,981,561) 496,316 (22,036,063) (1,521,097) 7,260,878 (3,974,728) (66,126,162) 49,677,257 ------------ ------------ ------------- ------------- ------------- ------------- ------------- ------------- (579,424) 700,540 (6,844,437) 14,658,660 15,676,052 20,259,907 (11,475,480) 83,498,564 ------------ ------------ ------------- ------------- ------------- ------------- ------------- ------------- 7,930,644 7,315,844 17,011,941 9,493,835 16,457,316 14,579,046 40,484,716 51,029,021 711,375 1,605,995 (712,183) (10,866,080) (4,862,063) (8,466,806) (13,002,405) 8,236,212 (34,495) (1,406) (462,156) (432,824) (676,125) (651,688) (1,545,713) (1,273,876) (1,681,654) (236,251) (14,103,323) (10,309,132) (24,185,235) (17,555,216) (42,657,980) (24,853,273) ------------ ------------ ------------- ------------- ------------- ------------- ------------- ------------- 6,925,870 8,684,182 1,734,279 (12,114,201) (13,266,107) (12,094,664) (16,721,382) 33,138,084 ------------ ------------ ------------- ------------- ------------- ------------- ------------- ------------- 6,346,446 9,384,722 (5,110,158) 2,544,459 2,409,945 8,165,243 (28,196,862) 116,636,648 9,728,623 343,901 126,365,450 123,820,991 178,634,572 170,469,329 412,470,437 295,833,789 ------------ ------------ ------------- ------------- ------------- ------------- ------------- ------------- $ 16,075,069 $ 9,728,623 $ 121,255,292 $ 126,365,450 $ 181,044,517 $ 178,634,572 $ 384,273,575 $ 412,470,437 ============ ============ ============= ============= ============= ============= ============= =============
The accompanying notes are an integral part of these financial statements. 59 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MIST THIRD AVENUE MIST OPPENHEIMER MIST LEGG MASON PARTNERS SMALL-CAP VALUE CAPITAL APPRECIATION AGGRESSIVE GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- --------------------------- --------------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ (2,365,462) $ (4,177,394) $ (5,919,663) $ (5,510,459) $ (1,880,795) $ (2,025,840) Net realized gains (losses)...... 46,171,378 36,727,364 29,552,170 6,772,097 12,298,558 9,458,759 Change in unrealized gains (losses) on investments........ (58,768,816) 4,554,354 18,087,115 19,412,128 (9,545,677) (11,573,972) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations................ (14,962,900) 37,104,324 41,719,622 20,673,766 872,086 (4,141,053) ------------- ------------- ------------- ------------- ------------- ------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners........... 28,238,237 46,507,010 15,359,065 20,936,146 5,158,552 7,907,276 Net transfers (including fixed account)................. (26,301,845) (10,951,651) (17,480,507) (22,438,408) (4,650,232) (4,639,012) Contract charges................. (1,239,790) (1,229,362) (1,196,654) (1,190,587) (412,688) (442,240) Transfers for contract benefits and terminations............... (38,149,421) (27,367,308) (41,412,366) (30,435,521) (13,668,575) (9,607,627) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from contract transactions.......... (37,452,819) 6,958,689 (44,730,462) (33,128,370) (13,572,943) (6,781,603) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets.................. (52,415,719) 44,063,013 (3,010,840) (12,454,604) (12,700,857) (10,922,656) NET ASSETS: Beginning of period.............. 368,917,121 324,854,108 357,893,449 370,348,053 116,887,678 127,810,334 ------------- ------------- ------------- ------------- ------------- ------------- End of period.................... $ 316,501,402 $ 368,917,121 $ 354,882,609 $ 357,893,449 $ 104,186,821 $ 116,887,678 ============= ============= ============= ============= ============= =============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 60
MIST PIMCO MIST PIMCO MIST T. ROWE PRICE TOTAL RETURN MIST RCM TECHNOLOGY INFLATION PROTECTED BOND MID-CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- ------------------------- --------------------------- --------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- ---- ---- $ 7,582,839 $ 4,140,297 $ (924,396) $ (824,044) $ 1,153,679 $ 5,512,463 $ (3,913,251) $ (3,638,388) 1,865,721 927,244 5,238,101 1,316,641 (630,364) 5,638,794 29,910,027 15,799,051 16,489,342 7,179,331 9,989,409 1,146,743 20,764,489 (14,594,674) 7,709,385 (2,691,809) ------------- ------------- ------------ ------------ ------------- ------------- ------------- ------------- 25,937,902 12,246,872 14,303,114 1,639,340 21,287,804 (3,443,417) 33,706,161 9,468,854 ------------- ------------- ------------ ------------ ------------- ------------- ------------- ------------- 50,324,363 47,026,170 3,593,950 4,741,982 20,751,843 22,333,131 14,767,868 26,389,911 8,186,069 2,054,806 16,177,923 (768,025) (7,516,750) (20,241,542) 348,445 (13,388,811) (1,270,612) (1,184,844) (200,345) (175,376) (825,450) (881,213) (856,284) (784,935) (54,019,084) (38,069,350) (6,035,134) (4,285,928) (28,756,476) (23,245,518) (25,938,293) (18,459,663) ------------- ------------- ------------ ------------ ------------- ------------- ------------- ------------- 3,220,736 9,826,782 13,536,394 (487,347) (16,346,833) (22,035,142) (11,678,264) (6,243,498) ------------- ------------- ------------ ------------ ------------- ------------- ------------- ------------- 29,158,638 22,073,654 27,839,508 1,151,993 4,940,971 (25,478,559) 22,027,897 3,225,356 440,826,722 418,753,068 50,206,487 49,054,494 250,682,193 276,160,752 220,015,833 216,790,477 ------------- ------------- ------------ ------------ ------------- ------------- ------------- ------------- $ 469,985,360 $ 440,826,722 $ 78,045,995 $ 50,206,487 $ 255,623,164 $ 250,682,193 $ 242,043,730 $ 220,015,833 ============= ============= ============ ============ ============= ============= ============= =============
The accompanying notes are an integral part of these financial statements. 61 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MIST MFS MIST NEUBERGER BERMAN MIST TURNER RESEARCH INTERNATIONAL REAL ESTATE MID-CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- -------------------------- ------------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ (1,384,020) $ (24,710) $ (925,011) $ (695,598) $ (916,886) $ (786,006) Net realized gains (losses)...... 53,418,957 22,849,846 26,163,946 7,602,988 5,271,106 1,757,112 Change in unrealized gains (losses) on investments........ (18,855,679) 30,592,548 (48,097,283) 23,071,116 6,353,919 385,274 ------------- ------------- ------------- ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations................ 33,179,258 53,417,684 (22,858,348) 29,978,506 10,708,139 1,356,380 ------------- ------------- ------------- ------------ ------------ ------------ CONTRACT TRANSACTIONS: Purchase payments received from contract owners........... 50,987,545 42,268,038 21,175,505 20,801,468 4,172,741 9,137,550 Net transfers (including fixed account)................. 8,788,864 10,197,716 (21,480,375) 20,335,194 10,905,125 3,688,977 Contract charges................. (1,009,685) (800,756) (441,641) (341,542) (207,551) (165,139) Transfers for contract benefits and terminations............... (34,281,775) (22,167,484) (12,322,862) (6,411,309) (6,050,984) (3,559,246) ------------- ------------- ------------- ------------ ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions.......... 24,484,949 29,497,514 (13,069,373) 34,383,811 8,819,331 9,102,142 ------------- ------------- ------------- ------------ ------------ ------------ Net increase (decrease) in net assets.................. 57,664,207 82,915,198 (35,927,721) 64,362,317 19,527,470 10,458,522 NET ASSETS: Beginning of period.............. 287,904,765 204,989,567 136,595,815 72,233,498 49,712,120 39,253,598 ------------- ------------- ------------- ------------ ------------ ------------ End of period.................... $ 345,568,972 $ 287,904,765 $ 100,668,094 $136,595,815 $ 69,239,590 $ 49,712,120 ============= ============= ============= ============ ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 62
MIST GOLDMAN SACHS MIST METLIFE MIST METLIFE MIST METLIFE MID-CAP VALUE DEFENSIVE STRATEGY MODERATE STRATEGY BALANCED STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- --------------------------- ----------------------------- ----------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- ---- ---- $ (1,760,295) $(1,930,767) $ 1,078,222 $ (5,545,682) $ 3,519,276 $ (17,357,809) $ (1,240,824) $ (53,816,040) 20,057,549 3,265,059 25,559,373 7,627,422 43,528,582 11,879,693 146,572,128 24,321,752 (17,017,038) 13,997,891 (5,702,644) 22,998,623 9,710,951 93,530,272 (28,996,861) 357,213,321 ------------- ------------ ------------- ------------- -------------- -------------- -------------- -------------- 1,280,216 15,332,183 20,934,951 25,080,363 56,758,809 88,052,156 116,334,443 327,719,033 ------------- ------------ ------------- ------------- -------------- -------------- -------------- -------------- 16,314,472 23,305,265 116,678,354 66,952,838 355,826,125 256,447,936 1,172,544,439 885,874,982 2,122,054 8,856,359 135,710,237 70,656,423 91,228,471 92,363,825 258,572,420 236,677,713 (515,879) (390,195) (2,050,972) (1,230,332) (5,309,332) (3,706,043) (17,811,972) (11,611,163) (14,733,985) (7,593,762) (69,979,695) (32,632,044) (124,395,950) (71,549,147) (374,125,107) (194,621,957) ------------- ------------ ------------- ------------- -------------- -------------- -------------- -------------- 3,186,662 24,177,667 180,357,924 103,746,885 317,349,314 273,556,571 1,039,179,780 916,319,575 ------------- ------------ ------------- ------------- -------------- -------------- -------------- -------------- 4,466,878 39,509,850 201,292,875 128,827,248 374,108,123 361,608,727 1,155,514,223 1,244,038,608 135,606,841 96,096,991 399,117,450 270,290,202 1,227,960,101 866,351,374 3,917,704,428 2,673,665,820 ------------- ------------ ------------- ------------- -------------- -------------- -------------- -------------- $ 140,073,719 $135,606,841 $ 600,410,325 $ 399,117,450 $1,602,068,224 $1,227,960,101 $5,073,218,651 $3,917,704,428 ============= ============ ============= ============= ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 63 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MIST METLIFE MIST METLIFE MIST VAN KAMPEN GROWTH STRATEGY AGGRESSIVE STRATEGY COMSTOCK SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- --------------------------- --------------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).................. $ (29,926,788) $ (52,146,385) $ (2,488,811) $ (9,548,328) $ (204,833) $ (533,507) Net realized gains (losses)................ 168,111,583 18,043,367 56,147,163 10,891,568 2,603,944 486,896 Change in unrealized gains (losses) on investments............. (39,049,469) 404,325,541 (45,549,415) 62,614,142 (5,459,293) 4,864,537 -------------- -------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations......... 99,135,326 370,222,523 8,108,937 63,957,382 (3,060,182) 4,817,926 -------------- -------------- ------------- ------------- ------------- ------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.................. 2,245,127,704 1,349,680,841 56,256,592 115,468,732 16,420,919 15,630,228 Net transfers (including fixed account).......... 179,235,678 261,117,729 (34,875,419) 9,336,275 2,301,133 14,807,706 Contract charges.......... (20,295,766) (10,688,916) (2,548,131) (2,121,578) (197,140) (88,238) Transfers for contract benefits and terminations............ (335,301,976) (151,068,704) (56,394,234) (41,223,880) (4,820,685) (1,604,023) -------------- -------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from contract transactions............ 2,068,765,640 1,449,040,950 (37,561,192) 81,459,549 13,704,227 28,745,673 -------------- -------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets........... 2,167,900,966 1,819,263,473 (29,452,255) 145,416,931 10,644,045 33,563,599 NET ASSETS: Beginning of period....... 4,136,759,495 2,317,496,022 636,476,170 491,059,239 50,349,650 16,786,051 -------------- -------------- ------------- ------------- ------------- ------------- End of period............. $6,304,660,461 $4,136,759,495 $ 607,023,915 $ 636,476,170 $ 60,993,695 $ 50,349,650 ============== ============== ============= ============= ============= =============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 64
MIST LEGG MASON MIST MET/PUTNAM MIST MFS MIST LOOMIS SAYLES VALUE EQUITY CAPITAL OPPORTUNITIES EMERGING MARKETS EQUITY GLOBAL MARKETS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- --------------------------- --------------------------- --------------------------- 2007 2006 2007 (A) 2006 2007 2006 (B) 2007 2006 (B) ---- ---- -------- ---- ---- -------- ---- -------- $ (825,219) $ (398,348) $ (1,928) $ (2,539) $ (439,794) $ 32,054 $ (322,177) $ 24,263 349,121 630,970 57,652 10,175 1,483,800 (58,383) 699,708 (23,482) (4,218,334) 2,399,674 (9,944) 9,944 6,322,422 976,734 4,061,051 543,839 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- (4,694,432) 2,632,296 45,780 17,580 7,366,428 950,405 4,438,582 544,620 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 24,730,317 27,151,107 295,424 337,154 10,010,256 1,859,077 5,973,340 2,094,978 3,022,118 9,742,756 (704,250) 11,264 37,585,850 6,810,729 40,306,250 5,209,906 (138,508) (20,637) (56) -- (83,937) (7,987) (68,552) (6,804) (5,184,945) (752,979) (2,383) (513) (2,228,009) (187,565) (2,962,307) (55,791) ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 22,428,982 36,120,247 (411,265) 347,905 45,284,160 8,474,254 43,248,731 7,242,289 ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- 17,734,550 38,752,543 (365,485) 365,485 52,650,588 9,424,659 47,687,313 7,786,909 40,088,253 1,335,710 365,485 -- 9,424,659 -- 7,786,909 -- ------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------- $ 57,822,803 $ 40,088,253 $ -- $ 365,485 $ 62,075,247 $ 9,424,659 $ 55,474,222 $ 7,786,909 ============= ============= ============= ============= ============= ============= ============= =============
The accompanying notes are an integral part of these financial statements. 65 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MIST MET/AIM CAPITAL APPRECIATION MIST JANUS FORTY MIST MFS VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------------- 2007 2006 (B) 2007 2006 (B) 2007 2006 (B) ---- -------- ---- -------- ---- -------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ (24,229) $ (8,787) $ (58,234) $ (12,260) $ (224,335) $ 31,890 Net realized gains (losses)...... (11,771) 129,886 290,551 (1,758) 232,584 252,135 Change in unrealized gains (losses) on investments........ 153,974 (89,243) 745,181 87,278 416,511 158,096 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations................ 117,974 31,856 977,498 73,260 424,760 442,121 ------------ ------------ ------------ ------------ ------------ ------------ CONTRACT TRANSACTIONS: Purchase payments received from contract owners........... 1,114,663 697,824 5,345,268 777,008 12,506,089 4,196,317 Net transfers (including fixed account)................. 90,690 433,224 1,181,536 562,649 976,448 1,494,047 Contract charges................. (1,628) -- (4,708) (143) (13,216) (504) Transfers for contract benefits and terminations............... (121,519) (29,057) (194,912) (2,365) (656,730) (40,727) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions.......... 1,082,206 1,101,991 6,327,184 1,337,149 12,812,591 5,649,133 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................. 1,200,180 1,133,847 7,304,682 1,410,409 13,237,351 6,091,254 NET ASSETS: Beginning of period.............. 1,133,847 -- 1,410,409 -- 6,091,254 -- ------------ ------------ ------------ ------------ ------------ ------------ End of period.................... $ 2,334,027 $ 1,133,847 $ 8,715,091 $ 1,410,409 $ 19,328,605 $ 6,091,254 ============ ============ ============ ============ ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 66
MIST DREMAN MIST PIONEER MIST PIONEER SMALL CAP VALUE MIST PIONEER FUND MID-CAP VALUE STRATEGIC INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------------- ------------------------- 2007 2006 (B) 2007 2006 (B) 2007 (A) 2006 (B) 2007 2006 (B) ---- -------- ---- -------- -------- -------- ---- -------- $ (152,699) $ (16,898) $ (61,130) $ (23,731) $ (6,271) $ (24,842) $ (701,142) $ 1,494,514 111,787 14,858 41,030 1,627 730,753 35,009 6,106 4,153 (482,953) 398,756 90,072 244,133 (223,664) 223,664 4,115,896 (633,361) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ (523,865) 396,716 69,972 222,029 500,818 233,831 3,420,860 865,306 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 7,266,348 3,031,404 4,912,407 3,052,915 1,330,610 2,305,348 54,487,997 32,862,325 461,445 1,888,210 513,788 731,725 (5,693,604) 1,568,200 6,487,557 4,493,036 (16,511) (414) (5,706) (235) (4,396) (511) (11,004) (45) (963,992) (28,287) (649,899) (167,237) (38,019) (202,277) (3,650,191) (781,428) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 6,747,290 4,890,913 4,770,590 3,617,168 (4,405,409) 3,670,760 57,314,359 36,573,888 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 6,223,425 5,287,629 4,840,562 3,839,197 (3,904,591) 3,904,591 60,735,219 37,439,194 5,287,629 -- 3,839,197 -- 3,904,591 -- 37,439,194 -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 11,511,054 $ 5,287,629 $ 8,679,759 $ 3,839,197 $ -- $ 3,904,591 $ 98,174,413 $ 37,439,194 ============ ============ ============ ============ ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements. 67 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MIST BLACKROCK MIST BLACKROCK MIST RAINIER LARGE LARGE-CAP CORE HIGH YIELD CAP EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------ 2007 2006 (B) 2007 2006 (B) 2007 (C) ---- -------- ---- -------- -------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ (42,023) $ (14,614) $ 334,483 $ (26,007) $ (2,935) Net realized gains (losses)...... 265,390 780 (5,218) 2,005 1,427 Change in unrealized gains (losses) on investments........ (95,545) 127,174 (351,001) 162,300 80,318 ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations................ 127,822 113,340 (21,736) 138,298 78,810 ------------ ------------ ------------ ------------ ------------ CONTRACT TRANSACTIONS: Purchase payments received from contract owners........... 2,331,465 1,247,987 5,403,583 2,305,612 520,514 Net transfers (including fixed account)................. 252,641 592,108 (269,073) 862,288 5,813,549 Contract charges................. (7,280) (66) (9,703) (182) (1,771) Transfers for contract benefits and terminations............... (185,175) (5,626) (897,289) (59,618) (21,010) ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions.......... 2,391,651 1,834,403 4,227,518 3,108,100 6,311,282 ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................. 2,519,473 1,947,743 4,205,782 3,246,398 6,390,092 NET ASSETS: Beginning of period.............. 1,947,743 -- 3,246,398 -- -- ------------ ------------ ------------ ------------ ------------ End of period.................... $ 4,467,216 $ 1,947,743 $ 7,452,180 $ 3,246,398 $ 6,390,092 ============ ============ ============ ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 68
AIM V.I. CORE EQUITY AIM V.I. CAPITAL APPRECIATION AIM V.I. INTERNATIONAL GROWTH AIM V.I. BASIC BALANCED SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ----------------------------- ----------------------------- ------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- ---- ---- $ (4,390) $ (4,933) $ (8,159) $ (9,066) $ (7,096) $ (3,869) $ 11,306 $ 4,326 52,971 7,179 18,910 (6,233) 166,260 47,565 22,846 2,685 22,869 91,646 46,579 45,746 (94,729) 162,553 (21,687) 79,162 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 71,450 93,892 57,330 30,447 64,435 206,249 12,465 86,173 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -- -- -- 220 11,183,339 724 -- -- (31,665) 1,213,426 (45,892) (12,684) 263,678 883 (89,126) (24,561) -- -- -- -- -- -- -- -- (357,025) (130,960) (210,349) (94,076) (457,237) (147,488) (226,938) (109,335) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ (388,690) 1,082,466 (256,241) (106,540) 10,989,780 (145,881) (316,064) (133,896) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ (317,240) 1,176,358 (198,911) (76,093) 11,054,215 60,368 (303,599) (47,723) 1,176,358 -- 632,398 708,491 899,842 839,474 977,412 1,025,135 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 859,118 $ 1,176,358 $ 433,487 $ 632,398 $ 11,954,057 $ 899,842 $ 673,813 $ 977,412 ============ ============ ============ ============ ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements. 69 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
AIM V.I. GLOBAL REAL ESTATE MFS RESEARCH MFS INVESTORS TRUST SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------ ------------------------- ------------------------- 2007 (D) 2007 2006 2007 2006 -------- ---- ---- ---- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ 80,202 $ (1,771) $ (2,619) $ (968) $ (1,482) Net realized gains (losses)...... 205,271 13,554 1,650 16,385 1,646 Change in unrealized gains (losses) on investments........ (363,478) 13,793 25,898 (1,764) 17,615 ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations................ (78,005) 25,576 24,929 13,653 17,779 ------------ ------------ ------------ ------------ ------------ CONTRACT TRANSACTIONS: Purchase payments received from contract owners........... 1,584,128 -- -- -- -- Net transfers (including fixed account)................. 6,314 (37,362) (33,509) (18,567) -- Contract charges................. -- -- (51,508) -- -- Transfers for contract benefits and terminations............... (1,753) (65,602) -- (33,795) (11,633) ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net Assets resulting from contract transactions.......... 1,588,689 (102,964) (85,017) (52,362) (11,633) ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................. 1,510,684 (77,388) (60,088) (38,709) 6,146 NET ASSETS: Beginning of period.............. -- 276,705 336,793 170,831 164,685 ------------ ------------ ------------ ------------ ------------ End of period.................... $ 1,510,684 $ 199,317 $ 276,705 $ 132,122 $ 170,831 ============ ============ ============ ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 70
OPPENHEIMER MAIN MFS NEW DISCOVERY STREET FUND/VA OPPENHEIMER BOND OPPENHEIMER STRATEGIC BOND SUB- SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ACCOUNT ------------------------- ------------------------- ------------------------- ------------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- ---- ---- $ (2,260) $ (2,939) $ (836) $ (808) $ 12,268 $ 14,378 $ 1,046 $ 1,384 28,928 6,942 15,776 1,182 (766) (622) 1,332 66 (23,022) 19,144 (4,165) 38,049 (3,427) (1,473) 1,375 1,453 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,646 23,147 10,775 38,423 8,075 12,283 3,753 2,903 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -- -- -- -- -- -- -- -- (18,325) (25) -- -- -- -- -- -- -- -- -- -- -- -- -- -- (92,147) (25,624) (77,938) (12,028) (67,923) (60,365) (8,457) 1 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ (110,472) (25,649) (77,938) (12,028) (67,923) (60,365) (8,457) 1 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ (106,826) (2,502) (67,163) 26,395 (59,848) (48,082) (4,704) 2,904 206,180 208,682 321,623 295,228 324,377 372,459 51,318 48,414 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 99,354 $ 206,180 $ 254,460 $ 321,623 $ 264,529 $ 324,377 $ 46,614 $ 51,318 ============ ============ ============ ============ ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements. 71 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
OPPENHEIMER MAIN STREET SMALL CAP OPPENHEIMER MONEY FIDELITY VIP ASSET MANAGER SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- --------------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)...... $ (27,014) $ (2,489) $ 6,496 $ 6,073 $ 6,672,314 $ 2,034,828 Net realized gains (losses)...... 23,038 23,771 -- -- 3,845,543 (1,181,456) Change in unrealized gains (losses) on investments........ (357,522) 3,332 -- -- 7,775,552 7,246,543 ------------ ------------ ------------ ------------ ------------- ------------- Net increase (decrease) in net assets resulting from operations................ (361,498) 24,614 6,496 6,073 18,293,409 8,099,915 ------------ ------------ ------------ ------------ ------------- ------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners........... 8,250,497 -- -- -- 5,515,702 -- Net transfers (including fixed account)................. 277,612 -- (22,681) (4,329) (5,230,911) 440,619 Contract charges................. -- -- -- -- (12,697) -- Transfers for contract benefits and terminations............... (39,830) (27,289) (3,240) (9,345) (16,139,564) (17,861,267) ------------ ------------ ------------ ------------ ------------- ------------- Net increase (decrease) in net assets resulting from contract transactions.......... 8,488,279 (27,289) (25,921) (13,674) (15,867,470) (17,420,648) ------------ ------------ ------------ ------------ ------------- ------------- Net increase (decrease) in net assets.................. 8,126,781 (2,675) (19,425) (7,601) 2,425,939 (9,320,733) NET ASSETS: Beginning of period.............. 187,405 190,080 187,777 195,378 140,644,002 149,964,735 ------------ ------------ ------------ ------------ ------------- ------------- End of period.................... $ 8,314,186 $ 187,405 $ 168,352 $ 187,777 $ 143,069,941 $ 140,644,002 ============ ============ ============ ============ ============= =============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 72
FIDELITY VIP GROWTH FIDELITY VIP CONTRAFUND FIDELITY VIP OVERSEAS FIDELITY VIP EQUITY-INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- --------------------------- ------------------------- ------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- ---- ---- $ (1,164,218) $ (2,084,858) $ (1,478,162) $ (202,376) $ 230,825 $ (40,101) $ 36,348 $ 363,303 1,137,735 (3,545,302) 102,560,295 34,968,032 1,235,506 409,953 1,883,461 2,980,288 50,354,170 17,161,078 (48,785,560) (3,008,548) 203,682 1,335,588 (1,744,928) (86,741) ------------- ------------- ------------- ------------- ------------ ------------ ------------ ------------ 50,327,687 11,530,918 52,296,573 31,757,108 1,670,013 1,705,440 174,881 3,256,850 ------------- ------------- ------------- ------------- ------------ ------------ ------------ ------------ 9,741,030 145,629 26,914,007 3,586,557 204,541 46,730 42,317 49,041 (11,295,438) 1,142,151 (4,821,333) 10,570,868 (242,634) 18,062 (248,525) (337,108) (24,060) -- (53,138) (445) (67) -- -- -- (24,377,267) (28,983,611) (35,357,279) (23,563,894) (1,563,464) (1,818,178) (4,084,425) (5,753,608) ------------- ------------- ------------- ------------- ------------ ------------ ------------ ------------ (25,955,735) (27,695,831) (13,317,743) (9,406,914) (1,601,624) (1,753,386) (4,290,633) (6,041,675) ------------- ------------- ------------- ------------- ------------ ------------ ------------ ------------ 24,371,952 (16,164,913) 38,978,830 22,350,194 68,389 (47,946) (4,115,752) (2,784,825) 214,865,663 231,030,576 338,418,167 316,067,973 11,259,345 11,307,291 17,809,782 20,594,607 ------------- ------------- ------------- ------------- ------------ ------------ ------------ ------------ $ 239,237,615 $ 214,865,663 $ 377,396,997 $ 338,418,167 $ 11,327,734 $ 11,259,345 $ 13,694,030 $ 17,809,782 ============= ============= ============= ============= ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements. 73 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
FIDELITY VIP INDEX 500 FIDELITY VIP MONEY MARKET FIDELITY VIP MID-CAP SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- ------------------------- ------------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ 2,903,956 $ 584,827 $ 1,373,106 $ 1,152,277 $ (286,975) $ (86,138) Net realized gains (losses)...... 4,803,371 3,236,705 -- -- 1,489,249 1,917 Change in unrealized gains (losses) on investments........ (2,246,692) 14,008,767 -- -- 1,421,180 651,462 ------------- ------------- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations................ 5,460,635 17,830,299 1,373,106 1,175,778 2,623,454 567,241 ------------- ------------- ------------ ------------ ------------ ------------ CONTRACT TRANSACTIONS: Purchase payments received from contract owners........... 2,570 -- 5,298,830 54,130 21,898,285 13,266,777 Net transfers (including fixed account)................. (6,452,896) (421,580) 416,063 5,613,103 3,229,460 504,093 Contract charges................. (25,541) -- (3,482) -- (5,301) -- Transfers for contract benefits and terminations............... (11,968,753) (21,236,475) (4,509,159) (2,708,725) (1,395,375) (192,318) ------------- ------------- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions.......... (18,444,620) (21,658,055) 1,202,252 2,958,508 23,727,069 13,578,552 ------------- ------------- ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................. (12,983,985) (3,827,756) 2,575,358 4,110,785 26,350,523 14,145,793 NET ASSETS: Beginning of period.............. 135,796,690 139,624,446 35,607,299 31,496,514 14,145,793 -- ------------- ------------- ------------ ------------ ------------ ------------ End of period.................... $ 122,812,705 $ 135,796,690 $ 38,182,657 $ 35,607,299 $ 40,496,316 $ 14,145,793 ============= ============= ============ ============ ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the Period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 74
DWS INTERNATIONAL MSF FI MID-CAP OPPORTUNITIES MSF FI LARGE CAP MSF FI VALUE LEADERS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ---------------------------- -------------------------- ------------------------- 2007 2006 2007 2006 2007 2006 (B) 2007 2006 (B) ---- ---- ---- ---- ---- -------- ---- -------- $ 391,713 $ 155,765 $ (72,825) $ (63,289) $ (63,663) $ (17,266) $ (40,154) $ (24,722) 732,180 148,747 162,396 93,317 224,533 1,885 275,415 (7,023) 3,398,301 6,490,367 243,487 423,008 (129,030) 132,500 (250,698) 143,802 ------------ ------------ ------------ ------------- ------------ ------------- ------------ ------------ 4,522,194 6,794,879 333,058 453,036 31,840 117,119 (15,437) 112,057 ------------ ------------ ------------ ------------- ------------ ------------- ------------ ------------ 2,213,191 -- 565,032 4,807 2,347,773 1,694,989 2,375,376 1,290,715 394,829 2,365,834 904,548 1,225,846 692,021 490,335 (83,879) 1,434,064 (2,802) -- (199) -- (7,541) (486) (6,613) (598) (3,174,740) (1,641,028) (543,928) (527,332) (582,773) (15,912) (388,773) (174,151) ------------ ------------ ------------ ------------- ------------ ------------- ------------ ------------ (569,522) 724,806 925,453 703,321 2,449,480 2,168,926 1,896,111 2,550,030 ------------ ------------ ------------ ------------- ------------ ------------- ------------ ------------ 3,952,672 7,519,685 1,258,511 1,156,357 2,481,320 2,286,045 1,880,674 2,662,087 35,260,353 27,740,668 5,260,407 4,104,050 2,286,045 -- 2,662,087 -- ------------ ------------ ------------ ------------- ------------ ------------- ------------ ------------ $ 39,213,025 $ 35,260,353 $ 6,518,918 $ 5,260,407 $ 4,767,365 $ 2,286,045 $ 4,542,761 $ 2,662,087 ============ ============ ============ ============= ============ ============= ============ ============
The accompanying notes are an integral part of these financial statements. 75 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MSF RUSSELL 2000 INDEX MSF FI INTERNATIONAL STOCK SUB- MSF METLIFE STOCK INDEX SUB-ACCOUNT ACCOUNT SUB-ACCOUNT ------------------------- ------------------------------- --------------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ (37,175) $ (30,808) $ (42,899) $ (13,218) $ (2,087,640) $ 776,642 Net realized gains (losses)...... 820,954 696,022 310,620 71,961 22,014,259 22,530,720 Change in unrealized appreciation (depreciation) on investments.. (1,007,958) 418,666 48,677 202,153 (9,054,135) 14,814,465 ------------ ------------ ------------ ------------ ------------- ------------- Net increase (decrease) in net assets resulting from operations................ (224,179) 1,083,880 316,398 260,896 10,872,484 38,121,827 ------------ ------------ ------------ ------------ ------------- ------------- CONTRACT TRANSACTIONS: Payments received from contract owners................ 986,954 7,989 2,825,776 2,282,869 18,130,798 16,105,165 Net transfers (including fixed account)................. (303,487) 2,478,910 437,743 231,350 (5,345,963) (12,431,402) Contract charges................. (311) -- (798) -- (804,890) (806,280) Transfers for contract benefits & terminations................. (671,040) (2,466,445) (389,969) (225,249) (35,956,121) (29,586,478) ------------ ------------ ------------ ------------ ------------- ------------- Net increase (decrease) in net assets resulting from contract transactions.......... 12,116 20,454 2,872,752 2,288,970 (23,976,176) (26,718,995) ------------ ------------ ------------ ------------ ------------- ------------- Net increase (decrease) in net assets.................. (212,063) 1,104,334 3,189,150 2,549,866 (13,103,692) 11,402,832 NET ASSETS: Beginning of period.............. 8,227,895 7,123,561 3,232,921 683,055 313,093,531 301,690,699 ------------ ------------ ------------ ------------ ------------- ------------- End of period.................... $ 8,015,832 $ 8,227,895 $ 6,422,071 $ 3,232,921 $ 299,989,839 $ 313,093,531 ============ ============ ============ ============ ============= =============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 76
MSF BLACKROCK LEGACY MSF BLACKROCK MSF BLACKROCK MSF BLACKROCK LARGE-CAP GROWTH STRATEGIC VALUE BOND INCOME LARGE-CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------------- ------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- ---- ---- $ (9,569) $ (6,322) $ (144,805) $ (125,282) $ 148,712 $ 98,654 $ (14,386) $ (3,815) 65,625 35,441 1,509,061 2,389,348 8,061 (25,956) 221,970 104,587 70,108 (10,727) (2,028,210) (537,903) 908,389 221,483 (177,922) 146,034 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 126,164 18,392 (663,954) 1,726,163 1,065,162 294,181 29,662 246,806 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 101,671 -- 1,866,113 -- 17,154,514 5,238,410 285,688 -- 309,928 315,780 (506,986) 1,018,805 2,143,188 3,230,445 1,473,025 1,196,023 (43) -- (542) -- (21,995) (797) (154) -- (29,773) (238,705) (1,075,463) (722,814) (2,092,128) (214,649) (299,540) (136,254) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 381,783 77,075 283,122 295,991 17,183,579 8,253,409 1,459,019 1,059,769 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 507,947 95,467 (380,832) 2,022,154 18,248,741 8,547,590 1,488,681 1,306,575 538,656 443,189 13,305,490 11,283,336 11,911,372 3,363,782 2,265,770 959,195 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 1,046,603 $ 538,656 $ 12,924,658 $ 13,305,490 $ 30,160,113 $ 11,911,372 $ 3,754,451 $ 2,265,770 ============ ============ ============ ============ ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements. 77 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MSF LEHMAN BROTHERS MSF HARRIS OAKMARK MSF MORGAN STANLEY AGGREGATE BOND INDEX LARGE-CAP VALUE EAFE INDEX SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ 162,454 $ 129,015 $ (37,985) $ (32,638) $ 99,702 $ 33,345 Net realized gains (losses)...... (6,457) (43,775) 390,087 211,588 1,449,110 186,350 Change in unrealized appreciation (depreciation) on investments.. 152,003 33,771 (692,362) 695,429 (207,275) 2,136,117 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations................ 308,000 119,011 (340,260) 874,379 1,341,537 2,355,812 ------------ ------------ ------------ ------------ ------------ ------------ CONTRACT TRANSACTIONS: Payments received from contract owners........... 668,220 -- 1,013,362 -- 2,472,875 -- Net transfers (including fixed account)................. 1,145,624 875,020 40,422 723,588 1,914,186 3,352,401 Contract charges................. (310) -- (397) -- (707) -- Transfers for contract benefits & terminations........ (485,663) (356,252) (765,299) (724,252) (1,454,812) 575,439 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions..... 1,327,871 518,768 288,088 (664) 2,931,542 3,927,840 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................. 1,635,871 637,779 (52,172) 873,715 4,273,079 6,283,652 NET ASSETS: Beginning of period.............. 4,610,137 3,972,358 6,357,636 5,483,921 14,411,542 8,127,890 ------------ ------------ ------------ ------------ ------------ ------------ End of period.................... $ 6,246,008 $ 4,610,137 $ 6,305,464 $ 6,357,636 $ 18,684,621 $ 14,411,542 ============ ============ ============ ============ ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 78
MSF METLIFE MSF HARRIS OAKMARK MSF MFS TOTAL RETURN MID-CAP STOCK INDEX MSF DAVIS VENTURE VALUE FOCUSED VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- --------------------------- --------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- ---- ---- $ 110,001 $ 63,480 $ (80,366) $ (15,661) $ (6,081,195) $ (5,462,426) $ (4,794,988) $ (6,027,278) 1,449,865 254,665 1,113,940 845,332 22,595,716 14,837,619 64,495,483 53,077,068 (955,552) 1,695,231 (259,259) (33,851) 509,254 62,048,081 (89,503,608) (8,192,739) ------------ ------------ ------------ ------------ ------------- ------------- ------------- ------------- 604,314 2,013,376 774,315 795,820 17,023,775 71,423,274 (29,803,113) 38,857,051 ------------ ------------ ------------ ------------ ------------- ------------- ------------- ------------- 18,558,703 14,394,182 2,166,478 -- 36,845,784 49,163,247 16,537,749 27,393,643 4,902,925 5,280,199 1,135,415 3,271,964 (16,538,380) (12,982,360) (28,581,064) (28,427,591) (13,282) (371) (641) -- (2,197,714) (2,083,064) (1,248,800) (1,320,188) (2,891,760) (588,011) (1,031,278) 24,952 (67,858,900) (47,695,562) (42,905,325) (33,520,553) ------------ ------------ ------------ ------------ ------------- ------------- ------------- ------------- 20,556,586 19,085,999 2,269,974 3,296,916 (49,749,210) (13,597,739) (56,197,440) (35,874,689) ------------ ------------ ------------ ------------ ------------- ------------- ------------- ------------- 21,160,900 21,099,375 3,044,289 4,092,736 (32,725,435) 57,825,535 (86,000,553) 2,982,362 29,037,432 7,938,057 11,992,134 7,899,398 632,598,729 574,773,194 402,048,625 399,066,263 ------------ ------------ ------------ ------------ ------------- ------------- ------------- ------------- $ 50,198,332 $ 29,037,432 $ 15,036,423 $ 11,992,134 $ 599,873,294 $ 632,598,729 $ 316,048,072 $ 402,048,625 ============ ============ ============ ============ ============= ============= ============= =============
The accompanying notes are an integral part of these financial statements. 79 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MSF T. ROWE PRICE MSF JENNISON GROWTH MSF BLACKROCK MONEY MARKET SMALL-CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- ---------------------------- ------------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ (2,659,080) $ (3,050,334) $ 6,785,333 $ 4,796,432 $ (16,671) $ (14,146) Net realized gains (losses)...... 13,041,098 3,937,509 -- -- 67,666 74,264 Change in unrealized appreciation (depreciation) on investments.. 6,006,766 282,830 -- -- 41,398 (43,204) ------------- ------------- -------------- ------------- ------------ ------------ Net increase (decrease) in net assets resulting from operations................ 16,388,784 1,170,005 6,785,333 4,796,432 92,393 16,914 ------------- ------------- -------------- ------------- ------------ ------------ CONTRACT TRANSACTIONS: Payments received from contract owners........... 8,277,681 20,121,883 79,822,231 87,505,454 88,226 18,223 Net transfers (including fixed account)................. (2,611,046) (6,987,982) 159,285,695 46,670,865 107,142 438,151 Contract charges................. (657,263) (650,374) (784,175) (563,703) (46) -- Transfers for contract benefits & terminations........ (21,304,737) (15,626,572) (191,085,821) (74,616,785) (123,964) (290,294) ------------- ------------- -------------- ------------- ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions..... (16,295,365) (3,143,045) 47,237,930 58,995,831 71,358 166,080 ------------- ------------- -------------- ------------- ------------ ------------ Net increase (decrease) in net assets.................. 93,419 (1,973,040) 54,023,263 63,792,263 163,751 182,994 NET ASSETS: Beginning of period ............. 182,151,002 184,124,042 187,577,920 123,785,657 1,115,539 932,545 ------------- ------------- -------------- ------------- ------------ ------------ End of period ................... $ 182,244,421 $ 182,151,002 $ 241,601,183 $ 187,577,920 $ 1,279,290 $ 1,115,539 ============= ============= ============== ============= ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 80
MSF WESTERN ASSET MANAGEMENT MSF OPPENHEIMER MSF METLIFE MSF METLIFE U.S. GOVERNMENT GLOBAL EQUITY AGGRESSIVE ALLOCATION CONSERVATIVE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------- ------------------------- ------------------------- ------------------------- 2007 2006 2007 2006 (B) 2007 2006 (B) 2007 2006 (B) ---- ---- ---- -------- ---- -------- ---- -------- $ 224,217 $ 2,750 $ (59,550) $ (17,646) $ (30,845) $ (10,494) $ (41,865) $ (16,483) 361,346 (2,680) 153,158 (2,193) 41,290 433 9,864 400 305,583 497,136 39,076 315,865 (55,561) 82,120 117,468 85,892 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 891,146 497,206 132,684 296,026 (45,116) 72,059 85,467 69,809 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 17,013,754 16,388,899 6,101,038 3,327,901 1,285,240 621,986 194,853 720,743 8,882,987 1,676,206 420,568 143,091 (77,888) 643,257 372,838 1,303,300 (71,101) (30,329) (1,005) -- (4,448) (250) (12,657) -- (6,114,274) (533,342) (357,753) (75,516) (22,002) (69,363) (25,797) (5,707) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 19,711,366 17,501,434 6,162,848 3,395,476 1,180,902 1,195,630 529,237 2,018,336 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 20,602,512 17,998,640 6,295,532 3,691,502 1,135,786 1,267,689 614,704 2,088,145 24,039,423 6,040,783 3,691,502 -- 1,267,689 -- 2,088,145 -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 44,641,935 $ 24,039,423 $ 9,987,034 $ 3,691,502 $ 2,403,475 $ 1,267,689 $ 2,702,849 $ 2,088,145 ============ ============ ============ ============ ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements. 81 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MSF METLIFE CONSERVATIVE TO MSF METLIFE MODERATE MSF METLIFE MODERATE MODERATE ALLOCATION ALLOCATION TO AGGRESSIVE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- ------------------------- ------------------------- 2007 2006 (B) 2007 2006 (B) 2007 2006 (B) ---- -------- ---- -------- ---- -------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ (68,745) $ (22,648) $ (487,840) $ (137,912) $ (696,111) $ (159,738) Net realized gains (losses)...... 45,678 (332) 232,501 800 106,108 76,718 Change in unrealized appreciation (depreciation) on investments.. 130,975 190,255 582,917 1,089,188 572,440 1,393,842 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations................ 107,908 167,275 327,578 952,076 (17,563) 1,310,822 ------------ ------------ ------------ ------------ ------------ ------------ CONTRACT TRANSACTIONS: Payments received from contract owners........... 1,267,188 1,879,885 17,460,937 9,832,340 26,758,613 12,408,623 Net transfers (including fixed account)................. 168,409 1,026,913 4,567,428 7,587,102 13,288,496 8,988,667 Contract charges................. (19,318) -- (105,905) (5,427) (151,059) (3,923) Transfers for contract benefits & terminations........ (54,591) (13,877) (265,457) (193,558) (763,441) (278,049) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions.......... 1,361,688 2,892,921 21,657,003 17,220,457 39,132,609 21,115,318 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................. 1,469,596 3,060,196 21,984,581 18,172,533 39,115,046 22,426,140 NET ASSETS: Beginning of period.............. 3,060,196 -- 18,172,533 -- 22,426,140 -- ------------ ------------ ------------ ------------ ------------ ------------ End of period.................... $ 4,529,792 $ 3,060,196 $ 40,157,114 $ 18,172,533 $ 61,541,186 $ 22,426,140 ============ ============ ============ ============ ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 82
VAN KAMPEN VAN KAMPEN VAN KAMPEN VAN KAMPEN LIT STRATEGIC GROWTH LIT ENTERPRISE LIT GROWTH AND INCOME LIT COMSTOCK SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------------- ------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 (B) ---- ---- ---- ---- ---- ---- ---- -------- $ (116,330) $ (38,247) $ (1,712) $ (1,520) $ (196,769) $ (105,667) $ (259,426) $ (194,675) 30,962 (22,738) 6,611 (341) 1,024,830 27,205 975,563 10,048 1,037,575 174,791 11,304 10,578 (1,228,849) 1,632,690 (4,879,310) 2,572,822 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 952,207 113,806 16,203 8,717 (400,788) 1,554,228 (4,163,173) 2,388,195 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,066,220 4,483,815 -- -- 30,148,824 18,275,065 48,255,261 30,378,821 683,909 50,379 (13,167) (6,326) 1,186,546 573,912 3,137,892 981,792 (2,622) -- -- -- (4,619) -- (8,782) -- (508,334) (85,673) (35,966) (6,777) (2,213,799) (325,138) (3,231,428) (473,644) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,239,173 4,448,521 (49,133) (13,103) 29,116,952 18,523,839 48,152,943 30,886,969 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 4,191,380 4,562,327 (32,930) (4,386) 28,716,164 20,078,067 43,989,770 33,275,164 4,964,651 402,324 155,927 160,313 20,351,040 272,973 33,275,164 -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 9,156,031 $ 4,964,651 $ 122,997 $ 155,927 $ 49,067,204 $ 20,351,040 $ 77,264,934 $ 33,275,164 ============ ============ ============ ============ ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements. 83 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
FEDERATED FEDERATED HIGH FEDERATED MID-CAP EQUITY INCOME INCOME BOND GROWTH STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ 1,816 $ 723 $ 8,584 $ 9,521 $ (2,361) $ (2,688) Net realized gains (losses)...... 15,960 1,094 (533) (621) 1,990 (2,358) Change in unrealized appreciation (depreciation) on investments.. (14,812) 15,964 (5,482) 2,908 28,811 17,107 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations................ 2,964 17,781 2,569 11,808 28,440 12,061 ------------ ------------ ------------ ------------ ------------ ------------ CONTRACT TRANSACTIONS: Payments received from contract owners........... -- -- -- -- -- -- Net transfers (including fixed account)................. -- -- -- -- (3,759) -- Contract charges................. -- -- -- -- -- -- Transfers for contract benefits & terminations........ (68,733) (7,103) (8,437) (11,757) (74,270) (11,420) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions..... (68,733) (7,103) (8,437) (11,757) (78,029) (11,420) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................. (65,769) 10,678 (5,868) 51 (49,589) 641 NET ASSETS: Beginning of period.............. 96,942 86,264 132,703 132,652 189,442 188,801 ------------ ------------ ------------ ------------ ------------ ------------ End of period.................... $ 31,173 $ 96,942 $ 126,835 $ 132,703 $ 139,853 $ 189,442 ============ ============ ============ ============ ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 84
ALGER AMERICAN T. ROWE PRICE T. ROWE PRICE NEUBERGER GENESIS SMALL CAPITALIZATION GROWTH INTERNATIONAL SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------------- ------------------------- 2007 2006 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- ---- ---- $ (110) $ 25 $(1,062,450) $ (959,074) $ (30,954) $ (27,089) $ 10,041 $ 4,011 3,031 1,826 229,835 (1,425,960) 558,926 325,818 192,846 65,031 (201) (972) 12,066,768 14,338,986 401,349 963,408 (42,947) 140,679 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 2,720 879 11,234,153 11,953,952 929,321 1,262,137 159,940 209,721 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ -- -- 3,592,591 -- 392,116 -- 50,756 -- -- (1,658) (2,859,249) 4,606,713 (491,379) 49,077 (50,069) (2,298) -- -- (8,607) -- (1,679) -- (224) -- (1,865) (7) (7,003,107) (9,524,246) (747,825) (1,104,475) (129,527) (72,700) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ (1,865) (1,665) (6,278,372) (4,917,533) (848,767) (1,055,398) (129,064) (74,998) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 855 (786) 4,955,781 7,036,419 80,554 206,739 30,876 134,723 13,167 13,953 74,178,889 67,142,470 10,405,667 10,198,928 1,334,230 1,199,507 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 14,022 $ 13,167 $ 79,134,670 $ 74,178,889 $ 10,486,221 $ 10,405,667 $ 1,365,106 $ 1,334,230 ============ ============ ============ ============ ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements. 85 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
T. ROWE PRICE JANUS ASPEN AMERICAN FUNDS PRIME RESERVE WORLDWIDE GROWTH GLOBAL SMALL CAPITALIZATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- --------------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ 67,794 $ 54,207 $ (14) $ 78 $ 450,594 $ (143,857) Net realized gains (losses)...... -- -- 259 150 3,464,752 1,526,253 Change in unrealized appreciation (depreciation) on investments.. -- -- 573 1,208 (92,073) 1,795,535 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations................ 67,794 54,207 818 1,436 3,823,273 3,177,931 ------------ ------------ ------------ ------------ ------------ ------------ CONTRACT TRANSACTIONS: Payments received from contract owners................ 6,591 -- -- -- 8,484,152 -- Net transfers (including fixed account)................. 598,123 434,900 -- (650) 5,276,068 7,090,852 Contract charges................. (239) -- -- -- (1,087) -- Transfers for contract benefits & terminations........ (441,013) (357,457) (740) (7) (2,323,409) (1,900,154) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions..... 163,462 77,443 (740) (657) 11,435,724 5,190,698 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................. 231,256 131,650 78 779 15,258,997 8,368,629 NET ASSETS: Beginning of period.............. 1,519,155 1,387,505 9,854 9,075 19,777,453 11,408,824 ------------ ------------ ------------ ------------ ------------ ------------ End of period.................... $ 1,750,411 $ 1,519,155 $ 9,932 $ 9,854 $ 35,036,450 $ 19,777,453 ============ ============ ============ ============ ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 86
AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GROWTH GROWTH-INCOME GLOBAL GROWTH BOND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ------------------------- ------------------------- -------------- 2007 2006 2007 2006 2007 2006 2007 (D) ---- ---- ---- ---- ---- ---- -------- $ (1,081,107) $ (214,057) $ 365,154 $ 344,585 $ 1,046,183 $ (130,902) $ 218,036 12,136,447 802,462 4,125,017 1,317,496 2,396,791 21,730 799 2,531,680 5,978,016 (3,416,856) 4,796,649 3,316,954 3,047,976 (187,750) ------------- ------------ ------------ ------------ ------------ ------------ ------------ 13,587,020 6,566,421 1,073,315 6,458,730 6,759,928 2,938,804 31,085 ------------- ------------ ------------ ------------ ------------ ------------ ------------ 124,005,411 64,725,262 78,043,836 44,564,847 62,510,143 28,970,181 6,136,418 10,465,902 12,242,141 9,306,823 6,067,279 6,440,655 2,490,400 493,134 (130,513) (4,507) (85,085) (2,067) (67,412) (2,267) -- (13,668,271) (2,766,354) (8,458,885) (1,308,070) (5,336,101) (329,909) (20,696) ------------- ------------ ------------ ------------ ------------ ------------ ------------ 120,672,529 74,196,542 78,806,689 49,321,989 63,547,285 31,128,405 6,608,856 ------------- ------------ ------------ ------------ ------------ ------------ ------------ 134,259,549 80,762,963 79,880,004 55,780,719 70,307,213 34,067,209 6,639,941 111,503,370 30,740,407 76,344,065 20,563,346 34,540,668 473,459 -- ------------- ------------ ------------ ------------ ------------ ------------ ------------ $ 245,762,919 $111,503,370 $156,224,069 $ 76,344,065 $104,847,881 $ 34,540,668 $ 6,639,941 ============= ============ ============ ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements. 87 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
ALLIANCEBERNSTEIN FTVIPT FRANKLIN TEMPLETON FTVIPT FRANKLIN LARGE CAP GROWTH DEVELOPING MARKETS MUTUAL SHARES SECURITIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------------- 2007 2006 (B) 2007 2006 2007 2006 ---- -------- ---- ---- ---- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ (14,661) $ (4,173) $ 54,342 $ (29,355) $ (128,578) $ (66,066) Net realized gains (losses)...... 38,484 (6,276) 1,645,982 18,839 1,812,038 361,130 Change in unrealized appreciation (depreciation) on investments.. 80,891 37,951 2,389,109 1,431,847 (2,198,007) 1,852,158 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations................ 104,714 27,502 4,089,433 1,421,331 (514,547) 2,147,222 ------------ ------------ ------------ ------------ ------------ ------------ CONTRACT TRANSACTIONS: Payments received from contract owners........... 343,379 700,339 12,540,086 8,751,030 41,583,406 27,901,375 Net transfers (including fixed account)................. 46,053 (53,927) 660,715 873,396 3,725,554 (402,278) Contract charges................. (223) -- (42,254) (734) (6,385) -- Transfers for contract benefits & terminations........ (78,344) (8,257) (2,387,630) (96,543) (2,926,018) (333,114) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions..... 310,865 638,155 10,770,917 9,527,149 42,376,557 27,165,983 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................. 415,579 665,657 14,860,350 10,948,480 41,862,010 29,313,205 NET ASSETS: Beginning of period.............. 665,657 -- 11,178,712 230,232 29,530,718 217,513 ------------ ------------ ------------ ------------ ------------ ------------ End of period.................... $ 1,081,236 $ 665,657 $ 26,039,062 $ 11,178,712 $ 71,392,728 $ 29,530,718 ============ ============ ============ ============ ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and value. The accompanying notes are an integral part of these financial statements. 88
FTVIPT FRANKLIN FTVIPT FRANKLIN TEMPLETON FOREIGN FTVIPT FRANKLIN TEMPLETON GROWTH FTVIPT FRANKLIN TEMPLETON GLOBAL SECURITIES SECURITIES INCOME SECURITIES INCOME SECURITIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------- -------------------------------- ------------------------- ----------------- 2007 2006 2007 2006 (B) 2007 2006 2007 (D) ---- ---- ---- -------- ---- ---- -------- $ 2,587 $ (53,048) $ (89,613) $ (30,431) $ 911,949 $ 80,144 $ (11,671) 1,945,321 95,415 1,219,928 152,923 500,496 40,354 248 2,747,346 2,343,303 (1,451,628) 1,109,922 (1,585,931) 1,577,766 76,020 ------------ ------------ ------------ ------------ ------------ ------------ ------------ 4,695,254 2,385,670 (321,313) 1,232,414 (173,486) 1,698,264 64,597 ------------ ------------ ------------ ------------ ------------ ------------ ------------ 31,277,528 19,919,072 23,561,019 13,678,501 54,696,663 24,737,270 3,828,978 892,948 1,316,677 1,221,316 417,495 7,988,180 2,534,449 198,065 (80,942) (2,601) (4,615) -- (20,633) (400) -- (4,423,865) (294,760) (1,543,001) (145,451) (2,792,326) (299,688) (10,769) ------------ ------------ ------------ ------------ ------------ ------------ ------------ 27,665,669 20,938,388 23,234,719 13,950,545 59,871,884 26,971,631 4,016,274 ------------ ------------ ------------ ------------ ------------ ------------ ------------ 32,360,923 23,324,058 22,913,406 15,182,959 59,698,398 28,669,895 4,080,871 24,137,809 813,751 15,182,959 -- 28,820,820 150,925 -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 56,498,732 $ 24,137,809 $ 38,096,365 $ 15,182,959 $ 88,519,218 $ 28,820,820 $ 4,080,871 ============ ============ ============ ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements. 89 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
FTVIPT FRANKLIN TEMPLETON SMALL CAP VAN KAMPEN UIF VAN KAMPEN UIF VALUE SECURITIES EQUITY AND INCOME U.S. REAL ESTATE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------------- -------------------------- 2007 (D) 2007 2006 (B) 2007 2006 (B) -------- ---- -------- ---- -------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ (7,256) $ 538,434 $ (145,305) $ 297,458 $ (65,432) Net realized gains (losses)...... (2,830) 2,896,435 526,920 3,779,804 490,300 Change in unrealized appreciation (depreciation) on investments.. (107,802) (3,278,237) 3,570,817 (16,191,487) 2,753,527 ------------ ------------ ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations................ (117,888) 156,632 3,952,432 (12,114,225) 3,178,395 ------------ ------------ ------------ ------------- ------------ CONTRACT TRANSACTIONS: Payments received from contract owners........... 2,233,558 98,691,170 62,805,483 40,976,775 24,398,559 Net transfers (including fixed account)................. 98,702 6,568,747 2,490,336 (1,236,489) 516,437 Contract charges................. -- (15,080) -- (7,560) -- Transfers for contract benefits & terminations........ (5,885) (7,673,247) (871,675) (2,516,185) (287,182) ------------ ------------ ------------ ------------- ------------ Net increase (decrease) in net assets resulting from contract transactions..... 2,326,375 97,571,590 64,424,144 37,216,541 24,627,814 ------------ ------------ ------------ ------------- ------------ Net increase (decrease) in net assets.................. 2,208,487 97,728,222 68,376,576 25,102,316 27,806,209 NET ASSETS: Beginning of period.............. -- 68,376,576 -- 27,806,209 -- ------------ ------------ ------------ ------------- ------------ End of period.................... $ 2,208,487 $166,104,798 $ 68,376,576 $ 52,908,525 $ 27,806,209 ============ ============ ============ ============= ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 90
VAN KAMPEN UIF U.S. MID CAP VALUE PIONEER VCT MID-CAP VALUE LMPVET SMALL CAP GROWTH LMPVET INVESTORS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------ ------------------------- ------------------------- ------------------------- 2007 (D) 2007 2006 (B) 2007 2006 2007 2006 -------- ---- -------- ---- ---- ---- ---- $ (6,389) $ (188,314) $ (53,183) $ (120,139) $ (36,294) $ (11,812) $ 10,966 (1,188) 1,586,469 743,218 718,029 210,763 216,616 56,270 (47,921) (1,953,012) (121,869) (170,870) 50,621 (220,243) 104,591 ------------ ------------ ------------ ------------ ------------ ------------ ------------ (55,498) (554,857) 568,166 427,020 225,090 (15,439) 171,827 ------------ ------------ ------------ ------------ ------------ ------------ ------------ 2,680,461 17,737,711 7,594,099 5,972,017 3,790,841 1,316,991 1,941,999 212,273 2,118,162 147,985 657,704 280,041 1,683,578 (78,230) -- (3,033) -- (9,424) (512) (8,601) (432) (3,567) (788,256) (91,193) (425,523) (199,957) (404,812) (3,310) ------------ ------------ ------------ ------------ ------------ ------------ ------------ 2,889,167 19,064,584 7,650,891 6,194,774 3,870,413 2,587,156 1,860,027 ------------ ------------ ------------ ------------ ------------ ------------ ------------ 2,833,669 18,509,727 8,219,057 6,621,794 4,095,503 2,571,717 2,031,854 -- 8,219,057 -- 4,282,564 187,061 2,127,448 95,594 ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 2,833,669 $ 26,728,784 $ 8,219,057 $ 10,904,358 $ 4,282,564 $ 4,699,165 $ 2,127,448 ============ ============ ============ ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements. 91 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
LMPV CAPITAL AND INCOME LMPVET EQUITY INDEX LMPVET FUNDAMENTAL VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ------------------------- ------------------------- 2007 (A) 2006 (B) 2007 2006 2007 2006 -------- -------- ---- ---- ---- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ 67,778 $ 403,346 $ (438,400) $ 185,382 $ (56,951) $ 391,974 Net realized gains (losses)...... 3,581,347 214,912 3,406,118 544,370 4,041,837 1,571,389 Change in unrealized appreciation (depreciation) on investments.. (1,315,359) 1,315,359 (2,264,449) 2,118,774 (5,252,831) 1,339,918 ------------- ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations................ 2,333,766 1,933,617 703,269 2,848,526 (1,267,945) 3,303,281 ------------- ------------ ------------ ------------ ------------ ------------ CONTRACT TRANSACTIONS: Payments received from contract owners........... 12,057,321 33,268,187 28,958,701 38,549,837 43,728,640 38,965,438 Net transfers (including fixed account)................. (50,008,676) 1,226,566 124,568 12,703 2,751,442 1,648,961 Contract charges................. (828) (10,688) (100) (16,660) (205) Transfers for contract benefits & terminations........ (440,774) (369,179) (4,690,330) (398,978) (4,151,502) (532,519) ------------- ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions..... (38,392,957) 34,125,574 24,382,251 38,163,462 42,311,920 40,081,675 ------------- ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................. (36,059,191) 36,059,191 25,085,520 41,011,988 41,043,975 43,384,956 NET ASSETS: Beginning of period.............. 36,059,191 -- 41,031,761 19,773 43,419,332 34,376 ------------- ------------ ------------ ------------ ------------ ------------ End of period.................... $ -- $ 36,059,191 $ 66,117,281 $ 41,031,761 $ 84,463,307 $ 43,419,332 ============= ============ ============ ============ ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 92
LMPVET LMPVET LMPV LMPVET APPRECIATION AGGRESSIVE GROWTH LARGE CAP GROWTH LARGE CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------------- ------------------------- 2007 2006 2007 2006 2007 2006 2007 (A) 2006 (B) ---- ---- ---- ---- ---- ---- -------- -------- $ (170,291) $ 161,617 $(1,764,476) $ (511,406) $ (145,514) $ (43,938) $ (1,202) $ 6,561 6,764,065 1,041,811 778,104 66,693 135,272 (5,397) 148,950 24,811 (2,893,138) 1,524,593 (263,742) 3,609,913 250,277 427,524 (68,118) 68,118 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 3,700,636 2,728,021 (1,250,114) 3,165,200 240,035 378,189 79,630 99,490 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 38,382,840 34,554,298 56,918,833 67,434,415 4,327,458 4,824,045 454,694 939,173 7,759,071 1,439,912 5,338,346 4,238,724 610,270 617,642 (1,673,614) 142,275 (24,224) (145) (61,018) (1,100) (17,705) (829) (19) -- (4,532,695) (557,259) (6,928,890) (1,094,921) (1,184,051) (75,136) (27,026) (14,603) ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 41,584,992 35,436,806 55,267,271 70,577,118 3,735,972 5,365,722 (1,245,965) 1,066,845 ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ 45,285,628 38,164,827 54,017,157 73,742,318 3,976,007 5,743,911 (1,166,335) 1,166,335 38,211,834 47,007 73,942,504 200,186 5,945,005 201,094 1,166,335 -- ------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------ $ 83,497,462 $ 38,211,834 $127,959,661 $ 73,942,504 $ 9,921,012 $ 5,945,005 $ -- $ 1,166,335 ============ ============ ============ ============ ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements. 93 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
LMPVET LMPVET LMPVET MULTIPLE DISCIPLINE SOCIAL AWARENESS CAPITAL AND INCOME SUB-ACCOUNT-LARGE CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT (^) AND VALUE ------------------------- ------------------------- ---------------------------- 2007 2006 (B) 2007 2006 2007 (E) 2006 ---- -------- ---- ---- -------- ---- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ 798 $ 79 $ 158,572 $ 12,380 $ (16,031) $ (376) Net realized gains (losses)...... 97,920 (1,489) 9,551,295 96,700 94,561 32,651 Change in unrealized appreciation (depreciation) on investments.. (63,896) 15,049 (9,641,183) 73,004 (64,765) 65,715 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations................ 34,822 13,639 68,684 182,084 13,765 97,990 ------------ ------------ ------------ ------------ ------------ ------------ CONTRACT TRANSACTIONS: Payments received from contract owners........... 212,162 273,825 7,614,688 1,978,465 1,144,281 977,351 Net transfers (including fixed account)................. 51,439 (4,841) 52,225,304 78,049 (2,304,376) 133,057 Contract charges................. (65) -- (10,082) (173) (2,312) (157) Transfers for contract benefits & terminations........ (13,902) (1,114) (2,193,424) (21,076) (80,243) (10,287) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions..... 249,634 267,870 57,636,486 2,035,265 (1,242,650) 1,099,964 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................. 284,456 281,509 57,705,170 2,217,349 (1,228,885) 1,197,954 NET ASSETS: Beginning of period.............. 281,509 -- 2,252,417 35,068 1,228,885 30,931 ------------ ------------ ------------ ------------ ------------ ------------ End of period.................... $ 565,965 $ 281,509 $ 59,957,587 $ 2,252,417 $ -- $ 1,228,885 ============ ============ ============ ============ ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 94
LMPVET LMPVET LMPV PREMIER SELECTIONS LMPVET CAPITAL GLOBAL EQUITY ALL CAP GROWTH DIVIDEND STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ------------------------- ------------------------- ------------------------- 2007 2006 2007 2006 2007 (A) 2006 (B) 2007 2006 ---- ---- ---- ---- -------- -------- ---- ---- $ (93,519) $ (29,545) $ (77,834) $ 4,653 $ (1,287) $ (1,127) $ 68,634 $ 44,089 556,043 289,750 470,179 142,762 23,066 6,785 31,060 6,939 (598,669) 133,286 (171,007) 317,859 (1,057) 1,057 47,810 133,672 ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------ (136,145) 393,491 221,338 465,274 20,722 6,715 147,504 184,700 ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------ 5,276,317 5,058,801 1,518,943 2,903,203 147,868 205,714 4,756,217 2,733,736 140,677 (804,831) 1,056,116 1,729,609 (376,920) 801 612,655 133,815 (16,135) (618) (16,770) (837) (3) -- (5,197) (127) (1,011,067) (79,252) (263,668) (66,937) (2,885) (2,012) (299,906) (51,864) ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------ 4,389,792 4,174,100 2,294,621 4,565,038 (231,940) 204,503 5,063,769 2,815,560 ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------ 4,253,647 4,567,591 2,515,959 5,030,312 (211,218) 211,218 5,211,273 3,000,260 4,710,142 142,551 5,189,364 159,052 211,218 -- 3,032,256 31,996 ------------ ------------- ------------ ------------ ------------ ------------ ------------ ------------ $ 8,963,789 $ 4,710,142 $ 7,705,323 $ 5,189,364 $ -- $ 211,218 $ 8,243,529 $ 3,032,256 ============ ============= ============ ============ ============ ============ ============ ============
The accompanying notes are an integral part of these financial statements. 95 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONCLUDED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
LMPV LMPVET LIFESTYLE LMPVET LIFESTYLE GROWTH AND INCOME ALLOCATION 50% ALLOCATION 70% SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------------- 2007 (A) 2006 (B) 2007 2006 (B) 2007 2006 (B) -------- -------- ---- -------- ---- -------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ (17,015) $ 6,842 $ 231,911 $ 59,980 $ 65,129 $ 4,185 Net realized gains (losses)...... 468,375 (664) 133,323 (350) 49,152 7,035 Change in unrealized appreciation (depreciation) on investments.. (231,080) 231,080 (374,438) 53,480 (194,902) 11,186 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations................ 220,280 237,258 (9,204) 113,110 (80,621) 22,406 ------------ ------------ ------------ ------------ ------------ ------------ CONTRACT TRANSACTIONS: Payments received from contract owners........... 1,086,373 3,473,328 6,331,338 2,997,536 2,776,682 408,682 Net transfers (including fixed account)................. (4,816,766) (48,720) 587,867 (264,986) 711,199 (89,753) Contract charges................. (68) -- (432) -- (274) -- Transfers for contract benefits & terminations........ (97,839) (53,846) (295,310) (50,664) (74,936) (4,435) ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from contract transactions..... (3,828,300) 3,370,762 6,623,463 2,681,886 3,412,671 314,494 ------------ ------------ ------------ ------------ ------------ ------------ Net increase (decrease) in net assets.................. (3,608,020) 3,608,020 6,614,259 2,794,996 3,332,050 336,900 NET ASSETS: Beginning of period.............. 3,608,020 -- 2,794,996 -- 336,900 -- ------------ ------------ ------------ ------------ ------------ ------------ End of period.................... $ -- $ 3,608,020 $ 9,409,255 $ 2,794,996 $ 3,668,950 $ 336,900 ============ ============ ============ ============ ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period May 1, 2006 to December 31, 2006. (c)For the period November 12, 2007 to December 31, 2007. (d)For the period June 1, 2007 to December 31, 2007. (e)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. The accompanying notes are an integral part of these financial statements. 96
LMPVET LIFESTYLE LMPVIT LMPVIT LMPVIT ALLOCATION 85% ADJUSTABLE RATE INCOME GLOBAL HIGH YIELD BOND MONEY MARKET SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------------- --------------------------- 2007 2006 (B) 2007 2006 2007 2006 2007 2006 ---- -------- ---- ---- ---- ---- ---- ---- $ 196,021 $ 1,210 $ 105,856 $ 87,016 $ 2,498,979 $ 866,678 $ 1,033,839 $ 266,697 104,353 543 (3,665) 2,484 192,209 98,978 -- -- (650,821) 14,996 (117,934) (66,284) (3,622,401) (242,508) -- -- ------------ ------------ ------------ ------------ ------------ ------------ ------------- ------------- (350,447) 16,749 (15,743) 23,216 (931,213) 723,148 1,033,839 266,697 ------------ ------------ ------------ ------------ ------------ ------------ ------------- ------------- 15,233,223 332,475 1,024,273 2,215,482 24,720,376 15,720,988 56,919,433 34,264,007 1,501,702 2,123 188,818 6,815 1,958,236 726,314 (24,059,265) (11,258,204) (253) -- (1,053) (53) (13,699) (141) (27,274) (329) (123,496) (30,349) (237,909) (28,450) (1,989,860) (227,181) (9,895,971) (2,785,622) ------------ ------------ ------------ ------------ ------------ ------------ ------------- ------------- 16,611,176 304,249 974,129 2,193,794 24,675,053 16,219,980 22,936,923 20,219,852 ------------ ------------ ------------ ------------ ------------ ------------ ------------- ------------- 16,260,729 320,998 958,386 2,217,010 23,743,840 16,943,128 23,970,762 20,486,549 320,998 -- 2,220,514 3,504 16,994,644 51,516 20,676,751 190,202 ------------ ------------ ------------ ------------ ------------ ------------ ------------- ------------- $ 16,581,727 $ 320,998 $ 3,178,900 $ 2,220,514 $ 40,738,484 $ 16,994,644 $ 44,647,513 $ 20,676,751 ============ ============ ============ ============ ============ ============ ============= =============
The accompanying notes are an integral part of these financial statements. 97 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS 1. ORGANIZATION MetLife Investors USA Separate Account A (the "Separate Account"), a separate account of MetLife Investors USA Insurance Company (the "Company"), was established by the Company's Board of Directors on May 29, 1980 to support operations of the Company with respect to certain variable annuity contracts (the "Contracts"). The Company is an indirect wholly-owned subsidiary of MetLife Inc., a Delaware corporation. The Separate Account is registered as a unit investment trust under the Investment Company Act of 1940, as amended, and exists in accordance with the regulations of the Delaware Department of Insurance. The Separate Account is divided into Sub-Accounts, each of which is treated as an individual accounting entity for financial reporting purposes. Each Sub-Account invests in shares of the corresponding portfolio, series, or fund (with the same name) of registered investment management companies (the "Trusts") which are presented below: Met Investors Series Trust ("MIST") AIM Variable Insurance Funds ("AIM V.I.") MFS Variable Insurance Trust ("MFS") Oppenheimer Variable Account Funds ("Oppenheimer") Fidelity Variable Insurance Products ("Fidelity VIP") DWS Variable Series II ("DWS") Metropolitan Series Fund, Inc. ("MSF") Van Kampen Life Investment Trust ("Van Kampen LIT") Federated Insurance Series ("Federated") Neuberger Berman Mutual Funds ("Neuberger") Alger Variable Insurance Funds ("Alger") T. Rowe Price Funds ("T. Rowe Price") Janus Aspen Series ("Janus Aspen") American Funds Insurance Series ("American Funds") AllianceBernstein Variable Products Series Fund, Inc. ("AllianceBernstein") Franklin Templeton Variable Insurance Products Trust ("FTVIPT") The Universal Institutional Funds, Inc. ("Van Kampen UIF") Pioneer Variable Contracts Trust ("Pioneer VCT") Legg Mason Partners Variable Equity Trust ("LMPVET") Legg Mason Partners Variable Income Trust ("LMPVIT") The assets of the Separate Account are registered in the name of the Company. Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from the Company's other assets and liabilities. The portion of the Separate Account's assets applicable to the Contracts is not chargeable with liabilities arising out of any other business the Company may conduct. Purchase payments applied to the Separate Account are invested in one or more Sub-Accounts in accordance with the selection made by the contract owner. The following Sub-Accounts were available for investment as of December 31, 2007: MIST Lord Abbett Growth and Income Sub-Account** MIST Lord Abbett Bond Debenture Sub-Account** MIST Van Kampen Mid-Cap Growth Sub-Account MIST Lord Abbett Mid-Cap Value Sub-Account MIST Lazard Mid-Cap Sub-Account MIST Met/AIM Small-Cap Growth Sub-Account** MIST Harris Oakmark International Sub-Account** MIST Third Avenue Small-Cap Value Sub-Account** MIST Oppenheimer Capital Appreciation Sub-Account** 98 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 1. ORGANIZATION -- (CONTINUED) MIST Legg Mason Partners Aggressive Growth Sub-Account MIST PIMCO Total Return Sub-Account MIST RCM Technology Sub-Account** MIST PIMCO Inflation Protected Bond Sub-Account MIST T. Rowe Price Mid-Cap Growth Sub-Account MIST MFS Research International Sub-Account MIST Neuberger Berman Real Estate Sub-Account MIST Turner Mid-Cap Growth Sub-Account MIST Goldman Sachs Mid-Cap Value Sub-Account MIST MetLife Defensive Strategy Sub-Account MIST MetLife Moderate Strategy Sub-Account MIST MetLife Balanced Strategy Sub-Account MIST MetLife Growth Strategy Sub-Account MIST MetLife Aggressive Strategy Sub-Account MIST Van Kampen Comstock Sub-Account MIST Legg Mason Value Equity Sub-Account MIST MFS Emerging Markets Equity Sub-Account MIST Loomis Sayles Global Markets Sub-Account MIST Met/AIM Capital Appreciation Sub-Account MIST Janus Forty Sub-Account MIST MFS Value Sub-Account MIST Dreman Small Cap Value Sub-Account MIST Pioneer Fund Sub-Account MIST Pioneer Strategic Income Sub-Account MIST BlackRock Large-Cap Core Sub-Account MIST BlackRock High Yield Sub-Account MIST Rainier Large Cap Equity Sub-Account AIM V.I. Core Equity Sub-Account AIM V.I. Capital Appreciation Sub-Account AIM V.I. International Growth Sub-Account AIM V.I. Basic Balanced Sub-Account AIM V.I. Global Real Estate Sub-Account MFS Research Sub-Account MFS Investors Trust Sub-Account MFS New Discovery Sub-Account Oppenheimer Main Street Fund/VA Sub-Account Oppenheimer Bond Sub-Account Oppenheimer Strategic Bond Sub-Account Oppenheimer Main Street Small-Cap Sub-Account Oppenheimer Money Sub-Account Fidelity VIP Asset Manager Sub-Account Fidelity VIP Growth Sub-Account Fidelity VIP Contrafund Sub-Account** Fidelity VIP Overseas Sub-Account Fidelity VIP Equity-Income Sub-Account Fidelity VIP Index 500 Sub-Account Fidelity VIP Money Market Sub-Account Fidelity VIP Mid-Cap Sub-Account 99 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 1. ORGANIZATION -- (CONTINUED) DWS International Sub-Account MSF FI Mid-Cap Opportunities Sub-Account MSF FI Large Cap Sub-Account MSF FI Value Leaders Sub-Account MSF Russell 2000 Index Sub-Account** MSF FI International Stock Sub-Account MSF MetLife Stock Index Sub-Account** MSF BlackRock Legacy Large-Cap Growth Sub-Account MSF BlackRock Strategic Value Sub-Account MSF BlackRock Bond Income Sub-Account** MSF BlackRock Large-Cap Value Sub-Account MSF Lehman Brothers Aggregate Bond Index Sub-Account MSF Harris Oakmark Large-Cap Value Sub-Account MSF Morgan Stanley EAFE Index Sub-Account MSF MFS Total Return Sub-Account** MSF MetLife Mid-Cap Stock Index Sub-Account MSF Davis Venture Value Sub-Account** MSF Harris Oakmark Focused Value Sub-Account** MSF Jennison Growth Sub-Account MSF BlackRock Money Market Sub-Account** MSF T. Rowe Price Small-Cap Growth Sub-Account MSF Western Asset Management U.S. Government Sub-Account** MSF Oppenheimer Global Equity Sub-Account MSF MetLife Aggressive Allocation Sub-Account MSF MetLife Conservative Allocation Sub-Account MSF MetLife Conservative to Moderate Allocation Sub-Account MSF MetLife Moderate Allocation Sub-Account MSF MetLife Moderate to Aggressive Allocation Sub-Account Van Kampen LIT Strategic Growth Sub-Account Van Kampen LIT Enterprise Sub-Account Van Kampen LIT Growth and Income Sub-Account Van Kampen LIT Comstock Sub-Account Federated Equity Income Sub-Account Federated High Income Bond Sub-Account Federated Mid-Cap Growth Strategy Sub-Account Neuberger Genesis Sub-Account** Alger American Small Capitalization Sub-Account T. Rowe Price Growth Sub-Account T. Rowe Price International Sub-Account T. Rowe Price Prime Reserve Sub-Account Janus Aspen Worldwide Growth Sub-Account American Funds Global Small Capitalization Sub-Account American Funds Growth Sub-Account American Funds Growth-Income Sub-Account American Funds Global Growth Sub-Account American Funds Bond Sub-Account AllianceBernstein Large Cap Growth Sub-Account FTVIPT Templeton Developing Markets Sub-Account 100 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 1. ORGANIZATION -- (CONTINUED) FTVIPT Mutual Shares Securities Sub-Account FTVIPT Templeton Foreign Securities Sub-Account FTVIPT Templeton Growth Securities Sub-Account FTVIPT Income Securities Sub-Account FTVIPT Templeton Global Income Securities Sub-Account FTVIPT Templeton Small Cap Value Securities Sub-Account Van Kampen UIF Equity and Income Sub-Account Van Kampen UIF U.S. Real Estate Sub-Account Van Kampen UIF U.S. Mid Cap Value Sub-Account Pioneer VCT Mid-Cap Value Sub-Account LMPVET Small Cap Growth Sub-Account LMPVET Investors Sub-Account LMPVET Equity Index Sub-Account LMPVET Fundamental Value Sub-Account LMPVET Appreciation Sub-Account LMPVET Aggressive Growth Sub-Account LMPVET Large Cap Growth Sub-Account LMPVET Social Awareness Sub-Account LMPVET Capital and Income Sub-Account LMPVET Capital Sub-Account LMPVET Global Equity Sub-Account LMPVET Dividend Strategy Sub-Account LMPVET Lifestyle Allocation 50% Sub-Account LMPVET Lifestyle Allocation 70% Sub-Account LMPVET Lifestyle Allocation 85% Sub-Account LMPVIT Adjustable Rate Income Sub-Account LMPVIT Global High Yield Bond Sub-Account LMPVIT Money Market Sub-Account **This Sub-Account invests in two or more share classes within the underlying portfolio, series, or fund of the Trusts that may assess 12b-1 fees. The following Sub-Accounts ceased operations during the year ended December 31, 2007: MIST Met/Putnam Capital Opportunities Sub-Account MIST Pioneer Mid-Cap Value Sub-Account Putnam VT Small Cap Value Sub-Account LMPV Capital and Income Sub-Account LMPV Large Cap Value Sub-Account LMPV Multiple Discipline Sub-Account-Large Cap Growth and Value LMPV Premier Selections All Cap Growth Sub-Account LMPV Growth and Income Sub-Account 101 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 1. ORGANIZATION -- (CONTINUED) The operations of the Sub-Accounts were affected by the following changes that occurred during the year ended December 31, 2007: NAME CHANGES: Old Name New Name -------- -------- Legg Mason Partners Variable Legg Mason Partners Variable Lifestyle Balanced Portfolio Lifestyle Allocation 50% Legg Mason Partners Variable Legg Mason Partners Variable Lifestyle Growth Portfolio Lifestyle Allocation 70% Legg Mason Partners Variable Legg Mason Partners Variable Lifestyle High Growth Portfolio Lifestyle Allocation 85% Legg Mason Partners Variable Social Legg Mason Partners Variable Social Awareness Stock Portfolio Awareness Portfolio Legg Mason Partners Variable Multiple Legg Mason Partners Variable Capital Discipline Portfolio--Balanced All and Income Portfolio Cap Growth and Value Janus Capital Appreciation Portfolio Janus Forty Portfolio RCM Global Technology Portfolio RCM Technology Portfolio Legg Mason Aggressive Growth Portfolio Legg Mason Partners Aggressive Growth Portfolio Legg Mason Partners Variable Multiple Legg Mason Partners Variable Capital Discipline Portfolio--All Cap Portfolio Growth and Value Legg Mason Partners Variable Multiple Legg Mason Partners Variable Global Discipline Portfolio--Global All Equity Portfolio Cap Growth and Value MERGERS: Old Name New Name -------- -------- Pioneer Mid-Cap Value Portfolio Lazard Mid Cap Portfolio Met/Putnam Capital Opportunities Lazard Mid Cap Portfolio Portfolio Legg Mason Partners Variable Large Legg Mason Partners Variable Cap Value Portfolio Investors Portfolio Legg Mason Partners Variable Growth Legg Mason Partners Variable and Income Portfolio Appreciation Portfolio Legg Mason Partners Variable Premier Legg Mason Partners Variable Selections All Cap Growth Portfolio Aggressive Growth Portfolio Legg Mason Partners Variable Capital Legg Mason Partners Variable Multiple and Income Portfolio Discipline Portfolio--Balanced All Cap Growth and Value Legg Mason Partners Variable Multiple Legg Mason Partners Variable Discipline Portfolio--Large Cap Appreciation Portfolio Growth and Value SUBSTITUTIONS: Old Name New Name -------- -------- Putnam VT Small Cap Value Fund Third Avenue Small-Cap Value Portfolio 102 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 1. ORGANIZATION -- (CONCLUDED) This report is prepared for the general information of contract owners and is not an offer of units of the Separate Account or shares of the Separate Account's underlying investments. It should not be used in connection with any offer except in conjunction with the prospectus for the Separate Account products offered by the Company and the prospectus of the underlying portfolio, series, or fund, which collectively contain all the pertinent information, including additional information on charges and expenses. 2. SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING The financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for variable annuity separate accounts registered as unit investment trusts. VALUATION OF INVESTMENTS Investments are reported at fair value and are based on the net asset value per share as determined by the underlying assets of the portfolio, series, or fund of the Trusts, which value their investment securities at fair value. Changes in fair value are recorded in the statement of operations. SECURITY TRANSACTIONS Security transactions are recorded on a trade date basis. Realized gains and losses on the sales of investments are computed on the basis of the identified cost of the investment sold. Income from dividends and realized gain distributions are recorded on the ex-distribution date. FEDERAL INCOME TAXES The operations of the Separate Account form a part of the total operations of the Company and are not taxed separately. The Company is taxed as a life insurance company under the provisions of the Internal Revenue Code ("IRC"). Under the current provisions of the IRC, the Company does not expect to incur federal income taxes on the earnings of the Separate Account to the extent the earnings are credited under the Contracts. Accordingly, no charge is being made currently to the Separate Account for federal income taxes. The Company will periodically review the status of this policy in the event of changes in the tax law. A charge may be made in future years for any federal income taxes that would be attributable to the Contracts. ANNUITY PAYOUTS Net assets allocated to Contracts in the payout period are computed according to industry standard mortality tables. The assumed investment return is 3.0 percent. The mortality risk is fully borne by the Company and may result in additional amounts being transferred into the Separate Account by the Company to cover greater longevity of annuitants than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the Company. PURCHASE PAYMENTS Purchase payments received from contract owners by the Company are credited as accumulation units as of the end of the valuation period in which received, as provided in the prospectus. NET TRANSFERS The contract owner has the opportunity to transfer funds between Sub-Accounts within the Separate Account or the fixed account, which is an investment option in the Company's general account. 103 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 2. SIGNIFICANT ACCOUNTING POLICIES -- (CONCLUDED) USE OF ESTIMATES The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect amounts reported herein. Actual results could differ from these estimates. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENT Effective January 1, 2007, the Company adopted Financial Accounting Standards Board ("FASB") Interpretation ("FIN") No. 48, ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES--AN INTERPRETATION OF FASB STATEMENT NO. 109 ("FIN 48"). FIN 48 clarifies the accounting for uncertainty in income tax recognized in a company's financial statements. FIN 48 requires companies to determine whether it is "more likely than not" that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. It also provides guidance on the recognition, measurement, and classification of income tax uncertainties, along with any related interest and penalties. Previously recorded income tax benefits that no longer meet this standard are required to be charged to earnings in the period that such determination is made. The adoption of FIN 48 had no impact on the financial statements of the Separate Account. FUTURE ADOPTION OF NEW ACCOUNTING PRONOUNCEMENT In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, FAIR VALUE MEASUREMENTS ("SFAS 157"). SFAS 157 defines fair value, establishes a framework for measuring fair value under GAAP and requires enhanced disclosures about fair value measurements. SFAS 157 does not require additional fair value measurements. The pronouncement is effective for fiscal years beginning after November 15, 2007. The guidance in SFAS 157 will be applied prospectively with certain exceptions. The Company believes the adoption of SFAS 157 will have no material impact on the financial statements of the Separate Account. 3. EXPENSES AND RELATED PARTY TRANSACTIONS The following annual Separate Account charges are asset-based charges and assessed through a daily reduction in unit values which are recorded as expenses in the accompanying statement of operations: Mortality and Expense Risk--The mortality risk assumed by the Company is the risk that those insured may die sooner than anticipated and therefore, the Company will pay an aggregate amount of death benefits greater than anticipated. The expense risk assumed is where expenses incurred in issuing and administering the Contracts will exceed the amounts realized from the administrative charges assessed against the Contracts. In addition, the charge compensates the Company for the risk that the investor may live longer than estimated and the Company would be obligated to pay more in income payments than anticipated. Administrative--The Company has responsibility for the administration of the Contracts and the Separate Account. Generally, the administrative charge is related to the maintenance, including distribution of each contract and the Separate Account. Optional Death Benefit Rider--For an additional charge, the total death benefit payable may be increased based on the earnings in the Contracts. Distribution Expense--The risk that surrender charges will be insufficient to cover the actual costs of distribution which includes commissions, fees, registration costs, direct and indirect selling expenses. Guaranteed Minimum Accumulation Benefit--For an additional charge, the Company will guarantee that the contract value will not be less than a guaranteed minimum amount at the end of a specified number of years. 104 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 3. EXPENSES AND RELATED PARTY TRANSACTIONS -- (CONCLUDED) The table below represents the range of effective annual rates for each respective charge for the year ended December 31, 2007: Mortality and Expense Risk 0.74% - 1.60% ----------------------------------------------------- Administrative 0.15% - 0.25% ----------------------------------------------------- Optional Death Benefit Rider 0.10% - 0.35% ----------------------------------------------------- Distribution Expense 0.10% ----------------------------------------------------- Guaranteed Minimum Accumulation Benefit 1.50%
The above referenced charges may not necessarily correspond to the costs associated with providing the services or benefits indicated by the designation of the charge or associated with a particular contract. A contract maintenance fee ranging from $30 to $40 is assessed on an annual basis for Contracts with a value of less than $50,000. A transfer fee of $25 may be deducted after twelve transfers are made in a contract year or, if less, 2% of the amount transferred, from the contract value. An administrative charge is also assessed of $21.50 plus $2.50 for each Sub-Account in which the contract owner invests (waived if purchase payments equal or exceed $2,000 in the year, or if the account value is $10,000 or more at year end). In addition, most Contracts impose a surrender charge which ranges from 0% to 9% if the contract is partially or fully surrendered within the specified surrender charge period. A transaction charge of the lesser of $10 or 2% of the surrender is imposed on surrenders as well as $10 for annuitizations. For those contract owners who choose optional living benefit riders, these charges range from .25% to 1.50% of your account value and are charged at each contract anniversary date. These charges are assessed through the redemption of units and are recorded as contract charges in the accompanying statements of changes in net assets. Certain investments in the various portfolios, series or funds of the MIST and MSF Trusts hold shares which are managed by Met Investors Advisory, LLC and MetLife Advisers, LLC, respectively. Both act in the capacity of investment advisor and are indirect affiliates of the Company. 105 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 4. STATEMENT OF INVESTMENTS
FOR THE YEAR ENDED AS OF DECEMBER 31, 2007 DECEMBER 31, 2007 ------------------------- ---------------------------- COST OF PROCEEDS SHARES COST ($) PURCHASES ($) FROM SALES ($) ----------- ------------- ------------- -------------- MIST Lord Abbett Growth and Income Sub-Account........................ 28,591,309 729,691,981 58,073,171 120,161,062 MIST Lord Abbett Bond Debenture Sub-Account........................ 23,037,853 281,500,167 29,080,746 49,364,698 MIST Van Kampen Mid-Cap Growth Sub-Account........................ 2,049,942 22,164,237 17,336,223 1,425,965 MIST Lord Abbett Mid-Cap Value Sub-Account........................ 825,238 17,573,296 10,219,282 1,704,978 MIST Lazard Mid-Cap Sub-Account...... 10,021,125 133,960,752 73,119,275 61,565,371 MIST Met/AIM Small-Cap Growth Sub-Account........................ 12,342,477 154,146,075 29,747,630 43,434,398 MIST Harris Oakmark International Sub-Account........................ 22,485,302 338,277,313 84,417,639 70,613,594 MIST Third Avenue Small-Cap Value Sub-Account........................ 20,182,547 287,714,217 54,629,751 70,235,780 MIST Oppenheimer Capital Appreciation Sub-Account........................ 35,980,261 300,664,303 34,794,114 62,808,729 MIST Legg Mason Partners Aggressive Growth Sub-Account................. 14,041,389 101,718,893 15,328,857 20,200,065 MIST PIMCO Total Return Sub-Account........................ 38,575,919 443,563,417 57,001,843 46,197,910 MIST RCM Technology Sub-Account...... 11,610,500 59,662,492 28,499,116 13,947,211 MIST PIMCO Inflation Protected Bond Sub-Account........................ 23,365,960 246,976,228 21,364,100 36,556,908 MIST T. Rowe Price Mid-Cap Growth Sub-Account........................ 25,056,318 186,169,523 43,254,742 47,996,794 MIST MFS Research International Sub-Account........................ 24,126,780 288,589,166 98,337,849 31,380,555 MIST Neuberger Berman Real Estate Sub-Account........................ 7,185,480 111,090,038 38,396,745 40,186,345 MIST Turner Mid-Cap Growth Sub-Account........................ 4,555,258 55,792,686 21,102,621 11,468,241 MIST Goldman Sachs Mid-Cap Value Sub-Account........................ 10,352,850 134,861,832 39,968,790 25,336,132 MIST MetLife Defensive Strategy Sub-Account........................ 53,369,824 576,135,628 332,086,068 140,114,319 MIST MetLife Moderate Strategy Sub-Account........................ 136,928,930 1,462,161,117 414,314,169 58,194,209 MIST MetLife Balanced Strategy Sub-Account........................ 418,582,414 4,595,184,121 1,229,343,632 52,991,940 MIST MetLife Growth Strategy Sub-Account........................ 490,635,074 5,765,355,000 2,218,759,531 14,739,113 MIST MetLife Aggressive Strategy Sub-Account........................ 48,253,106 545,442,308 85,332,152 85,962,913
106 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 4. STATEMENT OF INVESTMENTS -- (CONTINUED)
FOR THE YEAR ENDED AS OF DECEMBER 31, 2007 DECEMBER 31, 2007 ---------------------- ---------------------------- COST OF PROCEEDS SHARES COST ($) PURCHASES ($) FROM SALES ($) ---------- ----------- ------------- -------------- MIST Van Kampen Comstock Sub-Account....... 5,436,201 61,367,834 24,374,976 9,672,090 MIST Legg Mason Value Equity Sub-Account.............................. 5,522,768 59,650,761 27,188,827 5,535,213 MIST Met/Putnam Capital Opportunities Sub-Account (a).......................... -- -- 489,680 861,258 MIST MFS Emerging Markets Equity Sub-Account.............................. 4,334,916 54,776,847 51,918,067 7,073,446 MIST Loomis Sayles Global Markets Sub-Account.............................. 4,196,265 50,869,729 46,852,089 3,925,637 MIST Met/AIM Capital Appreciation Sub-Account.............................. 193,266 2,269,924 1,386,262 324,502 MIST Janus Forty Sub-Account............... 103,993 7,883,162 6,909,388 360,293 MIST MFS Value Sub-Account................. 1,285,176 18,754,442 13,255,021 478,794 MIST Dreman Small Cap Value Sub-Account.... 848,304 11,595,687 7,545,434 917,092 MIST Pioneer Fund Sub-Account.............. 569,970 8,346,442 5,059,615 349,579 MIST Pioneer Mid-Cap Value Sub-Account (a).......................... -- -- 2,217,510 5,838,404 MIST Pioneer Strategic Income Sub-Account.. 9,797,873 94,692,154 56,816,662 203,205 MIST BlackRock Large-Cap Core Sub-Account.............................. 403,588 4,436,089 6,231,548 3,684,889 MIST BlackRock High Yield Sub-Account...... 904,416 7,641,085 5,838,129 1,275,976 MIST Rainier Large Cap Equity Sub-Account (b).......................... 639,064 6,310,324 6,361,315 52,418 AIM V.I. Core Equity Sub-Account........... 29,514 744,633 22,737 415,787 AIM V.I. Capital Appreciation Sub-Account.. 14,760 375,819 6,483 270,872 AIM V.I. International Growth Sub-Account.. 359,542 11,780,790 11,454,168 467,637 AIM V.I. Basic Balanced Sub-Account........ 57,056 642,593 24,787 329,531 AIM V.I. Global Real Estate Sub-Account (c) 69,766 1,874,606 1,890,506 14,725 MFS Research Sub-Account................... 9,830 160,321 2,403 107,099 MFS Investors Trust Sub-Account............ 5,618 100,353 11,358 63,237 MFS New Discovery Sub-Account.............. 5,977 94,138 27,333 128,383 Oppenheimer Main Street Fund/VA Sub-Account.............................. 9,936 204,089 3,203 81,978 Oppenheimer Bond Sub-Account............... 23,918 260,857 16,427 72,082 Oppenheimer Strategic Bond Sub-Account..... 8,384 40,180 1,725 9,136 Oppenheimer Main Street Small-Cap Sub-Account.............................. 461,077 8,612,810 8,512,214 44,284 Oppenheimer Money Sub-Account.............. 168,182 168,182 9,556 28,800 Fidelity VIP Asset Manager Sub-Account..... 8,634,277 135,789,431 13,289,525 18,523,589 Fidelity VIP Growth Sub-Account............ 5,302,253 200,846,614 4,521,875 31,445,799 Fidelity VIP Contrafund Sub-Account........ 13,529,387 331,353,802 109,004,093 33,363,332 Fidelity VIP Overseas Sub-Account.......... 447,384 8,598,295 1,444,666 2,046,358 Fidelity VIP Equity-Income Sub-Account..... 572,732 13,668,924 1,604,038 4,690,138 Fidelity VIP Index 500 Sub-Account......... 748,767 96,503,505 4,706,345 20,246,969
107 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 4. STATEMENT OF INVESTMENTS -- (CONTINUED)
FOR THE YEAR ENDED AS OF DECEMBER 31, 2007 DECEMBER 31, 2007 ---------------------- ---------------------------- COST OF PROCEEDS SHARES COST ($) PURCHASES ($) FROM SALES ($) ---------- ----------- ------------- -------------- Fidelity VIP Money Market Sub-Account... 38,182,736 38,182,736 8,293,250 5,717,786 Fidelity VIP Mid-Cap Sub-Account........ 1,136,586 38,423,899 25,139,692 215,725 DWS International Sub-Account........... 2,612,460 28,558,835 2,930,729 3,108,540 MSF FI Mid-Cap Opportunities Sub-Account 308,370 5,503,253 1,584,148 731,494 MSF FI Large Cap Sub-Account............ 325,227 4,764,362 3,279,317 666,001 MSF FI Value Leaders Sub-Account........ 23,205 4,650,063 3,264,331 1,124,848 MSF Russell 2000 Index Sub-Account...... 565,295 8,270,287 2,185,600 1,544,247 MSF FI International Stock Sub-Account.. 405,129 6,026,908 3,598,593 538,476 MSF MetLife Stock Index Sub-Account..... 8,260,954 245,611,445 30,894,287 50,399,599 MSF BlackRock Legacy Large-Cap Growth Sub-Account........................... 39,142 953,390 789,577 417,304 MSF BlackRock Strategic Value Sub-Account........................... 851,991 14,628,259 3,008,859 1,293,576 MSF BlackRock Bond Income Sub-Account... 271,427 29,062,204 19,604,919 2,272,217 MSF BlackRock Large-Cap Value Sub-Account........................... 275,864 3,718,002 2,244,255 687,359 MSF Lehman Brothers Aggregate Bond Index Sub-Account........................... 569,376 6,078,528 2,298,944 808,573 MSF Harris Oakmark Large-Cap Value Sub-Account........................... 442,183 6,015,662 1,464,864 1,026,671 MSF Morgan Stanley EAFE Index Sub-Account........................... 1,086,952 15,408,801 6,261,654 3,053,519 MSF MFS Total Return Sub-Account........ 326,543 49,190,828 24,083,781 2,153,852 MSF MetLife Mid-Cap Stock Index Sub-Account........................... 1,000,429 14,336,073 5,096,710 2,307,162 MSF Davis Venture Value Sub-Account..... 16,546,275 438,286,302 18,335,945 74,166,091 MSF Harris Oakmark Focused Value Sub-Account........................... 1,471,825 336,398,770 55,742,092 68,758,978 MSF Jennison Growth Sub-Account......... 13,469,523 142,372,149 16,893,571 29,227,135 MSF BlackRock Money Market Sub-Account........................... 2,416,017 241,601,700 286,275,535 232,251,416 MSF T. Rowe Price Small-Cap Growth Sub-Account........................... 74,079 1,170,015 362,764 308,026 MSF Western Asset Management U.S. Government Sub-Account................ 3,587,276 43,832,360 35,928,568 15,992,387 MSF Oppenheimer Global Equity Sub-Account........................... 572,679 9,632,577 6,788,425 604,920 MSF MetLife Aggressive Allocation Sub-Account........................... 190,620 2,377,163 1,497,528 344,830 MSF MetLife Conservative Allocation Sub-Account........................... 243,087 2,499,771 605,256 116,258 MSF MetLife Conservative To Moderate Allocation Sub-Account................ 392,901 4,208,917 1,775,405 475,874
108 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 4. STATEMENT OF INVESTMENTS -- (CONTINUED)
FOR THE YEAR ENDED AS OF DECEMBER 31, 2007 DECEMBER 31, 2007 ----------------------- ---------------------------- COST OF PROCEEDS SHARES COST ($) PURCHASES ($) FROM SALES ($) --------- ----------- ------------- -------------- MSF MetLife Moderate Allocation Sub-Account................................ 3,357,633 38,485,189 23,334,345 2,129,802 MSF MetLife Moderate To Aggressive Allocation Sub-Account................................ 4,971,036 59,575,137 39,149,580 672,571 Van Kampen LIT Strategic Growth Sub-Account................................ 274,958 8,000,636 4,144,135 1,021,109 Van Kampen LIT Enterprise Sub-Account........ 7,040 105,406 14,366 65,213 Van Kampen LIT Growth and Income Sub-Account................................ 2,302,538 48,597,332 30,708,782 859,875 Van Kampen LIT Comstock Sub-Account.......... 5,598,922 79,571,617 49,292,203 451,177 Federated Equity Income Sub-Account.......... 1,925 24,850 2,644 69,524 Federated High Income Bond Sub-Account....... 16,938 130,402 10,439 10,259 Federated Mid-Cap Growth Strategy Sub-Account................................ 4,622 128,678 -- 80,395 Neuberger Genesis Sub-Account................ 285 9,781 2,054 1,949 Alger American Small Capitalization Sub-Account................................ 2,374,990 69,308,821 1,530,713 8,871,535 T. Rowe Price Growth Sub-Account............. 311,534 8,724,523 916,841 1,491,834 T. Rowe Price International Sub-Account...... 81,499 1,164,214 241,753 219,714 T. Rowe Price Prime Reserve Sub-Account...... 1,750,411 1,750,411 931,712 700,451 Janus Aspen Worldwide Growth Sub-Account..... 281 6,608 76 822 American Funds Global Small Capitalization Sub-Account................................ 1,300,070 31,236,965 17,418,612 3,645,822 American Funds Growth Sub-Account............ 3,683,504 231,592,984 133,819,490 3,212,033 American Funds Growth-Income Sub-Account..... 3,696,748 152,828,855 84,872,559 2,162,345 American Funds Global Growth Sub-Account..... 4,193,940 98,481,131 67,091,952 126,974 American Funds Bond Sub-Account (c).......... 602,009 6,827,910 6,908,870 81,759 AllianceBernstein Large Cap Growth Sub-Account................................ 36,096 962,586 624,006 327,727 FTVIPT Franklin Templeton Developing Markets Sub-Account................................ 1,627,443 22,213,284 14,080,282 1,994,461 FTVIPT Franklin Mutual Shares Securities Sub-Account................................ 3,536,059 71,735,325 44,569,002 561,242 FTVIPT Franklin Templeton Foreign Securities Sub-Account................................ 2,790,076 51,396,959 31,325,460 2,056,080 FTVIPT Franklin Templeton Growth Securities Sub-Account................................ 2,467,381 38,438,416 25,000,696 681,412 FTVIPT Franklin Income Securities Sub-Account................................ 5,113,794 88,527,555 63,152,043 2,022,946 FTVIPT Franklin Templeton Global Income Securities Sub-Account (c)................. 244,097 4,005,248 4,047,825 42,825 FTVIPT Franklin Templeton Small Cap Value Securities Sub-Account (c)................. 129,175 2,316,697 2,359,521 39,995
109 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 4. STATEMENT OF INVESTMENTS -- (CONCLUDED)
FOR THE YEAR ENDED AS OF DECEMBER 31, 2007 DECEMBER 31, 2007 ---------------------- ---------------------------- COST OF PROCEEDS SHARES COST ($) PURCHASES ($) FROM SALES ($) ---------- ----------- ------------- -------------- Van Kampen UIF Equity and Income Sub-Account.......................... 11,268,993 165,858,158 102,155,355 1,206,908 Van Kampen UIF U.S. Real Estate Sub-Account.......................... 2,399,494 66,346,805 43,958,901 2,605,857 Van Kampen UIF U.S. Mid Cap Value Sub-Account (c)...................... 148,857 2,882,151 2,912,328 26,325 Pioneer VCT Mid-Cap Value Sub-Account.. 1,397,233 28,803,946 20,880,421 320,936 LMPVET Small Cap Growth Sub-Account.... 725,563 11,035,745 6,987,343 204,311 LMPVET Investors Sub-Account........... 284,480 4,816,729 3,396,052 691,334 LMPV Capital and Income Sub-Account (a) -- -- 14,115,820 50,608,066 LMPVET Equity Index Sub-Account........ 1,970,121 66,263,781 30,419,730 3,425,161 LMPVET Fundamental Value Sub-Account... 3,894,138 88,379,095 46,617,755 339,850 LMPVET Appreciation Sub-Account........ 3,167,415 84,867,644 49,274,094 1,213,214 LMPVET Aggressive Growth Sub-Account... 7,845,511 124,615,435 55,527,893 1,291,806 LMPVET Large Cap Growth Sub-Account.... 597,673 9,246,974 5,041,145 1,450,512 LMPV Large Cap Value Sub-Account (a)... -- -- 497,454 1,744,670 LMPVET Social Awareness Sub-Account.... 22,715 614,916 411,000 73,201 LMPVET Capital and Income Sub-Account (^)...................... 4,830,814 69,528,138 70,447,378 3,086,421 LMPVET Multiple Discipline Sub-Account- Large-Cap Growth and Value (d)....... -- -- 1,380,558 2,528,636 LMPVET Capital Sub-Account............. 568,805 9,433,918 5,879,164 1,107,701 LMPVET Global Equity Sub-Account....... 432,410 7,560,837 3,354,139 765,979 LMPV Premier Selections All Cap Growth Sub-Account (a)...................... -- -- 180,974 382,228 LMPVET Dividend Strategy Sub-Account... 787,387 8,063,168 5,400,214 267,565 LMPV Growth and Income Sub-Account (a). -- -- 1,331,777 5,113,584 LMPVET Lifestyle Allocation 50% Sub-Account.......................... 762,512 9,730,360 7,600,335 673,193 LMPVET Lifestyle Allocation 70% Sub-Account.......................... 322,125 3,852,715 3,612,360 92,575 LMPVET Lifestyle Allocation 85% Sub-Account.......................... 1,228,290 17,217,741 17,007,557 102,436 LMPVIT Adjustable Rate Income Sub-Account.......................... 333,589 3,363,422 1,587,550 507,512 LMPVIT Global High Yield Bond Sub-Account.......................... 4,501,561 44,607,653 27,940,524 582,184 LMPVIT Money Market Sub-Account........ 44,647,967 44,647,967 54,703,388 30,732,317
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. 110 [THIS PAGE INTENTIONALLY LEFT BLANK] 111 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 5. SCHEDULES OF UNITS FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MIST LORD ABBETT GROWTH MIST LORD ABBETT BOND MIST VAN KAMPEN AND INCOME DEBENTURE MID-CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------- ----------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year....... 20,191,907 21,638,608 16,856,041 17,901,873 612,842 30,352 Units issued and transferred from other funding options..................... 1,683,824 2,126,006 2,435,310 2,644,057 1,574,624 658,407 Units redeemed and transferred to other funding options.... (3,759,059) (3,572,707) (4,128,405) (3,689,889) (341,895) (75,917) ----------- ----------- ----------- ----------- ----------- ----------- Units end of year............. 18,116,672 20,191,907 15,162,946 16,856,041 1,845,571 612,842 =========== =========== =========== =========== =========== =========== MIST HARRIS OAKMARK MIST THIRD AVENUE MIST OPPENHEIMER INTERNATIONAL SMALL-CAP VALUE CAPITAL APPRECIATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------- ----------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year....... 20,892,628 18,995,708 20,363,980 20,096,109 39,279,261 43,028,313 Units issued and transferred from other funding options..................... 5,594,038 6,105,509 3,684,421 4,638,533 4,561,846 4,080,506 Units redeemed and transferred to other funding options.... (6,472,953) (4,208,589) (5,615,596) (4,370,662) (9,207,107) (7,829,558) ----------- ----------- ----------- ----------- ----------- ----------- Units end of year............. 20,013,713 20,892,628 18,432,805 20,363,980 34,634,000 39,279,261 =========== =========== =========== =========== =========== =========== MIST PIMCO INFLATION MIST T. ROWE PRICE MIST MFS RESEARCH PROTECTED BOND MID-CAP GROWTH INTERNATIONAL SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------- ----------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year....... 22,804,934 24,805,097 26,478,451 27,249,715 18,205,030 16,139,182 Units issued and transferred from other funding options..................... 4,910,828 4,559,621 7,035,129 5,497,939 6,500,324 6,101,516 Units redeemed and transferred to other funding options.... (6,374,954) (6,559,784) (8,347,595) (6,269,203) (5,098,987) (4,035,668) ----------- ----------- ----------- ----------- ----------- ----------- Units end of year............. 21,340,808 22,804,934 25,165,985 26,478,451 19,606,367 18,205,030 =========== =========== =========== =========== =========== ===========
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. 112
MIST LORD ABBETT MIST LAZARD MIST MET/AIM MID-CAP VALUE MID-CAP SMALL-CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------- ----------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 363,014 14,110 7,830,725 8,655,654 12,354,489 13,246,176 363,734 374,856 4,908,011 1,152,205 3,169,875 2,280,197 (117,183) (25,952) (4,879,744) (1,977,134) (4,071,501) (3,171,884) ----------- ----------- ----------- ----------- ----------- ----------- 609,565 363,014 7,858,992 7,830,725 11,452,863 12,354,489 =========== =========== =========== =========== =========== =========== MIST LEGG MASON PARTNERS AGGRESSIVE GROWTH MIST PIMCO TOTAL RETURN MIST RCM TECHNOLOGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------- ----------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 15,227,592 16,090,265 37,317,040 36,618,285 10,314,725 10,443,953 2,170,883 2,852,514 9,478,057 8,630,738 6,210,567 3,262,340 (3,909,937) (3,715,187) (9,256,025) (7,931,983) (4,138,768) (3,391,568) ----------- ----------- ----------- ----------- ----------- ----------- 13,488,538 15,227,592 37,539,072 37,317,040 12,386,524 10,314,725 =========== =========== =========== =========== =========== =========== MIST NEUBERGER BERMAN MIST TURNER MID-CAP MIST GOLDMAN SACHS REAL ESTATE GROWTH MID-CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------- ----------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 7,072,940 5,060,098 3,921,915 3,230,076 9,011,063 7,266,539 2,852,786 3,403,050 1,959,208 1,786,647 3,237,590 3,665,419 (3,686,796) (1,390,208) (1,408,790) (1,094,808) (3,070,266) (1,920,895) ----------- ----------- ----------- ----------- ----------- ----------- 6,238,930 7,072,940 4,472,333 3,921,915 9,178,387 9,011,063 =========== =========== =========== =========== =========== ===========
113 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 5. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MIST METLIFE MIST METLIFE MIST METLIFE DEFENSIVE STRATEGY MODERATE STRATEGY BALANCED STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year.................. 35,961,422 26,019,030 106,444,385 81,402,093 324,915,762 244,234,395 Units issued and transferred from other funding options....... 41,020,218 25,448,410 51,227,514 44,168,009 133,626,233 115,776,700 Units redeemed and transferred to other funding options....... (25,022,165) (15,506,018) (24,741,895) (19,125,717) (50,778,626) (35,095,333) ------------ ------------ ------------ ------------ ------------ ------------ Units end of year....... 51,959,475 35,961,422 132,930,004 106,444,385 407,763,369 324,915,762 ============ ============ ============ ============ ============ ============ MIST LEGG MASON MIST MET/PUTNAM MIST MFS EMERGING VALUE EQUITY CAPITAL OPPORTUNITIES MARKETS EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------------- 2007 2006 2007 (A) 2006 2007 2006 ---- ---- -------- ---- ---- ---- Units beginning of year.................. 3,602,950 125,789 19,711 -- 901,069 -- Units issued and transferred from other funding options....... 3,292,052 4,061,141 23,495 20,726 4,772,206 1,000,591 Units redeemed and transferred to other funding options....... (1,286,830) (583,980) (43,206) (1,015) (1,257,678) (99,522) ------------ ------------ ------------ ------------ ------------ ------------ Units end of year....... 5,608,172 3,602,950 -- 19,711 4,415,597 901,069 ============ ============ ============ ============ ============ ============ MIST DREMAN MIST MFS VALUE SMALL CAP VALUE MIST PIONEER FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year.................. 386,214 -- 386,322 -- 202,477 -- Units issued and transferred from other funding options....... 891,878 423,924 637,623 403,408 289,963 236,416 Units redeemed and transferred to other funding options....... (116,573) (37,710) (158,462) (17,086) (51,130) (33,939) ------------ ------------ ------------ ------------ ------------ ------------ Units end of year....... 1,161,519 386,214 865,483 386,322 441,310 202,477 ============ ============ ============ ============ ============ ============
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. 114
MIST METLIFE MIST METLIFE MIST VAN KAMPEN GROWTH STRATEGY AGGRESSIVE STRATEGY COMSTOCK SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------ --------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 325,383,030 203,679,869 49,085,211 42,330,798 4,218,383 1,605,458 202,581,542 146,369,736 8,786,059 15,521,227 2,881,514 3,193,363 (46,489,005) (24,666,575) (11,613,037) (8,766,814) (1,769,180) (580,438) ------------ ------------ ------------ ----------- ----------- --------- 481,475,567 325,383,030 46,258,233 49,085,211 5,330,717 4,218,383 ============ ============ ============ =========== =========== ========= MIST LOOMIS SAYLES MIST MET/AIM GLOBAL MARKETS CAPITAL APPRECIATION MIST JANUS FORTY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------ --------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 754,781 -- 78,887 -- 12,842 -- 4,330,872 831,554 91,296 95,335 54,433 13,762 (811,330) (76,773) (23,777) (16,448) (5,231) (920) ------------ ------------ ------------ ----------- ----------- --------- 4,274,323 754,781 146,406 78,887 62,044 12,842 ============ ============ ============ =========== =========== ========= MIST PIONEER MIST PIONEER MIST BLACKROCK MID-CAP VALUE STRATEGIC INCOME LARGE-CAP CORE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------ --------------------- 2007 (A) 2006 2007 2006 2007 2006 -------- ---- ---- ---- ---- ---- 325,656 -- 2,004,763 -- 176,805 -- 125,596 394,190 3,333,394 2,113,879 554,103 191,231 (451,252) (68,534) (358,194) (109,116) (340,464) (14,426) ------------ ------------ ------------ ----------- ----------- --------- -- 325,656 4,979,963 2,004,763 390,444 176,805 ============ ============ ============ =========== =========== =========
115 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 5. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MIST BLACKROCK MIST RAINIER LARGE AIM V.I. HIGH YIELD CAP EQUITY CORE EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ----------------------- 2007 2006 2007 (B) 2007 2006 ---- ---- -------- ---- ---- Units beginning of year.......... 198,218 -- -- 265,665 -- Units issued and transferred from other funding options.......... 378,633 213,070 673,551 2,707 304,054 Units redeemed and transferred to other funding options.......... (126,419) (14,852) (33,254) (86,373) (38,389) --------- --------- ------- ----------- ----------- Units end of year................ 450,432 198,218 640,297 181,999 265,665 ========= ========= ====== =========== =========== AIM V.I. GLOBAL REAL ESTATE MFS RESEARCH MFS INVESTORS TRUST SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ----------------------- 2007 (C) 2007 2006 2007 2006 -------- ---- ---- ---- ---- Units beginning of year.......... -- 54,023 71,636 33,624 36,118 Units issued and transferred from other funding options.......... 160,999 121 425 1,572 -- Units redeemed and transferred to other funding options.......... (4,087) (19,282) (18,038) (11,287) (2,494) ----- --------- --------- ----------- ----------- Units end of year................ 156,912 34,862 54,023 23,909 33,624 ====== ========= ========= =========== =========== OPPENHEIMER OPPENHEIMER MAIN OPPENHEIMER STRATEGIC BOND STREET SMALL-CAP MONEY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year.......... 6,741 6,741 17,793 20,466 33,346 35,829 Units issued and transferred from other funding options.......... -- -- 488,574 1,781 -- -- Units redeemed and transferred to other funding options.......... (1,080) -- (13,510) (4,454) (4,465) (2,483) --------- --------- --------- --------- ----------- ----------- Units end of year................ 5,661 6,741 492,857 17,793 28,881 33,346 ========= ========= ========= ========= =========== =========== FIDELITY VIP FIDELITY VIP FIDELITY VIP OVERSEAS EQUITY-INCOME INDEX 500 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year.......... 951,985 1,115,424 1,227,074 1,681,844 8,294,641 9,738,122 Units issued and transferred from other funding options.......... 27,810 53,170 12,045 16,606 34,197 42,455 Units redeemed and transferred to other funding options.......... (153,719) (216,609) (296,664) (471,376) (1,117,265) (1,485,936) --------- --------- --------- --------- ----------- ----------- Units end of year................ 826,076 951,985 942,455 1,227,074 7,211,573 8,294,641 ========= ========= ========= ========= =========== ===========
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. 116
AIM V.I. AIM V.I. INTERNATIONAL AIM V.I. BASIC CAPITAL APPRECIATION SUB-ACCOUNT GROWTH SUB-ACCOUNT BALANCED SUB-ACCOUNT ------------------------------------ ------------------------------------ ------------------------------------ 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 125,055 146,864 119,102 140,508 183,755 210,112 1,224 3,464 392,859 6,387 236 4,016 (48,668) (25,273) (66,017) (27,793) (58,287) (30,373) ------------------------ ----------- ------------------------ ----------- ------------------------ ----------- 77,611 125,055 445,944 119,102 125,704 183,755 ======================== =========== ======================== =========== ======================== =========== OPPENHEIMER MAIN STREET MFS NEW DISCOVERY SUB-ACCOUNT FUND/VA SUB-ACCOUNT OPPENHEIMER BOND SUB-ACCOUNT ------------------------------------ ------------------------------------ ------------------------------------ 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 28,494 32,199 59,121 61,558 47,067 56,108 2,014 601 -- -- -- 568 (16,925) (4,306) (13,693) (2,437) (9,777) (9,609) ------------------------ ----------- ------------------------ ----------- ------------------------ ----------- 13,583 28,494 45,428 59,121 37,290 47,067 ======================== =========== ======================== =========== ======================== =========== FIDELITY VIP FIDELITY VIP FIDELITY VIP ASSET MANAGER GROWTH CONTRAFUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------ ------------------------------------ ------------------------------------ 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 13,137,764 14,833,146 16,167,140 18,327,783 17,625,464 18,309,411 705,054 801,955 1,000,957 1,124,153 1,515,129 1,727,448 (2,114,522) (2,497,337) (2,798,006) (3,284,796) (2,526,834) (2,411,395) ------------------------ ----------- ------------------------ ----------- ------------------------ ----------- 11,728,296 13,137,764 14,370,091 16,167,140 16,613,759 17,625,464 ======================== =========== ======================== =========== ======================== =========== FIDELITY VIP FIDELITY VIP DWS MONEY MARKET MID-CAP INTERNATIONAL SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------ ------------------------------------ ------------------------------------ 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 4,981,073 4,560,029 398,050 -- 3,170,743 3,098,930 1,687,022 1,814,819 672,538 421,571 419,446 491,241 (1,519,580) (1,393,775) (72,935) (23,521) (470,838) (419,428) ------------------------ ----------- ------------------------ ----------- ------------------------ ----------- 5,148,515 4,981,073 997,653 398,050 3,119,351 3,170,743 ======================== =========== ======================== =========== ======================== ===========
117 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 5. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MSF FI MSF FI MSF FI MID-CAP OPPORTUNITIES LARGE CAP VALUE LEADERS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------- --------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year.......... 566,610 579,118 134,065 -- 126,575 -- Units issued and transferred from other funding options.......... 132,636 136,217 186,799 144,785 143,150 146,297 Units redeemed and transferred to other funding options....... (124,974) (148,725) (45,419) (10,720) (57,857) (19,722) ------------ ------------ --------- --------- ----------- --------- Units end of year................ 574,272 566,610 275,445 134,065 211,868 126,575 ============ ============ ========= ========= =========== ========= MSF BLACKROCK LEGACY MSF BLACKROCK MSF BLACKROCK LARGE CAP GROWTH STRATEGIC VALUE BOND INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------- --------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year.......... 19,004 16,067 613,247 598,942 261,942 69,533 Units issued and transferred from other funding options.......... 26,547 14,777 125,586 154,647 500,255 221,440 Units redeemed and transferred to other funding options....... (14,098) (11,840) (113,439) (140,342) (107,919) (29,031) ------------ ------------ --------- --------- ----------- --------- Units end of year................ 31,453 19,004 625,394 613,247 654,278 261,942 ============ ============ ========= ========= =========== ========= MSF MORGAN STANLEY MSF METLIFE EAFE INDEX MSF MFS TOTAL RETURN MID-CAP STOCK INDEX SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------- --------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year.......... 910,003 636,754 647,027 183,329 751,885 538,128 Units issued and transferred from other funding options.......... 476,312 373,976 580,681 515,081 366,411 339,064 Units redeemed and transferred to other funding options....... (307,274) (100,727) (127,568) (51,383) (231,732) (125,307) ------------ ------------ --------- --------- ----------- --------- Units end of year................ 1,079,041 910,003 1,100,140 647,027 886,564 751,885 ============ ============ ========= ========= =========== ========= MSF WESTERN ASSET MSF BLACKROCK MSF T. ROWE PRICE MANAGEMENT MONEY MARKET SMALL-CAP GROWTH U.S. GOVERNMENT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------- --------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year.......... 18,324,659 12,431,418 73,595 63,311 1,527,142 391,235 Units issued and transferred from other funding options.......... 50,713,841 31,946,687 25,601 40,008 2,776,894 1,774,831 Units redeemed and transferred to other funding options....... (46,087,325) (26,053,446) (21,540) (29,724) (1,543,833) (638,924) ------------ ------------ --------- --------- ----------- --------- Units end of year................ 22,951,175 18,324,659 77,656 73,595 2,760,203 1,527,142 ============ ============ ========= ========= =========== =========
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. 118
MSF RUSSELL MSF FI MSF METLIFE 2000 INDEX INTERNATIONAL STOCK STOCK INDEX SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------- ------------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 490,302 508,847 262,656 140,779 19,358,596 21,140,946 123,701 214,414 200,808 187,940 3,054,410 3,435,702 (132,099) (232,959) (65,131) (66,063) (4,528,000) (5,218,052) ----------- ----------- ----------- ----------- ----------- ----------- 481,904 490,302 398,333 262,656 17,885,006 19,358,596 =========== =========== =========== =========== =========== =========== MSF BLACKROCK MSF LEHMAN BROTHERS MSF HARRIS OAKMARK LARGE CAP VALUE AGGREGATE BOND INDEX LARGE CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------- ------------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 154,904 77,212 340,120 300,648 420,888 423,013 167,767 101,416 191,771 125,985 122,479 128,709 (71,015) (23,724) (94,899) (86,513) (103,629) (130,834) ----------- ----------- ----------- ----------- ----------- ----------- 251,656 154,904 436,992 340,120 439,738 420,888 =========== =========== =========== =========== =========== =========== MSF DAVIS VENTURE VALUE MSF HARRIS OAKMARK MSF JENNISON GROWTH SUB-ACCOUNT FOCUSED VALUE SUB-ACCOUNT SUB-ACCOUNT ----------------------- ------------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 43,433,483 44,607,893 21,686,262 23,942,954 15,655,366 15,959,598 4,997,151 6,386,778 1,989,414 3,088,344 2,559,546 3,885,170 (8,493,860) (7,561,188) (5,123,744) (5,345,036) (3,939,522) (4,189,402) ----------- ----------- ----------- ----------- ----------- ----------- 39,936,774 43,433,483 18,551,932 21,686,262 14,275,390 15,655,366 =========== =========== =========== =========== =========== =========== MSF OPPENHEIMER MSF METLIFE MSF METLIFE GLOBAL EQUITY AGGRESSIVE ALLOCATION CONSERVATIVE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------- ------------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 195,337 -- 101,305 -- 194,471 -- 371,794 209,413 112,949 107,062 56,267 195,095 (66,064) (14,076) (24,460) (5,757) (8,105) (624) ----------- ----------- ----------- ----------- ----------- ----------- 501,067 195,337 189,794 101,305 242,633 194,471 =========== =========== =========== =========== =========== ===========
119 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 5. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
MSF METLIFE CONSERVATIVE MSF METLIFE MSF METLIFE MODERATE TO MODERATE ALLOCATION MODERATE ALLOCATION TO AGGRESSIVE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------ ------------------- ------------------------ 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year................ 273,176 -- 1,554,946 -- 1,876,875 -- Units issued and transferred from other funding options...................... 159,500 281,303 2,054,507 1,601,845 3,325,776 2,015,060 Units redeemed and transferred to other funding options...................... (39,767) (8,127) (257,799) (46,899) (154,888) (138,185) --------- --------- --------- --------- --------- --------- Units end of year...................... 392,909 273,176 3,351,654 1,554,946 5,047,763 1,876,875 ========= ========= ========= ========= ========= ========= VAN KAMPEN LIT FEDERATED FEDERATED COMSTOCK EQUITY INCOME HIGH INCOME BOND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------ ------------------- ------------------------ 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year................ 2,167,418 -- 17,127 18,507 20,273 22,143 Units issued and transferred from other funding options...................... 3,409,984 2,242,692 1 -- -- 215 Units redeemed and transferred to other funding options...................... (389,366) (75,274) (11,655) (1,380) (1,274) (2,085) --------- --------- --------- --------- --------- --------- Units end of year...................... 5,188,036 2,167,418 5,473 17,127 18,999 20,273 ========= ========= ========= ========= ========= ========= T. ROWE PRICE T. ROWE PRICE T. ROWE PRICE GROWTH INTERNATIONAL PRIME RESERVE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------ ------------------- ------------------------ 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year................ 128,359 142,212 96,658 102,719 87,463 82,793 Units issued and transferred from other funding options...................... 10,390 11,472 8,261 9,879 58,164 38,454 Units redeemed and transferred to other funding options...................... (20,494) (25,325) (16,948) (15,940) (48,672) (33,784) --------- --------- --------- --------- --------- --------- Units end of year...................... 118,255 128,359 87,971 96,658 96,955 87,463 ========= ========= ========= ========= ========= ========= AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GROWTH-INCOME GLOBAL GROWTH BOND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------ ------------------- ------------------------ 2007 2006 2007 2006 2007 (C) 2006 ---- ---- ---- ---- -------- ---- Units beginning of year................ 687,630 199,680 1,374,016 22,386 -- -- Units issued and transferred from other funding options...................... 816,095 587,110 2,671,069 1,430,369 430,306 -- Units redeemed and transferred to other funding options...................... (133,851) (99,160) (368,771) (78,739) (16,446) -- --------- --------- --------- --------- --------- --------- Units end of year...................... 1,369,874 687,630 3,676,314 1,374,016 413,860 -- ========= ========= ========= ========= ========= =========
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. 120
VAN KAMPEN LIT VAN KAMPEN LIT VAN KAMPEN LIT STRATEGIC GROWTH ENTERPRISE GROWTH AND INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ----------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 1,033,865 88,859 39,881 43,297 1,465,291 43,633 912,049 1,074,283 3,157 1,349 1,953,998 1,496,035 (286,144) (129,277) (14,725) (4,765) (349,498) (74,377) --------- --------- --------- --------- ----------- ----------- 1,659,770 1,033,865 28,313 39,881 3,069,791 1,465,291 ========= ========= ========= ========= =========== =========== FEDERATED MID-CAP ALGER AMERICAN SMALL GROWTH STRATEGY NEUBERGER GENESIS CAPITALIZATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ----------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 32,906 35,001 1,051 1,183 7,749,990 8,307,133 -- 1 -- 1 609,066 1,017,173 (12,032) (2,096) (124) (133) (1,211,161) (1,574,316) --------- --------- --------- --------- ----------- ----------- 20,874 32,906 927 1,051 7,147,895 7,749,990 ========= ========= ========= ========= =========== =========== JANUS ASPEN AMERICAN FUNDS GLOBAL AMERICAN FUNDS WORLDWIDE GROWTH SMALL CAPITALIZATION GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ----------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 1,276 1,375 666,735 470,780 729,519 208,063 1 -- 526,453 343,062 881,482 585,336 (95) (99) (207,627) (147,107) (152,686) (63,880) --------- --------- --------- --------- ----------- ----------- 1,182 1,276 985,561 666,735 1,458,315 729,519 ========= ========= ========= ========= =========== =========== ALLIANCEBERNSTEIN FTVIPT FRANKLIN TEMPLETON FTVIPT FRANKLIN MUTUAL LARGE CAP GROWTH DEVELOPING MARKETS SHARES SECURITIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ----------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 19,969 -- 764,911 21,537 1,273,727 11,181 19,753 23,300 1,085,550 837,845 1,973,226 1,429,307 (10,634) (3,331) (355,618) (94,471) (240,542) (166,761) --------- --------- --------- --------- ----------- ----------- 29,088 19,969 1,494,843 764,911 3,006,411 1,273,727 ========= ========= ========= ========= =========== ===========
121 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 5. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
FTVIPT FTVIPT FRANKLIN TEMPLETON FRANKLIN TEMPLETON FTVIPT FRANKLIN FOREIGN SECURITIES GROWTH SECURITIES INCOME SECURITIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year................ 946,611 33,847 784,417 -- 664,025 4,136 Units issued and transferred from other funding options...................... 1,134,445 1,011,259 1,452,838 825,349 1,487,884 697,590 Units redeemed and transferred to other funding options...................... (302,228) (98,495) (173,954) (40,932) (177,549) (37,701) --------- --------- --------- --------- --------- --------- Units end of year...................... 1,778,828 946,611 2,063,301 784,417 1,974,360 664,025 ========= ========= ========= ========= ========= ========= VAN KAMPEN UIF VAN KAMPEN UIF PIONEER VCT U.S. REAL ESTATE U.S. MID-CAP VALUE MID-CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ----------------------- 2007 2006 2007 (C) 2007 2006 ---- ---- -------- ---- ---- Units beginning of year................ 928,174 -- -- 262,287 -- Units issued and transferred from other funding options...................... 1,498,555 963,710 264,713 610,507 277,392 Units redeemed and transferred to other funding options...................... (383,199) (35,536) (7,285) (59,722) (15,105) --------- --------- ----- --------- --------- Units end of year...................... 2,043,530 928,174 257,428 813,072 262,287 ========= ========= ====== ========= ========= LMPVET EQUITY INDEX LMPVET FUNDAMENTAL LMPVET APPRECIATION SUB-ACCOUNT VALUE SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ----------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- Units beginning of year................ 1,440,692 2,224 1,257,495 1,160 1,236,956 1,722 Units issued and transferred from other funding options...................... 1,027,070 1,488,265 1,362,673 1,345,152 1,613,481 1,288,559 Units redeemed and transferred to other funding options...................... (191,610) (49,797) (180,147) (88,817) (258,593) (53,325) --------- --------- --------- --------- --------- --------- Units end of year...................... 2,276,152 1,440,692 2,440,021 1,257,495 2,591,844 1,236,956 ========= ========= ========= ========= ========= ========= LMPVET MULTIPLE LMPVET SOCIAL LMPVET CAPITAL AND DISCIPLINE SUB-ACCOUNT- AWARENESS INCOME LARGE CAP SUB-ACCOUNT SUB-ACCOUNT (^) GROWTH AND VALUE ------------------- ------------------- ----------------------- 2007 2006 2007 2006 2007 (D) 2006 ---- ---- ---- ---- -------- ---- Units beginning of year................ 10,361 -- 154,474 2,660 77,203 2,136 Units issued and transferred from other funding options...................... 11,444 11,211 4,882,150 157,023 79,846 83,010 Units redeemed and transferred to other funding options...................... (2,783) (850) (299,351) (5,209) (157,049) (7,943) --------- --------- --------- --------- --------- --------- Units end of year...................... 19,022 10,361 4,737,273 154,474 -- 77,203 ========= ========= ========= ========= ========= =========
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. 122
FTVIPT FTVIPT FRANKLIN TEMPLETON FRANKLIN TEMPLETON VAN KAMPEN UIF GLOBAL INCOME SECURITIES SMALL CAP VALUE SECURITIES EQUITY AND INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------ -------------------------- --------------------- 2007 (C) 2007 (C) 2007 2006 -------- -------- ---- ---- -- -- 4,592,861 -- 331,982 257,280 7,104,292 4,841,916 (13,057) (5,616) (762,741) (249,055) ------- ----- ----------- --------- 318,925 251,664 10,934,412 4,592,861 ====== ====== =========== ========= LMPVET LMPVET LMPV SMALL CAP GROWTH INVESTORS CAPITAL AND INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------ -------------------------- --------------------- 2007 2006 2007 2006 2007 (A) 2006 ---- ---- ---- ---- -------- ---- 325,638 15,787 130,370 6,750 3,099,287 -- 505,149 366,781 199,483 132,976 1,101,304 3,312,504 (76,112) (56,930) (50,208) (9,356) (4,200,591) (213,217) --------- --------- --------- -------- ----------- --------- 754,675 325,638 279,645 130,370 -- 3,099,287 ========= ========= ========= ======== =========== ========= LMPVET AGGRESSIVE LMPVET LARGE CAP GROWTH GROWTH LMPV LARGE CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------ -------------------------- --------------------- 2007 2006 2007 2006 2007 (A) 2006 ---- ---- ---- ---- -------- ---- 5,468,811 15,934 433,171 -- 47,187 15,016 4,847,039 5,786,552 412,051 463,287 20,389 55,707 (908,950) (333,675) (145,679) (30,116) (67,576) (23,536) --------- --------- --------- -------- ----------- --------- 9,406,900 5,468,811 699,543 433,171 -- 47,187 ========= ========= ========= ======== =========== ========= LMPV PREMIER SELECTIONS ALL CAP LMPVET CAPITAL LMPVET GLOBAL EQUITY GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------ -------------------------- --------------------- 2007 2006 2007 2006 2007 (A) 2006 ---- ---- ---- ---- -------- ---- 284,789 9,633 290,262 10,041 16,983 -- 344,757 356,111 177,575 305,197 11,842 17,160 (87,316) (80,955) (50,035) (24,976) (28,825) (177) --------- --------- --------- -------- ----------- --------- 542,230 284,789 417,802 290,262 -- 16,983 ========= ========= ========= ======== =========== =========
123 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 5. SCHEDULES OF UNITS -- (CONCLUDED) FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
LMPVET DIVIDEND LMPV LMPVET LIFESTYLE STRATEGY GROWTH AND INCOME ALLOCATION 50% SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ----------------------- ----------------- 2007 2006 2007 (A) 2006 2007 2006 ---- ---- -------- ---- ---- ---- Units beginning of year.......... 321,925 3,967 351,206 -- 177,614 -- Units issued and transferred from other funding options.......... 570,841 338,521 131,355 396,898 480,382 220,255 Units redeemed and transferred to other funding options.......... (58,060) (20,563) (482,561) (45,692) (67,559) (42,641) --------- --------- ----------- ----------- -------- -------- Units end of year................ 834,706 321,925 -- 351,206 590,437 177,614 ========= ========= =========== =========== ======== ======== LMPVIT GLOBAL HIGH LMPVIT YIELD BOND MONEY MARKET SUB-ACCOUNT SUB-ACCOUNT ------------------- ----------------------- 2007 2006 2007 2006 ---- ---- ---- ---- Units beginning of year.......... 1,039,676 3,458 1,600,672 15,276 Units issued and transferred from other funding options.......... 1,746,715 1,094,941 7,003,664 3,679,377 Units redeemed and transferred to other funding options.......... (259,337) (58,723) (5,278,118) (2,093,981) --------- --------- ----------- ----------- Units end of year................ 2,527,054 1,039,676 3,326,218 1,600,672 ========= ========= =========== ===========
(a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. 124
LMPVET LIFESTYLE LMPVET LIFESTYLE ALLOCATION 70% ALLOCATION 85% LMPVIT ADJUSTABLE RATE SUB-ACCOUNT SUB-ACCOUNT INCOME SUB-ACCOUNT --------------- ----------------- ---------------------- 2007 2006 2007 2006 2007 2006 ---- ---- ---- ---- ---- ---- 23,381 -- 21,392 -- 216,326 351 236,512 31,381 1,075,411 23,478 159,464 266,005 (9,826) (8,000) (38,876) (2,086) (65,226) (50,030) ------- ------- --------- ------- -------- -------- 250,067 23,381 1,057,927 21,392 310,564 216,326 ======= ======= ========= ======= ======== ========
125 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. FINANCIAL HIGHLIGHTS The following table is a summary of unit values and units outstanding for the Contracts, net investment income ratios, and expense ratios, excluding expenses for the underlying portfolio, series, or fund, for each of the five years in the period ended December 31, 2007:
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------- -------------------------------------------- UNIT VALUE/1/ INVESTMENT/2/ EXPENSE RATIO/3/ TOTAL RETURN/4/ LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- -------------- ----------- ------------ --------------- --------------- MIST Lord Abbett Growth and 2007 18,116,672 30.63 - 100.12 822,332,309 0.94 0.89 - 2.35 1.30 - 7.97 Income Sub-Account 2006 20,191,907 29.87 - 97.12 898,436,542 1.63 0.89 - 2.35 15.06 - 16.98 2005 21,638,608 47.57 - 83.02 824,030,188 0.89 0.89 - 2.35 1.00 - 2.76 2004 25,899,570 47.10 - 80.79 993,369,357 0.36 0.89 - 2.35 10.02 - 11.92 2003 26,780,162 42.81 - 72.18 924,533,437 0.89 0.89 - 2.35 23.90 - 29.90 MIST Lord Abbett Bond 2007 15,162,946 6.68 - 20.98 288,948,614 5.32 0.89 - 2.35 4.06 - 5.90 Debenture Sub-Account 2006 16,856,041 6.34 - 19.81 306,513,652 6.67 0.89 - 2.35 6.62 - 8.39 2005 17,901,873 16.76 - 18.28 303,014,566 3.81 0.89 - 2.35 (0.86) - 0.91 2004 26,280,750 16.91 - 18.12 445,940,992 2.65 0.89 - 2.35 5.65 - 7.47 2003 30,439,495 16.00 - 16.86 486,072,404 2.76 0.89 - 2.35 8.88 - 18.46 MIST Van Kampen Mid-Cap 2007 1,845,571 12.30 - 13.50 23,676,085 -- 0.95 - 2.30 20.66 - 22.31 Growth Sub-Account 2006 612,842 10.20 - 10.75 6,430,532 -- 1.40 - 2.30 5.91 - 6.87 2005 30,352 9.63 - 10.06 299,552 -- 1.40 - 2.30 4.40 - 4.55 MIST Lord Abbett Mid-Cap 2007 609,565 25.04 - 27.45 16,075,069 0.60 1.55 - 2.30 (1.70) - (0.96) Value Sub-Account 2006 363,014 25.47 - 27.96 9,728,623 0.36 1.40 - 2.30 9.63 - 10.62 2005 14,110 23.23 - 25.27 343,901 0.35 1.40 - 2.30 4.15 - 4.31 MIST Lazard Mid-Cap 2007 7,858,992 14.83 - 15.78 121,255,292 0.34 1.30 - 2.35 (4.98) - (3.97) Sub-Account 2006 7,830,725 15.64 - 16.43 126,365,450 0.31 1.30 - 2.35 12.02 - 13.20 2005 8,655,654 14.10 - 14.52 123,820,991 0.06 1.30 - 2.35 5.56 - 6.67 2004 10,260,770 13.35 - 13.61 138,065,930 -- 1.30 - 2.35 11.74 - 12.92 2003 12,288,849 11.95 - 12.05 146,961,328 1.53 1.30 - 2.35 22.83 - 24.55 MIST Met/AIM Small-Cap 2007 11,452,863 15.20 - 16.74 181,044,517 -- 0.89 - 2.35 8.48 - 10.41 Growth Sub-Account 2006 12,354,489 14.00 - 15.16 178,634,572 -- 0.89 - 2.35 11.54 - 12.90 2005 13,246,176 12.68 - 13.43 170,469,329 -- 0.89 - 2.35 5.76 - 7.63 2004 18,324,234 11.99 - 12.48 221,300,303 -- 0.89 - 2.35 3.95 - 5.78 2003 12,507,344 11.53 - 11.70 144,317,277 -- 1.25 - 2.35 32.4 - 37.35 MIST Harris Oakmark 2007 20,013,713 18.49 - 19.62 384,273,575 0.80 1.30 - 2.35 (3.43) - (2.40) International Sub-Account 2006 20,892,628 19.13 - 20.10 412,470,437 2.44 1.30 - 2.35 25.86 - 27.19 2005 18,995,708 15.34 - 15.81 295,833,789 -- 1.30 - 2.35 11.59 - 12.77 2004 22,456,213 13.75 - 14.02 311,119,427 -- 1.30 - 2.35 17.72 - 18.96 2003 16,889,437 11.68 - 11.78 197,424,709 1.81 1.30 - 2.35 33.23 - 33.47 MIST Third Avenue Small-Cap 2007 18,432,805 16.58 - 18.13 316,501,402 1.00 0.89 - 2.35 (5.29) - (3.66) Value Sub-Account 2006 20,050,298 17.49 - 18.82 360,767,904 0.45 0.89 - 2.35 10.51 - 12.38 2005 20,097,482 15.9 - 16.74 324,830,876 -- 0.89 - 2.35 12.80 - 14.79 2004 22,647,378 14.1 - 14.58 322,139,879 0.30 0.89 - 2.35 23.56 - 25.68 2003 19,607,796 11.41 - 11.54 224,160,967 0.48 1.25 - 2.35 34.67 - 39.78 MIST Oppenheimer Capital 2007 34,634,000 9.77 - 12.90 354,882,609 0.01 0.95 - 2.35 11.62 - 13.20 Appreciation Sub-Account 2006 39,279,261 8.75 - 11.41 357,893,449 0.10 1.15 - 2.35 5.12 - 6.58 2005 43,028,313 8.41 - 72.34 370,348,053 -- 1.15 - 2.35 2.29 - 3.92 2004 57,692,439 8.22 - 10.31 481,094,106 0.66 1.15 - 3.35 3.09-5.21 2003 51,514,003 7.91 - 7.99 407,474,001 -- 1.30 - 2.35 20.90 - 26.87
126 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------ ---------------------------------------------- UNIT VALUE/1/ INVESTMENT/2/ EXPENSE RATIO/3/ TOTAL RETURN/4/ LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- ------------- ----------- ------------ --------------- ----------------- MIST Legg Mason Partners 2007 13,488,538 7.44 - 7.91 104,186,821 -- 1.30 - 2.35 (0.12) - 0.94 Aggressive Growth 2006 15,227,592 7.44 - 7.84 116,887,678 -- 1.30 - 2.35 (4.01) - (3.00) Sub-Account 2005 16,090,265 7.84 - 8.08 127,810,334 -- 1.30 - 2.35 10.95 - 12.11 2004 25,135,863 7.06 - 7.21 178,656,657 -- 1.30 - 2.35 5.92 - 7.04 2003 26,535,225 6.67 - 6.73 176,918,622 -- 1.30 - 2.35 21.15 - 29.21 MIST PIMCO Total Return 2007 37,539,072 9.10 - 14.05 469,985,360 3.32 0.89 - 2.35 5.05 - 6.89 Bond Sub-Account 2006 37,317,040 8.56 - 13.14 440,826,722 2.58 0.89 - 2.35 2.10 - 3.88 2005 36,618,285 11.89 - 12.65 418,753,068 0.01 0.89 - 2.35 (0.12) - 1.56 2004 42,299,943 11.9 - 12.46 483,702,554 7.16 0.89 - 2.35 2.54 - 4.31 2003 44,224,455 11.61 - 11.94 502,661,539 1.36 0.89 - 2.35 (0.06) - 3.59 MIST RCM Technology 2007 12,386,524 6.06 - 6.72 78,045,995 -- 0.89 - 2.35 28.45 - 30.50 Sub-Account 2006 10,314,725 4.71 - 5.15 50,206,487 -- 0.89 - 2.35 2.91 - 4.55 2005 10,443,953 4.63 - 4.93 49,054,494 -- 0.89 - 2.35 8.44 - 10.37 2004 14,758,131 4.27 - 4.47 63,448,988 -- 0.89 - 2.35 (6.54) - (5.13) 2003 9,339,752 4.57 - 4.71 42,664,907 -- 0.89 - 2.35 38.29 - 56.45 MIST PIMCO Inflation 2007 21,340,808 11.60 - 12.19 255,623,164 2.14 1.30 - 2.35 8.21 - 9.36 Protected Bond Sub-Account 2006 22,804,934 10.72 - 11.14 250,682,193 3.75 1.30 - 2.35 (1.94) - (0.91) 2005 24,805,097 10.93 - 11.25 276,160,752 -- 1.30 - 2.35 (0.96) - 0.08 2004 32,840,848 11.04 - 11.24 366,675,258 4.84 1.30 - 2.35 6.47 - 7.60 2003 25,707,912 10.37 - 10.44 267,794,617 0.42 1.30 - 2.35 3.70 - 4.43 MIST T. Rowe Price Mid-Cap 2007 25,165,985 9.25 - 9.83 242,043,730 -- 1.30 - 2.35 14.89 - 16.11 Growth Sub-Account 2006 26,478,451 8.04 - 8.47 220,015,833 -- 1.30 - 2.35 3.70 - 4.80 2005 27,249,715 7.84 - 8.08 216,790,477 -- 1.30 - 2.35 11.97 - 13.15 2004 27,535,906 7.00 - 7.14 194,196,541 -- 1.30 - 2.35 15.08 - 16.30 2003 33,526,891 6.09 - 6.14 203,972,459 -- 1.30 - 2.35 27.9 - 34.88 MIST MFS Research 2007 19,606,367 16.84 - 18.48 345,568,972 1.22 0.95 - 2.35 10.65 - 12.21 International Sub-Account 2006 18,205,030 15.21 - 17.35 287,904,765 1.63 0.89 - 2.35 23.63 - 25.79 2005 16,139,182 12.53 - 13.79 204,989,567 0.35 0.89 - 2.35 13.73 - 15.91 2004 20,959,982 10.01 - 11.90 232,369,176 -- 0.89 - 2.35 16.78 - 19.72 2003 12,887,155 9.43 - 9.52 121,500,710 0.89 1.30 - 2.35 28.59 - 30.34 MIST Neuberger Berman Real 2007 6,238,930 15.74 - 16.36 100,668,094 0.98 1.30 - 2.35 (16.99) - (16.11) Estate Sub-Account 2006 7,072,940 18.97 - 19.50 136,595,815 0.95 1.30 - 2.35 34.40 - 35.81 2005 5,060,098 14.11 - 14.36 72,233,498 -- 1.30 - 2.35 10.66 - 11.83 2004 6,453,896 12.75 - 12.84 82,681,769 3.24 1.30 - 2.35 27.55 - 28.44 MIST Turner Mid-Cap Growth 2007 4,472,333 15.09 - 15.69 69,239,590 -- 1.30 - 2.35 21.25 - 22.54 Sub-Account 2006 3,921,915 12.45 - 12.80 49,712,120 -- 1.30 - 2.35 3.61 - 4.71 2005 3,230,076 12.01 - 12.23 39,253,598 -- 1.30 - 2.35 8.78 - 9.92 2004 5,202,742 11.04 - 11.12 57,720,296 -- 1.30 - 2.35 10.47 - 11.24 MIST Goldman Sachs Mid-Cap 2007 9,178,387 14.88 - 15.47 140,073,719 0.49 1.30 - 2.35 0.69 - 1.76 Value Sub-Account 2006 9,011,063 14.78 - 15.20 135,606,841 -- 1.30 - 2.35 13.01 - 14.20 2005 7,266,539 13.08 - 13.31 96,096,991 0.76 1.30 - 2.35 9.93 - 11.09 2004 6,316,125 11.90 - 11.98 75,475,209 0.97 1.30 - 2.35 18.98 - 19.81
127 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------- -------------------------------------------- UNIT VALUE/1/ INVESTMENT/2/ EXPENSE RATIO/3/ TOTAL RETURN/4/ LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ----------- --------------- ------------- ------------ --------------- --------------- MIST MetLife Defensive 2007 51,959,475 11.31 - 11.75 600,410,325 1.89 1.15 - 2.35 3.45 - 4.70 Strategy Sub-Account 2006 35,961,422 10.93 - 11.18 399,117,450 0.01 1.30 - 2.35 6.11 - 7.23 2005 26,019,030 10.3 - 10.43 270,290,202 1.17 1.30 - 2.35 2.06 - 3.13 2004 10,259,110 10.10 - 10.11 103,691,358 1.71 1.30 - 2.35 1.71 - 1.59 MIST MetLife Moderate 2007 132,930,004 11.79 - 12.25 1,602,068,224 1.93 1.15 - 2.35 3.73 - 4.99 Strategy Sub-Account 2006 106,444,385 11.37 - 11.63 1,227,960,101 0.01 1.30 - 2.35 7.68 - 8.81 2005 81,402,093 10.56 - 10.69 866,351,374 1.28 1.30 - 2.35 3.36 - 4.45 2004 36,400,671 10.22 - 10.23 372,285,715 1.34 1.30 - 2.35 2.02 - 2.20 MIST MetLife Balanced 2007 407,763,369 12.17 - 12.64 5,073,218,651 1.64 1.15 - 2.35 2.43 - 3.68 Strategy Sub-Account 2006 324,915,762 11.88 - 12.15 3,917,704,428 0.01 1.30 - 2.35 9.38 - 10.54 2005 244,234,395 10.86 - 10.99 2,673,665,820 1.27 1.30 - 2.35 4.64 - 5.74 2004 114,542,772 10.38 - 10.40 1,190,221,359 0.99 1.30 - 2.35 2.79 - 2.91 MIST MetLife Growth 2007 481,475,567 12.81 - 13.30 6,304,660,461 1.10 1.15 - 2.35 2.26 - 3.50 Strategy Sub-Account 2006 325,383,030 12.53 - 12.81 4,136,759,495 0.01 1.30 - 2.35 10.96 - 12.13 2005 203,679,869 11.29 - 11.43 2,317,496,022 1.16 1.30 - 2.35 6.60 - 7.72 2004 91,629,337 10.59 - 10.61 971,459,771 0.62 1.30 - 2.35 3.45 - 3.56 MIST MetLife Aggressive 2007 46,258,233 12.84 - 13.34 607,023,915 1.29 1.15 - 2.35 0.48 - 1.70 Strategy Sub-Account 2006 49,085,211 12.78 - 13.07 636,476,170 0.01 1.30 - 2.35 11.02 - 12.18 2005 42,330,798 11.51 - 11.65 491,059,239 0.93 1.30 - 2.35 7.82 - 8.96 2004 20,464,973 10.68 - 10.69 218,707,527 0.22 1.30 - 2.35 3.67 - 3.79 MIST Van Kampen 2007 5,330,717 11.24 - 11.56 60,993,695 1.34 1.30 - 2.35 (4.77) - (3.76) Comstock Sub-Account 2006 4,218,383 11.80 - 12.01 50,349,650 -- 1.30 - 2.35 13.36 - 14.56 2005 1,605,458 10.41 - 10.48 16,786,051 1.82 1.30 - 2.35 4.11 - 4.84 MIST Legg Mason Value 2007 5,608,172 10.15 - 10.46 57,822,803 -- 0.95 - 2.35 (8.10) - (6.80) Equity Sub-Account 2006 3,602,950 11.05 - 11.18 40,088,253 -- 1.30 - 2.35 4.11 - 5.21 2005 125,789 10.61 - 10.63 1,335,710 -- 1.30 - 2.35 6.10 - 6.28 MIST Met/Putnam Capital 2007 -- -- -- 0.13 1.50 - 1.90 8.54 - 8.68 Opportunities 2006 19,711 16.42 - 20.02 365,485 -- 1.40 - 2.25 12.08 - 13.03 Sub-Account (a) 2005 -- 14.65 - 17.71 -- -- 1.40 - 2.25 4.39 - 4.54 MFS Emerging Markets 2007 4,415,597 13.89 - 14.22 62,075,247 0.04 0.95 - 2.35 33.43 - 35.32 Equity Sub-Account 2006 901,069 10.41 - 10.49 9,424,659 1.65 1.30 - 2.35 4.12 - 4.86 MIST Loomis Sayles Global 2007 4,274,323 12.83 - 13.06 55,474,222 -- 1.30 - 2.35 24.87 - 26.19 Markets Sub-Account 2006 754,781 10.27 - 10.35 7,786,909 1.55 1.30 - 2.35 2.74 - 3.46 MIST Met/Aim Capital 2007 146,406 14.96 - 16.91 2,334,027 0.08 1.10 - 2.10 9.58 - 10.69 Appreciation Sub-Account 2006 78,887 13.35 - 14.77 1,133,847 0.04 1.40 - 2.30 4.46 - 5.40 MIST Janus Forty 2007 62,044 124.70 - 149.97 8,715,091 0.08 1.55 - 2.30 27.48 - 28.45 Sub-Account 2006 12,842 97.82 - 120.96 1,410,409 -- 1.40 - 2.30 0.74 - 1.65 MIST MFS Value 2007 1,161,519 15.79 - 17.03 19,328,605 -- 1.50 - 2.30 5.18 - 6.03 Sub-Account 2006 386,214 15.02 - 16.20 6,091,254 2.11 1.40 - 2.30 18.58 - 19.65
128 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------- --------------------------------------------- UNIT VALUE/1/ INVESTMENT/2/ EXPENSE RATIO/3/ TOTAL RETURN/4/ LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) --------- ------------- ---------- ------------ --------------- ---------------- MIST Dreman Small 2007 865,483 13.13 - 13.40 11,511,054 -- 1.55 - 2.30 (3.24) - (2.50) Cap Value Sub-Account 2006 386,322 13.57 - 13.78 5,287,629 0.53 1.40 - 2.30 21.42 - 22.51 MIST Pioneer Fund 2007 441,310 17.99 - 21.26 8,679,759 0.78 1.10 - 2.30 2.60 - 3.85 Sub-Account 2006 202,477 17.53 - 19.69 3,839,197 -- 1.40 - 2.30 13.30 - 14.32 MIST Pioneer Mid-Cap 2007 -- -- -- 0.48 1.55 - 2.30 10.14 - 10.41 Value Sub-Account (a) 2006 325,656 11.89 - 12.07 3,904,591 0.31 1.40 - 2.30 10.01 - 11.00 MIST Pioneer Strategic 2007 4,979,963 18.89 - 21.05 98,174,413 0.56 0.95 - 1.90 4.63 - 5.63 Income Sub-Account 2006 2,004,763 17.28 - 19.22 37,439,194 8.40 1.40 - 2.25 3.95 - 4.83 MIST BlackRock Large-Cap 2007 390,444 10.96 - 11.80 4,467,216 0.64 1.55 - 2.30 0.28 - 4.87 Core Sub-Account 2006 176,805 10.53 - 11.40 1,947,743 -- 1.40 - 2.30 11.66 - 12.66 MIST BlackRock High Yield 2007 450,432 15.68 - 16.78 7,452,180 8.47 1.70 - 2.30 0.35 - 0.96 Sub-Account 2006 198,218 15.62 - 16.62 3,246,398 -- 1.70 - 2.30 7.32 - 7.97 MIST Rainer Large Cap Equity 2007 640,297 9.97 - 9.99 6,390,092 0.09 1.30 - 2.20 1.90 - 2.03 Sub-Account (b) AIM V.I. Core Equity Sub-Account 2007 181,999 4.72 859,118 0.99 1.40 6.61 2006 265,665 4.43 1,176,358 0.53 1.40 13.65 AIM V.I. Capital Appreciation 2007 77,611 5.59 433,487 -- 1.40 10.45 Sub-Account 2006 125,055 5.06 632,398 0.05 1.40 4.83 2005 146,864 4.82 708,491 0.06 1.40 7.33 2004 160,011 4.49 719,218 -- 1.40 5.14 2003 187,203 4.28 801,309 -- 1.40 27.72 AIM V.I. International Growth 2007 445,944 8.54 - 31.74 11,954,057 1.05 0.95 - 1.75 0.37 - 13.15 Sub-Account 2006 119,102 7.56 899,842 0.95 1.40 26.46 2005 140,508 5.97 839,474 0.66 1.40 16.29 2004 149,241 5.14 766,725 0.64 1.40 22.28 2003 157,713 4.20 663,479 0.55 1.40 27.27 AIM V.I. Basic Balanced 2007 125,704 5.36 673,813 2.71 1.40 0.77 Sub-Account 2006 183,755 5.32 977,412 1.83 1.40 9.02 2005 210,112 4.88 1,025,135 1.37 1.40 3.83 2004 248,074 4.70 1,165,729 1.39 1.40 6.02 2003 264,594 4.43 1,174,236 1.95 1.40 14.75 AIM V.I. Global Real Estate 2007 156,912 9.58 - 9.67 1,510,684 9.59 0.95 - 1.75 (13.59) - (6.80) Sub-Account (c) MFS Research Sub-Account 2007 34,862 5.72 199,317 0.70 1.40 11.62 2006 54,023 5.12 276,705 0.51 1.40 8.95 2005 71,636 4.70 336,793 0.48 1.40 6.31 2004 78,859 4.42 348,759 1.14 1.40 14.24 2003 97,097 3.87 376,389 0.67 1.40 22.97
129 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------ --------------------------------------------- UNIT VALUE/1/ INVESTMENT/2/ EXPENSE RATIO/3/ TOTAL RETURN/4/ LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- ------------- ----------- ------------ --------------- ---------------- MFS Investors Trust Sub-Account 2007 23,909 5.53 132,122 0.85 1.40 8.76 2006 33,624 5.08 170,831 0.49 1.40 11.43 2005 36,118 4.56 164,685 0.56 1.40 5.83 2004 39,372 4.31 169,641 0.66 1.40 9.80 2003 50,833 3.92 199,719 0.67 1.40 20.45 MFS New Discovery Sub- Account 2007 13,583 7.31 99,354 -- 1.40 1.08 2006 28,494 7.24 206,180 -- 1.40 11.65 2005 32,199 6.48 208,682 -- 1.40 3.79 2004 37,742 6.24 235,687 -- 1.40 5.03 2003 58,708 5.95 349,469 -- 1.40 31.86 Oppenheimer Main Street 2007 45,428 5.60 254,460 1.11 1.40 2.96 Fund/VA Sub-Account 2006 59,121 5.44 321,623 1.13 1.40 13.43 2005 61,558 4.80 295,228 1.38 1.40 4.51 2004 68,507 4.59 314,388 1.66 1.40 7.93 2003 398,851 4.25 1,697,953 0.97 1.40 24.96 Oppenheimer Bond Sub-Account 2007 37,290 7.09 264,529 5.54 1.40 2.93 2006 47,067 6.89 324,377 5.59 1.40 3.82 2005 56,108 6.64 372,459 5.19 1.40 1.16 2004 61,376 6.56 402,738 4.89 1.40 4.02 2003 70,248 6.31 443,706 5.47 1.40 5.29 Oppenheimer Strategic Bond 2007 5,661 8.23 46,614 3.59 1.40 8.16 Sub-Account 2006 6,741 7.61 51,318 4.20 1.40 6.00 2005 6,741 7.18 48,414 5.03 1.40 1.24 2004 15,760 7.09 111,803 7.67 1.40 7.16 2003 38,061 6.62 252,302 6.49 1.40 16.43 Oppenheimer Main Street 2007 492,857 10.26 - 17.46 8,314,186 0.03 0.95 - 1.75 (13.41) - (2.47) Small-Cap Sub-Account 2006 17,793 10.53 187,405 0.15 1.40 13.40 2005 20,466 9.29 190,080 -- 1.40 8.40 2004 22,744 8.57 194,871 -- 1.40 17.76 2003 25,050 7.28 182,493 -- 1.40 42.36 Oppenheimer Money 2007 28,881 5.83 168,352 4.98 1.40 3.52 Sub-Account 2006 33,346 5.63 187,777 4.54 1.40 3.26 2005 35,829 5.45 195,378 2.77 1.40 1.44 2004 55,454 5.38 297,947 0.82 1.40 (0.42) 2003 100,223 5.40 541,687 0.95 1.40 (0.61) Fidelity VIP Asset Manager 2007 11,728,296 12.10 - 12.42 143,069,941 6.10 0.89 - 1.40 12.69 - 14.48 Sub-Account 2006 13,137,764 10.62 - 10.85 140,644,002 2.76 0.89 - 1.40 5.83 - 6.37 2005 14,833,146 10.10 - 10.20 149,964,735 2.76 0.89 - 1.40 2.60 - 3.12 2004 16,742,417 9.84 - 9.89 165,013,843 2.75 0.89 - 1.40 4.00 - 4.53 2003 18,335,507 9.46 - 9.46 173,444,974 3.56 0.89 - 1.40 16.34 - 16.93
130 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------ ------------------------------------------- UNIT VALUE/1/ INVESTMENT/2/ EXPENSE RATIO/3/ TOTAL RETURN/4/ LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- ------------- ----------- ------------ --------------- -------------- Fidelity VIP Growth 2007 14,370,091 16.58 - 16.86 239,237,615 0.83 0.89 - 1.40 24.72 -25.83 Sub-Account 2006 16,167,140 13.24 - 13.40 214,865,663 0.40 0.89 - 1.40 5.37 - 5.91 2005 18,327,783 12.57 - 12.65 231,030,576 0.51 0.89 - 1.40 4.33 - 4.86 2004 20,811,605 12.05 - 12.06 251,467,598 0.27 0.89 - 1.40 1.94 - 2.46 2003 22,744,437 11.77 - 11.82 269,906,711 0.27 0.89 - 1.40 31.00 - 31.67 Fidelity VIP Contrafund 2007 16,613,759 12.51 - 50.32 377,396,997 0.95 0.89 - 2.25 14.88 -16.54 Sub-Account 2006 17,625,464 10.73 - 40.96 338,418,167 1.29 0.89 - 2.25 9.11 - 10.73 2005 18,309,411 9.69 - 33.90 316,067,973 0.29 0.89 - 2.25 4.82 - 15.90 2004 18,632,563 8.36 - 14.91 278,932,413 0.33 0.89 - 1.40 13.87 - 14.45 2003 19,001,001 7.31 - 13.09 249,830,386 0.46 0.89 - 1.40 26.68 - 27.33 Fidelity VIP Overseas 2007 826,076 12.67 - 14.58 11,327,734 3.29 1.15 - 1.40 15.67 -15.96 Sub-Account 2006 951,985 10.93 - 12.59 11,259,345 0.91 1.15 - 1.40 16.44 - 16.73 2005 1,115,424 9.36 - 10.71 11,307,291 0.67 1.15 - 1.40 17.40 - 17.69 2004 1,305,755 7.95 - 9.12 11,248,151 1.22 1.15 - 1.40 12.05 - 12.33 2003 1,619,585 7.08 - 8.14 12,345,462 0.87 1.15 - 1.40 41.38 - 41.73 Fidelity VIP Equity-Income 2007 942,455 14.53 13,694,030 1.64 1.40 0.11 Sub-Account 2006 1,227,074 14.51 17,809,782 3.26 1.40 18.53 2005 1,681,844 12.25 20,594,607 1.71 1.40 4.40 2004 2,015,346 11.73 23,638,817 1.61 1.40 9.98 2003 2,369,870 10.67 25,308,360 1.89 1.40 28.52 Fidelity VIP Index 500 2007 7,211,573 17.03 - 17.44 122,812,705 3.57 0.89 - 1.35 4.02 - 4.50 Sub-Account 2006 8,294,641 16.29 - 16.69 135,796,690 1.77 0.89 - 1.40 14.12 - 14.71 2005 9,738,122 14.28 - 14.55 139,624,446 1.84 0.89 - 1.40 3.37 - 3.90 2004 11,319,391 13.81 - 14.01 157,054,492 1.34 0.89 - 1.40 9.07 - 9.63 2003 12,981,916 12.66 - 12.78 165,091,158 1.67 0.89 - 1.40 26.63 - 27.27 Fidelity VIP Money Market 2007 5,148,515 7.35 - 7.86 38,182,657 5.08 0.89 - 1.40 3.69 - 4.22 Sub-Account 2006 4,981,073 7.08 - 7.54 35,607,299 4.77 0.89 - 1.40 3.43 - 3.96 2005 4,560,029 6.85 - 7.25 31,496,514 3.00 0.89 - 1.40 1.61 - 2.12 2004 4,311,139 6.74 - 7.10 29,307,345 1.21 0.89 - 1.40 (0.21) - 0.30 2003 3,919,391 6.76 - 7.08 26,629,538 1.08 0.89 - 1.40 (0.40) - 0.10 Fidelity VIP Mid-Cap 2007 997,653 39.38 - 42.90 40,496,316 0.51 0.95 - 1.90 13.16 - 14.24 Sub-Account 2006 398,050 34.80 - 35.93 14,145,793 -- 1.50 - 1.90 10.29 - 10.73 2005 -- 31.55 - 32.45 -- -- 1.50 - 1.90 6.98 - 7.04 DWS International 2007 3,119,351 12.50 - 12.57 39,213,025 2.39 1.35 - 1.40 12.99 - 13.04 Sub-Account 2006 3,170,743 11.07 - 11.12 35,260,353 1.83 1.35 - 1.40 24.17 - 24.23 2005 3,098,930 8.91 - 8.95 27,740,668 1.56 1.35 - 1.40 14.56 - 14.61 2004 3,067,352 7.78 - 7.81 23,975,184 1.27 1.35 - 1.40 14.91 - 14.96 2003 3,132,281 6.77 - 6.79 21,155,108 0.76 1.35 - 1.40 26.04 - 25.98 MSF FI Mid-Cap Opportunities 2007 574,272 2.76 - 23.91 6,518,918 0.13 0.89 - 1.40 6.82 - 7.37 Sub-Account 2006 566,610 2.58 - 22.27 5,260,407 0.01 0.89 - 1.40 10.30 - 10.87 2005 579,118 2.34 - 20.09 4,104,050 -- 0.89 - 1.40 5.43 - 6.13 2004 614,837 2.22 - 18.93 3,336,741 0.76 0.89 - 1.40 15.56 - 17.19 2003 472,999 1.92 909,749 -- 1.40 32.71
131 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------ -------------------------------------------- UNIT VALUE/1/ INVESTMENT/2/ EXPENSE RATIO/3/ TOTAL RETURN/4/ LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- ------------- ----------- ------------ --------------- --------------- MSF FI Large Cap 2007 275,445 16.41 - 17.97 4,767,365 0.15 1.50 - 2.30 1.57 - 2.39 Sub-Account 2006 134,065 16.16 - 17.74 2,286,045 -- 1.40 - 2.30 3.73 - 4.67 MSF FI Value Leaders 2007 211,868 20.17 - 22.08 4,542,761 0.69 1.50 - 2.30 1.71 - 2.53 Sub-Account 2006 126,575 19.83 - 21.76 2,662,087 -- 1.40 - 2.30 7.04 - 8.00 MSF Russell 2000 Index 2007 481,904 6.97 - 19.23 8,015,832 0.93 0.89 - 1.40 (2.89) - (2.39) Sub-Account 2006 490,302 7.17 - 19.71 8,227,895 0.92 0.89 - 1.40 16.33 - 16.92 2005 508,847 6.17 - 16.85 7,123,561 0.67 0.89 - 1.40 3.05 - 3.58 2004 476,600 5.98 - 16.27 6,154,751 0.33 0.89 - 1.40 16.12 - 16.72 2003 229,747 5.15 - 13.94 2,230,425 0.26 0.89 - 1.40 44.04 - 44.77 MSF FI International Stock 2007 398,333 6.06 - 20.94 6,422,071 0.76 1.40 - 1.90 7.99 - 8.79 Sub-Account 2006 262,656 5.57 - 19.34 3,232,921 0.70 1.40 - 1.90 14.05 - 14.87 2005 140,779 4.85 - 14.55 683,055 0.67 1.40 - 1.90 8.23 - 16.37 2004 120,078 4.17 500,667 1.24 1.40 16.55 2003 102,075 3.58 365,662 0.63 1.40 26.26 MSF MetLife Stock Index 2007 17,885,006 13.05 - 51.54 299,989,839 0.90 0.89 - 2.35 2.52 - 4.30 Sub-Account 2006 19,358,596 12.71 - 49.42 313,093,531 1.81 0.89 - 2.35 12.52 - 14.44 2005 21,140,946 11.41 - 43.18 301,690,699 1.44 0.89 - 2.35 1.96 - 3.71 2004 20,771,866 11.19 - 41.64 289,969,197 0.76 0.89 - 2.35 7.71 - 9.55 2003 15,022,146 10.39 - 38.01 205,557,582 1.65 0.89 - 2.35 20.39 - 27.07 MSF BlackRock Legacy 2007 31,453 33.18 - 35.25 1,046,603 0.17 0.89 - 1.35 17.12 - 17.66 Large-Cap Growth 2006 19,004 28.33 - 29.96 538,656 0.12 0.89 - 1.35 2.74 - 3.21 Sub-Account 2005 16,067 27.57 - 29.03 443,189 0.38 0.89 - 1.35 5.57 - 6.06 2004 11,623 26.12 - 27.37 303,907 -- 0.89 - 1.35 7.35 - 7.85 2003 8,406 24.33 - 24.55 204,813 -- 1.25 - 1.35 33.34 - 33.47 MSF BlackRock Strategic Value 2007 625,394 20.66 - 21.39 12,924,658 0.30 0.89 - 1.35 (4.75) - (4.31) Sub-Account 2006 613,247 21.69 - 22.35 13,305,490 0.31 0.89 - 1.35 15.17 - 15.70 2005 598,942 18.84 - 19.32 11,283,336 -- 0.89 - 1.35 2.76 - 3.23 2004 500,254 18.33 - 18.71 9,178,131 -- 0.89 - 1.35 13.79 - 14.32 2003 170,814 16.11 - 16.37 2,754,861 -- 0.89 - 1.35 48.13 - 48.81 MSF BlackRock Bond Income 2007 654,278 39.89 - 58.33 30,160,113 2.44 0.89 - 2.30 3.70 - 5.35 Sub-Account 2006 261,942 38.47 - 55.36 11,911,372 2.91 0.89 - 2.30 1.90 - 3.49 2005 69,533 47.73 - 53.56 3,363,782 3.39 0.89 - 1.40 0.99 - 1.51 2004 41,397 47.26 - 52.70 1,980,546 3.19 0.89 - 1.40 2.98 - 3.50 2003 14,179 46.37 - 50.92 658,735 -- 0.89 - 1.35 4.43 - 4.92 MSF BlackRock Large-Cap Value 2007 251,656 14.92 - 15.31 3,754,451 0.91 0.89 - 1.35 2.00 - 2.47 Sub-Account 2006 154,904 14.62 - 14.94 2,265,770 1.04 0.89 - 1.35 17.73 - 18.27 2005 77,212 12.42 - 12.63 959,195 0.83 0.89 - 1.35 4.57 - 5.05 2004 51,124 11.88 - 12.03 607,734 -- 0.89 - 1.35 11.88 - 12.40 2003 19,981 10.62 - 10.64 212,385 1.28 1.25 - 1.35 33.86 - 33.99
132 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------ -------------------------------------------- UNIT VALUE/1/ INVESTMENT/2/ EXPENSE RATIO/3/ TOTAL RETURN/4/ LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- ------------- ----------- ------------ --------------- --------------- MSF Lehman Brothers Aggregate 2007 436,992 14.29 - 14.90 6,246,008 4.31 0.89 - 1.35 5.43 - 5.92 Bond Index Sub-Account 2006 340,120 13.55 - 14.07 4,610,137 4.38 0.89 - 1.35 2.73 - 3.20 2005 300,648 13.19 - 13.63 3,972,358 3.46 0.89 - 1.35 0.70 - 1.16 2004 175,612 13.10 - 13.48 2,302,498 2.68 0.89 - 1.35 2.80 - 3.17 2003 55,030 12.76 - 12.82 702,781 -- 1.25 - 1.35 2.24 - 2.35 MSF Harris Oakmark Large Cap 2007 439,738 14.33 - 14.95 6,305,464 0.80 0.89 - 1.35 (5.09) - (4.65) Value Sub-Account 2006 420,888 15.10 - 15.68 6,357,636 0.75 0.89 - 1.35 16.53 - 17.07 2005 423,013 12.96 - 13.39 5,483,921 0.68 0.89 - 1.35 (2.70) - (2.25) 2004 333,624 13.32 - 13.70 4,447,364 0.45 0.89 - 1.35 10.03 - 10.43 2003 144,358 12.12 - 12.18 1,751,217 -- 1.25 - 1.35 23.81 - 23.94 MSF Morgan Stanley EAFE Index 2007 1,079,041 17.30 - 18.05 18,684,621 1.93 0.89 - 1.35 9.32 - 9.83 Sub-Account 2006 910,003 15.83 - 16.43 14,411,542 1.63 0.89 - 1.35 24.04 - 24.61 2005 636,754 12.76 - 13.19 8,127,890 1.48 0.89 - 1.35 11.73 - 12.24 2004 350,801 11.42 - 11.75 4,010,502 0.56 0.89 - 1.35 18.04 - 18.58 2003 110,435 9.67 - 9.91 1,069,948 -- 0.89 - 1.35 35.79 - 36.42 MSF MFS Total Return 2007 1,100,140 38.88 - 54.24 50,198,332 1.84 0.89 - 2.30 1.79 - 3.45 Sub-Account 2006 647,027 38.20 - 52.44 29,037,432 1.84 0.89 - 2.30 9.43 - 11.22 2005 183,329 42.86 - 47.15 7,938,057 1.60 0.89 - 1.40 1.69 - 2.21 2004 97,363 42.15 - 46.13 4,141,052 2.14 0.89 - 1.40 9.70 - 10.27 2003 19,756 38.75 - 41.84 766,951 -- 0.89 - 1.35 15.43 - 15.97 MSF MetLife Mid-Cap Stock 2007 886,564 16.94 - 17.54 15,036,423 0.79 0.89 - 1.35 6.33 - 6.82 Index Sub-Account 2006 751,885 15.93 - 16.42 11,992,134 1.17 0.89 - 1.35 8.62 - 9.12 2005 538,128 14.67 - 15.04 7,899,398 0.64 0.89 - 1.35 10.77 - 11.28 2004 364,852 13.24 - 13.52 4,837,054 0.39 0.89 - 1.35 14.49 - 15.02 2003 128,276 11.57 - 11.75 1,485,897 -- 0.89 - 1.35 33.16 - 33.77 MSF Davis Venture Value 2007 39,936,774 14.23 - 42.70 599,873,294 0.67 0.89 - 2.35 1.99 - 3.65 Sub-Account 2006 43,433,483 13.94 - 41.19 632,598,729 0.71 0.89 - 2.35 11.76 - 13.57 2005 44,607,893 12.62 - 36.27 574,773,194 0.51 0.89 - 2.35 7.59 - 9.32 2004 54,052,906 11.73 - 33.18 639,730,420 0.45 0.89 - 2.35 9.53 - 11.37 2003 39,457,451 10.71 - 29.79 422,760,202 0.54 0.89 - 2.35 25.13 - 29.71 MSF Harris Oakmark Focused 2007 18,551,932 15.69 - 40.39 316,048,072 0.35 0.89 - 2.35 (9.25) - (7.67) Value Sub-Account 2006 21,686,262 17.28 - 43.74 402,048,625 0.11 0.89 - 2.35 9.58 - 11.46 2005 23,942,954 15.94 - 39.25 399,066,263 -- 0.89 - 2.35 7.17 - 9.01 2004 27,909,852 14.88 - 36.00 424,832,489 -- 0.89 - 2.35 7.10 - 8.96 2003 29,640,348 13.89 - 33.04 413,588,774 0.09 0.89 - 2.35 26.99 - 31.48 MSF Jennison Growth 2007 14,275,390 2.70 - 13.10 182,244,421 0.19 1.30 - 2.35 8.79 - 10.11 Sub-Account 2006 15,655,366 2.45 - 11.92 182,151,002 -- 1.30 - 2.35 0.15 - 1.20 2005 15,959,598 2.42 - 11.44 184,124,042 -- 1.40 - 2.35 10.91 - 20.37 2004 22,012,332 10.31 - 10.51 229,058,863 0.01 1.30 - 2.35 6.40 - 7.53 2003 18,943,891 9.69 - 9.77 184,022,742 0.14 1.30 - 2.35 20.13 - 28.02 MSF BlackRock Money Market 2007 22,951,175 10.16 - 25.09 241,601,183 4.74 1.15 - 2.35 2.37 - 3.61 Sub-Account 2006 18,324,659 9.91 - 24.22 187,577,920 4.50 1.30 - 2.35 2.13 - 3.20 2005 12,431,418 9.82 - 23.43 123,785,657 2.01 1.30 - 2.35 0.42 - 1.47 2004 1,856 23.09 42,787 0.70 1.40 (0.42)
133 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------- -------------------------------------------- UNIT VALUE/1/ INVESTMENT/2/ EXPENSE RATIO/3/ TOTAL RETURN/4/ LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) --------- ------------- ---------- ------------ --------------- --------------- MSF T. Rowe Price Small-Cap 2007 77,656 16.25 - 18.44 1,279,290 -- 0.89 - 1.40 8.32 - 8.88 Growth Sub-Account 2006 73,595 15.00 - 16.94 1,115,539 -- 0.89 - 1.40 2.46 - 2.98 2005 63,311 14.64 - 16.45 932,545 -- 0.89 - 1.40 9.47 - 10.19 2004 31,008 13.38 - 14.93 418,893 -- 0.89 - 1.40 9.54 - 11.08 MSF Western Asset Management 2007 2,760,203 14.93 - 17.61 44,641,935 2.32 0.95 - 2.30 1.76 - 3.04 U. S. Government 2006 1,527,142 14.41 - 16.38 24,039,423 1.66 1.30 - 2.35 1.51 - 2.58 Sub-Account 2005 391,235 14.20 - 15.96 6,040,783 -- 1.30 - 2.35 (0.73) - (0.04) MSF Oppenheimer Global Equity 2007 501,067 19.16 - 21.24 9,987,034 0.71 0.95 - 1.90 4.25 - 5.25 Sub-Account 2006 195,337 18.38 - 19.12 3,691,502 0.20 1.50 - 1.90 14.17 - 14.62 2005 -- 16.10 - 16.68 -- -- 1.50 - 1.90 6.63 - 6.70 MSF MetLife Aggressive Allocation 2007 189,794 12.50 - 12.74 2,403,475 0.05 1.55 - 2.25 0.96 - 1.67 Sub-Account 2006 101,305 12.39 - 12.57 1,267,689 -- 1.40 - 2.25 11.82 - 12.78 MSF MetLife Conservative Allocation 2007 242,633 11.07 - 11.20 2,702,849 -- 1.55 - 2.00 3.47 - 3.94 Sub-Account 2006 194,471 10.65 - 10.81 2,088,145 -- 1.40 - 2.25 3.88 - 4.76 MSF MetLife Conservative to 2007 392,909 11.42 - 11.59 4,529,792 -- 1.55 - 2.10 2.62 - 3.19 Moderate Allocation 2006 273,176 11.10 - 11.26 3,060,196 -- 1.40 - 2.25 6.08 - 6.98 Sub-Account MSF MetLife Moderate Allocation 2007 3,351,654 11.81 - 12.04 40,157,114 0.01 1.55 - 2.25 2.01 - 2.73 Sub-Account 2006 1,554,946 11.58 - 11.75 18,172,533 -- 1.40 - 2.25 8.31 - 9.23 MSF Moderate to Aggressive Allocation 2007 5,047,763 12.02 - 12.25 61,541,186 0.02 1.55 - 2.25 1.53 - 2.24 Sub-Account 2006 1,876,875 11.84 - 12.01 22,426,140 -- 1.40 - 2.25 9.59 - 10.53 Van Kampen LIT Strategic Growth 2007 1,659,770 5.28 - 5.59 9,156,031 -- 1.50 - 2.30 13.98 - 15.33 Sub-Account 2006 1,033,865 4.59 - 4.87 4,964,651 -- 1.40 - 2.30 0.30 - 1.43 2005 88,859 4.53 - 4.61 402,324 0.27 1.40 - 2.30 4.67 - 6.44 2004 108,230 4.25 460,401 -- 1.40 5.54 2003 131,352 4.03 530,047 -- 1.40 25.58 Van Kampen LIT Enterprise 2007 28,313 4.34 122,997 0.39 1.40 11.11 Sub-Account 2006 39,881 3.91 155,927 0.42 1.40 5.59 2005 43,297 3.70 160,313 0.71 1.40 6.65 2004 46,381 3.47 161,022 0.40 1.40 2.60 2003 50,200 3.38 170,007 0.52 1.40 24.13 Van Kampen LIT Growth & Income 2007 3,069,791 7.27 - 27.31 49,067,204 1.01 0.95 - 1.90 0.58 - 1.55 Sub-Account 2006 1,465,291 7.17 - 14.19 20,351,040 2.60 1.40 - 1.90 13.80 - 14.62 2005 43,633 6.26 - 12.16 272,973 1.17 1.40 - 1.90 2.34 - 8.46 2004 54,075 5.77 311,904 1.01 1.40 12.78 2003 61,622 5.11 315,500 0.87 1.40 26.26 Van Kampen Comstock 2007 5,188,036 14.46 - 16.01 77,264,934 1.17 0.95 - 1.90 (4.18) - (3.26) Sub-Account 2006 2,167,418 15.09 - 15.48 33,275,164 0.01 1.50 - 1.90 13.87 - 14.32 2005 -- 13.26 - 13.54 -- -- 1.50 - 1.90 4.60 - 4.67
134 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 ------------------------------------- UNIT VALUE/1/ LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) --------- ------------ ---------- Federated Equity Income 2007 5,473 5.70 31,173 Sub-Account 2006 17,127 5.66 96,942 2005 18,507 4.66 86,264 2004 20,644 4.57 94,430 2003 81,743 4.11 336,474 Federated High Income Bond 2007 18,999 6.68 126,835 Sub-Account 2006 20,273 6.55 132,703 2005 22,143 5.99 132,652 2004 31,469 5.92 186,227 2003 48,364 5.43 263,099 Federated Mid-Cap Growth Strategy 2007 20,874 6.70 139,853 Sub-Account 2006 32,906 5.76 189,442 2005 35,001 5.39 188,801 2004 38,902 4.85 188,806 2003 47,399 4.26 202,365 Neuberger Genesis Trust 2007 927 15.13 14,022 Sub-Account 2006 1,051 12.53 13,167 2005 1,183 11.79 13,953 2004 1,371 10.23 14,030 2003 2,060 8.70 16,629 Alger American Small Capitalization 2007 7,147,895 11.01 - 11.13 79,134,670 Sub-Account 2006 7,749,990 9.53 - 9.61 74,178,889 2005 8,307,133 8.05 - 8.11 67,142,470 2004 9,017,916 6.98 - 7.03 63,245,357 2003 9,758,550 6.08 - 6.10 59,524,857 T. Rowe Price Growth 2007 118,255 88.67 10,486,221 Sub-Account 2006 128,359 81.07 10,405,667 2005 142,212 71.72 10,198,928 2004 162,635 67.90 11,049,157 2003 171,175 62.15 10,622,175 T. Rowe Price International 2007 87,971 15.52 1,365,106 Sub-Account 2006 96,658 13.80 1,334,230 2005 102,719 11.68 1,199,507 2004 107,931 10.13 1,094,227 2003 117,827 8.98 1,054,871 T. Rowe Price Prime Reserve 2007 96,955 18.05 1,750,411 Sub-Account 2006 87,463 17.37 1,519,155 2005 82,793 16.76 1,387,505 2004 69,819 16.46 1,149,982 2003 87,209 16.48 1,437,342 Janus Aspen Worldwide Growth 2007 1,182 8.40 9,932 Sub-Account 2006 1,276 7.73 9,873 2005 1,375 6.60 9,075 2004 1,477 6.29 9,304 2003 1,585 6.06 6,753
FOR THE YEAR ENDED DECEMBER 31 ---------------------------------------- INVESTMENT/2/ EXPENSE RATIO/3/ TOTAL RETURN/4/ INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------ --------------- -------------- Federated Equity Income 4.43 1.40 0.63 Sub-Account 2.18 1.40 21.43 2.24 1.40 1.90 3.43 1.40 11.27 1.93 1.40 25.51 Federated High Income Bond 7.93 1.40 1.98 Sub-Account 8.52 1.40 9.27 8.76 1.40 1.23 8.60 1.40 8.92 7.69 1.40 20.52 Federated Mid-Cap Growth Strategy -- 1.40 16.37 Sub-Account -- 1.40 6.73 -- 1.40 11.14 -- 1.40 13.82 -- 1.40 38.13 Neuberger Genesis Trust 0.14 0.89 20.72 Sub-Account 1.05 0.89 6.31 -- 0.89 15.27 0.15 0.89 17.62 -- 0.89 30.49 Alger American Small Capitalization -- 1.25 - 1.40 15.60 - 15.78 Sub-Account -- 1.25 - 1.40 18.35 - 18.53 -- 1.25 - 1.40 15.26 - 15.43 -- 1.25 - 1.40 14.95 - 15.12 -- 1.25 - 1.40 40.37 - 40.58 T. Rowe Price Growth 0.60 0.89 9.38 Sub-Account 0.62 0.89 5.62 0.07 0.89 5.62 0.59 1.25 9.26 0.16 0.89 30.06 T. Rowe Price International 1.62 0.89 12.42 Sub-Account 1.20 0.89 18.21 1.45 0.89 15.24 1.20 0.89 12.88 0.74 0.89 30.12 T. Rowe Price Prime Reserve 4.77 0.89 3.94 Sub-Account 4.55 0.89 3.64 2.70 0.89 1.81 0.81 0.89 (0.10) 0.69 0.89 (0.30) Janus Aspen Worldwide Growth 0.76 0.89 8.65 Sub-Account 1.77 0.89 17.16 1.36 0.89 4.93 1.00 0.89 3.85 0.01 0.89 22.89
135 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------- -------------------------------------------- UNIT VALUE/1/ INVESTMENT/2/ EXPENSE RATIO/3/ TOTAL RETURN/4/ LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) --------- --------------- ----------- ------------ --------------- --------------- American Funds Global Small 2007 985,561 34.16 - 37.13 35,036,450 2.98 0.89 - 1.75 19.31 - 20.35 Capitalization Sub-Account 2006 666,735 29.64 - 30.85 19,777,453 0.46 0.89 - 1.35 22.39 - 22.96 2005 470,780 24.22 - 25.09 11,408,824 0.90 0.89 - 1.35 23.68 - 24.24 2004 282,816 19.58 - 20.19 5,545,295 -- 0.89 - 1.35 19.26 - 19.81 2003 77,922 16.42 - 16.85 1,281,166 0.07 0.89 - 1.35 51.47 - 52.17 American Funds Growth 2007 1,458,315 142.42 - 199.51 245,762,919 0.98 0.89 - 2.30 9.78 - 11.35 Sub-Account 2006 729,519 129.74 - 179.18 111,503,370 1.17 0.89 - 2.30 7.72 - 9.24 2005 208,063 120.44 - 164.02 30,740,407 0.78 0.89 - 2.30 6.63 - 15.16 2004 132,705 129.36 - 142.42 17,199,760 0.21 0.89 - 1.35 10.98 - 11.50 2003 59,754 116.56 - 127.74 6,979,020 0.16 0.89 - 1.35 34.97 - 35.60 American Funds Growth-Income 2007 1,369,874 96.80 - 135.60 156,224,069 1.92 0.89 - 2.30 2.64 - 4.11 Sub-Account 2006 687,630 94.31 - 130.25 76,344,065 2.27 0.89 - 2.30 12.59 - 14.18 2005 199,680 83.76 - 114.07 20,563,346 1.49 0.89 - 2.30 4.51 - 4.90 2004 137,919 98.77 - 108.74 13,647,442 1.15 0.89 - 1.35 8.89 - 9.39 2003 53,632 90.71 - 99.40 4,876,338 1.38 0.89 - 1.35 30.65 - 31.25 American Funds Global Growth 2007 3,676,314 26.64 - 30.77 104,847,881 3.27 0.95 - 2.30 12.22 - 13.76 Sub-Account 2006 1,374,016 23.74 - 25.90 34,540,668 0.78 1.40 - 2.30 17.70 - 18.76 2005 22,386 20.17 - 21.81 473,459 -- 1.40 - 2.30 7.09 - 7.25 American Funds Bond 2007 413,860 15.27 - 16.64 6,639,941 8.01 0.95 - 1.75 0.28 - 2.19 Sub-Account (c) AllianceBernstein Large-Cap 2007 29,088 35.49 - 37.77 1,081,236 -- 1.50 - 1.90 11.46 - 11.91 Growth Sub-Account 2006 19,969 31.84 - 33.74 665,657 -- 1.50 - 1.90 (2.54) - (2.15) 2005 -- 32.67 - 34.49 -- -- 1.50 - 1.90 5.62 - 5.69 FTVIPT Franklin Templeton 2007 1,494,843 15.37 - 25.43 26,039,062 2.07 1.55 - 2.30 25.84 - 26.79 Developing Markets 2006 764,911 12.21 - 20.23 11,178,712 1.22 1.40 - 2.30 25.19 - 26.31 Sub-Account 2005 21,537 9.76 - 16.02 230,232 -- 1.40 - 2.30 10.70 - 10.86 FTVIPT Franklin Mutual Shares 2007 3,006,411 22.90 - 25.46 71,392,728 1.37 0.95 - 1.90 1.52 - 2.50 Securities Sub-Account 2006 1,273,727 22.56 - 23.49 29,530,718 0.99 1.50 - 1.90 16.16 - 16.62 2005 11,181 18.72 - 20.33 217,513 -- 1.40 - 2.30 4.64 - 4.79 FTVIPT Franklin Templeton 2007 1,778,828 15.73 - 36.77 56,498,732 1.81 1.55 - 2.30 12.82 - 13.67 Foreign Securities 2006 946,611 13.88 - 32.88 24,137,809 1.33 1.40 - 2.30 18.69 - 19.76 Sub-Account 2005 33,847 11.86 - 25.00 813,751 -- 1.40 - 2.30 4.87 - 5.02 FTVIPT Franklin Templeton 2007 2,063,301 13.72 - 19.85 38,096,365 1.31 0.95 - 1.90 0.41 - 1.37 Growth Securities 2006 784,417 18.41 - 19.72 15,182,959 0.76 1.50 - 1.90 19.52 - 20 Sub-Account 2005 -- 15.41 - 15.57 -- -- 1.50 - 1.90 4.78 - 4.84 FTVIPT Franklin Income 2007 1,974,360 39.38 - 50.37 88,519,218 3.16 0.95 - 2.25 1.44 - 2.77 Securities Sub-Account 2006 664,025 38.83 - 45.21 28,820,820 2.35 1.40 - 2.25 15.62 - 16.60 2005 4,136 33.58 - 38.78 150,925 -- 1.40 - 2.25 0.82 - 0.96 FTVIPT Franklin Templeton 2007 318,925 12.27 - 13.18 4,080,871 0.01 0.95 - 1.75 3.66 - 9.78 Global Income Securities Sub-Account (c)
136 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------ ---------------------------------------------- UNIT VALUE/1/ INVESTMENT/2/ EXPENSE RATIO/3/ TOTAL RETURN/4/ LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- ------------- ----------- ------------ --------------- ----------------- FTVIPT Franklin Templeton 2007 251,664 8.75 - 8.79 2,208,487 -- 0.95 - 1.75 (14.60) - (3.45) Small Cap Value Securities Sub-Account (c) Van Kampen UIF Equity and 2007 10,934,412 14.95 - 15.63 166,104,798 2.06 0.95 - 1.90 1.41 - 2.38 Income Sub-Account 2006 4,592,861 14.74 - 14.96 68,376,576 0.79 1.50 - 1.90 10.46 - 10.91 2005 -- 13.34 - 13.49 -- -- 1.50 - 1.90 2.16 - 2.22 Van Kampen UIF U.S Real 2007 2,043,530 24.02 - 49.19 52,908,525 2.27 0.95 - 1.90 (18.64) - (17.86) Estate Sub-Account 2006 928,174 29.52 - 30.20 27,806,209 0.66 1.50 - 1.90 35.46 - 36.00 2005 -- 21.8 - 22.20 -- -- 1.50 - 1.90 7.52 - 7.59 Van Kampen UIF U.S. Mid-Cap 2007 257,428 10.95 - 11.05 2,833,669 0.17 0.95 - 1.75 (6.13) - (6.63) Value Sub-Account (c) Pioneer VCT Mid-Cap 2007 813,072 31.43 - 35.50 26,728,784 0.54 0.95 - 1.90 3.35 - 4.34 Sub-Account 2006 262,287 30.41 - 31.88 8,219,057 -- 1.50 - 1.90 10.16 - 10.60 2005 -- 27.60 - 28.83 -- -- 1.50 - 1.90 6.23 - 6.29 LMPVET Small Cap 2007 754,675 13.77 - 17.53 10,904,358 -- 1.10 - 2.30 7.50 - 8.80 Growth Sub-Account 2006 325,638 12.81 - 13.36 4,282,564 0.46 1.40 - 2.30 10.21 - 11.20 2005 15,787 11.63 - 12.01 187,061 -- 1.40 - 2.30 5.33 - 5.49 LMPVET Investors 2007 279,645 15.98 - 17.30 4,699,165 1.52 1.50 - 2.30 1.53 - 2.35 Sub-Account 2006 130,370 15.74 - 17.05 2,127,448 2.98 1.40 - 2.30 15.58 - 16.62 2005 6,750 13.62 - 14.62 95,594 1.12 1.40 - 2.30 3.58 - 3.73 LMPV Capital and Income 2007 -- -- -- 0.71 1.50 - 1.90 5.04 - 5.17 Sub-Account (a) 2006 3,099,287 11.58 - 11.66 36,059,191 3.42 1.50 - 1.90 9.10 - 9.54 2005 -- 10.61 - 10.64 -- -- 1.50 - 1.90 1.65 - 1.71 LMPVET Equity Index 2007 2,276,152 9.89 - 29.42 66,117,281 2.15 1.55 - 2.90 2.17 - 3.30 Sub-Account 2006 1,440,692 9.61 - 10.25 41,031,761 3.98 1.40 - 2.90 12.51 - 13.52 2005 2,224 25.69 - 9.03 19,773 1.22 1.40 - 2.90 3.64 - 3.83 LMPVET Fundamental Value 2007 2,440,021 31.33 - 37.72 84,463,307 1.55 0.95 - 2.30 (1.05) - (0.31) Sub-Account 2006 1,257,495 31.66 - 35.61 43,419,332 3.96 1.40 - 2.30 14.15 - 15.18 2005 1,160 27.73 - 30.92 34,376 0.96 1.40 - 2.30 3.30 - 3.45 2004 -- -- -- -- -- -- 2003 -- -- -- -- -- -- LMPVET Appreciation 2007 2,591,844 15.95 - 36.42 83,497,462 1.37 0.95 - 2.30 1.22 - 7.39 Sub-Account 2006 1,236,956 27.95 - 32.05 38,211,834 2.66 1.40 - 2.30 12.19 - 13.21 2005 1,722 24.91 - 28.31 47,007 0.48 1.40 - 2.30 2.32 - 2.47 LMPVET Aggressive Growth 2007 9,406,900 13.02 - 15.26 127,959,661 -- 0.95 - 2.30 (0.82) - 0.54 Sub-Account 2006 5,468,811 13.12 - 13.68 73,942,504 -- 1.40 - 2.30 6.32 - 7.28 2005 15,934 12.34 - 12.75 200,186 -- 1.40 - 2.30 3.53 - 3.68 LMPVET Large Cap Growth 2007 699,543 13.49 - 14.58 9,921,012 0.05 1.50 - 2.30 2.90 - 3.73 Sub-Account 2006 433,171 13.11 - 14.18 5,945,005 0.30 1.40 - 2.30 2.22 - 3.15 2005 15,016 12.83 - 13.74 201,094 0.12 1.40 - 2.30 4.17 - 4.33
137 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. FINANCIAL HIGHLIGHTS -- (CONTINUED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------- -------------------------------------------- UNIT VALUE/1/ INVESTMENT/2/ EXPENSE RATIO/3/ TOTAL RETURN/4/ LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) --------- ------------- ---------- ------------ --------------- --------------- LMPV Large Cap Value 2007 -- -- -- 0.46 1.50 - 1.90 5.01 - 5.15 Sub-Account (a) 2006 47,187 23.80 - 25.02 1,166,335 2.30 1.50 - 1.90 16.05 - 16.52 2005 -- 20.51 - 21.48 -- -- 1.50 - 1.90 3.64 - 3.71 LMPVET Social Awareness 2007 19,022 28.57 - 30.42 565,965 1.84 1.50 - 1.90 8.80 - 9.24 Sub-Account 2006 10,361 26.26 - 27.85 281,509 1.25 1.50 - 1.90 5.67 - 6.09 2005 -- 24.85 - 26.25 -- -- 1.50 - 1.90 3.13 - 3.20 LMPVET Capital and Income 2007 4,737,273 12.15 - 15.28 59,957,587 1.99 1.10 - 1.90 0.27 - 5.14 Sub-Account (^) 2006 154,474 14.18 - 14.70 2,252,417 2.55 1.40 - 2.25 9.67 - 10.61 2005 2,660 12.93 - 13.29 35,068 0.84 1.40 - 2.25 2.63 - 2.77 LMPVET Multi-Discipline 2007 -- -- -- 0.71 1.50 - 2.30 1.26 - 1.96 Sub-Account-Large Cap 2006 77,203 15.58 - 16.19 1,228,885 1.69 1.40 - 2.30 9.73 - 10.72 Growth and Value (d) 2005 2,136 14.20 - 14.62 30,931 0.63 1.40 - 2.30 3.24 - 3.39 LMPVET Capital 2007 542,230 16.11 - 16.80 8,963,789 0.52 1.50 - 2.30 (0.48) - 0.32 Sub-Account 2006 284,789 16.19 - 16.82 4,710,142 0.93 1.40 - 2.30 11.04 - 12.04 2005 9,633 14.58 - 15.01 142,551 0.35 1.40 - 2.30 3.40 - 3.55 LMPVET Global Equity 2007 417,802 18.13 - 18.61 7,705,323 0.61 1.50 - 2.00 2.82 - 3.34 Sub-Account 2006 290,262 17.41 - 18.08 5,189,364 1.84 1.40 - 2.30 12.59 - 13.60 2005 10,041 15.46 - 15.92 159,052 0.46 1.40 - 2.30 3.79 - 3.94 LMPV Premier Selections 2007 -- -- -- 0.10 1.50 - 1.65 6.43 - 6.48 All Cap Growth 2006 16,983 12.15 - 12.51 211,218 -- 1.50 - 1.90 5.32 - 5.74 Sub-Account (a) 2005 -- 11.53 - 11.83 -- -- 1.50 - 1.90 4.26 - 4.33 LMPVET Dividend Strategy 2007 834,706 9.41 - 10.05 8,243,529 2.90 1.50 - 2.30 4.02 - 4.86 Sub-Account 2006 321,925 9.04 - 9.59 3,032,256 5.84 1.50 - 2.30 15.26 - 16.18 2005 3,967 7.85 - 8.25 31,996 1.35 1.50 - 2.30 1.96 - 2.09 LMPV Growth and Income 2007 -- -- -- 0.12 1.50 - 1.90 4.51 - 4.65 Sub-Account (a) 2006 351,206 10.05 - 28.80 3,608,020 1.57 1.50 - 2.90 10.37 - 12.11 2005 -- 9.11 - 9.34 -- -- 1.50 - 1.90 4.41 - 4.47 LMPVET Lifestyle Allocation 50% 2007 590,437 15.45 - 16.14 9,409,255 5.14 1.50 - 1.90 1.26 - 1.67 Sub-Account 2006 177,614 13.97 - 15.88 2,794,996 5.99 1.50 - 1.90 6.19 - 6.61 2005 -- 14.37 - 14.89 -- -- 1.50 - 1.90 2.97 - 3.03 LMPVET Lifestyle Allocation 70% 2007 250,067 14.23 - 14.86 3,668,950 4.65 1.50 - 1.90 1.87 - 2.28 Sub-Account 2006 23,381 13.97 - 14.53 336,900 3.81 1.50 - 1.90 6.81 - 7.24 2005 -- 13.08 - 13.55 -- -- 1.50 - 1.90 3.86 - 3.93 LMPVET Lifestyle Allocation 85% 2007 1,057,927 14.80 - 16.41 16,581,727 5.12 0.95 - 1.90 1.41 - 2.38 Sub-Account 2006 21,392 14.59 - 15.18 320,998 1.97 1.50 - 1.90 7.41 - 7.84 2005 -- 13.59 - 14.08 -- -- 1.50 - 1.90 3.84 - 3.90 LMPVIT Adjustable Rate Income 2007 310,564 10.02 - 10.28 3,178,900 5.20 1.50 - 2.10 (0.76) - (0.16) Sub-Account 2006 216,326 10.04 - 10.33 2,220,514 11.96 1.40 - 2.25 1.79 - 2.66 2005 351 9.87 - 10.06 3,504 3.00 1.40 - 2.25 0.29 - 0.42
138 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. FINANCIAL HIGHLIGHTS -- (CONCLUDED)
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------- -------------------------------------------- UNIT VALUE/1/ INVESTMENT/2/ EXPENSE RATIO/3/ TOTAL RETURN/4/ LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) --------- ------------- ---------- ------------ --------------- --------------- LMPVIT Global High Yield Bond 2007 2,527,054 15.11 - 16.97 40,738,484 9.95 1.10 - 2.30 (2.35) - (1.17) Sub-Account 2006 1,039,676 15.48 - 16.73 16,994,644 15.93 1.40 - 2.30 8.13 - 9.11 2005 3,458 14.31 - 15.33 51,516 6.03 1.40 - 2.30 1.28 - 1.42 LMPVIT Money Market 2007 3,326,218 12.23 - 14.61 44,647,513 4.76 0.95 - 2.30 2.51 - 3.91 Sub-Account 2006 1,600,672 11.93 - 13.35 20,676,751 4.63 1.40 - 2.30 2.26 - 3.18 2005 15,276 11.66 - 12.94 190,202 0.15 1.40 - 2.30 0.25 - 0.40 2004 -- -- -- -- -- -- 2003 -- -- -- -- -- --
1 The Company sells a number of variable annuity products which have unique combinations of features and fees that are charged against the contract owner's account balance. Differences in the fee structures result in a variety of unit values, expense ratios, and total returns. 2 These amounts represent the dividends, excluding distributions of capital gains, received by the Sub-Account from the underlying portfolio, series, or fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense risk charges, that are assessed against the contract owner accounts either through reductions in the unit values or the redemption of units. The investment income ratio is calculated for each period indicated or from the effective date through the end of the reporting period. The recognition of investment income by the Sub-Account is affected by the timing of the declaration of dividends by the underlying portfolio, series, or fund in which the Sub-Account invests. 3 These amounts represent the annualized contract expenses of the Separate Account, consisting primarily of mortality and expense risk charges, for each period indicated. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying portfolio, series, or fund have been excluded. 4 These amounts represent the total return for the period indicated, including changes in the value of the underlying portfolio, series, or fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. As the total return is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract total returns are not within the ranges presented. (a)For the period January 1, 2007 to April 27, 2007. (b)For the period November 12, 2007 to December 31, 2007. (c)For the period June 1, 2007 to December 31, 2007. (d)For the period January 1, 2007 to November 9, 2007. (^)Formerly LMPV Multiple Discipline Sub-Account-Balanced All Cap Growth and Value. 139 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholder of MetLife Investors USA Insurance Company: We have audited the accompanying balance sheets of MetLife Investors USA Insurance Company (the "Company") as of December 31, 2007 and 2006, and the related statements of income, stockholder's equity, and cash flows for each of the three years in the period ended December 31, 2007. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of MetLife Investors USA Insurance Company as of December 31, 2007 and 2006, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2007, in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 14, the accompanying 2006 and 2005 financial statements have been restated. /s/ DELOITTE & TOUCHE LLP Certified Public Accountants Tampa, Florida April 3, 2008 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) BALANCE SHEETS DECEMBER 31, 2007 AND 2006 (IN MILLIONS, EXCEPT SHARE AND PER SHARE DATA)
2007 2006 ------- ------------ As Restated, See Note 14 ASSETS Investments: Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $4,322 and $4,056, respectively)............................................ $ 4,328 $ 4,077 Equity securities available-for-sale, at estimated fair value (cost: $11 and $19, respectively).................. 10 19 Mortgage loans on real estate............................... 405 478 Policy loans................................................ 39 37 Real estate joint ventures held-for-investment.............. 13 -- Other limited partnership interests......................... 200 33 Short-term investments...................................... 483 355 Other invested assets....................................... 26 16 ------- ------- Total investments........................................ 5,504 5,015 Cash and cash equivalents..................................... 91 38 Accrued investment income..................................... 54 55 Premiums and other receivables................................ 2,948 1,909 Deferred policy acquisition costs............................. 1,806 1,533 Current income tax recoverable................................ 14 120 Other assets.................................................. 567 578 Separate account assets....................................... 23,842 18,616 ------- ------- Total assets............................................. $34,826 $27,864 ======= ======= LIABILITIES AND STOCKHOLDER'S EQUITY LIABILITIES: Future policy benefits...................................... $ 444 $ 259 Policyholder account balances............................... 5,489 4,958 Other policyholder funds.................................... 1,374 1,221 Long-term debt -- affiliated................................ 435 435 Deferred income tax liability............................... 327 246 Payables for collateral under securities loaned and other transactions............................................. 928 901 Other liabilities........................................... 412 161 Separate account liabilities................................ 23,842 18,616 ------- ------- Total liabilities........................................ 33,251 26,797 ------- ------- CONTINGENCIES, COMMITMENTS AND GUARANTEES (NOTE 9) STOCKHOLDER'S EQUITY: Preferred stock, par value $1.00 per share; 200,000 shares authorized, issued and outstanding at December 31, 2007 and 2006........................................................ -- -- Common stock, par value $200.00 per share; 15,000 shares authorized; 11,000 shares issued and outstanding at December 31, 2007 and 2006........................................... 2 2 Additional paid-in capital.................................... 960 710 Retained earnings............................................. 621 356 Accumulated other comprehensive income (loss)................. (8) (1) ------- ------- Total stockholder's equity............................... 1,575 1,067 ------- ------- Total liabilities and stockholder's equity............... $34,826 $27,864 ======= =======
See accompanying notes to financial statements. F-2 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005 (IN MILLIONS)
2007 2006 2005 ------ ----- ---- AS RESTATED, SEE NOTE 14 REVENUES Premiums................................................... $ 154 $ 89 $ 59 Universal life and investment-type product policy fees..... 568 417 389 Net investment income...................................... 244 242 221 Other revenues............................................. 140 102 76 Net investment gains (losses).............................. 239 (107) (27) ------ ----- ---- Total revenues........................................ 1,345 743 718 ------ ----- ---- EXPENSES Policyholder benefits and claims........................... 192 87 58 Interest credited to policyholder account balances......... 247 235 216 Other expenses............................................. 537 358 304 ------ ----- ---- Total expenses........................................ 976 680 578 ------ ----- ---- Income before provision for income tax..................... 369 63 140 Provision for income tax................................... 104 3 34 ------ ----- ---- Net income................................................. $ 265 $ 60 $106 ====== ===== ====
See accompanying notes to financial statements. F-3 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) STATEMENTS OF STOCKHOLDER'S EQUITY FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005 (IN MILLIONS)
ACCUMULATED ADDITIONAL OTHER PREFERRED COMMON PAID-IN RETAINED COMPREHENSIVE STOCK STOCK CAPITAL EARNINGS INCOME (LOSS) TOTAL --------- ------ ---------- -------- ------------- ------ Balance at January 1, 2005................ $ -- $ 2 $398 $190 $ 36 $ 626 Comprehensive income (loss): Net income, as restated, see Note 14.... 106 106 Other comprehensive income (loss): Unrealized gains (losses) on derivative instruments, net of income tax......................... 1 1 Unrealized investment gains (losses), net of related offsets and income tax................................ (81) (81) ------ Other comprehensive income (loss).... (80) ------ Comprehensive income (loss)............. 26 ---- ---- ---- ---- ---- ------ Balance at December 31, 2005, as restated, see Note 14............................. -- 2 398 296 (44) 652 Contribution of intangible assets from MetLife, Inc., net of income tax........ 162 162 Capital contribution from MetLife Insurance Company of Connecticut........ 150 150 Comprehensive income (loss): Net income, as restated, see Note 14.... 60 60 Other comprehensive income (loss): Unrealized gains (losses) on derivative instruments, net of income tax......................... 1 1 Unrealized investment gains (losses), net of related offsets and income tax................................ 42 42 ------ Other comprehensive income (loss).... 43 ------ Comprehensive income (loss)............. 103 ---- ---- ---- ---- ---- ------ Balance at December 31, 2006, as restated, see Note 14............................. -- 2 710 356 (1) 1,067 Capital contribution from MetLife Insurance Company of Connecticut........ 250 250 Comprehensive income (loss): Net income.............................. 265 265 Other comprehensive income (loss): Unrealized gains (losses) on derivative instruments, net of income tax......................... (1) (1) Unrealized investment gains (losses), net of related offsets and income tax................................ (6) (6) ------ Other comprehensive income (loss).... (7) ------ Comprehensive income (loss)............. 258 ---- ---- ---- ---- ---- ------ Balance at December 31, 2007.............. $-- $2 $960 $621 $ (8) $1,575 ==== ==== ==== ==== ==== ======
See accompanying notes to financial statements. F-4 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005 (IN MILLIONS)
2007 2006 2005 ------- ------- ------- AS RESTATED, SEE NOTE 14 CASH FLOWS FROM OPERATING ACTIVITIES Net income.................................................. $ 265 $ 60 $ 106 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization expenses................. 9 4 -- Amortization of premiums and accretion of discounts associated with investments, net..................... (1) 6 15 (Gains) losses from sales of investments, net.......... (239) 107 27 Gain from recapture of ceded reinsurance............... (22) -- -- Interest credited to policyholder account balances..... 247 235 216 Universal life and investment-type product policy fees................................................. (568) (417) (389) Undistributed equity earnings of real estate joint ventures and other limited partnership interests..... 4 -- -- Change in accrued investment income.................... 1 (2) (13) Change in premiums and other receivables............... (331) (287) (526) Change in deferred policy acquisition costs, net....... (268) (324) (126) Change in insurance-related liabilities................ 243 169 164 Change in income tax recoverable....................... 191 11 220 Change in other assets................................. 288 193 86 Change in other liabilities............................ 248 (7) 96 ------- ------- ------- Net cash provided by (used in) operating activities......... 67 (252) (124) ------- ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES Sales, maturities and repayments of: Fixed maturity securities.............................. 1,463 2,213 1,943 Equity securities...................................... 7 -- -- Mortgage loans on real estate.......................... 105 111 24 Other limited partnership interests.................... 7 -- -- Purchases of: Fixed maturity securities.............................. (1,756) (1,936) (2,685) Mortgage loans on real estate.......................... (33) (141) (20) Real estate and real estate joint ventures............. (13) -- -- Other limited partnership interests.................... (178) (29) -- Net change in short-term investments...................... (128) (71) (153) Net change in other invested assets....................... (21) (73) (36) ------- ------- ------- Net cash (used in) provided by investing activities......... (547) 74 (927) ------- ------- ------- CASH FLOWS FROM FINANCING ACTIVITIES Policyholder account balances: Deposits............................................... 7,737 6,119 3,758 Withdrawals............................................ (7,481) (6,017) (3,398) Net change in payables for collateral under securities loaned and other transactions.......................... 27 (86) 197 Long-term debt issued..................................... -- -- 400 Capital contribution from MetLife Insurance Company of Connecticut............................................ 250 150 -- ------- ------- ------- Net cash provided by financing activities................... 533 166 957 ------- ------- ------- Change in cash and cash equivalents......................... 53 (12) (94) Cash and cash equivalents, beginning of year................ 38 50 144 ------- ------- ------- CASH AND CASH EQUIVALENTS, END OF YEAR...................... $ 91 $ 38 $ 50 ======= ======= ======= Supplemental disclosures of cash flow information: Net cash paid (received) during the year for: Interest............................................... $ 31 $ 31 $ 18 ======= ======= ======= Income tax............................................. $ (87) $ (9) $ (186) ======= ======= ======= Non-cash transactions during the year: Contribution of intangible assets from MetLife, Inc., net of deferred income tax (see Note 5).............. $ -- $ 162 $ -- ======= ======= =======
-------- See Note 6 for non-cash reinsurance transactions. See accompanying notes to financial statements. F-5 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) 1. BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BUSINESS MetLife Investors USA Insurance Company (the "Company"), a Delaware domiciled life insurance company is a wholly-owned subsidiary of MetLife Insurance Company of Connecticut ("MICC"). MICC is a subsidiary of MetLife, Inc. ("MetLife"). On October 11, 2006, the Company was transferred from MetLife Investors Group, Inc. ("MLIG") to MICC. Prior to October 11, 2006, the Company was a wholly-owned subsidiary of MLIG. The Company markets, administers and insures a broad range of term life and universal life insurance policies and variable and fixed annuity contracts. Since the Company is a member of a controlled group of affiliated companies, its results may not be indicative of those of a stand-alone entity. BASIS OF PRESENTATION The Company uses the equity method of accounting for investments in real estate joint ventures and other limited partnership interests in which it has more than a minor equity interest or more than a minor influence over the joint venture's or partnership's operations, but does not have a controlling interest and is not the primary beneficiary. The Company uses the cost method of accounting for investments in real estate joint ventures and other limited partnership interests in which it has a minor equity investment and virtually no influence over the joint venture's or partnership's operations. Certain amounts in the prior year periods' financial statements have been reclassified to conform with the 2007 presentation. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in the financial statements. The most critical estimates include those used in determining: (i) the fair value of investments in the absence of quoted market values; (ii) investment impairments; (iii) the recognition of income on certain investments; (iv) the fair value of and accounting for derivatives; (v) the capitalization and amortization of deferred policy acquisition costs ("DAC"); (vi) the liability for future policyholder benefits; (vii) accounting for income taxes and the valuation of deferred tax assets; (viii) accounting for reinsurance transactions; and (ix) the liability for litigation and regulatory matters. A description of such critical estimates is incorporated within the discussion of the related accounting policies which follow. In applying these policies, management makes subjective and complex judgments that frequently require estimates about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company's businesses and operations. Actual results could differ from these estimates. F-6 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) Investments The Company's principal investments are in fixed maturity securities, mortgage loans on real estate and short-term investments. The accounting policies related to each of the Company's investments are as follows: Fixed Maturity and Equity Securities. The Company's fixed maturity and equity securities are classified as available-for-sale and are reported at their estimated fair value. Unrealized investment gains and losses on these securities are recorded as a separate component of other comprehensive income or loss, net of policyholder related amounts and deferred income taxes. All security transactions are recorded on a trade date basis. Investment gains and losses on sales of securities are determined on a specific identification basis. Interest income on fixed maturity securities is recorded when earned using an effective yield method giving effect to amortization of premiums and accretion of discounts. Dividends on equity securities are recorded when declared. These dividends and interest income are recorded as part of net investment income. Included within fixed maturity securities are loan-backed securities including mortgage-backed and asset-backed securities. Amortization of the premium or discount from the purchase of these securities considers the estimated timing and amount of prepayments of the underlying loans. Actual prepayment experience is periodically reviewed and effective yields are recalculated when differences arise between the prepayments originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for single class and multi-class mortgage-backed and asset-backed securities are obtained from broker-dealer survey values or internal estimates. For credit-sensitive mortgage-backed and asset-backed securities and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other mortgage-backed and asset-backed securities, the effective yield is recalculated on a retrospective basis. The cost of fixed maturity and equity securities is adjusted for impairments in value deemed to be other-than-temporary in the period in which the determination is made. These impairments are included within net investment gains (losses) and the cost basis of the fixed maturity and equity securities is reduced accordingly. The Company does not change the revised cost basis for subsequent recoveries in value. The assessment of whether impairments have occurred is based on management's case-by-case evaluation of the underlying reasons for the decline in fair value. The Company's review of its fixed maturity and equity securities for impairments includes an analysis of the total gross unrealized losses by three categories of securities: (i) securities where the estimated fair value had declined and remained below cost or amortized cost by less than 20%; (ii) securities where the estimated fair value had declined and remained below cost or amortized cost by 20% or more for less than six months; and (iii) securities where the estimated fair value had declined and remained below cost or amortized cost by 20% or more for six months or greater. Additionally, management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management's evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used by the Company in the impairment evaluation process include, but are not limited to: (i) the length of time and the extent to which the market value has been below cost or amortized cost; (ii) the potential for impairments of securities when the issuer is experiencing significant financial difficulties; (iii) the potential for impairments in an entire industry sector or sub-sector; (iv) the potential for impairments in certain economically depressed geographic locations; (v) the potential for impairments of securities where the issuer, series of issuers or industry has suffered a catastrophic type of loss or has exhausted natural resources; (vi) the Company's ability and intent to hold the security for a period of time sufficient to allow for the recovery of its value to an amount equal to or greater than cost or amortized cost (See also Note 2); (vii) unfavorable changes in forecasted cash F-7 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) flows on mortgage-backed and asset-backed securities; and (viii) other subjective factors, including concentrations and information obtained from regulators and rating agencies. Securities Lending. Securities loaned transactions are treated as financing arrangements and are recorded at the amount of cash received. The Company obtains collateral in an amount equal to 102% of the fair value of the securities loaned. The Company monitors the market value of the securities loaned on a daily basis with additional collateral obtained as necessary. Substantially all of the Company's securities loaned transactions are with large brokerage firms. Income and expenses associated with securities loaned transactions are reported as investment income and investment expense, respectively, within net investment income. Mortgage Loans on Real Estate. Mortgage loans on real estate are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, net of valuation allowances. Interest income is accrued on the principal amount of the loan based on the loan's contractual interest rate. Amortization of premiums and discounts is recorded using the effective yield method. Interest income, amortization of premiums and discounts, and prepayment fees are reported in net investment income. Loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. Valuation allowances are established for the excess carrying value of the loan over the present value of expected future cash flows discounted at the loan's original effective interest rate, the value of the loan's collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or the loan's market value if the loan is being sold. The Company also establishes allowances for loan losses when a loss contingency exists for pools of loans with similar characteristics, such as mortgage loans based on similar property types or loan to value risk factors. A loss contingency exists when the likelihood that a future event will occur is probable based on past events. Interest income earned on impaired loans is accrued on the principal amount of the loan based on the loan's contractual interest rate. However, interest ceases to be accrued for loans on which interest is generally more than 60 days past due and/or where the collection of interest is not considered probable. Cash receipts on such impaired loans are recorded as a reduction of the recorded investment. Gains and losses from the sale of loans and changes in valuation allowances are reported in net investment gains (losses). Policy Loans. Policy loans are stated at unpaid principal balances. Interest income on such loans is recorded as earned using the contractually agreed upon interest rate. Generally, interest is capitalized on the policy's anniversary date. Real Estate Joint Ventures and Other Limited Partnership Interests. The Company uses the equity method of accounting for investments in real estate joint ventures and other limited partnership interests in which it has more than a minor equity interest or more than a minor influence over the joint ventures or partnership's operations, but does not have a controlling interest and is not the primary beneficiary. The Company uses the cost method of accounting for investments in real estate joint ventures and other limited partnership interests in which it has a minor equity investment and virtually no influence over the joint ventures or the partnership's operations. In addition to the investees performing regular evaluations for the impairment of underlying investments, the Company routinely evaluates its investments in real estate joint ventures and other limited partnerships for impairments. For its cost method investments, the Company follows an impairment analysis which is similar to the process followed for its fixed maturity and equity securities as described previously. For equity method investees, the Company considers financial and other information provided by the investee, other known information and inherent risks in the underlying investments, as well as future capital commitments, in determining whether an impairment has occurred. When an other-than-temporary impairment is deemed to have occurred, the Company records a realized capital loss within net investment gains (losses) to record the investment at its fair value. F-8 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) Short-term Investments. Short-term investments include investments with remaining maturities of one year or less, but greater than three months, at the time of acquisition and are stated at amortized cost, which approximates fair value. Other Invested Assets. Other invested assets consist primarily of stand-alone derivatives with positive fair values. Estimates and Uncertainties. The Company's investments are exposed to three primary sources of risk: credit, interest rate and market valuation. The financial statement risks, stemming from such investment risks, are those associated with the recognition of impairments, the recognition of income on certain investments, and the determination of fair values. The determination of the amount of allowances and impairments, as applicable, are described previously by investment type. The determination of such allowances and impairments is highly subjective and is based upon the Company's periodic evaluation and assessment of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available. Management updates its evaluations regularly and reflects changes in allowances and impairments in operations as such evaluations are revised. The recognition of income on certain investments (e.g. loan-backed securities including mortgage-backed and asset-backed securities) is dependent upon market conditions, which could result in prepayments and changes in amounts to be earned. The fair values of publicly held fixed maturity securities and publicly held equity securities are based on quoted market prices or estimates from independent pricing services. However, in cases where quoted market prices are not available, such as for private fixed maturity securities, fair values are estimated using present value or valuation techniques. The determination of fair values is based on: (i) valuation methodologies; (ii) securities the Company deems to be comparable; and (iii) assumptions deemed appropriate given the circumstances. The fair value estimates are made at a specific point in time, based on available market information and judgments about financial instruments, including estimates of the timing and amounts of expected future cash flows and the credit standing of the issuer or counterparty. Factors considered in estimating fair value include: coupon rate, maturity, estimated duration, call provisions, sinking fund requirements, credit rating, industry sector of the issuer, and quoted market prices of comparable securities. The use of different methodologies and assumptions may have a material effect on the estimated fair value amounts. Additionally, when the Company enters into certain real estate joint ventures and other limited partnerships for which the Company may be deemed to be the primary beneficiary under Financial Accounting Standards Board ("FASB") Interpretation ("FIN") No. 46(r), Consolidation of Variable Interest Entities -- An Interpretation of ARB No. 51, it may be required to consolidate such investments. The accounting rules for the determination of the primary beneficiary are complex and require evaluation of the contractual rights and obligations associated with each party involved in the entity, an estimate of the entity's expected losses and expected residual returns and the allocation of such estimates to each party. The use of different methodologies and assumptions as to the determination of the fair value of investments, the timing and amount of impairments, the recognition of income, or consolidation of investments may have a material effect on the amounts presented within the financial statements. Derivative Financial Instruments Derivatives are financial instruments whose values are derived from interest rates, foreign currency exchange rates, or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter market. F-9 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) The Company uses a variety of derivatives, including swaps and futures to manage the risk associated with variability in cash flows or changes in fair values related to the Company's financial instruments. To a lesser extent, the Company uses credit derivatives, such as credit default swaps, to synthetically replicate investment risks and returns which are not readily available in the cash market. The Company also purchases certain securities, issues certain insurance policies and investment contracts and engages in certain reinsurance contracts that have embedded derivatives. Freestanding derivatives are carried on the Company's balance sheet either as assets within other invested assets or as liabilities within other liabilities at fair value as determined by quoted market prices or through the use of pricing models. The determination of fair value, when quoted market values are not available, is based on valuation methodologies and assumptions deemed appropriate under the circumstances. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, market volatility, and liquidity. Values can also be affected by changes in estimates and assumptions used in pricing models. Such assumptions include estimates of volatility, interest rates, foreign currency exchange rates, other financial indices and credit ratings. Essential to the analysis of the fair value is risk of counterparty default. The use of different assumptions may have a material effect on the estimated derivative fair value amounts, as well as the amount of reported net income. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting, changes in the fair value of the derivative are generally reported in net investment gains (losses). The fluctuations in fair value of derivatives which have not been designated for hedge accounting can result in significant volatility in net income. To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge as either (i) a hedge of the fair value of a recognized asset or liability or an unrecognized firm commitment ("fair value hedge"); or (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"). In this documentation, the Company sets forth how the hedging instrument is expected to hedge the designated risks related to the hedged item and sets forth the method that will be used to retrospectively and prospectively assess the hedging instrument's effectiveness and the method which will be used to measure ineffectiveness. A derivative designated as a hedging instrument must be assessed as being highly effective in offsetting the designated risk of the hedged item. Hedge effectiveness is formally assessed at inception and periodically throughout the life of the designated hedging relationship. Assessments of hedge effectiveness and measurements of ineffectiveness are also subject to interpretation and estimation and different interpretations or estimates may have a material effect on the amount reported in net income. The accounting for derivatives is complex and interpretations of the primary accounting standards continue to evolve in practice. Judgment is applied in determining the availability and application of hedge accounting designations and the appropriate accounting treatment under these accounting standards. If it was determined that hedge accounting designations were not appropriately applied, reported net income could be materially affected. Differences in judgment as to the availability and application of hedge accounting designations and the appropriate accounting treatment may result in a differing impact on the financial statements of the Company from that previously reported. Under a fair value hedge, changes in the fair value of the hedging derivative, including amounts measured as ineffectiveness, and changes in the fair value of the hedged item related to the designated risk being hedged, are reported within net investment gains (losses). The fair values of the hedging derivatives are exclusive of any accruals that are separately reported in the statement of income within interest income or interest expense to match the location of the hedged item. F-10 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) Under a cash flow hedge, changes in the fair value of the hedging derivative measured as effective are reported within other comprehensive income (loss), a separate component of stockholder's equity, and the deferred gains or losses on the derivative are reclassified into the statement of income when the Company's earnings are affected by the variability in cash flows of the hedged item. Changes in the fair value of the hedging instrument measured as ineffectiveness are reported within net investment gains (losses). The fair values of the hedging derivatives are exclusive of any accruals that are separately reported in the statement of income within interest income or interest expense to match the location of the hedged item. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; (iv) a hedged firm commitment no longer meets the definition of a firm commitment; or (v) the derivative is de- designated as a hedging instrument. When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in net investment gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in fair value of derivatives recorded in other comprehensive income (loss) related to discontinued cash flow hedges are released into the statement of income when the Company's earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur by the end of the specified time period or the hedged item no longer meets the definition of a firm commitment, the derivative continues to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in net investment gains (losses). Any asset or liability associated with a recognized firm commitment is derecognized from the balance sheet, and recorded currently in net investment gains (losses). Deferred gains and losses of a derivative recorded in other comprehensive income (loss) pursuant to the cash flow hedge of a forecasted transaction are recognized immediately in net investment gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its fair value on the balance sheet, with changes in its fair value recognized in the current period as net investment gains (losses). The Company is also a party to financial instruments that contain terms which are deemed to be embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. If the instrument would not be accounted for in its entirety at fair value and it is determined that the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract, and that a separate instrument with the same terms would qualify as a derivative instrument, the embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative. Such embedded derivatives are carried on the balance sheet at fair value with the host contract and changes in their fair value are reported currently in net investment gains (losses). If the Company is unable to properly identify and measure an embedded derivative for separation from its host contract, the entire contract is carried on the balance sheet at fair value, with changes in fair value recognized in the current period in net investment gains (losses). Additionally, the Company may elect to carry an entire contract on the balance sheet at fair value, with changes in fair value recognized in the current period in net investment gains (losses) if that contract contains an embedded derivative that requires bifurcation. There is a risk that embedded derivatives requiring bifurcation may not be identified and reported at fair value in the financial statements and that their related changes in fair value could materially affect reported net income. F-11 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Computer Software Computer software, which is included in other assets, is stated at cost, less accumulated amortization. Purchased software costs, as well as certain internal and external costs incurred to develop internal-use computer software during the application development stage, are capitalized. Such costs are amortized generally over a four-year period using the straight-line method. The cost basis of computer software was $49 million and $34 million at December 31, 2007 and 2006, respectively. Accumulated amortization of capitalized software was $6 million and $3 million at December 31, 2007 and 2006, respectively. Related amortization expense was $6 million and $3 million for the years ended December 31, 2007 and 2006. There was no amortization expense for the year ended December 31, 2005. Deferred Policy Acquisition Costs The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that vary with and relate to the production of new business are deferred as DAC. Such costs consist principally of commissions and agency and policy issue expenses. The recovery of DAC is dependent upon the future profitability of the related business. DAC on life insurance or investment-type contracts are amortized in proportion to gross premiums or gross profits, depending on the type of contract as described below. The Company amortizes DAC related to non-participating traditional contracts (term insurance and non-participating whole life insurance) over the entire premium paying period in proportion to the present value of actual historic and expected future gross premiums. The present value of expected premiums is based upon the premium requirement of each policy and assumptions for mortality, persistency, and investment returns at policy issuance that include provisions for adverse deviation and are consistent with the assumptions used to calculate future policyholder benefit liabilities. These assumptions are not revised after policy issuance unless the DAC balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance is caused only by variability in premium volumes. The Company amortizes DAC related to fixed and variable universal life contracts and fixed and variable deferred annuity contracts over the estimated lives of the contracts in proportion to actual and expected future gross profits. The amortization includes interest based on rates in effect at inception of the contracts. The amount of future gross profits is dependent principally upon returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, expenses to administer the business, creditworthiness of reinsurance counterparties, the effect of any hedges used, and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses, and persistency are reasonably likely to impact significantly the rate of DAC amortization. Each reporting period, the Company updates the estimated gross profits with the actual gross profits for that period. When the actual gross profits change from previously estimated gross profits, the cumulative DAC amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual gross profits exceed those previously estimated, DAC amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the actual gross profits are below the previously estimated gross profits. Each reporting period, the Company also updates the actual amount of business remaining in-force, which impacts expected future gross profits. Separate account rates of return on variable universal life contracts and variable deferred annuity contracts affect in-force account balances on such contracts each reporting period. Returns that are higher than the F-12 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) Company's long-term expectation produce higher account balances, which increases the Company's future fee expectations and decreases future benefit payment expectations on minimum death benefit guarantees, resulting in higher expected future gross profits. The opposite result occurs when returns are lower than the Company's long-term expectation. The Company's practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long- term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected. The Company monitors these changes and only changes the assumption when its long-term expectation changes. The Company also reviews periodically other long-term assumptions underlying the projections of estimated gross profits. These include investment returns, interest crediting rates, mortality, persistency, and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross profits which may have significantly changed. If the update of assumptions causes expected future gross profits to increase, DAC amortization will decrease, resulting in a current period increase to earnings. The opposite result occurs when the assumption update causes expected future gross profits to decrease. Prior to 2007, DAC related to any internally replaced contract was generally expensed at the date of replacement. As described more fully in "Adoption of New Accounting Pronouncements", effective January 1, 2007, the Company adopted Statement of Position ("SOP") 05-1, Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection with Modifications or Exchanges of Insurance Contracts ("SOP 05-1"). Under SOP 05-1, an internal replacement is defined as a modification in product benefits, features, rights or coverages that occur by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by election or coverage within a contract. If the modification substantially changes the contract, the DAC is written off immediately through income and any new deferrable costs associated with the replacement contract are deferred. If the modification does not substantially change the contract, the DAC amortization on the original contract will continue and any acquisition costs associated with the related modification are expensed. Sales Inducements The Company has two different types of sales inducements which are included in other assets: (i) the policyholder receives a bonus whereby the policyholder's initial account balance is increased by an amount equal to a specified percentage of the customer's deposit; and (ii) the policyholder receives a higher interest rate using a dollar cost averaging method than would have been received based on the normal general account interest rate credited. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. Liability for Future Policy Benefits and Policyholder Account Balances The Company establishes liabilities for amounts payable under insurance policies, including traditional life insurance and traditional annuities. Generally, amounts are payable over an extended period of time and related liabilities are calculated as the present value of future expected benefits to be paid reduced by the present value of future expected premiums. Such liabilities are established based on methods and underlying assumptions in accordance with GAAP and applicable actuarial standards. Principal assumptions used in the establishment of liabilities for future policy benefits are mortality, policy lapse, renewal, investment returns, inflation, expenses and other contingent events as appropriate to the respective product type. Utilizing these assumptions, liabilities are established on a block of business basis. Future policy benefit liabilities for non-participating traditional life insurance policies are equal to the aggregate of the present value of expected future benefit payments and related expenses less the present value of expected future net premiums. Assumptions as to mortality and persistency are based upon the Company's F-13 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) experience when the basis of the liability is established. Interest rates for future policy benefit liabilities on non-participating traditional life insurance range from 5% to 7%. Future policy benefit liabilities for traditional fixed annuities after annuitization are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 4% to 11%. The effects of changes in such estimated liabilities are included in the results of operations in the period in which the changes occur. The Company establishes future policy benefit liabilities for minimum death and income benefit guarantees relating to certain annuity contracts and secondary guarantees relating to certain life policies as follows: - Annuity guaranteed minimum death benefit ("GMDB") liabilities are determined by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. The assumptions used in estimating the GMDB liabilities are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk. The assumptions of investment performance and volatility are consistent with the historical experience of the Standard & Poor's 500 Index ("S&P"). The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. - Guaranteed minimum income benefit ("GMIB") liabilities are determined by estimating the expected value of the income benefits in excess of the projected account balance at any future date of annuitization and recognizing the excess ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. The assumptions used for estimating the GMIB liabilities are consistent with those used for estimating the GMDB liabilities. In addition, the calculation of guaranteed annuitization benefit liabilities incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contractholder. Liabilities for universal and variable life secondary guarantees are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used and adjusts the additional liability balances, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. The assumptions used in estimating the secondary guarantee liabilities are consistent with those used for amortizing DAC, and are thus subject to the same variability and risk. The assumptions of investment performance and volatility for variable products are consistent with historical S&P experience. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. The Company establishes policyholder account balances for guaranteed minimum benefit riders relating to certain variable annuity products as follows: - Guaranteed minimum withdrawal benefit riders ("GMWB") guarantee the contractholder a return of their purchase payment via partial withdrawals, even if the account value is reduced to zero, provided that the contractholder's cumulative withdrawals in a contract year do not exceed a certain limit. The initial guaranteed withdrawal amount is equal to the initial benefit base as defined in the contract (typically, the initial purchase payments plus applicable bonus amounts). The GMWB is an embedded derivative, which is measured at fair value separately from the host variable annuity product. F-14 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) - Guaranteed minimum accumulation benefit riders ("GMAB") provide the contractholder, after a specified period of time determined at the time of issuance of the variable annuity contract, with a minimum accumulation of their purchase payments even if the account value is reduced to zero. The initial guaranteed accumulation amount is equal to the initial benefit base as defined in the contract (typically, the initial purchase payments plus applicable bonus amounts). The GMAB is also an embedded derivative, which is measured at fair value separately from the host variable annuity product. - For both GMWB and GMAB, the initial benefit base is increased by additional purchase payments made within a certain time period and decreases by benefits paid and/or withdrawal amounts. After a specified period of time, the benefit base may also increase as a result of an optional reset as defined in the contract. The fair values of the GMWB and GMAB riders are calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior. In measuring the fair value of GMWBs and GMABs, the Company attributes a portion of the fees collected from the policyholder equal to the present value of expected future guaranteed minimum withdrawal and accumulation benefits (at inception). The changes in fair value are reported in net investment gains (losses). Any additional fees represent "excess" fees and are reported in universal life and investment-type product policy fees. These riders may be more costly than expected in volatile or declining markets, causing an increase in liabilities for future policy benefits, negatively affecting net income. The Company issues both GMWBs and GMABs directly and assumes risk relating to GMWBs and GMABs issued by an affiliate through a financing agreement. Some of the risks associated with GMWBs and GMABs directly written and assumed were transferred to a different affiliate through another financing agreement and are included in premiums and other receivables. The Company periodically reviews its estimates of actuarial liabilities for future policy benefits and compares them with its actual experience. Differences between actual experience and the assumptions used in pricing these policies, guarantees and riders and in the establishment of the related liabilities result in variances in profit and could result in losses. The effects of changes in such estimated liabilities are included in the results of operations in the period in which the changes occur. Policyholder account balances relate to investment-type contracts and universal life-type policies. Investment-type contracts principally include traditional individual fixed annuities in the accumulation phase and non- variable group annuity contracts. Policyholder account balances are equal to the policy account values, which consist of an accumulation of gross premium payments plus credited interest, ranging from 2% to 13%, less expenses, mortality charges, and withdrawals. Other Policyholder Funds Other policyholder funds include policy and contract claims and unearned revenue liabilities. The liability for policy and contract claims generally relates to incurred but not reported death claims as well as claims which have been reported but not yet settled. The liability for these claims is based on the Company's estimated ultimate cost of settling all claims. The Company derives estimates for the development of incurred but not reported claims principally from actuarial analyses of historical patterns of claims and claims development for each line of business. The methods used to determine these estimates are continually reviewed. Adjustments resulting from this continuous review process and differences between estimates and payments for claims are recognized in policyholder benefits and claims expense in the period in which the estimates are changed or payments are made. The unearned revenue liability relates to universal life-type and investment-type products and represents policy charges for services to be provided in future periods. The charges are deferred as unearned revenue and F-15 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) amortized using the product's estimated gross profits, similar to DAC. Such amortization is recorded in universal life and investment-type product policy fees. Recognition of Insurance Revenue and Related Benefits Premiums related to traditional life and annuity policies with life contingencies are recognized as revenues when due from policyholders. Policyholder benefits and expenses are provided against such revenues to recognize profits over the estimated lives of the policies. When premiums are due over a significantly shorter period than the period over which benefits are provided, any excess profit is deferred and recognized into operations in a constant relationship to insurance in-force or, for annuities, the amount of expected future policy benefit payments. Deposits related to universal life-type and investment-type products are credited to policyholder account balances. Revenues from such contracts consist of amounts assessed against policyholder account balances for mortality, policy administration and surrender charges and are recorded in universal life and investment-type product policy fees in the period in which services are provided. Amounts that are charged to operations include interest credited and benefit claims incurred in excess of related policyholder account balances. Premiums, policy fees, policyholder benefits and expenses are presented net of reinsurance. Other Revenues Other revenues include fees on reinsurance financing agreements and advisory fees. Such fees are recognized in the period in which services are performed. Income Taxes Effective October 11, 2006, the Company joined MICC's includable subsidiaries in filing a federal income tax return. Prior to the transfer of the Company to MICC, the Company joined MetLife's includable subsidiaries in filing a federal income tax return in accordance with the provisions of the Internal Revenue Code of 1986, as amended. The Company's accounting for income taxes represents management's best estimate of various events and transactions. Deferred tax assets and liabilities resulting from temporary differences between the financial reporting and tax bases of assets and liabilities are measured at the balance sheet date using enacted tax rates expected to apply to taxable income in the years the temporary differences are expected to reverse. The realization of deferred tax assets depends upon the existence of sufficient taxable income within the carryback or carryforward periods under the tax law in the applicable tax jurisdiction. Valuation allowances are established when management determines, based on available information, that it is more likely than not that deferred income tax assets will not be realized. Significant judgment is required in determining whether valuation allowances should be established as well as the amount of such allowances. When making such determination, consideration is given to, among other things, the following: (i) future taxable income exclusive of reversing temporary differences and carryforwards; (ii) future reversals of existing taxable temporary differences; (iii) taxable income in prior carryback years; and (iv) tax planning strategies. The Company may be required to change its provision for income taxes in certain circumstances. Examples of such circumstances include when the ultimate deductibility of certain items is challenged by taxing authorities or F-16 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, future events, such as changes in tax laws, tax regulations, or interpretations of such laws or regulations, could have an impact on the provision for income tax and the effective tax rate. Any such changes could significantly affect the amounts reported in the financial statements in the year these changes occur. As described more fully in "Adoption of New Accounting Pronouncements", the Company adopted FIN No. 48, Accounting for Uncertainty in Income Taxes -- An Interpretation of FASB Statement No. 109 ("FIN 48") effective January 1, 2007. Under FIN 48, the Company determines whether it is more-likely-than-not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. Unrecognized tax benefits due to tax uncertainties that do not meet the threshold are included within other liabilities and are charged to earnings in the period that such determination is made. The Company classifies interest recognized as interest expense and penalties recognized as a component of income tax. Reinsurance The Company enters into reinsurance transactions as both a provider and a purchaser of reinsurance for its life insurance products. For each of its reinsurance contracts, the Company determines if the contract provides indemnification against loss or liability relating to insurance risk in accordance with applicable accounting standards. The Company reviews all contractual features, particularly those that may limit the amount of insurance risk to which the reinsurer is subject or features that delay the timely reimbursement of claims. For reinsurance of existing in-force blocks of long-duration contracts that transfer significant insurance risk, the difference, if any, between the amounts paid (received), and the liabilities ceded (assumed) related to the underlying contracts is considered the net cost of reinsurance at the inception of the contract. The net cost of reinsurance is recorded as an adjustment to DAC and recognized as a component of other expenses on a basis consistent with the way the acquisition costs on the underlying reinsured contracts would be recognized. Subsequent amounts paid (received) on the reinsurance of in-force blocks, as well as amounts paid (received) related to new business, are recorded as ceded (assumed) premiums and ceded (assumed) future policy benefit liabilities are established. The assumptions used to account for long-duration reinsurance contracts are consistent with those used for the underlying contracts. Ceded policyholder and contract related liabilities, other than those currently due, are reported gross on the balance sheet. Amounts currently recoverable under reinsurance contracts are included in premiums and other receivables and amounts currently payable are included in other liabilities. Such assets and liabilities relating to reinsurance contracts with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance contract. Premiums, fees and policyholder benefits and claims include amounts assumed under reinsurance contracts and are net of reinsurance ceded. If the Company determines that a reinsurance contract does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the contract using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within other assets. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on F-17 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) such deposits is recorded as other revenues or other expenses, as appropriate. Periodically, the Company evaluates the adequacy of the expected payments or recoveries and adjusts the deposit asset or liability through other revenues or other expenses, as appropriate. Amounts received from reinsurers for policy administration are reported in other revenues. Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. The Company periodically reviews actual and anticipated experience compared to the aforementioned assumptions used to establish assets and liabilities relating to ceded and assumed reinsurance and evaluates the financial strength of counterparties to its reinsurance agreements using criteria similar to that evaluated in the security impairment process discussed previously. Separate Accounts Separate accounts are established in conformity with insurance laws and are generally not chargeable with liabilities that arise from any other business of the Company. Separate account assets are subject to general account claims only to the extent the value of such assets exceeds the separate account liabilities. The Company reports separately, as assets and liabilities, investments held in separate accounts and liabilities of the separate accounts if (i) such separate accounts are legally recognized; (ii) assets supporting the contract liabilities are legally insulated from the Company's general account liabilities; (iii) investments are directed by the contractholder; and (iv) all investment performance, net of contract fees and assessments, is passed through to the contractholder. The Company reports separate account assets meeting such criteria at their fair value. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to contractholders of such separate accounts are offset within the same line in the statements of income. The Company's revenues reflect fees charged to the separate accounts, including mortality charges, risk charges, policy administration fees, investment management fees and surrender charges. Separate accounts not meeting the above criteria are combined on a line-by-line basis with the Company's general account assets, liabilities, revenues and expenses. Foreign Currency The Company participates in reinsurance transactions with a foreign company. Balance sheet accounts are translated at the exchange rates in effect at each year-end and income and expense accounts are translated at the average rates of exchange prevailing during the year. Translation adjustments are charged or credited directly to other comprehensive income or loss. Gains and losses from foreign currency transactions are reported as net investment gains (losses) in the period in which they occur. Translation adjustments and gains and losses from foreign currency transactions were less than $1 million for each of the years ended December 31, 2007, 2006 and 2005, respectively. Litigation Contingencies The Company is a party to legal actions and has been involved in regulatory investigations. Given the inherent unpredictability of these matters, it is difficult to estimate the impact on the Company's financial position. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities related to certain lawsuits are especially difficult to estimate due to the limitation of available data and uncertainty regarding numerous variables used to determine amounts recorded. On an annual basis, the Company reviews relevant information with respect to liabilities for litigation, regulatory investigations and litigation-related contingencies to be reflected in the Company's financial statements. It is possible that an F-18 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) adverse outcome in certain matters, or the use of different assumptions in the determination of amounts recorded could have a material adverse effect upon the Company's net income or cash flows in particular annual periods. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS Income Taxes Effective January 1, 2007, the Company adopted FIN 48. FIN 48 clarifies the accounting for uncertainty in income tax recognized in a company's financial statements. FIN 48 requires companies to determine whether it is "more likely than not" that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. It also provides guidance on the recognition, measurement, and classification of income tax uncertainties, along with any related interest and penalties. Previously recorded income tax benefits that no longer meet this standard are required to be charged to earnings in the period that such determination is made. The adoption of FIN 48 did not have an impact on the Company's financial statements. Insurance Contracts Effective January 1, 2007, the Company adopted SOP 05-1 which provides guidance on accounting by insurance enterprises for DAC on internal replacements of insurance and investment contracts other than those specifically described in Statement of Financial Accounting Standards ("SFAS") No. 97, Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments. SOP 05-1 defines an internal replacement and is effective for internal replacements occurring in fiscal years beginning after December 15, 2006. In addition, in February 2007, the American Institute of Certified Public Accountants ("AICPA") issued related Technical Practice Aids ("TPAs") to provide further clarification of SOP 05-1. The TPAs became effective concurrently with the adoption of SOP 05-1. As a result of the adoption of SOP 05-1 and the related TPAs, if an internal replacement modification substantially changes a contract, then the DAC is written off immediately through income and any new deferrable costs associated with the new replacement are deferred. If a contract modification does not substantially change the contract, the DAC amortization on the original contract will continue and any acquisition costs associated with the related modification are immediately expensed. The adoption of SOP 05-1 did not have a material impact on the Company's financial statements. Derivative Financial Instruments The Company has adopted guidance relating to derivative financial instruments as follows: - Effective January 1, 2006, the Company adopted prospectively SFAS No. 155, Accounting for Certain Hybrid Instruments ("SFAS 155"). SFAS 155 amends SFAS No. 133, Accounting for Derivative Instruments and Hedging ("SFAS 133") and SFAS No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities ("SFAS 140"). SFAS 155 allows financial instruments that have embedded derivatives to be accounted for as a whole, eliminating the need to bifurcate the derivative from its host, if the holder elects to account for the whole instrument on a fair value basis. In addition, among other changes, SFAS 155: (i) clarifies which interest-only strips and principal-only strips are not subject to the requirements of SFAS 133; (ii) establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation; F-19 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) (iii) clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives; and (iv) amends SFAS 140 to eliminate the prohibition on a qualifying special-purpose entity ("QSPE") from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial interest. The adoption of SFAS 155 did not have a material impact on the Company's financial statements. - Effective October 1, 2006, the Company adopted SFAS 133 Implementation Issue No. B40, Embedded Derivatives: Application of Paragraph 13(b) to Securitized Interests in Prepayable Financial Assets ("Issue B40"). Issue B40 clarifies that a securitized interest in prepayable financial assets is not subject to the conditions in paragraph 13(b) of SFAS 133, if it meets both of the following criteria: (i) the right to accelerate the settlement if the securitized interest cannot be controlled by the investor; and (ii) the securitized interest itself does not contain an embedded derivative (including an interest rate-related derivative) for which bifurcation would be required other than an embedded derivative that results solely from the embedded call options in the underlying financial assets. The adoption of Issue B40 did not have a material impact on the Company's financial statements. - Effective January 1, 2006, the Company adopted prospectively SFAS 133 Implementation Issue No. B38, Embedded Derivatives: Evaluation of Net Settlement with Respect to the Settlement of a Debt Instrument through Exercise of an Embedded Put Option or Call Option ("Issue B38") and SFAS 133 Implementation Issue No. B39, Embedded Derivatives: Application of Paragraph 13(b) to Call Options That Are Exercisable Only by the Debtor ("Issue B39"). Issue B38 clarifies that the potential settlement of a debtor's obligation to a creditor occurring upon exercise of a put or call option meets the net settlement criteria of SFAS 133. Issue B39 clarifies that an embedded call option, in which the underlying is an interest rate or interest rate index, that can accelerate the settlement of a debt host financial instrument should not be bifurcated and fair valued if the right to accelerate the settlement can be exercised only by the debtor (issuer/borrower) and the investor will recover substantially all of its initial net investment. The adoption of Issues B38 and B39 did not have a material impact on the Company's financial statements. Other Effective January 1, 2007, the Company adopted SFAS No. 156, Accounting for Servicing of Financial Assets -- an amendment of FASB Statement No. 140 ("SFAS 156"). Among other requirements, SFAS 156 requires an entity to recognize a servicing asset or servicing liability each time it undertakes an obligation to service a financial asset by entering into a servicing contract in certain situations. The adoption of SFAS 156 did not have an impact on the Company's financial statements. Effective November 15, 2006, the Company adopted U.S. Securities and Exchange Commission Staff Accounting Bulletin ("SAB") No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements ("SAB 108"). SAB 108 provides guidance on how prior year misstatements should be considered when quantifying misstatements in current year financial statements for purposes of assessing materiality. SAB 108 requires that registrants quantify errors using both a balance sheet and income statement approach and evaluate whether either approach results in quantifying a misstatement that, when relevant quantitative and qualitative factors are considered, is material. SAB 108 permits companies to initially apply its provisions by either restating prior financial statements or recording a cumulative effect adjustment to the carrying values of assets and liabilities as of January 1, 2006 with an offsetting adjustment to retained earnings for errors that were previously deemed immaterial but are material under the guidance in SAB 108. The adoption of SAB 108 did not have a material impact on the Company's financial statements. F-20 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) Effective January 1, 2006, the Company adopted SFAS No. 154, Accounting Changes and Error Corrections, a replacement of APB Opinion No. 20 and FASB Statement No. 3 ("SFAS 154"). SFAS 154 requires retrospective application to prior periods' financial statements for a voluntary change in accounting principle unless it is deemed impracticable. It also requires that a change in the method of depreciation, amortization, or depletion for long-lived, non- financial assets be accounted for as a change in accounting estimate rather than a change in accounting principle. The adoption of SFAS 154 did not have a material impact on the Company's financial statements. In June 2005, the Emerging Issues Task Force ("EITF") reached consensus on Issue No. 04-5, Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights ("EITF 04-5"). EITF 04-5 provides a framework for determining whether a general partner controls and should consolidate a limited partnership or a similar entity in light of certain rights held by the limited partners. The consensus also provides additional guidance on substantive rights. EITF 04-5 was effective after June 29, 2005 for all newly formed partnerships and for any pre-existing limited partnerships that modified their partnership agreements after that date. For all other limited partnerships, EITF 04-5 required adoption by January 1, 2006 through a cumulative effect of a change in accounting principle recorded in opening equity or applied retrospectively by adjusting prior period financial statements. The adoption of the provisions of EITF 04-5 did not have a material impact on the Company's financial statements. Effective November 9, 2005, the Company prospectively adopted the guidance in FASB Staff Position ("FSP") No. FAS 140-2, Clarification of the Application of Paragraphs 40(b) and 40(c) of FAS 140 ("FSP 140-2"). FSP 140-2 clarified certain criteria relating to derivatives and beneficial interests when considering whether an entity qualifies as a QSPE. Under FSP 140-2, the criteria must only be met at the date the QSPE issues beneficial interests or when a derivative financial instrument needs to be replaced upon the occurrence of a specified event outside the control of the transferor. The adoption of FSP 140-2 did not have a material impact on the Company's financial statements. Effective July 1, 2005, the Company adopted SFAS No. 153, Exchanges of Nonmonetary Assets, an amendment of APB Opinion No. 29 ("SFAS 153"). SFAS 153 amended prior guidance to eliminate the exception for nonmonetary exchanges of similar productive assets and replaced it with a general exception for exchanges of nonmonetary assets that do not have commercial substance. A nonmonetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly as a result of the exchange. The provisions of SFAS 153 were required to be applied prospectively for fiscal periods beginning after June 15, 2005. The adoption of SFAS 153 did not have a material impact on the Company's financial statements. In June 2005, the FASB completed its review of EITF Issue No. 03-1, The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments ("EITF 03-1"). EITF 03-1 provides accounting guidance regarding the determination of when an impairment of debt and marketable equity securities and investments accounted for under the cost method should be considered other-than- temporary and recognized in income. EITF 03-1 also requires certain quantitative and qualitative disclosures for debt and marketable equity securities classified as available-for-sale or held-to-maturity under SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities, that are impaired at the balance sheet date but for which an other-than-temporary impairment has not been recognized. The FASB decided not to provide additional guidance on the meaning of other-than-temporary impairment but has issued FSP Nos. FAS 115-1 and FAS 124-1, The Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments ("FSP 115-1"), which nullifies the accounting guidance on the determination of whether an investment is other-than-temporarily impaired as set forth in EITF 03-1. As required by FSP 115-1, the Company adopted this guidance on a prospective basis, which had no material impact on the Company's financial statements, and has provided the required disclosures. F-21 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) FUTURE ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS Fair Value In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements ("SFAS 157"). SFAS 157 defines fair value, establishes a framework for measuring fair value and requires enhanced disclosures about fair value measurements. Effective January 1, 2008, the Company adopted SFAS 157 and applied the provisions of the statement prospectively to assets and liabilities measured and disclosed at fair value. In addition to new disclosure requirements, the adoption of SFAS 157 changes the valuation of certain freestanding derivatives by moving from a mid to bid pricing convention as well as changing the valuation of embedded derivatives associated with annuity contracts. The change in valuation of embedded derivatives associated with annuity contracts results from the incorporation of risk margins and the Company's own credit standing in their valuation. As a result of the adoption of SFAS 157 on January 1, 2008, the Company expects such changes to result in a gain in the range of $30 million to $50 million, net of income tax, in the Company's statement of income. In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities ("SFAS 159"). SFAS 159 permits entities the option to measure most financial instruments and certain other items at fair value at specified election dates and to report related unrealized gains and losses in earnings. The fair value option is generally applied on an instrument- by-instrument basis and is generally an irrevocable election. Effective January 1, 2008, the Company did not elect the fair value option for any instruments. Accordingly, there was no impact on the Company's retained earnings or equity as of January 1, 2008. In June 2007, the AICPA issued SOP 07-1, Clarification of the Scope of the Audit and Accounting Guide Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies ("SOP 07-1"). Upon adoption of SOP 07-1, the Company must also adopt the provisions of FASB Staff Position FSP No. FIN 46(r)-7, Application of FASB Interpretation No. 46 to Investment Companies, which permanently exempts investment companies from applying the provisions of FIN No. 46(r), Consolidation of Variable Interest Entities -- An Interpretation of Accounting Research Bulletin No. 51, and its December 2003 revision to investments carried at fair value. SOP 07-1 provides guidance for determining whether an entity falls within the scope of the AICPA Audit and Accounting Guide Investment Companies and whether investment company accounting should be retained by a parent company upon consolidation of an investment company subsidiary or by an equity method investor in an investment company. In certain circumstances, SOP 07-1 precludes retention of specialized accounting for investment companies (i.e., fair value accounting), when similar direct investments exist in the consolidated group and are measured on a basis inconsistent with that applied to investment companies. Additionally, SOP 07-1 precludes retention of specialized accounting for investment companies if the reporting entity does not distinguish through documented policies the nature and type of investments to be held in the investment companies from those made in the consolidated group where other accounting guidance is being applied. In February 2008, the FASB issued FSP No. SOP 7-1-1, Effective Date of AICPA Statement of Position 07-1, which delays indefinitely the effective date of SOP 07-1. The Company is closely monitoring further FASB developments. In May 2007, the FASB issued FSP No. FIN 39-1, Amendment of FASB Interpretation No. 39 ("FSP 39-1"). FSP 39-1 amends FIN No. 39, Offsetting of Amounts Related to Certain Contracts ("FIN 39"), to permit a reporting entity to offset fair value amounts recognized for the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement that have been offset in accordance with FIN 39. FSP 39-1 also amends FIN 39 for certain terminology modifications. FSP 39-1 applies to fiscal years beginning after November 15, 2007. FSP 39-1 will be applied retrospectively, unless it is impracticable to do so. Upon adoption of FSP 39-1, the Company is permitted to change its accounting policy to offset or not offset fair value amounts recognized for derivative instruments under master netting arrangements. The adoption of FSP 39-1 will not have an impact on the Company's financial statements. F-22 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) Business Combinations In December 2007, the FASB issued SFAS No. 141 (revised 2007), Business Combinations -- A Replacement of FASB Statement No. 141 ("SFAS 141(r)") and SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements -- An Amendment of ARB No. 51 ("SFAS 160") which are effective for fiscal years beginning after December 15, 2008. Under SFAS 141(r) and SFAS 160: - All business combinations (whether full, partial, or "step" acquisitions) result in all assets and liabilities of an acquired business being recorded at fair value, with limited exceptions. - Acquisition costs are generally expensed as incurred; restructuring costs associated with a business combination are generally expensed as incurred subsequent to the acquisition date. - The fair value of the purchase price, including the issuance of equity securities, is determined on the acquisition date. - Certain acquired contingent liabilities are recorded at fair value at the acquisition date and subsequently measured at either the higher of such amount or the amount determined under existing guidance for non-acquired contingencies. - Changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date generally affect income tax expense. - Noncontrolling interests (formerly known as "minority interests") are valued at fair value at the acquisition date and are presented as equity rather than liabilities. - When control is attained on previously noncontrolling interests, the previously held equity interests are remeasured at fair value and a gain or loss is recognized. - Purchases or sales of equity interests that do not result in a change in control are accounted for as equity transactions. - When control is lost in a partial disposition, realized gains or losses are recorded on equity ownership sold and the remaining ownership interest is remeasured and holding gains or losses are recognized. The pronouncements are effective for fiscal years beginning on or after December 15, 2008 and apply prospectively to business combinations. Presentation and disclosure requirements related to noncontrolling interests must be retrospectively applied. The Company is currently evaluating the impact of SFAS 141(r) on its accounting for future acquisitions and the impact of SFAS 160 on its financial statements. Other In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities -- An Amendment of FASB Statement No. 133 ("SFAS 161"). SFAS 161 requires enhanced qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. SFAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. The Company is currently evaluating the impact of SFAS 161 on its financial statements. In February 2008, the FASB issued FSP No. FAS 140-3, Accounting for Transfers of Financial Assets and Repurchase Financing Transactions ("FSP 140- 3"). FSP 140-3 provides guidance for evaluating whether to account for a transfer of a financial asset and repurchase financing as a single transaction or as two separate transactions. FSP 140-3 is effective prospectively for financial statements issued for fiscal years beginning after November 15, 2008. The Company is currently evaluating the impact of FSP 140-3 on its financial statements. F-23 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) In January 2008, the FASB cleared SFAS 133 Implementation Issue E23, Clarification of the Application of the Shortcut Method ("Issue E23"). Issue E23 amends SFAS 133 by permitting interest rate swaps to have a non-zero fair value at inception, as long as the difference between the transaction price (zero) and the fair value (exit price), as defined by SFAS 157, is solely attributable to a bid-ask spread. In addition, entities would not be precluded from assuming no ineffectiveness in a hedging relationship of interest rate risk involving an interest bearing asset or liability in situations where the hedged item is not recognized for accounting purposes until settlement date as long as the period between trade date and settlement date of the hedged item is consistent with generally established conventions in the marketplace. Issue E23 is effective for hedging relationships designated on or after January 1, 2008. The Company does not expect the adoption of Issue E23 to have a material impact on its financial statements. In December 2007, the FASB ratified as final the consensus on EITF Issue No. 07-6, Accounting for the Sale of Real Estate When the Agreement Includes a Buy-Sell Clause ("EITF 07-6"). EITF 07-6 addresses whether the existence of a buy-sell arrangement would preclude partial sales treatment when real estate is sold to a jointly owned entity. The consensus concludes that the existence of a buy-sell clause does not necessarily preclude partial sale treatment under current guidance. EITF 07-6 applies prospectively to new arrangements entered into and assessments on existing transactions performed in fiscal years beginning after December 15, 2008. The Company does not expect the adoption of EITF 07-6 to have a material impact on its financial statements. 2. INVESTMENTS FIXED MATURITY AND EQUITY SECURITIES AVAILABLE-FOR-SALE The following tables present the cost or amortized cost, gross unrealized gain and loss, and estimated fair value of the Company's fixed maturity and equity securities, the percentage that each sector represents by the total fixed maturity securities holdings and by the total equity securities holdings at:
DECEMBER 31, 2007 ------------------------------------------------ GROSS COST OR UNREALIZED AMORTIZED ------------ ESTIMATED % OF COST GAIN LOSS FAIR VALUE TOTAL --------- ---- ---- ---------- ----- (IN MILLIONS) U.S. corporate securities............... $1,736 $25 $49 $1,712 39.6% Residential mortgage-backed securities.. 953 10 7 956 22.1 Foreign corporate securities............ 509 16 7 518 12.0 U.S. Treasury/agency securities......... 413 17 -- 430 9.9 Commercial mortgage-backed securities... 406 4 6 404 9.3 Asset-backed securities................. 213 1 9 205 4.7 Foreign government securities........... 71 11 -- 82 1.9 State and political subdivision securities............................ 21 -- -- 21 0.5 ------ --- --- ------ ----- Total fixed maturity securities....... $4,322 $84 $78 $4,328 100.0% ====== === === ====== ===== Non-redeemable preferred stock.......... $ 11 $-- $ 1 $ 10 100.0% ------ --- --- ------ ----- Total equity securities............... $ 11 $-- $ 1 $ 10 100.0% ====== === === ====== =====
F-24 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED)
DECEMBER 31, 2006 -------------------------------------------- GROSS COST OR UNREALIZED AMORTIZED ----------- ESTIMATED % OF COST GAIN LOSS FAIR VALUE TOTAL --------- ---- ---- ---------- ----- (IN MILLIONS) U.S. corporate securities................ $1,775 $29 $24 $1,780 43.7% Residential mortgage-backed securities... 857 7 3 861 21.1 Foreign corporate securities............. 430 14 4 440 10.8 U.S. Treasury/agency securities.......... 349 1 3 347 8.5 Commercial mortgage-backed securities.... 375 2 5 372 9.1 Asset-backed securities.................. 201 1 1 201 4.9 Foreign government securities............ 66 7 -- 73 1.8 State and political subdivision securities............................. 3 -- -- 3 0.1 ------ --- --- ------ ----- Total fixed maturity securities........ $4,056 $61 $40 $4,077 100.0% ====== === === ====== ===== Non-redeemable preferred stocks.......... $ 19 $-- $-- $ 19 100.0% ------ --- --- ------ ----- Total equity securities................ $ 19 $-- $-- $ 19 100.0% ====== === === ====== =====
The Company held foreign currency derivatives with notional amounts of $26 million and $23 million to hedge the exchange rate risk associated with foreign denominated fixed maturity securities at December 31, 2007 and 2006, respectively. The Company is not exposed to any significant concentrations of credit risk in its equity securities portfolio. The Company is exposed to concentrations of credit risk related to U.S. Treasury securities and obligations of U.S. government corporations and agencies. Additionally, at December 31, 2007 and 2006, the Company had exposure to fixed maturity securities backed by sub-prime mortgages with estimated fair values of $32 million and $46 million, respectively, and unrealized losses of $4 million and $1 million, respectively. These securities are classified within asset-backed securities in the immediately preceding table. At December 31, 2007, 11% have been guaranteed by financial guarantors, all of which were guaranteed by financial guarantors who remained Aaa rated through February 2008. Overall, at December 31, 2007, $83 million of the estimated fair value of the Company's fixed maturity securities were credit enhanced by financial guarantors of which $42 million, $21 million and $20 million at December 31, 2007, are included within corporate securities, asset-backed securities and state and political subdivisions, respectively, and 80% were guaranteed by financial guarantors who remained Aaa rated through February 2008. The Company held fixed maturity securities at estimated fair values that were below investment grade or not rated by an independent rating agency that totaled $184 million and $180 million at December 31, 2007 and 2006, respectively. These securities had net unrealized gains of $4 million and $8 million at December 31, 2007 and 2006, respectively. F-25 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date (excluding scheduled sinking funds), are as follows:
DECEMBER 31, ----------------------------------------------- 2007 2006 ---------------------- ---------------------- AMORTIZED ESTIMATED AMORTIZED ESTIMATED COST FAIR VALUE COST FAIR VALUE --------- ---------- --------- ---------- (IN MILLIONS) Due in one year or less................. $ 152 $ 153 $ 177 $ 176 Due after one year through five years... 795 805 993 1,000 Due after five years through ten years.. 658 660 487 491 Due after ten years..................... 1,145 1,145 966 976 ------ ------ ------ ------ Subtotal.............................. 2,750 2,763 2,623 2,643 Mortgage-backed and asset-backed securities............................ 1,572 1,565 1,433 1,434 ------ ------ ------ ------ Total fixed maturity securities....... $4,322 $4,328 $4,056 $4,077 ====== ====== ====== ======
Fixed maturity securities not due at a single maturity date have been included in the above table in the year of final contractual maturity. Actual maturities may differ from contractual maturities due to the exercise of prepayment options. Sales or disposals of fixed maturity and equity securities classified as available-for-sale are as follows:
YEARS ENDED DECEMBER 31, -------------------------- 2007 2006 2005 ---- ------ ------ (IN MILLIONS) Proceeds............................................. $958 $1,760 $1,873 Gross investment gains............................... $ 24 $ 7 $ 7 Gross investment losses.............................. $(37) $ (32) $ (29)
F-26 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) UNREALIZED LOSS FOR FIXED MATURITY AND EQUITY SECURITIES AVAILABLE-FOR-SALE The following tables present the estimated fair value and gross unrealized loss of the Company's fixed maturity (aggregated by sector) and equity securities in an unrealized loss position, aggregated by length of time that the securities have been in a continuous unrealized loss position at:
DECEMBER 31, 2007 --------------------------------------------------------------------------- EQUAL TO OR GREATER LESS THAN 12 MONTHS THAN 12 MONTHS TOTAL ----------------------- ----------------------- ----------------------- GROSS GROSS GROSS ESTIMATED UNREALIZED ESTIMATED UNREALIZED ESTIMATED UNREALIZED FAIR VALUE LOSS FAIR VALUE LOSS FAIR VALUE LOSS ---------- ---------- ---------- ---------- ---------- ---------- (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) U.S. corporate securities....... $ 693 $28 $322 $21 $1,015 $49 Residential mortgage-backed securities.................... 240 6 54 1 294 7 Foreign corporate securities.... 149 3 93 4 242 7 U.S. Treasury/agency securities.................... 7 -- 5 -- 12 -- Commercial mortgage-backed securities.................... 36 1 149 5 185 6 Asset-backed securities......... 107 5 50 4 157 9 Foreign government securities... -- -- -- -- -- -- State and political subdivision securities.................... 10 -- -- -- 10 -- ------ --- ---- --- ------ --- Total fixed maturity securities................. $1,242 $43 $673 $35 $1,915 $78 ====== === ==== === ====== === Equity securities............... $ 8 $-- $ 2 $ 1 $ 10 $ 1 ====== === ==== === ====== === Total number of securities in an unrealized loss position...... 273 157 ====== ====
DECEMBER 31, 2006 --------------------------------------------------------------------------- EQUAL TO OR GREATER LESS THAN 12 MONTHS THAN 12 MONTHS TOTAL ----------------------- ----------------------- ----------------------- GROSS GROSS GROSS ESTIMATED UNREALIZED ESTIMATED UNREALIZED ESTIMATED UNREALIZED FAIR VALUE LOSS FAIR VALUE LOSS FAIR VALUE LOSS ---------- ---------- ---------- ---------- ---------- ---------- (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) U.S. corporate securities....... $ 531 $ 7 $445 $17 $ 976 $24 Residential mortgage-backed securities.................... 219 1 184 2 403 3 Foreign corporate securities.... 97 1 93 3 190 4 U.S. Treasury/agency securities.................... 205 3 8 -- 213 3 Commercial mortgage-backed securities.................... 105 1 152 4 257 5 Asset-backed securities......... 46 -- 36 1 82 1 Foreign government securities... 2 -- 7 -- 9 -- State and political subdivision securities.................... -- -- -- -- -- -- ------ --- ---- --- ------ --- Total fixed maturity securities................. $1,205 $13 $925 $27 $2,130 $40 ====== === ==== === ====== === Equity securities............... $ 4 $-- $ -- $-- $ 4 $-- ====== === ==== === ====== === Total number of securities in an unrealized loss position...... 199 202 ====== ====
F-27 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) AGING OF GROSS UNREALIZED LOSS FOR FIXED MATURITY AND EQUITY SECURITIES AVAILABLE-FOR-SALE The following tables present the cost or amortized cost, gross unrealized loss and number of securities for fixed maturity and equity securities, where the estimated fair value had declined and remained below cost or amortized cost by less than 20%, or 20% or more at:
DECEMBER 31, 2007 ------------------------------------------------------------ COST OR AMORTIZED GROSS UNREALIZED NUMBER OF COST LOSS SECURITIES ------------------ ------------------ ------------------ LESS THAN 20% OR LESS THAN 20% OR LESS THAN 20% OR 20% MORE 20% MORE 20% MORE --------- ------ --------- ------ --------- ------ (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) Less than six months.................... $ 720 $34 $ 9 $ 8 150 10 Six months or greater but less than nine months................................ 360 -- 17 -- 81 -- Nine months or greater but less than twelve months......................... 178 -- 9 -- 38 -- Twelve months or greater................ 712 -- 36 -- 157 -- ------ --- --- --- Total................................. $1,970 $34 $71 $ 8 ====== === === ===
DECEMBER 31, 2006 ------------------------------------------------------------ COST OR AMORTIZED GROSS UNREALIZED NUMBER OF COST LOSS SECURITIES ------------------ ------------------ ------------------ LESS THAN 20% OR LESS THAN 20% OR LESS THAN 20% OR 20% MORE 20% MORE 20% MORE --------- ------ --------- ------ --------- ------ (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) Less than six months.................... $ 908 $-- $ 8 $-- 121 -- Six months or greater but less than nine months................................ 95 -- 1 -- 25 -- Nine months or greater but less than twelve months......................... 219 -- 4 -- 53 -- Twelve months or greater................ 952 -- 27 -- 202 -- ------ --- --- --- Total................................. $2,174 $-- $40 $-- ====== === === ===
At December 31, 2007 and 2006, $71 million and $40 million, respectively, of unrealized losses related to securities with an unrealized loss position of less than 20% of cost or amortized cost, which represented 4% and 2%, respectively, of the cost or amortized cost of such securities. At December 31, 2007, $8 million of unrealized losses related to securities with an unrealized loss position of 20% or more of cost or amortized cost, which represented 24% of the cost or amortized cost of such securities. All of such unrealized losses of $8 million were related to securities that were in an unrealized loss position for a period of less than six months. At December 31, 2006, there were no unrealized losses related to securities with an unrealized loss position of 20% or more of cost or amortized cost. F-28 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) At December 31, 2007 and 2006, the Company had $79 million and $40 million, respectively, of gross unrealized losses related to its fixed maturity and equity securities. These securities are concentrated, calculated as a percentage of gross unrealized loss, as follows:
DECEMBER 31, ------------- 2007 2006 ---- ---- SECTOR: U.S. corporate securities.................................. 62% 60% Asset-backet securities.................................... 11 2 Residential mortgage-backed securities..................... 9 8 Foreign corporate securities............................... 9 10 Commercial mortgage-backed securities...................... 8 12 U.S. Treasury/agency securities............................ -- 8 Other...................................................... 1 -- --- --- Total................................................... 100% 100% === === INDUSTRY: Finance.................................................... 38% 12% Industrial................................................. 22 38 Mortgage-backed............................................ 17 20 Utility.................................................... 9 14 Government................................................. -- 8 Other...................................................... 14 8 --- --- Total................................................... 100% 100% === ===
As described more fully in Note 1, the Company performs a regular evaluation, on a security-by-security basis, of its investment holdings in accordance with its impairment policy in order to evaluate whether such securities are other-than-temporarily impaired. One of the criteria which the Company considers in its other-than-temporary impairment analysis is its intent and ability to hold securities for a period of time sufficient to allow for the recovery of their value to an amount equal to or greater than cost or amortized cost. The Company's intent and ability to hold securities considers broad portfolio management objectives such as asset/liability duration management, issuer and industry segment exposures, interest rate views and the overall total return focus. In following these portfolio management objectives, changes in facts and circumstances that were present in past reporting periods may trigger a decision to sell securities that were held in prior reporting periods. Decisions to sell are based on current conditions or the Company's need to shift the portfolio to maintain its portfolio management objectives including liquidity needs or duration targets on asset/liability managed portfolios. The Company attempts to anticipate these types of changes and if a sale decision has been made on an impaired security and that security is not expected to recover prior to the expected time of sale, the security will be deemed other-than- temporarily impaired in the period that the sale decision was made and an other- than-temporary impairment loss will be recognized. Based upon the Company's current evaluation of the securities in accordance with its impairment policy, the cause of the decline being principally attributable to the general rise in interest rates during the holding period, and the Company's current intent and ability to hold the fixed maturity and equity securities with unrealized losses for a period of time sufficient for them to recover, the Company has concluded that the aforementioned securities are not other-than-temporarily impaired. F-29 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) SECURITIES LENDING The Company participates in a securities lending program whereby blocks of securities, which are included in fixed maturity and equity securities, are loaned to third parties, primarily major brokerage firms. The Company requires a minimum of 102% of the fair value of the loaned securities to be separately maintained as collateral for the loans. Securities with a cost or amortized cost of $881 million and $860 million and an estimated fair value of $893 million and $865 million were on loan under the program at December 31, 2007 and 2006, respectively. Securities loaned under such transactions may be sold or repledged by the transferee. The Company was liable for cash collateral under its control of $917 million and $896 million at December 31, 2007 and 2006, respectively. There was no security collateral on deposit from customers in connection with the securities lending transactions at December 31, 2007 and 2006. ASSETS ON DEPOSIT AND ASSETS PLEDGED AS COLLATERAL The Company had investment assets on deposit with regulatory agencies with a fair market value of $6 million at both December 31, 2007 and 2006, consisting primarily of fixed maturity securities. Certain of the Company's fixed maturity securities are pledged as collateral for various derivative transactions as described in Note 3. MORTGAGE LOANS ON REAL ESTATE Mortgage loans on real estate are categorized as follows:
DECEMBER 31, ----------------------------------- 2007 2006 ---------------- ---------------- AMOUNT PERCENT AMOUNT PERCENT ------ ------- ------ ------- (IN MILLIONS) Commercial mortgage loans..................... $286 70% $350 73% Agricultural mortgage loans................... 121 30 129 27 ---- --- ---- --- Total....................................... 407 100% 479 100% === === Less: Valuation allowances.................... 2 1 ---- ---- Total mortgage loans on real estate......... $405 $478 ==== ====
Mortgage loans on real estate are collateralized by properties primarily located in the United States. At December 31, 2007, 25%, 11% and 7% of the value of the Company's mortgage loans on real estate were located in California, Rhode Island and Georgia, respectively. Generally, the Company, as the lender, only loans up to 75% of the purchase price of the underlying real estate. Information regarding loan valuation allowances for mortgage loans on real estate is as follows:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Balance at January 1,.................................... $ 1 $ 2 $ 1 Additions................................................ 2 -- 1 Deductions............................................... (1) (1) -- --- --- --- Balance at December 31,.................................. $ 2 $ 1 $ 2 === === ===
F-30 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) The Company had $18 million of impaired mortgage loans, net of $1 million of valuation allowances, at December 31, 2007. The average investment on impaired loans was $4 million and interest income on impaired loans was $1 million for the year ended December 31, 2007. There were no investments in impaired loans for both years ended December 31, 2006 and 2005. There was no investment in restructured loans for the years ended December 31, 2007 and 2006. There were no mortgage loans with scheduled payments of 90 days or more past due on which interest is still accruing at both December 31, 2007 and 2006. There were no mortgage loans on which interest was no longer accrued at both December 31, 2007 and 2006. There were no mortgage loans in foreclosure at both December 31, 2007 and 2006. REAL ESTATE JOINT VENTURES The Company had real estate joint ventures of $13 million at December 31, 2007. There were no real estate joint ventures at December 31, 2006. At December 31, 2007, $11 million or 85% and $2 million or 15%, of real estate joint ventures consisted of development joint ventures and real estate investment funds, respectively. The Company's real estate joint ventures are located in the United States. At December 31, 2007, 20%, 9%, 7% and 6% of the Company's real estate joint ventures were located California, Texas, Georgia and Washington, respectively. OTHER LIMITED PARTNERSHIP INTERESTS The carrying value of other limited partnership interests (which primarily represent ownership interests in pooled investment funds that make private equity investments in companies in the United States and overseas) was $200 million and $33 million at December 31, 2007 and 2006, respectively. Included within other limited partnership interests at December 31, 2007 and 2006 were $86 million and $30 million, respectively, of hedge funds. For the years ended December 31, 2007 and 2006, net investment income (loss) from other limited partnership interests included $(4) million and $1 million respectively, related to hedge funds. There was no net investment income from other limited partnership interests related to hedge funds for the year ended December 31, 2005. NET INVESTMENT INCOME The components of net investment income are as follows:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Fixed maturity securities.............................. $251 $244 $211 Equity securities...................................... 1 -- -- Mortgage loans on real estate.......................... 29 32 28 Policy loans........................................... 3 2 3 Other limited partnership interests.................... (3) 1 -- Cash, cash equivalents and short-term investments...... 14 13 10 ---- ---- ---- Total investment income........................... 295 292 252 Less: Investment expenses.............................. 51 50 31 ---- ---- ---- Net investment income............................. $244 $242 $221 ==== ==== ====
F-31 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) For each of the years ended December 31, 2007 and 2006, affiliated investment expense of $2 million is included in the table above. There were no affiliated investment expenses for the year ended December 31, 2005. See "-Related Party Investment Transactions" for discussion of affiliated net investment income related to short-term investments included in the table above. NET INVESTMENT GAINS (LOSSES) The components of net investment gains (losses) are as follows:
YEARS ENDED DECEMBER 31, ------------------- 2007 2006 2005 ---- ----- ---- (IN MILLIONS) Fixed maturity securities.............................. $(13) $ (25) $(22) Mortgage loans on real estate.......................... (1) 1 (1) Derivatives............................................ 253 (83) (10) Other.................................................. -- -- 6 ---- ----- ---- Net investment gains (losses)........................ $239 $(107) $(27) ==== ===== ====
The Company periodically disposes of fixed maturity and equity securities at a loss. Generally, such losses are insignificant in amount or in relation to the cost basis of the investment, are attributable to declines in fair value occurring in the period of the disposition or are as a result of management's decision to sell securities based on current conditions or the Company's need to shift the portfolio to maintain its portfolio management objectives. There were no writedowns recorded during 2007, 2006 and 2005 for other- than-temporarily impaired available-for-sale securities. NET UNREALIZED INVESTMENT GAINS (LOSSES) The components of net unrealized investment gains (losses), included in accumulated other comprehensive income (loss), are as follows:
YEARS ENDED DECEMBER 31, ------------------- 2007 2006 2005 ---- ---- ----- (IN MILLIONS) Fixed maturity securities.............................. $ 6 $ 21 $ 42 Equity securities...................................... (1) -- -- Derivatives............................................ (3) (2) (3) ---- ---- ----- Subtotal............................................. 2 19 39 ---- ---- ----- Amounts allocated from: Insurance liability loss recognition................. -- -- (78) DAC.................................................. (15) (21) (29) ---- ---- ----- Subtotal............................................. (15) (21) (107) ---- ---- ----- Deferred income tax.................................... 5 1 24 ---- ---- ----- Subtotal............................................. (10) (20) (83) ---- ---- ----- Net unrealized investment gains (losses)............... $ (8) $ (1) $ (44) ==== ==== =====
F-32 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) The changes in net unrealized investment gains (losses) are as follows:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Balance, January 1,..................................... $ (1) $(44) $ 36 Unrealized investment gains (losses) during the year.... (17) (20) (54) Unrealized investment gains (losses) relating to: Insurance liability gain (loss) recognition........... -- 78 (78) DAC................................................... 6 8 9 Deferred income tax................................... 4 (23) 43 ---- ---- ---- Balance, December 31,................................... $ (8) $ (1) $(44) ==== ==== ==== Net change in unrealized investment gains (losses)...... $ (7) $ 43 $(80) ==== ==== ====
VARIABLE INTEREST ENTITIES The following table presents the total assets of and maximum exposure to loss relating to variable interest entities ("VIEs") for which the Company has concluded that it holds significant variable interests but it is not the primary beneficiary and which have not been consolidated:
DECEMBER 31, 2007 ----------------------- MAXIMUM TOTAL EXPOSURE TO ASSETS(1) LOSS(2) --------- ----------- (IN MILLIONS) Other limited partnership interests(3)................. $1,995 $181 Trust preferred securities(4).......................... 900 25 ------ ---- Total................................................ $2,895 $206 ====== ====
-------- (1) The assets of other limited partnership interests and trust preferred securities are reflected at the carrying amounts at which such assets would have been reflected on the Company's balance sheet had the Company consolidated the VIE from the date of its initial investment in the entity. (2) The maximum exposure to loss relating to other limited partnership interests and trust preferred securities is equal to the carrying amounts plus any unfunded commitments, reduced by amounts guaranteed by other partners. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (3) Other limited partnership interests include partnerships established for the purpose of investing in public and private debt and equity securities. (4) Trust preferred securities are complex, uniquely structured investments which contain features of both equity and debt, may have an extended or no stated maturity, and may be callable at the issuer's option after a defined period of time. RELATED PARTY INVESTMENT TRANSACTIONS As of December 31, 2007 and 2006, the Company held $480 million and $350 million, respectively, of its total invested assets in the Metropolitan Money Market Pool and the MetLife Intermediate Income Pool which are affiliated partnerships. These amounts are included in short-term investments. Net investment income from these F-33 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) invested assets was $12 million, $9 million and $4 million for the years ended December 31, 2007, 2006 and 2005, respectively. In the normal course of business, the Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. Assets transferred to and from affiliates, inclusive of amounts related to reinsurance agreements, are as follows:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Estimated fair market value of assets transferred to affiliates............................................ $265 $65 $ 79 Amortized cost of assets transferred to affiliates...... $265 $66 $ 78 Net investment gains (losses) recognized on transfers... $ -- $(1) $ 1 Estimated fair market value of assets transferred from affiliates............................................ $255 $43 $753
3. DERIVATIVE FINANCIAL INSTRUMENTS TYPES OF DERIVATIVE FINANCIAL INSTRUMENTS The following table presents the notional amount and current market or fair value of derivative financial instruments held at:
DECEMBER 31, 2007 DECEMBER 31, 2006 ------------------------------- ------------------------------- CURRENT MARKET CURRENT MARKET OR FAIR VALUE OR FAIR VALUE NOTIONAL -------------------- NOTIONAL -------------------- AMOUNT ASSETS LIABILITIES AMOUNT ASSETS LIABILITIES -------- ------ ----------- -------- ------ ----------- (IN MILLIONS) Interest rate swaps............. $ 10 $ -- $ -- $ 78 $ -- $ 4 Interest rate floors............ 2,000 26 -- 2,000 15 -- Interest rate caps.............. 1,000 -- -- 1,000 -- -- Financial futures............... 150 -- 2 36 -- -- Foreign currency swaps.......... 26 -- 5 23 1 3 Credit default swaps............ 48 -- -- 34 -- -- ------ ---- ---- ------ ---- --- Total......................... $3,234 $26 $ 7 $3,171 $16 $ 7 ====== ==== ==== ====== ==== ===
The above table does not include notional amounts for equity variance swaps. At both December 31, 2007 and 2006, the Company owned 2,000 equity variance swaps. Fair values for these equity variance swaps were insignificant and were not included in the preceding table. F-34 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) The following table presents the notional amount of derivative financial instruments by maturity at December 31, 2007:
REMAINING LIFE ---------------------------------------------------------------------- ONE YEAR AFTER ONE YEAR AFTER FIVE YEARS AFTER OR LESS THROUGH FIVE YEARS THROUGH TEN YEARS TEN YEARS TOTAL -------- ------------------ ----------------- --------- ------ (IN MILLIONS) Interest rate swaps...... $ -- $ 10 $ -- $ -- $ 10 Interest rate floors..... -- -- 2,000 -- 2,000 Interest rate caps....... 1,000 -- -- -- 1,000 Financial futures........ 150 -- -- -- 150 Foreign currency swaps... -- 5 11 10 26 Credit default swaps..... -- 37 11 -- 48 ------ ---- ------ ---- ------ Total.................. $1,150 $52 $2,022 $10 $3,234 ====== ==== ====== ==== ======
Interest rate swaps are used by the Company primarily to reduce market risks from changes in interest rates and to alter interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. Interest rate caps and floors are used by the Company primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities (duration mismatches), as well as to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level, respectively. In exchange-traded interest rate (Treasury and swap) futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate securities, and to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded interest rate futures are used primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, and to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury curve performance. The value of interest rate futures is substantially impacted by changes in interest rates and they can be used to modify or hedge existing interest rate risk. Foreign currency swaps are used by the Company to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets denominated in foreign currencies. In a foreign currency swap transaction, the Company agrees with another party to exchange, at specified intervals, the difference between one currency and another at a forward exchange rate calculated by reference to an agreed upon principal amount. The principal amount of each currency is exchanged at the inception and termination of the currency swap by each party. Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. As noted above, the equity variance swaps are not included in the preceding table. F-35 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) Certain credit default swaps are used by the Company to hedge against credit-related changes in the value of its investments and to diversify its credit risk exposure in certain portfolios. In a credit default swap transaction, the Company agrees with another party, at specified intervals, to pay a premium to insure credit risk. If a credit event, as defined by the contract, occurs, generally the contract will require the swap to be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit default swaps are also used to synthetically create investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and a cash instrument such as a U.S. Treasury or Agency security. HEDGING The following table presents the notional amount and fair value of derivatives by type of hedge designation at:
DECEMBER 31, 2007 DECEMBER 31, 2006 ------------------------------- ------------------------------- FAIR VALUE FAIR VALUE NOTIONAL -------------------- NOTIONAL -------------------- AMOUNT ASSETS LIABILITIES AMOUNT ASSETS LIABILITIES -------- ------ ----------- -------- ------ ----------- (IN MILLIONS) Fair value...................... $ 4 $ -- $ -- $ -- $ -- $ -- Cash flow....................... 4 -- -- 9 1 -- Non-qualifying.................. 3,226 26 7 3,162 15 7 ------ ---- ---- ------ ---- ---- Total......................... $3,234 $26 $ 7 $3,171 $16 $ 7 ====== ==== ==== ====== ==== ====
The Company recognized insignificant net investment income/(expenses) from qualifying hedge settlement payments for the years ended December 31, 2007, 2006 and 2005. The Company recognized $1 million of net investment losses from non- qualifying hedge settlement payments for both of the years ended December 31, 2007 and 2006. The Company recognized insignificant net investment gains (losses) from non-qualifying hedge settlement payments for the year ended December 31, 2005. FAIR VALUE HEDGES The Company designates and accounts for the following as fair value hedges when they have met the requirements of SFAS 133: (i) interest rate swaps to convert fixed rate investments to floating rate investments; and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated investments. The Company recognized insignificant amounts in net investment gains (losses) representing the ineffective portion of all fair value hedges for the years ended December 31, 2007, 2006 and 2005. Changes in the fair value of the derivatives and the hedged items were insignificant for the years ended December 31, 2007, 2006 and 2005. All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. There were no instances in which the Company discontinued fair value hedge accounting due to a hedged firm commitment no longer qualifying as a fair value hedge. CASH FLOW HEDGES The Company utilizes foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated investments. The Company designates and accounts for these foreign currency swaps as cash flow hedges when they have met the requirements of SFAS 133. F-36 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) For the years ended December 31, 2007 and 2006, the Company did not recognize any net investment gains (losses) which represented the ineffective portion of all cash flow hedges. For the year ended December 31, 2005, the Company recognized insignificant net investment gains (losses), which represented the ineffective portion of all cash flow hedges. All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. For the years ended December 31, 2007, 2006 and 2005, there were no instances in which the Company discontinued cash flow hedge accounting because the forecasted transactions did not occur on the anticipated date or in the additional time period permitted by SFAS 133. There were no hedged forecasted transactions, other than the receipt or payment of variable interest payments for the years ended December 31, 2007, 2006 and 2005. The following table presents the components of other comprehensive income (loss), before income tax, related to cash flow hedges:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Other comprehensive income (loss) balance at January 1,.. $(2) $(3) $(4) Gains (losses) deferred in other comprehensive income (loss) on the effective portion of cash flow hedges.... (1) 2 -- Amounts reclassified to net investment gains (losses).... -- (1) 1 --- --- --- Other comprehensive income (loss) balance at December 31,.................................................... $(3) $(2) $(3) === === ===
At December 31, 2007, an insignificant portion of the deferred net loss on derivatives accumulated in other comprehensive income (loss) is expected to be reclassified to earnings during the year ending December 31, 2008. NON-QUALIFYING DERIVATIVES AND DERIVATIVES FOR PURPOSES OTHER THAN HEDGING The Company enters into the following derivatives that do not qualify for hedge accounting under SFAS 133 or for purposes other than hedging: (i) interest rate swaps, purchased caps and floors, and interest rate futures to economically hedge its exposure to interest rate volatility; (ii) foreign currency swaps to economically hedge its exposure to adverse movements in exchange rates; (iii) credit default swaps to economically hedge exposure to adverse movements in credit; (iv) credit default swaps to synthetically create investments; and (v) equity variance swaps to economically hedge liabilities embedded in certain variable annuity products. The following table presents changes in fair value related to derivatives that do not qualify for hedge accounting:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Net investment gains (losses), excluding embedded derivatives........................................... $5 $(12) $11
EMBEDDED DERIVATIVES The Company has certain embedded derivatives that are required to be separated from their host contracts and accounted for as derivatives. These host contracts include guaranteed minimum withdrawal contracts, guaranteed minimum accumulation contracts and affiliated reinsurance contracts related to guaranteed minimum withdrawal contracts, guaranteed minimum accumulation contracts and certain guaranteed minimum income contracts. F-37 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) The following table presents the fair value of the Company's embedded derivatives at:
DECEMBER 31, ------------- 2007 2006 ---- ---- (IN MILLIONS) Embedded derivative assets................................... $175 $-- Embedded derivative liabilities.............................. $ -- $87
The following table presents changes in fair value related to embedded derivatives:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Net investment gains (losses).......................... $249 $(70) $(17)
CREDIT RISK The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments. Generally, the current credit exposure of the Company's derivative contracts is limited to the fair value at the reporting date. The credit exposure of the Company's derivative transactions is represented by the fair value of contracts with a net positive fair value at the reporting date. The Company manages its credit risk related to over-the-counter derivatives by entering into transactions with creditworthy counterparties, maintaining collateral arrangements and through the use of master agreements that provide for a single net payment to be made by one counterparty to another at each due date and upon termination. Because exchange traded futures are effected through regulated exchanges, and positions are marked to market on a daily basis, the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivative instruments. The Company enters into various collateral arrangements, which require both the pledging and accepting of collateral in connection with its derivative instruments. As of December 31, 2007 and 2006, the Company was obligated to return cash collateral under its control of $11 million and $5 million, respectively. This unrestricted cash collateral is included in cash and cash equivalents and the obligation to return it is included in payables for collateral under securities loaned and other transactions in the balance sheets. The Company has exchange traded futures, which require the pledging of collateral. As of both December 31, 2007 and 2006, the Company pledged collateral of $3 million, which is included in fixed maturity securities. The counterparties are permitted by contract to sell or repledge this collateral. F-38 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) 4. DEFERRED POLICY ACQUISITION COSTS Information regarding DAC is as follows:
DAC ------------- (IN MILLIONS) Balance at January 1, 2005.................................... $ 678 Capitalizations............................................. 624 Less: Amortization related to: Net investment gains (losses)............................ (2) Unrealized investment gains (losses)..................... (9) Other expenses........................................... 113 ------ Total amortization..................................... 102 ------ Balance at December 31, 2005.................................. 1,200 Capitalizations............................................. 472 Less: Amortization related to: Net investment gains (losses)............................ (34) Unrealized investment gains (losses)..................... (8) Other expenses........................................... 181 ------ Total amortization..................................... 139 ------ Balance at December 31, 2006.................................. 1,533 Capitalizations............................................. 556 Less: Amortization related to: Net investment gains (losses)............................ 77 Unrealized investment gains (losses)..................... (6) Other expenses........................................... 212 ------ Total amortization..................................... 283 ------ Balance at December 31, 2007.................................. $1,806 ======
Amortization of DAC is related to (i) investment gains and losses and the impact of such gains and losses on the amount of the amortization; (ii) unrealized investment gains and losses to provide information regarding the amount that would have been amortized if such gains and losses had been recognized; and (iii) other expenses to provide amounts related to the gross profits originating from transactions other than investment gains and losses. F-39 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) 5. INSURANCE INSURANCE LIABILITIES Insurance liabilities are as follows:
DECEMBER 31, ----------------------------------------------- FUTURE POLICYHOLDER OTHER POLICY ACCOUNT POLICYHOLDER BENEFITS BALANCES FUNDS ----------- --------------- --------------- 2007 2006 2007 2006 2007 2006 ---- ---- ------ ------ ------ ------ (IN MILLIONS) Traditional life................... $140 $ 80 $ -- $ -- $ 12 $ 8 Universal variable life............ 40 13 695 260 1,362 1,213 Annuities.......................... 264 166 4,794 4,698 -- -- ---- ---- ------ ------ ------ ------ Total............................ $444 $259 $5,489 $4,958 $1,374 $1,221 ==== ==== ====== ====== ====== ======
Affiliated insurance liabilities included in the table above include reinsurance assumed and ceded. Affiliated future policy benefits, included in the table above, were $29 million and $25 million at December 31, 2007 and 2006, respectively. Affiliated policyholder account balances, included in the table above, were $97 million and $(57) million at December 31, 2007 and 2006, respectively. Affiliated other policyholder funds, included in the table above, were $1.3 billion and $1.2 billion at December 31, 2007 and 2006, respectively. VALUE OF DISTRIBUTION AGREEMENTS Information regarding the value of distribution agreements ("VODA"), which is reported in other assets, is as follows:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Balance at January 1,................................... $166 $ -- $-- Contribution of VODA from MetLife....................... -- 167 -- Amortization............................................ (2) (1) -- ---- ---- --- Balance at December 31,................................. $164 $166 $-- ==== ==== ===
The estimated future amortization expense allocated to other expenses for the next five years for VODA is $4 million in 2008, $5 million in 2009, $7 million in 2010, $8 million in 2011 and $10 million in 2012. On July 1, 2005, MetLife completed the acquisition of The Travelers Insurance Company, excluding certain assets, most significantly, Primerica, from Citigroup Inc. ("Citigroup"), and substantially all of Citigroup's international insurance business (collectively, "Travelers"). The VODA reflects the estimated fair value of the Citigroup/Travelers distribution agreements acquired at July 1, 2005 and will be amortized in relation to the expected economic benefits of the agreement. The weighted average amortization period of the VODA is 16 years. If actual experience under the distribution agreements differs from expectations, the amortization will be adjusted to reflect actual experience. The use of discount rates was necessary to establish the fair value of the VODA. In selecting the appropriate discount rates, management considered its weighted average cost of capital as well as the weighted average cost of capital required by market participants. A discount rate of 11.5% was used to value the VODA. F-40 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) SALES INDUCEMENTS Information regarding deferred sales inducements, which are reported in other assets, is as follows:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Balance at January 1,.................................. $276 $191 $143 Capitalization......................................... 112 108 61 Amortization........................................... (33) (23) (13) ---- ---- ---- Balance at December 31,................................ $355 $276 $191 ==== ==== ====
SEPARATE ACCOUNTS Separate account assets and liabilities include pass-through separate accounts totaling $23.8 billion and $18.6 billion at December 31, 2007 and 2006, respectively, for which the policyholder assumes all investment risk. Fees charged to the separate accounts by the Company (including mortality charges, policy administration fees and surrender charges) are reflected in the Company's revenues as universal life and investment-type product policy fees and totaled $423 million, $288 million and $218 million for the years ended December 31, 2007, 2006 and 2005, respectively. For the years ended December 31, 2007, 2006 and 2005, there were no investment gains (losses) on transfers of assets from the general account to the separate accounts. GUARANTEES The Company issues annuity contracts which may include contractual guarantees to the contractholder for: (i) return of no less than total deposits made to the contract less any partial withdrawals; and (ii) the highest contract value on a specified anniversary date minus any withdrawals following the contract anniversary, or total deposits made to the contract less any partial withdrawals plus a minimum return. The Company also issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee. F-41 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts is as follows:
DECEMBER 31, --------------------------------------------------------------- 2007 2006 ------------------------------ ------------------------------ IN THE AT IN THE AT EVENT OF DEATH ANNUITIZATION EVENT OF DEATH ANNUITIZATION -------------- ------------- -------------- ------------- (IN MILLIONS) ANNUITY CONTRACTS(1) RETURN OF NET DEPOSITS Separate account value........... $ 11,337 N/A $ 8,213 N/A Net amount at risk(2)............ $ 33(3) N/A $ --(3) N/A Average attained age of contractholders................ 62 years N/A 61 years N/A ANNIVERSARY CONTRACT VALUE OR MINIMUM RETURN Separate account value........... $ 12,796 $ 16,143 $ 10,613 $ 13,179 Net amount at risk(2)............ $ 269(3) $ 245(4) $ 109(3) $ 30(4) Average attained age of contractholders................ 62 years 61 years 62 years 60 years
DECEMBER 31, ----------------------- 2007 2006 ---------- ---------- SECONDARY SECONDARY GUARANTEES GUARANTEES ---------- ---------- (IN MILLIONS) UNIVERSAL AND VARIABLE LIFE CONTRACTS(1) Account value (general and separate account)........ $ 449 $ 1,177 Net amount at risk(2)............................... $ 10,224(3) $ 22,828(3) Average attained age of policyholders............... 57 years 56 years
-------- (1) The Company's annuity and life contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. (2) The net amount at risk is based on the direct amount at risk (excluding reinsurance). (3) The net amount at risk for guarantees of amounts in the event of death is defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (4) The net amount at risk for guarantees of amounts at annuitization is defined as the present value of the minimum guaranteed annuity payments available to the contractholder determined in accordance with the terms of the contract in excess of the current account balance. F-42 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) Information regarding the liabilities for guarantees (excluding base policy liabilities) relating to annuity and universal and variable life contracts is as follows:
UNIVERSAL AND ANNUITY VARIABLE LIFE CONTRACTS CONTRACTS ------------- ------------- GUARANTEED ANNUITIZATION SECONDARY BENEFITS GUARANTEES TOTAL ------------- ------------- ----- (IN MILLIONS) Balance at January 1, 2005..................... $-- $-- $-- Incurred guaranteed benefits................... -- 3 3 Paid guaranteed benefits....................... -- -- -- --- --- --- Balance at December 31, 2005................... -- 3 3 Incurred guaranteed benefits................... -- 6 6 Paid guaranteed benefits....................... -- -- -- --- --- --- Balance at December 31, 2006................... -- 9 9 Incurred guaranteed benefits................... 28 19 47 Paid guaranteed benefits....................... -- -- -- --- --- --- Balance at December 31, 2007................... $28 $28 $56 === === ===
Excluded from the table above are guaranteed death and annuitization benefit liabilities on the Company's annuity contracts of $45 million, $38 million and $28 million, at December 31, 2007, 2006 and 2005, respectively, which were reinsured 100% to an affiliate and had corresponding recoverables from affiliated reinsurers related to such guarantee liabilities. Account balances of contracts with insurance guarantees are invested in separate account asset classes as follows:
DECEMBER 31, ----------------- 2007 2006 ------- ------- (IN MILLIONS) Mutual Fund Groupings Equity................................................ $20,429 $15,486 Bond.................................................. 624 557 Balanced.............................................. 605 430 Money Market.......................................... 301 221 Specialty............................................. 144 149 ------- ------- Total.............................................. $22,103 $16,843 ======= =======
6. REINSURANCE The Company's life insurance operations participate in reinsurance activities in order to limit losses, minimize exposure to large risks, and provide additional capacity for future growth. The Company has historically reinsured the mortality risk on new individual life insurance policies primarily on an excess of retention basis or a quota share basis. Starting in 2004, the Company reinsured up to 75% of the mortality risk for all new individual life insurance. During 2005, the Company changed its retention practices for individual life insurance. The amounts reinsured in prior years remain reinsured under the original reinsurance; however, under the new retention guidelines, the Company retains up to $100,000 per life and reinsures 100% of amounts in excess of the Company's retention F-43 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) limits. The Company evaluates its reinsurance programs routinely and may increase or decrease its retention at any time. Placement of reinsurance is done primarily on an automatic basis and also on a facultative basis for risks with specific characteristics. In addition to reinsuring mortality risk, as described previously, the Company reinsures other risks, as well as specific coverages. The Company routinely reinsures certain classes of risks in order to limit its exposure to particular travel, avocation and lifestyle hazards. The Company has exposure to catastrophes, which could contribute to significant fluctuations in the Company's results of operations. The Company currently reinsures 90% of its new production of fixed annuities to an affiliate. Also, the Company reinsures 100% of the riders containing benefit guarantees related to variable annuities to an affiliate. The Company reinsures its business through a diversified group of reinsurers. No single unaffiliated reinsurer has a material obligation to the Company nor is the Company's business substantially dependent upon any reinsurance contracts. The Company is contingently liable with respect to ceded reinsurance should any reinsurer be unable to meet its obligations under these agreements. The amounts in the statements of income are presented net of reinsurance ceded. Information regarding the effect of reinsurance is as follows:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Direct premiums........................................ $188 $ 87 $ 33 Reinsurance assumed.................................... 17 20 38 Reinsurance ceded...................................... (51) (18) (12) ---- ---- ---- Net premiums........................................... $154 $ 89 $ 59 ==== ==== ==== Reinsurance recoverables netted against policyholder benefits and claims.................................. $ 18 $ 10 $ 7 ==== ==== ====
Reinsurance recoverables, included in premiums and other receivables, were $123 million and $86 million at December 31, 2007 and 2006, respectively. Reinsurance and ceded commissions payables, included in other liabilities, were $77 million and $48 million at December 31, 2007 and 2006, respectively. The Company has reinsurance agreements with MetLife and certain of its subsidiaries, including Metropolitan Life Insurance Company ("MLIC"), Reinsurance Group of America, Incorporated, Exeter Reassurance Company, Ltd. ("Exeter"), General American Life Insurance Company ("GALIC"), Mitsui Sumitomo MetLife Insurance Co., Ltd. and MetLife Reinsurance Company of Vermont ("MRV"). At December 31, 2007, the Company had reinsurance-related assets and liabilities from these agreements totaling $2.9 billion and $1.6 billion, respectively. At December 31, 2006, comparable assets and liabilities were $2.3 billion and $1.2 billion, respectively. F-44 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) The following table reflects related party reinsurance information:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Assumed premiums........................................ $ 17 $20 $ 37 Assumed fees, included in universal life and investment- type product policy fees.............................. $119 $96 $163 Assumed fees, included in net investment gains (losses).............................................. $ -- $-- $ 6 Assumed benefits, included in policyholder benefits and claims................................................ $ 18 $11 $ 32 Assumed benefits, included in interest credited to policyholder account balances......................... $ 53 $49 $ 42 Assumed acquisition costs, included in other expenses... $ 39 $58 $111 Ceded premiums.......................................... $ 43 $12 $ 6 Ceded fees, included in universal life and investment- type product policy fees.............................. $161 $80 $ 59 Interest earned on ceded reinsurance, included in other revenues.............................................. $ 85 $68 $ 55 Ceded benefits, included in policyholder benefits and claims................................................ $ 74 $32 $ 20 Interest costs on ceded reinsurance, included in other expenses.............................................. $(19) $33 $181
The Company has assumed risks related to guaranteed minimum benefit riders from an affiliated joint venture under a reinsurance contract. Such guaranteed minimum benefit riders are embedded derivatives and are included within net investment gains (losses). The assumed amounts were $(113) million, $57 million and $28 million for the years ended December 31, 2007, 2006 and 2005, respectively. These risks have been retroceded in full to another affiliate under a retrocessional agreement resulting in no net impact on net investment gains (losses). The Company has also ceded risks related to guaranteed minimum benefit riders written by the Company to another affiliate. The guaranteed minimum benefit riders directly written by the Company are embedded derivatives and changes in their fair value are included within net investment gains (losses). The ceded reinsurance also contain embedded derivatives and changes in their fair value are also included within net investment gains (losses). The ceded amounts were $363 million, $(101) million and $(22) million for the years ended December 31, 2007, 2006 and 2005, respectively. Effective December 20, 2007, the Company recaptured two ceded blocks of business (the "Recaptured Business") from Exeter. The Recaptured Business consisted of two blocks of universal life secondary guarantee risk, one assumed from GALIC, and the other written by the Company. As a result of the recapture, the Company received $258 million of assets from Exeter, reduced receivables from affiliates, included in premiums and other receivables, by $112 million and reduced other assets by $124 million. The recapture resulted in a pre-tax gain of $22 million. Concurrent with the recapture, the same business was ceded to MRV. The cession does not transfer risk to MRV and is therefore accounted for under the deposit method. The Company transferred $258 million of assets to MRV as a result of this cession, and recorded a receivable from affiliates, included in premiums and other receivables, of $258 million. Effective December 31, 2007, the Company entered into a reinsurance agreement to cede two blocks of business to MRV, on a 90% coinsurance funds withheld basis. This agreement covered certain term and certain universal life policies issued in 2007 and to be issued during 2008 by the Company. This agreement transfers risk to MRV, and therefore, is accounted for as reinsurance. As a result of the agreement, DAC decreased $136 million, affiliated reinsurance recoverables, included in premiums and other receivables, increased $326 million, the F-45 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) Company recorded a funds withheld liability for $223 million, included in other liabilities, and unearned revenue, included in other policyholder funds, was reduced by $33 million. Effective January 1, 2005, the Company entered into a reinsurance agreement to assume an in-force block of business from GALIC. This agreement covered certain term and universal life policies issued by GALIC on and after January 1, 2000 through December 31, 2004. This agreement also covered certain term and universal life policies issued on or after January 1, 2005. The Company paid and deferred 100% of a ceding commission to GALIC of $386 million resulting in no gain or loss on the transfer of the in-force business as of January 1, 2005. 7. LONG-TERM DEBT -- AFFILIATED Long-term debt outstanding is as follows:
DECEMBER 31, ------------- 2007 2006 ---- ---- (IN MILLIONS) Surplus notes, interest rate 7.349%, maturity date 2035..... $400 $400 Surplus notes, interest rate 5%, maturity date upon request................................................... 25 25 Surplus notes, interest rate LIBOR plus .75%, maturity date upon request.............................................. 10 10 ---- ---- Total long-term debt -- affiliated.......................... $435 $435 ==== ====
MetLife is the holder of a surplus note issued by the Company in the amount of $400 million at December 31, 2007 and 2006. MLIG is the holder of two surplus notes issued by the Company in the amounts of $25 million and $10 million at both December 31, 2007 and 2006. These surplus notes may be redeemed, in whole or in part, at the election of the Company at any time, subject to the prior approval of the Delaware Commissioner of Insurance (the "Delaware Commissioner"). Payments of interest and principal on the Company's surplus notes may be made only with the prior approval of the Delaware Commissioner. The aggregate maturities of long-term debt as of December 31, 2007 are $400 million in 2035 and $35 million payable upon request and regulatory approval. Interest expense related to the Company's indebtedness, included in other expenses, was $31 million, $31 million and $25 million for the years ended December 31, 2007, 2006 and 2005, respectively. F-46 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) 8. INCOME TAXES The provision for income tax is as follows:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Current: Federal.............................................. $ 20 $(90) $(61) State and local...................................... (1) -- (2) ---- ---- ---- Subtotal............................................. 19 (90) (63) ---- ---- ---- Deferred: Federal.............................................. 85 95 98 State and local...................................... -- (2) (1) ---- ---- ---- Subtotal............................................. 85 93 97 ---- ---- ---- Provision for income tax............................... $104 $ 3 $ 34 ==== ==== ====
The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported is as follows:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Tax provision at US statutory rate..................... $129 $ 22 $ 49 Tax effect of: Tax-exempt investment income......................... (19) (13) (7) Prior year tax....................................... 1 (5) (9) State tax, net of federal benefit.................... -- (1) 2 Assignment fee....................................... (6) -- -- Other, net........................................... (1) -- (1) ---- ---- ---- Provision for income tax............................... $104 $ 3 $34 ==== ==== ====
F-47 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) Deferred income tax represents the tax effect of the differences between the book and tax basis of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following:
DECEMBER 31, ------------- 2007 2006 ---- ---- (IN MILLIONS) Deferred income tax assets: Policyholder liabilities and receivables............... $220 $239 Net unrealized investment gains........................ 5 1 Other.................................................. 6 -- ---- ---- 231 240 ---- ---- Deferred income tax liabilities: DAC.................................................... 549 478 Investments............................................ 9 8 ---- ---- 558 486 ---- ---- Net deferred income tax liability........................ $327 $246 ==== ====
The Company had capital loss carryforwards of $22 million at December 31, 2007 which will begin expiring in 2011. Prior to the Company's transfer to MICC, the Company joined MetLife's includable subsidiaries in filing a federal income tax return. The Company joined MICC's includable subsidiaries as of October 11, 2006. The consolidating companies have executed tax allocation agreements. Under these agreements, current federal income tax expense (benefit) is computed on a separate return basis and the agreements provide that members shall make payments or receive reimbursements to the extent that their income (loss) contributes to or reduces federal tax expense. Pursuant to these tax allocation agreements, the amounts due from affiliates in 2007 include $17 million from MICC and in 2006 $90 million from MICC and $34 million from MetLife. A valuation allowance is provided when it is more likely than not that some portion of the deferred income tax assets will not be realized. Management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the remaining deferred income tax assets. On September 25, 2007, the IRS issued Revenue Ruling 2007-61, which announced its intention to issue regulations with respect to certain computational aspects of the Dividends Received Deduction ("DRD") on separate account assets held in connection with variable annuity contracts. Revenue Ruling 2007-61 suspended a revenue ruling issued in August 2007 that would have changed accepted industry and IRS interpretations of the statutes governing these computational questions. Any regulations that the IRS ultimately proposes for issuance in this area will be subject to public notice and comment, at which time insurance companies and other interested parties will have the opportunity to raise legal and practical questions about the content, scope and application of such regulations. As a result, the ultimate timing and substance of any such regulations are unknown at this time. For the year ended December 31, 2007, the Company recognized an income tax benefit of $19 million related to the separate account DRD. All years through and including 2002 are closed and no longer subject to IRS audit. The years 2003 and forward are open and subject to audit. The Company believes that any adjustments that might be required for the open years will not have a material effect on the Company's financial statements. F-48 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) 9. CONTINGENCIES, COMMITMENTS AND GUARANTEES CONTINGENCIES LITIGATION The Company is a defendant in litigation matters. In some of the matters, large and/or indeterminate amounts, including punitive and treble damages, may be sought. Modern pleading practice in the United States permits considerable variation in the assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over an extended period of time, demonstrate to management that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value. Thus, unless stated below, the specific monetary relief sought is not noted. Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may normally be inherently impossible to ascertain with any degree of certainty. Inherent uncertainties can include how fact finders will view individually and in their totality documentary evidence, the credibility and effectiveness of witnesses' testimony, and how trial and appellate courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law. On an annual basis, the Company reviews relevant information with respect to litigation and contingencies to be reflected in the Company's financial statements. The review includes senior legal and financial personnel. Estimates of possible losses or ranges of loss for particular matters cannot in the ordinary course be made with a reasonable degree of certainty. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. It is possible that some of the matters could require the Company to pay damages or make other expenditures or establish accruals in amounts that could not be estimated as of December 31, 2007. The Company has faced claims alleging improper marketing or sales of individual life insurance policies, annuities, mutual funds or other products. The Company continues to vigorously defend against the claims in all pending matters. Some sales practices claims may be resolved through settlement. Other sales practices claims may be won by dispositive motion or may go to trial. The current cases may seek substantial damages, including in some cases punitive and treble damages and attorneys' fees. Additional litigation relating to the Company's marketing and sales of individual life insurance, annuities, mutual funds or other products may be commenced in the future. Various litigation, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company's financial statements, have arisen in the course of the Company's business, including, but not limited to, in connection with its activities as an insurer, employer, investor, investment advisor or taxpayer. Further, federal, state or industry regulatory or governmental authorities may conduct investigations, serve subpoenas or make other inquiries concerning a wide variety of issues, including the Company's compliance with applicable insurance and other laws and regulations. It is not possible to predict the ultimate outcome of all pending investigations and legal proceedings or provide reasonable ranges of potential losses. In some of the matters, large and/or indeterminate amounts, including punitive and treble damages, may be sought. Although in light of these considerations it is possible that an adverse outcome in certain cases could have a material adverse effect upon the Company's financial position, based on information currently known by the Company's management, in its opinion, the outcomes of pending investigations F-49 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts that may be sought in certain matters and the inherent unpredictability of litigation, it is possible that an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company's net income or cash flows in particular quarterly or annual periods. INSOLVENCY ASSESSMENTS Most of the jurisdictions in which the Company is admitted to transact business require insurers doing business within the jurisdiction to participate in guaranty associations, which are organized to pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer engaged. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. Assessments levied against the Company were less than $1 million for each of the years ended December 31, 2007, 2006 and 2005. At both December 31, 2007 and 2006, the Company maintained a liability of $1 million. The related asset for premium tax offsets was $1 million at both December 31, 2007 and 2006 for undiscounted future assessments in respect of currently impaired, insolvent or failed insurers. At both December 31, 2007 and 2006, the Company maintained an asset related to paid assessments representing currently available premium tax offsets of less than $1 million. COMMITMENTS COMMITMENTS TO FUND PARTNERSHIP INVESTMENTS The Company makes commitments to fund partnership investments in the normal course of business. The amounts of these unfunded commitments were $291 million at December 31, 2007. The Company did not have unfunded commitments related to partnership investments at December 31, 2006. The Company anticipates that these amounts will be invested in partnerships over the next five years. MORTGAGE LOAN COMMITMENTS The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $8 million and $2 million at December 31, 2007 and 2006, respectively. COMMITMENTS TO FUND BANK CREDIT FACILITIES AND PRIVATE CORPORATE BOND INVESTMENTS The Company commits to lend funds under bank credit facilities and private corporate bond investments. The amounts of these unfunded commitments were $1 million and $4 million at December 31, 2007 and 2006, respectively. GUARANTEES In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties pursuant to which it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities, and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the F-50 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company's interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. The Company's recorded liability at December 31, 2007 and 2006 for indemnities, guarantees and commitments was insignificant. In connection with synthetically created investment transactions, the Company writes credit default swap obligations that generally require payment of principal outstanding due in exchange for the referenced credit obligation. If a credit event, as defined by the contract, occurs the Company's maximum amount at risk, assuming the value of the referenced credits becomes worthless, was $9 million at December 31, 2007. The credit default swaps expire at various times during the next ten years. 10. EQUITY CAPITAL CONTRIBUTIONS The Company received cash contributions of $250 million and $150 million from MICC during the years ended December 31, 2007 and 2006, respectively. There were no capital contributions received in 2005. On September 30, 2006, the Company received a capital contribution from MetLife of $162 million in the form of intangible assets related to VODA, and the associated deferred income tax liability, which is more fully described in Note 5. STATUTORY EQUITY AND INCOME The Company's state of domicile imposes minimum risk-based capital ("RBC") requirements that were developed by the National Association of Insurance Commissioners ("NAIC"). The formulas for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of total adjusted capital, as defined by the NAIC, to authorized control level RBC, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. The Company exceeded the minimum RBC requirements for all periods presented herein. The NAIC adopted the Codification of Statutory Accounting Principles ("Codification") in 2001. Codification was intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting principles continue to be established by individual state laws and permitted practices. The Delaware Department of Insurance has adopted Codification with certain modifications for the preparation of statutory financial statements of insurance companies domiciled in Delaware. Modifications by state insurance departments may impact the effect of Codification on the statutory capital and surplus of the Company. Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, reporting surplus notes as surplus instead of debt, reporting of reinsurance transactions in the income statement and valuing securities on a different basis. F-51 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus. The most significant assets not admitted by the Company are net deferred income tax assets resulting from temporary differences between statutory accounting principles basis and tax basis not expected to reverse and become recoverable within a year. Statutory net loss of the Company, a Delaware domiciled insurer, was $1.1 billion, $116 million and $227 million for the years ended December 31, 2007, 2006 and 2005, respectively. Statutory capital and surplus, as filed with the Delaware Insurance Department, was $584 million and $575 million at December 31, 2007 and 2006, respectively. DIVIDEND RESTRICTIONS Under Delaware State Insurance Law, the Company is permitted, without prior insurance regulatory clearance, to pay a stockholder dividend to MICC as long as the amount of the dividend, when aggregated with all other dividends in the preceding 12 months, does not exceed the greater of: (i) 10% of its surplus to policyholders as of the end of the immediately preceding calendar year; or (ii) its statutory net gain from operations for the immediately preceding calendar year (excluding realized capital gains). The Company will be permitted to pay a cash dividend to MICC in excess of the greater of such two amounts only if it files notice of the declaration of such a dividend and the amount thereof with the Delaware Commissioner and the Delaware Commissioner does not disapprove the distribution within 30 days of its filing. In addition, any dividend that exceeds earned surplus (defined as unassigned funds) as of the last filed annual statutory statement requires insurance regulatory approval. Under Delaware State Insurance Law, the Delaware Commissioner has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. The Company did not pay dividends for the years ended December 31, 2007, 2006 and 2005. Because the Company's statutory unassigned funds surplus is negative, the Company cannot pay any dividends without prior approval of the Delaware Commissioner in 2008. OTHER COMPREHENSIVE INCOME (LOSS) The following table sets forth the reclassification adjustments required for the years ended December 31, 2007, 2006 and 2005 in other comprehensive income (loss) that are included as part of net income for the current year that have been reported as a part of other comprehensive income (loss) in the current or prior year:
YEARS ENDED DECEMBER 31, ------------------ 2007 2006 2005 ---- ---- ---- (IN MILLIONS) Holding gains (losses) on investments arising during the year.................................................. $(27) $(43) $(88) Income tax effect of holding gains (losses)............. 9 15 31 Reclassification adjustments: Recognized holding gains (losses) included in current year income........................................ 12 24 20 Amortization of premiums and accretion of discounts associated with investments........................ (2) (1) 14 Income tax effect..................................... (3) (8) (12) Allocation of holding gains (losses) on investments relating to other policyholder amounts................ 6 86 (69) Income tax effect of allocation of holding gains (losses) to other policyholder amounts................ (2) (30) 24 ---- ---- ---- Other comprehensive income (losses)..................... $ (7) $ 43 $(80) ==== ==== ====
F-52 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) 11. OTHER EXPENSES Information on other expenses is as follows:
YEARS ENDED DECEMBER 31, ------------------------- 2007 2006 2005 ----- ----- ----- (IN MILLIONS) Compensation......................................... $ 66 $ 46 $ 20 Commissions.......................................... 432 418 666 Interest and debt issue costs........................ 31 31 25 Amortization of DAC.................................. 289 147 111 Capitalization of DAC................................ (556) (472) (624) Insurance tax........................................ 20 12 6 Other................................................ 255 176 100 ----- ----- ----- Total other expenses............................... $ 537 $ 358 $ 304 ===== ===== =====
For the years ended December 31, 2007, 2006 and 2005, commissions and capitalization of DAC include the impact of affiliated reinsurance transactions. See Note 6. See also Note 13 for discussion of affiliated expenses included in the table above. 12. FAIR VALUE INFORMATION The estimated fair value of financial instruments have been determined by using available market information and the valuation methodologies described below. Considerable judgment is often required in interpreting market data to develop estimates of fair value. Accordingly, the estimates presented herein may not necessarily be indicative of amounts that could be realized in a current market exchange. The use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. The implementation of SFAS 157 may impact the fair value assumptions and methodologies associated with the valuation of assets and liabilities. See also Note 1 regarding the adoption of SFAS 157. F-53 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) Amounts related to the Company's financial instruments are as follows:
NOTIONAL CARRYING ESTIMATED AMOUNT VALUE FAIR VALUE -------- -------- ---------- (IN MILLIONS) DECEMBER 31, 2007 ASSETS: Fixed maturity securities...................... $4,328 $4,328 Equity securities.............................. $ 10 $ 10 Mortgage loans on real estate.................. $ 405 $ 413 Policy loans................................... $ 39 $ 39 Short-term investments......................... $ 483 $ 483 Cash and cash equivalents...................... $ 91 $ 91 Accrued investment income...................... $ 54 $ 54 Mortgage loan commitments...................... $8 $ -- $ (1) Commitments to fund bank credit facilities and private corporate bond investments.......... $1 $ -- $ -- LIABILITIES: Policyholder account balances.................. $4,794 $4,630 Long-term debt -- affiliated................... $ 435 $ 409 Payables for collateral under securities loaned and other transactions...................... $ 928 $ 928
NOTIONAL CARRYING ESTIMATED AMOUNT VALUE FAIR VALUE -------- -------- ---------- (IN MILLIONS) DECEMBER 31, 2006 ASSETS: Fixed maturity securities...................... $4,077 $4,077 Equity securities.............................. $ 19 $ 19 Mortgage loans on real estate.................. $ 478 $ 484 Policy loans................................... $ 37 $ 37 Short-term investments......................... $ 355 $ 355 Cash and cash equivalents...................... $ 38 $ 38 Accrued investment income...................... $ 55 $ 55 Mortgage loan commitments...................... $2 $ -- $ -- Commitments to fund bank credit facilities and private corporate bond investments.......... $4 $ -- $ -- LIABILITIES: Policyholder account balances.................. $4,699 $4,456 Long-term debt -- affiliated................... $ 435 $ 425 Payables for collateral under securities loaned and other transactions...................... $ 901 $ 901
F-54 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) The methods and assumptions used to estimate the fair value of financial instruments are summarized as follows: FIXED MATURITY SECURITIES AND EQUITY SECURITIES The fair values of publicly held fixed maturity securities and publicly held equity securities are based on quoted market prices or estimates from independent pricing services. However, in cases where quoted market prices are not available, such as for private fixed maturity securities, fair values are estimated using present value or valuation techniques. The determination of fair values is based on: (i) valuation methodologies; (ii) securities the Company deems to be comparable; and (iii) assumptions deemed appropriate given the circumstances. The fair value estimates are based on available market information and judgments about financial instruments, including estimates of the timing and amounts of expected future cash flows and the credit standing of the issuer or counterparty. Factors considered in estimating fair value include; coupon rate, maturity, estimated duration, call provisions, sinking fund requirements, credit rating, industry sector of the issuer, and quoted market prices of comparable securities. MORTGAGE LOANS ON REAL ESTATE, MORTGAGE LOAN COMMITMENTS, COMMITMENTS TO FUND BANK CREDIT FACILITIES, AND PRIVATE CORPORATE BOND INVESTMENTS Fair values for mortgage loans on real estate are estimated by discounting expected future cash flows, using current interest rates for similar loans with similar credit risk. For mortgage loan commitments, commitments to fund bank credit facilities, and private corporate bond investments the estimated fair value is the net premium or discount of the commitments. POLICY LOANS The carrying values for policy loans approximate fair value. CASH AND CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS The carrying values for cash and cash equivalents and short-term investments approximate fair values due to the short-term maturities of these instruments. ACCRUED INVESTMENT INCOME The carrying value for accrued investment income approximates fair value. POLICYHOLDER ACCOUNT BALANCES The fair value of policyholder account balances which have final contractual maturities are estimated by discounting expected future cash flows based upon interest rates currently being offered for similar contracts with maturities consistent with those remaining for the agreements being valued. The fair value of policyholder account balances without final contractual maturities are assumed to equal their current net surrender value. LONG-TERM DEBT -- AFFILIATED The fair values of long-term debt are determined by discounting expected future cash flows using risk rates currently available for debt with similar terms and remaining maturities. F-55 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) PAYABLES FOR COLLATERAL UNDER SECURITIES LOANED AND OTHER TRANSACTIONS The carrying value for payables for collateral under securities loaned and other transactions approximate fair value. DERIVATIVE FINANCIAL INSTRUMENTS The fair value of derivative financial instruments are based upon quotations obtained from dealers or other reliable sources. See Note 3 for derivative fair value disclosures. 13. RELATED PARTY TRANSACTIONS SERVICE AGREEMENTS The Company has entered into a Master Service Agreement with MLIC which provides administrative, accounting, legal and similar services to the Company. MLIC charged the Company $50 million, $12 million and $15 million, included in other expenses, for services performed under the Master Service Agreement for the years ended December 31, 2007, 2006 and 2005, respectively. The Company has entered into a Service Agreement with MetLife Group, Inc. ("MetLife Group"), a wholly-owned subsidiary of MetLife, under which MetLife Group provides personnel services, as needed, to support the activities of the Company. MetLife Group charged the Company $76 million, $62 million and $49 million, included in other expenses, for services performed under the Service Agreement for the years ended December 31, 2007, 2006 and 2005, respectively. The Company has entered into various additional agreements with other affiliates to provide and receive services necessary to conduct its activities. Typical services provided under these additional agreements include management, policy administrative functions and distribution services. Expenses incurred, net of income earned, related to these agreements and recorded in other expenses, were $109 million, $103 million and $48 million for the years ended December 31, 2007, 2006 and 2005, respectively. In 2005, the Company entered into Broker-Dealer Wholesale Sales Agreements with several affiliates ("Distributors"), in which the Distributors agree to sell, on the Company's behalf, fixed rate insurance products through authorized retailers. The Company agrees to compensate the Distributors for the sale and servicing of such insurance products in accordance with the terms of the agreements. The Distributors charged the Company $89 million and $65 million, included in other expenses, for the years ended December 31, 2007 and 2006, respectively. The Company did not incur any such expenses for the year ended December 31, 2005. At December 31, 2007 and 2006, amounts due from affiliates were $27 million and $34 million, respectively, related to the net expenses discussed above. These receivables exclude affiliated reinsurance expenses discussed in Note 6. See Notes 2, 5, 6 and 7 for additional related party transactions. 14. RESTATEMENT As discussed in Note 6, the Company has ceded risks related to guaranteed minimum benefit riders written by the Company to an affiliate. Prior to 2007, the Company accounted for these reinsurance treaties in the same manner as the related direct guaranteed minimum benefit rider. Subsequent to the issuance of the 2006 financial statements, the Company determined that a portion of the minimum benefit guarantee within the reinsurance contract was an embedded derivative which should be measured at fair value. As such, the Company has restated its financial statements for the years ended December 31, 2006 and 2005 to properly reflect the embedded derivatives at fair values. The impact to the Company's financial statements for the years ended December 31, 2006 and 2005 was an F-56 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) increase to net realized losses of $70 million and $17 million, respectively, an increase to policyholder benefits and claims of $3 million and $6 million, respectively, and a decrease to other expenses of $24 million and $8 million, respectively. The resulting impact to the Company's net income for the years ended December 31, 2006 and 2005 was a reduction of $32 million and $10 million, respectively. The related impact on the Company's balance sheet at December 31, 2006 was a reduction to premiums and other receivables of $96 million, an increase to DAC of $32 million and a decrease to deferred income tax liability of $22 million. Subsequent to the issuance of its 2006 financial statements, the Company identified items that were inadvertently excluded from its analysis of the amortization of DAC. These items changed the level of DAC amortization related to historical rider charges, partial withdrawals, lapses, interest rates and other assumptions. The Company has restated its financial statements for the years ended December 31, 2006 and 2005 to reflect the appropriate rate of amortization of DAC. The impact to the Company's financial statements for the year ended December 31, 2005 was an increase to policyholder benefits and claims of $5 million and an increase to other expenses of $14 million. The resulting impact to the Company's net income for the year ended December 31, 2005 was a reduction of $12 million. The net result of these changes had no impact to the Company's net income for the year ended December 31, 2006. The related impact on the Company's balance sheet at December 31, 2006 was a decrease to DAC of $14 million, a decrease to other assets of $5 million and a decrease to deferred income tax liability of $7 million. As discussed in Note 6, during 2005, the Company entered into a reinsurance agreement to assume an in-force block of business from GALIC which covered certain term and universal life policies issued by GALIC on and after January 1, 2000 through December 31, 2004 as well as certain term and universal life policies issued on or after January 1, 2005. During 2006, the Company identified a ledger reconciliation issue related to these policies. The impact of this item was originally recorded in the 2006 financial statements, however the Company has restated its financial statements for the years ended December 31, 2006 and 2005 to appropriately reflect this charge in the 2005 financial statements. The impact to the universal life and investment-type product policy fees for the years ended December 31, 2006 and 2005 was an increase of $31 million and a decrease of $31 million, respectively. The resulting impact on the Company's net income for the years ended December 31, 2006 and 2005 was an increase of $20 million and a reduction of $20 million, respectively. There was no impact on the Company's balance sheet at December 31, 2006 as a result of this restatement. Subsequent to the issuance of the its 2006 financial statements, the Company determined that certain insurance-related liabilities were improperly classified as financing activities rather than operating activities in the Statement of Cash Flows. The impact on the Company's Statement of Cash Flows for the year ended December 31, 2006 was a $105 million decrease in the change in insurance related liabilities and the resulting increase in net cash used in operating activities and a corresponding $105 million increase in policyholder account balance deposits and the resulting increase in net cash provided by financing activities. There was no impact on the Company's statement of cash flows for the year ended December 31, 2005. F-57 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED) A summary of the effects of these restatements on the Company's financial statements is as follows:
DECEMBER 31, 2006 --------------------------- AS PREVIOUSLY REPORTED AS RESTATED ------------- ----------- ASSETS: Premiums and other receivables..................... $ 2,005 $ 1,909 Deferred policy acquisition costs.................. $ 1,515 $ 1,533 Other assets....................................... $ 583 $ 578 Total assets....................................... $27,947 $27,864 LIABILITIES: Deferred income tax liability...................... $ 275 $ 246 Total liabilities.................................. $26,826 $26,797 STOCKHOLDER'S EQUITY: Retained earnings.................................. $ 410 $ 356 Total stockholder's equity......................... $ 1,121 $ 1,067 Total liabilities and stockholder's equity......... $27,947 $27,864
FOR THE YEAR ENDED FOR THE YEAR ENDED DECEMBER 31, 2006 DECEMBER 31, 2005 --------------------------- --------------------------- AS PREVIOUSLY AS PREVIOUSLY REPORTED AS RESTATED REPORTED AS RESTATED ------------- ----------- ------------- ----------- REVENUES: Universal life and investment-type policy product fees................. $386 $ 417 $420 $389 Net investment gains (losses).......... $(37) $(107) $(10) $(27) Total revenues......................... $782 $ 743 $766 $718 EXPENSES: Policyholder benefits and claims....... $ 84 $ 87 $ 47 $ 58 Other expenses......................... $382 $ 358 $298 $304 Total expenses......................... $701 $ 680 $561 $578 Income before provision for income tax... $ 81 $ 63 $205 $140 Provision for income tax................. $ 9 $ 3 $ 57 $ 34 Net income............................... $ 72 $ 60 $148 $106
F-58 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO FINANCIAL STATEMENTS (AS RESTATED, SEE NOTE 14) -- (CONTINUED)
FOR THE YEAR ENDED FOR THE YEAR ENDED DECEMBER 31, 2006 DECEMBER 31, 2005 --------------------------- --------------------------- AS PREVIOUSLY AS PREVIOUSLY REPORTED AS RESTATED REPORTED AS RESTATED ------------- ----------- ------------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES Net income............................. $ 72 $ 60 $ 148 $ 106 (Gains) losses from sales of investments, net.................... $ 37 $ 107 $ 10 $ 27 Universal life and investment-type product policy fees................. $ (386) $ (417) $ (420) $ (389) Change in premiums and other receivables......................... $ (360) $ (287) $ (549) $ (526) Change in deferred policy acquisition costs, net.......................... $ (300) $ (324) $ (132) $ (126) Change in insurance-related liabilities......................... $ 305 $ 169 $ 133 $ 164 Change in income tax recoverable....... $ 17 $ 11 $ 243 $ 220 Change in other assets................. $ 193 $ 193 $ 81 $ 86 Net cash provided by (used in) operating activities................ $ (186) $ (252) $ (172) $ (124) CASH FLOWS FROM INVESTING ACTIVITIES Net change in other invested assets.... $ (3) $ (73) $ (19) $ (36) Net cash (used in) provided by investing activities................ $ 144 $ 74 $ (910) $ (927) CASH FLOWS FROM FINANCING ACTIVITIES Policyholder account balances -- deposits................ $5,983 $6,119 $3,789 $3,758 Net cash provided by financing activities.......................... $ 30 $ 166 $ 988 $ 957
F-59 PART C OTHER INFORMATION ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS a. Financial Statements ----------------------------------------------------------------------------------------- The following financial statements of the Separate Account are included in Part B hereof: 1. Report of Independent Registered Public Accounting Firm. 2. Statement of Assets and Liabilities as of December 31, 2007. 3. Statement of Operations for the year ended December 31, 2007. 4. Statements of Changes in Net Assets for the years ended December 31, 2007 and 2006. 5. Notes to Financial Statements. The following financial statements of the Company are included in Part B hereof: 1. Report of Independent Registered Public Accounting Firm. 2. Balance Sheets as of December 31, 2007 and 2006. 3. Statements of Income for the years ended December 31, 2007, 2006 and 2005. 4. Statements of Stockholder's Equity for the years ended December 31, 2007, 2006 and 2005. 5. Statements of Cash Flows for the years ended December 31, 2007, 2006 and 2005. 6. Notes to Financial Statements.
b. Exhibits -------------------------------------------------------------------------------------------------------- 1. Certification of Restated Resolution of Board of Directors of the Company authorizing the establishment of the Separate Account (adopted May 18, 2004)(6) 2. Not Applicable. 3. (i) Principal Underwriter's and Selling Agreement (effective January 1, 2001)(6) (ii) Amendment to Principal Underwriter's and Selling Agreement (effective January 1, 2002)(6) (iii) Form of Retail Sales Agreement (MLIDC 7-1-05 (LTC)) (12) (iv) Agreement and Plan of merger (12-01-04) (MLIDC into GAD)(13) 4. (i) Individual Flexible Purchase Payment Deferred Variable Annuity Contract(1) (ii) Enhanced Dollar Cost Averaging Rider(1) (iii) Three Month Market Entry Rider(1) (iv) Death Benefit Rider - Principal Protection(1) (v) Death Benefit Rider - Compounded-Plus(1) (vi) Death Benefit Rider - (Annual Step-Up)(1) (vii) Guaranteed Minimum Income Benefit Rider - (Living Benefit)(1) (viii) Additional Death Benefit Rider - (Earnings Preservation Benefit)(1) (ix) Waiver of Withdrawal Charge for Nursing Home or Hospital Confinement Rider(1) (x) Terminal Illness Rider(1) (xi) Individual Retirement Annuity Endorsement(1) (xii) Roth Individual Retirement Annuity Endorsement(1) (xiii) 401 Plan Endorsement(1) (xiv) Tax Sheltered Annuity Endorsement(1) (xv) Unisex Annuity Rates Rider(1) (xvi) Endorsement (Name Change - effective March 1, 2001. MetLife Investors USA Insurance Company; formerly Security First Life Insurance Company)(3) (xvii) Form of Guaranteed Minimum Income Benefit Rider - (Living Benefit) (GMIB II 03/03)(5)
(xviii) Form of Guaranteed Withdrawal Benefit Rider - (GWB) MLIU-690-1 (7/04)(6) (xix) Form of Contract Schedule [Series C, L, VA, or XC] 8028-2 (7/04)(6) (xx) Individual Retirement Annuity Endorsement 8023.1 (9/02)(6) (xxi) Roth Individual Retirement Annuity Endorsement 9024.1 (9/02)(6) (xxii) 401(a)/403(a) Plan Endorsement 8025.1 (9/02)(6) (xxiii) Tax Sheltered Annuity Endorsement 8026.1 (9/02)(6) (xxiv) Simple Individual Retirement Annuity Endorsement 8276 (9/02)(6) (xxv) Form of Guaranteed Minimum Income Benefit Rider (GMIB Plus or GMIB III) 8018-2(05/05)(7) (xxvi) Form of Enhanced Dollar Cost Averaging Rider 8013-1 (05/05)(7) (xxvii) Form of Three Month Market Entry Rider 8104-1 (05/05)(7) (xxviii) Form of Contract Schedule (GMIB Plus or GMIB III) 8028-3 (5/05)(8) (xxix) Guaranteed Withdrawal Benefit Endorsement - (EGWB) MLIU-GWB (11/05)-E (9) (xxx) Guaranteed Withdrawal Benefit Rider - (GWB) MLIU-690-2 (11/05)(9) (xxxi) Form of Contract Schedule (GMAB) 8028-4 (11/05)(10) (xxxii) Form of Guaranteed Minimum Accumulation Benefit Rider (GMAB) MLIU-670-1 (11/05)(9) (xxxiii) Designated Beneficiary Non-Qualified Annuity Endorsement MLIU-NQ-1 (11/05)-I(10) (xxxiv) Lifetime Guaranteed Withdrawal Benefit Rider MLIU-690-3 (6/06)(12) (xxxv) Form of Contract Schedule 8028-5 (6/06)(12) (xxxvi) Fixed Account Rider 8102 (11/00)(13) (xxxvii) Guaranteed Minimum Death Benefit (GMDB) Rider MLIU-640-1 (4/08)(16) (xxxviii) Form of Contract Schedule Guaranteed Minimum Death Benefit (GMDB) Rider MLIU-EDB (4/08)(16) (xxxix) Guaranteed Minimum Income Benefit Rider Living Benefit MLIU-560-4 (4/08)(16) (xl) Lifetime Guaranteed Withdrawal Benefit Rider MLIU-690-4 (4/08)(16) 5. (i) Form of Variable Annuity Application(2) (ii) Form of Variable Annuity Application 8029 (7/04) APPVA-504USAVA(6) (iii) Form of Variable Annuity Application 8029 (1/05) APPAVA105USAVA(7) (iv) Form of Variable Annuity Application 8029 (4/05) APPVA1105USAVA (9) (v) Form of Variable Annuity Application 8029 (1/06) APPVAUSAVA 606(12) (vi) Form of Variable Annuity Application 8029 (10/07) APPUSAVA April 2008 (filed herewith) 6. (i) Copy of Restated Articles of Incorporation of the Company(6) (ii) Copy of the Bylaws of the Company(6) (iii) Certificate of Amendment of Certificate of Incorporation filed 10/01/79 and signed 9/27/79(6) (iv) Certificate of Change of Location of Registered Office and/or Registered Agent filed 2/26/80 and effective 2/8/80(6) (v) Certificate of Amendment of Certification of Incorporation signed 4/26/83 and certified 2/12/85(6) (vi) Certificate of Amendment of Certificate of Incorporation filed 10/22/84 and signed 10/19/84(6) (vii) Certificate of Amendment of Certificate of Incorporation certified 8/31/94 and adopted 6/13/94(6) (viii) Certificate of Amendment of Certificate of Incorporation of Security First Life Insurance Company (name change to MetLife Investors USA Insurance Company) filed 1/8/01 and signed 12/18/00(6) 7. (i) Reinsurance Agreement between MetLife Investors USA Insurance Company and Metropolitan Life Insurance Company(4) (ii) Automatic Reinsurance Agreement between MetLife Investors USA Insurance Company and Exeter Reassurance Company, Ltd.(4)
(iii) Reinsurance Agreement and Administrative Services Agreement between MetLife Investors USA Insurance Company and Metropolitan Life Insurance Company (effective January 1, 2006) (filed herewith) 8. (i) Form of Participation Agreement Among Metropolitan Series Fund, Inc., Metropolitan Life Insurance Company and Security First Life Insurance Company(3) (ii) Participation Agreement Among Met Investors Series Trust, Met Investors Advisory Corp., MetLife Investors Distribution Company and MetLife Investors USA Insurance Company (effective 2-12-01)(6) (iii) Participation Agreement Among Metropolitan Series Fund, Inc., MetLife Advisors, LLC, Metropolitan Life Insurance Company and MetLife Investors USA Insurance Company (effective July 1, 2004)(11) (iv) Participation Agreement Among Metropolitan Series Fund, Inc., MetLife Advisors, LLC, MetLife Securities, Inc. and MetLife Investors USA Insurance Company (effective April 30, 2007)(13) (v) Participation Agreement Among Metropolitan Series Fund, Inc., MetLife Advisers, LLC, MetLife Investors Distribution Company and MetLife Investors USA Insurance Company (effective August 31, 2007)(15) 9. Opinion of Counsel(14) 10. Consent of Independent Registered Public Accounting Firm (Deloitte & Touche LLP) (filed herewith) 11. Not Applicable. 12. Not Applicable. 13. Powers of Attorney for Michael K. Farrell, Jay S. Kaduson, Susan A. Buffum, Richard C. Pearson, Elizabeth M. Forget, Charles V. Curcio, Paul A. Sylvester, Margaret C. Fechtmann, George Foulke and Jeffrey A. Tupper(14) (1) incorporated herein by reference to Registrant's Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on January 26, 2001. (2) incorporated herein by reference to Registrant's Pre-Effective Amendment No. 2 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on March 21, 2001. (3) incorporated herein by reference to Registrant's Post-Effective Amendment No. 1 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on April 13, 2001. (4) incorporated herein by reference to Registrant's Post-Effective Amendment No. 4 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on April 30, 2003. (5) incorporated herein by reference to Registrant's Post-Effective Amendment No. 5 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on April 27, 2004. (6) incorporated herein by reference to Registrant's Post-Effective Amendment No. 6 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on July 15, 2004. (7) incorporated herein by reference to Registrant's Post-Effective Amendment No. 8 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on January 18, 2005. (8) incorporated herein by reference to Registrant's Post-Effective Amendment No. 11 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on April 26, 2005. (9) incorporated herein by reference to Registrant's Post-Effective Amendment No. 12 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on July 13, 2005. (10) incorporated herein by reference to Registrant's Post-Effective Amendment No. 13 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on September 9, 2005. (11) incorporated herein by reference to Registrant's Post-Effective Amendment No. 14 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on October 7, 2005. (12) incorporated herein by reference to Registrant's Post-Effective Amendment No. 19 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on April 24, 2006. (13) incorporated herein by reference to Registrant's Post-Effective Amendment No. 18 to Form N-4 (File Nos. 333-54466 and 811-03365) filed electronically on April 16, 2007. (14) incorporated herein by reference to Registrant's Post-Effective Amendment No. 23 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on April 16, 2007. (15) incorporated herein by reference to Registrant's Post-Effective Amendment No. 21 to Form N-4 (File Nos. 333-54466 and 811-03365) filed electronically on October 31, 2007.
(16) incorporated herein by reference to Registrant's Post-Effective Amendment No. 27 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on December 21, 2007.
ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR The following are the Officers and Directors who are engaged directly or indirectly in activities relating to the Registrant or the variable annuity contracts offered by the Registrant and the executive officers of the Company:
Name and Principal Business Address Positions and Offices with Depositor Michael K. Farrell Chairman of the Board, President, 10 Park Avenue Chief Executive Officer and Director Morristown, NJ 07962 Susan A. Buffum Director 10 Park Avenue Morristown, NJ 07962 Charles V. Curcio Vice President-Finance 501 Route 22 Bridgewater, NJ 08807 Jay S. Kaduson Vice President and Director 10 Park Avenue Morristown, NY 07962 Margaret C. Fechtmann Director 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Elizabeth M. Forget Executive Vice President and Director 260 Madison Avenue New York, NY 10016 George Foulke Director 334 Madison Avenue Covenant Station, NJ 07961 Paul A. Sylvester Director 10 Park Avenue Morristown, NJ 07962 Kevin J. Paulson Senior Vice President 4700 Westown Parkway Suite 200 West Des Moines, IA 50266 Richard C. Pearson Vice President, Associate General Counsel, Secretary 5 Park Plaza and Director Suite 1900 Irvine, CA 92614 Jeffrey A. Tupper Assistant Vice President and Director 5 Park Plaza Suite 1900 Irvine, CA 92614 Debora L. Buffington Vice President, Director of Compliance 5 Park Plaza Suite 1900 Irvine, CA 92614 Betty E. Davis Vice President 1125 17th Street Suite 800 Denver, CO 80202 Thomas G. Hogan, Jr. Vice President, Chief Actuary 400 Atrium Drive Somerset, NJ 08837
Name and Principal Business Address Positions and Offices with Depositor Enid M. Reichert Vice President 501 Route 22 Bridgewater, NJ 08807 Brian C. Kiel Vice President, Appointed Actuary 501 Route 22 Bridgewater, NJ 08807 Jonathan L. Rosenthal Vice President, Chief Hedging Officer 10 Park Avenue Morristown, NJ 07962 Christopher A. Kremer Vice President 501 Boylston Street Boston, MA 02116 Marian J. Zeldin Vice President 300 Davidson Avenue Somerset, NJ 08873 Karen A. Johnson Vice President 501 Boylston Street Boston, MA 02116 Deron J. Richens Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Jeffrey N. Altman Vice President 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Roberto Baron Vice President 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Paul L. LeClair Vice President 501 Boylston Street Boston, MA 02116 Garth A. Bernard Vice President 501 Boylston Street Boston, MA 02116 Gregory E. Illson Vice President 501 Boylston Street Boston, MA 02116 Bennett D. Kleinberg Vice President 185 Asylum Street Hartford, CT 06103 Lisa S. Kuklinski Vice President 260 Madison Avenue New York, NY 10016 Jeffrey P. Halperin Vice President 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Eric T. Steigerwalt Treasurer 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Mark S. Reilly Vice President 185 Asylum Street Hartford, CT 06103
Name and Principal Business Address Positions and Offices with Depositor Gene L. Lunman Vice President 185 Asylum Street Hartford, CT 06103 Robert L. Staffier Vice President 501 Boylston Street Boston, MA 02116
ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR REGISTRANT The Registrant is a separate account of MetLife Investors USA Insurance Company under Delaware insurance law. MetLife Investors USA Insurance Company is a wholly-owned direct subsidiary of MetLife Insurance Company of Connecticut which in turn is a direct subsidiary of MetLife, Inc., a publicly traded company. The following outline indicates those entities that are controlled by MetLife, Inc. or are under the common control of MetLife, Inc. No person is controlled by the Registrant. ORGANIZATIONAL STRUCTURE OF METLIFE, INC. AND SUBSIDIARIES AS OF DECEMBER 31, 2007 The following is a list of subsidiaries of MetLife, Inc. updated as of December 31, 2007. Those entities which are listed at the left margin (labeled with capital letters) are direct subsidiaries of MetLife, Inc. Unless otherwise indicated, each entity which is indented under another entity is a subsidiary of that other entity and, therefore, an indirect subsidiary of MetLife, Inc. Certain inactive subsidiaries have been omitted from the MetLife, Inc. organizational listing. The voting securities (excluding directors' qualifying shares, (if any)) of the subsidiaries listed are 100% owned by their respective parent corporations, unless otherwise indicated. The jurisdiction of domicile of each subsidiary listed is set forth in the parenthetical following such subsidiary. A. MetLife Group, Inc. (NY) B. MetLife Bank National Association (USA) C. Exeter Reassurance Company, Ltd. (Bermuda) D. MetLife Taiwan Insurance Company Limited (Taiwan) E. Metropolitan Tower Life Insurance Company (DE) 1. TH Tower NGP, LLC (DE) 2. Partners Tower, L.P. (DE) - a 99% limited partnership interest of Partners Tower, L.P. is held by Metropolitan Tower Life Insurance Company and 1% general partnership interest is held by TH Tower NGP, LLC (DE) 3. TH Tower Leasing, LLC (DE) 4. MetLife Reinsurance Company of Charleston (SC) 5. MetLife Reinsurance Company of Vermont (VT) 6. Entrecap Real Estate II, LLC (DE) a) PREFCO Dix-Huit LLC (CT) b) PREFCO X Holdings LLC (CT) c) PREFCO Ten Limited Partnership (CT) - a 99.9% limited partnership interest of PREFCO Ten Limited Partnership is held by Entrecap Real Estate II, LLC and 0.1% general partnership is held by PREFCO X Holdings LLC. a) PREFCO Vingt LLC (CT) b) PREFCO Twenty Limited Partnership (CT) - a 99% limited partnership interest of PREFCO Twenty Limited Partnership is held by Entrecap Real Estate II, LLC and 1% general partnership is held by PREFCO Vingt LLC. 7. Plaza Drive Properties, LLC (DE) 8. MTL Leasing, LLC (DE) a) PREFCO IX Realty LLC (CT) b) PREFCO XIV Holdings LLC (CT) c) PREFCO Fourteen Limited Partnership (CT) - a 99.9% limited partnership interest of PREFCO Fourteen Limited Partnership is held by MTL Leasing, LLC and 0.1% general partnership is held by PREFCO XIV Holdings LLC. F. MetLife Pensiones S.A. (Mexico)- 97.4738% is owned by MetLife, Inc. and 2.5262% is owned by MetLife International Holdings, Inc. G. MetLife Chile Inversiones Limitada (Chile)- 99.9999999% is owned by MetLife, Inc. and 0.0000001% is owned by Natiloportem Holdings, Inc. 1. MetLife Chile Seguros de Vida S.A. (Chile)- 99.99% is owned by MetLife Chile Inversiones Limitada and 0.01% is owned by MetLife International Holdings, Inc. a) MetLife Chile Administradora de Mutuos Hipotecarios S.A. (Chile)- 99.99% is owned by MetLife Chile Seguros de Vida S.A. and 0.01% is owned by MetLife Chile Inversiones Limitada. H. MetLife Mexico S.A. (Mexico)- 98.70541% is owned by MetLife, Inc., 1.29459% is owned by MetLife International Holdings, Inc. 1. MetLife Afore, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Mexico S.A. (Mexico) and 0.01% is owned by MetLife Pensiones S.A. a) Met1 SIEFORE, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. (Mexico) b) Met2 SIEFORE, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. (Mexico) c) MetA SIEFORE, S.A. de C.V. (Mexico)- 99.9% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. (Mexico) I. MetLife Mexico Servicios, S.A. de C.V. (Mexico)- 98% is owned by MetLife, Inc. and 2% is owned by MetLife International Holdings, Inc. J. MetLife Seguros de Vida S.A. (Uruguay) K. MetLife Securities, Inc. (DE) L. Enterprise General Insurance Agency, Inc. (DE) 1. MetLife General Insurance Agency of Texas, Inc. (DE) 2. MetLife General Insurance Agency of Massachusetts, Inc. (MA) 1 M. Metropolitan Property and Casualty Insurance Company (RI) 1. Metropolitan General Insurance Company (RI) 2. Metropolitan Casualty Insurance Company (RI) 3. Metropolitan Direct Property and Casualty Insurance Company (RI) 4. Met P&C Managing General Agency, Inc. (TX) 5. MetLife Auto & Home Insurance Agency, Inc. (RI) 6. Metropolitan Group Property and Casualty Insurance Company (RI) a) Metropolitan Reinsurance Company (U.K.) Limited (United Kingdom) 7. Metropolitan Lloyds, Inc. (TX) a) Metropolitan Lloyds Insurance Company of Texas (TX)- Metropolitan Lloyds Insurance Company of Texas, an affiliated association, provides automobile, homeowner and related insurance for the Texas market. It is an association of individuals designated as underwriters. Metropolitan Lloyds, Inc., a subsidiary of Metropolitan Property and Casualty Insurance Company, serves as the attorney-in-fact and manages the association. 8. Economy Fire & Casualty Company (IL) a) Economy Preferred Insurance Company (IL) b) Economy Premier Assurance Company (IL) N. Cova Corporation (MO) 1. Texas Life Insurance Company (TX) 2. Cova Life Management Company (DE) O. MetLife Investors Insurance Company (MO) P. First MetLife Investors Insurance Company (NY) Q. Walnut Street Securities, Inc. (MO) R. Newbury Insurance Company, Limited (BERMUDA) S. MetLife Investors Group, Inc. (DE) 1. MetLife Investors Distribution Company (MO) 2. Met Investors Advisory, LLC (DE) 3. MetLife Investors Financial Agency, Inc. (TX) 2 T. MetLife International Holdings, Inc. (DE) 1. MetLife Mexico Cares, S.A. de C.V. (Mexico) a) Fundacion MetLife Mexico, A.C. (Mexico) 2. Natiloportem Holdings, Inc. (DE) a) Servicios Administrativos Gen, S.A. de C.V. (Mexico) (1) MLA Comercial, S.A. de C.V. (Mexico) 99% is owned by Servicios Administrativos Gen, S.A. de C.V. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. (2) MLA Servicios, S.A. de C.V. (Mexico) 99% is owned by Servicios Administrativos Gen, S.A. de C.V. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. 3. MetLife India Insurance Company Private Limited (India)- 26% is owned by MetLife International Holdings, Inc. and 74% is owned by third parties. 4. Metropolitan Life Insurance Company of Hong Kong Limited (Hong Kong)- 99.99905% is owned by MetLife International Holdings, Inc. and 0.00095% is owned by Natiloporterm Holdings, Inc. 5. Metropolitan Life Seguros de Retiro S.A. (Argentina)- 95.23% is owned by MetLife International Holdings, Inc. and 4.77% is owned by Natiloportem Holdings, Inc. 6. Metropolitan Life Seguros de Vida S.A. (Argentina)- 95.2499% is owned by MetLife International Holdings, Inc. and 4.7473% is owned by Natiloportem Holdings, Inc. 7. MetLife Insurance Company of Korea Limited (South Korea)- 21.22% of MetLife Insurance Company of Korea Limited is owned by MetLife, Mexico, S.A. and 78.78% is owned by Metlife International Holdings, Inc. 8. Metropolitan Life Seguros e Previdencia Privada S.A. (Brazil)- 74.5485235740% is owned by MetLife International Holdings, Inc. and 25.451476126% is owned by MetLife Worldwide Holdings, Inc. and 0.0000003% is owned by Natiloportem Holdings, Inc. 9. MetLife Global, Inc. (DE) 10. MetLife Administradora de Fundos Multipatrocinados Ltda (Brazil) - 95.4635% is owned by MetLife International Holdings, Inc. and 4.5364% is owned by Natiloportem Holdings, Inc. 11. MetLife Insurance Limited (United Kingdom) 12. MetLife General Insurance Limited (Australia) 13. MetLife Limited (United Kingdom) 14. MetLife Insurance S.A./NV (Belgium) - 99.9% is owned by MetLife International Holdings, Inc. and 0.1% is owned by third parties. 15. MetLife Services Limited (United Kingdom) 16. MetLife Insurance Limited (Australia) a) MetLife Insurance and Investment Trust (Australia) b) MetLife Investments Pty Limited (Australia) c) MetLife Services (Singapore) PTE Limited (Australia) 17. Siembra Seguros de Retiro S.A. (Argentina) - 96.8819% is owned by MetLife International Holdings, Inc. and 3.1180% is owned by Natiloportem Holdings, Inc. 18. Best Market S.A. (Argentina) - 5% of the shares are held by Natiloportem Holdings, Inc. and 94.9999% is owned by MetLife International Holdings Inc. 19. Compania Previsional MetLife S.A. (Brazil) - 95.4635% is owned by MetLife International Holdings, Inc. and 4.5364% is owned by Natiloportem Holdings, Inc. (a) Met AFJP S.A. (Argentina) - 75.4088% of the shares of Met AFJP S.A. are held by Compania Previsional MetLife SA, 19.5912% is owned by Metropolitan Life Seguros de Vida SA, 3.9689% is held by Natiloportem Holdings, Inc. and 1.0310% is held by Metropolitan Life Seguros de Retiro SA. 20. MetLife Worldwide Holdings, Inc. (DE) a) MetLife Towarzystwo Ubezpieczen na Zycie Spolka Akcyjna. (Poland) b) MetLife Direct Co., Ltd. (Japan) c) MetLife Fubon Limited (Japan) U. Metropolitan Life Insurance Company (NY) 1. 334 Madison Euro Investments, Inc. (DE) a) Park Twenty Three Investments Company (United Kingdom)- 1% voting control of Park Twenty Three Investments Company is held by St. James Fleet Investments Two Limited. 1% of the shares of Park Twenty Three Investments Company is held by Metropolitan Life Insurance Company. 99% is owned by 334 Madison Euro Investment, Inc. (1) Convent Station Euro Investments Four Company (United Kingdom)- 1% voting control of Convent Station Euro Investments Four Company is held by 334 Madison Euro Investments, Inc. as nominee for Park Twenty Three Investments Company. 99% is owned by Park Twenty Three Investments Company. 2. St. James Fleet Investments Two Limited (Cayman Islands)- 34% of the shares of St. James Fleet Investments Two Limited is held by Metropolitan Life Insurance Company. 3. One Madison Investments (Cayco) Limited (Cayman Islands)- 10.1% voting control of One Madison Investments (Cayco) Limited is held by Convent Station Euro Investments Four Company. 89.9% of the shares of One Madison Investments (Cayco) Limited is held by Metropolitan Life Insurance Company. 4. CRB Co, Inc. (MA)- AEW Real Estate Advisors, Inc. holds 49,000 preferred non-voting shares and AEW Advisors, Inc. holds 1,000 preferred non-voting shares of CRB, Co., Inc. 5. GA Holding Corp. (MA) 3 6. Thorngate, LLC (DE) 7. Alternative Fuel I, LLC (DE) 8. Transmountain Land & Livestock Company (MT) 9. MetPark Funding, Inc. (DE) 10. HPZ Assets LLC (DE) 11. Missouri Reinsurance (Barbados), Inc. (Barbados) 12. Metropolitan Tower Realty Company, Inc. (DE) a) Midtown Heights, LLC (DE) 13. MetLife Real Estate Cayman Company (Cayman Islands) 14. Metropolitan Marine Way Investments Limited (Canada) 15. MetLife Private Equity Holdings, LLC (DE) 16. 23rd Street Investments, Inc. (DE) a) Mezzanine Investment Limited Partnership-BDR (DE). Metropolitan Life Insurance Company holds a 99% limited partnership interest in Mezzanine Investment Limited Partnership-BDR and 23rd Street Investments, Inc. is a 1% general partner. b) Mezzanine Investment Limited Partnership-LG (DE). 23rd Street Investments, Inc. is a 1% general partner of Mezzanine Investment Limited Partnership-LG. Metropolitan Life Insurance Company holds a 99% limited partnership interest in Mezzanine Investment Limited Partnership-LG. c) MetLife Capital Credit L.P. (DE)- 1% General Partnership interest is held by 23rd Street Investments, Inc., 99% Limited Partnership Interest is held by Metropolitan Life Insurance Company. d) MetLife Capital Limited Partnership (DE)- 1% General Partnership interest is held by 23rd Street Investments, Inc., 99% Limited Partnership Interest is held by Metropolitan Life Insurance Company. 17. Metropolitan Realty Management, Inc. (DE) 18. Hyatt Legal Plans, Inc. (DE) a) Hyatt Legal Plans of Florida, Inc. (FL) 19. MetLife Holdings, Inc. (DE) a) MetLife Credit Corp. (DE) b) MetLife Funding, Inc. (DE) 4 20. Bond Trust Account A (MA) 21. MetLife Investments Asia Limited (Hong Kong). 22. MetLife Investments Limited (United Kingdom)- 23rd Street Investments, Inc. holds one share of MetLife Investments Limited. 23. MetLife Latin America Asesorias e Inversiones Limitada (Chile)- 23rd Street Investments, Inc. holds 0.01% of MetLife Latin America Asesorias e Inversiones Limitada. 24. New England Life Insurance Company (MA) a) MetLife Advisers, LLC (MA) b) New England Securities Corporation (MA) 25. GenAmerica Financial, LLC (MO) a) GenAmerica Capital I (DE) b) General American Life Insurance Company (MO) (1) GenAmerica Management Corporation (MO) 5 (2) Reinsurance Group of America, Incorporated (MO) - 52% is owned by General American Life Insurance Company. (a) Reinsurance Company of Missouri, Incorporated (MO) (i) Timberlake Financial, L.L.C. (DE) (A) Timberlake Reinsurance Company II (SC) (ii) RGA Reinsurance Company (MO) (A) Reinsurance Partners, Inc. (MO) (iii) Parkway Reinsuarnce Company (MO) (b) RGA Worldwide Reinsurance Company, Ltd. (Barbados) (c) RGA Atlantic Reinsurance Company, Ltd. (Barbados) (d) RGA Americas Reinsurance Company, Ltd. (Barbados) (e) RGA Reinsurance Company (Barbados) Ltd. (Barbados) (i) RGA Financial Group, L.L.C. (DE)- 80% is owned by RGA Reinsurance Company (Barbados) Ltd. RGA Reinsurance Company also owns a 20% non-equity membership in RGA Financial Group, L.L.C. (f) RGA Life Reinsurance Company of Canada (Canada) (g) RGA International Corporation (Nova Scotia/Canada) (h) RGA Holdings Limited (U.K.) (United Kingdom) (i) RGA UK Services Limited (United Kingdom) (ii) RGA Capital Limited U.K. (United Kingdom) (iii) RGA Reinsurance (UK) Limited (United Kingdom) (iv) RGA Services India Private Limited (India) - Reinsurance Group of America Incorporated owns 99% of RGA Services India Private Limited and RGA Holdings Limited owns 1%. (i) RGA South African Holdings (Pty) Ltd. (South Africa) (i) RGA Reinsurance Company of South Africa Limited (South Africa) (j) RGA Australian Holdings PTY Limited (Australia) (i) RGA Reinsurance Company of Australia Limited (Australia) (ii) RGA Asia Pacific PTY, Limited (Australia) (k) General American Argentina Seguros de Vida, S.A. (Argentina) - 95% of General American Argentina Seguros de Vida, S.A. is owned by Reinsurance Group of America, Incorporated and 5% is owned by RGA Reinsurance Company (Barbados) Ltd. 6 (l) RGA Technology Partners, Inc. (MO) (m) RGA International Reinsurance Company (Ireland) (n) RGA Capital Trust I (DE) (i) RGA Global Reinsurance Company, Ltd. (Bermuda) 26. Corporate Real Estate Holdings, LLC (DE) 27. Ten Park SPC (CAYMAN ISLANDS ) - 1% voting control of Ten Park SPC is held by 23rd Street Investments, Inc. 28. MetLife Tower Resources Group, Inc. (DE) 29. Headland - Pacific Palisades, LLC (CA) 30. Headland Properties Associates (CA) - 1% is owned by Headland - Pacific Palisades, LLC and 99% is owned by Metropolitan Life Insurance Company. 31. Krisman, Inc. (MO) 32. Special Multi-Asset Receivables Trust (DE) 33. White Oak Royalty Company (OK) 34. 500 Grant Street GP LLC (DE) 35. 500 Grant Street Associates Limited Partnership (CT) - 99% of 500 Grant Street Associates Limited Partnership is held by Metropolitan Life Insurance Company and 1% by 500 Grant Street GP LLC 36. MetLife Canada/MetVie Canada (Canada) 37. MetLife Retirement Services LLC (NJ) a) MetLife Investment Funds Services LLC (NJ) b) MetLife Investment Funds Management LLC (NJ) c) MetLife Associates LLC (DE) 38. Euro CL Investments LLC (DE) 39. MEX DF Properties, LLC (DE) 40. MSV Irvine Property, LLC (DE) - 4% of MSV Irvine Property, LLC is owned by Metropolitan Tower Realty Company, Inc. and 96% is owned by Metropolitan Life Insurance Company 41. MetLife Properties Ventures, LLC (DE) a) Citypoint Holdings II Limited (UK) 42. Housing Fund Manager, LLC (DE) 43. MTC Fund I, LLC (DE) 0.01% of MTC Fund I, LLC is held by Housing Fund Manager, LLC. 44. MTC Fund II, LLC (DE) V. MetLife Capital Trust II (DE) W. MetLife Capital Trust III (DE) X. MetLife Capital Trust IV (DE) Y. MetLife Insurance Company of Connecticut (CT) - 86.72% is owned by MetLife, Inc. and 13.28% is owned by MetLife Investors Group, Inc. (Life Department)(Accident Department) The operations of the Accident Department have ceased as a result of the transfer of the worker's compensation business to an unrelated party. 1. 440 South LaSalle LLC (DE) 2. Pilgrim Investments Oakmont Lane, LLC (DE) - 50% is owned by MetLife Insurance Company of Connecticut and 50% is owned by a third party. 3. Pilgrim Alternative Investments Opportunity Fund I, LLC (DE) - 67% is owned by MetLife Insurance Company of Connecticut, and 33% is owned by third party. 4. Pilgrim Alternative Investments Opportunity Fund III Associates, LLC (CT) - 67% is owned by MetLife Insurance Company of Connecticut, and 33% is owned by third party. 5. Pilgrim Investments Highland Park, LLC (DE) 6. Metropolitan Connecticut Properties Ventures, LLC (DE) 7. MetLife Canadian Property Ventures LLC (NY) 8. Euro TI Investments LLC (DE) 9. Greenwich Street Investments, LLC (DE) a) Greenwich Street Capital Offshore Fund, Ltd. (Virgin Islands) b) Greenwich Street Investments, L.P. (DE) 10. Hollow Creek, L.L.C. (CT) 11. One Financial Place Corporation (DE) - 100% is owned in the aggregate by MetLife Insurance Company of Connecticut. 12. One Financial Place Holdings, LLC (DE)-100% is owned in the aggregate by MetLife Insurance Company of Connecticut. 13. Plaza LLC (CT) a) Tower Square Securities, Inc. (CT) 1) Tower Square Securities Insurance Agency of New Mexico, Inc. (NM) 2) Tower Square Securities Insurance Agency of Ohio, Inc. (OH) 99% is owned by Tower Square Securities, Inc. 14. TIC European Real Estate LP, LLC (DE) 15. MetLife European Holdings, Inc. (UK) a) MetLife Europe Limited (IRELAND) (i) MetLife Pensions Trustees Limited (UK) b) MetLife Assurance Limited (UK) 16. Travelers International Investments Ltd. (Cayman Islands) 17. Euro TL Investments LLC (DE) 18. Corrigan TLP LLC (DE) 19. TLA Holdings LLC (DE) a) The Prospect Company (DE) 1) Panther Valley, Inc. (NJ) 20. TRAL & Co. (CT) - TRAL & Co. is a general partnership. Its partners are MetLife Insurance Company of Connecticut and Metropolitan Life Insurance Company. 21. Tribeca Distressed Securities L.L.C. (DE) 22. MetLife Investors USA Insurance Comapny (DE) 23. MetLife Property Ventures Canada ULC (Canada) Z. MetLife Reinsurance Company of South Carolina (SC) AA. MetLife Investment Advisors Company, LLC (DE) BB. MetLife Standby I, LLC (DE) 1. MetLife Exchange Trust I (DE) CC. MetLife Services and Solutions, LLC (DE) 1. MetLife Solutions Pte. Ltd. (Singapore) (i) MetLife Services East Private Limited (India) DD. Soap Acquisition Corporation (NY) The voting securities (excluding directors' qualifying shares, if any) of each subsidiary shown on the organizational chart are 100% owned by their respective parent corporation, unless otherwise indicated. In addition to the entities shown on the organizational chart, MetLife, Inc. (or where indicated, a subsidiary) also owns interests in the following entities: 1) Metropolitan Life Insurance Company owns varying interests in certain mutual funds distributed by its affiliates. These ownership interests are generally expected to decrease as shares of the funds are purchased by unaffiliated investors. 2) Metropolitan Life Insurance Company indirectly owns 100% of the non-voting preferred stock of Nathan and Lewis Associates Ohio, Incorporated, an insurance agency. 100% of the voting common stock of this company is held by an individual who has agreed to vote such shares at the direction of N.L. HOLDING CORP. (DEL), a direct wholly owned subsidiary of MetLife, Inc. 3) Mezzanine Investment Limited Partnerships ("MILPs"), Delaware limited partnerships, are investment vehicles through which investments in certain entities are held. A wholly owned subsidiary of Metropolitan Life Insurance Company serves as the general partner of the limited partnerships and Metropolitan Life Insurance Company directly owns a 99% limited partnership interest in each MILP. The MILPs have various ownership and/or debt interests in certain companies. 4) The Metropolitan Money Market Pool and MetLife Intermediate Income Pool are pass-through investment pools, of which Metropolitan Life Insurance Company and/or its subsidiaries and/or affiliates are general partners. NOTE: THE METLIFE, INC. ORGANIZATIONAL CHART DOES NOT INCLUDE REAL ESTATE JOINT VENTURES AND PARTNERSHIPS OF WHICH METLIFE, INC. AND/OR ITS SUBSIDIARIES IS AN INVESTMENT PARTNER. IN ADDITION, CERTAIN INACTIVE SUBSIDIARIES HAVE ALSO BEEN OMITTED. 7 ITEM 27. NUMBER OF CONTRACT OWNERS As of January 31, 2008, there were 30,794 qualified contract owners and 16,157 non-qualified contract owners of Series VA contracts. ITEM 28. INDEMNIFICATION The Depositor's parent, MetLife, Inc. has secured a Financial Institutions Bond in the amount of $50,000,000, subject to a $5,000,000 deductible. MetLife, Inc. also maintains a Directors and Officers Liability and Corporate Reimbursement Insurance Policy with limits of $400 million under which the Depositor and MetLife Investors Distribution Company, the Registrant's underwriter (the "underwriter"), as well as certain other subsidiaries of MetLife are covered. A provision in Metlife, Inc.'s by-laws provides for the indemnification (under certain circumstances) of individuals serving as directors or officers of certain organizations, including the Depositor and the Underwriter. A director of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except for liability (i) for any breach of the director's duty of loyalty to the corporation or its stockholders, (ii) for acts or omissions not in good faith or which would involve intentional misconduct or a knowing violation of law, (iii) under Section 174 of the Delaware General Corporation Law, or (iv) for any transaction from which the director derived any improper personal benefit. The foregoing sentence notwithstanding, if the Delaware General Corporation Law hereafter is amended to authorized further limitations of the liability of a director of a corporation, then a director of the corporation, in addition to the circumstances in which a director is not personally liable as set forth in the preceding sentence, shall be held free from liability to the fullest extent permitted by the Delaware General Corporation Law as so amended. Any repeal or modification of the foregoing provisions of this Article 7 by the stockholders of the corporation shall not adversely affect any right or protection of a director of the corporation existing at the time of such repeal or modification. Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors and officers or controlling persons of the Company pursuant to the foregoing, or otherwise, the Company has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Company of expenses incurred or paid by a director, officer or controlling person of the Company in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Company will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. ITEM 29. PRINCIPAL UNDERWRITERS (a) MetLife Investors Distribution Company is the principal underwriter for the following investment companies (other than Registrant): Met Investors Series Trust MetLife Investors USA Variable Life Account A MetLife Investors Variable Annuity Account One MetLife Investors Variable Annuity Account Five MetLife Investors Variable Life Account One MetLife Investors Variable Life Account Five First MetLife Investors Variable Annuity Account One General American Separate Account Eleven General American Separate Acocunt Twenty-Eight General American Separate Account Twenty-Nine General American Separate Account Two Security Equity Separate Account Twenty-Six Security Equity Separate Account Twenty-Seven MetLife of CT Fund U for Variable Annuities MetLife of CT Fund BD for Variable Annuities MetLife of CT Fund BD II for Variable Annuities MetLife of CT Fund BD III for Variable Annuities MetLife of CT Fund BD IV for Variable Annuities MetLife of CT Fund ABD for Variable Annuities MetLife of CT Fund ABD II for Variable Annuities MetLife of CT Separate Account PF for Variable Annuities MetLife of CT Separate Account PF II for Variable Annuities MetLife of CT Separate Account QP for Variable Annuities MetLife of CT Separate Account QPN for Variable Annuities MetLife of CT Separate Account TM for Variable Annuities MetLife of CT Separate Account TM II for Variable Annuities MetLife of CT Separate Account Five for Variable Annuities MetLife of CT Separate Account Six for Variable Annuities MetLife of CT Separate Account Seven for Variable Annuities MetLife of CT Separate Account Eight for Variable Annuities MetLife of CT Separate Account Nine for Variable Annuities MetLife of CT Separate Account Ten for Variable Annuities MetLife of CT Fund UL for Variable Life Insurance MetLife of CT Fund UL II for Variable Life Insurance MetLife of CT Fund UL III for Variable Life Insurance MetLife of CT Variable Life Insurance Separate Account One MetLife of CT Variable Life Insurance Separate Account Two MetLife of CT Variable Life Insurance Separate Account Three Metropolitan Life Variable Annuity Separate Account I Metropolitan Life Variable Annuity Separate Account II MetLife of CT Separate Account Eleven for Variable Annuities MetLife of CT Separate Account Twelve for Variable Annuities MetLife of CT Separate Account Thirteen for Variable Annuities MetLife of CT Separate Account Fourteen for Variable Annuities MetLife Insurance Company of Connecticut Variable Annuity Separate Account 2002 MetLife Life and Annuity Company of Connecticut Variable Annuity Separate Account 2002 Metropolitan Life Separate Account E Paragon Separate Account A Paragon Separate Account B Paragon Separate Account C Paragon Separate Account D Metropolitan Series Fund, Inc. Metropolitan Tower Life Separate Account One Metropolitan Tower Life Separate Account Two (b) MetLife Investors Distribution Company is the principal underwriter for the Contracts. The following persons are the officers and directors of MetLife Investors Distribution Company. The principal business address for MetLife Investors Distribution Company is 5 Park Plaza, Suite 1900, Irvine, CA 92614.
NAME AND PRINCIPAL BUSINESS ADDRESS POSITIONS AND OFFICES WITH UNDERWRITER ------------------------------------- --------------------------------------- Michael K. Farrell Director 10 Park Avenue Morristown, NJ 07962 Craig W. Markham Director and Vice President 13045 Tesson Ferry Road St. Louis, MO 63128
NAME AND PRINCIPAL BUSINESS ADDRESS POSITIONS AND OFFICES WITH UNDERWRITER ------------------------------------- ----------------------------------------------------------------- William J. Toppeta Director 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Paul A. Sylvester President, National Sales Manager-Annuities & LTC 10 Park Avenue Morristown, NJ 07962 Elizabeth M. Forget Executive Vice President, Investment Fund Management & Marketing 260 Madison Avenue New York, NY 10016 Paul A. LaPiana Executive Vice President, National Sales Manager-Life 5 Park Plaza Suite 1900 Irvine, CA 92614 Richard C. Pearson Executive Vice President, 5 Park Plaza General Counsel and Secretary Suite 1900 Irvine, CA 92614 Peter Gruppuso Vice President, Chief Financial Officer 485-E US Highway 1 South Iselin, NJ 08830 Leslie Sutherland Senior Vice President, Channel Head-Broker/Dealers 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Edward C. Wilson Senior Vice President, Channel Head-Wirehouse 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Douglas P. Rodgers Senior Vice President, Channel Head-LTC 10 Park Avenue Morristown, NJ 07962 Curtis Wohlers Senior Vice President, Channel Head-Planners 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Myrna F. Solomon Senior Vice President, Channel Head-Banks 501 Boylston Street Boston, MA 02116 Jeffrey A. Barker Senior Vice President, Channel Head-Independent Accounts 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Andrew Aiello Senior Vice President, Channel Head-National Accounts 5 Park Plaza Suite 1900 Irvine, CA 92614 Jay S. Kaduson Senior Vice President 10 Park Avenue Morristown, NJ 07962 Eric T. Steigerwalt Treasurer 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101
NAME AND PRINCIPAL BUSINESS ADDRESS POSITIONS AND OFFICES WITH UNDERWRITER ------------------------------------- --------------------------------------- Debora L. Buffington Vice President, Director of Compliance 5 Park Plaza Suite 1900 Irvine, CA 92614 David DeCarlo Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Paul M. Kos Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Deron J. Richens Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Cathy Sturdivant Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Paulina Vakouros Vice President 260 Madison Avenue New York, NY 10016 Charles M. Deuth Vice President, National Accounts 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101
(c) Compensation from the Registrant. The following commissions and other compensation were received by the Distributor, directly or indirectly, from the Registrant during the Registrant's last fiscal year:
(1) (2) (3) (4) (5) Net Underwriting Discounts And Compensation Brokerage Other Name of Principal Underwriter Commissions On Redemption Commissions Compensation ----------------------------------------- ----------------- --------------- ------------- ------------- MetLife Investors Distribution Company $378,957,429 $0 $0 $0
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS The following companies will maintain possession of the documents required by Section 31(a) of the Investment Company Act of 1940 and the Rules thereunder: (a) Registrant (b) MetLife Annuity Operations, 27000 Westown Parkway, Bldg. 4, Suite 200, West Des Moines, IA 50266 (c) State Street Bank & Trust Company, 225 Franklin Street, Boston, MA 02110 (d) MetLife Investors Distribution Company, 5 Park Plaza, Suite 1900, Irvine, CA 92614 (e) MetLife Investors Insurance Company, 5 Park Plaza, Suite 1900, Irvine, CA 92614 (f) MetLife, 4010 Boy Scout Blvd., Tampa, FL 33607 (g) MetLife, 501 Boylston Street, Boston, MA 02116 (h) MetLife, 200 Park Avenue, New York, NY 10166 (i) MetLife, 1125 17th Street, Denver, CO 80202 ITEM 31. MANAGEMENT SERVICES Not Applicable. ITEM 32. UNDERTAKINGS a. Registrant hereby undertakes to file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the audited financial statements in the registration statement are never more than sixteen (16) months old for so long as payment under the variable annuity contracts may be accepted. b. Registrant hereby undertakes to include either (1) as part of any application to purchase a contract offered by the Prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a postcard or similar written communication affixed to or included in the Prospectus that the applicant can remove to send for a Statement of Additional Information. c. Registrant hereby undertakes to deliver any Statement of Additional Information and any financial statement required to be made available under this Form promptly upon written or oral request. REPRESENTATIONS MetLife Investors USA Insurance Company ("Company") hereby represents that the fees and charges deducted under the Contracts described in the Prospectus, in the aggregate, are reasonable in relation to the services rendered, the expenses to be incurred and the risks assumed by the Company. The Company hereby represents that it is relying upon a No-Action Letter issued to the American Council of Life Insurance dated November 28, 1988 (Commission ref. IP-6-88) and that the following provisions have been complied with: 1. Include appropriate disclosure regarding the redemption restrictions imposed by Section 403(b)(11) in each registration statement, including the prospectus, used in connection with the offer of the contract; 2. Include appropriate disclosure regarding the redemption restrictions imposed by Section 403(b)(11) in any sales literature used in connection with the offer of the contract; 3. Instruct sales representatives who solicit participants to purchase the contract specifically to bring the redemption restrictions imposed by Section 403(b)(11) to the attention of the potential participants; 4. Obtain from each plan participant who purchases a Section 403(b) annuity contract, prior to or at the time of such purchase, a signed statement acknowledging the participant's understanding of (1) the restrictions on redemption imposed by Section 403(b)(11), and (2) other investment alternatives available under the employer's Section 403(b) arrangement to which the participant may elect to transfer his contract value. SIGNATURES As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has caused this Registration Statement to be signed on its behalf in the City of Irvine and State of California on this 15th day of April 2008. METLIFE INVESTORS USA SEPARATE ACCOUNT A (Registrant) By: METLIFE INVESTORS USA INSURANCE COMPANY By: /s/ Richard C. Pearson --------------------------------------- Richard C. Pearson Vice President, Associate General Counsel and Secretary METLIFE INVESTORS USA INSURANCE COMPANY (Depositor) By: /s/ Richard C. Pearson ---------------------------------------- Richard C. Pearson Vice President, Associate General Counsel and Secretary
As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated on April 15, 2008.
/s/ Michael K. Farrell* -------------------------------- Chairman of the Board, Chief Executive Officer, Michael K. Farrell President and Director /s/ Charles V. Curcio* Vice President - Finance (principal financial officer and -------------------------------- principal accounting officer) Charles V. Curcio /s/ Susan A. Buffum* Director -------------------------------- Susan A. Buffum /s/ Jay S. Kaduson* Vice President and Director -------------------------------- Jay S. Kaduson /s/ Margaret C. Fechtmann* Director -------------------------------- Margaret C. Fechtmann /s/ Elizabeth M. Forget* Executive Vice President and Director -------------------------------- Elizabeth M. Forget /s/ George Foulke* Director -------------------------------- George Foulke /s/ Paul A. Sylvester* Director -------------------------------- Paul A. Sylvester /s/ Richard C. Pearson* Vice President, Associate General Counsel, Secretary and -------------------------------- Director Richard C. Pearson /s/ Jeffrey A. Tupper* Assistant Vice President and Director -------------------------------- Jeffrey A. Tupper
*By: /s/ Michele H. Abate ---------------------------------------- Michele H. Abate, Attorney-In-Fact April 15, 2008
* MetLife Investors USA Insurance Company. Executed by Michele H. Abate, Esquire on behalf of those indicated pursuant to powers of attorney incorporated herein by reference to Registrant's Post-Effective Amendment No. 23 to the Registration Statement on Form N-4 (File Nos. 333-54464/811-03365) filed as Exhibit 13 on April 16, 2007. EXHIBITS 5(vi) Form of Variable Annuity Application 7(iii) Reinsurance Agreement and Administrative Services Agreement 10 Consent of Independent Registered Public Accounting Firm (Deloitte & Touche LLP) EX-99.5(VI) 2 dex995vi.txt FORM OF VARIABLE ANNUITY APPLICATION [LOGO] MetLife(R) VARIABLE ANNUITY APPLICATION SEND APPLICATION AND CHECK TO: Home Office Address (no correspondence) METLIFE INVESTORS USA INSURANCE COMPANY 222 Delaware Avenue Suite 900 . Wilmington, DE 19899 Policy Service Office: P.O. Box 10366 . Des Moines, Iowa 50306-0366 MetLife Investors USA Variable Annuity Series VA For Express Mail Only . 4700 Westown Parkway Ste. 200 . West Des Moines, IA 50266-2266 FOR ASSISTANCE CALL: THE SALES DESK ACCOUNT INFORMATION 1. ANNUITANT ---------------------------------------------------------------- Social Name (First) (Middle) (Last) Security Number _______________--_______________--_____________ ---------------------------------------------------------------- Sex [_] M [_] F Date of Birth _____/_____/_____ Address (Street - No P.O. Box) (City) (State) (Zip) Phone (_____) _________________________________________________ 2. OWNER (COMPLETE ONLY IF DIFFERENT THAN ANNUITANT) Correspondence is sent to the Owner. ---------------------------------------------------------------- Social Name (First) (Middle) (Last) Security/Tax ID Number _____________--_____________--__________ ---------------------------------------------------------------- Sex [_] M [_] F Date of Birth/Trust _____/_____/_____ Address (Street - No P.O. Box) (City) (State) (Zip) Phone (_____) _________________________________________________ 3. JOINT OWNER ---------------------------------------------------------------- Social Name (First) (Middle) (Last) Security Number _______________--_______________--_____________ ---------------------------------------------------------------- Sex [_] M [_] F Date of Birth _____/_____/_____ Address (Street - No P.O. Box) (City) (State) (Zip) Phone (_____) _________________________________________________ 4. BENEFICIARY Show full name(s), address(es), relationship to Owner, Social Security Number(s), and percentage each is to receive. Use the Special Requests section if additional space is needed. UNLESS SPECIFIED OTHERWISE IN THE SPECIAL REQUESTS SECTION, IF JOINT OWNERS ARE NAMED, UPON THE DEATH OF EITHER JOINT OWNER, THE SURVIVING JOINT OWNER WILL BE THE PRIMARY BENEFICIARY, AND THE BENEFICIARIES LISTED BELOW WILL BE CONSIDERED CONTINGENT BENEFICIARIES. - - ------------------------------------------------------------------------------------------------------------------------------------ Primary Name (Street - No P.O. Box) Relationship Social Security Number % - - ------------------------------------------------------------------------------------------------------------------------------------ Primary Name (Street - No P.O. Box) Relationship Social Security Number % - - ------------------------------------------------------------------------------------------------------------------------------------ Contingent Name (Street - No P.O. Box) Relationship Social Security Number % - - ------------------------------------------------------------------------------------------------------------------------------------ Contingent Name (Street - No P.O. Box) Relationship Social Security Number % ANNUITY PAYMENTS AND TERMINATION VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON THE INVESTMENT EXPERIENCE OF THE SEPARATE ACCOUNT, ARE VARIABLE, MAY INCREASE OR DECREASE, AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT. 5. PLAN TYPE 6. PURCHASE PAYMENT Funding Source of Purchase Payment INDICATE ONLY HOW CONTRACT IS TO BE ISSUED. ---------------------------------- .. NON-QUALIFIED ........ [_] [_] 1035 Exchange [_] Check [_] Wire Initial Purchase .. QUALIFIED Payment $__________________________________________ TRADITIONAL IRA* ..... [_] Transfer [_] Rollover [_] Contribution - Year ____ Make Check Payable to MetLife Investors USA .. QUALIFIED SEP IRA* ... [_] Transfer [_] Rollover [_] Contribution - Year ____ (Estimate dollar amount for 1035 exchanges, transfers, rollovers, etc.) .. QUALIFIED ROTH IRA* .. [_] Transfer [_] Rollover [_] Contribution - Year ____ Minimum Initial Purchase Payment: .. QUALIFIED 401 ........ [_] $5,000 Non-Qualified $2,000 Qualified 8029 (10/07) APPUSAVA APRIL 2008
Page 1 RIDERS 7. BENEFIT RIDERS (subject to state availability and age restrictions) These riders may only be chosen at time of application. PLEASE NOTE, THERE ARE ADDITIONAL CHARGES FOR THE OPTIONAL RIDERS. ONCE ELECTED THESE OPTIONS MAY NOT BE CHANGED. 1) LIVING BENEFIT RIDERS (Optional. Only ONE of the following Riders may be elected) [_] Guaranteed Minimum Income Benefit Rider (GMIB) [_] Guaranteed Minimum Income Benefit Plus Rider (GMIB PLUS) (2008) [_] Guaranteed Withdrawal Benefit (GWB) [_] Single Life - Lifetime Withdrawal Guarantee (LWG) (2008) [_] Joint Life - Lifetime Withdrawal Guarantee (LWG) (2008) [_] Guaranteed Minimum Accumulation Benefit Rider (GMAB) 2) DEATH BENEFIT RIDERS (Check one. If no election is made, the Principal Protection option will apply). [_] Principal Protection (no additional charge) [_] Annual Step-Up [_] Enhanced Death Benefit (may only be elected with GMIB Plus or without an optional Living Benefit Rider.) 3) [_] Earnings Preservation Benefit Rider COMMUNICATIONS 8. TELEPHONE TRANSFER I (We) authorize MetLife Investors USA Insurance Company (MetLife Investors USA) or any person authorized by MetLife Investors USA to accept telephone transfer instructions and/or future payment allocation changes from me (us) and my Registered Representative/Agent. Telephone transfers will be automatically permitted unless you check one or both of the boxes below indicating that you do not wish to authorize telephone transfers. MetLife Investors USA will use reasonable procedures to confirm that instructions communicated by telephone are genuine. I (We) DO NOT wish to authorize telephone transfers for the following (check applicable boxes): [_] Owner(s) [_] Registered Representative/Agent SIGNATURES 9. REPLACEMENTS Does the applicant have any existing life insurance policies or annuity contracts? [_] Yes [_] No Is this annuity being purchased to replace any existing life insurance or annuity policy(ies)? [_] Yes [_] No If "Yes," applicable disclosure and replacement forms must be attached. 10. FRAUD STATEMENT & DISCLOSURE NOTICE TO APPLICANT: ARKANSAS, LOUISIANA, AND NEW MEXICO RESIDENTS ONLY: Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to civil fines and criminal penalties. DISTRICT OF COLUMBIA RESIDENTS ONLY: WARNING: It is a crime to provide false or misleading information to an insurer for the purpose of defrauding the insurer or any other person. Penalties include imprisonment and/or fines. In addition, an insurer may deny insurance benefits if false information materially related to a claim was provided by the applicant. KENTUCKY RESIDENTS ONLY: Any person who knowingly and with the intent to defraud any insurance company or other person files an application for insurance containing any materially false information or conceals, for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime. MAINE, TENNESSEE, AND WASHINGTON RESIDENTS ONLY: It is a crime to knowingly provide false, incomplete or misleading information to an insurance company for the purpose of defrauding the company. Penalties include imprisonment, fines and denial of insurance benefits. NEW JERSEY RESIDENTS ONLY: Any person who includes any false or misleading information on an application for an insurance policy is subject to criminal and civil penalties. OHIO RESIDENTS ONLY: A person who, with intent to defraud or knowing that he is facilitating a fraud against an insurer, submits an application or files a claim containing false or deceptive statement is guilty of insurance fraud. PENNSYLVANIA RESIDENTS ONLY: ANNUITY PAYMENTS OR SURRENDER VALUES, WHEN BASED UPON THE INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT ARE VARIABLE AND ARE NOT GUARANTEED AS TO A FIXED DOLLAR AMOUNT. PENNSYLVANIA RESIDENTS ONLY: Any person who knowingly and with intent to defraud any insurance company or other person files an application for insurance or statement of claim containing any materially false information or conceals for the purpose of misleading, information concerning any fact material thereto commits a fraudulent insurance act, which is a crime and subjects such person to criminal and civil penalties. MASSACHUSETTS RESIDENTS ONLY: The variable annuity for which you are making this application gives us the right to restrict or discontinue allocations of purchase payments to the Fixed Account and reallocation from the Investment Divisions to the Fixed Account. This discontinuance right may be exercised for reasons which include but are not limited to our ability to support the minimum guaranteed interest rate of the Fixed Account when the yields on our Investments would not be sufficient to do so. This discontinuance will not be exercised in an unfairly discriminatory manner. The prospectus also contains additional information about our right to restrict access to the Fixed Account in the future. BY SIGNING THIS APPLICATION, I ACKNOWLEDGE THAT I HAVE RECEIVED, READ AND UNDERSTOOD THE STATEMENTS IN THIS APPLICATION AND IN THE PROSPECTUS THAT THE FIXED ACCOUNT MAY NOT BE AVAILABLE AT SOME POINT DURING THE LIFE OF THE CONTRACT INCLUDING POSSIBLY WHEN THIS CONTRACT IS ISSUED. FLORIDA RESIDENTS ONLY: A PERSON WHO KNOWINGLY AND WITH INTENT TO INJURE, DEFRAUD OR DECEIVE ANY INSURANCE COMPANY FILES A STATEMENT OF CLAIM CONTAINING FALSE, INCOMPLETE OR MISLEADING INFORMATION IS GUILTY OF A FELONY OF THE THIRD DEGREE. 11. ACKNOWLEDGEMENT AND AUTHORIZATION I (We) agree that the above information and statements and those made on all pages of this application are true and correct to the best of my (our) knowledge and belief and are made as the basis of my (our) application. I (We) acknowledge receipt of the current prospectus of MetLife Investors USA Separate Account A. PAYMENTS AND VALUES PROVIDED BY THE CONTRACT FOR WHICH APPLICATION IS MADE ARE VARIABLE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT. I HAVE READ THE STATE FRAUD STATEMENT IN SECTION 10 ABOVE APPLICABLE TO ME. -------------------------------------------------------------------------------- (OWNER SIGNATURE & TITLE, ANNUITANT UNLESS OTHERWISE NOTED) -------------------------------------------------------------------------------- (JOINT OWNER SIGNATURE & TITLE) -------------------------------------------------------------------------------- (SIGNATURE OF ANNUITANT IF OTHER THAN OWNER) Signed at ---------------------------------------------------------------------- (City) (State) Date --------------------------------------------------------------------------- 12. AGENT'S REPORT Does the applicant have any existing life insurance policies or annuity contracts? [_] Yes [_] No Is this annuity being purchased to replace any existing life insurance or annuity policy(ies)? [_] Yes [_] No If "Yes," applicable disclosure and replacement forms must be attached. -------------------------------------------------------------------------------- AGENT'S SIGNATURE -------------------------------------------------------------------------------- Phone -------------------------------------------------------------------------------- Agent's Name and Number -------------------------------------------------------------------------------- Name and Address of Firm -------------------------------------------------------------------------------- State License ID Number (Required for FL) -------------------------------------------------------------------------------- Client Account Number Home Office Program Information: -------------------------------- Select one. Once selected, the option cannot be changed. Option A _______________ Option B _______________ Option C _______________ 8029 (10/07) APPUSAVA APRIL 2008 Page 2 EX-99.7(III) 3 dex997iii.txt REINSURANCE AGREEMENT AND ADMINISTRATIVE SERVICES AGREEMENT REINSURANCE AGREEMENT This AGREEMENT (the "Agreement") is made as of January 1, 2006, METLIFE INVESTORS USA INSURANCE COMPANY (the "Reinsured"), 222 Delaware Avenue, Suite 900, Wilmington, Delaware 19899, a life insurance corporation organized and existing under the laws of the State of Delaware, and METROPOLITAN LIFE INSURANCE COMPANY (the "Reinsurer") 200 Park Avenue, New York, NY 10166, a life insurance corporation organized and existing under the laws of the State of New York. THE BACKGROUND OF THIS AGREEMENT is that the Reinsured has certain issued and outstanding life insurance policies and annuity contracts that provide for the payment of benefits using supplemental insurance contracts, including retained asset accounts (each a "TCA") that the Reinsured desires to cede on a one hundred percent (100%) coinsurance basis to the Reinsurer and that it wishes engage an Administrator to administer its TCA liabilities and the Reinsurer desires to accept the TCA liabilities on that basis and to provide the appropriate administrative services. IN CONSIDERATION of the promises set forth herein, the parties agree as follows: A. REINSURANCE COVERAGE -------------------- 1. The Reinsured cedes and the Reinsurer accepts as indemnity reinsurance, on a coinsurance basis, in accordance with the terms and conditions hereof, one hundred percent (100%) of the Reinsured's liabilities on each TCA heretofore issued or that shall hereafter during the term of this Agreement be issued by the Reinsured in the United States by the Reinsured, except as provided herein below. 2. This Agreement shall take effect as of January 1, 2006, or such later date as the parties may agree (the "Effective Date"). 3. The Reinsurer's liability with respect to any TCA will begin simultaneously with that of the Reinsured, but not prior to the Effective Date. 4. Reinsurance under this Agreement with respect to any TCA shall be maintained in force so long as the Reinsured's TCA liability remains in force, unless terminated or reduced as provided herein. 5. New TCAs established during the term of this Agreement shall be automatically reinsured hereunder. No ceding commission shall be paid hereunder, except as may be otherwise specifically agreed with respect to future cessions. 1 B. REGULATORY APPROVALS -------------------- This Agreement shall not take effect until all required regulatory approvals have been obtained. C. PREMIUMS AND CONSIDERATIONS --------------------------- 1. The Reinsured shall pay to the Reinsurer, as reinsurance premium, an amount equal to the account value of the TCA as of the Effective Date. 2. Any TCA that is established after the Effective Date shall be reported and the Reinsured shall pay to the Reinsurer a reinsurance premium equal to the account value simultaneously with its establishment. D. TERMS OF REINSURANCE -------------------- 1. The Reinsurer shall pay the Reinsured as reinsurance recoverables the amounts of all TCA benefits paid by the Reinsured. 2. The Reinsurer shall reimburse the Reinsured for required State premium taxes and assessments, if any, applicable to a TCA. 3. The Reinsurer shall reimburse the Reinsured for any TCA interest credited after the Effective Date of this Agreement. 4. The Reinsurer shall reimburse the Reinsured for allocated TCA administrative expenses, if any, that the Reinsured incurs directly. 5. The Reinsured and Reinsurer shall timely provide the information to each other that is needed to produce quarterly and annual financial statements. 6. The Reinsured shall be solely responsible for the investigation, settlement and payment of claims under the TCAs; provided, however, that the Reinsured may enter into an Administrative Services Agreement for the provision of such functions subject to its direction and control. 7. All reinsurance settlements and other payments will be effected through offsetting balances, electronic funds transfers or as the parties may otherwise agree to carry out the purposes of this Agreement. 8. The Reinsurer shall pay to Reinsured the experience refund specified in Schedule A and the ceding commission, if any, specified therein. 2 9. The Reinsurer shall provide to the Reinsured a quarterly reconciliation report of amounts due the Reinsured and Reinsurer under this Agreement and, except as the parties shall otherwise agree, all amounts due shall be paid within thirty (30) days of the delivery of such report with interest on past due amounts at an annual rate of seven percent (7%), compounded annually, from the date that the payment was due to the date of payment. E. INDEMNITY REINSURANCE --------------------- This Agreement of indemnity reinsurance is solely between the Reinsured and the Reinsurer. Performance of the obligations of each party under the Agreement shall be rendered solely to the other party. In the event the Reinsured's liability to make any payment is changed due to a modification or cancellation of a TCA, the Reinsurer's liability shall also be changed in the same manner and to the same extent that the Reinsured's liability has been changed. Claim settlements made by the Reinsured in good faith, including compromises, shall be unconditionally binding on the Reinsurer. F. ADJUSTMENTS ----------- In the event that the amount of liability provided by a TCA is increased or reduced because of a change in the underlying policy or contract benefit, the liability of the Reinsurer hereunder shall increase or reduce by the same amount. Any adjustment in reinsurance purchase payments for this reason shall be made without interest. G. CONTRACT CHANGES ---------------- The Reinsured shall not make any material changes in TCA provisions and conditions after the Effective Date, other than as may be legally mandated, without the express written consent of the Reinsurer, which consent shall not be unreasonably withheld. Upon receipt of such consent, there shall be a corresponding change in the related reinsurance with appropriate reinsurance premium adjustments. In the event that the Reinsured makes any change, other than a mandated change, in the TCAs that is not accepted by the Reinsurer, the Reinsured will bear for its own account any additional cost or expense of such change so that the change will not adversely affect the Reinsurer. H. ERRORS AND OMISSIONS -------------------- Any inadvertent errors or omissions on the part of one party occurring in connection with this Agreement or any transaction hereunder shall not relieve the other party from any liability to the first party that would have otherwise attached 3 had such error or omission not occurred, provided that such error or omission is rectified as soon as reasonably practicable after discovery thereof. I. MAINTENANCE OF RECORDS ---------------------- All original files or suitable copies that are transferred to the Reinsurer by the Reinsured or produced by the Reinsurer for the benefit of the Reinsured pursuant to this Agreement (including but not limited to all policy and case files, correspondence and data processing tapes and files) shall be or remain the property of the Reinsured. The Reinsurer shall provide security for the files that are in its possession, including disaster recovery procedures, and shall maintain them in space owned or leased by the Reinsured or segregated within a facility of the Reinsurer in accessible form for either (i) the period of time specified by the Reinsurer's procedures unless the Reinsured specifies otherwise or (ii) until such files are returned to the Reinsured upon the termination of the Agreement, if earlier; provided, however, the original underwriting files shall be delivered to and retained by the Reinsured when not in actual use by the Reinsurer for claims determination, actuarial studies, audits and its other activities pursuant to the Agreement. Upon request by the Reinsurer, the Reinsured shall deliver such files to the Reinsurer and, upon completion of any such use by the Reinsurer, the Reinsurer shall deliver such files to the Reinsured. The Reinsurer shall provide files to the Reinsured promptly upon request and shall cooperate with any regulatory authority having jurisdiction over the Reinsured in providing access to such files. Each party shall take all reasonable actions necessary to ensure that at all times the Reinsured has timely access to all claims and underwriting information relating to the TCAs. J. AUDIT ----- The Reinsurer and the Reinsured and their employees and authorized representatives, respectively, may audit, inspect and examine, during regular business hours, at the home office of the other party, provided that reasonable advance notice has been given, any and all books, records, statements, correspondence, reports, and their related documents or other documents that relate to a TCA. The audited party agrees to provide a reasonable work space for such audit, inspection or examination, to cooperate fully and to disclose the existence of and to produce any and all necessary and reasonable materials requested by such auditors, investigators or examiners. Each party will bear its own audit expenses. All such information, including audit reports and analyses, will be kept confidential. 4 K. ARBITRATION ----------- 1. All disputes and differences between the parties will be decided by arbitration, regardless of the insolvency of either party, unless the conservator, receiver, liquidator or statutory successor is specifically exempted from an arbitration proceeding by applicable state law. 2. Either party may initiate arbitration by providing written notification to the other party. Such written notice shall set forth (i) a brief statement of the issue(s); (ii) the failure of the parties to reach agreement; and (iii) the date of the demand for arbitration. 3. The arbitration panel shall consist of three arbitrators. The arbitrators must be impartial and must, at that time, either be accredited as an arbitrator by ARIAS-US or be an active or former officer of a life insurance or reinsurance company other than the parties or their affiliates. 4. Each party shall select an arbitrator within thirty (30) days from the date of the demand. If either party shall refuse or fail to appoint an arbitrator within the time allowed, the party that has appointed an arbitrator may notify the other party that, if it has not appointed its arbitrator within the following ten (10) days, an arbitrator will be appointed on its behalf. Within thirty (30) days after the appointment of the second arbitrator, the two (2) arbitrators shall select the third arbitrator, who must also be, at that time, accredited by ARIAS-US as an umpire. If the two arbitrators fail to agree on the selection of the third arbitrator within the time allowed, the Umpire Selection Procedures of ARIAS-US, as then in force, shall be used to select the third arbitrator. 5. The arbitrators shall interpret this Agreement as an honorable engagement rather than merely as a legal obligation and shall consider practical business and equitable principles as well as industry custom and practice regarding the applicable insurance and reinsurance business. The arbitrators are released from judicial formalities and shall not be bound by strict rules of procedure and evidence. 6. The arbitrators shall determine all arbitration schedules and procedural rules. Organizational and other meetings will be held in New York, NY. The arbitrators shall decide all matters by majority vote. 7. The decisions of the arbitrators shall be final and binding on both parties. The arbitrators may, at their discretion, award costs and expenses, as they deem appropriate, including but not limited to legal fees and interest. 5 The arbitrators may not award exemplary or punitive damages. Judgment may be entered upon the final decision of the arbitrators in any court of competent jurisdiction. 8. Unless the arbitrators shall provide otherwise, each party will be responsible for (a) all fees and expenses charged by its respective counsel, accountants, actuaries and other representatives in connection with the arbitration and (b) one-half of the expenses of the arbitration, including the fees of the arbitrators. L. INSOLVENCY ---------- 1. In the event of the insolvency, liquidation or rehabilitation of the Reinsured or the appointment of a liquidator, receiver or statutory successor of the Reinsured, the reinsurance provided hereunder shall be payable by the Reinsurer directly to the Reinsured or to its liquidator, receiver or statutory successor on the basis of the TCA liability of the Reinsured without diminution because of such insolvency, liquidation, rehabilitation or appointment or because such liquidator, receiver or statutory successor of the Reinsured has failed to pay any or a portion of any claims. 2. In any such event, the liquidator, receiver or statutory successor of the Reinsured shall give the Reinsurer written notice of the pendency of each TCA claim against the Reinsured within a reasonable time after each such claim is filed in the insolvency, liquidation or rehabilitation proceeding. 3. During the pendency of any such TCA claim, the Reinsurer may, at its own expense, investigate such claim and interpose in the proceeding in which such claim is to be adjudicated any defense or defenses that the Reinsurer may reasonably deem available to the Reinsured or its liquidator, receiver or statutory successor. The expenses incurred in connection therewith by the Reinsurer shall be chargeable, subject to court approval, against the Reinsured as part of the expenses of such insolvency, liquidation or rehabilitation to the extent of any benefit that accrues to the Reinsured solely as a result of the defense or defenses undertaken by the Reinsurer. M. AMENDMENT AND NON-WAIVER ------------------------ Any change or modification of this Agreement shall be null and void unless made by amendment to the Agreement and signed by both parties. No waiver by either party of any default by the other party in the performance of any promise, term or condition of this Agreement shall be construed to be a waiver by such 6 party of any other or subsequent default in performance of the same or any other promise, term or condition of this Agreement. No prior transactions or dealings between the parties shall be deemed to establish any custom or usage waiving or modifying any provision hereof. The failure of either party to enforce any part of this Agreement shall not constitute a waiver by such party of its right to do so, nor shall it be deemed to be an act of ratification or consent. N. OFFSET ------ All moneys due either the Reinsured or the Reinsurer under this Agreement shall be offset against each other, dollar for dollar, regardless of any insolvency of either party. O. SEVERABILITY ------------ In the event that any provision or term of this Agreement shall be held by any court to be invalid, illegal or unenforceable, all of the other terms and provisions shall remain in full force and effect to the extent that their continuance is practicable and consistent with the original intent of the parties. In addition, if provisions are held invalid, illegal or unenforceable, the parties will attempt in good faith to renegotiate the Agreement to carry out its original intent. P. EXTRA-CONTRACTUAL OBLIGATIONS ----------------------------- 1. The Reinsurer assumes no liability under this Agreement for any damages, fines, penalties, costs or expenses, or portion thereof, levied on or assessed against the Reinsured by any court or regulatory body on the basis of negligence, oppression, malice, fraud, fault, wrongdoing or bad faith by the Reinsured in connection with any TCA claim or for any act or omission that is not consistent with the generally accepted practices and standards of the life insurance industry applicable at the time of such act or omission, unless the Reinsurer shall have received notice of and concurred with the actions taken or not taken by the Reinsured that led to the levy or assessment, in which case the Reinsurer shall pay its proportional share determined by the ratio of reinsurance to TCA liability. 2. The Reinsurer will have no liability under this Agreement for any payment by the Reinsured in excess of the TCA amount because of negligence, oppression, malice, fault, wrongdoing or bad faith of the Reinsured in connection with any TCA claim or for any act or omission not consistent with the generally accepted practices and standards of the life insurance industry applicable at the time of such act or omission, unless the 7 Reinsurer shall have received notice of and concurred with the actions taken or not taken by the Reinsured that led to the excess payment, in which case the Reinsurer shall pay, as its proportional share of such excess payment determined by the ratio of reinsurance to the TCA. Q. PAYMENTS UPON RECAPTURE ----------------------- The Reinsured may recapture all reinsurance ceded under this Agreement at any time upon thirty (30) days prior notice. Upon recapture, the Reinsurer shall pay to the Reinsured an amount to be agreed upon by the parties as of the date that the recapture is effective, which amount shall be calculated in a manner that is consistent with the calculation of the original consideration. R. DURATION OF AGREEMENT --------------------- 1. Except as otherwise provided herein, the Agreement shall be unlimited in duration. 2. This Agreement may be terminated prospectively at any time by either the Reinsurer or the Reinsured upon ninety (90) days written notice. A termination of this Agreement shall be effective as of the date specified in a notice of termination given under this Agreement or on such other date as shall be agreed to in writing. 3. Notwithstanding any other provisions of this Agreement, in the event that (a) the Reinsurer shall commence voluntary liquidation or dissolution or (b) the New York Insurance Department shall be directed to liquidate or dissolve the Reinsurer pursuant to an order of liquidation or dissolution, as provided in New York Insurance Law, Article 74 ((S)(S) 7401 et seq.), reinsurance hereunder shall, at the option of the Reinsured, be terminated as of a date concurrent with or subsequent to the filing of the articles of dissolution or issuance of the order of liquidation, as selected by the Reinsured. Written notification of such termination and date shall be given by the Reinsured to the Reinsurer. Termination under this provision shall be subject to the provisions of the New York Insurance Law. S. NOTICES ------- Written notices under this Agreement shall be effective when delivered to any party at the address provided herein: 8 If to the Reinsurer: Roberto Baron, Vice President and Senior Actuary Metropolitan Life Insurance Company 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Gregg Hirsch, Associate General Counsel Metropolitan Life Insurance Company 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 If to the Reinsured: Dick Pearson. Executive Vice President, General Counsel and Secretary MetLife Investors USA Insurance Company 222 Delaware Avenue, Suite 900 PO Box 25130 Wilmington, DE 19899 Either party may change its address by giving the other party written notice of its new address. T. CHOICE OF LAW ------------- This Agreement is subject to and is to be interpreted in accordance with the laws of the State of New York without regard to the New York choice of law rules. U. ENTIRE AGREEMENT ---------------- This Agreement supersedes all prior discussions and agreements between the parties and constitutes their sole and entire agreement with respect to its subject matter and there are no understandings between the parties with respect thereto other than as expressed in the Agreement. V. SURVIVAL -------- All provisions of this Agreement shall, to the extent necessary to carry out the purposes of this Agreement or to ascertain and enforce the parties' rights hereunder, survive its termination. 9 W. COUNTERPARTS ------------ This Agreement may be signed in any number of counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have signed this Agreement as of the date first above written. METROPOLITAN LIFE INSURANCE COMPANY By: /s/ [ILLEGIBLE] ----------------------------------- Title: Vice President and Sr. Actuary METLIFE INVESTORS USA INSURANCE COMPANY By: /s/ Richard C. Pearson ----------------------------------- Title: Executive Vice President 10 SCHEDULE A ---------- Ceding Commission: No ceding commissions shall be payable with respect to liabilities ceded hereunder. Experience Refund: The Reinsurer shall pay each Reinsured an experience refund calculated quarterly as seventy five percent (75%) times (investment income earned - investment income credited - allocated expenses - loss carry-forward) but not less than zero. For this purpose, the loss carry-forward shall be calculated quarterly as (prior quarter loss carry-forward times (1 + calculated portfolio rate for the quarter) + investment income credited + allocated expenses - investment income earned) but not less than zero. 11 ADMINISTRATIVE SERVICES AGREEMENT --------------------------------- THIS AGREEMENT (the "Agreement") is made as of January 1, 2006, BETWEEN METLIFE INVESTORS USA INSURANCE COMPANY (the "Company"), 222 Delaware Avenue, Suite 900, Wilmington, Delaware 19899, a life insurance corporation organized and existing under the laws of the State of Delaware, and METROPOLITAN LIFE INSURANCE COMPANY (the "Administrator"), 200 Park Avenue, New York, NY 10166 a life insurance corporation organized and existing under the laws of the State of New York. THE BACKGROUND OF THIS AGREEMENT is that the parties desire that the Administrator shall administer the Company's retained asset account supplemental contract liabilities (each a TCA"), which TCA liabilities are the subject of a Reinsurance Agreement between the parties of even date herewith. NOW, THEREFORE, in consideration of the mutual promises herein set forth, the parties hereto agree as follows: 1. RETENTION OF ADMINISTRATOR AS SERVICING AGENT. The Company hereby retains the Administrator as its servicing agent to provide services as described in this Agreement (the "Services") on behalf of the Company. 2. DUTIES OF THE ADMINISTRATOR. The Administrator shall: 2.1 Provide necessary and appropriate TCA services, including record maintenance and financial transactions; 2.2 Bill and process TCA remittances for appropriate accounting reconciliations; 2.3 Provide all required federal, state and local tax reporting, with copies to TCA owners, as applicable, and with timely remittance of withheld amounts; 2.4 Provide monthly, quarterly and annual reports, as applicable, with respect to: (a) the number and value of each in force TCA; and (b) local, state and federal income taxes withheld by contract number; 2.5 Maintain a current transaction file, including such fields as may reasonably be required by the Company, with monthly reports to the Company; and 2.6 Perform such other acts as may be necessary or appropriate to carry out the foregoing or as may be agreed between the parties. 3. CAPACITY. The Administrator shall state in all correspondence that it is acting as Administrator for the Company and shall include in such correspondence and related forms a statement reasonably designed to indicate clearly that the coverage is provided under a TCA of the Company. Any letter sent to any TCA owner shall contain the name, address and telephone number of the Company and, if the number of the TCA is contained therein, will state the name of the Company next to the TCA number. If the Administrator's address is included in any form indicating where the completed form should be sent, it will indicate that the completed form is to be sent to the Company care of the Administrator or to the Administrator as Administrator for the Company. If any correspondence or related forms state that the Administrator can be called for further information, the Administrator's telephone number can be given; provided, however, that the Administrator shall answer either in the name of the Company or in its name as Administrator for the Company. 4. ADMINISTRATION. 4.1 The Administrator shall administer and service each TCA that is in force as of the date of this Agreement in accordance with TCA terms and conditions and the standards and practices specified by the Company. The Administrator shall have all required power, both express and implied, to carry out its duties and obligations under this Agreement, including, without limitation, the power and authority to sign documents in the name of the Company. The Company shall retain the authority to make all final decisions with respect to TCA administration. The failure of the Company affirmatively to exercise such authority shall not constitute a waiver of such authority or an omission for the purposes of Section 14. 4.2 All original files or suitable copies that are held by the Company or produced by the Administrator pursuant to this Agreement (including, but not limited to, all contract, correspondence and data processing tapes and files) shall be the property of the Company. The Administrator shall provide security for the files that are in its possession, including disaster recovery procedures, and shall maintain them in space segregated within a facility of the Administrator in accessible form until such files are at the Company's direction and expense transferred to the Company upon the termination of this Agreement. The Administrator shall provide such files to the Company promptly upon request and shall cooperate with any regulatory authority having jurisdiction over the Company in providing access to such files. Each party shall take all reasonable action necessary to assure that at all times the Company shall have timely access to all TCA information. 4.3 The Administrator shall provide to the Company such information and documents as the Company may reasonably require from time to time to track the TCA experience; prepare all reports required by law (or by GAAP 2 accounting regardless of whether required by law); respond to requests by regulators, TCA owners or others; and otherwise take any actions required or reasonably contemplated by this Agreement. The Administrator shall provide to the Company any such information or documents within thirty (30) days of the Company's request, unless the production of such information requires a change in the Administrator's procedures, in which case delivery at a mutually agreed later date will be provided. The Company will reimburse the Administrator for necessary changes in procedures except for those deemed minimal by the Administrator. 4.4 The Administrator shall handle all Contract inquiries and transactions, including, but not limited to, processing of TCA withdrawals, giving TCA owners or others information about tax reporting and providing TCA annual reports to TCA owners. The Administrator shall not liberalize or waive TCA provisions (regardless of past practice) without the Company's specific agreement. 4.5 The Administrator shall receive all TCA funds on behalf of the Company in a fiduciary capacity and all such receipts shall be promptly deposited in a separate bank account in the name and on behalf of the Company or as the parties shall otherwise agree. 4.6 The Company and the Administrator and their designated agents may, on reasonable notice, audit and copy all records and any other information obtained, assembled, maintained or produced by or for the Administrator, or pertaining to the performance of any of the services of the Administrator, under this Agreement (including any claims or financial audits or reviews) at the location of such records during normal business hours. The audited party shall provide a reasonable workspace for such audit, shall cooperate fully with and shall disclose the existence of and produce any and all necessary and reasonable materials requested by such auditors. Each party will bear its own audit expenses. All such information, including audit reports and analyses, will be kept confidential. 4.7 Upon the Company's request, the Administrator shall provide appropriate documentation for verification of TCA payments or other TCA transactions. 4.8 In order to pay TCA benefits, the Administrator shall establish a checking account in the name of the Company or as the parties may otherwise agree. The Company will pay account maintenance charges and any check handling fees associated with this account. 4.9 The Administrator shall produce, using the Company's Federal ID number, for the applicable tax years, while this Agreement is in force, all required tax reporting tapes and printed forms, including but not limited to Forms 1099R, 3 1099MISC, 1099INT, W2-P, 5498. The Administrator shall also remit any federal and/or state income taxes withheld at the designated rate, including special rates prescribed for resident and nonresident aliens, to the appropriate taxing authority at least as frequently as required by the taxing authority. The Administrator will provide the Company with a summary of applicable tax reports. 4.10 Net amounts due the Company or the Administrator in accordance with this Agreement or the Reinsurance Agreement, for any month, shall be promptly settled within thirty (30) days of receipt of notice of any such net amounts due. All moneys due either party under this Agreement shall be offset against each other, dollar for dollar, regardless of any insolvency of either party. 4.11 The Administrator shall establish a file into which all correspondence from or inquiries by any state regulatory agency concerning the Administrator's TCA operations and the responses to such correspondence or inquiries. The Administrator shall keep a file register of such correspondence and shall provide a copy of the file register to the Company on a quarterly basis. Any formal complaint or regulatory inquiry brought by any state regulatory agency shall be sent immediately to the Company. The Company shall be responsible for the final resolution of any consumer complaint. 4.12 The parties shall abide by and conform to all applicable state laws, rules and regulations of the various states in which they do business pursuant to the Agreement, including minimum record keeping requirements regarding origin, maintenance and reproduction of information. 4.13 The Administrator shall defend or handle any legal or regulatory TCA matter in the name and on behalf of the Company, at the Administrator's expense, unless the Company shall assume the direct handling of such matter at its expense, in which case the Administrator shall be relieved of further liability; provided, however, that no such matter shall be settled or compromised adverse to the Company without the Company's prior written consent. The Administrator shall not institute, prosecute or maintain any legal or regulatory proceedings on behalf of the Company, except as may be expressly provided in this Agreement without the prior written consent of the Company. 4.14 Where required by law, the Administrator, at the expense of the Company, shall give written notice to TCA owners of the identity of the Administrator and of the relationship between the Administrator, the Company and the TCA owners. The Administrator shall obtain the Company's approval before the distribution of such notice, which approval shall not be unreasonably withheld. 4 4.15 The Administrator shall not use the Company's name, trademarks, logo or the name of any other affiliated entity in any way or manner not specifically authorized in writing by the Company. Any and all materials bearing the Company's name or proposing to represent the Company shall be approved by the Company prior to publication. All advertising materials will be submitted to the Company for approval prior to use. 4.16 In no event shall the Administrator solicit, negotiate, procure or issue insurance policies or annuity contracts or otherwise act or hold itself out as acting as an agent of the Company for the production or underwriting of insurance. 5. COMPENSATION AND REIMBURSEMENT. 5.1 In recognition of the existence of the Reinsurance Agreement between the parties with respect to the Contracts, it is agreed that the Administrator shall perform the specified Services without additional compensation or reimbursement for its general expenses. 5.2 The Administrator shall account and be reimbursed at cost for all reasonable expenses authorized by this Agreement, out-of-pocket expenses for long distance telephone costs and postage, service charges for special incoming WATS (800) lines that are used exclusively in connection with the Services and such other expenses as the Company shall specifically authorize in advance. 5.3 The Administrator shall reimburse the Company for incorrect payments, with interest at the then current TCA rate. The Company will cooperate with the Administrator if the Administrator, at its own expense, seeks recovery of erroneous payments. 6. INDEPENDENT CONTRACTOR. The Administrator shall be an independent contractor and not an employee of the Company and the Administrator's authority shall be limited as set forth in the provisions of this Agreement. 7. INSURANCE. At the request of the Company, the Administrator shall, at its own expense, maintain: 7.1 Valuable papers and records coverage in an amount equal to provable worth (but not less than $100,000.00) for the protection of files, records, and other property of the Company in the possession of the Administrator; and 7.2 Electronic data processing coverage to include replacement value for equipment (hardware) and data/media (software) and coverage for 5 replacing entered computer data, in an amount equal to provable worth. 8. TERM AND TERMINATION. This Agreement shall terminate on the earlier to occur of (1) the date this Agreement is terminated by either party as provided herein or (2) the date that the TCA liability of the Company is terminated. Either party may terminate this Agreement in the event that the other party is in material breach of the terms or conditions of this Agreement provided that the terminating party has notified the other party of the breach and the other party has not initiated the cure of such breach within thirty (30) days after such notice. This Agreement shall terminate immediately upon the termination of the Reinsurance Agreement. 9. ASSIGNMENT AND BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective personal representatives, successors and permitted assigns. Neither party may assign this Agreement or any rights hereunder without the written consent of the other party; provided, however, that the Administrator may assign this Agreement or delegate duties under this Agreement to an affiliate of the Administrator. 10. SEVERABILITY. In the event that any provision or term of this Agreement shall be held by any court to be invalid, illegal or unenforceable, all of the other terms and provisions shall remain in full force and effect to the extent that their continuance is practicable and consistent with the original intent of the parties. In addition, if provisions are held invalid, illegal or unenforceable, the parties will attempt in good faith to renegotiate the Agreement to carry out its original intent. 11. CHOICE OF LAW. This Agreement shall be construed in accordance with the law of the State of New York without regard to the New York choice of law rules. 12. NOTICE. Any notice required or permitted to be given hereunder shall be deemed to be given if delivered by hand or if mailed by first class or certified mail, postage prepaid, or by postal or a commercial express document delivery service which issues an individual delivery receipt, to the following address: 12.1 If to the Administrator, to Gregg P. Hirsch, Associate General counsel Metropolitan Life Insurance Company 1 MetLife Plaza 27-01 Queens Plaza North Long Island City. NY 11101 12.2 If to the Company, to Richard C, Pearson, Executive Vice President, General Counsel & Secretary 6 MetLife Investors USA Insurance Company 222 Delaware Avenue, Suite 900 PO Box 25130 Wilmington, DE 19899 12.3 Either party may change its address by giving the other party written notice of its new address. 13. COOPERATION. No less than ten (10) days before this Agreement terminates, the Administrator shall provide to the Company an inforce TCA file and all other documents and information necessary for it to assume TCA administration. The Administrator will promptly update this information and forward all TCA files and other documents and information as of the termination date. 14. INDEMNIFICATION. Each party will indemnify and hold the other party, its affiliates, directors, officers, employees and all other persons and entities acting on behalf of or under the control of any of them harmless from and against any and all claims, including reasonable attorneys fees and court costs, that result from any negligent, dishonest, malicious, fraudulent or criminal act or omission or arising out of or related to any incorrect representation, warranty or obligation of this Agreement or any failure or breach of this Agreement by the indemnifying party, its directors, officers, employees, other representatives or any other person or entity acting on behalf of or under the control of any of them. 15. LIMITATION OF LIABILITY. In no event shall either party to this Agreement be liable to the other party for any punitive, indirect or consequential damages arising under this Agreement for any cause whatsoever, whether or not such party has been advised or could have foreseen the possibility of such damages. 16. MERGER AND AMENDMENT. This Agreement constitutes the entire agreement and merges and supersedes all prior oral or written agreements of the parties and there are no understandings between the parties with regard thereto other than as expressed herein. Any waiver of or failure to require adherence to any provision of this Agreement in any instance or series of instances by any party hereto shall not constitute a waiver of such provision in any other instance or constitute a modification of the Agreement. This Agreement may not be amended or modified except by a written instrument signed by authorized representatives of the parties. 17. CONFIDENTIALITY. Each party shall maintain the confidentiality of all information, including legally protected consumer privacy information, that is provided to it by the other party in connection with this Agreement in accordance with applicablr state and federal laws. However, this obligation of confidentiality shall not apply (a) if and to the extent that disclosure is required by applicable law or any court, governmental agency or regulatory authority or by subpoena or discovery request 7 in pending litigation; (b) if the information is or becomes available from public information (other than as a result of prior unauthorized disclosure by the disclosing party); (c) if the information is or was received from a third party not known by the disclosing party to be under a confidentiality obligation with regard to such information; or (d) if the information was in the possession of the disclosing party (having received such information on a non-confidential basis) other than by reason of the services performed pursuant to this Agreement. In the event that either party becomes legally compelled to disclose any secret or confidential information, such party will give prompt written notice of that fact to the other party so that such other party may seek an appropriate remedy to prevent such disclosure; provided, however, that this provision shall not apply to information that is or otherwise becomes available to the public or that was previously available on a non-confidential basis. 18. ARBITRATION. 18.1 All disputes and differences between the parties will be decided by arbitration, regardless of the insolvency of either party, unless the conservator, receiver, liquidator or statutory successor is specifically exempted from an arbitration proceeding by applicable law. 18.2 Either party may initiate arbitration by providing written notification to the other party. Such written notice shall set forth (1) a brief statement of the issue(s); (2) the failure of the parties to reach agreement; and (3) the date of the demand for arbitration. 18.3 The arbitration panel shall consist of three arbitrators. The arbitrators must be impartial and must, either be accredited as an arbitrator by ARIAS-US or be an active or former officer of a life insurance or reinsurance company other than the parties or their affiliates. 18.4 Each party shall select an arbitrator within thirty (30) days from the date of the demand, If either party shall refuse or fail to appoint an arbitrator within the time allowed, the party that has appointed an arbitrator may notify the other party that, if it has not appointed its arbitrator within the following ten (10) days, an arbitrator will be appointed on its behalf. Within thirty (30) days after the appointment of the second arbitrator, the two (2) arbitrators shall select the third arbitrator, who must also be, at that time, accredited by ARIAS-US as an umpire. If the two arbitrators fail to agree on the selection, of the third arbitrator within the time allowed, the Umpire Selection Procedures of ARIAS-US, as then in force, shall be used to select the third arbitrator. 18.5 The arbitrators shall interpret this Agreement as an honorable engagement rather than merely as a legal obligation and shall consider practical 8 business and equitable principles as well as industry custom and practice regarding the applicable insurance and reinsurance business. The arbitrators are released from judicial formalities and shaft not be bound by strict rules of procedure and evidence. 18.6 The arbitrators shall determine all arbitration schedules and procedural rules. Organizational and other meetings will be held in New York, NY. The arbitrators shall decide all matters by majority vote. Judgment may be entered upon the final decision of the arbitrators in any court of competent jurisdiction. 18.7 The decisions of the arbitrators shall be final and binding on both parties. The arbitrators may, at their discretion, award costs and expenses, as they deem appropriate, including but not limited to legal fees and interest. 18.8 Unless the arbitrators shall provide otherwise, each party will be responsible for (a) all fees and expenses of its respective counsel, accountants, actuaries and other representatives in connection with the arbitration and (b) one-half (1/2) of the expenses of the arbitration, including the fees and expenses of the arbitrators. 19. ERRORS AND OMISSIONS. Neither party shall be relieved of liability because of an error or accidental omission with respect to any TCA covered by or Service to be provided under this Agreement, provided that the error or omission is rectified promptly after discovery. 20. SURVIVAL. All provisions of this Agreement, to the extent necessary to carry out the purposes of this Agreement or to ascertain and enforce the parties' rights hereunder, shall survive its termination. 21. REGULATORY APPROVALS. This Agreement shall be put into effect as soon as practicable after all required regulatory approvals have been obtained. 22. BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. 23. COUNTERPARTS. This Agreement may be signed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument. 9 IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the date first above written. METLIFE INVESTORS USA INSURANCE COMPANY By: /s/ Richard C. Pearson ---------------------------- Title: Executive Vice President METROPOLITAN LIFE INSURANCE COMPANY By: /s/ [ILLEGIBLE] ---------------------------- Title: Vice President 10 EX-99.10 4 dex9910.txt CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (DELOITTE & TOUCHE LLP) CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We consent to the use in this Post-Effective Amendment No. 31/Amendment No. 284 to Registration Statement Nos. 333-54464/811-03365 on Form N-4 of our report dated March 24, 2008, relating to the financial statements of each of the Sub-Accounts of MetLife Investors USA Separate Account A and our report dated April 3, 2008, relating to the financial statements of MetLife Investors USA Insurance Company (the "Company") (which report expresses an unqualified opinion and includes an explanatory paragraph referring to the fact that the Company's 2006 and 2005 financial statements have been restated), both appearing in the Statement of Additional Information, which is part of such Registration Statement, and to the reference to us under the heading "Independent Registered Public Accounting Firm" also in the Statement of Additional Information. /s/ Deloitte & Touche LLP Tampa, Florida April 15, 2008 COVER 5 filename5.txt [SUTHERLAND ASBILL & BRENNAN LLP LETTERHEAD] 1275 Pennsylvania Avenue NW Washington, D.C. 20004-2415 202.383.0100 fax 202.637.3593 www.sablaw.com W. THOMAS CONNER DIRECT LINE: 202.383.0590 INTERNET: thomas.conner@sablaw.com April 15, 2008 VIA EDGAR TRANSMISSION Securities and Exchange Commission 100 F Street, N.E. Washington, D.C. 20549 Re: Post-Effective Amendment No. 31 MetLife Investors USA Insurance Company MetLife Investors USA Separate Account A File Nos. 333-54464/811-03365 (Series VA) Commissioners: On behalf of MetLife Investors USA Insurance Company and MetLife Investors USA Separate Account A (the "Account"), we have attached for filing Post-Effective Amendment No. 31 (the "Amendment") to the Account's registration statement on Form N-4 for certain variable annuity contracts issued through the Account. This Amendment is being filed pursuant to paragraph (a)(1) of Rule 485 under the Securities Act of 1933, as amended, to include certain financial information. If you have any questions or comments regarding the Amendment, please call the undersigned at (202) 383-0590 or Lisa Flanagan at (202) 383-0873. Sincerely, /s/ W. Thomas Conner W. Thomas Conner Attachment cc: John M. Richards, Esq. Michele H. Abate, Esq. Lisa Flanagan, Esq. CORRESP 6 filename6.txt MetLife Investors USA Insurance Company MetLife Investors Distribution Company 5 Park Plaza, Suite 1900 Irvine, CA 92614 April 15, 2008 Securities and Exchange Commission 100 F Street, N.E. Washington, D.C. 20549 Re: MetLife Investors USA Insurance Company MetLife Investors USA Separate Account A Registration Statement on Form N-4 File Nos. 333-54464/811-03365 Post-Effective Amendment No. 31 Commissioners: Pursuant to Rule 461 under the Securities Act of 1933, as amended, MetLife Investors USA Insurance Company, the depositor, on behalf of itself and MetLife Investors USA Separate Account A, the registrant, and MetLife Investors Distribution Company, the principal underwriter, hereby request that the effective date of the above-referenced post-effective amendment to the registration statement filed on Form N-4 be accelerated and declared effective on April 28, 2008, or as soon thereafter as is reasonably practicable. METLIFE INVESTORS USA INSURANCE COMPANY (Depositor) By: METLIFE INVESTORS USA SEPARATE ACCOUNT A (Registrant) By: /s/ Richard C. Pearson ----------------------------------------- Richard C. Pearson Vice President, Associate General Counsel and Secretary METLIFE INVESTORS DISTRIBUTION COMPANY (Principal Underwriter) By: /s/ Richard C. Pearson ----------------------------------------- Richard C. Pearson Executive Vice President, General Counsel and Secretary CORRESP 7 filename7.txt [METLIFE LETTERHEAD] MetLife Investors Insurance Company MetLife Investors USA Insurance Company 5 Park Plaza, Suite 1900 Irvine, CA 92614 VIA EDGAR TRANSMISSION ---------------------- April 15, 2008 Ms. Alison White Division of Investment Management Office of Insurance Products U.S. Securities and Exchange Commission 100 F Street, N.E. Washington, D.C. 20549-0506 RE: POST-EFFECTIVE AMENDMENTS TO REGISTRATION STATEMENTS ON FORM N-4 FOR METLIFE INVESTORS INSURANCE COMPANY AND METLIFE INVESTORS VARIABLE ANNUITY ACCOUNT ONE (FILE NOS. 333-51950, 333-50540, 333-54358, 333-52272 AND 333-59864); AND METLIFE INVESTORS USA INSURANCE COMPANY AND METLIFE INVESTORS USA SEPARATE ACCOUNT A (FILE NOS. 333-54464, 333-54470, 333-60174, 333-125753, 333-137369, AND 333-54466) Dear Ms. White: On behalf of MetLife Investors Insurance Company and MetLife Investors USA Insurance Company (the "Companies") and their respective separate accounts, MetLife Investors Variable Annuity Account One and MetLife Investors USA Separate Account A (the "Separate Accounts"), the Companies acknowledge, with respect to each of the above-referenced filings, that: . the Commission is not foreclosed from taking any action with respect to the filings; . the Companies, on behalf of the Separate Accounts, are responsible for the adequacy and accuracy of the disclosure in the filings; and . the Companies, on behalf of the Separate Accounts, may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. If you have any questions or further comments, please call the undersigned at (949) 223-5680 or Tom Conner at (202) 383-0590. Ms. Alison White April 15, 2008 Page 2 of 2 Sincerely, /s/ Richard C. Pearson ----------------------------- Richard C. Pearson Vice President, Associate General Counsel and Secretary cc: W. Thomas Conner, Esq. Lisa Flanagan, Esq. Michele H. Abate, Esq. John M. Richards, Esq.