485APOS 1 d255255d485apos.txt MLI USA SERIES C POST-EFFECTIVE AMENDMENT NO. 2 As filed with the Securities and Exchange Commission on December 12, 2011 File Nos. 333-176668 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. 2 [x] and REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. 421 [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) Michael K. Farrell President MetLife Investors USA Insurance Company c/o 10 Park Avenue Morristown, NJ 07962 (973) 355-4000 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: Interest in a separate account under individual flexible premium deferred variable annuity contracts. This registration statement incorporates herein by reference the prospectus dated October 7, 2011 (the "Prospectus") and the two supplements dated October 7, 2011 to the Prospectus (File Nos. 333-176668/811-03365) filed on October 11, 2011 pursuant to Rule 497. This registration statement incorporates herein by reference the supplement dated October 24, 2011 to the Prospectus (File Nos. 333-176668/811-03665) filed on October 21, 2011 pursuant to Rule 497. This registration statement incorporates herein by reference the supplement dated December 7, 2011 to the supplement dated October 24, 2011 to the Prospectus (File Nos. 333-176668/811-03665) filed on December 7, 2011 pursuant to Rule 497. This registration statement incorporates herein by reference the supplement dated December 12, 2011 to the Prospectus (File Nos. 333-176668/811-03665) filed on December 9, 2011 pursuant to Rule 497. METLIFE INVESTORS USA INSURANCE COMPANY METLIFE INVESTORS USA SEPARATE ACCOUNT A SUPPLEMENT DATED JANUARY 3, 2012 TO THE PROSPECTUS DATED OCTOBER 7, 2011 (AS SUPPLEMENTED) This supplement describes new versions of the optional GMIB Max and EDB Max riders that may be elected with the Series C (offered on and after October 7, 2011) variable annuity contract issued by MetLife Investors USA Insurance Company ("we," "us," or "our"). The new versions are called GMIB Max III and EDB Max III. If approved in your state, GMIB Max III and EDB Max III may be elected with contracts issued based on applications and necessary information that we receive in good order at our MetLife Annuity Service Center after the close of the New York Stock Exchange on December 30, 2011. GMIB Max III and EDB Max III differ from the corresponding riders currently described in the October 7, 2011 prospectus (GMIB Max II and EDB Max II, respectively) only in that the amount of the annual increase rate and the annual withdrawal amount percentage under GMIB Max III and EDB Max III is 5% instead of 5.5%, and the 5.5% enhanced payout rate available under GMIB Max II is not available under GMIB Max III. Please note that the EDB Max III rider may only be elected if you have elected the GMIB Max III rider, and that in states where the GMIB Max III and EDB Max III riders are available for purchase, the GMIB Max II and EDB Max II riders are no longer available for purchase. This supplement 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. 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 SUPP-USC0112 STATEMENT OF ADDITIONAL INFORMATION INDIVIDUAL VARIABLE DEFERRED ANNUITY CONTRACT ISSUED BY METLIFE INVESTORS USA SEPARATE ACCOUNT A AND METLIFE INVESTORS USA INSURANCE COMPANY SERIES C (OFFERED ON AND AFTER OCTOBER 7, 2011) THIS IS NOT A PROSPECTUS. THIS STATEMENT OF ADDITIONAL INFORMATION SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS DATED OCTOBER 7, 2011, 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 OCTOBER 7, 2011, AS REVISED JANUARY 3, 2012. SAI-0112USAC2 TABLE OF CONTENTS PAGE COMPANY................................. 2 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM.................................... 2 CUSTODIAN............................... 2 DISTRIBUTION............................ 2 CALCULATION OF PERFORMANCE INFORMATION.. 4 Total Return....................... 4 Historical Unit Values............. 5 Reporting Agencies................. 5 ANNUITY PROVISIONS...................... 5 Variable Annuity................... 5 Fixed Annuity...................... 6 Mortality and Expense Guarantee.... 7 Legal or Regulatory Restrictions on Transactions.................... 7 TAX STATUS OF THE CONTRACTS............. 7 FINANCIAL STATEMENTS.................... 9
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 January 8, 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. INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The financial statements and financial highlights comprising 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. Such financial statements and financial highlights have been so included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The consolidated 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 changes in the Company's method of accounting for the recognition and presentation of other-than-temporary impairment losses for certain investments as required by accounting guidance adopted on April 1, 2009 and its method of accounting for certain assets and liabilities to a fair value measurement approach as required by accounting guidance adopted on January 1, 2008). Such financial statements have been so included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The principal business address of Deloitte & Touche LLP is Two World Financial Center, New York, New York 10281-1414. 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 2 Separate Account in the following amounts during the periods indicated:
Aggregate Amount of Commissions Retained Aggregate Amount of by Distributor After Commissions Paid to Payments to Selling Fiscal year Distributor Firms ------------- --------------------- --------------------- 2010 $619,659,806 $0 2009 $444,461,790 $0 2008 $357,776,663 $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 2010 ranged from $531 to $17,875,819*. The amount of commissions paid to selected selling firms during 2010 ranged from $75 to $55,116,180. The amount of total compensation (includes non-commission as well as commission amounts) paid to selected selling firms during 2010 ranged from $75 to $72,992,000*. * For purposes of calculating this range, the additional compensation (non-commission) amounts received by a selling firm includes additional compensation received by the firm for the sale of insurance products issued by our affiliates First MetLife Investors Insurance Company, MetLife Investors Insurance Company and MetLife Insurance Company of Connecticut. In view of the fact that the contracts are newly offered, none of the amounts described herein were paid in connection with the contracts. The following list sets forth the names of selling firms that received additional compensation in 2010 in connection with the sale of our variable annuity contracts, variable life policies and other insurance products. The selling firms are listed in alphabetical order. Ameriprise Financial Services, Inc. Associated Securities Corp. AXA Advisors LLC Bancwest Investment Services, Inc. Capital Investment Brokerage, Inc. Capital Investments Group, Inc. CCO Investment Services Corp. Centaurus Financial, Inc. Citigroup Global Markets, Inc. Commonwealth Financial Network Compass Brokerage, Inc. CUSO Financial Services, L.P. Edward D. Jones & Co., L.P. Essex National Securities, Inc. FSC Securities Corporation First Allied Securities, Inc. First Tennessee Brokerage, Inc. Founders Financial Securities, LLC GunnAllen Financial, Inc. H. D. Vest Investment Securities, Inc. Infinex Investments, Inc. InterSecurities, Inc. Invest Financial Corp. Investment Centers of America, Inc. Investment Professionals, Inc. Investors Captial Corp. Janney Montgomery Scott, LLC J.J.B. Hilliard, W.L. Lyons, LLC J. P. Turner & Company Key Investment Services LLC Lincoln Financial Advisors, Corp. Lincoln Financial Securities Corporation Lincoln Investment Planning, Inc. LPL Financial LLC Merrill Lynch, Inc. Merrill Lynch Insurance Group Morgan Keegan & Company, Inc. Morgan Stanley & Co., Inc. M&T Securities Inc. National Planning Holdings Corporation National Securities Corp. NEXT Financial Group NFP Securities, Inc. Oppenheimer & Co., Inc. Pacific West Securities, Inc. Planning Corporation of America 3 PNC Investments LLC Primerica ProEquities, Inc. Raymond James Financial Services, Inc. RBC Wealth Management Robert W. Baird & Co. Incorporated Royal Alliance Associates, Inc. Sammons Securities Company, LLC Securities America, Inc. Sigma Financial Corporation Signator Investors, Inc. SII Investments, Inc. Sorento Pacific Financial, LLC StagePoint Financial, Inc. Stifel Nicolaus & Company Transamerica Financial Advisors, Inc. Tower Square Securities, Inc. UBS Financial Services, Inc. U.S. Bancorp Investments, Inc. United Planners Financial Services of America UVEST Financial Services Group, Inc. Valmark Securities, Inc. Wall Street Financial Group, Inc. Walnut Street Securities, Inc. Waterstone Financial Group, Inc. Wells Fargo Advisers, LLC Wells Fargo Advisers Financial Network, LLC Wells Fargo Investments, LLC Wescom Financial Services, LLC Woodbury Financial Services, Inc. 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. 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, Enhanced Death Benefit rider charge, or GMIB rider charge. For purposes of calculating performance information, the Enhanced Death Benefit rider charge is 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 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 any applicable Enhanced Death Benefit or GMIB 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 4 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 (the account value, less any applicable premium taxes, account fee, and any prorated rider charge) 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, the annuitant's sex (where permitted by law), and the appropriate variable annuity option table. Your annuity rates will not be less than those guaranteed in your contract at the time of purchase for the assumed investment return and annuity option elected. 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 5 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 annuity option to the variable annuity option; 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 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 6 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, the annuitant's age, the annuitant's sex (where permitted by law), and the appropriate annuity option table. Your annuity rates will not be less than those guaranteed in your contract at the time of purchase. 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 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 7 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 required minimum distribution ("RMD") 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. For RMDs after the death of the contract owner, the five-year rule is applied without regard to calendar year 2009. For instance, for a contract owner who died in 2007, the five-year period would end in 2013 instead of 2012. The RMD rules are complex, so consult with your tax adviser because the application of these rules to your particular circumstances may have been impacted by the 2009 RMD waiver. 8 FINANCIAL STATEMENTS The financial statements and financial highlights comprising each of the Sub-Accounts of the Separate Account and the consolidated financial statements of 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. 9 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Contract Owners of MetLife Investors USA Separate Account A and 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 Note 2 as of December 31, 2010, the related statements of operations for the respective stated period in the year then ended, the statements of changes in net assets for the respective stated periods in the two years then ended, and the financial highlights in Note 8 for the respective stated periods in the five years then ended. These financial statements and financial highlights are the responsibility of the Separate Account's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with 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 and financial highlights 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 investments owned as of December 31, 2010, by correspondence with the custodian or mutual fund companies. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Sub-Accounts constituting the Separate Account of the Company as of December 31, 2010, the results of their operations for the respective stated period in the year then ended, the changes in their net assets for the respective stated periods in the two years then ended, and the financial highlights for the respective stated periods in the five years then ended, in conformity with accounting principles generally accepted in the United States of America. /s/ DELOITTE & TOUCHE LLP Certified Public Accountants Tampa, Florida March 31, 2011 This page is intentionally left blank. METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES DECEMBER 31, 2010 MIST LORD ABBETT MIST LORD ABBETT MIST MORGAN STANLEY 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 $ 558,423,625 $ 267,920,774 $ 89,015,754 $ 108,323,433 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company 22 2 -- -- ----------------- ---------------- ------------------- ---------------- Total Assets 558,423,647 267,920,776 89,015,754 108,323,433 ----------------- ---------------- ------------------- ---------------- LIABILITIES: Accrued fees 41 81 82 53 Due to MetLife Investors USA Insurance Company -- -- -- 1 ----------------- ---------------- ------------------- ---------------- Total Liabilities 41 81 82 54 ----------------- ---------------- ------------------- ---------------- NET ASSETS $ 558,423,606 $ 267,920,695 $ 89,015,672 $ 108,323,379 ================= ================ =================== ================ CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 558,188,238 $ 267,641,542 $ 89,015,672 $ 108,323,379 Net assets from contracts in payout 235,368 279,153 -- -- ----------------- ---------------- ------------------- ---------------- Total Net Assets $ 558,423,606 $ 267,920,695 $ 89,015,672 $ 108,323,379 ================= ================ =================== ================
The accompanying notes are an integral part of these financial statements. 1 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2010 MIST HARRIS MIST LAZARD MIST INVESCO SMALL OAKMARK MIST THIRD AVENUE MID CAP CAP GROWTH INTERNATIONAL SMALL CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------- ------------------ ------------- ----------------- ASSETS: Investments at fair value $ 135,205,459 $ 186,610,643 $ 459,739,266 $ 327,520,528 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company 4 7 4 -- ------------- ------------------ ------------- ----------------- Total Assets 135,205,463 186,610,650 459,739,270 327,520,528 ------------- ------------------ ------------- ----------------- LIABILITIES: Accrued fees 57 92 73 51 Due to MetLife Investors USA Insurance Company -- -- -- -- ------------- ------------------ ------------- ----------------- Total Liabilities 57 92 73 51 ------------- ------------------ ------------- ----------------- NET ASSETS $ 135,205,406 $ 186,610,558 $ 459,739,197 $ 327,520,477 ============= ================== ============= ================= CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 135,158,899 $ 186,555,625 $ 459,595,735 $ 327,379,475 Net assets from contracts in payout 46,507 54,933 143,462 141,002 ------------- ------------------ ------------- ----------------- Total Net Assets $ 135,205,406 $ 186,610,558 $ 459,739,197 $ 327,520,477 ============= ================== ============= =================
The accompanying notes are an integral part of these financial statements. 2 MIST LEGG MASON MIST PIMCO MIST OPPENHEIMER CLEARBRIDGE MIST PIMCO MIST RCM INFLATION MIST T. ROWE PRICE CAPITAL APPRECIATION AGGRESSIVE GROWTH TOTAL RETURN TECHNOLOGY PROTECTED BOND MID CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ----------------- --------------- ------------- -------------- ------------------ $ 196,389,807 $ 102,505,804 $ 1,761,602,512 $ 109,729,058 $ 711,162,968 $ 414,850,160 -- -- -- -- -- -- -- -- -- -- -- 1 -------------------- ----------------- --------------- ------------- -------------- ------------------ 196,389,807 102,505,804 1,761,602,512 109,729,058 711,162,968 414,850,161 -------------------- ----------------- --------------- ------------- -------------- ------------------ 52 44 45 35 93 30 -- 2 3 7 1 -- -------------------- ----------------- --------------- ------------- -------------- ------------------ 52 46 48 42 94 30 -------------------- ----------------- --------------- ------------- -------------- ------------------ $ 196,389,755 $ 102,505,758 $ 1,761,602,464 $ 109,729,016 $ 711,162,874 $ 414,850,131 ==================== ================= =============== ============= ============== ================== $ 196,159,382 $ 102,487,184 $ 1,761,297,602 $ 109,724,913 $ 710,980,958 $ 414,814,615 230,373 18,574 304,862 4,103 181,916 35,516 -------------------- ----------------- --------------- ------------- -------------- ------------------ $ 196,389,755 $ 102,505,758 $ 1,761,602,464 $ 109,729,016 $ 711,162,874 $ 414,850,131 ==================== ================= =============== ============= ============== ==================
The accompanying notes are an integral part of these financial statements. 3 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2010 MIST MFS RESEARCH MIST CLARION MIST TURNER MIST GOLDMAN SACHS INTERNATIONAL GLOBAL REAL ESTATE MID CAP GROWTH MID CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------- ------------------ -------------- ------------------ ASSETS: Investments at fair value $ 318,521,682 $ 139,330,818 $ 83,688,790 $ 112,015,715 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company 6 4 4 3 ----------------- ------------------ -------------- ------------------ Total Assets 318,521,688 139,330,822 83,688,794 112,015,718 ----------------- ------------------ -------------- ------------------ LIABILITIES: Accrued fees 62 68 53 54 Due to MetLife Investors USA Insurance Company -- -- -- -- ----------------- ------------------ -------------- ------------------ Total Liabilities 62 68 53 54 ----------------- ------------------ -------------- ------------------ NET ASSETS $ 318,521,626 $ 139,330,754 $ 83,688,741 $ 112,015,664 ================= ================== ============== ================== CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 318,426,193 $ 139,303,034 $ 83,671,348 $ 111,981,964 Net assets from contracts in payout 95,433 27,720 17,393 33,700 ----------------- ------------------ -------------- ------------------ Total Net Assets $ 318,521,626 $ 139,330,754 $ 83,688,741 $ 112,015,664 ================= ================== ============== ==================
The accompanying notes are an integral part of these financial statements. 4 MIST METLIFE MIST METLIFE MIST METLIFE MIST METLIFE MIST METLIFE MIST VAN KAMPEN DEFENSIVE STRATEGY MODERATE STRATEGY BALANCED STRATEGY GROWTH STRATEGY AGGRESSIVE STRATEGY COMSTOCK SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------ ----------------- ----------------- --------------- ------------------- --------------- $ 2,003,850,540 $ 3,094,289,696 $ 6,437,293,469 $ 5,512,372,237 $ 522,967,859 $ 230,561,399 -- -- -- -- -- -- 3 2 5 7 4 1 ------------------ ----------------- ----------------- --------------- ------------------- --------------- 2,003,850,543 3,094,289,698 6,437,293,474 5,512,372,244 522,967,863 230,561,400 ------------------ ----------------- ----------------- --------------- ------------------- --------------- 44 39 35 38 26 82 -- -- -- -- -- -- ------------------ ----------------- ----------------- --------------- ------------------- --------------- 44 39 35 38 26 82 ------------------ ----------------- ----------------- --------------- ------------------- --------------- $ 2,003,850,499 $ 3,094,289,659 $ 6,437,293,439 $ 5,512,372,206 $ 522,967,837 $ 230,561,318 ================== ================= ================= =============== =================== =============== $ 2,003,568,498 $ 3,094,010,082 $ 6,435,936,935 $ 5,512,255,935 $ 522,897,689 $ 230,536,939 282,001 279,577 1,356,504 116,271 70,148 24,379 ------------------ ----------------- ----------------- --------------- ------------------- --------------- $ 2,003,850,499 $ 3,094,289,659 $ 6,437,293,439 $ 5,512,372,206 $ 522,967,837 $ 230,561,318 ================== ================= ================= =============== =================== ===============
The accompanying notes are an integral part of these financial statements. 5 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2010 MIST LEGG MASON MIST MFS EMERGING MIST LOOMIS SAYLES VALUE EQUITY MARKETS EQUITY GLOBAL MARKETS MIST JANUS FORTY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------- ----------------- ------------------ ---------------- ASSETS: Investments at fair value $ 98,632,601 $ 365,169,280 $ 137,171,881 $ 53,356,815 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company -- -- 2 2 --------------- ----------------- ------------------ ---------------- Total Assets 98,632,601 365,169,280 137,171,883 53,356,817 --------------- ----------------- ------------------ ---------------- LIABILITIES: Accrued fees 62 24 38 131 Due to MetLife Investors USA Insurance Company -- 1 -- -- --------------- ----------------- ------------------ ---------------- Total Liabilities 62 25 38 131 --------------- ----------------- ------------------ ---------------- NET ASSETS $ 98,632,539 $ 365,169,255 $ 137,171,845 $ 53,356,686 =============== ================= ================== ================ CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 98,632,539 $ 365,169,255 $ 137,171,845 $ 53,356,686 Net assets from contracts in payout -- -- -- -- --------------- ----------------- ------------------ ---------------- Total Net Assets $ 98,632,539 $ 365,169,255 $ 137,171,845 $ 53,356,686 =============== ================= ================== ================
The accompanying notes are an integral part of these financial statements. 6 MIST DREMAN MIST PIONEER MIST BLACKROCK MIST BLACKROCK MIST RAINIER SMALL CAP VALUE MIST PIONEER FUND STRATEGIC INCOME LARGE CAP CORE HIGH YIELD LARGE CAP EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------- ----------------- ---------------- -------------- -------------- ---------------- $ 24,427,109 $ 112,914,817 $ 419,601,978 $ 9,613,686 $ 182,367,378 $ 45,894,129 -- -- -- -- -- -- -- -- -- -- -- -- --------------- ----------------- ---------------- -------------- -------------- ---------------- 24,427,109 112,914,817 419,601,978 9,613,686 182,367,378 45,894,129 --------------- ----------------- ---------------- -------------- -------------- ---------------- 130 148 111 94 68 35 5 3 -- 4 7 3 --------------- ----------------- ---------------- -------------- -------------- ---------------- 135 151 111 98 75 38 --------------- ----------------- ---------------- -------------- -------------- ---------------- $ 24,426,974 $ 112,914,666 $ 419,601,867 $ 9,613,588 $ 182,367,303 $ 45,894,091 =============== ================= ================ ============== ============== ================ $ 24,426,974 $ 112,914,666 $ 419,601,867 $ 9,613,588 $ 182,360,822 $ 45,894,091 -- -- -- -- 6,481 -- --------------- ----------------- ---------------- -------------- -------------- ---------------- $ 24,426,974 $ 112,914,666 $ 419,601,867 $ 9,613,588 $ 182,367,303 $ 45,894,091 =============== ================= ================ ============== ============== ================
The accompanying notes are an integral part of these financial statements. 7 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2010 MIST AMERICAN MIST AMERICAN FUNDS BALANCED MIST AMERICAN MIST AMERICAN FUNDS GROWTH ALLOCATION FUNDS BOND FUNDS GROWTH ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------- ------------- ------------- --------------- ASSETS: Investments at fair value $ 2,478,289,326 $ 274,791,820 $ 480,253,574 $ 1,454,861,055 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company -- -- -- -- --------------- ------------- ------------- --------------- Total Assets 2,478,289,326 274,791,820 480,253,574 1,454,861,055 --------------- ------------- ------------- --------------- LIABILITIES: Accrued fees 2 27 46 37 Due to MetLife Investors USA Insurance Company -- 1 3 2 --------------- ------------- ------------- --------------- Total Liabilities 2 28 49 39 --------------- ------------- ------------- --------------- NET ASSETS $ 2,478,289,324 $ 274,791,792 $ 480,253,525 $ 1,454,861,016 =============== ============= ============= =============== CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 2,478,289,324 $ 274,791,792 $ 480,253,525 $ 1,454,791,925 Net assets from contracts in payout -- -- -- 69,091 --------------- ------------- ------------- --------------- Total Net Assets $ 2,478,289,324 $ 274,791,792 $ 480,253,525 $ 1,454,861,016 =============== ============= ============= ===============
The accompanying notes are an integral part of these financial statements. 8 MIST AMERICAN MIST MET/FRANKLIN MIST AMERICAN FUNDS MODERATE MIST MET/FRANKLIN TEMPLETON FOUNDING MIST SSGA MIST SSGA GROWTH FUNDS INTERNATIONAL ALLOCATION MUTUAL SHARES STRATEGY GROWTH ETF AND INCOME ETF SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- --------------- ----------------- ------------------ ------------- ---------------- $ 301,922,176 $ 1,452,175,029 $ 121,115,890 $ 571,218,195 $ 325,453,383 $ 995,772,765 -- -- -- -- -- -- -- -- -- -- -- -- ------------------- --------------- ----------------- ------------------ ------------- ---------------- 301,922,176 1,452,175,029 121,115,890 571,218,195 325,453,383 995,772,765 ------------------- --------------- ----------------- ------------------ ------------- ---------------- 23 26 53 45 35 13 4 -- 2 3 2 -- ------------------- --------------- ----------------- ------------------ ------------- ---------------- 27 26 55 48 37 13 ------------------- --------------- ----------------- ------------------ ------------- ---------------- $ 301,922,149 $ 1,452,175,003 $ 121,115,835 $ 571,218,147 $ 325,453,346 $ 995,772,752 =================== =============== ================= ================== ============= ================ $ 301,922,149 $ 1,452,125,720 $ 121,115,835 $ 571,201,870 $ 325,453,346 $ 995,772,752 -- 49,283 -- 16,277 -- -- ------------------- --------------- ----------------- ------------------ ------------- ---------------- $ 301,922,149 $ 1,452,175,003 $ 121,115,835 $ 571,218,147 $ 325,453,346 $ 995,772,752 =================== =============== ================= ================== ============= ================
The accompanying notes are an integral part of these financial statements. 9 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2010 MIST MIST MET/TEMPLETON MIST MET/TEMPLETON MET/EATON VANCE INVESCO V.I. INTERNATIONAL BOND GROWTH FLOATING RATE CORE EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------ ------------------ --------------- ------------ ASSETS: Investments at fair value $ 36,302,482 $ 7,380,502 $ 16,334,410 $ 393,935 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company -- -- -- -- ------------------ ------------------ --------------- ------------ Total Assets 36,302,482 7,380,502 16,334,410 393,935 ------------------ ------------------ --------------- ------------ LIABILITIES: Accrued fees 55 92 91 -- Due to MetLife Investors USA Insurance Company 2 5 4 2 ------------------ ------------------ --------------- ------------ Total Liabilities 57 97 95 2 ------------------ ------------------ --------------- ------------ NET ASSETS $ 36,302,425 $ 7,380,405 $ 16,334,315 $ 393,933 ================== ================== =============== ============ CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 36,302,425 $ 7,380,405 $ 16,334,315 $ 393,933 Net assets from contracts in payout -- -- -- -- ------------------ ------------------ --------------- ------------ Total Net Assets $ 36,302,425 $ 7,380,405 $ 16,334,315 $ 393,933 ================== ================== =============== ============
The accompanying notes are an integral part of these financial statements. 10 INVESCO V.I. CAPITAL INVESCO V.I. INVESCO V.I. BASIC INVESCO V.I. GLOBAL INVESCO V.I. INVESCO V.I. APPRECIATION INTERNATIONAL GROWTH BALANCED REAL ESTATE CAPITAL GROWTH GROWTH AND INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- ------------------ ------------------- -------------- ----------------- $ 142,669 $ 111,888,074 $ 256,612 $ 9,028,155 $ 130,770 $ 160,437,290 -- -- -- -- -- -- -- -- -- -- -- -- -------------------- -------------------- ------------------ ------------------- -------------- ----------------- 142,669 111,888,074 256,612 9,028,155 130,770 160,437,290 -------------------- -------------------- ------------------ ------------------- -------------- ----------------- -- 1 -- 18 5 7 4 8 4 3 1 5 -------------------- -------------------- ------------------ ------------------- -------------- ----------------- 4 9 4 21 6 12 -------------------- -------------------- ------------------ ------------------- -------------- ----------------- $ 142,665 $ 111,888,065 $ 256,608 $ 9,028,134 $ 130,764 $ 160,437,278 ==================== ==================== ================== =================== ============== ================= $ 142,665 $ 111,888,065 $ 256,608 $ 9,028,134 $ 130,764 $ 160,437,278 -- -- -- -- -- -- -------------------- -------------------- ------------------ ------------------- -------------- ----------------- $ 142,665 $ 111,888,065 $ 256,608 $ 9,028,134 $ 130,764 $ 160,437,278 ==================== ==================== ================== =================== ============== =================
The accompanying notes are an integral part of these financial statements. 11 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2010 INVESCO V.I. INVESCO V.I. MFS VIT MFS VIT EQUITY AND INCOME U.S. MID CAP VALUE RESEARCH INVESTORS TRUST SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------- ------------------ ----------- --------------- ASSETS: Investments at fair value $ 345,124,827 $ 28,139,059 $ 112,397 $ 43,412 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company -- -- -- -- ----------------- ------------------ ----------- --------------- Total Assets 345,124,827 28,139,059 112,397 43,412 ----------------- ------------------ ----------- --------------- LIABILITIES: Accrued fees -- 12 4 5 Due to MetLife Investors USA Insurance Company 19 3 5 3 ----------------- ------------------ ----------- --------------- Total Liabilities 19 15 9 8 ----------------- ------------------ ----------- --------------- NET ASSETS $ 345,124,808 $ 28,139,044 $ 112,388 $ 43,404 ================= ================== =========== =============== CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 345,124,808 $ 28,139,044 $ 112,388 $ 43,404 Net assets from contracts in payout -- -- -- -- ----------------- ------------------ ----------- --------------- Total Net Assets $ 345,124,808 $ 28,139,044 $ 112,388 $ 43,404 ================= ================== =========== ===============
The accompanying notes are an integral part of these financial statements. 12 OPPENHEIMER VA OPPENHEIMER VA MFS VIT OPPENHEIMER VA OPPENHEIMER VA GLOBAL STRATEGIC MAIN STREET OPPENHEIMER VA NEW DISCOVERY MAIN STREET CORE BOND INCOME SMALL CAP MONEY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------- -------------- -------------- ---------------- -------------- -------------- $ 46,875 $ 119,258 $ 9,895 $ 4,107 $ 70,331,798 $ 116,314 -- -- -- -- -- -- -- -- -- -- -- -- ------------- -------------- -------------- ---------------- -------------- -------------- 46,875 119,258 9,895 4,107 70,331,798 116,314 ------------- -------------- -------------- ---------------- -------------- -------------- 7 5 7 4 10 4 3 4 3 6 11 -- ------------- -------------- -------------- ---------------- -------------- -------------- 10 9 10 10 21 4 ------------- -------------- -------------- ---------------- -------------- -------------- $ 46,865 $ 119,249 $ 9,885 $ 4,097 $ 70,331,777 $ 116,310 ============= ============== ============== ================ ============== ============== $ 46,865 $ 119,249 $ 9,885 $ 4,097 $ 70,331,777 $ 116,310 -- -- -- -- -- -- ------------- -------------- -------------- ---------------- -------------- -------------- $ 46,865 $ 119,249 $ 9,885 $ 4,097 $ 70,331,777 $ 116,310 ============= ============== ============== ================ ============== ==============
The accompanying notes are an integral part of these financial statements. 13 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2010 FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP ASSET MANAGER GROWTH CONTRAFUND OVERSEAS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------- ------------- ------------- ------------ ASSETS: Investments at fair value $ 101,784,904 $ 147,385,507 $ 379,741,654 $ 6,266,281 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company -- 5 -- -- ------------- ------------- ------------- ------------ Total Assets 101,784,904 147,385,512 379,741,654 6,266,281 ------------- ------------- ------------- ------------ LIABILITIES: Accrued fees 10 8 58 -- Due to MetLife Investors USA Insurance Company 5 -- -- 5 ------------- ------------- ------------- ------------ Total Liabilities 15 8 58 5 ------------- ------------- ------------- ------------ NET ASSETS $ 101,784,889 $ 147,385,504 $ 379,741,596 $ 6,266,276 ============= ============= ============= ============ CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 101,784,889 $ 147,385,504 $ 379,741,596 $ 6,266,276 Net assets from contracts in payout -- -- -- -- ------------- ------------- ------------- ------------ Total Net Assets $ 101,784,889 $ 147,385,504 $ 379,741,596 $ 6,266,276 ============= ============= ============= ============
The accompanying notes are an integral part of these financial statements. 14 FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP DWS EQUITY-INCOME INDEX 500 MONEY MARKET MID CAP FUNDSMANAGER 60% INTERNATIONAL SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------- ------------ ------------ ------------- ---------------- ------------- $ 6,350,751 $ 68,501,218 $ 67,343,848 $ 187,246,536 $ 1,176,598,694 $ 20,962,771 -- -- -- -- -- -- -- -- -- 9 -- -- ------------- ------------ ------------ ------------- ---------------- ------------- 6,350,751 68,501,218 67,343,848 187,246,545 1,176,598,694 20,962,771 ------------- ------------ ------------ ------------- ---------------- ------------- -- 12 2 8 -- -- -- 4 13 -- 7 8 ------------- ------------ ------------ ------------- ---------------- ------------- -- 16 15 8 7 8 ------------- ------------ ------------ ------------- ---------------- ------------- $ 6,350,751 $ 68,501,202 $ 67,343,833 $ 187,246,537 $ 1,176,598,687 $ 20,962,763 ============= ============ ============ ============= ================ ============= $ 6,350,751 $ 68,501,202 $ 67,343,833 $ 187,246,537 $ 1,176,598,687 $ 20,962,763 -- -- -- -- -- -- ------------- ------------ ------------ ------------- ---------------- ------------- $ 6,350,751 $ 68,501,202 $ 67,343,833 $ 187,246,537 $ 1,176,598,687 $ 20,962,763 ============= ============ ============ ============= ================ =============
The accompanying notes are an integral part of these financial statements. 15 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2010 MSF FI MSF RUSSELL MSF ARTIO MSF METLIFE VALUE LEADERS 2000 INDEX INTERNATIONAL STOCK STOCK INDEX SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------- ------------ ------------------- ------------- ASSETS: Investments at fair value $ 5,267,618 $ 46,792,859 $ 3,979,725 $ 343,187,104 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company 9 -- -- 15 ------------- ------------ ------------------- ------------- Total Assets 5,267,627 46,792,859 3,979,725 343,187,119 ------------- ------------ ------------------- ------------- LIABILITIES: Accrued fees 97 90 19 43 Due to MetLife Investors USA Insurance Company -- 6 5 -- ------------- ------------ ------------------- ------------- Total Liabilities 97 96 24 43 ------------- ------------ ------------------- ------------- NET ASSETS $ 5,267,530 $ 46,792,763 $ 3,979,701 $ 343,187,076 ============= ============ =================== ============= CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 5,267,530 $ 46,792,763 $ 3,979,701 $ 343,072,630 Net assets from contracts in payout -- -- -- 114,446 ------------- ------------ ------------------- ------------- Total Net Assets $ 5,267,530 $ 46,792,763 $ 3,979,701 $ 343,187,076 ============= ============ =================== =============
The accompanying notes are an integral part of these financial statements. 16 MSF BLACKROCK MSF BARCLAYS LEGACY LARGE CAP MSF NEUBERGER MSF BLACKROCK MSF BLACKROCK CAPITAL AGGREGATE GROWTH BERMAN GENESIS BOND INCOME LARGE CAP VALUE BOND INDEX MSF MFS VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- -------------- ------------- --------------- ----------------- ------------- $ 9,563,318 $ 9,730,062 $ 47,336,223 $ 2,872,598 $ 86,675,015 $ 45,430,410 -- -- -- -- -- -- -- -- -- -- -- -- ---------------- -------------- ------------- --------------- ----------------- ------------- 9,563,318 9,730,062 47,336,223 2,872,598 86,675,015 45,430,410 ---------------- -------------- ------------- --------------- ----------------- ------------- 160 8 76 10 44 121 3 5 2 3 7 8 ---------------- -------------- ------------- --------------- ----------------- ------------- 163 13 78 13 51 129 ---------------- -------------- ------------- --------------- ----------------- ------------- $ 9,563,155 $ 9,730,049 $ 47,336,145 $ 2,872,585 $ 86,674,964 $ 45,430,281 ================ ============== ============= =============== ================= ============= $ 9,563,155 $ 9,730,049 $ 47,330,231 $ 2,872,585 $ 86,674,964 $ 45,430,281 -- -- 5,914 -- -- -- ---------------- -------------- ------------- --------------- ----------------- ------------- $ 9,563,155 $ 9,730,049 $ 47,336,145 $ 2,872,585 $ 86,674,964 $ 45,430,281 ================ ============== ============= =============== ================= =============
The accompanying notes are an integral part of these financial statements. 17 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2010 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 $ 58,834,738 $ 40,676,843 $ 59,472,998 $ 606,785,233 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company -- 13 -- 18 ------------------ ------------ ------------------- ------------- Total Assets 58,834,738 40,676,856 59,472,998 606,785,251 ------------------ ------------ ------------------- ------------- LIABILITIES: Accrued fees 45 147 57 51 Due to MetLife Investors USA Insurance Company 4 -- 6 -- ------------------ ------------ ------------------- ------------- Total Liabilities 49 147 63 51 ------------------ ------------ ------------------- ------------- NET ASSETS $ 58,834,689 $ 40,676,709 $ 59,472,935 $ 606,785,200 ================== ============ =================== ============= CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 58,834,689 $ 40,676,709 $ 59,472,935 $ 606,499,383 Net assets from contracts in payout -- -- -- 285,817 ------------------ ------------ ------------------- ------------- Total Net Assets $ 58,834,689 $ 40,676,709 $ 59,472,935 $ 606,785,200 ================== ============ =================== =============
The accompanying notes are an integral part of these financial statements. 18 MSF WESTERN ASSET MSF MET/ARTISAN MSF JENNISON MSF BLACKROCK MSF T. ROWE PRICE MANAGEMENT MSF OPPENHEIMER MID CAP VALUE GROWTH MONEY MARKET SMALL CAP GROWTH U.S. GOVERNMENT GLOBAL EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------- ------------- ------------- ----------------- ----------------- --------------- $ 213,857,247 $ 243,817,724 $ 553,885,965 $ 8,285,684 $ 214,907,988 $ 11,272,181 -- -- 9 -- -- -- 2 -- 29 -- 3 -- --------------- ------------- ------------- ----------------- ----------------- --------------- 213,857,249 243,817,724 553,886,003 8,285,684 214,907,991 11,272,181 --------------- ------------- ------------- ----------------- ----------------- --------------- 43 67 198 28 73 60 -- -- -- 8 -- 2 --------------- ------------- ------------- ----------------- ----------------- --------------- 43 67 198 36 73 62 --------------- ------------- ------------- ----------------- ----------------- --------------- $ 213,857,206 $ 243,817,657 $ 553,885,805 $ 8,285,648 $ 214,907,918 $ 11,272,119 =============== ============= ============= ================= ================= =============== $ 213,729,557 $ 243,732,983 $ 553,773,459 $ 8,285,648 $ 214,883,750 $ 11,272,119 127,649 84,674 112,346 -- 24,168 -- --------------- ------------- ------------- ----------------- ----------------- --------------- $ 213,857,206 $ 243,817,657 $ 553,885,805 $ 8,285,648 $ 214,907,918 $ 11,272,119 =============== ============= ============= ================= ================= ===============
The accompanying notes are an integral part of these financial statements. 19 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2010 MSF METLIFE MSF METLIFE MSF METLIFE CONSERVATIVE CONSERVATIVE TO MSF METLIFE AGGRESSIVE ALLOCATION ALLOCATION MODERATE ALLOCATION MODERATE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------- ------------ ------------------- ------------------- ASSETS: Investments at fair value $ 1,960,693 $ 9,998,215 $ 9,257,869 $ 48,715,886 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company -- -- 2 -- --------------------- ------------ ------------------- ------------------- Total Assets 1,960,693 9,998,215 9,257,871 48,715,886 --------------------- ------------ ------------------- ------------------- LIABILITIES: Accrued fees 43 23 15 23 Due to MetLife Investors USA Insurance Company 2 1 -- 2 --------------------- ------------ ------------------- ------------------- Total Liabilities 45 24 15 25 --------------------- ------------ ------------------- ------------------- NET ASSETS $ 1,960,648 $ 9,998,191 $ 9,257,856 $ 48,715,861 ===================== ============ =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 1,960,648 $ 9,998,191 $ 9,257,856 $ 48,715,861 Net assets from contracts in payout -- -- -- -- --------------------- ------------ ------------------- ------------------- Total Net Assets $ 1,960,648 $ 9,998,191 $ 9,257,856 $ 48,715,861 ===================== ============ =================== ===================
The accompanying notes are an integral part of these financial statements. 20 MSF METLIFE MSF NEUBERGER MSF MET/DIMENSIONAL MSF VAN ECK MODERATE TO MSF T. ROWE PRICE MSF LOOMIS SAYLES BERMAN INTERNATIONAL SMALL GLOBAL NATURAL AGGRESSIVE ALLOCATION LARGE CAP GROWTH SMALL CAP CORE MID CAP VALUE COMPANY RESOURCES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------- ----------------- ----------------- ------------- ------------------- -------------- $ 57,766,999 $ 1,365,651 $ 7,224,138 $ 1,984,720 $ 35,750,292 $ 74,371,777 -- -- -- -- -- -- -- -- 17 -- -- -- --------------------- ----------------- ----------------- ------------- ------------------- -------------- 57,766,999 1,365,651 7,224,155 1,984,720 35,750,292 74,371,777 --------------------- ----------------- ----------------- ------------- ------------------- -------------- 22 1 80 80 54 53 1 3 -- 4 2 1 --------------------- ----------------- ----------------- ------------- ------------------- -------------- 23 4 80 84 56 54 --------------------- ----------------- ----------------- ------------- ------------------- -------------- $ 57,766,976 $ 1,365,647 $ 7,224,075 $ 1,984,636 $ 35,750,236 $ 74,371,723 ===================== ================= ================= ============= =================== ============== $ 57,766,976 $ 1,365,647 $ 7,224,075 $ 1,984,636 $ 35,750,236 $ 74,371,723 -- -- -- -- -- -- --------------------- ----------------- ----------------- ------------- ------------------- -------------- $ 57,766,976 $ 1,365,647 $ 7,224,075 $ 1,984,636 $ 35,750,236 $ 74,371,723 ===================== ================= ================= ============= =================== ==============
The accompanying notes are an integral part of these financial statements. 21 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2010 FEDERATED FEDERATED HIGH CAPITAL INCOME INCOME BOND FEDERATED KAUFMAN NEUBERGER GENESIS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------- -------------- ----------------- ----------------- ASSETS: Investments at fair value $ 13,868 $ 29,629 $ 79,875 $ 8,664 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company -- -- -- -- -------------- -------------- ----------------- ----------------- Total Assets 13,868 29,629 79,875 8,664 -------------- -------------- ----------------- ----------------- LIABILITIES: Accrued fees 9 5 -- 1 Due to MetLife Investors USA Insurance Company 1 4 1 -- -------------- -------------- ----------------- ----------------- Total Liabilities 10 9 1 1 -------------- -------------- ----------------- ----------------- NET ASSETS $ 13,858 $ 29,620 $ 79,874 $ 8,663 ============== ============== ================= ================= CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 13,858 $ 29,620 $ 79,874 $ 8,663 Net assets from contracts in payout -- -- -- -- -------------- -------------- ----------------- ----------------- Total Net Assets $ 13,858 $ 29,620 $ 79,874 $ 8,663 ============== ============== ================= =================
The accompanying notes are an integral part of these financial statements. 22 AMERICAN FUNDS ALGER T. ROWE PRICE T. ROWE PRICE T. ROWE PRICE JANUS ASPEN GLOBAL SMALL SMALL CAP GROWTH GROWTH STOCK INTERNATIONAL STOCK PRIME RESERVE WORLDWIDE CAPITALIZATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ------------- ------------------- ------------- ----------- -------------- $ 58,325,343 $ 7,170,861 $ 932,129 $ 1,264,580 $ 6,505 $ 80,582,940 -- -- -- -- -- -- -- -- -- 38 1 -- ---------------- ------------- ------------------- ------------- ----------- -------------- 58,325,343 7,170,861 932,129 1,264,618 6,506 80,582,940 ---------------- ------------- ------------------- ------------- ----------- -------------- -- -- -- -- -- 12 1 3 3 -- -- 3 ---------------- ------------- ------------------- ------------- ----------- -------------- 1 3 3 -- -- 15 ---------------- ------------- ------------------- ------------- ----------- -------------- $ 58,325,342 $ 7,170,858 $ 932,126 $ 1,264,618 $ 6,506 $ 80,582,925 ================ ============= =================== ============= =========== ============== $ 58,325,342 $ 7,170,858 $ 932,126 $ 1,264,618 $ 6,506 $ 80,582,925 -- -- -- -- -- -- ---------------- ------------- ------------------- ------------- ----------- -------------- $ 58,325,342 $ 7,170,858 $ 932,126 $ 1,264,618 $ 6,506 $ 80,582,925 ================ ============= =================== ============= =========== ==============
The accompanying notes are an integral part of these financial statements. 23 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2010 AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GROWTH GROWTH-INCOME GLOBAL GROWTH BOND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------- -------------- -------------- -------------- ASSETS: Investments at fair value $ 568,813,972 $ 266,511,973 $ 202,441,704 $ 86,203,073 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company -- 23 9 -- -------------- -------------- -------------- -------------- Total Assets 568,813,972 266,511,996 202,441,713 86,203,073 -------------- -------------- -------------- -------------- LIABILITIES: Accrued fees 41 45 64 18 Due to MetLife Investors USA Insurance Company 7 -- -- 3 -------------- -------------- -------------- -------------- Total Liabilities 48 45 64 21 -------------- -------------- -------------- -------------- NET ASSETS $ 568,813,924 $ 266,511,951 $ 202,441,649 $ 86,203,052 ============== ============== ============== ============== CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 568,807,099 $ 266,501,729 $ 202,433,714 $ 86,195,290 Net assets from contracts in payout 6,825 10,222 7,935 7,762 -------------- -------------- -------------- -------------- Total Net Assets $ 568,813,924 $ 266,511,951 $ 202,441,649 $ 86,203,052 ============== ============== ============== ==============
The accompanying notes are an integral part of these financial statements. 24 FTVIPT TEMPLETON FTVIPT FRANKLIN FTVIPT MUTUAL FTVIPT TEMPLETON FTVIPT TEMPLETON FTVIPT FRANKLIN GLOBAL BOND SMALL CAP VALUE SHARES SECURITIES FOREIGN SECURITIES GROWTH SECURITIES INCOME SECURITIES SECURITIES SECURITIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------- ------------------ ----------------- ----------------- ---------------- --------------- $ 110,507,154 $ 79,683,812 $ 45,199,230 $ 176,548,697 $ 88,294,185 $ 29,718,675 -- -- -- -- -- -- 1 -- -- 2 -- -- ----------------- ------------------ ----------------- ----------------- ---------------- --------------- 110,507,155 79,683,812 45,199,230 176,548,699 88,294,185 29,718,675 ----------------- ------------------ ----------------- ----------------- ---------------- --------------- 9 53 18 52 8 31 -- -- 1 -- -- 1 ----------------- ------------------ ----------------- ----------------- ---------------- --------------- 9 53 19 52 8 32 ----------------- ------------------ ----------------- ----------------- ---------------- --------------- $ 110,507,146 $ 79,683,759 $ 45,199,211 $ 176,548,647 $ 88,294,177 $ 29,718,643 ================= ================== ================= ================= ================ =============== $ 110,507,146 $ 79,683,759 $ 45,199,211 $ 176,544,664 $ 88,294,177 $ 29,718,643 -- -- -- 3,983 -- -- ----------------- ------------------ ----------------- ----------------- ---------------- --------------- $ 110,507,146 $ 79,683,759 $ 45,199,211 $ 176,548,647 $ 88,294,177 $ 29,718,643 ================= ================== ================= ================= ================ ===============
The accompanying notes are an integral part of these financial statements. 25 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2010 PIONEER VCT PIONEER VCT PIONEER VCT UIF U.S. REAL ESTATE BOND CULLEN VALUE EMERGING MARKETS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ----------- ------------ ---------------- ASSETS: Investments at fair value $ 68,963,657 $ 2,417,790 $ 2,192,928 $ 1,212,605 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company -- -- -- -- -------------------- ----------- ------------ ---------------- Total Assets 68,963,657 2,417,790 2,192,928 1,212,605 -------------------- ----------- ------------ ---------------- LIABILITIES: Accrued fees 8 53 81 68 Due to MetLife Investors USA Insurance Company 1 3 4 -- -------------------- ----------- ------------ ---------------- Total Liabilities 9 56 85 68 -------------------- ----------- ------------ ---------------- NET ASSETS $ 68,963,648 $ 2,417,734 $ 2,192,843 $ 1,212,537 ==================== =========== ============ ================ CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 68,963,648 $ 2,417,734 $ 2,192,843 $ 1,212,537 Net assets from contracts in payout -- -- -- -- -------------------- ----------- ------------ ---------------- Total Net Assets $ 68,963,648 $ 2,417,734 $ 2,192,843 $ 1,212,537 ==================== =========== ============ ================
The accompanying notes are an integral part of these financial statements. 26 PIONEER VCT PIONEER VCT PIONEER VCT IBBOTSON PIONEER VCT IBBOTSON PIONEER VCT PIONEER VCT REAL EQUITY INCOME FUND GROWTH ALLOCATION MODERATE ALLOCATION MID CAP VALUE ESTATE SHARES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------- ----------- -------------------- -------------------- ------------- ---------------- $ 375,831 $ 261,768 $ 19,386,446 $ 27,517,094 $ 46,621,868 $ 234,270 -- -- -- -- -- -- -- -- -- -- 2 -- ------------- ----------- -------------------- -------------------- ------------- ---------------- 375,831 261,768 19,386,446 27,517,094 46,621,870 234,270 ------------- ----------- -------------------- -------------------- ------------- ---------------- 75 61 25 27 52 56 2 2 -- 1 -- 6 ------------- ----------- -------------------- -------------------- ------------- ---------------- 77 63 25 28 52 62 ------------- ----------- -------------------- -------------------- ------------- ---------------- $ 375,754 $ 261,705 $ 19,386,421 $ 27,517,066 $ 46,621,818 $ 234,208 ============= =========== ==================== ==================== ============= ================ $ 375,754 $ 261,705 $ 19,386,421 $ 27,517,066 $ 46,621,818 $ 234,208 -- -- -- -- -- -- ------------- ----------- -------------------- -------------------- ------------- ---------------- $ 375,754 $ 261,705 $ 19,386,421 $ 27,517,066 $ 46,621,818 $ 234,208 ============= =========== ==================== ==================== ============= ================
The accompanying notes are an integral part of these financial statements. 27 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED) DECEMBER 31, 2010 LMPVET LMPVET LMPVET CLEARBRIDGE VARIABLE LMPVET CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE FUNDAMENTAL ALL CAP CLEARBRIDGE VARIABLE SMALL CAP GROWTH LARGE CAP VALUE VALUE APPRECIATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value $ 33,662,856 $ 2,729,866 $ 99,528,276 $ 173,626,561 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company -- -- 9 6 -------------------- -------------------- -------------------- -------------------- Total Assets 33,662,856 2,729,866 99,528,285 173,626,567 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Accrued fees 49 70 52 64 Due to MetLife Investors USA Insurance Company 3 -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities 52 70 52 64 -------------------- -------------------- -------------------- -------------------- NET ASSETS $ 33,662,804 $ 2,729,796 $ 99,528,233 $ 173,626,503 ==================== ==================== ==================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 33,662,804 $ 2,729,796 $ 99,528,233 $ 173,626,503 Net assets from contracts in payout -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Net Assets $ 33,662,804 $ 2,729,796 $ 99,528,233 $ 173,626,503 ==================== ==================== ==================== ====================
The accompanying notes are an integral part of these financial statements. 28 LMPVET LMPVET LMPVET LMPVET LMPVET INVESTMENT CLEARBRIDGE LMPVET CLEARBRIDGE CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE COUNSEL VARIABLE VARIABLE EQUITY CLEARBRIDGE VARIABLE DIVIDEND AGGRESSIVE GROWTH LARGE CAP GROWTH SOCIAL AWARENESS INCOME BUILDER VARIABLE CAPITAL STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- ----------------- --------------- ---------------- ----------------- $ 156,472,030 $ 6,065,569 $ 510,704 $ 81,006,947 $ 5,296,229 $ 5,852,312 -- -- -- -- -- -- 4 -- -- -- -- -- -------------------- -------------------- ----------------- --------------- ---------------- ----------------- 156,472,034 6,065,569 510,704 81,006,947 5,296,229 5,852,312 -------------------- -------------------- ----------------- --------------- ---------------- ----------------- 116 36 22 31 89 45 -- -- 2 3 1 -- -------------------- -------------------- ----------------- --------------- ---------------- ----------------- 116 36 24 34 90 45 -------------------- -------------------- ----------------- --------------- ---------------- ----------------- $ 156,471,918 $ 6,065,533 $ 510,680 $ 81,006,913 $ 5,296,139 $ 5,852,267 ==================== ==================== ================= =============== ================ ================= $ 156,471,918 $ 6,065,533 $ 510,680 $ 81,006,913 $ 5,296,139 $ 5,852,267 -- -- -- -- -- -- -------------------- -------------------- ----------------- --------------- ---------------- ----------------- $ 156,471,918 $ 6,065,533 $ 510,680 $ 81,006,913 $ 5,296,139 $ 5,852,267 ==================== ==================== ================= =============== ================ =================
The accompanying notes are an integral part of these financial statements. 29 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF ASSETS AND LIABILITIES -- (CONCLUDED) DECEMBER 31, 2010 LMPVIT WESTERN LMPVET LMPVET LMPVET ASSET VARIABLE VARIABLE LIFESTYLE VARIABLE LIFESTYLE VARIABLE LIFESTYLE ADJUSTABLE RATE ALLOCATION 50% ALLOCATION 70% ALLOCATION 85% INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------ ------------------ ------------------ --------------- ASSETS: Investments at fair value $ 13,086,849 $ 3,395,304 $ 62,035,174 $ 2,150,005 Accrued dividends -- -- -- -- Due from MetLife Investors USA Insurance Company -- -- -- -- ------------------ ------------------ ------------------ --------------- Total Assets 13,086,849 3,395,304 62,035,174 2,150,005 ------------------ ------------------ ------------------ --------------- LIABILITIES: Accrued fees 23 15 25 59 Due to MetLife Investors USA Insurance Company 3 2 -- 3 ------------------ ------------------ ------------------ --------------- Total Liabilities 26 17 25 62 ------------------ ------------------ ------------------ --------------- NET ASSETS $ 13,086,823 $ 3,395,287 $ 62,035,149 $ 2,149,943 ================== ================== ================== =============== CONTRACT OWNERS' EQUITY Net assets from accumulation units $ 13,086,823 $ 3,395,287 $ 62,035,149 $ 2,149,943 Net assets from contracts in payout -- -- -- -- ------------------ ------------------ ------------------ --------------- Total Net Assets $ 13,086,823 $ 3,395,287 $ 62,035,149 $ 2,149,943 ================== ================== ================== ===============
The accompanying notes are an integral part of these financial statements. 30 LMPVIT WESTERN ASSET VARIABLE GLOBAL HIGH YIELD BOND SUB-ACCOUNT --------------------- $ 61,092,548 -- -- --------------------- 61,092,548 --------------------- 40 1 --------------------- 41 --------------------- $ 61,092,507 ===================== $ 61,092,507 -- --------------------- $ 61,092,507 =====================
The accompanying notes are an integral part of these financial statements. 31 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2010 MIST LORD ABBETT MIST LORD ABBETT MIST MORGAN STANLEY 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 $ 5,643,879 $ 15,690,405 $ 3,573 $ 437,013 -------------------- ---------------- ---------------------- ------------------- EXPENSES: Mortality and expense risk and other charges 6,968,797 3,517,149 865,981 1,108,641 Administrative charges 854,716 611,591 162,101 197,686 -------------------- ---------------- ---------------------- ------------------- Total expenses 7,823,513 4,128,740 1,028,082 1,306,327 -------------------- ---------------- ---------------------- ------------------- Net investment income (loss) (2,179,634) 11,561,665 (1,024,509) (869,314) -------------------- ---------------- ---------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- -- -- Realized gains (losses) on sale of investments (11,738,174) 655,266 249,855 114,776 -------------------- ---------------- ---------------------- ------------------- Net realized gains (losses) (11,738,174) 655,266 249,855 114,776 -------------------- ---------------- ---------------------- ------------------- Change in unrealized gains (losses) on investments 88,503,005 14,381,461 19,404,837 19,290,624 -------------------- ---------------- ---------------------- ------------------- Net realized and change in unrealized gains (losses) on investments 76,764,831 15,036,727 19,654,692 19,405,400 -------------------- ---------------- ---------------------- ------------------- Net increase (decrease) in net assets resulting from operations $ 74,585,197 $ 26,598,392 $ 18,630,183 $ 18,536,086 ==================== ================ ====================== ===================
(a) For the period May 3, 2010 to December 31, 2010. (b) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 32 MIST MIST LEGG MASON MIST MIST INVESCO HARRIS OAKMARK MIST THIRD AVENUE MIST OPPENHEIMER CLEARBRIDGE LAZARD 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 ----------------- ------------------- ----------------- -------------------- ----------------------- -------------------- $ 970,198 $ -- $ 6,578,513 $ 3,246,967 $ 860,244 $ -- ----------------- ------------------- ----------------- -------------------- ----------------------- -------------------- 1,581,304 2,088,857 4,975,791 3,817,999 2,562,064 1,129,229 280,768 379,708 900,567 675,252 449,279 203,621 ----------------- ------------------- ----------------- -------------------- ----------------------- -------------------- 1,862,072 2,468,565 5,876,358 4,493,251 3,011,343 1,332,850 ----------------- ------------------- ----------------- -------------------- ----------------------- -------------------- (891,874) (2,468,565) 702,155 (1,246,284) (2,151,099) (1,332,850) ----------------- ------------------- ----------------- -------------------- ----------------------- -------------------- -- -- -- -- -- -- (1,471,607) (466,657) (2,155,945) (801,208) (9,290,928) (927,201) ----------------- ------------------- ----------------- -------------------- ----------------------- -------------------- (1,471,607) (466,657) (2,155,945) (801,208) (9,290,928) (927,201) ----------------- ------------------- ----------------- -------------------- ----------------------- -------------------- 24,676,618 37,724,319 54,275,769 51,293,976 25,130,998 19,271,527 ----------------- ------------------- ----------------- -------------------- ----------------------- -------------------- 23,205,011 37,257,662 52,119,824 50,492,768 15,840,070 18,344,326 ----------------- ------------------- ----------------- -------------------- ----------------------- -------------------- $ 22,313,137 $ 34,789,097 $ 52,821,979 $ 49,246,484 $ 13,688,971 $ 17,011,476 ================= =================== ================= ==================== ======================= ====================
The accompanying notes are an integral part of these financial statements. 33 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2010 MIST MIST MIST PIMCO INFLATION MIST T. ROWE PRICE PIMCO TOTAL RETURN RCM TECHNOLOGY PROTECTED BOND MID CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------ ----------------- --------------- --------------------- INVESTMENT INCOME: Dividends $ 46,367,361 $ -- $ 13,193,376 $ -- ------------------ ----------------- --------------- --------------------- EXPENSES: Mortality and expense risk and other charges 19,692,134 1,167,712 8,137,298 4,182,931 Administrative charges 3,457,755 205,448 1,480,461 769,953 ------------------ ----------------- --------------- --------------------- Total expenses 23,149,889 1,373,160 9,617,759 4,952,884 ------------------ ----------------- --------------- --------------------- Net investment income (loss) . 23,217,472 (1,373,160) 3,575,617 (4,952,884) ------------------ ----------------- --------------- --------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 6,980,097 -- 14,738,610 -- Realized gains (losses) on sale of investments 4,490,439 (256,411) 494,168 1,190,797 ------------------ ----------------- --------------- --------------------- Net realized gains (losses) 11,470,536 (256,411) 15,232,778 1,190,797 ------------------ ----------------- --------------- --------------------- Change in unrealized gains (losses) on investments 43,519,330 22,084,395 12,409,725 79,898,499 ------------------ ----------------- --------------- --------------------- Net realized and change in unrealized gains (losses) on investments 54,989,866 21,827,984 27,642,503 81,089,296 ------------------ ----------------- --------------- --------------------- Net increase (decrease) in net assets resulting from operations $ 78,207,338 $ 20,454,824 $ 31,218,120 $ 76,136,412 ================== ================= =============== =====================
(a) For the period May 3, 2010 to December 31, 2010. (b) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 34 MIST MFS RESEARCH MIST CLARION MIST TURNER MIST GOLDMAN SACHS MIST METLIFE MIST METLIFE INTERNATIONAL GLOBAL REAL ESTATE MID CAP GROWTH MID CAP VALUE DEFENSIVE STRATEGY MODERATE STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- --------------------- ----------------- --------------------- ------------------ -------------------- $ 4,813,823 $ 8,621,931 $ -- $ 776,261 $ 52,596,961 $ 63,131,562 -------------------- --------------------- ----------------- --------------------- ------------------ -------------------- 3,910,498 1,566,831 890,643 1,178,263 23,609,255 34,897,769 683,925 277,429 161,578 209,733 4,312,497 6,405,875 -------------------- --------------------- ----------------- --------------------- ------------------ -------------------- 4,594,423 1,844,260 1,052,221 1,387,996 27,921,752 41,303,644 -------------------- --------------------- ----------------- --------------------- ------------------ -------------------- 219,400 6,777,671 (1,052,221) (611,735) 24,675,209 21,827,918 -------------------- --------------------- ----------------- --------------------- ------------------ -------------------- -- -- -- -- -- -- (4,301,992) (1,407,595) (238,041) (1,042,195) 6,974,977 (1,300,604) -------------------- --------------------- ----------------- --------------------- ------------------ -------------------- (4,301,992) (1,407,595) (238,041) (1,042,195) 6,974,977 (1,300,604) -------------------- --------------------- ----------------- --------------------- ------------------ -------------------- 32,018,558 10,898,100 16,851,840 20,162,482 129,661,482 249,479,440 -------------------- --------------------- ----------------- --------------------- ------------------ -------------------- 27,716,566 9,490,505 16,613,799 19,120,287 136,636,459 248,178,836 -------------------- --------------------- ----------------- --------------------- ------------------ -------------------- $ 27,935,966 $ 16,268,176 $ 15,561,578 $ 18,508,552 $ 161,311,668 $ 270,006,754 ==================== ===================== ================= ===================== ================== ====================
The accompanying notes are an integral part of these financial statements. 35 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2010 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 $ 110,826,665 $ 86,553,771 $ 5,184,796 $ 2,704,547 -------------------- ------------------ ---------------------- ------------------ EXPENSES: Mortality and expense risk and other charges 73,519,240 69,758,061 6,073,887 2,358,184 Administrative charges 13,484,203 12,642,115 1,101,195 466,089 -------------------- ------------------ ---------------------- ------------------ Total expenses 87,003,443 82,400,176 7,175,082 2,824,273 -------------------- ------------------ ---------------------- ------------------ Net investment income (loss) 23,823,222 4,153,595 (1,990,286) (119,726) -------------------- ------------------ ---------------------- ------------------ NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- -- -- Realized gains (losses) on sale of investments (8,304,795) (69,645,465) (7,464,595) 104,490 -------------------- ------------------ ---------------------- ------------------ Net realized gains (losses) (8,304,795) (69,645,465) (7,464,595) 104,490 -------------------- ------------------ ---------------------- ------------------ Change in unrealized gains (losses) on investments 615,445,203 719,869,373 73,777,886 25,565,625 -------------------- ------------------ ---------------------- ------------------ Net realized and change in unrealized gains (losses) on investments 607,140,408 650,223,908 66,313,291 25,670,115 -------------------- ------------------ ---------------------- ------------------ Net increase (decrease) in net assets resulting from operations $ 630,963,630 $ 654,377,503 $ 64,323,005 $ 25,550,389 ==================== ================== ====================== ==================
(a) For the period May 3, 2010 to December 31, 2010. (b) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 36 MIST LEGG MASON MIST MFS EMERGING MIST LOOMIS SAYLES MIST DREMAN VALUE EQUITY MARKETS EQUITY GLOBAL MARKETS MIST JANUS FORTY SMALL CAP VALUE MIST PIONEER FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------ -------------------- --------------------- ------------------- ------------------ -------------------- $ 1,636,661 $ 2,454,734 $ 2,851,732 $ 400,074 $ 173,916 $ 597,414 ------------------ -------------------- --------------------- ------------------- ------------------ -------------------- 1,076,544 3,384,656 1,306,557 457,057 324,564 884,475 212,110 629,018 238,315 76,843 52,757 191,808 ------------------ -------------------- --------------------- ------------------- ------------------ -------------------- 1,288,654 4,013,674 1,544,872 533,900 377,321 1,076,283 ------------------ -------------------- --------------------- ------------------- ------------------ -------------------- 348,007 (1,558,940) 1,306,860 (133,826) (203,405) (478,869) ------------------ -------------------- --------------------- ------------------- ------------------ -------------------- -- -- -- -- -- -- (1,107,947) 184,674 (479,440) 36,628 154,017 88,907 ------------------ -------------------- --------------------- ------------------- ------------------ -------------------- (1,107,947) 184,674 (479,440) 36,628 154,017 88,907 ------------------ -------------------- --------------------- ------------------- ------------------ -------------------- 6,128,692 57,796,915 17,346,226 3,912,856 3,630,265 13,686,623 ------------------ -------------------- --------------------- ------------------- ------------------ -------------------- 5,020,745 57,981,589 16,866,786 3,949,484 3,784,282 13,775,530 ------------------ -------------------- --------------------- ------------------- ------------------ -------------------- $ 5,368,752 $ 56,422,649 $ 18,173,646 $ 3,815,658 $ 3,580,877 $ 13,296,661 ================== ==================== ===================== =================== ================== ====================
The accompanying notes are an integral part of these financial statements. 37 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2010 MIST PIONEER MIST BLACKROCK MIST BLACKROCK MIST RAINIER STRATEGIC INCOME LARGE CAP CORE HIGH YIELD LARGE CAP EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ----------------- -------------- ------------------- INVESTMENT INCOME: Dividends $ 14,959,933 $ 78,389 $ 7,845,720 $ 148,311 ---------------- ----------------- -------------- ------------------- EXPENSES: Mortality and expense risk and other charges 3,772,866 112,540 1,835,629 478,137 Administrative charges 815,014 18,372 332,807 88,933 ---------------- ----------------- -------------- ------------------- Total expenses 4,587,880 130,912 2,168,436 567,070 ---------------- ----------------- -------------- ------------------- Net investment income (loss) 10,372,053 (52,523) 5,677,284 (418,759) ---------------- ----------------- -------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- -- -- Realized gains (losses) on sale of investments 393,452 (80,252) 7,521,614 (368,008) ---------------- ----------------- -------------- ------------------- Net realized gains (losses) 393,452 (80,252) 7,521,614 (368,008) ---------------- ----------------- -------------- ------------------- Change in unrealized gains (losses) on investments 20,915,857 1,037,963 4,162,987 5,878,677 ---------------- ----------------- -------------- ------------------- Net realized and change in unrealized gains (losses) on investments 21,309,309 957,711 11,684,601 5,510,669 ---------------- ----------------- -------------- ------------------- Net increase (decrease) in net assets resulting from operations $ 31,681,362 $ 905,188 $ 17,361,885 $ 5,091,910 ================ ================= ============== ===================
(a) For the period May 3, 2010 to December 31, 2010. (b) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 38 MIST MIST MIST AMERICAN FUNDS MIST AMERICAN MIST AMERICAN AMERICAN FUNDS MIST AMERICAN AMERICAN FUNDS BALANCED ALLOCATION FUNDS BOND FUNDS GROWTH GROWTH ALLOCATION FUNDS INTERNATIONAL MODERATE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------- ------------- ---------------- -------------------- ---------------------- ---------------------- $ 18,372,356 $ 3,357,479 $ 687,245 $ 11,242,182 $ 1,717,496 $ 15,677,866 ---------------------- ------------- ---------------- -------------------- ---------------------- ---------------------- 23,794,232 2,722,486 4,440,968 16,743,242 2,992,082 14,640,050 4,518,203 512,001 838,762 3,147,967 564,002 2,784,642 ---------------------- ------------- ---------------- -------------------- ---------------------- ---------------------- 28,312,435 3,234,487 5,279,730 19,891,209 3,556,084 17,424,692 ---------------------- ------------- ---------------- -------------------- ---------------------- ---------------------- (9,940,079) 122,992 (4,592,485) (8,649,027) (1,838,588) (1,746,826) ---------------------- ------------- ---------------- -------------------- ---------------------- ---------------------- 788,317 -- -- -- 539,861 -- 643,121 228,924 791,765 4,410,087 50,263 442,079 ---------------------- ------------- ---------------- -------------------- ---------------------- ---------------------- 1,431,438 228,924 791,765 4,410,087 590,124 442,079 ---------------------- ------------- ---------------- -------------------- ---------------------- ---------------------- 218,397,822 6,583,360 65,409,390 148,410,760 18,687,175 99,071,297 ---------------------- ------------- ---------------- -------------------- ---------------------- ---------------------- 219,829,260 6,812,284 66,201,155 152,820,847 19,277,299 99,513,376 ---------------------- ------------- ---------------- -------------------- ---------------------- ---------------------- $ 209,889,181 $ 6,935,276 $ 61,608,670 $ 144,171,820 $ 17,438,711 $ 97,766,550 ====================== ============= ================ ==================== ====================== ======================
The accompanying notes are an integral part of these financial statements. 39 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2010 MIST MET/FRANKLIN MIST MET/FRANKLIN TEMPLETON MIST MIST SSGA GROWTH MUTUAL SHARES FOUNDING STRATEGY SSGA GROWTH ETF AND INCOME ETF SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- ------------------ ------------------- INVESTMENT INCOME: Dividends $ -- $ -- $ 3,099,949 $ 6,242,372 -------------------- -------------------- ------------------ ------------------- EXPENSES: Mortality and expense risk and other charges 1,174,695 6,436,768 3,003,480 7,603,705 Administrative charges 215,815 1,210,060 572,201 1,476,216 -------------------- -------------------- ------------------ ------------------- Total expenses 1,390,510 7,646,828 3,575,681 9,079,921 -------------------- -------------------- ------------------ ------------------- Net investment income (loss) (1,390,510) (7,646,828) (475,732) (2,837,549) -------------------- -------------------- ------------------ ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 977,279 1,673 -- 21,792 Realized gains (losses) on sale of investments 289,269 2,431,013 1,702,495 111,747 -------------------- -------------------- ------------------ ------------------- Net realized gains (losses) 1,266,548 2,432,686 1,702,495 133,539 -------------------- -------------------- ------------------ ------------------- Change in unrealized gains (losses) on investments 9,275,276 46,152,780 29,566,077 78,303,612 -------------------- -------------------- ------------------ ------------------- Net realized and change in unrealized gains (losses) on investments 10,541,824 48,585,466 31,268,572 78,437,151 -------------------- -------------------- ------------------ ------------------- Net increase (decrease) in net assets resulting from operations $ 9,151,314 $ 40,938,638 $ 30,792,840 $ 75,599,602 ==================== ==================== ================== ===================
(a) For the period May 3, 2010 to December 31, 2010. (b) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 40 MIST MIST MET/TEMPLETON MIST MET/TEMPLETON MET/EATON VANCE INVESCO V.I. INVESCO V.I. INVESCO V.I. INTERNATIONAL BOND GROWTH FLOATING RATE CORE EQUITY CAPITAL APPRECIATION INTERNATIONAL GROWTH SUB-ACCOUNT SUB-ACCOUNT (a) SUB-ACCOUNT (a) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------- --------------------- ------------------ ------------------ ----------------------- -------------------- $ 100,003 $ -- $ -- $ 3,627 $ 1,023 $ 1,692,607 --------------------- --------------------- ------------------ ------------------ ----------------------- -------------------- 254,009 43,400 57,886 5,351 1,974 920,733 48,511 9,447 10,593 -- -- 209,399 --------------------- --------------------- ------------------ ------------------ ----------------------- -------------------- 302,520 52,847 68,479 5,351 1,974 1,130,132 --------------------- --------------------- ------------------ ------------------ ----------------------- -------------------- (202,517) (52,847) (68,479) (1,724) (951) 562,475 --------------------- --------------------- ------------------ ------------------ ----------------------- -------------------- 4,897 -- -- -- -- -- 39,391 (6,335) 3,564 604 (6,842) 41,708 --------------------- --------------------- ------------------ ------------------ ----------------------- -------------------- 44,288 (6,335) 3,564 604 (6,842) 41,708 --------------------- --------------------- ------------------ ------------------ ----------------------- -------------------- 2,042,343 499,282 384,248 31,231 26,623 10,609,535 --------------------- --------------------- ------------------ ------------------ ----------------------- -------------------- 2,086,631 492,947 387,812 31,835 19,781 10,651,243 --------------------- --------------------- ------------------ ------------------ ----------------------- -------------------- $ 1,884,114 $ 440,100 $ 319,333 $ 30,111 $ 18,830 $ 11,213,718 ===================== ===================== ================== ================== ======================= ====================
The accompanying notes are an integral part of these financial statements. 41 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2010 INVESCO V.I. INVESCO V.I. INVESCO V.I. INVESCO V.I. BASIC BALANCED GLOBAL REAL ESTATE CAPITAL GROWTH GROWTH AND INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------- --------------------- ------------------ -------------------- INVESTMENT INCOME: Dividends $ 4,894 $ 344,779 $ -- $ 116,453 ----------------- --------------------- ------------------ -------------------- EXPENSES: Mortality and expense risk and other charges 3,546 67,022 1,663 1,463,211 Administrative charges -- 15,490 -- 318,528 ----------------- --------------------- ------------------ -------------------- Total expenses 3,546 82,512 1,663 1,781,739 ----------------- --------------------- ------------------ -------------------- Net investment income (loss) 1,348 262,267 (1,663) (1,665,286) ----------------- --------------------- ------------------ -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- -- -- Realized gains (losses) on sale of investments (6,291) (35,497) (661) 5,754 ----------------- --------------------- ------------------ -------------------- Net realized gains (losses) (6,291) (35,497) (661) 5,754 ----------------- --------------------- ------------------ -------------------- Change in unrealized gains (losses) on investments 20,472 795,938 22,436 16,781,592 ----------------- --------------------- ------------------ -------------------- Net realized and change in unrealized gains (losses) on investments 14,181 760,441 21,775 16,787,346 ----------------- --------------------- ------------------ -------------------- Net increase (decrease) in net assets resulting from operations $ 15,529 $ 1,022,708 $ 20,112 $ 15,122,060 ================= ===================== ================== ====================
(a) For the period May 3, 2010 to December 31, 2010. (b) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 42 INVESCO V.I. INVESCO V.I. MFS VIT MFS VIT OPPENHEIMER VA EQUITY AND INCOME U.S. MID CAP VALUE MFS VIT RESEARCH INVESTORS TRUST NEW DISCOVERY MAIN STREET SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- --------------------- ------------------- ------------------ ---------------- ----------------- $ 5,516,602 $ 163,190 $ 1,008 $ 623 $ -- $ 1,266 -------------------- --------------------- ------------------- ------------------ ---------------- ----------------- 3,370,920 224,109 1,539 668 676 1,599 716,876 51,177 -- -- -- -- -------------------- --------------------- ------------------- ------------------ ---------------- ----------------- 4,087,796 275,286 1,539 668 676 1,599 -------------------- --------------------- ------------------- ------------------ ---------------- ----------------- 1,428,806 (112,096) (531) (45) (676) (333) -------------------- --------------------- ------------------- ------------------ ---------------- ----------------- -- -- -- -- -- -- (177,941) 20,908 1,434 (490) 1,723 (1,607) -------------------- --------------------- ------------------- ------------------ ---------------- ----------------- (177,941) 20,908 1,434 (490) 1,723 (1,607) -------------------- --------------------- ------------------- ------------------ ---------------- ----------------- 29,567,980 4,289,045 14,248 3,782 13,838 17,514 -------------------- --------------------- ------------------- ------------------ ---------------- ----------------- 29,390,039 4,309,953 15,682 3,292 15,561 15,907 -------------------- --------------------- ------------------- ------------------ ---------------- ----------------- $ 30,818,845 $ 4,197,857 $ 15,151 $ 3,247 $ 14,885 $ 15,574 ==================== ===================== =================== ================== ================ =================
The accompanying notes are an integral part of these financial statements. 43 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2010 OPPENHEIMER VA OPPENHEIMER VA OPPENHEIMER VA GLOBAL MAIN STREET OPPENHEIMER VA CORE BOND STRATEGIC INCOME SMALL CAP MONEY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------- ------------------- ----------------- ----------------- INVESTMENT INCOME: Dividends $ 1,102 $ 1,289 $ 202,291 $ 33 ----------------- ------------------- ----------------- ----------------- EXPENSES: Mortality and expense risk and other charges 321 111 599,989 1,638 Administrative charges -- -- 136,018 -- ----------------- ------ ------------ ----------------- ----------------- Total expenses 321 111 736,007 1,638 ----------------- ------ ------------ ----------------- ----------------- Net investment income (loss) 781 1,178 (533,716) (1,605) ----------------- ------ ------------ ----------------- ----------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- -- -- Realized gains (losses) on sale of investments (25,321) 610 126,865 -- ----------------- ------ ------------ ----------------- ----------------- Net realized gains (losses) (25,321) 610 126,865 -- ----------------- ------ ------------ ----------------- ----------------- Change in unrealized gains (losses) on investments 27,071 (781) 12,065,565 -- ----------------- ------ ------------ ----------------- ----------------- Net realized and change in unrealized gains (losses) on investments 1,750 (171) 12,192,430 -- ----------------- ------ ------------ ----------------- ----------------- Net increase (decrease) in net assets resulting from operations $ 2,531 $ 1,007 $ 11,658,714 $ (1,605) ================= =================== ================= =================
(a) For the period May 3, 2010 to December 31, 2010. (b) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 44 FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP ASSET MANAGER FIDELITY VIP GROWTH CONTRAFUND OVERSEAS EQUITY-INCOME INDEX 500 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ---------------------- --------------- --------------- ---------------- --------------- $ 1,646,613 $ 364,788 $ 4,104,352 $ 81,021 $ 108,132 $ 1,244,942 ---------------- ---------------------- --------------- --------------- ---------------- --------------- 1,343,397 1,770,852 4,188,624 73,506 86,692 895,367 -- -- 266,646 -- -- -- ---------------- ---------------------- --------------- --------------- ---------------- --------------- 1,343,397 1,770,852 4,455,270 73,506 86,692 895,367 ---------------- ---------------------- --------------- --------------- ---------------- --------------- 303,216 (1,406,064) (350,918) 7,515 21,440 349,575 ---------------- ---------------------- --------------- --------------- ---------------- --------------- 495,586 444,877 156,928 11,048 -- 1,309,895 (1,832,730) (2,480,503) (2,974,189) (221,613) (368,831) (562,748) ---------------- ---------------------- --------------- --------------- ---------------- --------------- (1,337,144) (2,035,626) (2,817,261) (210,565) (368,831) 747,147 ---------------- ---------------------- --------------- --------------- ---------------- --------------- 12,924,187 30,948,642 54,045,265 839,726 1,122,280 7,212,312 ---------------- ---------------------- --------------- --------------- ---------------- --------------- 11,587,043 28,913,016 51,228,004 629,161 753,449 7,959,459 ---------------- ---------------------- --------------- --------------- ---------------- --------------- $ 11,890,259 $ 27,506,952 $ 50,877,086 $ 636,676 $ 774,889 $ 8,309,034 ================ ====================== =============== =============== ================ ===============
The accompanying notes are an integral part of these financial statements. 45 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2010 FIDELITY VIP FIDELITY VIP FIDELITY VIP MONEY MARKET MID CAP FUNDSMANAGER 60% DWS INTERNATIONAL SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------- --------------- ------------------- -------------------- INVESTMENT INCOME: Dividends $ 134,396 $ 199,606 $ 13,983,999 $ 451,586 --------------- --------------- ------------------- -------------------- EXPENSES: Mortality and expense risk and other charges 1,360,574 1,597,268 10,083,678 280,052 Administrative charges -- 347,186 -- -- --------------- --------------- ------------------- -------------------- Total expenses 1,360,574 1,944,454 10,083,678 280,052 --------------- --------------- ------------------- -------------------- Net investment income (loss) (1,226,178) (1,744,848) 3,900,321 171,534 --------------- --------------- ------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 49,334 455,071 2,447,200 -- Realized gains (losses) on sale of investments -- 103,083 (39) (987,076) --------------- --------------- ------------------- -------------------- Net realized gains (losses) 49,334 558,154 2,447,161 (987,076) --------------- --------------- ------------------- -------------------- Change in unrealized gains (losses) on investments -- 36,279,089 84,722,208 751,044 --------------- --------------- ------------------- -------------------- Net realized and change in unrealized gains (losses) on investments 49,334 36,837,243 87,169,369 (236,032) --------------- --------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations $ (1,176,844) $ 35,092,395 $ 91,069,690 $ (64,498) =============== =============== =================== ====================
(a) For the period May 3, 2010 to December 31, 2010. (b) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 46 MSF MSF FI MSF MSF ARTIO MSF BLACKROCK LEGACY MSF NEUBERGER VALUE LEADERS RUSSELL 2000 INDEX INTERNATIONAL STOCK METLIFE STOCK INDEX LARGE CAP GROWTH BERMAN GENESIS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- --------------------- ---------------------- ---------------------- ------------------- ----------------- $ 64,800 $ 209,210 $ 53,310 $ 4,839,782 $ 19,080 $ 44,464 ---------------- --------------------- ---------------------- ---------------------- ------------------- ----------------- 68,962 360,453 52,236 4,555,306 118,795 116,346 11,230 47,697 8,934 605,619 17,832 -- ---------------- --------------------- ---------------------- ---------------------- ------------------- ----------------- 80,192 408,150 61,170 5,160,925 136,627 116,346 ---------------- --------------------- ---------------------- ---------------------- ------------------- ----------------- (15,392) (198,940) (7,860) (321,143) (117,547) (71,882) ---------------- --------------------- ---------------------- ---------------------- ------------------- ----------------- -- -- -- -- -- -- (191,128) 84,268 (397,491) (1,255,570) 313,167 (650,477) ---------------- --------------------- ---------------------- ---------------------- ------------------- ----------------- (191,128) 84,268 (397,491) (1,255,570) 313,167 (650,477) ---------------- --------------------- ---------------------- ---------------------- ------------------- ----------------- 775,693 7,422,690 580,114 38,151,546 1,246,529 2,336,728 ---------------- --------------------- ---------------------- ---------------------- ------------------- ----------------- 584,565 7,506,958 182,623 36,895,976 1,559,696 1,686,251 ---------------- --------------------- ---------------------- ---------------------- ------------------- ----------------- $ 569,173 $ 7,308,018 $ 174,763 $ 36,574,833 $ 1,442,149 $ 1,614,369 ================ ===================== ====================== ====================== =================== =================
The accompanying notes are an integral part of these financial statements. 47 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2010 MSF BARCLAYS MSF BLACKROCK MSF BLACKROCK CAPITAL AGGREGATE BOND INCOME LARGE CAP VALUE BOND INDEX MSF MFS VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------- ------------------ ----------------- ---------------- INVESTMENT INCOME: Dividends $ 1,751,737 $ 29,633 $ 1,434,714 $ 494,843 ------------- ------------------ ----------------- ---------------- EXPENSES: Mortality and expense risk and other charges 705,244 36,597 716,275 550,962 Administrative charges 100,257 -- 113,414 79,817 ------------- ------------------ ----------------- ---------------- Total expenses 805,501 36,597 829,689 630,779 ------------- ------------------ ----------------- ---------------- Net investment income (loss) 946,236 (6,964) 605,025 (135,936) ------------- ------------------ ----------------- ---------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- -- -- Realized gains (losses) on sale of investments 88,985 (131,394) 114,537 (310,701) ------------- ------------------ ----------------- ---------------- Net realized gains (losses) 88,985 (131,394) 114,537 (310,701) ------------- ------------------ ----------------- ---------------- Change in unrealized gains (losses) on investments 1,711,245 334,187 572,374 4,411,295 ------------- ------------------ ----------------- ---------------- Net realized and change in unrealized gains (losses) on investments 1,800,230 202,793 686,911 4,100,594 ------------- ------------------ ----------------- ---------------- Net increase (decrease) in net assets resulting from operations $ 2,746,466 $ 195,829 $ 1,291,936 $ 3,964,658 ============= ================== ================= ================
(a) For the period May 3, 2010 to December 31, 2010. (b) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 48 MSF MORGAN STANLEY MSF MSF METLIFE MSF MSF MET/ARTISAN MSF EAFE INDEX MFS TOTAL RETURN MID CAP STOCK INDEX DAVIS VENTURE VALUE MID CAP VALUE JENNISON GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------- ------------------- ---------------------- ---------------------- ------------------ ------------------ $ 874,978 $ 1,152,885 $ 288,957 $ 4,527,614 $ 1,169,554 $ 790,490 --------------------- ------------------- ---------------------- ---------------------- ------------------ ------------------ 515,433 558,086 501,223 7,105,757 2,726,334 2,831,285 58,946 73,364 47,949 1,269,306 459,561 513,132 --------------------- ------------------- ---------------------- ---------------------- ------------------ ------------------ 574,379 631,450 549,172 8,375,063 3,185,895 3,344,417 --------------------- ------------------- ---------------------- ---------------------- ------------------ ------------------ 300,599 521,435 (260,215) (3,847,449) (2,016,341) (2,553,927) --------------------- ------------------- ---------------------- ---------------------- ------------------ ------------------ -- -- 41,056 -- -- -- (373,439) (860,808) (55,246) 724,558 (8,689,096) 113,415 --------------------- ------------------- ---------------------- ---------------------- ------------------ ------------------ (373,439) (860,808) (14,190) 724,558 (8,689,096) 113,415 --------------------- ------------------- ---------------------- ---------------------- ------------------ ------------------ 3,884,414 3,449,400 9,587,123 57,763,744 35,137,677 23,243,885 --------------------- ------------------- ---------------------- ---------------------- ------------------ ------------------ 3,510,975 2,588,592 9,572,933 58,488,302 26,448,581 23,357,300 --------------------- ------------------- ---------------------- ---------------------- ------------------ ------------------ $ 3,811,574 $ 3,110,027 $ 9,312,718 $ 54,640,853 $ 24,432,240 $ 20,803,373 ===================== =================== ====================== ====================== ================== ==================
The accompanying notes are an integral part of these financial statements. 49 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2010 MSF WESTERN ASSET MSF BLACKROCK MSF T. ROWE PRICE MANAGEMENT MSF OPPENHEIMER MONEY MARKET SMALL CAP GROWTH U.S. GOVERNMENT GLOBAL EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- -------------------- ----------------- ------------------ INVESTMENT INCOME: Dividends $ 90 $ -- $ 4,079,194 $ 143,488 ----------------- -------------------- ----------------- ------------------ EXPENSES: Mortality and expense risk and other charges 8,033,137 98,188 2,309,048 129,562 Administrative charges 1,467,554 11,927 455,669 26,693 ---------------- -------------------- ----------------- ------------------ Total expenses 9,500,691 110,115 2,764,717 156,255 ---------------- -------------------- ----------------- ------------------ Net investment income (loss) (9,500,601) (110,115) 1,314,477 (12,767) ---------------- -------------------- ----------------- ------------------ NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- 467,468 -- Realized gains (losses) on sale of investments -- 262,986 226,514 (121,999) ---------------- -------------------- ----------------- ------------------ Net realized gains (losses) -- 262,986 693,982 (121,999) ---------------- -------------------- ----------------- ------------------ Change in unrealized gains (losses) on investments -- 1,841,343 3,670,982 1,598,724 ---------------- -------------------- ----------------- ------------------ Net realized and change in unrealized gains (losses) on investments -- 2,104,329 4,364,964 1,476,725 ---------------- -------------------- ----------------- ------------------ Net increase (decrease) in net assets resulting from operations $ (9,500,601) $ 1,994,214 $ 5,679,441 $ 1,463,958 ================= ==================== ================= ==================
(a) For the period May 3, 2010 to December 31, 2010. (b) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 50 MSF METLIFE MSF METLIFE MSF METLIFE MSF METLIFE CONSERVATIVE CONSERVATIVE TO MSF METLIFE MODERATE TO MSF T. ROWE PRICE AGGRESSIVE ALLOCATION ALLOCATION MODERATE ALLOCATION MODERATE ALLOCATION AGGRESSIVE ALLOCATION LARGE CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------ ------------ ------------------- ---------------------- ------------------------ -------------------- $ 19,517 $ 474,067 $ 288,649 $ 1,153,011 $ 1,142,281 $ 768 ------------------------ ------------ ------------------- ---------------------- ------------------------ -------------------- 27,606 169,084 128,632 675,468 789,404 15,747 4,622 29,215 21,315 113,947 133,515 2,901 ------------------------ ------------ ------------------- ---------------------- ------------------------ -------------------- 32,228 198,299 149,947 789,415 922,919 18,648 ------------------------ ------------ ------------------- ---------------------- ------------------------ -------------------- (12,711) 275,768 138,702 363,596 219,362 (17,880) ------------------------ ------------ ------------------- ---------------------- ------------------------ -------------------- -- -- -- -- -- -- (45,643) 354,562 107,507 (281,593) (651,563) 4,288 ------------------------ ------------ ------------------- ---------------------- ------------------------ -------------------- (45,643) 354,562 107,507 (281,593) (651,563) 4,288 ------------------------ ------------ ------------------- ---------------------- ------------------------ -------------------- 292,785 307,150 548,177 4,846,286 6,983,802 174,952 ------------------------ ------------ ------------------- ---------------------- ------------------------ -------------------- 247,142 661,712 655,684 4,564,693 6,332,239 179,240 ------------------------ ------------ ------------------- ---------------------- ------------------------ -------------------- $ 234,431 $ 937,480 $ 794,386 $ 4,928,289 $ 6,551,601 $ 161,360 ======================== ============ =================== ====================== ======================== ====================
The accompanying notes are an integral part of these financial statements. 51 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2010 MSF NEUBERGER MSF MET/DIMENSIONAL MSF VAN ECK MSF LOOMIS SAYLES BERMAN INTERNATIONAL SMALL GLOBAL NATURAL SMALL CAP CORE MID CAP VALUE COMPANY RESOURCES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ---------------- ---------------------- ----------------- INVESTMENT INCOME: Dividends $ -- $ 1,534 $ 314,235 $ 97,524 -------------------- ---------------- ---------------------- ----------------- EXPENSES: Mortality and expense risk and other charges 57,031 10,028 327,987 514,805 Administrative charges 9,594 1,760 60,349 97,321 -------------------- ---------------- ---------------------- ----------------- Total expenses 66,625 11,788 388,336 612,126 -------------------- ---------------- ---------------------- ----------------- Net investment income (loss) (66,625) (10,254) (74,101) (514,602) -------------------- ---------------- ---------------------- ----------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- 1,195,267 2,087,390 Realized gains (losses) on sale of investments 52,849 14,391 245,227 13,045 -------------------- ---------------- ---------------------- ----------------- Net realized gains (losses) 52,849 14,391 1,440,494 2,100,435 -------------------- ---------------- ---------------------- ----------------- Change in unrealized gains (losses) on investments 1,146,011 277,374 4,020,489 12,805,750 -------------------- ---------------- ---------------------- ----------------- Net realized and change in unrealized gains (losses) on investments 1,198,860 291,765 5,460,983 14,906,185 -------------------- ---------------- ---------------------- ----------------- Net increase (decrease) in net assets resulting from operations $ 1,132,235 $ 281,511 $ 5,386,882 $ 14,391,583 ==================== ================ ====================== =================
(a) For the period May 3, 2010 to December 31, 2010. (b) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 52 FEDERATED FEDERATED HIGH ALGER T. ROWE PRICE CAPITAL INCOME INCOME BOND FEDERATED KAUFMAN NEUBERGER GENESIS SMALL CAP GROWTH GROWTH STOCK SUB-ACCOUNT (b) SUB-ACCOUNT SUB-ACCOUNT (b) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------ ----------------- -------------------- -------------------- ------------------- ---------------- $ 36 $ 2,201 $ -- $ -- $ -- $ 3,832 ------------------ ----------------- -------------------- -------------------- ------------------- ---------------- 175 389 834 79 711,530 59,850 -- -- -- -- -- -- ------------------ ----------------- -------------------- -------------------- ------------------- ---------------- 175 389 834 79 711,530 59,850 ------------------ ----------------- -------------------- -------------------- ------------------- ---------------- (139) 1,812 (834) (79) (711,530) (56,018) ------------------ ----------------- -------------------- -------------------- ------------------- ---------------- -- -- -- -- -- -- (39) (31) (21) 463 (350,422) 12,135 ------------------ ----------------- -------------------- -------------------- ------------------- ---------------- (39) (31) (21) 463 (350,422) 12,135 ------------------ ----------------- -------------------- -------------------- ------------------- ---------------- 1,123 1,676 10,091 1,309 12,464,995 1,033,917 ------------------ ----------------- -------------------- -------------------- ------------------- ---------------- 1,084 1,645 10,070 1,772 12,114,573 1,046,052 ------------------ ----------------- -------------------- -------------------- ------------------- ---------------- $ 945 $ 3,457 $ 9,236 $ 1,693 $ 11,403,043 $ 990,034 ================== ================= ==================== ==================== =================== ================
The accompanying notes are an integral part of these financial statements. 53 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2010 AMERICAN FUNDS T. ROWE PRICE T. ROWE PRICE JANUS ASPEN GLOBAL SMALL INTERNATIONAL STOCK PRIME RESERVE WORLDWIDE CAPITALIZATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------- ---------------- -------------- ----------------- INVESTMENT INCOME: Dividends $ 9,678 $ 168 $ 36 $ 1,162,008 ---------------------- ---------------- -------------- ----------------- EXPENSES: Mortality and expense risk and other charges 7,620 12,351 51 786,513 Administrative charges -- -- -- 113,358 ---------------------- ---------------- -------------- ----------------- Total expenses 7,620 12,351 51 899,871 ---------------------- ---------------- -------------- ----------------- Net investment income (loss) 2,058 (12,183) (15) 262,137 ---------------------- ---------------- -------------- ----------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions 2,581 -- -- -- Realized gains (losses) on sale of investments (8,280) -- 51 (620,368) ---------------------- ---------------- -------------- ----------------- Net realized gains (losses) (5,699) -- 51 (620,368) ---------------------- ---------------- -------------- ----------------- Change in unrealized gains (losses) on investments 114,449 -- 785 13,607,870 ---------------------- ---------------- -------------- ----------------- Net realized and change in unrealized gains (losses) on investments 108,750 -- 836 12,987,502 ---------------------- ---------------- -------------- ----------------- Net increase (decrease) in net assets resulting from operations $ 110,808 $ (12,183) $ 821 $ 13,249,639 ====================== ================ ============== =================
(a) For the period May 3, 2010 to December 31, 2010. (b) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 54 AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS FTVIPT MUTUAL FTVIPT TEMPLETON GROWTH GROWTH-INCOME GLOBAL GROWTH BOND SHARES SECURITIES FOREIGN SECURITIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------- ----------------- ----------------- -------------- -------------------- --------------------- $ 3,623,277 $ 3,623,812 $ 2,711,542 $ 2,469,726 $ 1,567,236 $ 1,337,413 ----------------- ----------------- ----------------- -------------- -------------------- --------------------- 5,954,636 3,049,328 2,215,406 786,597 1,157,531 1,115,695 1,100,375 520,392 433,543 179,482 241,439 178,171 ----------------- ----------------- ----------------- -------------- -------------------- --------------------- 7,055,011 3,569,720 2,648,949 966,079 1,398,970 1,293,866 ----------------- ----------------- ----------------- -------------- -------------------- --------------------- (3,431,734) 54,092 62,593 1,503,647 168,266 43,547 ----------------- ----------------- ----------------- -------------- -------------------- --------------------- -- -- -- -- -- -- (567,706) (942,084) (242,233) 71,340 (385,340) (879,380) ----------------- ----------------- ----------------- -------------- -------------------- --------------------- (567,706) (942,084) (242,233) 71,340 (385,340) (879,380) ----------------- ----------------- ----------------- -------------- -------------------- --------------------- 84,253,153 24,414,298 18,852,792 1,549,414 9,513,224 5,846,879 ----------------- ----------------- ----------------- -------------- -------------------- --------------------- 83,685,447 23,472,214 18,610,559 1,620,754 9,127,884 4,967,499 ----------------- ----------------- ----------------- -------------- -------------------- --------------------- $ 80,253,713 $ 23,526,306 $ 18,673,152 $ 3,124,401 $ 9,296,150 $ 5,011,046 ================= ================= ================= ============== ==================== =====================
The accompanying notes are an integral part of these financial statements. 55 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2010 FTVIPT TEMPLETON FTVIPT FRANKLIN FTVIPT TEMPLETON FTVIPT FRANKLIN GLOBAL BOND SMALL CAP VALUE GROWTH SECURITIES INCOME SECURITIES SECURITIES SECURITIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- ---------------- ------------------ INVESTMENT INCOME: Dividends $ 593,829 $ 9,966,679 $ 868,342 $ 143,826 -------------------- -------------------- ---------------- ------------------ EXPENSES: Mortality and expense risk and other charges 527,806 1,783,341 684,188 212,922 Administrative charges 107,487 377,366 158,829 49,063 -------------------- -------------------- ---------------- ------------------ Total expenses 635,293 2,160,707 843,017 261,985 -------------------- -------------------- ---------------- ------------------ Net investment income (loss) (41,464) 7,805,972 25,325 (118,159) -------------------- -------------------- ---------------- ------------------ NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- 157,085 -- Realized gains (losses) on sale of investments (1,194,460) (465,020) 71,872 54,701 -------------------- -------------------- ---------------- ------------------ Net realized gains (losses) (1,194,460) (465,020) 228,957 54,701 -------------------- -------------------- ---------------- ------------------ Change in unrealized gains (losses) on investments 3,626,718 9,173,322 7,083,996 5,414,279 -------------------- -------------------- ---------------- ------------------ Net realized and change in unrealized gains (losses) on investments 2,432,258 8,708,302 7,312,953 5,468,980 -------------------- -------------------- ---------------- ------------------ Net increase (decrease) in net assets resulting from operations $ 2,390,794 $ 16,514,274 $ 7,338,278 $ 5,350,821 ==================== ==================== ================ ==================
(a) For the period May 3, 2010 to December 31, 2010. (c) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 56 PIONEER VCT PIONEER VCT PIONEER VCT PIONEER VCT PIONEER VCT UIF U.S. REAL ESTATE BOND CULLEN VALUE EMERGING MARKETS EQUITY INCOME FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------- ----------- --------------- ------------------- ------------- -------------- $ 1,320,960 $ 106,688 $ 11,513 $ 3,369 $ 7,659 $ 2,642 ----------------------- ----------- --------------- ------------------- ------------- -------------- 764,984 28,141 25,019 14,744 5,117 2,651 153,396 5,658 4,970 2,644 912 583 ----------------------- ----------- --------------- ------------------- ------------- -------------- 918,380 33,799 29,989 17,388 6,029 3,234 ----------------------- ----------- --------------- ------------------- ------------- -------------- 402,580 72,889 (18,476) (14,019) 1,630 (592) ----------------------- ----------- --------------- ------------------- ------------- -------------- -- -- -- -- -- -- (3,793,020) 28,371 22,967 51,198 17,928 1,674 ----------------------- ----------- --------------- ------------------- ------------- -------------- (3,793,020) 28,371 22,967 51,198 17,928 1,674 ----------------------- ----------- --------------- ------------------- ------------- -------------- 18,634,695 55,693 155,011 110,840 38,303 32,740 ----------------------- ----------- --------------- ------------------- ------------- -------------- 14,841,675 84,064 177,978 162,038 56,231 34,414 ----------------------- ----------- --------------- ------------------- ------------- -------------- $ 15,244,255 $ 156,953 $ 159,502 $ 148,019 $ 57,861 $ 33,822 ======================= =========== =============== =================== ============= ==============
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 OPERATIONS -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2010 PIONEER VCT IBBOTSON PIONEER VCT IBBOTSON PIONEER VCT PIONEER VCT REAL GROWTH ALLOCATION MODERATE ALLOCATION MID CAP VALUE ESTATE SHARES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- ---------------- ---------------- INVESTMENT INCOME: Dividends $ 333,393 $ 643,849 $ 337,027 $ 5,409 -------------------- -------------------- ---------------- ---------------- EXPENSES: Mortality and expense risk and other charges 249,686 328,293 465,847 2,986 Administrative charges 44,216 63,518 96,556 551 -------------------- -------------------- ---------------- ---------------- Total expenses 293,902 391,811 562,403 3,537 -------------------- -------------------- ---------------- ---------------- Net investment income (loss) 39,491 252,038 (225,376) 1,872 -------------------- -------------------- ---------------- ---------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- -- -- Realized gains (losses) on sale of investments 360,330 221,662 (237,712) 28,087 -------------------- -------------------- ---------------- ---------------- Net realized gains (losses) 360,330 221,662 (237,712) 28,087 -------------------- -------------------- ---------------- ---------------- Change in unrealized gains (losses) on investments 1,818,686 2,500,603 6,635,500 27,619 -------------------- -------------------- ---------------- ---------------- Net realized and change in unrealized gains (losses) on investments 2,179,016 2,722,265 6,397,788 55,706 -------------------- -------------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations $ 2,218,507 $ 2,974,303 $ 6,172,412 $ 57,578 ==================== ==================== ================ ================
(a) For the period May 3, 2010 to December 31, 2010. (b) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 58 LMPVET LMPVET LMPVET CLEARBRIDGE VARIABLE LMPVET LMPVET LMPVET CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE FUNDAMENTAL CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE SMALL CAP GROWTH LARGE CAP VALUE ALL CAP VALUE APPRECIATION AGGRESSIVE GROWTH LARGE CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------- --------------------- --------------------- --------------------- --------------------- --------------------- $ -- $ 75,586 $ 1,556,462 $ 2,549,002 $ 195,409 $ 6,925 --------------------- --------------------- --------------------- --------------------- --------------------- --------------------- 327,041 38,094 1,079,364 1,682,048 1,697,456 91,852 64,955 6,248 217,229 348,246 332,306 15,087 --------------------- --------------------- --------------------- --------------------- --------------------- --------------------- 391,996 44,342 1,296,593 2,030,294 2,029,762 106,939 --------------------- --------------------- --------------------- --------------------- --------------------- --------------------- (391,996) 31,244 259,869 518,708 (1,834,353) (100,014) --------------------- --------------------- --------------------- --------------------- --------------------- --------------------- -- -- -- -- -- -- 96,515 (95,704) (692,388) (46,528) (729,737) (67,178) --------------------- --------------------- --------------------- --------------------- --------------------- --------------------- 96,515 (95,704) (692,388) (46,528) (729,737) (67,178) --------------------- --------------------- --------------------- --------------------- --------------------- --------------------- 6,313,023 249,108 13,378,879 15,933,466 31,554,611 580,884 --------------------- --------------------- --------------------- --------------------- --------------------- --------------------- 6,409,538 153,404 12,686,491 15,886,938 30,824,874 513,706 --------------------- --------------------- --------------------- --------------------- --------------------- --------------------- $ 6,017,542 $ 184,648 $ 12,946,360 $ 16,405,646 $ 28,990,521 $ 413,692 ===================== ===================== ===================== ===================== ===================== =====================
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 OPERATIONS -- (CONCLUDED) FOR THE YEAR ENDED DECEMBER 31, 2010 LMPVET LMPVET INVESTMENT CLEARBRIDGE LMPVET LMPVET COUNSEL VARIABLE VARIABLE EQUITY CLEARBRIDGE CLEARBRIDGE VARIABLE SOCIAL AWARENESS INCOME BUILDER VARIABLE CAPITAL DIVIDEND STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------ ------------------- ----------------------- INVESTMENT INCOME: Dividends $ 6,582 $ 2,879,006 $ 40,567 $ 161,132 -------------------- ------------------ ------------------- ----------------------- EXPENSES: Mortality and expense risk and other charges 7,215 875,364 78,428 83,281 Administrative charges 1,325 175,898 12,599 13,943 -------------------- ------------------ ------------------- ----------------------- Total expenses 8,540 1,051,262 91,027 97,224 -------------------- ------------------ ------------------- ----------------------- Net investment income (loss) (1,958) 1,827,744 (50,460) 63,908 -------------------- ------------------ ------------------- ----------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions -- -- -- -- Realized gains (losses) on sale of investments (15,882) (2,284,460) (459,328) (127,436) -------------------- ------------------ ------------------- ----------------------- Net realized gains (losses) (15,882) (2,284,460) (459,328) (127,436) -------------------- ------------------ ------------------- ----------------------- Change in unrealized gains (losses) on investments 67,430 7,931,196 1,016,611 598,520 -------------------- ------------------ ------------------- ----------------------- Net realized and change in unrealized gains (losses) on investments 51,548 5,646,736 557,283 471,084 -------------------- ------------------ ------------------- ----------------------- Net increase (decrease) in net assets resulting from operations $ 49,590 $ 7,474,480 $ 506,823 $ 534,992 ==================== ================== =================== =======================
(a) For the period May 3, 2010 to December 31, 2010. (b) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 60 LMPVIT WESTERN LMPVET LMPVET LMPVET ASSET VARIABLE LMPVIT WESTERN VARIABLE LIFESTYLE VARIABLE LIFESTYLE VARIABLE LIFESTYLE ADJUSTABLE RATE ASSET VARIABLE GLOBAL ALLOCATION 50% ALLOCATION 70% ALLOCATION 85% INCOME HIGH YIELD BOND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------- --------------------- --------------------- ------------------ ------------------------ $ 351,792 $ 67,686 $ 913,002 $ 23,448 $ 5,101,414 --------------------- --------------------- --------------------- ------------------ ------------------------ 112,783 45,195 583,866 29,272 687,794 21,428 8,277 132,131 5,366 134,601 --------------------- --------------------- --------------------- ------------------ ------------------------ 134,211 53,472 715,997 34,638 822,395 --------------------- --------------------- --------------------- ------------------ ------------------------ 217,581 14,214 197,005 (11,190) 4,279,019 --------------------- --------------------- --------------------- ------------------ ------------------------ -- -- -- -- -- (104,317) (75,321) (47,518) (34,178) (257,958) --------------------- --------------------- --------------------- ------------------ ------------------------ (104,317) (75,321) (47,518) (34,178) (257,958) --------------------- --------------------- --------------------- ------------------ ------------------------ 1,061,494 464,939 7,347,126 200,066 2,633,790 --------------------- --------------------- --------------------- ------------------ ------------------------ 957,177 389,618 7,299,608 165,888 2,375,832 --------------------- --------------------- --------------------- ------------------ ------------------------ $ 1,174,758 $ 403,832 $ 7,496,613 $ 154,698 $ 6,654,851 ===================== ===================== ===================== ================== ========================
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 FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 MIST LORD ABBETT GROWTH AND INCOME MIST LORD ABBETT BOND DEBENTURE SUB-ACCOUNT SUB-ACCOUNT -------------------- ---------------- -------------------- -------------- 2010 2009 2010 2009 ---------------- -------------------- ---------------- ------------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (2,179,634) $ 3,407,335 $ 11,561,665 $ 11,651,022 Net realized gains (losses) (11,738,174) (19,779,752) 655,266 (2,618,629) Change in unrealized gains (losses) on investments 88,503,005 89,166,515 14,381,461 53,160,028 ---------------- -------------------- ---------------- ------------------ Net increase (decrease) in net assets resulting from operations 74,585,197 72,794,098 26,598,392 62,192,421 ---------------- -------------------- ---------------- ------------------ CONTRACT TRANSACTIONS: Purchase payments received from contract owners 34,498,056 24,790,970 19,319,664 13,520,954 Net transfers (including fixed account) (9,485,921) (9,170,650) (2,789,729) 8,532,182 Contract charges (1,907,565) (1,725,909) (1,255,669) (1,091,983) Transfers for contract benefits and terminations (41,749,572) (31,471,695) (19,865,961) (15,416,833) ---------------- -------------------- ---------------- ------------------ Net increase (decrease) in net assets resulting from contract transactions (18,645,002) (17,577,284) (4,591,695) 5,544,320 ---------------- -------------------- ---------------- ------------------ Net increase (decrease) in net assets 55,940,195 55,216,814 22,006,697 67,736,741 NET ASSETS: Beginning of year 502,483,411 447,266,597 245,913,998 178,177,257 ---------------- -------------------- ---------------- ------------------ End of year $ 558,423,606 $ 502,483,411 $ 267,920,695 $ 245,913,998 ================ ==================== ================ ==================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 62 MIST MORGAN STANLEY MID CAP GROWTH MIST LORD ABBETT MID CAP VALUE MIST LAZARD MID CAP SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------- ---------------------------------- ---------------------------------- 2010 2009 2010 2009 2010 2009 --------------- --------------------- ---------------- ----------------- ---------------- ----------------- $ (1,024,509) $ (629,905) $ (869,314) $ 23,534 $ (891,874) $ (414,902) 249,855 (846,552) 114,776 (729,988) (1,471,607) (3,302,687) 19,404,837 18,975,278 19,290,624 12,132,534 24,676,618 29,227,950 --------------- --------------------- ---------------- ----------------- ---------------- ----------------- 18,630,183 17,498,821 18,536,086 11,426,080 22,313,137 25,510,361 --------------- --------------------- ---------------- ----------------- ---------------- ----------------- 20,931,300 14,583,797 27,767,987 18,776,021 18,328,029 11,713,789 (368,519) (2,621,706) 5,462,249 8,850,724 1,824,089 (1,645,217) (484,810) (293,779) (589,256) (241,571) (711,764) (500,917) (3,982,569) (2,104,313) (3,756,372) (1,808,129) (7,455,077) (4,372,768) --------------- --------------------- ---------------- ----------------- ---------------- ----------------- 16,095,402 9,563,999 28,884,608 25,577,045 11,985,277 5,194,887 --------------- --------------------- ---------------- ----------------- ---------------- ----------------- 34,725,585 27,062,820 47,420,694 37,003,125 34,298,414 30,705,248 54,290,087 27,227,267 60,902,685 23,899,560 100,906,992 70,201,744 --------------- --------------------- ---------------- ----------------- ---------------- ----------------- $ 89,015,672 $ 54,290,087 $ 108,323,379 $ 60,902,685 $ 135,205,406 $ 100,906,992 =============== ===================== ================ ================= ================ =================
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, 2010 AND 2009 MIST INVESCO SMALL CAP GROWTH MIST HARRIS OAKMARK INTERNATIONAL SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ------------------------------------ 2010 2009 2010 2009 ---------------- ------------------ ---------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (2,468,565) $ (1,876,335) $ 702,155 $ 14,134,303 Net realized gains (losses) (466,657) (2,814,981) (2,155,945) (8,257,515) Change in unrealized gains (losses) on investments 37,724,319 37,631,558 54,275,769 95,170,553 ---------------- ------------------ ---------------- --------------- Net increase (decrease) in net assets resulting from operations 34,789,097 32,940,242 52,821,979 101,047,341 ---------------- ------------------ ---------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 22,455,325 14,721,210 82,957,906 32,490,984 Net transfers (including fixed account) (1,342,715) (558,124) 35,195,388 44,876 Contract charges (883,578) (683,499) (2,086,105) (1,394,770) Transfers for contract benefits and terminations (8,881,497) (6,393,128) (18,631,233) (11,888,624) ---------------- ------------------ ---------------- --------------- Net increase (decrease) in net assets resulting from contract transactions 11,347,535 7,086,459 97,435,956 19,252,466 ---------------- ------------------ ---------------- --------------- Net increase (decrease) in net assets 46,136,632 40,026,701 150,257,935 120,299,807 NET ASSETS: Beginning of year 140,473,926 100,447,225 309,481,262 189,181,455 ---------------- ------------------ ---------------- --------------- End of year $ 186,610,558 $ 140,473,926 $ 459,739,197 $ 309,481,262 ================ ================== ================ ===================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 64 MIST MIST THIRD AVENUE SMALL CAP VALUE MIST OPPENHEIMER CAPITAL APPRECIATION LEGG MASON CLEARBRIDGE AGGRESSIVE GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------ ---------------------------------------- ------------------------------------------- 2010 2009 2010 2009 2010 2009 ---------------- ------------------- ---------------- ----------------------- ---------------- -------------------------- $ (1,246,284) $ (1,038,997) $ (2,151,099) $ (2,827,781) $ (1,332,850) $ (1,032,858) (801,208) (856,195) (9,290,928) (16,868,181) (927,201) (3,151,338) 51,293,976 53,626,734 25,130,998 81,408,078 19,271,527 21,503,806 ---------------- ------------------- ---------------- ----------------------- ---------------- -------------------------- 49,246,484 51,731,542 13,688,971 61,712,116 17,011,476 17,319,610 ---------------- ------------------- ---------------- ----------------------- ---------------- -------------------------- 35,681,864 26,362,759 3,281,141 3,154,999 12,070,122 5,272,403 (1,476,974) 2,707,898 (7,070,024) (9,985,808) 5,475,099 (1,962,041) (1,539,921) (1,222,132) (906,090) (960,351) (468,260) (379,561) (16,870,282) (12,018,057) (14,069,318) (11,619,466) (4,991,971) (3,535,631) ---------------- ------------------- ---------------- ----------------------- ---------------- -------------------------- 15,794,687 15,830,468 (18,764,291) (19,410,626) 12,084,990 (604,830) ---------------- ------------------- ---------------- ----------------------- ---------------- -------------------------- 65,041,171 67,562,010 (5,075,320) 42,301,490 29,096,466 16,714,780 262,479,306 194,917,296 201,465,075 159,163,585 73,409,292 56,694,512 ---------------- ------------------- ---------------- ----------------------- ---------------- -------------------------- $ 327,520,477 $ 262,479,306 $ 196,389,755 $ 201,465,075 $ 102,505,758 $ 73,409,292 ================ =================== ================ ======================= ================ ==========================
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, 2010 AND 2009 MIST PIMCO TOTAL RETURN MIST RCM TECHNOLOGY SUB-ACCOUNT SUB-ACCOUNT ------------------------------------- ---------------------------------- 2010 2009 2010 2009 ------------------ ------------------ ---------------- ------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 23,217,472 $ 36,006,518 $ (1,373,160) $ (856,547) Net realized gains (losses) 11,470,536 28,108,034 (256,411) (4,131,893) Change in unrealized gains (losses) on investments 43,519,330 43,548,561 22,084,395 28,745,651 ------------------ ------------------ ---------------- ------------- Net increase (decrease) in net assets resulting from operations 78,207,338 107,663,113 20,454,824 23,757,211 ------------------ ------------------ ---------------- ------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 528,002,334 283,591,707 15,191,832 8,378,739 Net transfers (including fixed account) 193,559,819 186,018,088 4,638,445 7,819,129 Contract charges (9,123,029) (3,508,859) (485,886) (308,883) Transfers for contract benefits and terminations (84,494,300) (60,877,549) (4,684,902) (2,421,353) ------------------ ------------------ ---------------- ------------- Net increase (decrease) in net assets resulting from contract transactions 627,944,824 405,223,387 14,659,489 13,467,632 ------------------ ------------------ ---------------- ------------- Net increase (decrease) in net assets 706,152,162 512,886,500 35,114,313 37,224,843 NET ASSETS: Beginning of year 1,055,450,302 542,563,802 74,614,703 37,389,860 ------------------ ------------------ ---------------- ------------- End of year $ 1,761,602,464 $ 1,055,450,302 $ 109,729,016 $ 74,614,703 ================== ================== ================ ==============
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 66 MIST PIMCO INFLATION PROTECTED BOND MIST T. ROWE PRICE MID CAP GROWTH MIST MFS RESEARCH INTERNATIONAL SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------- ------------------------------------ ----------------------------------- 2010 2009 2010 2009 2010 2009 ---------------- ---------------- ---------------- --------------- --------------- -------------- $ 3,575,617 $ 5,334,190 $ (4,952,884) $ (3,080,007) $ 219,400 $ 3,448,924 15,232,778 (156,702) 1,190,797 (1,354,117) (4,301,992) (7,097,913) 12,409,725 43,470,993 79,898,499 73,868,915 32,018,558 67,944,426 ---------------- ---------------- ---------------- --------------- --------------- -------------- 31,218,120 48,648,481 76,136,412 69,434,791 27,935,966 64,295,437 ---------------- ---------------- ---------------- --------------- --------------- -------------- 186,076,017 108,272,363 81,005,710 48,579,554 33,595,278 30,714,776 55,668,915 91,767,453 16,938,802 11,965,211 (4,781,993) (5,055,706) (3,960,123) (1,879,564) (1,874,240) (1,056,634) (1,690,651) (1,383,407) (36,501,799) (23,038,668) (15,531,496) (9,815,630) (17,692,270) (12,091,315) ---------------- ---------------- ---------------- --------------- --------------- -------------- 201,283,010 175,121,584 80,538,776 49,672,501 9,430,364 12,184,348 ---------------- ---------------- ---------------- --------------- --------------- -------------- 232,501,130 223,770,065 156,675,188 119,107,292 37,366,330 76,479,785 478,661,744 254,891,679 258,174,943 139,067,651 281,155,296 204,675,511 ---------------- ---------------- ---------------- --------------- --------------- -------------- $ 711,162,874 $ 478,661,744 $ 414,850,131 $ 258,174,943 $ 318,521,626 $ 281,155,296 ================ ================ ================ =============== =============== ===============
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, 2010 AND 2009 MIST CLARION GLOBAL REAL ESTATE MIST TURNER MID CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- --------------------------------- 2010 2009 2010 2009 ---------------- ------------- --------------- ------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 6,777,671 $ 1,094,435 $ (1,052,221) $ (702,339) Net realized gains (losses) (1,407,595) (3,927,292) (238,041) (3,199,344) Change in unrealized gains (losses) on investments 10,898,100 28,010,276 16,851,840 20,390,571 ---------------- ------------- --------------- ------------- Net increase (decrease) in net assets resulting from operations 16,268,176 25,177,419 15,561,578 16,488,888 ---------------- ------------- --------------- ------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 25,322,980 13,577,318 12,031,375 6,825,058 Net transfers (including fixed account) 6,872,912 1,492,861 4,219,138 (338,209) Contract charges (743,161) (492,700) (401,167) (264,019) Transfers for contract benefits and terminations (6,511,048) (5,599,109) (3,352,777) (2,298,537) ---------------- ------------- --------------- ------------- Net increase (decrease) in net assets resulting from contract transactions 24,941,683 8,978,370 12,496,569 3,924,293 ---------------- ------------- --------------- ------------- Net increase (decrease) in net assets 41,209,859 34,155,789 28,058,147 20,413,181 NET ASSETS: Beginning of year 98,120,895 63,965,106 55,630,594 35,217,413 ---------------- ------------- --------------- ------------- End of year $ 139,330,754 $ 98,120,895 $ 83,688,741 $ 55,630,594 ================ ============== =============== ==============
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 68 MIST GOLDMAN SACHS MID CAP VALUE MIST METLIFE DEFENSIVE STRATEGY MIST METLIFE MODERATE STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ------------------------------------- ------------------------------------- 2010 2009 2010 2009 2010 2009 ---------------- ------------------ ------------------ ------------------ ------------------ ------------------ $ (611,735) $ (285,815) $ 24,675,209 $ 14,285,976 $ 21,827,918 $ 26,502,192 (1,042,195) (5,598,321) 6,974,977 13,352,866 (1,300,604) 27,972,825 20,162,482 24,667,040 129,661,482 207,905,178 249,479,440 327,614,224 ---------------- ------------------ ------------------ ------------------ ------------------ ------------------ 18,508,552 18,782,904 161,311,668 235,544,020 270,006,754 382,089,241 ---------------- ------------------ ------------------ ------------------ ------------------ ------------------ 16,294,780 46,636 289,119,491 214,143,790 566,634,946 382,099,405 4,973,575 (5,802,925) 209,055,614 210,670,824 221,642,130 158,217,461 (421,017) (419,044) (13,246,517) (8,298,113) (18,256,739) (11,449,813) (4,968,579) (3,914,680) (108,776,548) (73,393,069) (134,165,438) (93,949,243) ---------------- ------------------ ------------------ ------------------ ------------------ ------------------ 15,878,759 (10,090,013) 376,152,040 343,123,432 635,854,899 434,917,810 ---------------- ------------------ ------------------ ------------------ ------------------ ------------------ 34,387,311 8,692,891 537,463,708 578,667,452 905,861,653 817,007,051 77,628,353 68,935,462 1,466,386,791 887,719,339 2,188,428,006 1,371,420,955 ---------------- ------------------ ------------------ ------------------ ------------------ ------------------ $ 112,015,664 $ 77,628,353 $ 2,003,850,499 $ 1,466,386,791 $ 3,094,289,659 $ 2,188,428,006 ================ ================== ================== ================== ================== ==================
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, 2010 AND 2009 MIST METLIFE BALANCED STRATEGY MIST METLIFE GROWTH STRATEGY SUB-ACCOUNT SUB-ACCOUNT ------------------------------------- ------------------------------------- 2010 2009 2010 2009 ------------------ ------------------ ------------------ ------------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 23,823,222 $ (63,616,568) $ 4,153,595 $ (70,638,840) Net realized gains (losses) (8,304,795) (39,830,891) (69,645,465) (126,970,726) Change in unrealized gains (losses) on investments 615,445,203 1,040,029,640 719,869,373 1,313,230,729 ------------------ ------------------ ------------------ ------------------ Net increase (decrease) in net assets resulting from operations 630,963,630 936,582,181 654,377,503 1,115,621,163 ------------------ ------------------ ------------------ ------------------ CONTRACT TRANSACTIONS: Purchase payments received from contract owners 999,224,042 610,294,471 209,101,091 366,476,905 Net transfers (including fixed account) 306,719,217 139,386,054 (103,089,847) (199,867,285) Contract charges (39,416,993) (29,471,803) (44,853,911) (41,661,343) Transfers for contract benefits and terminations (292,332,034) (208,445,256) (229,225,934) (173,118,459) ------------------ ------------------ ------------------ ------------------ Net increase (decrease) in net assets resulting from contract transactions 974,194,232 511,763,466 (168,068,601) (48,170,182) ------------------ ------------------ ------------------ ------------------ Net increase (decrease) in net assets 1,605,157,862 1,448,345,647 486,308,902 1,067,450,981 NET ASSETS: Beginning of year 4,832,135,577 3,383,789,930 5,026,063,304 3,958,612,323 ------------------ ------------------ ------------------ ------------------ End of year $ 6,437,293,439 $ 4,832,135,577 $ 5,512,372,206 $ 5,026,063,304 ================== ================== ================== ==================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 70 MIST METLIFE AGGRESSIVE STRATEGY MIST VAN KAMPEN COMSTOCK MIST LEGG MASON VALUE EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ----------------------------------- --------------------------------- 2010 2009 2010 2009 2010 2009 ---------------- -------------- ---------------- -------------- --------------- ------------- $ (1,990,286) $ (5,510,343) $ (119,726) $ (460,408) $ 348,007 $ (16,433) (7,464,595) (16,962,168) 104,490 (1,068,540) (1,107,947) (3,027,666) 73,777,886 115,113,676 25,565,625 34,431,722 6,128,692 22,636,627 ---------------- -------------- ---------------- -------------- --------------- ------------- 64,323,005 92,641,165 25,550,389 32,902,774 5,368,752 19,592,528 ---------------- -------------- ---------------- -------------- --------------- ------------- 73,554,766 41,759,162 45,629,577 27,885,743 16,314,286 13,698,004 (2,887,628) (5,756,557) 10,047,975 66,012,743 4,334,364 2,844,859 (2,698,799) (2,281,803) (973,881) (479,581) (575,256) (363,256) (21,726,238) (16,233,770) (10,735,249) (5,930,902) (4,087,428) (2,923,377) ---------------- -------------- ---------------- -------------- --------------- ------------- 46,242,101 17,487,032 43,968,422 87,488,003 15,985,966 13,256,230 ---------------- -------------- ---------------- -------------- --------------- ------------- 110,565,106 110,128,197 69,518,811 120,390,777 21,354,718 32,848,758 412,402,731 302,274,534 161,042,507 40,651,730 77,277,821 44,429,063 ---------------- -------------- ---------------- -------------- --------------- ------------- $ 522,967,837 $ 412,402,731 $ 230,561,318 $ 161,042,507 $ 98,632,539 $ 77,277,821 ================ ============== ================ ============== =============== =============
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, 2010 AND 2009 MIST MFS EMERGING MARKETS EQUITY MIST LOOMIS SAYLES GLOBAL MARKETS SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ------------------------------------- 2010 2009 2010 2009 ---------------- --------------- ---------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (1,558,940) $ (194,930) $ 1,306,860 $ 175,348 Net realized gains (losses) 184,674 (1,132,770) (479,440) (3,107,251) Change in unrealized gains (losses) on investments 57,796,915 56,909,602 17,346,226 21,190,524 ---------------- --------------- ---------------- --------------- Net increase (decrease) in net assets resulting from operations 56,422,649 55,581,902 18,173,646 18,258,621 ---------------- --------------- ---------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 98,823,178 47,544,106 23,179,133 10,702,120 Net transfers (including fixed account) 33,608,948 32,034,394 23,135,238 5,516,677 Contract charges (1,721,209) (694,901) (622,257) (370,960) Transfers for contract benefits and terminations (11,726,391) (5,126,179) (4,077,382) (2,073,246) ---------------- --------------- ---------------- --------------- Net increase (decrease) in net assets resulting from contract transactions 118,984,526 73,757,420 41,614,732 13,774,591 ---------------- --------------- ---------------- --------------- Net increase (decrease) in net assets 175,407,175 129,339,322 59,788,378 32,033,212 NET ASSETS: Beginning of year 189,762,080 60,422,758 77,383,467 45,350,255 ---------------- --------------- ---------------- --------------- End of year $ 365,169,255 $ 189,762,080 $ 137,171,845 $ 77,383,467 ================ =============== ================ ===============
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 72 MIST JANUS FORTY MIST DREMAN SMALL CAP VALUE MIST PIONEER FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------- --------------------------------- ---------------------------------- 2010 2009 2010 2009 2010 2009 --------------- ----------------- --------------- ----------------- ---------------- ----------------- $ (133,826) $ (298,143) $ (203,405) $ (138,611) $ (478,869) $ 33,212 36,628 (800,679) 154,017 (293,997) 88,907 (31,424) 3,912,856 6,731,098 3,630,265 4,683,332 13,686,623 8,417,448 --------------- ----------------- --------------- ----------------- ---------------- ----------------- 3,815,658 5,632,276 3,580,877 4,250,724 13,296,661 8,419,236 --------------- ----------------- --------------- ----------------- ---------------- ----------------- 20,304,418 5,269,399 4,622,090 4,183,333 43,813,736 25,641,164 9,195,931 2,113,444 (1,986,526) (287,971) 6,452,572 3,919,423 (235,237) (129,910) (171,270) (116,706) (405,987) (107,948) (1,589,721) (2,510,153) (1,193,285) (715,969) (3,551,027) (1,011,033) --------------- ----------------- --------------- ----------------- ---------------- ----------------- 27,675,391 4,742,780 1,271,009 3,062,687 46,309,294 28,441,606 --------------- ----------------- --------------- ----------------- ---------------- ----------------- 31,491,049 10,375,056 4,851,886 7,313,411 59,605,955 36,860,842 21,865,637 11,490,581 19,575,088 12,261,677 53,308,711 16,447,869 --------------- ----------------- --------------- ----------------- ---------------- ----------------- $ 53,356,686 $ 21,865,637 $ 24,426,974 $ 19,575,088 $ 112,914,666 $ 53,308,711 =============== ================= =============== ================= ================ =================
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, 2010 AND 2009 MIST PIONEER STRATEGIC INCOME MIST BLACKROCK LARGE CAP CORE SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- -------------------------------- 2010 2009 2010 2009 -------------- ---------------- -------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 10,372,053 $ 6,029,903 $ (52,523) $ (18,960) Net realized gains (losses) 393,452 (191,058) (80,252) (301,081) Change in unrealized gains (losses) on investments 20,915,857 42,593,196 1,037,963 1,074,214 -------------- ---------------- -------------- ---------------- Net increase (decrease) in net assets resulting from operations 31,681,362 48,432,041 905,188 754,173 -------------- ---------------- -------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 122,502,926 76,452,855 3,102,112 838,893 Net transfers (including fixed account) 35,965,663 7,690,397 1,040,120 144,646 Contract charges (1,532,681) (656,970) (53,878) (31,944) Transfers for contract benefits and terminations (20,015,981) (9,969,287) (458,682) (226,128) -------------- ---------------- -------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions 136,919,927 73,516,995 3,629,672 725,467 -------------- ---------------- -------------- ---------------- Net increase (decrease) in net assets 168,601,289 121,949,036 4,534,860 1,479,640 NET ASSETS: Beginning of year 251,000,578 129,051,542 5,078,728 3,599,088 -------------- ---------------- -------------- ---------------- End of year $ 419,601,867 $ 251,000,578 $ 9,613,588 $ 5,078,728 ============== ================ ============== ================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 74 MIST BLACKROCK HIGH YIELD MIST RAINIER LARGE CAP EQUITY MIST AMERICAN FUNDS BALANCED ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- --------------------------------- ------------------------------------------ 2010 2009 2010 2009 2010 2009 ---------------- ----------------- --------------- ----------------- ------------------ ----------------------- $ 5,677,284 $ 1,095,795 $ (418,759) $ (217,515) $ (9,940,079) $ (12,236,408) 7,521,614 422,595 (368,008) (3,536,480) 1,431,438 191,299 4,162,987 18,932,338 5,878,677 9,381,760 218,397,822 219,603,120 ---------------- ----------------- --------------- ----------------- ------------------ ----------------------- 17,361,885 20,450,728 5,091,910 5,627,765 209,889,181 207,558,011 ---------------- ----------------- --------------- ----------------- ------------------ ----------------------- 48,324,470 27,978,785 8,349,710 9,306,349 780,028,567 542,325,700 25,077,556 40,605,633 (344,347) (2,781,759) 248,657,423 260,661,354 (890,146) (298,135) (271,652) (166,701) (14,036,590) (4,189,539) (7,785,000) (2,168,156) (1,335,546) (1,235,750) (61,424,966) (24,044,834) ---------------- ----------------- --------------- ----------------- ------------------ ----------------------- 64,726,880 66,118,127 6,398,165 5,122,139 953,224,434 774,752,681 ---------------- ----------------- --------------- ----------------- ------------------ ----------------------- 82,088,765 86,568,855 11,490,075 10,749,904 1,163,113,615 982,310,692 100,278,538 13,709,683 34,404,016 23,654,112 1,315,175,709 332,865,017 ---------------- ----------------- --------------- ----------------- ------------------ ----------------------- $ 182,367,303 $ 100,278,538 $ 45,894,091 $ 34,404,016 $ 2,478,289,324 $ 1,315,175,709 ================ ================= =============== ================= ================== =======================
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, 2010 AND 2009 MIST AMERICAN FUNDS BOND MIST AMERICAN FUNDS GROWTH SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ----------------------------------- 2010 2009 2010 2009 ---------------- ------------------ ---------------- ------------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 122,992 $ (1,269,526) $ (4,592,485) $ (2,182,895) Net realized gains (losses) 228,924 28,504 791,765 (519,260) Change in unrealized gains (losses) on investments 6,583,360 8,847,600 65,409,390 49,442,762 ---------------- ------------------ ---------------- ------------------ Net increase (decrease) in net assets resulting from operations 6,935,276 7,606,578 61,608,670 46,740,607 ---------------- ------------------ ---------------- ------------------ CONTRACT TRANSACTIONS: Purchase payments received from contract owners 95,186,014 62,636,955 154,860,118 103,582,571 Net transfers (including fixed account) 40,265,959 46,203,898 38,314,169 37,218,397 Contract charges (1,541,781) (344,696) (2,420,201) (695,505) Transfers for contract benefits and terminations (7,200,361) (3,127,075) (10,207,058) (3,714,491) ---------------- ------------------ ---------------- ------------------ Net increase (decrease) in net assets resulting from contract transactions 126,709,831 105,369,082 180,547,028 136,390,972 ---------------- ------------------ ---------------- ------------------ Net increase (decrease) in net assets 133,645,107 112,975,660 242,155,698 183,131,579 NET ASSETS: Beginning of year 141,146,685 28,171,025 238,097,827 54,966,248 ---------------- ------------------ ---------------- ------------------ End of year $ 274,791,792 $ 141,146,685 $ 480,253,525 $ 238,097,827 ================ ================== ================ ==================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 76 MIST AMERICAN FUNDS GROWTH ALLOCATION MIST AMERICAN FUNDS INTERNATIONAL MIST AMERICAN FUNDS MODERATE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------- ------------------------------------ ----------------------------------------- 2010 2009 2010 2009 2010 2009 ------------------ --------------------- ---------------- ------------------- ------------------ ----------------------- $ (8,649,027) $ (13,577,682) $ (1,838,588) $ (1,592,046) $ (1,746,826) $ (7,890,743) 4,410,087 841,106 590,124 (265,007) 442,079 4,019 148,410,760 282,438,706 18,687,175 38,360,906 99,071,297 114,712,832 ------------------ --------------------- ---------------- ------------------- ------------------ ----------------------- 144,171,820 269,702,130 17,438,711 36,503,853 97,766,550 106,826,108 ------------------ --------------------- ---------------- ------------------- ------------------ ----------------------- 180,475,839 328,976,500 99,256,032 67,379,015 427,726,570 350,843,448 18,088,978 119,673,133 24,122,092 22,261,881 133,946,313 173,945,155 (11,094,760) (6,021,052) (1,627,834) (553,760) (9,314,240) (2,681,289) (41,629,664) (22,708,729) (6,247,664) (2,420,645) (37,039,718) (13,664,347) ------------------ --------------------- ---------------- ------------------- ------------------ ----------------------- 145,840,393 419,919,852 115,502,626 86,666,491 515,318,925 508,442,967 ------------------ --------------------- ---------------- ------------------- ------------------ ----------------------- 290,012,213 689,621,982 132,941,337 123,170,344 613,085,475 615,269,075 1,164,848,803 475,226,821 168,980,812 45,810,468 839,089,528 223,820,453 ------------------ --------------------- ---------------- ------------------- ------------------ ----------------------- $ 1,454,861,016 $ 1,164,848,803 $ 301,922,149 $ 168,980,812 $ 1,452,175,003 $ 839,089,528 ================== ===================== ================ =================== ================== =======================
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, 2010 AND 2009 MIST MET/FRANKLIN TEMPLETON MIST MET/FRANKLIN MUTUAL SHARES FOUNDING STRATEGY SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ----------------------------------- 2010 2009 2010 2009 ---------------- ----------------- ---------------- ------------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (1,390,510) $ (549,255) $ (7,646,828) $ (5,049,630) Net realized gains (losses) 1,266,548 (53,543) 2,432,686 451,638 Change in unrealized gains (losses) on investments 9,275,276 9,923,609 46,152,780 92,147,991 ---------------- ----------------- ---------------- ------------------ Net increase (decrease) in net assets resulting from operations 9,151,314 9,320,811 40,938,638 87,549,999 ---------------- ----------------- ---------------- ------------------ CONTRACT TRANSACTIONS: Purchase payments received from contract owners 35,685,384 21,824,367 90,556,345 107,223,575 Net transfers (including fixed account) 17,119,197 19,440,639 24,451,171 64,570,368 Contract charges (611,489) (175,693) (4,270,744) (2,316,785) Transfers for contract benefits and terminations (2,680,809) (996,731) (19,144,666) (11,687,873) ---------------- ----------------- ---------------- ------------------ Net increase (decrease) in net assets resulting from contract transactions 49,512,283 40,092,582 91,592,106 157,789,285 ---------------- ----------------- ---------------- ------------------ Net increase (decrease) in net assets 58,663,597 49,413,393 132,530,744 245,339,284 NET ASSETS: Beginning of year 62,452,238 13,038,845 438,687,403 193,348,119 ---------------- ----------------- ---------------- ------------------ End of year $ 121,115,835 $ 62,452,238 $ 571,218,147 $ 438,687,403 ================ ================= ================ ==================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 78 MIST SSGA GROWTH ETF MIST SSGA GROWTH AND INCOME ETF MIST MET/TEMPLETON INTERNATIONAL BOND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ----------------------------------- --------------------------------------- 2010 2009 2010 2009 2010 2009 (a) ---------------- ------------------ ---------------- ------------------ --------------- ------------------------ $ (475,732) $ (500,314) $ (2,837,549) $ (964,411) $ (202,517) $ (28,316) 1,702,495 1,358,621 133,539 278,018 44,288 2,410 29,566,077 26,439,276 78,303,612 34,296,659 2,042,343 237,577 ---------------- ------------------ ---------------- ------------------ --------------- ------------------------ 30,792,840 27,297,583 75,599,602 33,610,266 1,884,114 211,671 ---------------- ------------------ ---------------- ------------------ --------------- ------------------------ 80,239,314 86,105,143 380,468,433 183,863,776 17,534,053 4,368,717 59,618,400 50,157,768 246,936,681 96,458,703 9,043,816 3,873,921 (1,658,321) (168,097) (4,250,216) (172,125) (128,805) (3,092) (6,830,381) (1,590,434) (17,106,759) (2,286,739) (469,277) (12,693) ---------------- ------------------ ---------------- ------------------ --------------- ------------------------ 131,369,012 134,504,380 606,048,139 277,863,615 25,979,787 8,226,853 ---------------- ------------------ ---------------- ------------------ --------------- ------------------------ 162,161,852 161,801,963 681,647,741 311,473,881 27,863,901 8,438,524 163,291,494 1,489,531 314,125,011 2,651,130 8,438,524 -- ---------------- ------------------ ---------------- ------------------ --------------- ------------------------ $ 325,453,346 $ 163,291,494 $ 995,772,752 $ 314,125,011 $ 36,302,425 $ 8,438,524 ================ ================== ================ ================== =============== ========================
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, 2010 AND 2009 MIST MIST MET/TEMPLETON MET/EATON VANCE GROWTH FLOATING RATE INVESCO V.I. CORE EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------- ------------------ --------------------------- 2010 (b) 2010 (b) 2010 2009 ---------------- ------------------ ------------ -------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (52,847) $ (68,479) $ (1,724) $ 1,360 Net realized gains (losses) (6,335) 3,564 604 (16,052) Change in unrealized gains (losses) on investments 499,282 384,248 31,231 103,659 ---------------- ------------------ ------------ -------------- Net increase (decrease) in net assets resulting from operations 440,100 319,333 30,111 88,967 ---------------- ------------------ ------------ -------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners 2,919,536 6,853,875 -- -- Net transfers (including fixed account) 4,153,672 9,283,240 (4,682) (10,577) Contract charges (5,446) (16,372) -- -- Transfers for contract benefits and terminations (127,457) (105,761) (39,341) (62,473) ---------------- ------------------ ------------ -------------- Net increase (decrease) in net assets resulting from contract transactions 6,940,305 16,014,982 (44,023) (73,050) ---------------- ------------------ ------------ -------------- Net increase (decrease) in net assets 7,380,405 16,334,315 (13,912) 15,917 NET ASSETS: Beginning of year -- -- 407,845 391,928 ---------------- ------------------ ------------ -------------- End of year $ 7,380,405 $ 16,334,315 $ 393,933 $ 407,845 ================ ================== ============ ==============
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 80 INVESCO V.I. CAPITAL APPRECIATION INVESCO V.I. INTERNATIONAL GROWTH INVESCO V.I. BASIC BALANCED SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------ ----------------------------------- ------------------------------- 2010 2009 2010 2009 2010 2009 ------------ --------------------- ---------------- ---------------- ------------ ---------------- $ (951) $ (1,132) $ 562,475 $ 176,901 $ 1,348 $ 8,459 (6,842) (16,131) 41,708 (59,133) (6,291) (57,173) 26,623 42,046 10,609,535 13,640,583 20,472 111,144 ------------ --------------------- ---------------- ---------------- ------------ ---------------- 18,830 24,783 11,213,718 13,758,351 15,529 62,430 ------------ --------------------- ---------------- ---------------- ------------ ---------------- -- -- 36,782,367 23,590,536 -- -- (43) (3,492) 2,732,799 1,766,090 (3,757) (38,367) -- -- (509,705) (252,722) -- -- (33,542) (24,515) (3,646,505) (1,507,974) (17,482) (50,744) ------------ --------------------- ---------------- ---------------- ------------ ---------------- (33,585) (28,007) 35,358,956 23,595,930 (21,239) (89,111) ------------ --------------------- ---------------- ---------------- ------------ ---------------- (14,755) (3,224) 46,572,674 37,354,281 (5,710) (26,681) 157,420 160,644 65,315,391 27,961,110 262,318 288,999 ------------ --------------------- ---------------- ---------------- ------------ ---------------- $ 142,665 $ 157,420 $ 111,888,065 $ 65,315,391 $ 256,608 $ 262,318 ============ ===================== ================ ================ ============ ================
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, 2010 AND 2009 INVESCO V.I. GLOBAL REAL ESTATE INVESCO V.I. CAPITAL GROWTH SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ------------------------------ 2010 2009 2010 2009 -------------- ------------------- ------------ ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 262,267 $ (43,055) $ (1,663) $ (1,273) Net realized gains (losses) (35,497) (195,448) (661) (11,410) Change in unrealized appreciation (depreciation) on investments 795,938 1,256,847 22,436 61,642 -------------- ------------------- ------------ ----------------- Net increase (decrease) in net assets resulting from operations 1,022,708 1,018,344 20,112 48,959 -------------- ------------------- ------------ ----------------- CONTRACT TRANSACTIONS: Payments received from contract owners 3,138,876 1,457,840 -- -- Net transfers (including fixed account) 418,871 140,769 (50) (3,531) Contract charges (40,040) (21,122) -- -- Transfers for contract benefits & terminations (298,589) (169,585) (6,344) (17,305) -------------- ------------------- ------------ ----------------- Net increase (decrease) in net assets resulting from contract transactions 3,219,118 1,407,902 (6,394) (20,836) -------------- ------------------- ------------ ----------------- Net increase (decrease) in net assets 4,241,826 2,426,246 13,718 28,123 NET ASSETS: Beginning of year 4,786,308 2,360,062 117,046 88,923 -------------- ------------------- ------------ ----------------- End of year $ 9,028,134 $ 4,786,308 $ 130,764 $ 117,046 ============== =================== ============ =================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 82 INVESCO V.I. GROWTH AND INCOME INVESCO V.I. EQUITY AND INCOME INVESCO V.I. U.S. MID CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ----------------------------------- ---------------------------------- 2010 2009 2010 2009 2010 2009 ---------------- ----------------- ---------------- ------------------ --------------- ------------------ $ (1,665,286) $ 1,695,011 $ 1,428,806 $ 2,636,596 $ (112,096) $ (16,876) 5,754 (72,754) (177,941) (1,942,156) 20,908 (183,244) 16,781,592 17,669,646 29,567,980 39,158,557 4,289,045 3,959,933 ---------------- ----------------- ---------------- ------------------ --------------- ------------------ 15,122,060 19,291,903 30,818,845 39,852,997 4,197,857 3,759,813 ---------------- ----------------- ---------------- ------------------ --------------- ------------------ 40,927,969 31,207,291 75,371,131 63,347,128 9,830,122 4,910,207 4,412,046 3,908,767 7,697,762 858,130 (335,610) (49,234) (662,294) (338,292) (1,230,553) (633,902) (125,359) (68,356) (6,967,310) (3,982,405) (16,932,459) (12,262,683) (829,616) (345,188) ---------------- ----------------- ---------------- ------------------ --------------- ------------------ 37,710,411 30,795,361 64,905,881 51,308,673 8,539,537 4,447,429 ---------------- ----------------- ---------------- ------------------ --------------- ------------------ 52,832,471 50,087,264 95,724,726 91,161,670 12,737,394 8,207,242 107,604,807 57,517,543 249,400,082 158,238,412 15,401,650 7,194,408 ---------------- ----------------- ---------------- ------------------ --------------- ------------------ $ 160,437,278 $ 107,604,807 $ 345,124,808 $ 249,400,082 $ 28,139,044 $ 15,401,650 ================ ================= ================ ================== =============== ==================
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, 2010 AND 2009 MFS VIT RESEARCH MFS VIT INVESTORS TRUST SUB-ACCOUNT SUB-ACCOUNT -------------------------- -------------------------- 2010 2009 2010 2009 ------------ ------------- ----------- -------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (531) $ 35 $ (45) $ 176 Net realized gains (losses) 1,434 (3,435) (490) (1,543) Change in unrealized appreciation (depreciation) on investments 14,248 27,152 3,782 12,125 ------------ ------------- ----------- -------------- Net increase (decrease) in net assets resulting from operations 15,151 23,752 3,247 10,758 ------------ ------------- ----------- -------------- CONTRACT TRANSACTIONS: Payments received from contract owners -- -- -- -- Net transfers (including fixed account) -- (3,812) -- -- Contract charges -- -- -- -- Transfers for contract benefits & terminations (13,820) (3,398) (12,601) (6,391) ------------ ------------- ----------- -------------- Net increase (decrease) in net assets resulting from contract transactions (13,820) (7,210) (12,601) (6,391) ------------ ------------- ----------- -------------- Net increase (decrease) in net assets 1,331 16,542 (9,354) 4,367 NET ASSETS: Beginning of year 111,057 94,515 52,758 48,391 ------------ ------------- ----------- -------------- End of year $ 112,388 $ 111,057 $ 43,404 $ 52,758 ============ ============= =========== ==============
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 84 MFS VIT NEW DISCOVERY OPPENHEIMER VA MAIN STREET OPPENHEIMER VA CORE BOND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ----------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 ----------- -------------- ------------ ---------------- ---------- ---------------- $ (676) $ (574) $ (333) $ 611 $ 781 $ (865) 1,723 (10,436) (1,607) (3,478) (25,321) (34,236) 13,838 31,574 17,514 30,582 27,071 34,717 ----------- -------------- ------------ ---------------- ---------- ---------------- 14,885 20,564 15,574 27,715 2,531 (384) ----------- -------------- ------------ ---------------- ---------- ---------------- -- -- -- -- -- -- (323) (19,686) -- -- -- (21,078) -- -- -- -- -- -- (13,188) (41) (17,151) (15,288) (50,402) (16,787) ----------- -------------- ------------ ---------------- ---------- ---------------- (13,511) (19,727) (17,151) (15,288) (50,402) (37,865) ----------- -------------- ------------ ---------------- ---------- ---------------- 1,374 837 (1,577) 12,427 (47,871) (38,249) 45,491 44,654 120,826 108,399 57,756 96,005 ----------- -------------- ------------ ---------------- ---------- ---------------- $ 46,865 $ 45,491 $ 119,249 $ 120,826 $ 9,885 $ 57,756 =========== ============== ============ ================ ========== ================
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, 2010 AND 2009 OPPENHEIMER VA GLOBAL STRATEGIC INCOME OPPENHEIMER VA MAIN STREET SMALL CAP SUB-ACCOUNT SUB-ACCOUNT -------------------------------------- ------------------------------------ 2010 2009 2010 2009 ---------- -------------------------- --------------- ------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 1,178 $ (115) $ (533,716) $ (245,661) Net realized gains (losses) 610 (83) 126,865 (27,101) Change in unrealized appreciation (depreciation) on investments (781) 2,311 12,065,565 10,675,311 ---------- -------------------------- --------------- ------------------- Net increase (decrease) in net assets resulting from operations 1,007 2,113 11,658,714 10,402,549 ---------- -------------------------- --------------- ------------------- CONTRACT TRANSACTIONS: Payments received from contract owners -- -- 18,693,771 14,554,796 Net transfers (including fixed account) -- -- (1,159,906) 818,939 Contract charges -- -- (343,300) (175,957) Transfers for contract benefits & terminations (11,485) (792) (2,399,412) (1,090,745) ---------- -------------------------- --------------- ------------------- Net increase (decrease) in net assets resulting from contract transactions (11,485) (792) 14,791,153 14,107,033 ---------- -------------------------- --------------- ------------------- Net increase (decrease) in net assets (10,478) 1,321 26,449,867 24,509,582 NET ASSETS: Beginning of year 14,575 13,254 43,881,910 19,372,328 ---------- -------------------------- --------------- ------------------- End of year $ 4,097 $ 14,575 $ 70,331,777 $ 43,881,910 ========== =========================== =============== ====================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 86 OPPENHEIMER VA MONEY FIDELITY VIP ASSET MANAGER FIDELITY VIP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- ---------------------------------- ----------------------------------- 2010 2009 2010 2009 2010 2009 ------------ -------------- ---------------- ----------------- ---------------- ------------------ $ (1,605) $ (1,340) $ 303,216 $ 950,626 $ (1,406,064) $ (1,021,896) -- -- (1,337,144) (3,930,612) (2,035,626) (5,620,142) -- -- 12,924,187 25,436,293 30,948,642 34,339,329 ------------ -------------- ---------------- ----------------- ---------------- ------------------ (1,605) (1,340) 11,890,259 22,456,307 27,506,952 27,697,291 ------------ -------------- ---------------- ----------------- ---------------- ------------------ -- -- 2,625,696 3,045,081 5,252,607 5,974,891 -- -- (3,532,576) (4,201,921) (4,311,860) (5,240,430) -- -- (17,088) (19,514) (28,747) (33,667) (2) (30,396) (11,293,877) (7,713,451) (11,675,407) (9,169,633) ------------ -------------- ---------------- ----------------- ---------------- ------------------ (2) (30,396) (12,217,845) (8,889,805) (10,763,407) (8,468,839) ------------ -------------- ---------------- ----------------- ---------------- ------------------ (1,607) (31,736) (327,586) 13,566,502 16,743,545 19,228,452 117,917 149,653 102,112,475 88,545,973 130,641,959 111,413,507 ------------ -------------- ---------------- ----------------- ---------------- ------------------ $ 116,310 $ 117,917 $ 101,784,889 $ 102,112,475 $ 147,385,504 $ 130,641,959 ============ ============== ================ ================= ================ ==================
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, 2010 AND 2009 FIDELITY VIP CONTRAFUND FIDELITY VIP OVERSEAS SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ------------------------------- 2010 2009 2010 2009 ---------------- ------------------ -------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (350,918) $ 229,547 $ 7,515 $ 49,646 Net realized gains (losses) (2,817,261) (8,147,043) (210,565) (335,524) Change in unrealized appreciation (depreciation) on investments 54,045,265 85,877,398 839,726 1,550,624 ---------------- ------------------ -------------- ---------------- Net increase (decrease) in net assets resulting from operations 50,877,086 77,959,902 636,676 1,264,746 ---------------- ------------------ -------------- ---------------- CONTRACT TRANSACTIONS: Payments received from contract owners 48,392,314 37,790,703 110,002 129,298 Net transfers (including fixed account) (4,433,949) (5,777,656) (181,503) (11,251) Contract charges (680,969) (373,565) (61) (70) Transfers for contract benefits & terminations (27,989,530) (18,696,848) (581,613) (513,397) ---------------- ------------------ -------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions 15,287,866 12,942,634 (653,175) (395,420) ---------------- ------------------ -------------- ---------------- Net increase (decrease) in net assets 66,164,952 90,902,536 (16,499) 869,326 NET ASSETS: Beginning of year 313,576,644 222,674,108 6,282,775 5,413,449 ---------------- ------------------ -------------- ---------------- End of year $ 379,741,596 $ 313,576,644 $ 6,266,276 $ 6,282,775 ================ ================== ============== ================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 88 FIDELITY VIP EQUITY-INCOME FIDELITY VIP INDEX 500 FIDELITY VIP MONEY MARKET SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------- --------------------------------- ------------------------------------ 2010 2009 2010 2009 2010 2009 -------------- ----------------- --------------- ----------------- ----------------- ------------------ $ 21,440 $ 49,168 $ 349,575 $ 736,951 $ (1,226,178) $ (268,588) (368,831) (854,761) 747,147 (1,065,596) 49,334 -- 1,122,280 2,262,987 7,212,312 14,484,264 -- -- -------------- ----------------- --------------- ----------------- ----------------- ------------------ 774,889 1,457,394 8,309,034 14,155,619 (1,176,844) (268,588) -------------- ----------------- --------------- ----------------- ----------------- ------------------ 42,332 19,311 1 3,054 1,083,470,105 54,255,706 (216,013) (257,254) (2,819,598) (3,083,161) (1,061,048,748) (40,739,904) -- -- (29,920) (34,782) (5,638) (7,822) (789,438) (800,253) (7,037,362) (5,126,122) (4,468,030) (4,368,200) -------------- ----------------- --------------- ----------------- ----------------- ------------------ (963,119) (1,038,196) (9,886,879) (8,241,011) 17,947,689 9,139,780 -------------- ----------------- --------------- ----------------- ----------------- ------------------ (188,230) 419,198 (1,577,845) 5,914,608 16,770,845 8,871,192 6,538,981 6,119,783 70,079,047 64,164,439 50,572,988 41,701,796 -------------- ----------------- --------------- ----------------- ----------------- ------------------ $ 6,350,751 $ 6,538,981 $ 68,501,202 $ 70,079,047 $ 67,343,833 $ 50,572,988 ============== ================= =============== ================= ================= ==================
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, 2010 AND 2009 FIDELITY VIP MID CAP FIDELITY VIP FUNDSMANAGER 60% SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ------------------------------------ 2010 2009 2010 2009 (c) ---------------- ----------------- ------------------ ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (1,744,848) $ (629,458) $ 3,900,321 $ 401,046 Net realized gains (losses) 558,154 312,025 2,447,161 38,717 Change in unrealized appreciation (depreciation) on investments 36,279,089 24,075,131 84,722,208 (356,360) ---------------- ----------------- ------------------ ----------------- Net increase (decrease) in net assets resulting from operations 35,092,395 23,757,698 91,069,690 83,403 ---------------- ----------------- ------------------ ----------------- CONTRACT TRANSACTIONS: Payments received from contract owners 56,263,722 33,950,852 605,734 (1,091,042) Net transfers (including fixed account) (555,816) 3,031,315 1,058,443,175 37,223,652 Contract charges (681,019) (268,436) -- -- Transfers for contract benefits & terminations (6,657,156) (3,171,116) (9,735,236) (689) ---------------- ----------------- ------------------ ----------------- Net increase (decrease) in net assets resulting from contract transactions 48,369,731 33,542,615 1,049,313,673 36,131,921 ---------------- ----------------- ------------------ ----------------- Net increase (decrease) in net assets 83,462,126 57,300,313 1,140,383,363 36,215,324 NET ASSETS: Beginning of year 103,784,411 46,484,098 36,215,324 -- ---------------- ----------------- ------------------ ----------------- End of year $ 187,246,537 $ 103,784,411 $ 1,176,598,687 $ 36,215,324 ================ ================= ================== =================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 90 DWS INTERNATIONAL MSF FI VALUE LEADERS MSF RUSSELL 2000 INDEX SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------- ------------------------------- --------------------------------- 2010 2009 2010 2009 2010 2009 --------------- ----------------- -------------- ---------------- --------------- ----------------- $ 171,534 $ 588,316 $ (15,392) $ 30,744 $ (198,940) $ 20,581 (987,076) (1,165,546) (191,128) (302,926) 84,268 (560,773) 751,044 6,007,926 775,693 956,728 7,422,690 2,716,791 --------------- ----------------- -------------- ---------------- --------------- ----------------- (64,498) 5,430,696 569,173 684,546 7,308,018 2,176,599 --------------- ----------------- -------------- ---------------- --------------- ----------------- 1,099,752 1,284,790 930,358 230,413 17,061,843 5,084,961 (923,121) (465,091) 234,046 73,108 8,588,645 3,198,545 (3,204) (3,929) (26,263) (20,896) (110,588) (3,189) (1,991,327) (1,509,984) (512,619) (117,899) (1,392,164) (417,963) --------------- ----------------- -------------- ---------------- --------------- ----------------- (1,817,900) (694,214) 625,522 164,726 24,147,736 7,862,354 --------------- ----------------- -------------- ---------------- --------------- ----------------- (1,882,398) 4,736,482 1,194,695 849,272 31,455,754 10,038,953 22,845,161 18,108,679 4,072,835 3,223,563 15,337,009 5,298,056 --------------- ----------------- -------------- ---------------- --------------- ----------------- $ 20,962,763 $ 22,845,161 $ 5,267,530 $ 4,072,835 $ 46,792,763 $ 15,337,009 =============== ================= ============== ================ =============== =================
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, 2010 AND 2009 MSF ARTIO INTERNATIONAL STOCK MSF METLIFE STOCK INDEX SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ----------------------------------- 2010 2009 2010 2009 -------------- ----------------- ---------------- ------------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (7,860) $ (41,775) $ (321,143) $ 845,701 Net realized gains (losses) (397,491) (536,794) (1,255,570) (2,515,307) Change in unrealized appreciation (depreciation) on investments 580,114 1,254,318 38,151,546 57,162,274 -------------- ----------------- ---------------- ------------------ Net increase (decrease) in net assets resulting from operations 174,763 675,749 36,574,833 55,492,668 -------------- ----------------- ---------------- ------------------ CONTRACT TRANSACTIONS: Payments received from contract owners 16,090 26,434 42,455,345 36,568,257 Net transfers (including fixed account) 205,234 12,211 3,607,353 38,578,203 Contract charges (1,253) (1,363) (1,245,063) (792,619) Transfers for contract benefits & terminations (370,265) (297,210) (19,449,033) (12,769,515) -------------- ----------------- ---------------- ------------------ Net increase (decrease) in net assets resulting from contract transactions (150,194) (259,928) 25,368,602 61,584,326 -------------- ----------------- ---------------- ------------------ Net increase (decrease) in net assets 24,569 415,821 61,943,435 117,076,994 NET ASSETS: Beginning of year 3,955,132 3,539,311 281,243,641 164,166,647 -------------- ----------------- ---------------- ------------------ End of year $ 3,979,701 $ 3,955,132 $ 343,187,076 $ 281,243,641 ============== ================= ================ ==================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 92 MSF BLACKROCK LEGACY LARGE CAP GROWTH MSF NEUBERGER BERMAN GENESIS MSF BLACKROCK BOND INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------------- ------------------------------- --------------------------------- 2010 2009 2010 2009 2010 2009 -------------- ------------------------- -------------- ---------------- --------------- ----------------- $ (117,547) $ (78,977) $ (71,882) $ (18,016) $ 946,236 $ 1,764,401 313,167 101,626 (650,477) (601,664) 88,985 (268,086) 1,246,529 2,007,220 2,336,728 1,528,950 1,711,245 1,156,351 -------------- ------------------------- -------------- ---------------- --------------- ----------------- 1,442,149 2,029,869 1,614,369 909,270 2,746,466 2,652,666 -------------- ------------------------- -------------- ---------------- --------------- ----------------- 718,471 409,354 913,386 1,142,383 7,431,346 7,000,686 (103,953) 5,415,621 (369,832) (409,962) (24,972) 3,408,567 (44,148) (24,684) (690) (728) (346,239) (239,391) (868,449) (442,875) (920,397) (525,459) (5,107,032) (2,881,747) -------------- ------------------------- -------------- ---------------- --------------- ----------------- (298,079) 5,357,416 (377,533) 206,234 1,953,103 7,288,115 -------------- ------------------------- -------------- ---------------- --------------- ----------------- 1,144,070 7,387,285 1,236,836 1,115,504 4,699,569 9,940,781 8,419,085 1,031,800 8,493,213 7,377,709 42,636,576 32,695,795 -------------- ------------------------- -------------- ---------------- --------------- ----------------- $ 9,563,155 $ 8,419,085 $ 9,730,049 $ 8,493,213 $ 47,336,145 $ 42,636,576 ============== ========================= ============== ================ =============== =================
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, 2010 AND 2009 MSF BLACKROCK LARGE CAP VALUE MSF BARCLAYS CAPITAL AGGREGATE BOND INDEX SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------------------- 2010 2009 2010 2009 -------------- ----------------- --------------- ---------------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (6,964) $ 5,693 $ 605,025 $ 313,687 Net realized gains (losses) (131,394) (205,113) 114,537 7,943 Change in unrealized appreciation (depreciation) on investments 334,187 443,173 572,374 76,682 -------------- ----------------- --------------- ---------------------------- Net increase (decrease) in net assets resulting from operations 195,829 243,753 1,291,936 398,312 -------------- ----------------- --------------- ---------------------------- CONTRACT TRANSACTIONS: Payments received from contract owners 206,964 219,198 39,404,408 13,077,565 Net transfers (including fixed account) 5,765 25 18,788,029 9,346,152 Contract charges (291) (269) (281,641) (7,068) Transfers for contract benefits & terminations (319,095) (144,128) (2,421,734) (817,015) -------------- ----------------- --------------- ---------------------------- Net increase (decrease) in net assets resulting from contract transactions (106,657) 74,826 55,489,062 21,599,634 -------------- ----------------- --------------- ---------------------------- Net increase (decrease) in net assets 89,172 318,579 56,780,998 21,997,946 NET ASSETS: Beginning of year 2,783,413 2,464,834 29,893,966 7,896,020 -------------- ----------------- --------------- ---------------------------- End of year $ 2,872,585 $ 2,783,413 $ 86,674,964 $ 29,893,966 ============== ================= =============== ============================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 94 MSF MFS VALUE MSF MORGAN STANLEY EAFE INDEX MSF MFS TOTAL RETURN SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------- --------------------------------- --------------------------------= 2010 2009 2010 2009 2010 2009 --------------- ----------------- --------------- ----------------- --------------- ----------------- $ (135,936) $ (439,728) $ 300,599 $ 301,592 $ 521,435 $ 927,608 (310,701) (645,688) (373,439) (165,572) (860,808) (1,798,808) 4,411,295 6,208,062 3,884,414 3,702,628 3,449,400 6,598,073 --------------- ----------------- --------------- ----------------- --------------- ----------------- 3,964,658 5,122,646 3,811,574 3,838,648 3,110,027 5,726,873 --------------- ----------------- --------------- ----------------- --------------- ----------------- 6,763,435 5,093,158 21,515,731 9,512,540 2,095,943 2,991,527 2,915,996 3,024,185 8,263,400 3,378,259 (777,300) 1,298,745 (238,593) (154,910) (160,371) (2,492) (82,268) (69,493) (1,959,275) (1,308,639) (1,694,141) (806,974) (4,441,917) (3,285,692) --------------- ----------------- --------------- ----------------- --------------- ----------------- 7,481,563 6,653,794 27,924,619 12,081,333 (3,205,542) 935,087 --------------- ----------------- --------------- ----------------- --------------- ----------------- 11,446,221 11,776,440 31,736,193 15,919,981 (95,515) 6,661,960 33,984,060 22,207,620 27,098,496 11,178,515 40,772,224 34,110,264 --------------- ----------------- --------------- ----------------- --------------- ----------------- $ 45,430,281 $ 33,984,060 $ 58,834,689 $ 27,098,496 $ 40,676,709 $ 40,772,224 =============== ================= =============== ================= =============== =================
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 -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009 MSF METLIFE MID CAP STOCK INDEX MSF DAVIS VENTURE VALUE SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ----------------------------------- 2010 2009 2010 2009 --------------- ------------------ ---------------- ------------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (260,215) $ 27,603 $ (3,847,449) $ (1,002,867) Net realized gains (losses) (14,190) 87,129 724,558 (1,256,250) Change in unrealized appreciation (depreciation) on investments 9,587,123 4,737,345 57,763,744 114,664,484 --------------- ------------------ ---------------- ------------------ Net increase (decrease) in net assets resulting from operations 9,312,718 4,852,077 54,640,853 112,405,367 --------------- ------------------ ---------------- ------------------ CONTRACT TRANSACTIONS: Payments received from contract owners 19,332,219 6,623,277 88,556,952 57,257,190 Net transfers (including fixed account) 8,788,748 2,625,094 8,497,558 3,145,313 Contract charges (121,148) (1,513) (2,997,527) (2,252,605) Transfers for contract benefits & terminations (1,822,663) (795,299) (29,777,128) (22,653,418) --------------- ------------------ ---------------- ------------------ Net increase (decrease) in net assets resulting from contract transactions 26,177,156 8,451,559 64,279,855 35,496,480 --------------- ------------------ ---------------- ------------------ Net increase (decrease) in net assets 35,489,874 13,303,636 118,920,708 147,901,847 NET ASSETS: Beginning of year 23,983,061 10,679,425 487,864,492 339,962,645 --------------- ------------------ ---------------- ------------------ End of year $ 59,472,935 $ 23,983,061 $ 606,785,200 $ 487,864,492 =============== ================== ================ ==================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 96 MSF MET/ARTISAN MID CAP VALUE MSF JENNISON GROWTH MSF BLACKROCK MONEY MARKET SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ----------------------------------- --------------------------------- 2010 2009 2010 2009 2010 2009 ---------------- ------------------ ---------------- ------------------ ---------------- ---------------- $ (2,016,341) $ (1,285,694) $ (2,553,927) $ (2,362,276) $ (9,500,601) $ (8,628,982) (8,689,096) (12,233,086) 113,415 (1,582,386) -- -- 35,137,677 69,654,908 23,243,885 51,528,912 -- -- ---------------- ------------------ ---------------- ------------------ ---------------- ---------------- 24,432,240 56,136,128 20,803,373 47,584,250 (9,500,601) (8,628,982) ---------------- ------------------ ---------------- ------------------ ---------------- ---------------- 15,548,005 9,640,019 37,818,417 27,418,833 200,280,780 247,789,417 (7,453,544) (5,448,819) 6,868,212 12,415,738 (102,198,285) (167,281,841) (1,007,295) (914,020) (1,222,061) (802,758) (4,785,118) (3,693,120) (13,585,886) (10,206,566) (11,101,785) (8,371,760) (106,443,255) (86,957,735) ---------------- ------------------ ---------------- ------------------ ---------------- ---------------- (6,498,720) (6,929,386) 32,362,783 30,660,053 (13,145,878) (10,143,279) ---------------- ------------------ ---------------- ------------------ ---------------- ---------------- 17,933,520 49,206,742 53,166,156 78,244,303 (22,646,479) (18,772,261) 195,923,686 146,716,944 190,651,501 112,407,198 576,532,284 595,304,545 ---------------- ------------------ ---------------- ------------------ ---------------- ---------------- $ 213,857,206 $ 195,923,686 $ 243,817,657 $ 190,651,501 $ 553,885,805 $ 576,532,284 ================ ================== ================ ================== ================ ================
The accompanying notes are an integral part of these financial statements. 97 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, 2010 AND 2009 MSF WESTERN ASSET MANAGEMENT MSF T. ROWE PRICE SMALL CAP GROWTH U.S. GOVERNMENT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------- ---------------------------------- 2010 2009 2010 2009 -------------- ------------------ ---------------- ------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (110,115) $ (77,786) $ 1,314,477 $ 2,834,557 Net realized gains (losses) 262,986 16,037 693,982 (437,814) Change in unrealized appreciation (depreciation) on investments 1,841,343 1,900,637 3,670,982 506,647 -------------- ---------------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from operations 1,994,214 1,838,888 5,679,441 2,903,390 -------------- ---------------------- ---------------- ----------------- CONTRACT TRANSACTIONS: Payments received from contract owners 153,649 1,681,267 59,447,399 46,830,938 Net transfers (including fixed account) 152,774 (63,313) 20,021,970 14,855,368 Contract charges (55,446) (31,369) (1,131,770) (516,513) Transfers for contract benefits & terminations (366,307) (262,411) (10,034,988) (8,499,279) -------------- ---------------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions (115,330) 1,324,174 68,302,611 52,670,514 -------------- ---------------------- ---------------- ----------------- Net increase (decrease) in net assets 1,878,884 3,163,062 73,982,052 55,573,904 NET ASSETS: Beginning of year 6,406,764 3,243,702 140,925,866 85,351,962 -------------- ---------------------- ---------------- ----------------- End of year $ 8,285,648 $ 6,406,764 $ 214,907,918 $ 140,925,866 ============== ====================== ================ =================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 98 MSF OPPENHEIMER GLOBAL EQUITY MSF METLIFE AGGRESSIVE ALLOCATION MSF METLIFE CONSERVATIVE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------------------------ -------------------------------------- 2010 2009 2010 2009 2010 2009 --------------- ---------------- -------------- --------------------- -------------- ----------------------- $ (12,767) $ 77,188 $ (12,711) $ 7,084 $ 275,768 $ 108,062 (121,999) (449,562) (45,643) (123,785) 354,562 40,974 1,598,724 3,493,463 292,785 523,966 307,150 1,147,227 --------------- ---------------- -------------- --------------------- -------------- ----------------------- 1,463,958 3,121,089 234,431 407,265 937,480 1,296,263 --------------- ---------------- -------------- --------------------- -------------- ----------------------- 45,146 983,118 1,241 -- 74,196 249,427 (349,931) (458,676) 288,322 80,850 (1,366,604) 3,917,097 (46,244) (35,753) (8,043) (7,755) (80,329) (66,864) (744,464) (606,217) (191,376) (27,470) (337,980) (277,955) --------------- ---------------- -------------- --------------------- -------------- ----------------------- (1,095,493) (117,528) 90,144 45,625 (1,710,717) 3,821,705 --------------- ---------------- -------------- --------------------- -------------- ----------------------- 368,465 3,003,561 324,575 452,890 (773,237) 5,117,968 10,903,654 7,900,093 1,636,073 1,183,183 10,771,428 5,653,460 --------------- ---------------- -------------- --------------------- -------------- ----------------------- $ 11,272,119 $ 10,903,654 $ 1,960,648 $ 1,636,073 $ 9,998,191 $ 10,771,428 =============== ================ ============== ===================== ============== =======================
The accompanying notes are an integral part of these financial statements. 99 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, 2010 AND 2009 MSF METLIFE CONSERVATIVE TO MODERATE ALLOCATION MSF METLIFE MODERATE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------- -------------- 2010 2009 2010 2009 -------------- ----------------- --------------- ------------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 138,702 $ 96,066 $ 363,596 $ 480,991 Net realized gains (losses) 107,507 (84,391) (281,593) (164,634) Change in unrealized appreciation (depreciation) on investments 548,177 1,460,263 4,846,286 8,417,844 -------------- ----------------- --------------- ------------------ Net increase (decrease) in net assets resulting from operations 794,386 1,471,938 4,928,289 8,734,201 -------------- ----------------- --------------- ------------------ CONTRACT TRANSACTIONS: Payments received from contract owners 69,146 239,794 416,630 579,503 Net transfers (including fixed account) (80,023) 1,735,556 941,258 1,258,223 Contract charges (70,068) (61,473) (393,540) (370,296) Transfers for contract benefits & terminations (471,770) (271,981) (2,033,561) (1,131,673) -------------- ----------------- --------------- ------------------ Net increase (decrease) in net assets resulting from contract transactions (552,715) 1,641,896 (1,069,213) 335,757 -------------- ----------------- --------------- ------------------ Net increase (decrease) in net assets 241,671 3,113,834 3,859,076 9,069,958 NET ASSETS: Beginning of year 9,016,185 5,902,351 44,856,785 35,786,827 -------------- ----------------- --------------- ------------------ End of year $ 9,257,856 $ 9,016,185 $ 48,715,861 $ 44,856,785 ============== ================= =============== ==================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 100 MSF METLIFE MODERATE TO AGGRESSIVE ALLOCATION MSF T. ROWE PRICE LARGE CAP GROWTH MSF LOOMIS SAYLES SMALL CAP CORE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------- ------------------------------------- ----------------------------------- 2010 2009 2010 2009 2010 2009 --------------- ----------------- -------------- ---------------------- -------------- -------------------- $ 219,362 $ 381,794 $ (17,880) $ (10,951) $ (66,625) $ (12,405) (651,563) (2,006,955) 4,288 (39,827) 52,849 4,026 6,983,802 13,286,168 174,952 358,699 1,146,011 269,382 --------------- ----------------- -------------- ---------------------- -------------- -------------------- 6,551,601 11,661,007 161,360 307,921 1,132,235 261,003 --------------- ----------------- -------------- ---------------------- -------------- -------------------- 283,570 1,922,699 4,645 3,657 3,008,912 1,275,264 770,376 (4,213,495) 156,041 363,170 1,307,578 446,280 (520,426) (506,223) (517) (548) (28,834) (1,578) (1,880,898) (975,857) (117,700) (77,528) (186,487) (10,460) --------------- ----------------- -------------- ---------------------- -------------- -------------------- (1,347,378) (3,772,876) 42,469 288,751 4,101,169 1,709,506 --------------- ----------------- -------------- ---------------------- -------------- -------------------- 5,204,223 7,888,131 203,829 596,672 5,233,404 1,970,509 52,562,753 44,674,622 1,161,818 565,146 1,990,671 20,162 --------------- ----------------- -------------- ---------------------- -------------- -------------------- $ 57,766,976 $ 52,562,753 $ 1,365,647 $ 1,161,818 $ 7,224,075 $ 1,990,671 =============== ================= ============== ====================== ============== ====================
The accompanying notes are an integral part of these financial statements. 101 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, 2010 AND 2009 MSF MET/DIMENSIONAL MSF NEUBERGER BERMAN MID CAP VALUE INTERNATIONAL SMALL COMPANY SUB-ACCOUNT SUB-ACCOUNT ------------------------------------ ------------------- ------------- 2010 2009 2010 2009 -------------- ---------------------- --------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (10,254) $ (1,089) $ (74,101) $ (136,028) Net realized gains (losses) 14,391 7,311 1,440,494 389,832 Change in unrealized appreciation (depreciation) on investments 277,374 48,105 4,020,489 2,668,479 -------------- ---------------------- --------------- ----------------- Net increase (decrease) in net assets resulting from operations 281,511 54,327 5,386,882 2,922,283 -------------- ---------------------- --------------- ----------------- CONTRACT TRANSACTIONS: Payments received from contract owners 1,248,510 147,926 11,080,864 5,686,215 Net transfers (including fixed account) 245,962 7,125 3,658,370 9,413,696 Contract charges (3,205) (199) (146,969) (25,184) Transfers for contract benefits & terminations (13,696) (2,198) (1,665,871) (688,189) -------------- ---------------------- --------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions 1,477,571 152,654 12,926,394 14,386,538 -------------- ---------------------- --------------- ----------------- Net increase (decrease) in net assets 1,759,082 206,981 18,313,276 17,308,821 NET ASSETS: Beginning of year 225,554 18,573 17,436,960 128,139 -------------- ---------------------- --------------- ----------------- End of year $ 1,984,636 $ 225,554 $ 35,750,236 $ 17,436,960 ============== ====================== =============== =================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 102 FEDERATED FEDERATED MSF VAN ECK GLOBAL NATURAL RESOURCES CAPITAL INCOME FEDERATED HIGH INCOME BOND KAUFMAN SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------------- ----------------- ----------------------------- -------------- 2010 2009 (a) 2010 (d) 2010 2009 2010 (d) --------------- ----------------------- ----------------- ----------- ----------------- -------------- $ (514,602) $ (71,165) $ (139) $ 1,812 $ 2,008 $ (834) 2,100,435 -- (39) (31) (17,126) (21) 12,805,750 1,451,075 1,123 1,676 24,323 10,091 --------------- ----------------------- ----------------- ----------- ----------------- -------------- 14,391,583 1,379,910 945 3,457 9,205 9,236 --------------- ----------------------- ----------------- ----------- ----------------- -------------- 29,380,798 10,642,485 -- -- -- -- 13,938,995 5,676,473 18,638 -- (34,355) 76,417 (264,726) (5,434) -- -- -- -- (710,853) (57,508) (5,725) (137) (245) (5,779) --------------- ----------------------- ----------------- ----------- ----------------- -------------- 42,344,214 16,256,016 12,913 (137) (34,600) 70,638 --------------- ----------------------- ----------------- ----------- ----------------- -------------- 56,735,797 17,635,926 13,858 3,320 (25,395) 79,874 17,635,926 -- -- 26,300 51,695 -- --------------- ----------------------- ----------------- ----------- ----------------- -------------- $ 74,371,723 $ 17,635,926 $ 13,858 $ 29,620 $ 26,300 $ 79,874 =============== ======================= ================= =========== ================= ==============
The accompanying notes are an integral part of these financial statements. 103 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, 2010 AND 2009 NEUBERGER GENESIS ALGER SMALL CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT --------------------------- --------------------------------- 2010 2009 2010 2009 ---------- ---------------- --------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (79) $ (74) $ (711,530) $ (582,628) Net realized gains (losses) 463 125 (350,422) (1,582,055) Change in unrealized appreciation (depreciation) on investments 1,309 1,945 12,464,995 18,064,321 ---------- ---------------- --------------- ----------------- Net increase (decrease) in net assets resulting from operations 1,693 1,996 11,403,043 15,899,638 ---------- ---------------- --------------- ----------------- CONTRACT TRANSACTIONS: Payments received from contract owners -- -- 2,401,744 2,390,957 Net transfers (including fixed account) -- -- (1,760,881) (1,180,545) Contract charges -- -- (11,016) (12,110) Transfers for contract benefits & terminations (1,815) (1,357) (5,259,755) (3,372,072) ---------- ---------------- --------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions (1,815) (1,357) (4,629,908) (2,173,770) ---------- ---------------- --------------- ----------------- Net increase (decrease) in net assets (122) 639 6,773,135 13,725,868 NET ASSETS: Beginning of year 8,785 8,146 51,552,207 37,826,339 ---------- ---------------- --------------- ----------------- End of year $ 8,663 $ 8,785 $ 58,325,342 $ 51,552,207 ========== ================ =============== =================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 104 T. ROWE PRICE GROWTH STOCK T. ROWE PRICE INTERNATIONAL STOCK T. ROWE PRICE PRIME RESERVE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- --------------------------------- ------------------------------- 2010 2009 2010 2009 2010 2009 -------------- ---------------- ------------ -------------------- -------------- ---------------- $ (56,018) $ (40,245) $ 2,058 $ 11,369 $ (12,183) $ (13,228) 12,135 (204,643) (5,699) (30,033) -- 62 1,033,917 2,364,460 114,449 320,779 -- (77) -------------- ---------------- ------------ -------------------- -------------- ---------------- 990,034 2,119,572 110,808 302,115 (12,183) (13,243) -------------- ---------------- ------------ -------------------- -------------- ---------------- 203,128 252,296 38,671 37,268 -- 555 (490,172) (345,144) (74,296) (55,201) 27,384 (611,809) (1,988) (2,143) (245) (244) (299) (469) (523,405) (358,485) (20,782) (16,963) (150,759) (193,032) -------------- ---------------- ------------ -------------------- -------------- ---------------- (812,437) (453,476) (56,652) (35,140) (123,674) (804,755) -------------- ---------------- ------------ -------------------- -------------- ---------------- 177,597 1,666,096 54,156 266,975 (135,857) (817,998) 6,993,261 5,327,165 877,970 610,995 1,400,475 2,218,473 -------------- ---------------- ------------ -------------------- -------------- ---------------- $ 7,170,858 $ 6,993,261 $ 932,126 $ 877,970 $ 1,264,618 $ 1,400,475 ============== ================ ============ ==================== ============== ================
The accompanying notes are an integral part of these financial statements. 105 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, 2010 AND 2009 JANUS ASPEN WORLDWIDE AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION SUB-ACCOUNT SUB-ACCOUNT ------------------------------ --------------------------------------------- 2010 2009 2010 2009 ------------- ---------------- --------------- ----------------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (15) $ 30 $ 262,137 $ (422,773) Net realized gains (losses) 51 (118) (620,368) (1,694,311) Change in unrealized appreciation (depreciation) on investments 785 1,751 13,607,870 21,104,646 ------------- ---------------- --------------- ----------------------------- Net increase (decrease) in net assets resulting from operations 821 1,663 13,249,639 18,987,562 ------------- ---------------- --------------- ----------------------------- CONTRACT TRANSACTIONS: Payments received from contract owners -- -- 15,736,532 11,280,934 Net transfers (including fixed account) -- -- (1,915,026) 3,523,195 Contract charges -- -- (292,049) (163,746) Transfers for contract benefits & terminations (600) (396) (4,804,773) (2,448,047) ------------- ---------------- --------------- ----------------------------- Net increase (decrease) in net assets resulting from contract transactions (600) (396) 8,724,684 12,192,336 ------------- ---------------- --------------- ----------------------------- Net increase (decrease) in net assets 221 1,267 21,974,323 31,179,898 NET ASSETS: Beginning of year 6,285 5,018 58,608,602 27,428,704 ------------- ---------------- --------------- ----------------------------- End of year $ 6,506 $ 6,285 $ 80,582,925 $ 58,608,602 ============= ================ =============== =============================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 106 AMERICAN FUNDS GROWTH AMERICAN FUNDS GROWTH-INCOME AMERICAN FUNDS GLOBAL GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- -------------------- -------------- -------------------- -------------- 2010 2009 2010 2009 2010 2009 ---------------- ------------------ ---------------- ------------------ ---------------- ------------------ $ (3,431,734) $ (2,543,759) $ 54,092 $ 322,059 $ 62,593 $ (61,017) (567,706) (1,802,447) (942,084) (1,316,628) (242,233) (1,759,994) 84,253,153 109,262,944 24,414,298 48,223,682 18,852,792 45,865,486 ---------------- ------------------ ---------------- ------------------ ---------------- ------------------ 80,253,713 104,916,738 23,526,306 47,229,113 18,673,152 44,044,475 ---------------- ------------------ ---------------- ------------------ ---------------- ------------------ 107,355,899 95,440,088 42,925,104 41,542,923 31,999,173 25,741,878 (6,071,807) 6,549,517 (1,498,795) 4,722,600 1,300,586 (1,708,623) (2,705,735) (1,599,950) (1,248,617) (807,236) (988,637) (719,043) (29,767,957) (16,657,656) (16,881,959) (9,808,992) (9,981,482) (7,370,639) ---------------- ------------------ ---------------- ------------------ ---------------- ------------------ 68,810,400 83,731,999 23,295,733 35,649,295 22,329,640 15,943,573 ---------------- ------------------ ---------------- ------------------ ---------------- ------------------ 149,064,113 188,648,737 46,822,039 82,878,408 41,002,792 59,988,048 419,749,811 231,101,074 219,689,912 136,811,504 161,438,857 101,450,809 ---------------- ------------------ ---------------- ------------------ ---------------- ------------------ $ 568,813,924 $ 419,749,811 $ 266,511,951 $ 219,689,912 $ 202,441,649 $ 161,438,857 ================ ================== ================ ================== ================ ==================
The accompanying notes are an integral part of these financial statements. 107 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, 2010 AND 2009 AMERICAN FUNDS BOND FTVIPT MUTUAL SHARES SECURITIES SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ----------------------------------- 2010 2009 2010 2009 --------------- ----------------- ---------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 1,503,647 $ 1,049,959 $ 168,266 $ 382,773 Net realized gains (losses) 71,340 (14,212) (385,340) (911,324) Change in unrealized appreciation (depreciation) on investments 1,549,414 3,366,855 9,513,224 16,912,881 --------------- ----------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from operations 3,124,401 4,402,602 9,296,150 16,384,330 --------------- ----------------- ---------------- ----------------- CONTRACT TRANSACTIONS: Payments received from contract owners 23,293,244 21,984,872 16,708,584 14,489,145 Net transfers (including fixed account) 6,626,017 5,886,542 2,264,306 4,173,875 Contract charges (386,206) (193,865) (388,319) (235,781) Transfers for contract benefits & terminations (3,667,017) (1,884,649) (5,928,025) (4,828,261) --------------- ----------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions 25,866,038 25,792,900 12,656,546 13,598,978 --------------- ----------------- ---------------- ----------------- Net increase (decrease) in net assets 28,990,439 30,195,502 21,952,696 29,983,308 NET ASSETS: Beginning of year 57,212,613 27,017,111 88,554,450 58,571,142 --------------- ----------------- ---------------- ----------------- End of year $ 86,203,052 $ 57,212,613 $ 110,507,146 $ 88,554,450 =============== ================= ================ =================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 108 FTVIPT TEMPLETON FOREIGN SECURITIES FTVIPT TEMPLETON GROWTH SECURITIES FTVIPT FRANKLIN INCOME SECURITIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------------- ------------------------------------- ------------------------------------ 2010 2009 2010 2009 2010 2009 --------------- ---------------------- --------------- --------------------- ---------------- ------------------- $ 43,547 $ 714,539 $ (41,464) $ 535,174 $ 7,805,972 $ 6,733,320 (879,380) (113,326) (1,194,460) (952,770) (465,020) (1,114,066) 5,846,879 17,837,025 3,626,718 9,712,864 9,173,322 25,289,201 --------------- ---------------------- --------------- --------------------- ---------------- ------------------- 5,011,046 18,438,238 2,390,794 9,295,268 16,514,274 30,908,455 --------------- ---------------------- --------------- --------------------- ---------------- ------------------- 10,323,305 11,330,132 3,084,160 6,551,312 31,740,127 24,603,795 (388,389) (4,337,377) 247,468 1,433,916 5,350,734 3,120,765 (619,064) (493,502) (166,940) (106,326) (644,646) (377,234) (5,158,694) (2,973,545) (3,050,792) (2,409,432) (10,503,367) (6,613,713) --------------- ---------------------- --------------- --------------------- ---------------- ------------------- 4,157,158 3,525,708 113,896 5,469,470 25,942,848 20,733,613 --------------- ---------------------- --------------- --------------------- ---------------- ------------------- 9,168,204 21,963,946 2,504,690 14,764,738 42,457,122 51,642,068 70,515,555 48,551,609 42,694,521 27,929,783 134,091,525 82,449,457 --------------- ---------------------- --------------- --------------------- ---------------- ------------------- $ 79,683,759 $ 70,515,555 $ 45,199,211 $ 42,694,521 $ 176,548,647 $ 134,091,525 =============== ====================== =============== ===================== ================ ===================
The accompanying notes are an integral part of these financial statements. 109 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, 2010 AND 2009 FTVIPT TEMPLETON GLOBAL BOND SECURITIES FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES SUB-ACCOUNT SUB-ACCOUNT ------------------- ---------------------- ------------------- ------------------------- 2010 2009 2010 2009 --------------- -------------------------- --------------- ----------------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 25,325 $ 3,804,528 $ (118,159) $ 29,038 Net realized gains (losses) 228,957 (67,357) 54,701 285,695 Change in unrealized appreciation (depreciation) on investments 7,083,996 1,012,803 5,414,279 2,358,393 --------------- -------------------------- --------------- ----------------------------- Net increase (decrease) in net assets resulting from operations 7,338,278 4,749,974 5,350,821 2,673,126 --------------- -------------------------- --------------- ----------------------------- CONTRACT TRANSACTIONS: Payments received from contract owners 32,227,307 16,847,632 10,270,768 5,816,489 Net transfers (including fixed account) 7,610,097 4,589,899 1,603,361 79,568 Contract charges (359,384) (159,367) (115,372) (45,361) Transfers for contract benefits & terminations (3,158,181) (967,955) (596,198) (284,145) --------------- -------------------------- --------------- ----------------------------- Net increase (decrease) in net assets resulting from contract transactions 36,319,839 20,310,209 11,162,559 5,566,551 --------------- -------------------------- --------------- ----------------------------- Net increase (decrease) in net assets 43,658,117 25,060,183 16,513,380 8,239,677 NET ASSETS: Beginning of year 44,636,060 19,575,877 13,205,263 4,965,586 --------------- -------------------------- --------------- ----------------------------- End of year $ 88,294,177 $ 44,636,060 $ 29,718,643 $ 13,205,263 =============== ========================== =============== =============================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 110 UIF U.S. REAL ESTATE PIONEER VCT BOND PIONEER VCT CULLEN VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------------- ------------------------------- ------------------------------- 2010 2009 2010 2009 2010 2009 --------------- ----------------- -------------- ---------------- -------------- ---------------- $ 402,580 $ 762,443 $ 72,889 $ 39,789 $ (18,476) $ (8,053) (3,793,020) (3,055,013) 28,371 4,359 22,967 18,659 18,634,695 15,536,655 55,693 109,546 155,011 265,327 --------------- ----------------- -------------- ---------------- -------------- ---------------- 15,244,255 13,244,085 156,953 153,694 159,502 275,933 --------------- ----------------- -------------- ---------------- -------------- ---------------- 7,881,010 5,789,425 77,543 1,552,748 54,370 1,069,928 (6,001,729) 2,400,649 25,645 442,144 197,796 379,928 (214,161) (121,416) (23,318) (841) (19,010) (1,685) (4,411,829) (3,000,390) (32,964) (15,872) (67,707) (12,778) --------------- ----------------- -------------- ---------------- -------------- ---------------- (2,746,709) 5,068,268 46,906 1,978,179 165,449 1,435,393 --------------- ----------------- -------------- ---------------- -------------- ---------------- 12,497,546 18,312,353 203,859 2,131,873 324,951 1,711,326 56,466,102 38,153,749 2,213,875 82,002 1,867,892 156,566 --------------- ----------------- -------------- ---------------- -------------- ---------------- $ 68,963,648 $ 56,466,102 $ 2,417,734 $ 2,213,875 $ 2,192,843 $ 1,867,892 =============== ================= ============== ================ ============== ================
The accompanying notes are an integral part of these financial statements. 111 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, 2010 AND 2009 PIONEER VCT EMERGING MARKETS PIONEER VCT EQUITY INCOME SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ---------------------------- 2010 2009 2010 2009 -------------- ---------------- ------------ --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (14,019) $ (4,999) $ 1,630 $ 3,551 Net realized gains (losses) 51,198 30,973 17,928 (481) Change in unrealized appreciation (depreciation) on investments 110,840 223,119 38,303 48,175 -------------- ---------------- ------------ --------------- Net increase (decrease) in net assets resulting from operations 148,019 249,093 57,861 51,245 -------------- ---------------- ------------ --------------- CONTRACT TRANSACTIONS: Payments received from contract owners 43,087 432,254 9,062 236,141 Net transfers (including fixed account) 45,142 314,789 (9,014) 42,972 Contract charges (7,268) (388) (2,995) (315) Transfers for contract benefits & terminations (37,357) (18,638) (33,620) (8,028) -------------- ---------------- ------------ --------------- Net increase (decrease) in net assets resulting from contract transactions 43,604 728,017 (36,567) 270,770 -------------- ---------------- ------------ --------------- Net increase (decrease) in net assets 191,623 977,110 21,294 322,015 NET ASSETS: Beginning of year 1,020,914 43,804 354,460 32,445 -------------- ---------------- ------------ --------------- End of year $ 1,212,537 $ 1,020,914 $ 375,754 $ 354,460 ============== ================ ============ ===============
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 112 PIONEER VCT FUND PIONEER VCT IBBOTSON GROWTH ALLOCATION PIONEER VCT IBBOTSON MODERATE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- ----------------------------------------- ------------------------------------------- 2010 2009 2010 2009 2010 2009 ------------ -------------- --------------- ------------------------- --------------- --------------------------- $ (592) $ 436 $ 39,491 $ 151,196 $ 252,038 $ 216,658 1,674 (1,970) 360,330 216,580 221,662 94,668 32,740 49,927 1,818,686 4,278,917 2,500,603 4,279,005 ------------ -------------- --------------- ------------------------- --------------- --------------------------- 33,822 48,393 2,218,507 4,646,693 2,974,303 4,590,331 ------------ -------------- --------------- ------------------------- --------------- --------------------------- -- 120,319 1,115,979 8,727,223 411,530 16,950,987 13,107 20,907 (327,776) 276,874 225,730 1,755,175 (1,770) (412) (126,183) (24,076) (244,941) (9,645) (12,231) (103) (428,428) (279,627) (166,894) (96,671) ------------ -------------- --------------- ------------------------- --------------- --------------------------- (894) 140,711 233,592 8,700,394 225,425 18,599,846 ------------ -------------- --------------- ------------------------- --------------- --------------------------- 32,928 189,104 2,452,099 13,347,087 3,199,728 23,190,177 228,777 39,673 16,934,322 3,587,235 24,317,338 1,127,161 ------------ -------------- --------------- ------------------------- --------------- --------------------------- $ 261,705 $ 228,777 $ 19,386,421 $ 16,934,322 $ 27,517,066 $ 24,317,338 ============ ============== =============== ========================= =============== ===========================
The accompanying notes are an integral part of these financial statements. 113 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, 2010 AND 2009 PIONEER VCT MID CAP VALUE PIONEER VCT REAL ESTATE SHARES SUB-ACCOUNT SUB-ACCOUNT --------------------------------- --------------------------------- 2010 2009 2010 2009 --------------- ----------------- ------------ -------------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (225,376) $ (50,878) $ 1,872 $ 4,733 Net realized gains (losses) (237,712) (740,526) 28,087 17,981 Change in unrealized appreciation (depreciation) on investments 6,635,500 7,060,304 27,619 61,778 --------------- ----------------- ------------ -------------------- Net increase (decrease) in net assets resulting from operations 6,172,412 6,268,900 57,578 84,492 --------------- ----------------- ------------ -------------------- CONTRACT TRANSACTIONS: Payments received from contract owners 7,085,201 5,777,023 5,951 108,358 Net transfers (including fixed account) 950,970 839,891 (16,768) 15,393 Contract charges (158,947) (102,817) (2,048) (308) Transfers for contract benefits & terminations (2,465,321) (1,637,290) (39,423) (12,150) --------------- ----------------- ------------ -------------------- Net increase (decrease) in net assets resulting from contract transactions 5,411,903 4,876,807 (52,288) 111,293 --------------- ----------------- ------------ -------------------- Net increase (decrease) in net assets 11,584,315 11,145,707 5,290 195,785 NET ASSETS: Beginning of year 35,037,503 23,891,796 228,918 33,133 --------------- ----------------- ------------ -------------------- End of year $ 46,621,818 $ 35,037,503 $ 234,208 $ 228,918 =============== ================= ============ ====================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 114 LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE VARIABLE SMALL CAP GROWTH VARIABLE LARGE CAP VALUE VARIABLE FUNDAMENTAL ALL CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------- ------------------ ------------ ------------------- ----------------- 2010 2009 2010 2009 2010 2009 --------------- ----------------- -------------- ---------------- --------------- --------------------- $ (391,996) $ (243,396) $ 31,244 $ 3,918 $ 259,869 $ (48,573) 96,515 (475,523) (95,704) (144,402) (692,388) (1,367,279) 6,313,023 6,335,763 249,108 612,219 13,378,879 18,964,395 --------------- ----------------- -------------- ---------------- --------------- --------------------- 6,017,542 5,616,844 184,648 471,735 12,946,360 17,548,543 --------------- ----------------- -------------- ---------------- --------------- --------------------- 8,292,377 4,964,931 182,389 154,772 10,634,359 10,408,838 (778,616) 1,691,172 (27,094) 35,627 (810,612) 1,189,094 (153,607) (90,998) (9,719) (8,165) (285,426) (182,010) (1,681,734) (792,786) (159,882) (106,578) (6,214,856) (5,032,473) --------------- ----------------- -------------- ---------------- --------------- --------------------- 5,678,420 5,772,319 (14,306) 75,656 3,323,465 6,383,449 --------------- ----------------- -------------- ---------------- --------------- --------------------- 11,695,962 11,389,163 170,342 547,391 16,269,825 23,931,992 21,966,842 10,577,679 2,559,454 2,012,063 83,258,408 59,326,416 --------------- ----------------- -------------- ---------------- --------------- --------------------- $ 33,662,804 $ 21,966,842 $ 2,729,796 $ 2,559,454 $ 99,528,233 $ 83,258,408 =============== ================= ============== ================ =============== =====================
The accompanying notes are an integral part of these financial statements. 115 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, 2010 AND 2009 LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE VARIABLE APPRECIATION VARIABLE AGGRESSIVE GROWTH SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------- ---------------------------------- 2010 2009 2010 2009 ---------------- -------------------------- ---------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ 518,708 $ 817,750 $ (1,834,353) $ (1,555,623) Net realized gains (losses) (46,528) (1,345,960) (729,737) (2,337,581) Change in unrealized appreciation (depreciation) on investments 15,933,466 18,518,803 31,554,611 33,075,324 ---------------- -------------------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from operations 16,405,646 17,990,593 28,990,521 29,182,120 ---------------- -------------------------- ---------------- ----------------- CONTRACT TRANSACTIONS: Payments received from contract owners 46,471,592 29,603,307 18,895,526 15,963,204 Net transfers (including fixed account) 2,718,317 4,797,909 (4,987,849) (174,010) Contract charges (576,020) (258,629) (470,056) (310,219) Transfers for contract benefits & terminations (8,050,441) (5,597,996) (9,662,148) (7,659,711) ---------------- -------------------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions 40,563,448 28,544,591 3,775,473 7,819,264 ---------------- -------------------------- ---------------- ----------------- Net increase (decrease) in net assets 56,969,094 46,535,184 32,765,994 37,001,384 NET ASSETS: Beginning of year 116,657,409 70,122,225 123,705,924 86,704,540 ---------------- -------------------------- ---------------- ----------------- End of year $ 173,626,503 $ 116,657,409 $ 156,471,918 $ 123,705,924 ================ ========================== ================ =================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 116 LMPVET CLEARBRIDGE LMPVET INVESTMENT LMPVET CLEARBRIDGE VARIABLE LARGE CAP GROWTH COUNSEL VARIABLE SOCIAL AWARENESS VARIABLE EQUITY INCOME BUILDER SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ---------------- ------------------- --------------------------------- 2010 2009 2010 2009 2010 2009 -------------- ---------------- ------------ ----------------------- --------------- ----------------- $ (100,014) $ (89,306) $ (1,958) $ (904) $ 1,827,744 $ 949,840 (67,178) (329,106) (15,882) (74,169) (2,284,460) (3,323,647) 580,884 2,418,961 67,430 159,948 7,931,196 12,577,390 -------------- ---------------- ------------ ----------------------- --------------- ----------------- 413,692 2,000,549 49,590 84,875 7,474,480 10,203,583 -------------- ---------------- ------------ ----------------------- --------------- ----------------- 14,446 10,583 1,385 1,788 12,770,354 11,470,586 (431,047) (249,620) (15,771) (93,132) 1,171,468 3,993,332 (23,150) (28,461) (275) (297) (217,562) (99,252) (727,111) (418,088) (39,961) (45,423) (5,138,178) (3,943,912) -------------- ---------------- ------------ ----------------------- --------------- ----------------- (1,166,862) (685,586) (54,622) (137,064) 8,586,082 11,420,754 -------------- ---------------- ------------ ----------------------- --------------- ----------------- (753,170) 1,314,963 (5,032) (52,189) 16,060,562 21,624,337 6,818,703 5,503,740 515,712 567,901 64,946,351 43,322,014 -------------- ---------------- ------------ ----------------------- --------------- ----------------- $ 6,065,533 $ 6,818,703 $ 510,680 $ 515,712 $ 81,006,913 $ 64,946,351 ============== ================ ============ ======================= =============== =================
The accompanying notes are an integral part of these financial statements. 117 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, 2010 AND 2009 LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE VARIABLE CAPITAL VARIABLE DIVIDEND STRATEGY SUB-ACCOUNT SUB-ACCOUNT -------------------------------------- ------------------------------- 2010 2009 2010 2009 -------------- ----------------------- -------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (50,460) $ (56,300) $ 63,908 $ 13,985 Net realized gains (losses) (459,328) (617,452) (127,436) (377,981) Change in unrealized appreciation (depreciation) on investments 1,016,611 2,196,191 598,520 1,317,453 -------------- ----------------------- -------------- ---------------- Net increase (decrease) in net assets resulting from operations 506,823 1,522,439 534,992 953,457 -------------- ----------------------- -------------- ---------------- CONTRACT TRANSACTIONS: Payments received from contract owners 16,152 1,218 30,048 22,331 Net transfers (including fixed account) (245,616) (95,329) (85,342) (110,622) Contract charges (26,922) (29,740) (21,919) (22,407) Transfers for contract benefits & terminations (424,197) (248,902) (490,031) (480,991) -------------- ----------------------- -------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions (680,583) (372,753) (567,244) (591,689) -------------- ----------------------- -------------- ---------------- Net increase (decrease) in net assets (173,760) 1,149,686 (32,252) 361,768 NET ASSETS: Beginning of year 5,469,899 4,320,213 5,884,519 5,522,751 -------------- ----------------------- -------------- ---------------- End of year $ 5,296,139 $ 5,469,899 $ 5,852,267 $ 5,884,519 ============== ======================= ============== ================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 118 LMPVET VARIABLE LIFESTYLE ALLOCATION 50% LMPVET VARIABLE LIFESTYLE ALLOCATION 70% LMPVET VARIABLE LIFESTYLE ALLOCATION 85% SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------------------- ------------------------------------------- ------------------------------------------- 2010 2009 2010 2009 2010 2009 --------------- --------------------------- -------------- ---------------------------- --------------- --------------------------- $ 217,581 $ 220,518 $ 14,214 $ 58,734 $ 197,005 $ 453,017 (104,317) (673,030) (75,321) (243,543) (47,518) (228,257) 1,061,494 2,112,660 464,939 995,242 7,347,126 10,083,114 --------------- --------------------------- -------------- ---------------------------- --------------- --------------------------- 1,174,758 1,660,148 403,832 810,433 7,496,613 10,307,874 --------------- --------------------------- -------------- ---------------------------- --------------- --------------------------- 4,403,456 36,174 24,506 8,648 9,407,404 10,304,683 941,570 (68,724) (205,680) 99,888 (238,943) 2,518,047 (3,210) (2,222) (1,036) (1,137) (349,818) (229,799) (661,319) (865,159) (273,685) (189,529) (1,856,668) (1,200,177) --------------- --------------------------- -------------- ---------------------------- --------------- --------------------------- 4,680,497 (899,931) (455,895) (82,130) 6,961,975 11,392,754 --------------- --------------------------- -------------- ---------------------------- --------------- --------------------------- 5,855,255 760,217 (52,063) 728,303 14,458,588 21,700,628 7,231,568 6,471,351 3,447,350 2,719,047 47,576,561 25,875,933 --------------- --------------------------- -------------- ---------------------------- --------------- --------------------------- $ 13,086,823 $ 7,231,568 $ 3,395,287 $ 3,447,350 $ 62,035,149 $ 47,576,561 =============== =========================== ============== ============================ =============== ===========================
The accompanying notes are an integral part of these financial statements. 119 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, 2010 AND 2009 LMPVIT WESTERN ASSET LMPVIT WESTERN ASSET VARIABLE ADJUSTABLE RATE INCOME VARIABLE GLOBAL HIGH YIELD BOND SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2010 2009 2010 2009 -------------- ------------------- --------------- ------------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss) $ (11,190) $ 6,488 $ 4,279,019 $ 3,692,798 Net realized gains (losses) (34,178) (84,935) (257,958) (1,514,921) Change in unrealized appreciation (depreciation) on investments 200,066 363,254 2,633,790 13,639,135 -------------- --- --------------- --------------- --- -------------- Net increase (decrease) in net assets resulting from operations 154,698 284,807 6,654,851 15,817,012 -------------- ------------------- --------------- ------------------ CONTRACT TRANSACTIONS: Payments received from contract owners 2,211 7,629 10,328,608 6,533,638 Net transfers (including fixed account) 94,548 137,208 685,318 (164,142) Contract charges (1,253) (935) (194,240) (104,974) Transfers for contract benefits & terminations (222,201) (95,008) (4,631,610) (3,204,977) -------------- ------------------- --------------- ------------------ Net increase (decrease) in net assets resulting from contract transactions (126,695) 48,894 6,188,076 3,059,545 -------------- ------------------- --------------- ------------------ Net increase (decrease) in net assets 28,003 333,701 12,842,927 18,876,557 NET ASSETS: Beginning of year 2,121,940 1,788,239 48,249,580 29,373,023 -------------- ------------------- --------------- ------------------ End of year $ 2,149,943 $ 2,121,940 $ 61,092,507 $ 48,249,580 ============== =================== =============== ==================
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 15, 2009. (d) For the period March 15, 2010 to December 31, 2010. The accompanying notes are an integral part of these financial statements. 120 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 (Invesco Variable Insurance Funds) ("Invesco V.I.")+ MFS Variable Insurance Trust ("MFS VIT") Oppenheimer Variable Account Funds ("Oppenheimer VA") Fidelity Variable Insurance Products ("Fidelity VIP") DWS Variable Series I ("DWS") Metropolitan Series Fund, Inc. ("MSF")* Federated Insurance Series ("Federated") Neuberger Berman Equity Funds ("Neuberger") The Alger Portfolios ("Alger") T. Rowe Price Funds ("T. Rowe Price") Janus Aspen Series ("Janus Aspen") American Funds Insurance Series ("American Funds") Franklin Templeton Variable Insurance Products Trust ("FTVIPT") The Universal Institutional Funds, Inc. ("UIF") Pioneer Variable Contracts Trust ("Pioneer VCT") Legg Mason Partners Variable Equity Trust ("LMPVET") Legg Mason Partners Variable Income Trust ("LMPVIT") * See Note 5 for discussion of additional information on related party transactions. + Formerly named AIM Variable Insurance Funds ("AIM V.I.") NAME CHANGES: The following portfolios were affected by a trust name change during the year ended December 31, 2010: FORMER NAME NEW NAME AIM V.I. Core Equity Fund Invesco V.I. Core Equity Fund AIM V.I. Capital Appreciation Fund Invesco V.I. Capital Appreciation Fund AIM V.I. International Growth Fund Invesco V.I. International Growth Fund AIM V.I. Basic Balanced Fund Invesco V.I. Basic Balanced Fund AIM V.I. Global Real Estate Fund Invesco V.I. Global Real Estate Fund
REORGANIZATIONS: During the year ended December 31, 2010, all the portfolios of the Van Kampen Life Investment Trust and certain portfolios of The Universal Institutional Funds, Inc. were reorganized into portfolios of AIM Variable Insurance Funds (Invesco Variable Insurance Funds). As a result of the reorganizations, the following name changes occurred: FORMER TRUST NEW TRUST Van Kampen Life Investment Capital Growth Portfolio Invesco Van Kampen V.I. Capital Growth Fund Van Kampen Life Investment Growth and Income Invesco Van Kampen V.I. Growth and Income Fund Portfolio UIF Equity and Income Portfolio Invesco Van Kampen V.I. Equity and Income Fund UIF U.S. Mid Cap Value Portfolio Invesco Van Kampen V.I. U.S. Mid Cap Value Fund
121 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 1. ORGANIZATION -- (CONTINUED) The assets of each of the Sub-Accounts 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. 2. LIST OF SUB-ACCOUNTS Purchase payments, less any applicable charges, 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 had net assets as of December 31, 2010: MIST Lord Abbett Growth and Income Sub-Account* MIST Lord Abbett Bond Debenture Sub-Account* MIST Morgan Stanley Mid Cap Growth Sub-Account* MIST Lord Abbett Mid Cap Value Sub-Account MIST Lazard Mid Cap Sub-Account MIST Invesco 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 ClearBridge 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 Clarion Global 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 Janus Forty 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 MIST American Funds Balanced Allocation Sub-Account MIST American Funds Bond Sub-Account MIST American Funds Growth Sub-Account MIST American Funds Growth Allocation Sub-Account MIST American Funds International Sub-Account MIST American Funds Moderate Allocation Sub-Account MIST Met/Franklin Mutual Shares Sub-Account MIST Met/Franklin Templeton Founding Strategy Sub-Account MIST SSgA Growth ETF Sub-Account MIST SSgA Growth and Income ETF Sub-Account MIST Met/Templeton International Bond Sub-Account MIST Met/Templeton Growth Sub-Account** MIST Met/Eaton Vance Floating Rate Sub-Account** Invesco V.I. Core Equity Sub-Account Invesco V.I. Capital Appreciation Sub-Account Invesco V.I. International Growth Sub-Account* Invesco V.I. Basic Balanced Sub-Account Invesco V.I. Global Real Estate Sub-Account Invesco V.I. Capital Growth Sub-Account Invesco V.I. Growth and Income Sub-Account* Invesco V.I. Equity and Income Sub-Account Invesco V.I. U.S. Mid Cap Value Sub-Account MFS VIT Research Sub-Account MFS VIT Investors Trust Sub-Account MFS VIT New Discovery Sub-Account Oppenheimer VA Main Street Sub-Account Oppenheimer VA Core Bond Sub-Account Oppenheimer VA Global Strategic Income Sub-Account Oppenheimer VA Main Street Small Cap Sub-Account* Oppenheimer VA Money Sub-Account Fidelity VIP Asset Manager Sub-Account Fidelity VIP Growth Sub-Account Fidelity VIP Contrafund Sub-Account* Fidelity VIP Overseas Sub-Account 122 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 2. LIST OF SUB-ACCOUNTS -- (CONTINUED) Fidelity VIP Equity-Income Sub-Account Fidelity VIP Index 500 Sub-Account Fidelity VIP Money Market Sub-Account* Fidelity VIP Mid Cap Sub-Account Fidelity VIP FundsManager 60% Sub-Account DWS International Sub-Account MSF FI Value Leaders Sub-Account MSF Russell 2000 Index Sub-Account* MSF Artio International Stock Sub-Account* MSF MetLife Stock Index Sub-Account* MSF BlackRock Legacy Large Cap Growth Sub-Account* MSF Neuberger Berman Genesis Sub-Account MSF BlackRock Bond Income Sub-Account* MSF BlackRock Large Cap Value Sub-Account MSF Barclays Capital Aggregate Bond Index Sub-Account* MSF MFS 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 Met/Artisan Mid Cap 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 MSF T. Rowe Price Large Cap Growth Sub-Account MSF Loomis Sayles Small Cap Core Sub-Account MSF Neuberger Berman Mid Cap Value Sub-Account MSF Met/Dimensional International Small Company Sub-Account MSF Van Eck Global Natural Resources Sub-Account Federated Capital Income Sub-Account** Federated High Income Bond Sub-Account Federated Kaufman Sub-Account** Neuberger Genesis Sub-Account Alger Small Cap Growth Sub-Account T. Rowe Price Growth Stock Sub-Account T. Rowe Price International Stock Sub-Account T. Rowe Price Prime Reserve Sub-Account Janus Aspen Worldwide 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 FTVIPT Mutual Shares Securities Sub-Account FTVIPT Templeton Foreign Securities Sub-Account FTVIPT Templeton Growth Securities Sub-Account FTVIPT Franklin Income Securities Sub-Account FTVIPT Templeton Global Bond Securities Sub-Account FTVIPT Franklin Small Cap Value Securities Sub-Account UIF U.S. Real Estate Sub-Account Pioneer VCT Bond Sub-Account Pioneer VCT Cullen Value Sub-Account Pioneer VCT Emerging Markets Sub-Account Pioneer VCT Equity Income Sub-Account Pioneer VCT Fund Sub-Account Pioneer VCT Ibbotson Growth Allocation Sub-Account Pioneer VCT Ibbotson Moderate Allocation Sub-Account Pioneer VCT Mid Cap Value Sub-Account Pioneer VCT Real Estate Shares Sub-Account LMPVET ClearBridge Variable Small Cap Growth Sub-Account LMPVET ClearBridge Variable Large Cap Value Sub-Account LMPVET ClearBridge Variable Fundamental All Cap Value Sub-Account LMPVET ClearBridge Variable Appreciation Sub-Account LMPVET ClearBridge Variable Aggressive Growth Sub-Account* LMPVET ClearBridge Variable Large Cap Growth Sub-Account LMPVET Investment Counsel Variable Social Awareness Sub-Account LMPVET ClearBridge Variable Equity Income Builder Sub-Account* LMPVET ClearBridge Variable Capital Sub-Account LMPVET ClearBridge Variable Dividend Strategy Sub-Account 123 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 2. LIST OF SUB-ACCOUNTS -- (CONCLUDED) LMPVET Variable Lifestyle Allocation 50% Sub-Account LMPVET Variable Lifestyle Allocation 70% Sub-Account LMPVET Variable Lifestyle Allocation 85% LMPVIT Western Asset Variable Adjustable Rate Income Sub-Account LMPVIT Western Asset Variable Global High Yield Bond 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. ** This Sub-Account began operations during the year ended December 31, 2010. 3. PORTFOLIO CHANGES The following Sub-Accounts ceased operations during the year ended December 31, 2010: MSF FI Mid Cap Opportunities Sub-Account Federated Equity Income Sub-Account Federated Mid Cap Growth Sub-Account Pioneer VCT High Yield Sub-Account LMPVET Batterymarch Variable Global Equity Sub-Account LMPVIT Western Asset Variable Money Market Sub-Account The operations of the Sub-Accounts were affected by the following changes that occurred during the year ended December 31, 2010: NAME CHANGES: FORMER NAME NEW NAME (MIST) Van Kampen Mid Cap Growth Portfolio (MIST) Morgan Stanley Mid Cap Growth Portfolio (MIST) Met/AIM Small Cap Growth Portfolio (MIST) Invesco Small Cap Growth Portfolio (MIST) Legg Mason Partners Aggressive Growth (MIST) Legg Mason ClearBridge Aggressive Growth Portfolio Portfolio (Oppenheimer VA) Strategic Bond Fund (Oppenheimer VA) Global Strategic Income Fund (MSF) BlackRock Strategic Value Portfolio (MSF) Neuberger Berman Genesis Portfolio (LMPVET) ClearBridge Variable Investors Portfolio (LMPVET) ClearBridge Variable Large Cap Value Portfolio (LMPVET) ClearBridge Variable Fundamental Value (LMPVET) ClearBridge Variable Fundamental All Cap Portfolio Value Portfolio MERGERS: FORMER PORTFOLIO NEW PORTFOLIO (MSF) FI Mid Cap Opportunities Portfolio (MIST) Morgan Stanley Mid Cap Growth Portfolio (Federated) Equity Income Fund (Federated) Capital Income Fund (Federated) Mid Cap Growth Strategies Fund (Federated) Kaufman Fund
124 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 3. PORTFOLIO CHANGES -- (CONTINUED) SUBSTITUTIONS: FORMER PORTFOLIO NEW PORTFOLIO (Pioneer VCT) High Yield Portfolio (MIST) BlackRock High Yield Portfolio (LMPVET) Batterymarch Global Equity Portfolio (MIST) Met/Templeton Growth Portfolio (LMPVIT) Western Asset Variable Money Market (MSF) BlackRock Money Market Portfolio Portfolio
4. SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") applicable for variable annuity separate accounts registered as unit investment trusts. 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 average cost of the investment sold. Income from dividends and realized gain distributions are recorded on the ex-distribution date. SECURITY VALUATION The Sub-Accounts' investment in shares of the portfolio, series, or fund of the Trusts is valued at fair value based on the closing net asset value ("NAV") or price per share as determined by the Trusts as of the end of the year. All changes in fair value are recorded as changes in unrealized gains (losses) on investments in the statements of operations of the applicable Sub-Accounts. The Separate Account defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Separate Account prioritizes the inputs to fair valuation techniques and allows for the use of unobservable inputs to the extent that observable inputs are not available. The Separate Account has categorized its assets based on the priority of the inputs to the respective valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets (Level 1) and the lowest priority to unobservable inputs (Level 3). An asset's classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets. Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets.
Each Sub-Account invests in shares of open-end mutual funds which calculate a daily NAV based on the value of the underlying securities in their portfolios. As a result, and as required by law, shares of open-end mutual funds are purchased and redeemed at their quoted daily NAV as reported by the Trusts at the close of each business day. On that basis, the inputs used to value all shares held by the Separate Account, which are measured at fair value on a recurring basis, are classified as Level 2. 125 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 4. SIGNIFICANT ACCOUNTING POLICIES -- (CONTINUED) 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 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% . 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, and are reported as contract transactions on the statements of changes in net assets of the applicable Sub-Accounts. NET TRANSFERS Funds transferred by the contract owner into or out of the Sub-Accounts within the Separate Account or into or out of the fixed account (an investment option in the Company's general account) are recorded on a net basis as net transfers in the statements of changes in net assets of the applicable Sub-Accounts. 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 PRONOUNCEMENTS Effective January 1, 2010, the Separate Account adopted new guidance that requires new disclosures about significant transfers in and/or out of Levels 1 and 2 of the fair value hierarchy and activity in Level 3. In addition, this guidance provides clarification of existing disclosure requirements about the level of disaggregation and inputs and valuation techniques. The adoption of this guidance did not have an impact on the Separate Account's financial statements. Effective December 31, 2009, the Separate Account adopted new guidance on: (i) measuring the fair value of investments in certain entities that calculate a NAV per share; (ii) how investments within its scope would be classified in the fair value hierarchy; and (iii) enhanced disclosure requirements about the nature and risks of investments measured at fair value on a recurring or non-recurring basis. As a result, the Separate Account classified all of its investments, which utilize a NAV to measure fair value, as Level 2 in the fair value hierarchy. Effective April 1, 2009, the Separate Account adopted prospectively new guidance, which establishes general standards for accounting and disclosures of events that occur subsequent to the statements of assets and liabilities date but before financial statements are issued, as revised in February 2010. The Separate Account has provided the required disclosures, if any, in its financial statements. 126 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 5. EXPENSES AND RELATED PARTY TRANSACTIONS The following annual Separate Account charges paid to the Company, are asset-based charges assessed through a daily reduction in unit values, which are recorded as expenses in the accompanying statements of operations of the applicable Sub-Accounts: 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 the risk that 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 increases in account value of 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. EARNINGS PRESERVATION BENEFIT -- For an additional charge, the Company will provide this additional death benefit. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE -- For a charge that includes the Mortality and Expense Risk charge and a guaranteed withdrawal benefit, the Company will guarantee the periodic return on the investment for life of a single annuitant or joint annuitants. The table below represents the range of effective annual rates for each respective charge for the year ended December 31, 2010: Mortality and Expense Risk 0.75% - 2.05% Administrative 0.10% - 0.25% Optional Death Benefit Rider 0.15% - 0.35% Distribution Expense 0.10% Guaranteed Minimum Accumulation Benefit 1.50% Earnings Preservation Benefit 0.25% Guaranteed Withdrawal Benefit for Life 0.90% - 1.05%
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. The range of effective rates disclosed above excludes any waivers granted to certain Sub-Accounts. The following optional rider charges paid to the Company are charged at each contract anniversary date through the redemption of units and are recorded as contract charges in the accompanying statements of changes in net assets of the applicable Sub-Accounts: 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. LIFETIME WITHDRAWAL GUARANTEE -- For an additional charge, the Company will guarantee minimum withdrawals for life regardless of market conditions. GUARANTEED WITHDRAWAL BENEFIT -- For an additional charge, the Company will guarantee minimum withdrawals regardless of market conditions. 127 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 5. EXPENSES AND RELATED PARTY TRANSACTIONS -- (CONTINUED) GUARANTEED MINIMUM INCOME BENEFIT -- For an additional charge, the Company will guarantee a minimum payment regardless of market conditions. ENHANCED DEATH BENEFIT -- For an additional charge, the Company will guarantee a death benefit equal to the greater of the account value or the higher of two death benefit bases. The table below represents the range of effective annual rates for each respective charge for the year ended December 31, 2010: Guaranteed Minimum Accumulation Benefit 0.75% Lifetime Withdrawal Guarantee 0.50% - 1.80% Guaranteed Withdrawal Benefit 0.25% - 1.00% Guaranteed Minimum Income Benefit 0.50% - 1.50% Enhanced Death Benefit 0.60% - 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, for certain contracts, 2% of the amount transferred from the contract value, if less. For certain contracts, 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, the 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. For certain contracts, a transaction charge of the lesser of $10 or 2% of the surrender is imposed on surrenders and a $10 charge is assessed for annuitizations. For those contract owners who choose optional living benefit riders or certain optional death benefit riders, these charges range from 0.25% to 1.80% of the benefit base and are charged at each contract anniversary date. These charges are paid to the Company, assessed through the redemption of units, and recorded as contract charges in the accompanying statements of changes in net assets of the applicable Sub-Accounts. Certain portfolios of the MIST and MSF Trusts are managed by MetLife Advisers, LLC, which acts in the capacity of investment advisor and is an indirect affiliate of the Company. On May 1, 2009, Met Investors Advisory, LLC, an indirect affiliate of the Company and previous manager of the MIST Trust, merged into MetLife Advisers, LLC. 128 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. STATEMENTS OF INVESTMENTS FOR THE YEAR ENDED AS OF DECEMBER 31, 2010 DECEMBER 31, 2010 ------------------------- ---------------------------- COST OF PROCEEDS SHARES COST ($) PURCHASES ($) FROM SALES ($) ----------- ------------- ------------- -------------- MIST Lord Abbett Growth and Income Sub-Account 25,486,032 625,620,160 22,396,573 43,221,240 MIST Lord Abbett Bond Debenture Sub-Account 20,812,062 246,947,473 31,425,617 24,455,665 MIST Morgan Stanley Mid Cap Growth Sub-Account 7,682,553 69,787,653 19,412,222 4,341,336 MIST Lord Abbett Mid Cap Value Sub-Account 6,838,601 89,431,632 30,520,886 2,505,600 MIST Lazard Mid Cap Sub-Account 11,933,404 141,997,421 17,436,829 6,343,405 MIST Invesco Small Cap Growth Sub-Account 13,421,827 161,641,430 20,338,001 11,459,141 MIST Harris Oakmark International Sub-Account 33,760,506 449,108,684 114,033,931 15,895,853 MIST Third Avenue Small Cap Value Sub-Account 21,847,557 298,783,033 29,850,737 15,302,365 MIST Oppenheimer Capital Appreciation Sub-Account 32,229,581 251,800,646 1,436,176 22,351,602 MIST Legg Mason ClearBridge Aggressive Growth Sub-Account 13,870,880 95,871,085 19,069,291 8,317,181 MIST PIMCO Total Return Sub-Account 143,149,787 1,676,563,514 749,909,596 91,767,214 MIST RCM Technology Sub-Account 23,078,086 92,698,339 28,463,831 15,177,531 MIST PIMCO Inflation Protected Bond Sub-Account 62,492,353 679,330,353 233,811,710 14,214,466 MIST T. Rowe Price Mid Cap Growth Sub-Account 43,034,249 320,447,014 89,557,071 13,971,221 MIST MFS Research International Sub-Account 31,219,601 343,474,229 27,900,734 18,250,970 MIST Clarion Global Real Estate Sub-Account 13,659,885 158,301,030 36,727,088 5,007,743 MIST Turner Mid Cap Growth Sub-Account 6,185,425 70,333,459 19,343,049 7,898,727 MIST Goldman Sachs Mid Cap Value Sub-Account 8,751,228 110,451,495 23,680,540 8,413,534 MIST MetLife Defensive Strategy Sub-Account 185,198,757 1,859,079,669 546,164,191 145,336,934 MIST MetLife Moderate Strategy Sub-Account 290,271,079 2,915,515,069 684,975,587 27,292,767 MIST MetLife Balanced Strategy Sub-Account 620,163,148 6,387,980,848 1,057,114,745 59,097,306 MIST MetLife Growth Strategy Sub-Account 524,488,320 5,876,370,451 148,380,110 312,295,136 MIST MetLife Aggressive Strategy Sub-Account 54,249,779 556,399,890 74,697,017 30,445,211 MIST Van Kampen Comstock Sub-Account 24,218,635 193,368,756 45,327,981 1,479,302 MIST Legg Mason Value Equity Sub-Account 15,127,700 111,915,356 21,275,315 4,941,372 MIST MFS Emerging Markets Equity Sub-Account 31,616,388 290,928,279 126,734,236 9,308,683 MIST Loomis Sayles Global Markets Sub-Account 11,664,276 125,654,267 49,493,872 6,572,330 MIST Janus Forty Sub-Account 780,080 49,414,220 32,086,524 4,544,892 MIST Dreman Small Cap Value Sub-Account 1,645,057 20,361,774 3,961,221 2,893,657 MIST Pioneer Fund Sub-Account 7,986,357 94,205,574 47,776,188 1,945,832 MIST Pioneer Strategic Income Sub-Account 37,647,634 374,020,183 153,336,311 6,044,393 MIST BlackRock Large Cap Core Sub-Account 1,111,409 9,441,377 4,400,143 822,987 MIST BlackRock High Yield Sub-Account 21,089,940 163,199,115 138,800,268 68,396,150 MIST Rainier Large Cap Equity Sub-Account 5,672,945 42,786,243 13,051,817 7,072,431 MIST American Funds Balanced Allocation Sub-Account 253,403,817 2,120,191,129 958,172,648 14,099,990 MIST American Funds Bond Sub-Account 27,451,730 262,442,436 130,716,448 3,883,655 MIST American Funds Growth Sub-Account 52,486,729 385,080,573 186,001,794 10,047,256 MIST American Funds Growth Allocation Sub-Account 157,112,425 1,194,415,394 209,875,033 72,683,658 MIST American Funds International Sub-Account 35,066,455 261,846,087 121,733,703 7,529,837 MIST American Funds Moderate Allocation Sub-Account 145,362,866 1,278,196,695 520,401,698 6,829,631 MIST Met/Franklin Mutual Shares Sub-Account 13,669,965 105,111,231 53,198,107 4,099,075 MIST Met/Franklin Templeton Founding Strategy Sub-Account 57,932,880 477,866,691 115,840,244 31,893,291 MIST SSgA Growth ETF Sub-Account 29,399,583 269,379,609 147,349,108 16,455,855 MIST SSgA Growth and Income ETF Sub-Account 87,119,227 883,014,317 605,097,798 1,865,449 MIST Met/Templeton International Bond Sub-Account 2,927,619 34,022,563 26,877,505 1,095,344 MIST Met/Templeton Growth Sub-Account (a) 791,899 6,881,220 7,105,860 218,305 MIST Met/Eaton Vance Floating Rate Sub-Account (a) 1,582,792 15,950,162 16,746,238 799,640 Invesco V.I. Core Equity Sub-Account 14,574 366,685 3,655 49,401 Invesco V.I. Capital Appreciation Sub-Account 6,123 155,295 1,082 35,624 Invesco V.I. International Growth Sub-Account 3,946,576 98,467,225 36,432,068 510,665 Invesco V.I. Basic Balanced Sub-Account 27,892 301,355 4,894 24,784 Invesco V.I. Global Real Estate Sub-Account 678,299 9,042,274 3,790,505 309,139 Invesco V.I. Capital Growth Sub-Account 3,846 119,870 -- 8,050 Invesco V.I. Growth and Income Sub-Account 8,733,648 148,142,413 36,637,958 592,849 Invesco V.I. Equity and Income Sub-Account 24,564,045 326,446,141 70,288,189 3,953,488
129 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. STATEMENTS OF INVESTMENTS -- (CONTINUED) FOR THE YEAR ENDED AS OF DECEMBER 31, 2010 DECEMBER 31, 2010 ------------------------- ---------------------------- COST OF PROCEEDS SHARES COST ($) PURCHASES ($) FROM SALES ($) ----------- ------------- ------------- -------------- Invesco V.I. U.S. Mid Cap Value Sub-Account 2,212,190 25,207,800 9,263,612 836,199 MFS VIT Research Sub-Account 5,903 96,067 1,008 15,353 MFS VIT Investors Trust Sub-Account 2,166 39,290 623 13,268 MFS VIT New Discovery Sub-Account 2,560 38,541 -- 14,184 Oppenheimer VA Main Street Sub-Account 5,711 115,766 1,266 18,743 Oppenheimer VA Core Bond Sub-Account 1,280 13,812 1,102 50,722 Oppenheimer VA Global Strategic Income Sub-Account 735 3,560 1,289 11,599 Oppenheimer VA Main Street Small Cap Sub-Account 4,018,909 55,170,899 15,089,427 832,007 Oppenheimer VA Money Sub-Account 116,314 116,314 33 1,635 Fidelity VIP Asset Manager Sub-Account 7,000,337 107,080,925 2,324,176 13,743,209 Fidelity VIP Growth Sub-Account 3,973,726 148,871,784 1,342,267 13,066,856 Fidelity VIP Contrafund Sub-Account 15,919,366 363,404,771 40,310,943 25,217,077 Fidelity VIP Overseas Sub-Account 373,660 6,910,031 235,748 870,357 Fidelity VIP Equity-Income Sub-Account 333,899 7,692,063 145,835 1,087,513 Fidelity VIP Index 500 Sub-Account 517,420 65,508,800 2,563,106 10,790,512 Fidelity VIP Money Market Sub-Account 67,343,838 67,343,848 230,138,193 213,367,356 Fidelity VIP Mid Cap Sub-Account 5,827,779 151,861,692 48,179,611 1,099,672 Fidelity VIP FundsManager 60% Sub-Account 119,088,937 1,092,232,845 1,055,664,852 3,652 DWS International Sub-Account 2,550,214 26,873,889 1,003,192 2,649,564 MSF FI Value Leaders Sub-Account 37,230 5,900,185 1,331,032 720,873 MSF Russell 2000 Index Sub-Account 3,565,795 39,439,165 28,449,868 4,501,062 MSF Artio International Stock Sub-Account 404,146 5,182,094 637,629 795,707 MSF MetLife Stock Index Sub-Account 11,789,147 308,495,431 71,897,805 46,850,354 MSF BlackRock Legacy Large Cap Growth Sub-Account 348,576 6,695,981 1,517,524 1,933,239 MSF Neuberger Berman Genesis Sub-Account 848,305 12,627,898 750,993 1,200,400 MSF BlackRock Bond Income Sub-Account 439,865 46,178,651 10,146,441 7,247,103 MSF BlackRock Large Cap Value Sub-Account 280,801 3,280,712 372,273 485,885 MSF Barclays Capital Aggregate Bond Index Sub-Account 7,893,439 85,787,064 61,397,649 5,303,650 MSF MFS Value Sub-Account 3,690,684 45,117,955 10,421,876 3,076,258 MSF Morgan Stanley EAFE Index Sub-Account 4,997,884 56,970,410 31,070,441 2,845,266 MSF MFS Total Return Sub-Account 314,552 43,448,609 3,606,339 6,290,401 MSF MetLife Mid Cap Stock Index Sub-Account 4,321,336 51,340,707 29,181,850 3,223,873 MSF Davis Venture Value Sub-Account 19,511,304 513,474,253 75,725,359 15,292,961 MSF Met/Artisan Mid Cap Value Sub-Account 1,294,055 274,922,023 10,350,566 18,865,641 MSF Jennison Growth Sub-Account 20,301,139 211,242,124 42,405,948 12,597,131 MSF BlackRock Money Market Sub-Account 5,538,860 553,885,965 325,262,547 347,909,761 MSF T. Rowe Price Small Cap Growth Sub-Account 516,124 5,806,277 1,377,323 1,602,805 MSF Western Asset Management U.S. Government Sub-Account 17,740,863 212,265,573 85,139,279 15,054,777 MSF Oppenheimer Global Equity Sub-Account 733,866 10,931,391 455,731 1,564,017 MSF MetLife Aggressive Allocation Sub-Account 183,585 1,967,684 330,494 253,071 MSF MetLife Conservative Allocation Sub-Account 873,970 9,058,075 3,254,881 4,689,851 MSF MetLife Conservative to Moderate Allocation Sub-Account 820,733 8,382,420 1,550,845 1,964,878 MSF MetLife Moderate Allocation Sub-Account 4,388,818 47,989,205 3,624,569 4,330,191 MSF MetLife Moderate to Aggressive Allocation Sub-Account 5,294,867 59,450,350 3,479,894 4,607,922 MSF T. Rowe Price Large Cap Growth Sub-Account 91,165 1,172,289 482,086 457,518 MSF Loomis Sayles Small Cap Core Sub-Account 33,108 5,811,914 4,601,393 566,889 MSF Neuberger Berman Mid Cap Value Sub-Account 100,087 1,657,183 1,545,474 78,134 MSF Met/Dimensional International Small Company Sub-Account 2,151,041 29,053,363 17,500,562 3,453,062 MSF Van Eck Global Natural Resources Sub-Account 4,129,471 60,114,952 44,607,714 690,724 Federated Capital Income Sub-Account (b) 1,516 12,745 21,722 8,938 Federated High Income Bond Sub-Account 4,214 29,999 2,201 528 Federated Kaufman Sub-Account (b) 5,339 69,784 79,567 9,762 Neuberger Genesis Sub-Account 182 6,192 -- 1,893
130 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. STATEMENTS OF INVESTMENTS -- (CONCLUDED) FOR THE YEAR ENDED AS OF DECEMBER 31, 2010 DECEMBER 31, 2010 ----------------------- ---------------------------- COST OF PROCEEDS SHARES COST ($) PURCHASES ($) FROM SALES ($) ---------- ------------ ------------- -------------- Alger Small Cap Growth Sub-Account 1,819,823 52,588,160 971,477 6,312,915 T. Rowe Price Growth Stock Sub-Account 223,044 6,175,653 252,923 1,121,377 T. Rowe Price International Stock Sub-Account 65,504 902,976 46,184 98,196 T. Rowe Price Prime Reserve Sub-Account 1,264,618 1,264,580 281,688 417,528 Janus Aspen Worldwide Sub-Account 216 5,077 36 657 American Funds Global Small Capitalization Sub-Account 3,774,377 71,975,602 16,228,804 7,242,021 American Funds Growth Sub-Account 10,467,684 535,538,238 72,383,428 7,004,780 American Funds Growth--Income Sub-Account 7,781,372 275,582,340 30,810,200 7,460,447 American Funds Global Growth Sub-Account 9,424,661 198,015,127 25,064,689 2,672,476 American Funds Bond Sub-Account 8,163,170 84,985,167 29,678,470 2,308,804 FTVIPT Mutual Shares Securities Sub-Account 6,928,348 120,513,176 14,672,950 1,848,145 FTVIPT Templeton Foreign Securities Sub-Account 5,576,194 85,015,887 9,475,579 5,274,881 FTVIPT Templeton Growth Securities Sub-Account 4,105,289 52,987,655 4,116,072 4,043,647 FTVIPT Franklin Income Securities Sub-Account 11,912,868 180,311,599 38,452,843 4,704,023 FTVIPT Templeton Global Bond Securities Sub-Account 4,530,230 79,832,257 37,511,017 1,008,741 FTVIPT Franklin Small Cap Value Securities Sub-Account 1,828,842 23,988,265 11,883,524 839,151 UIF U.S. Real Estate Sub-Account 5,341,879 87,652,308 5,764,840 8,108,987 Pioneer VCT Bond Sub-Account 204,205 2,252,108 579,194 459,419 Pioneer VCT Cullen Value Sub-Account 194,754 1,769,458 334,844 187,875 Pioneer VCT Emerging Markets Sub-Account 39,066 879,703 305,432 275,879 Pioneer VCT Equity Income Sub-Account 19,097 289,350 73,296 108,226 Pioneer VCT Fund Sub-Account 11,676 218,584 23,712 25,189 Pioneer VCT Ibbotson Growth Allocation Sub-Account 1,808,437 13,223,463 1,703,915 1,430,859 Pioneer VCT Ibbotson Moderate Allocation Sub-Account 2,581,341 20,906,141 1,749,959 1,272,525 Pioneer VCT Mid Cap Value Sub-Account 2,770,165 47,833,938 6,636,045 1,449,505 Pioneer VCT Real Estate Shares Sub-Account 14,328 148,596 33,389 83,817 LMPVET ClearBridge Variable Small Cap Growth Sub-Account 2,177,416 27,378,872 7,701,777 2,415,434 LMPVET ClearBridge Variable Large Cap Value Sub-Account 206,808 3,107,764 400,956 384,036 LMPVET ClearBridge Variable Fundamental All Cap Value Sub-Account 5,057,332 104,503,241 7,749,937 4,166,633 LMPVET ClearBridge Variable Appreciation Sub-Account 7,410,438 171,652,710 41,487,156 405,012 LMPVET ClearBridge Variable Aggressive Growth Sub-Account 9,581,972 142,477,812 11,397,551 9,456,478 LMPVET ClearBridge Variable Large Cap Growth Sub-Account 375,345 5,715,123 396,115 1,663,009 LMPVET Investment Counsel Variable Social Awareness Sub-Account 20,930 511,899 98,784 155,382 LMPVET ClearBridge Variable Equity Income Builder Sub-Account 8,076,591 90,915,158 15,986,624 5,572,787 LMPVET ClearBridge Variable Capital Sub-Account 467,865 6,974,572 218,625 949,690 LMPVET ClearBridge Variable Dividend Strategy Sub-Account 623,914 6,119,776 486,041 989,409 LMPVET Variable Lifestyle Allocation 50% Sub-Account 1,128,176 13,070,583 6,043,670 1,145,587 LMPVET Variable Lifestyle Allocation 70% Sub-Account 316,136 3,434,388 195,319 637,009 LMPVET Variable Lifestyle Allocation 85% Sub-Account 5,122,640 57,396,282 9,723,809 2,564,838 LMPVIT Western Asset Variable Adjustable Rate Income Sub-Account 245,154 2,292,723 212,089 349,980 LMPVIT Western Asset Variable Global High Yield Bond Sub-Account 7,743,036 65,022,907 15,151,146 4,684,107
(a) For the period May 3, 2010 to December 31, 2010. (b) For the period March 15, 2010 to December 31, 2010. 131 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009: MIST LORD ABBETT MIST LORD ABBETT MIST MORGAN STANLEY GROWTH AND INCOME BOND DEBENTURE MID CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- --------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 ------------- ------------- ------------- ------------- ------------- ------------- Units beginning of year 14,942,501 15,718,013 11,953,991 11,669,031 5,166,934 4,031,107 Units issued and transferred from other funding options 1,536,657 1,643,593 2,137,545 2,865,165 2,834,922 2,385,389 Units redeemed and transferred to other funding options (2,267,040) (2,419,105) (2,383,232) (2,580,205) (1,395,570) (1,249,562) ------------- ------------- ------------- ------------- ------------- ------------- Units end of year 14,212,118 14,942,501 11,708,304 11,953,991 6,606,286 5,166,934 ============= ============= ============= ============= ============= =============
MIST HARRIS OAKMARK MIST THIRD AVENUE MIST OPPENHEIMER INTERNATIONAL SMALL CAP VALUE CAPITAL APPRECIATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- --------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 ------------- ------------- ------------- ------------- ------------- ------------- Units beginning of year 18,176,767 16,938,263 17,777,766 16,437,324 26,093,951 29,172,000 Units issued and transferred from other funding options 9,297,531 4,876,032 4,136,137 4,335,703 1,245,884 1,766,498 Units redeemed and transferred to other funding options (3,884,345) (3,637,528) (3,119,919) (2,995,261) (3,726,005) (4,844,547) ------------- ------------- ------------- ------------- ------------- ------------- Units end of year 23,589,953 18,176,767 18,793,984 17,777,766 23,613,830 26,093,951 ============= ============= ============= ============= ============= =============
MIST PIMCO INFLATION MIST T. ROWE PRICE MIST MFS RESEARCH PROTECTED BOND MID CAP GROWTH INTERNATIONAL SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- --------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 ------------- ------------- ------------- ------------- ------------- ------------- Units beginning of year 37,506,865 23,243,826 31,597,201 24,389,138 21,694,779 20,463,384 Units issued and transferred from other funding options 23,935,539 20,070,324 15,342,005 12,284,767 4,866,440 5,385,340 Units redeemed and transferred to other funding options (8,974,936) (5,807,285) (6,582,761) (5,076,704) (4,161,521) (4,153,945) ------------- ------------- ------------- ------------- ------------- ------------- Units end of year 52,467,468 37,506,865 40,356,445 31,597,201 22,399,698 21,694,779 ============= ============= ============= ============= ============= =============
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 31, 2009. (d) For the period March 15, 2010 to December 31, 2010. 132 MIST LORD ABBETT MIST INVESCO MID CAP VALUE MIST LAZARD MID CAP SMALL CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- --------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 ------------ ------------ ------------- ------------- ------------- ------------- 3,034,782 1,489,703 8,013,598 7,502,381 11,180,366 10,535,898 2,103,106 2,149,047 2,475,756 2,001,176 3,041,631 2,757,690 (785,945) (603,968) (1,615,820) (1,489,959) (2,278,739) (2,113,222) ------------ ------------ ------------- ------------- ------------- ------------- 4,351,943 3,034,782 8,873,534 8,013,598 11,943,258 11,180,366 ============ ============ ============= ============= ============= =============
MIST LEGG MASON CLEARBRIDGE AGGRESSIVE GROWTH MIST PIMCO TOTAL RETURN MIST RCM TECHNOLOGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ----------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 ------------- ------------------ -------------- -------------- ------------- ------------- 12,110,468 12,239,079 71,654,403 43,564,435 13,832,826 10,849,282 4,529,477 2,516,706 60,350,932 38,284,077 7,800,959 6,974,066 (2,776,446) (2,645,317) (20,855,945) (10,194,109) (5,459,499) (3,990,522) ------------- ------------------ -------------- -------------- ------------- ------------- 13,863,499 12,110,468 111,149,390 71,654,403 16,174,286 13,832,826 ============= ================== ============== ============== ============= =============
MIST CLARION GLOBAL MIST TURNER MIST GOLDMAN SACHS REAL ESTATE MID CAP GROWTH MID CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- --------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 ------------- ------------- ------------- ------------- ------------- ------------- 7,999,282 6,912,531 4,875,425 4,470,347 6,218,018 7,184,822 3,600,130 3,040,495 2,523,823 2,079,154 2,318,620 165,468 (1,664,652) (1,953,744) (1,540,783) (1,674,076) (1,204,443) (1,132,272) ------------- ------------- ------------- ------------- ------------- ------------- 9,934,760 7,999,282 5,858,465 4,875,425 7,332,195 6,218,018 ============= ============= ============= ============= ============= =============
133 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009: MIST METLIFE MIST METLIFE MIST METLIFE DEFENSIVE STRATEGY MODERATE STRATEGY BALANCED STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- ----------------------------- ----------------------------- 2010 2009 2010 2009 2010 2009 -------------- -------------- -------------- -------------- -------------- -------------- Units beginning of year 134,240,318 98,361,064 201,975,022 157,147,909 458,932,798 406,068,266 Units issued and transferred from other funding options 70,407,244 66,006,315 86,984,304 72,814,087 141,354,473 103,820,915 Units redeemed and transferred to other funding options (36,735,488) (30,127,061) (31,178,901) (27,986,974) (53,905,364) (50,956,383) -------------- -------------- -------------- -------------- -------------- -------------- Units end of year 167,912,074 134,240,318 257,780,425 201,975,022 546,381,907 458,932,798 ============== ============== ============== ============== ============== ==============
MIST LEGG MASON MIST MFS EMERGING MIST LOOMIS SAYLES VALUE EQUITY MARKETS EQUITY GLOBAL MARKETS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- --------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 ------------- ------------- ------------- ------------- ------------- ------------- Units beginning of year 12,311,635 9,617,947 18,534,256 9,820,617 7,198,911 5,848,580 Units issued and transferred from other funding options 5,203,304 5,890,764 15,900,566 12,353,343 5,309,769 3,056,769 Units redeemed and transferred to other funding options (2,652,048) (3,197,076) (5,147,163) (3,639,704) (1,887,989) (1,706,438) ------------- ------------- ------------- ------------- ------------- ------------- Units end of year 14,862,891 12,311,635 29,287,659 18,534,256 10,620,691 7,198,911 ============= ============= ============= ============= ============= =============
MIST PIONEER MIST BLACKROCK MIST BLACKROCK STRATEGIC INCOME LARGE CAP CORE HIGH YIELD SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- ------------------------ --------------------------- 2010 2009 2010 2009 2010 2009 ------------- ------------- ------------ ----------- ------------- ------------- Units beginning of year 10,957,582 7,373,489 613,169 508,491 5,656,394 1,114,960 Units issued and transferred from other funding options 8,203,544 5,077,225 598,887 239,528 8,972,443 6,142,738 Units redeemed and transferred to other funding options (2,045,977) (1,493,132) (167,817) (134,850) (5,594,027) (1,601,304) ------------- ------------- ------------ ----------- ------------- ------------- Units end of year 17,115,149 10,957,582 1,044,239 613,169 9,034,810 5,656,394 ============= ============= ============ =========== ============= =============
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 31, 2009. (d) For the period March 15, 2010 to December 31, 2010. 134 MIST METLIFE MIST METLIFE MIST VAN KAMPEN GROWTH STRATEGY AGGRESSIVE STRATEGY COMSTOCK SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- --------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 -------------- -------------- ------------- ------------- ------------- ------------- 490,302,032 494,438,103 41,343,573 39,565,727 16,791,760 5,638,201 37,570,947 64,373,807 12,038,416 8,976,104 7,045,507 13,684,341 (54,711,573) (68,509,878) (7,692,287) (7,198,258) (2,664,445) (2,530,782) -------------- -------------- ------------- ------------- ------------- ------------- 473,161,406 490,302,032 45,689,702 41,343,573 21,172,822 16,791,760 ============== ============== ============= ============= ============= =============
MIST DREMAN MIST JANUS FORTY SMALL CAP VALUE MIST PIONEER FUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------- ------------------------- ------------------------- 2010 2009 2010 2009 2010 2009 ---------- ---------- ------------ ------------ ------------ ------------ 192,470 143,074 1,579,618 1,254,915 3,239,380 1,227,336 273,072 116,640 478,958 662,099 3,338,408 2,278,606 (67,637) (67,244) (380,615) (337,396) (600,471) (266,562) ---------- ---------- ------------ ------------ ------------ ------------ 397,905 192,470 1,677,961 1,579,618 5,977,317 3,239,380 ========== ========== ============ ============ ============ ============
MIST RAINIER MIST AMERICAN FUNDS MIST AMERICAN FUNDS LARGE CAP EQUITY BALANCED ALLOCATION BOND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- ----------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 ------------- ------------- -------------- -------------- ------------- ------------- 4,962,869 4,139,663 147,529,141 47,541,825 14,305,838 3,151,521 2,614,493 3,515,585 124,042,699 109,740,383 16,482,411 12,969,406 (1,751,054) (2,692,379) (19,927,334) (9,753,067) (4,132,849) (1,815,089) ------------- ------------- -------------- -------------- ------------- ------------- 5,826,308 4,962,869 251,644,506 147,529,141 26,655,400 14,305,838 ============= ============= ============== ============== ============= =============
135 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009: MIST MIST AMERICAN FUNDS MIST AMERICAN FUNDS AMERICAN FUNDS GROWTH GROWTH ALLOCATION INTERNATIONAL SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- ----------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 ------------- ------------- -------------- -------------- ------------- ------------- Units beginning of year 30,278,080 9,556,758 139,002,030 74,827,606 19,914,429 7,576,246 Units issued and transferred from other funding options 29,340,669 25,878,772 40,270,626 84,328,111 18,617,289 15,340,459 Units redeemed and transferred to other funding options (7,212,138) (5,157,450) (23,886,355) (20,153,687) (4,727,176) (3,002,276) ------------- ------------- -------------- -------------- ------------- ------------- Units end of year 52,406,611 30,278,080 155,386,301 139,002,030 33,804,542 19,914,429 ============= ============= ============== ============== ============= =============
MIST SSGA MIST SSGA MIST MET/TEMPLETON GROWTH ETF GROWTH AND INCOME ETF INTERNATIONAL BOND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- --------------------------- ----------------------- 2010 2009 2010 2009 2010 2009 (a) ------------- ------------- ------------- ------------- ------------ ---------- Units beginning of year 16,443,398 190,893 29,942,630 312,145 775,327 -- Units issued and transferred from other funding options 17,578,371 19,507,804 60,995,275 32,168,027 2,588,044 844,394 Units redeemed and transferred to other funding options (4,885,703) (3,255,299) (5,109,943) (2,537,542) (380,775) (69,067) ------------- ------------- ------------- ------------- ------------ ---------- Units end of year 29,136,066 16,443,398 85,827,962 29,942,630 2,982,596 775,327 ============= ============= ============= ============= ============ ==========
INVESCO V.I. INVESCO V.I. INVESCO V.I. GLOBAL INTERNATIONAL GROWTH BASIC BALANCED REAL ESTATE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- -------------------------- ------------------------ 2010 2009 2010 2009 2010 2009 ------------ ------------ --------------- ---------- ------------ ----------- Units beginning of year 2,818,925 1,618,515 60,967 88,650 704,385 449,308 Units issued and transferred from other funding options 1,870,709 1,438,213 -- -- 606,861 403,915 Units redeemed and transferred to other funding options (362,061) (237,803) (5,000) (27,683) (162,303) (148,838) ------------ ------------ --------------- ---------- ------------ ----------- Units end of year 4,327,573 2,818,925 55,967 60,967 1,148,943 704,385 ============ ============ =============== ========== ============ ===========
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 31, 2009. (d) For the period March 15, 2010 to December 31, 2010. 136 MIST AMERICAN FUNDS MIST MET/FRANKLIN MIST MET/FRANKLIN TEMPLETON MODERATE ALLOCATION MUTUAL SHARES FOUNDING STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------- --------------------------- ------------------------------ 2010 2009 2010 2009 2010 2009 -------------- ------------- ------------- ------------- ------------- ---------------- 89,994,728 29,162,701 7,713,701 1,978,335 49,352,169 27,525,771 65,794,039 66,983,370 7,738,231 6,931,863 19,542,207 30,026,563 (11,912,100) (6,151,343) (1,769,941) (1,196,497) (9,578,580) (8,200,165) -------------- ------------- ------------- ------------- ------------- ---------------- 143,876,667 89,994,728 13,681,991 7,713,701 59,315,796 49,352,169 ============== ============= ============= ============= ============= ================
MIST MET/ MIST MET/ TEMPLETON EATON VANCE INVESCO V.I. CAPITAL GROWTH FLOATING RATE INVESCO V.I. CORE EQUITY APPRECIATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------- ---------------- --------------------------- ----------------------- 2010 (b) 2010 (b) 2010 2009 2010 2009 -------------- ---------------- ---------- ---------------- --------- ------------- -- -- 99,143 120,534 41,631 50,723 665,172 1,761,955 21 26 18 50 (50,615) (161,810) (10,524) (21,417) (8,520) (9,142) -------------- ---------------- ---------- ---------------- --------- ------------- 614,557 1,600,145 88,640 99,143 33,129 41,631 ============== ================ ========== ================ ========= =============
INVESCO V.I. INVESCO V.I. INVESCO V.I. CAPITAL GROWTH GROWTH AND INCOME EQUITY AND INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 --------------- --------- ------------ ------------ ------------- ------------- 26,829 33,379 6,896,039 4,699,178 17,747,381 13,625,412 32,291 3,258 2,959,924 2,920,745 6,790,513 6,649,121 (33,757) (9,808) (794,200) (723,884) (2,338,446) (2,527,152) --------------- --------- ------------ ------------ ------------- ------------- 25,363 26,829 9,061,763 6,896,039 22,199,448 17,747,381 =============== ========= ============ ============ ============= =============
137 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009: INVESCO V.I. U.S. MID CAP VALUE MFS VIT RESEARCH MFS VIT INVESTORS TRUST SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------- -------------------------- 2010 2009 2010 2009 2010 2009 ------------ ------------ --------- --------- --------- ---------------- Units beginning of year 1,763,519 1,130,852 23,944 26,232 11,563 13,271 Units issued and transferred from other funding options 1,259,195 948,950 -- -- -- -- Units redeemed and transferred to other funding options (349,066) (316,283) (2,742) (2,288) (2,880) (1,708) ------------ ------------ --------- --------- --------- ---------------- Units end of year 2,673,648 1,763,519 21,202 23,944 8,683 11,563 ============ ============ ========= ========= ========= ================
OPPENHEIMER VA OPPENHEIMER VA GLOBAL STRATEGIC INCOME MAIN STREET SMALL CAP OPPENHEIMER VA MONEY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ------------------------- ----------------------- 2010 2009 2010 2009 2010 2009 --------- ---------------- ------------ ------------ ------ ---------------- Units beginning of year 1,786 1,903 3,126,840 1,863,546 20,177 25,333 Units issued and transferred from other funding options -- -- 1,486,005 1,625,772 -- -- Units redeemed and transferred to other funding options (1,343) (117) (485,637) (362,478) -- (5,156) --------- ---------------- ------------ ------------ ------ ---------------- Units end of year 443 1,786 4,127,208 3,126,840 20,177 20,177 ========= ================ ============ ============ ====== ================
FIDELITY VIP FIDELITY VIP OVERSEAS EQUITY-INCOME FIDELITY VIP INDEX 500 SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------ ---------------------- ------------------------- 2010 2009 2010 2009 2010 2009 ----------- ------------ ---------- ----------- ------------ ------------ Units beginning of year 663,667 713,199 619,856 744,861 5,300,313 6,061,847 Units issued and transferred from other funding options 39,152 50,415 3,984 9,192 20,873 26,253 Units redeemed and transferred to other funding options (109,091) (99,947) (93,665) (134,197) (755,797) (787,787) ----------- ------------ ---------- ----------- ------------ ------------ Units end of year 593,728 663,667 530,175 619,856 4,565,389 5,300,313 =========== ============ ========== =========== ============ ============
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 31, 2009. (d) For the period March 15, 2010 to December 31, 2010. 138 MFS VIT NEW DISCOVERY OPPENHEIMER VA MAIN STREET OPPENHEIMER VA CORE BOND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------ ----------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 --------- -------------- --------- ------------------- ---------- ---------------- 6,461 10,205 28,105 31,897 12,533 22,518 -- -- -- -- -- -- (1,510) (3,744) (3,878) (3,792) (10,581) (9,985) --------- -------------- --------- ------------------- ---------- ---------------- 4,951 6,461 24,227 28,105 1,952 12,533 ========= ============== ========= =================== ========== ================
FIDELITY VIP ASSET MANAGER FIDELITY VIP GROWTH FIDELITY VIP CONTRAFUND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- --------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 ------------- --------------- ------------- ------------- ------------- ------------- 9,345,424 10,322,631 11,893,241 12,838,680 15,955,996 16,114,037 344,604 452,720 612,157 850,650 2,046,178 2,189,237 (1,426,044) (1,429,927) (1,554,058) (1,796,089) (2,294,600) (2,347,278) ------------- --------------- ------------- ------------- ------------- ------------- 8,263,984 9,345,424 10,951,340 11,893,241 15,707,574 15,955,996 ============= =============== ============= ============= ============= =============
FIDELITY VIP FIDELITY VIP MONEY MARKET FIDELITY VIP MID CAP FUNDSMANAGER 60% SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------- ------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 (c) -------------- ------------- ------------ ------------ -------------- ------------ 6,126,543 5,530,761 3,075,278 1,905,032 4,074,373 -- 96,878,440 5,540,548 1,773,206 1,472,702 116,408,584 4,203,193 (95,512,578) (4,944,766) (483,903) (302,456) (1,658,506) (128,820) -------------- ------------- ------------ ------------ -------------- ------------ 7,492,405 6,126,543 4,364,581 3,075,278 118,824,451 4,074,373 ============== ============= ============ ============ ============== ============
139 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009: DWS INTERNATIONAL MSF FI VALUE LEADERS MSF RUSSELL 2000 INDEX SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ----------------------- ------------------------- 2010 2009 2010 2009 2010 2009 ------------ ------------ ---------- ------------ ------------ ------------ Units beginning of year 2,700,348 2,819,612 265,682 251,266 1,108,328 478,053 Units issued and transferred from other funding options 230,638 318,119 99,348 58,351 2,273,866 942,236 Units redeemed and transferred to other funding options (459,601) (437,383) (59,447) (43,935) (678,616) (311,961) ------------ ------------ ---------- ------------ ------------ ------------ Units end of year 2,471,385 2,700,348 305,583 265,682 2,703,578 1,108,328 ============ ============ ========== ============ ============ ============
MSF NEUBERGER BERMAN MSF BLACKROCK MSF BLACKROCK GENESIS BOND INCOME LARGE CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------- ----------------------- --------------------- 2010 2009 2010 2009 2010 2009 ----------- ----------- ----------- ----------- ---------- ---------- Units beginning of year 605,787 587,465 911,026 748,389 264,703 257,240 Units issued and transferred from other funding options 96,136 117,875 285,215 405,171 48,171 66,523 Units redeemed and transferred to other funding options (123,360) (99,553) (243,407) (242,534) (59,421) (59,060) ----------- ----------- ----------- ----------- ---------- ---------- Units end of year 578,563 605,787 952,834 911,026 253,453 264,703 =========== =========== =========== =========== ========== ==========
MSF METLIFE MSF DAVIS VENTURE MSF MFS TOTAL RETURN MID CAP STOCK INDEX VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 ------------ ------------ ------------ ------------ ------------- ------------- Units beginning of year 1,006,138 977,440 1,692,693 999,722 41,123,511 37,459,395 Units issued and transferred from other funding options 126,620 268,850 2,366,351 929,016 11,167,451 9,976,448 Units redeemed and transferred to other funding options (203,556) (240,152) (615,743) (236,045) (5,875,539) (6,312,332) ------------ ------------ ------------ ------------ ------------- ------------- Units end of year 929,202 1,006,138 3,443,301 1,692,693 46,415,423 41,123,511 ============ ============ ============ ============ ============= =============
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 31, 2009. (d) For the period March 15, 2010 to December 31, 2010. 140 MSF ARTIO MSF BLACKROCK INTERNATIONAL STOCK MSF METLIFE STOCK INDEX LEGACY LARGE CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------- --------------------------- -------------------------- 2010 2009 2010 2009 2010 2009 ------------ ---------- ------------- ------------- ----------- -------------- 337,655 380,684 21,150,594 15,678,062 612,808 49,555 65,262 50,582 9,022,338 10,399,383 130,372 697,214 (84,505) (93,611) (6,370,972) (4,926,851) (141,995) (133,961) ------------ ---------- ------------- ------------- ----------- -------------- 318,412 337,655 23,801,960 21,150,594 601,185 612,808 ============ ========== ============= ============= =========== ==============
MSF BARCLAYS CAPITAL MSF MFS MSF MORGAN STANLEY AGGREGATE BOND INDEX VALUE EAFE INDEX SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ------------------------- ------------------------- 2010 2009 2010 2009 2010 2009 ------------- ------------ ------------ ------------ ------------ ------------ 2,010,364 527,803 2,664,361 2,080,451 2,230,107 1,129,559 4,667,969 1,661,447 1,034,132 941,946 3,151,237 1,389,614 (1,032,196) (178,886) (463,844) (358,036) (744,853) (289,066) ------------- ------------ ------------ ------------ ------------ ------------ 5,646,137 2,010,364 3,234,649 2,664,361 4,636,491 2,230,107 ============= ============ ============ ============ ============ ============
MSF MET/ARTISAN MSF JENNISON MSF BLACKROCK MID CAP VALUE GROWTH MONEY MARKET SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- --------------------------- ----------------------------- 2010 2009 2010 2009 2010 2009 ------------- ------------- ------------- ------------- -------------- -------------- 15,659,935 16,302,851 17,375,446 14,090,231 54,211,009 55,686,362 2,242,180 2,167,855 6,571,017 6,315,272 56,918,244 54,275,644 (2,738,170) (2,810,771) (3,716,293) (3,030,057) (60,114,235) (55,750,997) ------------- ------------- ------------- ------------- -------------- -------------- 15,163,945 15,659,935 20,230,170 17,375,446 51,015,018 54,211,009 ============= ============= ============= ============= ============== ==============
141 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009: MSF WESTERN ASSET MSF T. ROWE PRICE MANAGEMENT MSF OPPENHEIMER SMALL CAP GROWTH U.S. GOVERNMENT GLOBAL EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------- --------------------------- ----------------------- 2010 2009 2010 2009 2010 2009 ----------- ----------- ------------- ------------- ----------- ----------- Units beginning of year 481,022 332,266 8,573,371 5,356,593 672,213 671,786 Units issued and transferred from other funding options 99,207 279,905 7,037,310 6,094,104 41,665 135,384 Units redeemed and transferred to other funding options (114,897) (131,149) (3,052,095) (2,877,326) (104,909) (134,957) ----------- ----------- ------------- ------------- ----------- ----------- Units end of year 465,332 481,022 12,558,586 8,573,371 608,969 672,213 =========== =========== ============= ============= =========== ===========
MSF METLIFE MSF METLIFE MODERATE TO MSF T. ROWE PRICE MODERATE ALLOCATION AGGRESSIVE ALLOCATION LARGE CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- -------------------------- -------------------- 2010 2009 2010 2009 2010 2009 ------------ ------------ ------------ ------------- ---------- --------- Units beginning of year 4,293,013 4,259,716 5,328,120 5,745,796 39,614 27,135 Units issued and transferred from other funding options 262,765 358,294 257,429 505,834 18,052 20,301 Units redeemed and transferred to other funding options (363,254) (324,997) (391,533) (923,510) (17,170) (7,822) ------------ ------------ ------------ ------------- ---------- --------- Units end of year 4,192,524 4,293,013 5,194,016 5,328,120 40,496 39,614 ============ ============ ============ ============= ========== =========
FEDERATED MSF VAN ECK GLOBAL CAPITAL FEDERATED NATURAL RESOURCES INCOME FEDERATED HIGH INCOME BOND KAUFMAN SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- -------------- ----------------------------- -------------- 2010 2009 (a) 2010 (d) 2010 2009 2010 (d) ------------ ------------ -------------- -------- -------------------- -------------- Units beginning of year 1,195,095 -- -- 3,582 10,612 -- Units issued and transferred from other funding options 3,313,910 1,252,359 4,805 -- -- 15,991 Units redeemed and transferred to other funding options (541,780) (57,264) (1,957) (16) (7,030) (1,807) ------------ ------------ -------------- -------- -------------------- -------------- Units end of year 3,967,225 1,195,095 2,848 3,566 3,582 14,184 ============ ============ ============== ======== ==================== ==============
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 31, 2009. (d) For the period March 15, 2010 to December 31, 2010. 142 MSF METLIFE MSF METLIFE MSF METLIFE CONSERVATIVE TO AGGRESSIVE ALLOCATION CONSERVATIVE ALLOCATION MODERATE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------ -------------------------- ------------------------------ 2010 2009 2010 2009 2010 2009 ---------- ------------- ----------- -------------- ----------- ------------------ 169,980 159,053 967,744 602,771 836,071 664,967 33,862 36,343 250,831 562,989 117,347 287,835 (23,698) (25,416) (388,352) (198,016) (170,643) (116,731) ---------- ------------- ----------- -------------- ----------- ------------------ 180,144 169,980 830,223 967,744 782,775 836,071 ========== ============= =========== ============== =========== ==================
MSF MET/DIMENSIONAL MSF LOOMIS SAYLES MSF NEUBERGER BERMAN INTERNATIONAL SMALL CAP CORE MID CAP VALUE SMALL COMPANY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ----------------------- ------------------------- 2010 2009 2010 2009 2010 2009 ---------- --------- --------- ------------- ------------ ------------ 73,444 926 11,335 1,374 1,225,665 12,651 177,229 81,411 76,055 12,821 1,504,214 1,597,291 (36,366) (8,893) (4,939) (2,860) (647,605) (384,277) ---------- --------- --------- ------------- ------------ ------------ 214,307 73,444 82,451 11,335 2,082,274 1,225,665 ========== ========= ========= ============= ============ ============
NEUBERGER GENESIS ALGER SMALL CAP GROWTH T. ROWE PRICE GROWTH STOCK SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------------- ----------------------------- 2010 2009 2010 2009 2010 2009 ------- ------------ ------------ ------------ ---------- ------------------ 697 809 6,156,883 6,485,576 97,059 104,973 -- -- 440,832 526,993 4,878 6,341 (126) (112) (962,784) (855,686) (16,062) (14,255) ------- ------------ ------------ ------------ ---------- ------------------ 571 697 5,634,931 6,156,883 85,875 97,059 ======= ============ ============ ============ ========== ==================
143 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009: T. ROWE PRICE T. ROWE PRICE INTERNATIONAL STOCK PRIME RESERVE JANUS ASPEN WORLDWIDE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------- --------------------- ------------------------ 2010 2009 2010 2009 2010 2009 --------- ------------ ---------- ---------- ------- ---------------- Units beginning of year 72,797 76,425 76,856 120,897 999 1,089 Units issued and transferred from other funding options 3,959 5,193 15,515 43,074 -- -- Units redeemed and transferred to other funding options (8,639) (8,821) (22,358) (87,115) (98) (90) --------- ------------ ---------- ---------- ------- ---------------- Units end of year 68,117 72,797 70,013 76,856 901 999 ========= ============ ========== ========== ======= ================
AMERICAN FUNDS FTVIPT GLOBAL GROWTH AMERICAN FUNDS BOND MUTUAL SHARES SECURITIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------- ------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 ------------ ------------- ------------ ------------ ------------ -------------- Units beginning of year 6,579,263 5,818,048 3,608,245 1,887,421 4,784,657 3,944,854 Units issued and transferred from other funding options 1,820,255 1,803,874 2,268,949 2,179,228 1,283,480 1,429,387 Units redeemed and transferred to other funding options (929,411) (1,042,659) (693,711) (458,404) (636,702) (589,584) ------------ ------------- ------------ ------------ ------------ -------------- Units end of year 7,470,107 6,579,263 5,183,483 3,608,245 5,431,435 4,784,657 ============ ============= ============ ============ ============ ==============
FTVIPT TEMPLETON FTVIPT FRANKLIN GLOBAL BOND SECURITIES SMALL CAP VALUE SECURITIES UIF U.S. REAL ESTATE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ----------------------------- ------------------------- 2010 2009 2010 2009 2010 2009 ------------ ------------ ------------ ---------------- ------------ ------------ Units beginning of year 2,853,081 1,462,599 1,787,114 856,253 2,542,094 2,248,952 Units issued and transferred from other funding options 2,640,993 1,894,407 1,819,181 1,334,846 385,013 734,874 Units redeemed and transferred to other funding options (496,483) (503,925) (427,865) (403,985) (599,357) (441,732) ------------ ------------ ------------ ---------------- ------------ ------------ Units end of year 4,997,591 2,853,081 3,178,430 1,787,114 2,327,750 2,542,094 ============ ============ ============ ================ ============ ============
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 31, 2009. (d) For the period March 15, 2010 to December 31, 2010. 144 AMERICAN FUNDS AMERICAN FUNDS AMERICAN FUNDS GLOBAL SMALL CAPITALIZATION GROWTH GROWTH-INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------ ------------------------- ------------------------- 2010 2009 2010 2009 2010 2009 ------------ ----------------- ------------ ------------ ------------ ------------ 2,262,060 1,683,911 3,225,880 2,453,157 2,398,146 1,942,091 894,535 990,083 942,727 1,150,525 615,981 748,276 (578,587) (411,934) (450,931) (377,802) (375,057) (292,221) ------------ ----------------- ------------ ------------ ------------ ------------ 2,578,008 2,262,060 3,717,676 3,225,880 2,639,070 2,398,146 ============ ================= ============ ============ ============ ============
FTVIPT TEMPLETON FTVIPT TEMPLETON FTVIPT FRANKLIN FOREIGN SECURITIES GROWTH SECURITIES INCOME SECURITIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ------------------------- ------------------------- 2010 2009 2010 2009 2010 2009 ------------ ------------ ------------ ------------ ------------ ------------ 2,655,441 2,485,260 3,416,400 2,828,128 3,157,996 2,613,572 583,518 659,869 599,836 1,150,853 1,073,134 995,159 (456,954) (489,688) (565,909) (562,581) (508,398) (450,735) ------------ ------------ ------------ ------------ ------------ ------------ 2,782,005 2,655,441 3,450,327 3,416,400 3,722,732 3,157,996 ============ ============ ============ ============ ============ ============
PIONEER VCT PIONEER VCT BOND PIONEER VCT CULLEN VALUE EMERGING MARKETS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------- --------------------------- --------------------- 2010 2009 2010 2009 2010 2009 ---------- ---------- ---------- ---------------- ---------- ---------- 193,471 8,267 223,412 21,316 60,035 4,387 43,425 197,855 44,706 244,085 19,312 69,030 (40,047) (12,651) (24,374) (41,989) (16,583) (13,382) ---------- ---------- ---------- ---------------- ---------- ---------- 196,849 193,471 243,744 223,412 62,764 60,035 ========== ========== ========== ================ ========== ==========
145 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009: PIONEER VCT PIONEER VCT EQUITY INCOME PIONEER VCT FUND IBBOTSON GROWTH ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------- ------------------- ----------------------------- 2010 2009 2010 2009 2010 2009 --------- ------------------ --------- --------- ------------ ---------------- Units beginning of year 20,833 2,134 26,714 5,631 1,257,274 346,884 Units issued and transferred from other funding options 3,801 23,500 2,746 23,854 115,549 1,021,218 Units redeemed and transferred to other funding options (5,766) (4,801) (2,647) (2,771) (97,687) (110,828) --------- ------------------ --------- --------- ------------ ---------------- Units end of year 18,868 20,833 26,813 26,714 1,275,136 1,257,274 ========= ================== ========= ========= ============ ================
LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE VARIABLE VARIABLE SMALL CAP GROWTH VARIABLE LARGE CAP VALUE FUNDAMENTAL ALL CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------- --------------------------- ------------------------------ 2010 2009 2010 2009 2010 2009 ------------ --------------- ---------- ---------------- ------------ ----------------- Units beginning of year 1,757,714 1,214,861 196,692 188,889 2,989,079 2,724,852 Units issued and transferred from other funding options 888,650 952,710 29,654 34,053 524,162 679,485 Units redeemed and transferred to other funding options (496,739) (409,857) (31,447) (26,250) (412,366) (415,258) ------------ --------------- ---------- ---------------- ------------ ----------------- Units end of year 2,149,625 1,757,714 194,899 196,692 3,100,875 2,989,079 ============ =============== ========== ================ ============ =================
LMPVET INVESTMENT COUNSEL LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE VARIABLE SOCIAL AWARENESS VARIABLE EQUITY INCOME BUILDER VARIABLE CAPITAL SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------- --------------------------------- --------------------- 2010 2009 2010 2009 2010 2009 --------- ------------------ ------------ -------------------- ---------- ---------- Units beginning of year 19,412 25,775 6,144,958 5,136,303 422,476 459,735 Units issued and transferred from other funding options 3,746 1,814 1,589,873 1,895,270 21,542 31,219 Units redeemed and transferred to other funding options (5,734) (8,177) (956,792) (886,615) (74,152) (68,478) --------- ------------------ ------------ -------------------- ---------- ---------- Units end of year 17,424 19,412 6,778,039 6,144,958 369,866 422,476 ========= ================== ============ ==================== ========== ==========
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 31, 2009. (d) For the period March 15, 2010 to December 31, 2010. 146 PIONEER VCT PIONEER VCT PIONEER VCT IBBOTSON MODERATE ALLOCATION MID CAP VALUE REAL ESTATE SHARES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------- --------------------- 2010 2009 2010 2009 2010 2009 ------------ ------------------ ------------ ------------ --------- ----------- 1,818,031 109,195 1,309,529 1,105,223 16,034 3,001 101,045 1,811,953 378,519 385,549 1,992 21,091 (85,333) (103,117) (194,699) (181,243) (5,043) (8,058) ------------ ------------------ ------------ ------------ --------- ----------- 1,833,743 1,818,031 1,493,349 1,309,529 12,983 16,034 ============ ================== ============ ============ ========= ===========
LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE VARIABLE APPRECIATION VARIABLE AGGRESSIVE GROWTH VARIABLE LARGE CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------- ----------------------------- ---------------------------- 2010 2009 2010 2009 2010 2009 ------------ ------------ ------------- --------------- ----------- ---------------- 4,134,838 3,070,482 11,503,827 10,751,677 557,417 629,993 1,932,621 1,673,500 2,318,559 2,542,293 46,697 48,243 (552,206) (609,144) (2,079,414) (1,790,143) (144,764) (120,819) ------------ ------------ ------------- --------------- ----------- ---------------- 5,515,253 4,134,838 11,742,972 11,503,827 459,350 557,417 ============ ============ ============= =============== =========== ================
LMPVET CLEARBRIDGE LMPVET VARIABLE LMPVET VARIABLE VARIABLE DIVIDEND STRATEGY LIFESTYLE ALLOCATION 50% LIFESTYLE ALLOCATION 70% SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------- --------------------------- --------------------------- 2010 2009 2010 2009 2010 2009 ----------- ----------------- ----------- --------------- ---------- ---------------- 709,577 798,585 487,451 567,873 271,548 280,357 54,553 75,267 386,123 59,617 11,385 41,714 (122,614) (164,275) (104,052) (140,039) (46,812) (50,523) ----------- ----------------- ----------- --------------- ---------- ---------------- 641,516 709,577 769,522 487,451 236,121 271,548 =========== ================= =========== =============== ========== ================
147 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 7. SCHEDULES OF UNITS -- (CONCLUDED) FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009: LMPVIT WESTERN ASSET LMPVIT WESTERN ASSET LMPVET VARIABLE VARIABLE ADJUSTABLE VARIABLE GLOBAL LIFESTYLE ALLOCATION 85% RATE INCOME HIGH YIELD BOND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------------- ----------------------- ------------------------- 2010 2009 2010 2009 2010 2009 ------------ -------------- ---------- ------------ ------------ ------------ Units beginning of year 3,756,486 2,668,230 231,438 225,349 2,845,850 2,664,258 Units issued and transferred from other funding options 981,734 1,411,759 24,013 43,862 1,008,282 848,751 Units redeemed and transferred to other funding options (449,128) (323,503) (37,082) (37,773) (683,233) (667,159) ------------ -------------- ---------- ------------ ------------ ------------ Units end of year 4,289,092 3,756,486 218,369 231,438 3,170,899 2,845,850 ============ ============== ========== ============ ============ ============
(a) For the period May 4, 2009 to December 31, 2009. (b) For the period May 3, 2010 to December 31, 2010. (c) For the period October 15, 2009 to December 31, 2009. (d) For the period March 15, 2010 to December 31, 2010. 148 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS 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. 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 the respective stated periods in the five years ended December 31, 2010: AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- ----------------- ----------- ------------- ---------------- ------------------- MIST Lord Abbett Growth and 2010 14,212,118 26.09 - 86.60 558,423,606 1.11 0.89 - 2.35 14.30 - 16.29 Income Sub-Account 2009 14,942,501 22.55 - 74.47 502,483,411 2.30 0.89 - 2.35 15.64 - 17.62 2008 15,718,013 19.27 - 63.32 447,266,597 1.65 0.89 - 2.35 (37.82) - (36.76) 2007 18,116,672 30.63 - 100.12 822,332,309 0.94 0.89 - 2.35 1.30 - 7.97 2006 20,191,907 29.87 - 97.12 898,436,542 1.63 0.89 - 2.35 15.06 - 16.98 MIST Lord Abbett Bond 2010 11,708,304 8.12 - 25.87 267,920,695 6.21 0.89 - 2.35 10.34 - 12.18 Debenture Sub-Account 2009 11,953,991 7.27 - 23.06 245,913,998 7.17 0.89 - 2.35 33.60 - 35.91 2008 11,669,031 5.38 - 16.97 178,177,257 4.35 0.89 - 2.35 (20.50) - (19.12) 2007 15,162,946 6.68 - 20.98 288,948,614 5.32 0.89 - 2.35 4.06 - 5.90 2006 16,856,041 6.34 - 19.81 306,513,652 6.67 0.89 - 2.35 6.62 - 8.39 MIST Morgan Stanley Mid Cap 2010 6,606,286 2.04 - 17.98 89,015,672 0.01 0.89 - 2.30 17.15 - 30.84 Growth Sub-Account 2009 5,166,934 9.84 - 11.09 54,290,087 -- 0.95 - 2.30 53.69 - 55.79 2008 4,031,107 6.40 - 7.12 27,227,267 1.21 0.95 - 2.30 (47.97) - (47.26) 2007 1,845,571 12.30 - 13.50 23,676,085 -- 0.95 - 2.30 20.66 - 22.31 2006 612,842 10.20 - 10.75 6,430,532 -- 1.40 - 2.30 5.91 - 6.87 MIST Lord Abbett Mid Cap 2010 4,351,943 22.57 - 25.97 108,323,379 0.55 1.30 - 2.35 22.62 - 23.91 Value Sub-Account 2009 3,034,782 18.41 - 20.96 60,902,685 1.74 1.30 - 2.35 23.59 - 24.90 2008 1,489,703 14.89 - 16.78 23,899,560 0.41 1.30 - 2.35 (40.20) - (39.57) 2007 609,565 25.04 - 27.45 16,075,069 0.60 1.55 - 2.30 (1.70) - (0.96) 2006 363,014 25.47 - 27.96 9,728,623 0.36 1.40 - 2.30 9.63 - 10.62 MIST Lazard Mid Cap 2010 8,873,534 14.35 - 15.88 135,205,406 0.86 1.20 - 2.35 20.00 - 21.40 Sub-Account 2009 8,013,598 11.95 - 13.08 100,906,992 1.16 1.20 - 2.35 33.58 - 35.13 2008 7,502,381 8.94 - 9.61 70,201,744 0.96 1.30 - 2.35 (39.74) - (39.10) 2007 7,858,992 14.83 - 15.78 121,255,292 0.34 1.30 - 2.35 (4.98) - (3.97) 2006 7,830,725 15.64 - 16.43 126,365,450 0.31 1.30 - 2.35 12.02 - 13.20 MIST Invesco Small Cap 2010 11,943,258 14.70 - 16.99 186,610,558 -- 0.89 - 2.35 23.26 - 25.35 Growth Sub-Account 2009 11,180,366 11.92 - 13.55 140,473,926 -- 0.89 - 2.35 30.70 - 33.03 2008 10,535,898 9.11 - 10.19 100,447,225 -- 0.89 - 2.35 (40.16) - (39.15) 2007 11,452,863 15.20 - 16.74 181,044,517 -- 0.89 - 2.35 8.48 - 10.41 2006 12,354,489 14.00 - 15.16 178,634,572 -- 0.89 - 2.35 11.54 - 12.90 MIST Harris Oakmark 2010 23,589,953 17.23 - 20.14 459,739,197 1.82 1.30 - 2.35 13.71 - 14.92 International Sub-Account 2009 18,176,767 15.11 - 17.52 309,481,262 7.66 1.30 - 2.35 43.46 - 53.06 2008 16,938,263 10.69 - 11.45 189,181,455 1.67 1.30 - 2.35 (42.26) - (41.65) 2007 20,013,713 18.49 - 19.62 384,273,575 0.80 1.30 - 2.35 (3.43) - (2.40) 2006 20,892,628 19.13 - 20.10 412,470,437 2.44 1.30 - 2.35 25.86 - 27.19 MIST Third Avenue Small Cap 2010 18,793,984 16.49 - 18.91 327,520,477 1.17 0.89 - 2.35 17.11 - 19.08 Value Sub-Account 2009 17,777,766 14.06 - 15.88 262,479,306 1.15 0.89 - 2.35 23.51 - 25.70 2008 16,437,324 11.38 - 12.63 194,917,296 0.76 0.89 - 2.35 (31.46) - (30.31) 2007 18,432,805 16.58 - 18.13 316,501,402 1.00 0.89 - 2.35 (5.29) - (3.66) 2006 20,363,980 17.49 - 18.82 360,767,904 0.45 0.89 - 2.35 10.51 - 12.38
149 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED) AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 --------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ----------- ------------- ------------- ------------- ---------------- ------------------- MIST Oppenheimer Capital 2010 23,613,830 7.76 - 10.67 196,389,755 0.46 0.95 - 2.35 6.86 - 8.42 Appreciation Sub-Account 2009 26,093,951 7.26 - 9.84 201,465,075 -- 0.95 - 2.35 40.37 - 42.38 2008 29,172,000 5.16 - 6.91 159,163,585 3.52 0.95 - 2.35 (47.20) - (46.42) 2007 34,634,000 9.77 - 12.90 354,882,609 0.01 0.95 - 2.35 11.62 - 13.20 2006 39,279,261 8.75 - 11.41 357,893,449 0.10 1.15 - 2.35 5.12 - 6.58 MIST Legg Mason ClearBridge 2010 13,863,499 6.97 - 7.63 102,505,758 -- 1.30 - 2.35 20.92 - 22.20 Aggressive Growth 2009 12,110,468 5.76 - 6.24 73,409,292 -- 1.30 - 2.35 29.87 - 31.23 Sub-Account 2008 12,239,079 4.43 - 4.76 56,694,512 -- 1.30 - 2.35 (40.47) - (39.84) 2007 13,488,538 7.44 - 7.91 104,186,821 -- 1.30 - 2.35 (0.12) - 0.94 2006 15,227,592 7.44 - 7.84 116,887,678 -- 1.30 - 2.35 (4.01) - (3.00) MIST PIMCO Total Return 2010 111,149,390 11.27 - 17.67 1,761,602,464 3.20 0.89 - 2.35 5.65 - 7.45 Sub-Account 2009 71,654,403 10.54 - 16.44 1,055,450,302 6.39 0.89 - 2.35 15.29 - 17.35 2008 43,564,435 9.03 - 14.01 542,563,802 3.71 0.89 - 2.35 (1.93) - (0.26) 2007 37,539,072 9.10 - 14.05 469,985,360 3.32 0.89 - 2.35 5.05 - 6.89 2006 37,317,040 8.56 - 13.14 440,826,722 2.58 0.89 - 2.35 2.10 - 3.88 MIST RCM Technology 2010 16,174,288 6.39 - 7.45 109,729,016 -- 0.89 - 2.35 24.73 - 27.12 Sub-Account 2009 13,832,826 5.12 - 5.86 74,614,703 -- 0.89 - 2.35 55.30 - 57.75 2008 10,849,282 3.29 - 3.72 37,389,860 13.67 0.89 - 2.35 (45.75) - (44.75) 2007 12,386,524 6.06 - 6.72 78,045,995 -- 0.89 - 2.35 28.45 - 30.50 2006 10,314,725 4.71 - 5.15 50,206,487 -- 0.89 - 2.35 2.91 - 4.55 MIST PIMCO Inflation Protected 2010 52,467,468 12.81 - 13.99 711,162,874 2.23 1.20 - 2.35 5.26 - 6.48 Bond Sub-Account 2009 37,506,865 12.17 - 13.14 478,661,744 3.18 1.20 - 2.35 15.31 - 16.64 2008 23,243,826 10.55 - 11.26 254,891,679 3.71 1.20 - 2.35 (9.22) - (8.17) 2007 21,340,808 11.60 - 12.19 255,623,164 2.14 1.30 - 2.35 8.21 - 9.36 2006 22,804,934 10.72 - 11.14 250,682,193 3.75 1.30 - 2.35 (1.94) - (0.91) MIST T. Rowe Price Mid Cap 2010 40,356,445 9.67 - 10.58 414,850,131 -- 1.30 - 2.35 24.72 - 26.05 Growth Sub-Account 2009 31,597,201 7.75 - 8.40 258,174,943 -- 1.30 - 2.35 42.11 - 43.59 2008 24,389,138 5.45 - 5.85 139,067,651 -- 1.30 - 2.35 (41.15) - (40.53) 2007 25,165,985 9.25 - 9.83 242,043,730 -- 1.30 - 2.35 14.89 - 16.11 2006 26,478,451 8.04 - 8.47 220,015,833 -- 1.30 - 2.35 3.70 - 4.80 MIST MFS Research International 2010 22,399,698 13.27 - 15.17 318,521,626 1.70 0.95 - 2.35 8.83 - 10.35 Sub-Account 2009 21,694,779 12.19 - 13.75 281,155,296 3.12 0.95 - 2.35 28.50 - 30.32 2008 20,463,384 9.48 - 10.55 204,675,511 1.89 0.95 - 2.35 (43.71) - (42.91) 2007 19,606,367 16.84 - 18.48 345,568,972 1.22 0.95 - 2.35 10.65 - 12.21 2006 18,205,030 15.21 - 17.35 287,904,765 1.63 0.89 - 2.35 23.63 - 25.79 MIST Clarion Global Real Estate 2010 9,934,760 13.39 - 14.36 139,330,754 7.76 1.30 - 2.35 13.41 - 14.61 Sub-Account 2009 7,999,282 11.80 - 12.53 98,120,895 3.11 1.30 - 2.35 31.61 - 33.00 2008 6,912,531 8.97 - 9.42 63,965,106 1.66 1.30 - 2.35 (43.03) - (42.43) 2007 6,238,930 15.74 - 16.36 100,668,094 0.98 1.30 - 2.35 (16.99) - (16.11) 2006 7,072,940 18.97 - 19.50 136,595,815 0.95 1.30 - 2.35 34.40 - 35.81 MIST Turner Mid Cap Growth 2010 5,858,465 13.61 - 14.60 83,688,741 -- 1.30 - 2.35 24.21 - 25.51 Sub-Account 2009 4,875,425 10.96 - 11.63 55,630,594 -- 1.30 - 2.35 43.76 - 45.27 2008 4,470,347 7.62 - 8.01 35,217,413 -- 1.30 - 2.35 (49.50) - (48.97) 2007 4,472,333 15.09 - 15.69 69,239,590 -- 1.30 - 2.35 21.25 - 22.54 2006 3,921,915 12.45 - 12.80 49,712,120 -- 1.30 - 2.35 3.61 - 4.71
150 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED) AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 --------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ----------- ------------- ------------- ------------- ---------------- ------------------- MIST Goldman Sachs Mid Cap 2010 7,332,195 14.57 - 15.63 112,015,664 0.92 1.30 - 2.35 21.35 - 22.63 Value Sub-Account 2009 6,218,018 12.01 - 12.74 77,628,353 1.25 1.30 - 2.35 29.24 - 30.59 2008 7,184,822 9.29 - 9.76 68,935,462 0.79 1.30 - 2.35 (37.57) - (36.90) 2007 9,178,387 14.88 - 15.47 140,073,719 0.49 1.30 - 2.35 0.69 - 1.76 2006 9,011,063 14.78 - 15.20 135,606,841 -- 1.30 - 2.35 13.01 - 14.20 MIST MetLife Defensive Strategy 2010 167,912,074 11.40 - 12.39 2,003,850,499 3.05 1.00 - 2.35 8.32 - 9.80 Sub-Account 2009 134,240,318 10.52 - 11.28 1,466,386,791 2.86 1.00 - 2.35 14.50 - 21.50 2008 98,361,064 8.77 - 9.21 887,719,339 1.41 1.15 - 2.35 (22.50) - (21.56) 2007 51,959,475 11.31 - 11.75 600,410,325 1.89 1.15 - 2.35 3.45 - 4.70 2006 35,961,422 10.93 - 11.18 399,117,450 0.01 1.30 - 2.35 6.11 - 7.23 MIST MetLife Moderate Strategy 2010 257,780,425 11.46 - 12.34 3,094,289,659 2.46 1.15 - 2.35 9.79 - 11.12 Sub-Account 2009 201,975,022 10.44 - 11.11 2,188,428,006 3.18 1.15 - 2.35 23.16 - 24.65 2008 157,147,909 8.48 - 8.91 1,371,420,955 1.75 1.15 - 2.35 (28.14) - (27.26) 2007 132,930,004 11.79 - 12.25 1,602,068,224 1.93 1.15 - 2.35 3.73 - 4.99 2006 106,444,385 11.37 - 11.63 1,227,960,101 0.01 1.30 - 2.35 7.68 - 8.81 MIST MetLife Balanced Strategy 2010 546,381,907 11.25 - 12.12 6,437,293,439 2.05 1.15 - 2.35 10.96 - 12.28 Sub-Account 2009 458,932,798 10.14 - 10.79 4,832,135,577 -- 1.15 - 2.35 25.35 - 26.87 2008 406,068,266 8.09 - 8.50 3,383,789,930 4.75 1.15 - 2.35 (33.52) - (32.72) 2007 407,763,369 12.17 - 12.64 5,073,218,651 1.64 1.15 - 2.35 2.43 - 3.68 2006 324,915,762 11.88 - 12.15 3,917,704,428 0.01 1.30 - 2.35 9.38 - 10.54 MIST MetLife Growth Strategy 2010 473,161,406 11.14 - 12.00 5,512,372,206 1.71 1.15 - 2.35 12.81 - 14.17 Sub-Account 2009 490,302,032 9.88 - 10.51 5,026,063,304 -- 1.15 - 2.35 27.08 - 28.61 2008 494,438,103 7.77 - 8.17 3,958,612,323 3.49 1.15 - 2.35 (39.32) - (38.58) 2007 481,475,567 12.81 - 13.30 6,304,660,461 1.10 1.15 - 2.35 2.26 - 3.50 2006 325,383,030 12.53 - 12.81 4,136,759,495 0.01 1.30 - 2.35 10.96 - 12.13 MIST MetLife Aggressive 2010 45,689,702 10.94 - 11.78 522,967,837 1.18 1.15 - 2.35 13.80 - 15.17 Strategy Sub-Account 2009 41,343,573 9.62 - 10.23 412,402,731 -- 1.15 - 2.35 29.56 - 31.13 2008 39,565,727 7.42 - 7.80 302,274,534 3.60 1.15 - 2.35 (42.19) - (41.49) 2007 46,258,233 12.84 - 13.34 607,023,915 1.29 1.15 - 2.35 0.48 - 1.70 2006 49,085,211 12.78 - 13.07 636,476,170 0.01 1.30 - 2.35 11.02 - 12.18 MIST Van Kampen Comstock 2010 21,172,822 9.76 - 14.59 230,561,318 1.45 0.95 - 2.35 12.19 - 13.80 Sub-Account 2009 16,791,760 8.70 - 12.82 161,042,507 1.11 0.95 - 2.35 23.63 - 30.57 2008 5,638,201 7.03 - 7.31 40,651,730 1.74 1.30 - 2.35 (37.41) - (36.74) 2007 5,330,717 11.24 - 11.56 60,993,695 1.34 1.30 - 2.35 (4.77) - (3.76) 2006 4,218,383 11.80 - 12.01 50,349,650 -- 1.30 - 2.35 13.36 - 14.56 MIST Legg Mason Value Equity 2010 14,862,891 6.36 - 6.83 98,632,539 1.93 0.95 - 2.35 4.85 - 6.32 Sub-Account 2009 12,311,635 6.06 - 6.43 77,277,821 1.49 0.95 - 2.35 34.76 - 36.65 2008 9,617,947 4.51 - 4.70 44,429,063 0.02 0.95 - 2.35 (55.68) - (55.05) 2007 5,608,172 10.15 - 10.46 57,822,803 -- 0.95 - 2.35 (8.10) - (6.80) 2006 3,602,950 11.05 - 11.18 40,088,253 -- 1.30 - 2.35 4.11 - 5.21 MIST MFS Emerging Markets 2010 29,287,659 12.03 - 14.53 365,169,255 0.97 0.95 - 2.35 20.79 - 22.49 Equity Sub-Account 2009 18,534,256 9.96 - 12.02 189,762,080 1.45 0.95 - 2.35 65.01 - 67.34 (Commenced 5/1/2006) 2008 9,820,617 6.03 - 7.28 60,422,758 1.29 0.95 - 2.35 (56.57) - (52.63) 2007 4,415,597 13.89 - 14.22 62,075,247 0.04 0.95 - 2.35 33.43 - 35.32 2006 901,069 10.41 - 10.49 9,424,659 1.65 1.30 - 2.35 4.12 - 4.86
151 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED) AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ----------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ----------- --------------- ------------- ------------- ---------------- ------------------- MIST Loomis Sayles Global 2010 10,620,691 12.48 - 13.10 137,171,845 2.99 1.30 - 2.35 19.18 - 20.43 Markets Sub-Account 2009 7,198,911 10.47 - 10.88 77,383,467 1.95 1.30 - 2.35 37.54 - 39.00 (Commenced 5/1/2006) 2008 5,848,580 7.61 - 7.83 45,350,255 4.63 1.30 - 2.35 (40.68) - (40.05) 2007 4,274,323 12.83 - 13.06 55,474,222 -- 1.30 - 2.35 24.87 - 26.19 2006 754,781 10.27 - 10.35 7,786,909 1.55 1.30 - 2.35 2.74 - 3.46 MIST Janus Forty Sub-Account 2010 397,905 106.29 - 160.04 53,356,686 1.30 1.30 - 2.35 3.20 - 8.00 (Commenced 5/1/2006) 2009 192,470 99.16 - 121.06 21,865,637 -- 1.55 - 2.30 39.96 - 41.01 2008 143,074 70.85 - 85.85 11,490,581 4.86 1.55 - 2.30 (43.18) - (42.75) 2007 62,044 124.70 - 149.97 8,715,091 0.08 1.55 - 2.30 27.48 - 28.45 2006 12,842 97.82 - 120.96 1,410,409 -- 1.40 - 2.30 0.74 - 1.65 MIST Dreman Small Cap Value 2010 1,677,961 14.14 - 14.87 24,426,974 0.82 1.20 - 2.30 16.82 - 17.83 Sub-Account 2009 1,579,618 12.10 - 12.62 19,575,088 0.88 1.20 - 2.30 26.15 - 27.24 (Commenced 5/1/2006) 2008 1,254,915 9.59 - 9.92 12,261,677 0.72 1.20 - 2.30 (26.93) - (21.55) 2007 865,483 13.13 - 13.40 11,511,054 -- 1.55 - 2.30 (3.24) - (2.50) 2006 386,322 13.57 - 13.78 5,287,629 0.53 1.40 - 2.30 21.42 - 22.51 MIST Pioneer Fund Sub-Account 2010 5,977,317 16.24 - 20.40 112,914,666 0.78 0.95 - 2.30 13.47 - 15.12 (Commenced 5/1/2006) 2009 3,239,380 14.30 - 17.72 53,308,711 1.52 0.95 - 2.30 21.07 - 27.31 2008 1,227,336 11.81 - 14.44 16,447,869 0.83 0.95 - 2.30 (34.37) - (33.47) 2007 441,310 17.99 - 21.26 8,679,759 0.78 1.10 - 2.30 2.60 - 3.85 2006 202,477 17.53 - 19.69 3,839,197 -- 1.40 - 2.30 13.30 - 14.32 MIST Pioneer Strategic Income 2010 17,115,149 12.17 - 27.26 419,601,867 4.58 0.95 - 2.20 5.21 - 11.12 Sub-Account 2009 10,957,582 11.11 - 24.54 251,000,578 4.72 0.95 - 2.15 23.08 - 31.83 (Commenced 5/1/2006) 2008 7,373,489 16.54 - 18.61 129,051,542 6.27 0.95 - 1.90 (12.43) - (11.59) 2007 4,979,963 18.89 - 21.05 98,174,413 0.56 0.95 - 1.90 4.63 - 5.63 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 Core 2010 1,044,239 8.60 - 9.47 9,613,588 1.06 1.55 - 2.30 10.01 - 10.85 Sub-Account 2009 613,169 7.82 - 8.54 5,078,728 1.34 1.55 - 2.30 16.49 - 17.35 (Commenced 5/1/2006) 2008 508,491 6.71 - 7.28 3,599,088 0.57 1.55 - 2.30 (38.73) - (38.27) 2007 390,444 10.96 - 11.80 4,467,216 0.64 1.55 - 2.30 0.28 - 4.87 2006 176,805 10.53 - 11.40 1,947,743 -- 1.40 - 2.30 11.66 - 12.66 MIST BlackRock High Yield 2010 9,034,810 11.92 - 21.07 182,367,303 5.88 1.20 - 2.35 5.99 - 14.28 Sub-Account 2009 5,656,394 16.02 - 18.43 100,278,538 3.54 1.30 - 2.35 43.24 - 44.75 (Commenced 5/1/2006) 2008 1,114,960 11.47 - 12.73 13,709,683 5.00 1.30 - 2.30 (25.93) - (25.14) 2007 450,432 15.68 - 16.78 7,452,180 8.47 1.70 - 2.30 0.35 - 0.96 2006 198,218 15.62 - 16.62 3,246,398 -- 1.70 - 2.30 7.32 - 7.97 MIST Rainer Large Cap Equity 2010 5,826,308 7.72 - 7.95 45,894,091 0.42 1.30 - 2.20 12.87 - 13.90 Sub-Account 2009 4,962,869 6.82 - 6.98 34,404,016 0.82 1.30 - 2.35 20.41 - 21.65 (Commenced 11/12/2007) 2008 4,139,663 5.67 - 5.74 23,654,112 -- 1.30 - 2.35 (43.16) - (42.56) 2007 640,297 9.97 - 9.99 6,390,092 0.09 1.30 - 2.20 1.90 - 2.03 MIST American Funds Balanced 2010 251,644,506 9.64 - 10.00 2,478,289,324 1.01 1.00 - 2.35 9.55 - 11.05 Allocation Sub-Account 2009 147,529,141 8.80 - 9.00 1,315,175,709 -- 1.00 - 2.35 20.40 - 27.85 (Commenced 4/28/2008) 2008 47,541,825 6.97 - 7.02 332,865,017 6.67 1.15 - 2.35 (30.39) - (29.82) MIST American Funds Bond 2010 26,655,400 10.10 - 10.38 274,791,792 1.64 1.30 - 2.35 3.63 - 4.73 Sub-Account 2009 14,305,838 9.74 - 9.92 141,146,685 -- 1.30 - 2.35 9.52 - 10.67 (Commenced 4/28/2008) 2008 3,151,521 8.89 - 8.96 28,171,025 9.47 1.30 - 2.35 (11.39) - (10.76)
152 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED) AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 --------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ----------- ------------- ------------- ------------- ---------------- ------------------- MIST American Funds Growth 2010 52,406,611 8.97 - 9.23 480,253,525 0.20 1.30 - 2.35 15.57 - 16.79 Sub-Account 2009 30,278,080 7.76 - 7.90 238,097,827 -- 1.30 - 2.35 35.67 - 37.09 (Commenced 4/28/2008) 2008 9,556,758 5.72 - 5.76 54,966,248 7.34 1.30 - 2.35 (42.71) - (42.30) MIST American Funds Growth 2010 155,386,301 9.17 - 9.47 1,454,861,016 0.89 1.15 - 2.35 10.86 - 12.18 Allocation Sub-Account 2009 139,002,030 8.27 - 8.44 1,164,848,803 -- 1.15 - 2.35 30.93 - 32.51 (Commenced 4/28/2008) 2008 74,827,606 6.32 - 6.37 475,226,821 6.95 1.15 - 2.35 (36.80) - (36.28) MIST American Funds 2010 33,804,542 8.75 - 9.00 301,922,149 0.76 1.30 - 2.35 4.42 - 5.51 International Sub-Account 2009 19,914,429 8.38 - 8.53 168,980,812 -- 1.30 - 2.35 39.25 - 40.72 (Commenced 4/28/2008) 2008 7,576,246 6.02 - 6.06 45,810,468 11.18 1.30 - 2.20 (40.31) - (39.94) MIST American Funds Moderate 2010 143,876,667 9.88 - 10.25 1,452,175,003 1.41 1.00 - 2.35 7.36 - 8.82 Allocation Sub-Account 2009 89,994,728 9.20 - 9.42 839,089,528 -- 1.00 - 2.35 15.69 - 21.98 (Commenced 4/28/2008) 2008 29,162,701 7.64 - 7.70 223,820,453 6.96 1.15 - 2.35 (23.78) - (23.16) MIST Met/Franklin Mutual Shares 2010 13,681,991 8.67 - 8.92 121,115,835 -- 1.30 - 2.35 8.44 - 9.58 Sub-Account 2009 7,713,701 8.01 - 8.14 62,452,238 -- 1.30 - 2.30 22.05 - 23.27 (Commenced 4/28/2008) 2008 1,978,335 6.56 - 6.60 13,038,845 5.28 1.30 - 2.20 (34.35) - (33.94) MIST Met/Franklin Templeton 2010 59,315,796 9.43 - 9.74 571,218,147 -- 1.15 - 2.35 7.50 - 8.79 Founding Strategy Sub-Account 2009 49,352,169 8.80 - 8.95 438,687,403 -- 1.15 - 2.20 25.75 - 27.08 (Commenced 4/28/2008) 2008 27,525,771 6.99 - 7.05 193,348,119 3.15 1.15 - 2.20 (30.03) - (29.53) MIST SSgA Growth ETF 2010 29,136,066 10.71 - 11.41 325,453,346 1.35 1.15 - 2.35 11.50 - 12.85 Sub-Account 2009 16,443,398 9.670 - 10.11 163,291,494 0.93 1.15 - 2.20 26.29 - 28.66 (Commenced 11/10/2008) 2008 190,893 7.69 - 7.88 1,489,531 -- 1.30 - 2.05 0.88 - 0.99 MIST SSgA Growth and Income 2010 85,827,962 11.20 - 11.84 995,772,752 1.05 1.15 - 2.20 9.80 - 10.96 ETF Sub-Account 2009 29,942,630 10.20 - 10.67 314,125,011 0.78 1.15 - 2.20 22.17 - 23.97 (Commenced 11/10/2008) 2008 312,145 8.39 - 8.60 2,651,130 -- 1.30 - 2.05 1.88 - 1.99 MIST Met/Templeton International 2010 2,982,596 12.04 - 12.22 36,302,425 0.51 1.30 - 2.20 11.07 - 12.08 Bond Sub-Account 2009 775,327 10.84 - 10.90 8,438,524 -- 1.30 - 2.20 8.40 - 9.00 (Commenced 5/4/2009) MIST Met/Templeton Growth 2010 614,557 8.96 - 14.25 7,380,405 -- 1.10 - 2.05 4.65 - 5.96 Sub-Account (Commenced 5/3/2010) MIST Met/Eaton Vance Floating 2010 1,600,145 10.16 - 10.23 16,334,315 -- 1.30 - 2.30 1.64 - 2.31 Rate Sub-Account (Commenced 5/3/2010) Invesco V.I. Core Equity 2010 88,640 4.44 393,933 0.95 1.40 8.02 Sub-Account 2009 99,143 4.11 407,845 1.76 1.40 26.51 (Commenced 5/1/2006) 2008 120,534 3.25 391,928 1.79 1.40 (31.12) 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 Invesco V.I. Capital Appreciation 2010 33,129 4.31 142,665 0.73 1.40 13.89 Sub-Account 2009 41,631 3.78 157,420 0.62 1.40 19.39 2008 50,723 3.17 160,644 -- 1.40 (43.30) 2007 77,611 5.59 433,487 -- 1.40 10.45 2006 125,055 5.06 632,398 0.05 1.40 4.83
153 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED) AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 --------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- ----------------- ----------- ------------- ---------------- ------------------- Invesco V.I. International Growth 2010 4,327,573 7.46 - 27.87 111,888,065 2.01 0.95 - 1.75 10.66 - 11.55 Sub-Account 2009 2,818,925 6.70 - 24.98 65,315,391 1.74 0.95 - 1.75 32.57 - 33.63 2008 1,618,515 5.02 - 18.70 27,961,110 0.80 0.95 - 1.75 (41.56) - (41.09) 2007 445,944 8.54 - 31.74 11,954,057 1.05 0.95 - 1.75 0.37 - 13.15 2006 119,102 7.56 899,842 0.95 1.40 26.46 Invesco V.I. Basic Balanced 2010 55,967 4.59 256,608 1.93 1.40 6.55 Sub-Account 2009 60,967 4.30 262,318 4.77 1.40 31.99 2008 88,650 3.26 288,999 3.82 1.40 (39.18) 2007 125,704 5.36 673,813 2.71 1.40 0.77 2006 183,755 5.32 977,412 1.83 1.40 9.02 Invesco V.I. Global Real Estate 2010 1,148,943 7.73 - 7.98 9,028,134 5.55 0.95 - 1.75 15.19 - 16.13 Sub-Account 2009 704,385 6.71 - 6.88 4,786,308 -- 0.95 - 1.75 28.83 - 29.86 (Commenced 6/1/2007) 2008 449,308 5.21 - 5.29 2,360,062 9.45 0.95 - 1.75 (45.68) - (45.25) 2007 156,912 9.58 - 9.67 1,510,684 9.59 0.95 - 1.75 (13.59) - (6.80) Invesco V.I. Capital Growth 2010 25,363 5.16 130,764 -- 1.40 18.18 Sub-Account 2009 26,829 4.36 117,046 0.11 1.40 63.78 2008 33,379 2.66 88,923 0.55 1.40 (49.70) 2007 1,659,770 5.28 - 5.59 9,156,031 -- 1.50 - 2.30 13.98 - 15.33 2006 1,033,865 4.59 - 4.87 4,964,651 -- 1.40 - 2.30 0.30 - 1.43 Invesco V.I. Growth and Income 2010 9,061,763 6.63 - 25.06 160,437,278 0.09 0.95 - 1.90 10.09 - 11.13 Sub-Account 2009 6,896,039 5.97 - 22.55 107,604,807 3.60 0.95 - 1.90 21.78 - 22.94 2008 4,699,178 4.87 - 18.34 57,517,543 1.50 0.95 - 1.90 (33.49) - (32.85) 2007 3,069,791 7.27 - 27.31 49,067,204 1.01 0.95 - 1.90 0.58 - 1.55 2006 1,465,291 7.17 - 14.19 20,351,040 2.60 1.40 - 1.90 13.80 - 14.62 Invesco V.I. Equity and Income 2010 22,199,448 14.98 - 16.11 345,124,808 1.92 0.95 - 1.90 9.92 - 10.97 Sub-Account 2009 17,747,381 13.63 - 14.52 249,400,082 2.82 0.95 - 1.90 20.19 - 21.33 2008 13,625,412 11.34 - 11.97 158,238,412 2.44 0.95 - 1.90 (24.14) - (23.41) 2007 10,934,412 14.95 - 15.63 166,104,798 2.06 0.95 - 1.90 1.41 - 2.38 2006 4,592,861 14.74 - 14.96 68,376,576 0.79 1.50 - 1.90 10.46 - 10.91 Invesco V.I. U.S. Mid Cap Value 2010 2,673,648 10.35 - 10.70 28,139,044 0.80 0.95 - 1.75 20.06 - 21.03 Sub-Account 2009 1,763,519 8.62 - 8.84 15,401,650 1.18 0.95 - 1.75 36.75 - 37.84 (Commenced 6/1/2007) 2008 1,130,852 6.31 - 6.41 7,194,408 0.78 0.95 - 1.75 (42.44) - (41.98) 2007 257,428 10.95 - 11.05 2,833,669 0.17 0.95 - 1.75 (6.13) - (6.63) MFS VIT Research Sub-Account 2010 21,202 5.30 112,388 0.92 1.40 14.29 2009 23,944 4.64 111,057 1.44 1.40 28.73 2008 26,232 3.60 94,515 0.58 1.40 (36.98) 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 MFS VIT Investors Trust 2010 8,683 5.00 43,404 1.30 1.40 9.56 Sub-Account 2009 11,563 4.56 52,758 1.77 1.40 25.15 2008 13,271 3.65 48,391 0.96 1.40 (34.01) 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
154 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED) AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 --------------------------------------- --------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- ----------------- ----------- ------------- ---------------- ------------------- MFS VIT New Discovery 2010 4,951 9.47 46,865 -- 1.40 34.44 Sub-Account 2009 6,461 7.04 45,491 -- 1.40 60.90 2008 10,205 4.38 44,654 -- 1.40 (40.18) 2007 13,583 7.31 99,354 -- 1.40 1.08 2006 28,494 7.24 206,180 -- 1.40 11.65 Oppenheimer VA Main Street 2010 24,227 4.92 119,249 1.11 1.40 14.49 Sub-Account 2009 28,105 4.30 120,826 1.94 1.40 26.52 2008 31,897 3.40 108,399 1.52 1.40 (39.33) 2007 45,428 5.60 254,460 1.11 1.40 2.96 2006 59,121 5.44 321,623 1.13 1.40 13.43 Oppenheimer VA Core Bond 2010 1,952 5.06 9,885 4.81 1.40 9.87 Sub-Account 2009 12,533 4.61 57,756 -- 1.40 8.09 2008 22,518 4.26 96,005 4.53 1.40 (39.90) 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 Oppenheimer VA Global Strategic 2010 443 9.25 4,097 16.19 1.40 13.38 Income Sub-Account 2009 1,786 8.16 14,575 0.53 1.40 17.17 2008 1,903 6.97 13,254 5.21 1.40 (15.40) 2007 5,661 8.23 46,614 3.59 1.40 8.16 2006 6,741 7.61 51,318 4.20 1.40 6.00 Oppenheimer VA Main Street 2010 4,127,208 10.35 - 17.72 70,331,777 0.37 0.95 - 1.75 20.92 - 21.90 Small Cap Sub-Account 2009 3,126,840 8.51 - 14.54 43,881,910 0.52 0.95 - 1.75 34.52 - 35.58 2008 1,863,546 6.29 - 10.72 19,372,328 0.18 0.95 - 1.75 (39.08) - (38.59) 2007 492,857 10.26 - 17.46 8,314,186 0.03 0.95 - 1.75 (13.41) - (2.47) 2006 17,793 10.53 187,405 0.15 1.40 13.40 Oppenheimer VA Money 2010 20,177 5.76 116,310 0.03 1.40 (1.37) Sub-Account 2009 20,177 5.84 117,917 0.35 1.40 (1.07) 2008 25,333 5.91 149,653 2.83 1.40 1.34 2007 28,881 5.83 168,352 4.98 1.40 3.52 2006 33,346 5.63 187,777 4.54 1.40 3.26 Fidelity VIP Asset Manager 2010 8,263,984 12.22 - 12.71 101,784,889 1.66 0.89 - 1.40 12.67 - 13.26 Sub-Account 2009 9,345,424 10.84 - 11.23 102,112,475 2.38 0.89 - 1.40 27.32 - 27.96 2008 10,322,631 8.51 - 8.77 88,545,973 2.51 0.89 - 1.40 (29.71) - (29.35) 2007 11,728,296 12.10 - 12.42 143,069,941 6.10 0.89 - 1.40 12.69 - 14.48 2006 13,137,764 10.62 - 10.85 140,644,002 2.76 0.89 - 1.40 5.83 - 6.37 Fidelity VIP Growth Sub-Account 2010 10,951,340 13.38 - 13.81 147,385,504 0.28 0.89 - 1.40 22.44 - 23.08 2009 11,893,241 10.93 - 11.22 130,641,959 0.45 0.89 - 1.40 26.51 - 27.14 2008 12,838,680 8.64 - 8.83 111,413,507 0.78 0.89 - 1.40 (47.91) - (47.64) 2007 14,370,091 16.58 - 16.86 239,237,615 0.83 0.89 - 1.40 24.72 - 25.83 2006 16,167,140 13.24 - 13.40 214,865,663 0.40 0.89 - 1.40 5.37 - 5.91 Fidelity VIP Contrafund 2010 15,707,574 11.14 - 44.59 379,741,596 1.25 0.89 - 2.25 14.51 - 16.18 Sub-Account 2009 15,955,996 9.59 - 38.44 313,576,644 1.44 0.89 - 2.25 32.65 - 34.50 2008 16,114,037 7.13 - 28.60 222,674,108 1.01 0.89 - 2.25 (43.90) - (43.03) 2007 16,613,759 12.51 - 50.32 377,396,997 0.95 0.89 - 2.25 14.88 - 16.54 2006 17,625,464 10.73 - 40.96 338,418,167 1.29 0.89 - 2.25 9.11 - 10.73
155 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED) AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 --------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ----------- ------------- ------------- ------------- ---------------- ------------------- Fidelity VIP Overseas 2010 593,728 9.85 - 11.30 6,266,276 1.39 1.15 - 1.40 11.54 - 11.82 Sub-Account 2009 663,667 8.81 - 10.11 6,282,775 2.17 1.15 - 1.40 24.78 - 25.09 2008 713,199 7.04 - 8.09 5,413,449 2.46 1.15 - 1.40 (44.59) - (44.45) 2007 826,076 12.67 - 14.58 11,327,734 3.29 1.15 - 1.40 15.67 - 15.96 2006 951,985 10.93 - 12.59 11,259,345 0.91 1.15 - 1.40 16.44 - 16.73 Fidelity VIP Equity-Income 2010 530,175 11.98 6,350,751 1.75 1.40 13.56 Sub-Account 2009 619,856 10.55 6,538,981 2.24 1.40 28.40 2008 744,861 8.22 6,119,783 2.23 1.40 (43.46) 2007 942,455 14.53 13,694,030 1.64 1.40 0.11 2006 1,227,074 14.51 17,809,782 3.26 1.40 18.53 Fidelity VIP Index 500 2010 4,565,389 14.90 - 15.58 68,501,202 1.87 0.89 - 1.40 13.42 - 14.00 Sub-Account 2009 5,300,313 13.22 - 13.67 70,079,047 2.52 0.89 - 1.35 24.91 - 25.48 2008 6,061,847 10.58 - 10.89 64,164,439 2.01 0.89 - 1.35 (37.85) - (37.56) 2007 7,211,573 17.03 - 17.44 122,812,705 3.57 0.89 - 1.35 4.02 - 4.50 2006 8,294,641 16.29 - 16.69 135,796,690 1.77 0.89 - 1.40 14.12 - 14.71 Fidelity VIP Money Market 2010 7,492,405 7.33 - 11.34 67,343,833 0.17 0.89 - 2.05 (1.82) - (0.65) Sub-Account 2009 6,126,543 7.41 - 11.53 50,572,988 0.71 0.89 - 2.05 (0.68) - (0.17) 2008 5,530,761 7.46 - 8.02 41,701,796 2.97 0.89 - 1.40 1.58 - 2.11 2007 5,148,515 7.35 - 7.86 38,182,657 5.08 0.89 - 1.40 3.69 - 4.22 2006 4,981,073 7.08 - 7.54 35,607,299 4.77 0.89 - 1.40 3.43 - 3.96 Fidelity VIP Mid Cap 2010 4,364,581 40.36 - 45.24 187,246,537 0.14 0.95 - 1.90 26.16 - 27.36 Sub-Account 2009 3,075,278 31.99 - 35.52 103,784,411 0.54 0.95 - 1.90 37.12 - 38.43 2008 1,905,032 23.33 - 25.66 46,484,098 0.26 0.95 - 1.90 (40.75) - (40.18) 2007 997,653 39.38 - 42.90 40,496,316 0.51 0.95 - 1.90 13.16 - 14.24 2006 398,050 34.80 - 35.93 14,145,793 -- 1.50 - 1.90 10.29 - 10.73 Fidelity VIP FundsManager 2010 118,824,451 9.88 - 9.93 1,176,598,687 2.72 1.90 - 2.05 11.32 - 11.49 60% Sub-Account 2009 4,074,373 8.87 - 8.90 36,215,324 3.35 1.90 - 2.05 0.07 - 0.09 (Commenced 10/15/2009) DWS International Sub-Account 2010 2,471,385 8.43 - 8.48 20,962,763 2.18 1.35 - 1.40 0.21 - 0.26 2009 2,700,348 8.41 - 8.46 22,845,161 4.39 1.35 - 1.40 31.67 - 31.73 2008 2,819,612 6.39 - 6.42 18,108,679 1.39 1.35 - 1.40 (48.94) - (48.91) 2007 3,119,351 12.50 - 12.57 39,213,025 2.39 1.35 - 1.40 12.99 - 13.04 2006 3,170,743 11.07 - 11.12 35,260,353 1.83 1.35 - 1.40 24.17 - 24.23 MSF FI Value Leaders 2010 305,583 15.99 - 17.94 5,267,530 1.44 1.50 - 2.30 11.85 - 12.75 Sub-Account 2009 265,682 14.30 - 15.91 4,072,835 2.66 1.50 - 2.30 18.94 - 19.90 (Commenced 5/1/2006) 2008 251,266 12.02 - 13.27 3,223,563 1.80 1.50 - 2.30 (40.40) - (39.92) 2007 211,868 20.17 - 22.08 4,542,761 0.69 1.50 - 2.30 1.71 - 2.53 2006 126,575 19.83 - 21.76 2,662,087 -- 1.40 - 2.30 7.04 - 8.00 MSF Russell 2000 Index 2010 2,703,578 7.11 - 19.92 46,792,763 0.77 0.89 - 2.35 23.61 - 25.79 Sub-Account 2009 1,108,328 5.68 - 15.83 15,337,009 1.65 0.89 - 2.20 24.25 - 26.62 2008 478,053 4.57 - 12.68 5,298,056 1.35 0.89 - 1.40 (34.43) - (34.05) 2007 481,904 6.97 - 19.23 8,015,832 0.93 0.89 - 1.40 (2.89) - (2.39) 2006 490,302 7.17 - 19.71 8,227,895 0.92 0.89 - 1.40 16.33 - 16.92
156 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED) AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- ----------------- ----------- ------------- ---------------- ------------------- MSF Artio International Stock 2010 318,412 4.26 - 14.47 3,979,701 1.41 1.40 - 1.90 4.85 - 5.74 Sub-Account 2009 337,655 4.02 - 13.77 3,955,132 0.42 1.40 - 1.90 19.59 - 20.44 2008 380,684 3.34 - 11.48 3,539,311 2.93 1.40 - 1.90 (45.29) - (44.91) 2007 398,333 6.06 - 20.94 6,422,071 0.76 1.40 - 1.90 7.99 - 8.79 2006 262,656 5.57 - 19.34 3,232,921 0.70 1.40 - 1.90 14.05 - 14.87 MSF MetLife Stock Index 2010 23,801,960 11.03 - 45.76 343,187,076 1.63 0.89 - 2.90 11.41 - 13.81 Sub-Account 2009 21,150,594 9.85 - 40.20 281,243,641 2.10 0.89 - 2.90 23.01 - 26.75 2008 15,678,062 8.00 - 32.13 164,166,647 1.80 0.89 - 2.35 (38.72) - (37.66) 2007 17,885,006 13.05 - 51.54 299,989,839 0.90 0.89 - 2.35 2.52 - 4.30 2006 19,358,596 12.71 - 49.42 313,093,531 1.81 0.89 - 2.35 12.52 - 14.44 MSF BlackRock Legacy 2010 601,185 12.06 - 35.71 9,563,155 0.22 0.89 - 2.30 17.10 - 18.76 Large Cap Growth 2009 612,808 10.28 - 30.07 8,419,085 0.15 0.89 - 2.30 28.77 - 35.57 Sub-Account 2008 49,555 20.78 - 22.18 1,031,800 0.43 0.89 - 1.35 (37.36) - (37.07) 2007 31,453 33.18 - 35.25 1,046,603 0.17 0.89 - 1.35 17.12 - 17.66 2006 19,004 28.33 - 29.96 538,656 0.12 0.89 - 1.35 2.74 - 3.21 MSF Neuberger Berman Genesis 2010 578,563 16.81 - 17.64 9,730,049 0.51 0.89 - 1.35 19.95 - 20.50 Sub-Account 2009 605,787 14.02 - 14.64 8,493,213 1.10 0.89 - 1.35 11.63 - 12.15 2008 587,465 12.56 - 13.06 7,377,709 0.53 0.89 - 1.35 (39.23) - (38.95) 2007 625,394 20.66 - 21.39 12,924,658 0.30 0.89 - 1.35 (4.75) - (4.31) 2006 613,247 21.69 - 22.35 13,305,490 0.31 0.89 - 1.35 15.17 - 15.70 MSF BlackRock Bond Income 2010 952,834 42.45 - 65.04 47,336,145 3.77 0.89 - 2.30 5.72 - 7.38 Sub-Account 2009 911,026 40.15 - 60.57 42,636,576 6.49 0.89 - 2.30 6.81 - 8.50 2008 748,389 37.59 - 55.83 32,695,795 5.04 0.89 - 2.30 (5.77) - (4.29) 2007 654,278 39.89 - 58.33 30,160,113 2.44 0.89 - 2.30 3.70 - 5.35 2006 261,942 38.47 - 55.36 11,911,372 2.91 0.89 - 2.30 1.90 - 3.49 MSF BlackRock Large-Cap 2010 253,453 11.33 - 11.79 2,872,585 1.09 0.89 - 1.35 7.75 - 8.26 Value Sub-Account 2009 264,703 10.51 - 10.89 2,783,413 1.58 0.89 - 1.35 9.73 - 10.22 2008 257,240 9.58 - 9.88 2,464,834 0.86 0.89 - 1.35 (35.78) - (35.48) 2007 251,656 14.92 - 15.31 3,754,451 0.91 0.89 - 1.35 2.00 - 2.47 2006 154,904 14.62 - 14.94 2,265,770 1.04 0.89 - 1.35 17.73 - 18.27 MSF Barclays Capital Aggregate 2010 5,646,137 14.02 - 17.15 86,674,964 2.64 0.89 - 2.25 3.30 - 5.11 Bond Index Sub-Account 2009 2,010,364 13.73 - 16.32 29,893,966 3.64 0.89 - 2.15 2.27 - 4.24 2008 527,803 14.94 - 15.65 7,896,020 4.75 0.89 - 1.35 4.56 - 5.05 2007 436,992 14.29 - 14.90 6,246,008 4.31 0.89 - 1.35 5.43 - 5.92 2006 340,120 13.55 - 14.07 4,610,137 4.38 0.89 - 1.35 2.73 - 3.20 MSF MFS Value Sub-Account 2010 3,234,649 12.33 - 14.90 45,430,281 1.32 0.89 - 2.30 8.89 - 10.44 2009 2,664,361 11.22 - 13.56 33,984,060 -- 0.89 - 2.30 18.08 - 19.75 2008 2,080,451 9.41 - 11.38 22,207,620 1.81 0.89 - 2.30 (30.55) - (21.82) 2007 1,601,257 14.33 - 17.03 25,634,063 0.27 0.89 - 2.30 (5.09) - 6.03 2006 807,102 15.02 - 16.20 12,448,890 2.01 0.89 - 2.30 16.43 - 19.64 MSF Morgan Stanley EAFE Index 2010 4,636,491 11.54 - 14.17 58,834,689 2.24 0.89 - 2.15 5.47 - 7.24 Sub-Account 2009 2,230,107 10.94 - 13.21 27,098,496 3.30 0.89 - 2.15 26.95 - 35.25 2008 1,129,559 9.89 - 10.36 11,178,515 2.94 0.89 - 1.35 (42.86) - (42.60) 2007 1,079,041 17.30 - 18.05 18,684,621 1.93 0.89 - 1.35 9.32 - 9.83 2006 910,003 15.83 - 16.43 14,411,542 1.63 0.89 - 1.35 24.04 - 24.61
157 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED) AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- ----------------- ----------- ------------- ---------------- ------------------- MSF MFS Total Return 2010 929,202 37.99 - 53.68 40,676,709 2.91 0.89 - 2.15 7.53 - 9.10 Sub-Account 2009 1,006,138 35.33 - 49.20 40,772,224 4.14 0.89 - 2.15 15.84 - 17.55 2008 977,440 30.49 - 41.85 34,110,264 3.52 0.89 - 2.30 (24.08) - (15.13) 2007 1,100,140 38.88 - 54.24 50,198,332 1.84 0.89 - 2.30 1.79 - 3.45 2006 647,027 38.20 - 52.44 29,037,432 1.84 0.89 - 2.30 9.43 - 11.22 MSF MetLife Mid Cap Stock 2010 3,443,301 15.77 - 18.85 59,472,935 0.76 0.89 - 2.20 23.19 - 25.17 Index Sub-Account 2009 1,692,693 12.86 - 15.06 23,983,061 1.55 0.89 - 2.15 28.41 - 35.78 2008 999,722 10.67 - 11.09 10,679,425 1.39 0.89 - 1.35 (37.03) - (36.74) 2007 886,564 16.94 - 17.54 15,036,423 0.79 0.89 - 1.35 6.33 - 6.82 2006 751,885 15.93 - 16.42 11,992,134 1.17 0.89 - 1.35 8.62 - 9.12 MSF Davis Venture Value 2010 46,415,423 11.87 - 37.27 606,785,200 0.87 0.89 - 2.35 9.22 - 11.01 Sub-Account 2009 41,123,511 10.86 - 33.58 487,864,492 1.37 0.89 - 2.35 28.77 - 30.82 2008 37,459,395 8.43 - 25.67 339,962,645 1.19 0.89 - 2.35 (40.87) - (38.31) 2007 39,936,774 14.23 - 42.70 599,873,294 0.67 0.89 - 2.35 1.99 - 3.65 2006 43,433,483 13.94 - 41.19 632,598,729 0.71 0.89 - 2.35 11.76 - 13.57 MSF Met/Artisan Mid Cap Value 2010 15,163,945 12.80 - 34.58 213,857,206 0.59 0.89 - 2.35 12.09 - 14.02 Sub-Account 2009 15,659,935 11.41 - 30.33 195,923,686 0.84 0.89 - 2.35 37.92 - 40.31 2008 16,302,851 8.27 - 21.61 146,716,944 0.06 0.89 - 2.35 (47.39) - (46.49) 2007 18,551,932 15.69 - 40.39 316,048,072 0.35 0.89 - 2.35 (9.25) - (7.67) 2006 21,686,262 17.28 - 43.74 402,048,625 0.11 0.89 - 2.35 9.58 - 11.46 MSF Jennison Growth 2010 20,230,170 2.57 - 12.42 243,817,657 0.38 1.30 - 2.35 8.74 - 10.07 Sub-Account 2009 17,375,446 2.33 - 11.31 190,651,501 -- 1.30 - 2.35 36.32 - 38.02 2008 14,090,231 1.69 - 8.21 112,407,198 2.13 1.30 - 2.35 (38.03) - (37.13) 2007 14,275,390 2.70 - 13.10 182,244,421 0.19 1.30 - 2.35 8.79 - 10.11 2006 15,655,366 2.45 - 11.92 182,151,002 -- 1.30 - 2.35 0.15 - 1.20 MSF BlackRock Money Market 2010 51,015,018 9.77 - 26.15 553,885,805 -- 0.95 - 2.35 (2.32) - (0.64) Sub-Account 2009 54,211,009 9.99 - 26.46 576,532,284 0.25 1.00 - 2.35 (2.07) - (0.48) 2008 55,686,362 10.19 - 26.67 595,304,545 2.42 1.15 - 2.35 0.21 - 1.42 2007 22,951,175 10.16 - 25.09 241,601,183 4.74 1.15 - 2.35 2.37 - 3.61 2006 18,324,659 9.91 - 24.22 187,577,920 4.50 1.30 - 2.35 2.13 - 3.20 MSF T. Rowe Price Small Cap 2010 465,332 16.01 - 21.48 8,285,648 -- 0.89 - 2.30 31.60 - 33.71 Growth Sub-Account 2009 481,022 12.16 - 16.06 6,406,764 0.12 0.89 - 2.30 35.49 - 37.73 2008 332,266 8.98 - 11.66 3,243,702 -- 0.89 - 2.30 (37.08) - (34.32) 2007 77,656 16.25 - 18.44 1,279,290 -- 0.89 - 1.40 8.32 - 8.88 2006 73,595 15.00 - 16.94 1,115,539 -- 0.89 - 1.40 2.46 - 2.98 MSF Western Asset Management 2010 12,558,586 14.90 - 18.69 214,907,918 2.24 0.95 - 2.35 3.04 - 4.50 U. S. Government Sub-Account 2009 8,573,371 14.46 - 17.89 140,925,866 4.06 0.95 - 2.35 1.67 - 3.10 2008 5,356,593 14.23 - 17.35 85,351,962 3.54 0.95 - 2.35 (2.85) - (1.48) 2007 2,760,203 14.93 - 17.61 44,641,935 2.32 0.95 - 2.30 1.76 - 3.04 2006 1,527,142 14.41 - 16.38 24,039,423 1.66 1.30 - 2.35 1.51 - 2.58 MSF Oppenheimer Global Equity 2010 608,969 17.31 - 19.88 11,272,119 1.34 0.95 - 1.95 13.69 - 14.83 Sub-Account 2009 672,213 15.23 - 17.32 10,903,654 2.29 0.95 - 1.95 37.10 - 38.48 2008 671,786 11.17 - 12.50 7,900,093 1.77 0.95 - 1.90 (41.68) - (41.12) 2007 501,067 19.16 - 21.24 9,987,034 0.71 0.95 - 1.90 4.25 - 5.25 2006 195,337 18.38 - 19.12 3,691,502 0.20 1.50 - 1.90 14.17 - 14.62
158 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED) AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) --------- ----------------- ---------- ------------- ---------------- ------------------- MSF MetLife Aggressive 2010 180,144 10.59 - 11.02 1,960,648 1.05 1.55 - 2.25 13.12 - 13.92 Allocation Sub-Account 2009 169,980 9.36 - 9.67 1,636,073 2.18 1.55 - 2.25 28.57 - 29.46 (Commenced 5/1/2006) 2008 159,053 7.35 - 7.47 1,183,183 0.50 1.55 - 2.25 (41.78) - (41.37) 2007 189,794 12.50 - 12.74 2,403,475 0.05 1.55 - 2.25 0.96 - 1.67 2006 101,305 12.39 - 12.57 1,267,689 -- 1.40 - 2.25 11.82 - 12.78 MSF MetLife Conservative 2010 830,223 11.74 - 12.15 9,998,191 4.06 1.55 - 2.15 7.71 - 8.36 Allocation Sub-Account 2009 967,744 10.85 - 11.21 10,771,428 3.20 1.55 - 2.25 17.85 - 18.68 (Commenced 5/1/2006) 2008 602,771 9.24 - 9.44 5,653,460 0.85 1.55 - 2.15 (16.21) - (15.71) 2007 242,633 11.07 - 11.20 2,702,849 -- 1.55 - 2.00 3.47 - 3.94 2006 194,471 10.65 - 10.81 2,088,145 -- 1.40 - 2.25 3.88 - 4.76 MSF MetLife Conservative to 2010 782,775 11.60 - 11.97 9,257,856 3.38 1.55 - 2.10 9.21 - 9.81 Moderate Allocation 2009 836,071 10.62 - 10.90 9,016,185 3.07 1.55 - 2.10 21.11 - 21.78 Sub-Account 2008 664,967 8.77 - 8.95 5,902,351 1.05 1.55 - 2.10 (23.23) - (22.81) (Commenced 5/1/2006) 2007 392,909 11.42 - 11.59 4,529,792 -- 1.55 - 2.10 2.62 - 3.19 2006 273,176 11.10 - 11.26 3,060,196 -- 1.40 - 2.25 6.08 - 6.98 MSF MetLife Moderate 2010 4,192,524 11.28 - 11.74 48,715,861 2.53 1.55 - 2.25 10.65 - 11.44 Allocation Sub-Account 2009 4,293,013 10.20 - 10.54 44,856,785 2.96 1.55 - 2.25 23.72 - 24.58 (Commenced 5/1/2006) 2008 4,259,716 8.24 - 8.46 35,786,827 0.77 1.55 - 2.25 (30.23) - (29.73) 2007 3,351,654 11.81 - 12.04 40,157,114 0.01 1.55 - 2.25 2.01 - 2.73 2006 1,554,946 11.58 - 11.75 18,172,533 -- 1.40 - 2.25 8.31 - 9.23 MSF MetLife Moderate to 2010 5,194,016 10.86 - 11.24 57,766,976 2.14 1.55 - 2.15 12.25 - 12.94 Aggressive Allocation 2009 5,328,120 9.67 - 9.95 52,562,753 2.53 1.55 - 2.15 26.35 - 27.11 Sub-Account 2008 5,745,796 7.65 - 7.83 44,674,622 0.61 1.55 - 2.25 (36.57) - (36.12) (Commenced 5/1/2006) 2007 5,047,763 12.02 - 12.25 61,541,186 0.02 1.55 - 2.25 1.53 - 2.24 2006 1,876,875 11.84 - 12.01 22,426,140 -- 1.40 - 2.25 9.59 - 10.53 MSF T. Rowe Price Large Cap 2010 40,496 31.93 - 34.38 1,365,647 0.07 1.50 - 1.90 14.55 - 15.01 Growth Sub-Account 2009 39,614 27.87 - 29.90 1,161,818 0.32 1.50 - 1.90 40.35 - 40.91 (Commenced 4/28/2008) 2008 27,135 19.86 - 21.22 565,146 -- 1.50 - 1.90 (44.05) - (43.82) MSF Loomis Sayles Small Cap 2010 214,307 30.76 - 36.95 7,224,075 -- 1.20 - 2.30 24.32 - 25.69 Core Sub-Account 2009 73,444 25.33 - 29.40 1,990,671 -- 1.20 - 2.15 27.16 - 28.38 (Commenced 7/14/2008) 2008 926 21.12 - 22.90 20,162 -- 1.20 - 1.75 (25.82) - (25.62) MSF Neuberger Berman Mid Cap 2010 82,451 22.42 - 25.62 1,984,636 0.22 1.20 - 2.30 23.19 - 24.55 Value Sub-Account 2009 11,335 18.92 - 20.57 225,554 0.60 1.20 - 1.95 44.89 - 45.97 (Commenced 7/14/2008) 2008 1,374 13.33 - 14.09 18,573 -- 1.20 - 1.75 (40.64) - (40.49) MSF Met/Dimensional 2010 2,082,274 16.89 - 17.28 35,750,236 1.30 1.30 - 2.35 19.74 - 21.01 International Small Company 2009 1,225,665 14.11 - 14.28 17,436,960 -- 1.30 - 2.35 39.40 - 40.87 Sub-Account 2008 12,651 10.12 - 10.14 128,139 -- 1.30 - 2.05 0.61 - 0.71 (Commenced 11/10/2008) MSF Van Eck Global Natural 2010 3,967,225 18.49 - 18.86 74,371,723 0.25 1.30 - 2.20 26.22 - 27.36 Resources Sub-Account 2009 1,195,095 14.65 - 14.80 17,635,926 -- 1.30 - 2.20 35.00 - 35.82 (Commenced 5/4/2009) Federated Capital Income 2010 2,848 4.87 13,858 0.22 1.40 7.87 Sub-Account (Commenced 3/15/2010)
159 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED) AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 --------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) --------- ----------------- ----------- ------------- ---------------- ------------------- Federated High Income Bond 2010 3,566 8.31 29,620 7.89 1.40 13.13 Sub-Account 2009 3,582 7.34 26,300 8.35 1.40 50.72 2008 10,612 4.87 51,695 10.07 1.40 (27.03) 2007 18,999 6.68 126,835 7.93 1.40 1.98 2006 20,273 6.55 132,703 8.52 1.40 9.27 Federated Kaufman Sub-Account 2010 14,184 5.63 79,874 -- 1.40 13.09 (Commenced 3/15/2010) Neuberger Berman Genesis 2010 571 15.16 8,663 -- 0.89 20.30 Sub-Account 2009 697 12.60 8,785 -- 0.89 25.13 2008 809 10.07 8,146 3.68 0.89 (33.45) 2007 927 15.13 14,022 0.14 0.89 20.72 2006 1,051 12.53 13,167 1.05 0.89 6.31 Alger Small Cap Growth 2010 5,634,931 10.28 - 10.44 58,325,342 -- 1.25 - 1.40 23.54 - 23.73 Sub-Account 2009 6,156,883 8.32 - 8.44 51,552,207 -- 1.25 - 1.40 43.49 - 43.70 2008 6,485,576 5.80 - 5.87 37,826,339 -- 1.25 - 1.40 (47.35) - (47.27) 2007 7,147,895 11.01 - 11.13 79,134,670 -- 1.25 - 1.40 15.60 - 15.78 2006 7,749,990 9.53 - 9.61 74,178,889 -- 1.25 - 1.40 18.35 - 18.53 T. Rowe Price Growth Stock 2010 85,875 83.50 7,170,858 0.06 0.89 15.89 Sub-Account 2009 97,059 72.05 6,993,261 0.21 0.89 41.98 2008 104,973 50.75 5,327,165 0.40 0.89 (42.77) 2007 118,255 88.67 10,486,221 0.60 0.89 9.38 2006 128,359 81.07 10,405,667 0.62 0.89 5.62 T. Rowe Price International Stock 2010 68,117 13.68 932,126 1.13 0.89 13.46 Sub-Account 2009 72,797 12.06 877,970 2.49 0.89 50.86 2008 76,425 7.99 610,995 1.51 0.89 (48.48) 2007 87,971 15.52 1,365,106 1.62 0.89 12.42 2006 96,658 13.80 1,334,230 1.20 0.89 18.21 T. Rowe Price Prime Reserve 2010 70,013 18.06 1,264,618 0.01 0.89 (0.87) Sub-Account 2009 76,856 18.22 1,400,475 0.22 0.89 (0.70) 2008 120,897 18.35 2,218,473 2.47 0.89 1.64 2007 96,955 18.05 1,750,411 4.77 0.89 3.94 2006 87,463 17.37 1,519,155 4.55 0.89 3.64 Janus Aspen Worldwide 2010 901 7.22 6,506 0.61 0.89 14.80 Sub-Account 2009 999 6.29 6,285 1.43 0.89 36.49 2008 1,089 4.61 5,018 1.21 0.89 (45.15) 2007 1,182 8.40 9,932 0.76 0.89 8.65 2006 1,276 7.73 9,873 1.77 0.89 17.16 American Funds Global Small 2010 2,578,008 29.19 - 33.17 80,582,925 1.75 0.89 - 1.90 20.11 - 21.33 Capitalization Sub-Account 2009 2,262,060 24.30 - 27.34 58,608,602 0.31 0.89 - 1.90 58.26 - 59.86 2008 1,683,911 15.35 - 17.10 27,428,704 -- 0.89 - 1.90 (54.33) - (49.46) 2007 985,561 34.16 - 37.13 35,036,450 2.98 0.89 - 1.75 19.31 - 20.35 2006 666,735 29.64 - 30.85 19,777,453 0.46 0.89 - 1.35 22.39 - 22.96 American Funds Growth 2010 3,717,676 123.22 - 180.08 568,813,924 0.77 0.89 - 2.30 15.98 - 17.63 Sub-Account 2009 3,225,880 106.24 - 153.09 419,749,811 0.71 0.89 - 2.30 36.24 - 38.18 2008 2,453,157 77.98 - 110.79 231,101,074 1.04 0.89 - 2.30 (45.25) - (44.47) 2007 1,458,315 142.42 - 199.51 245,762,919 0.98 0.89 - 2.30 9.78 - 11.35 2006 729,519 129.74 - 179.18 111,503,370 1.17 0.89 - 2.30 7.72 - 9.24
160 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED) AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 --------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) --------- ----------------- ----------- ------------- ---------------- ------------------- American Funds Growth--Income 2010 2,639,070 82.11 - 119.99 266,511,951 1.55 0.89 - 2.30 8.90 - 10.44 Sub-Account 2009 2,398,146 75.40 - 108.65 219,689,912 1.74 0.89 - 2.30 28.26 - 30.08 2008 1,942,091 58.79 - 83.53 136,811,504 2.00 0.89 - 2.30 (39.27) - (38.40) 2007 1,369,874 96.80 - 135.60 156,224,069 1.92 0.89 - 2.30 2.64 - 4.11 2006 687,630 94.31 - 130.25 76,344,065 2.27 0.89 - 2.30 12.59 - 14.18 American Funds Global Growth 2010 7,470,107 24.36 - 29.30 202,441,649 1.56 0.95 - 2.30 9.21 - 10.69 Sub-Account 2009 6,579,263 22.30 - 26.47 161,438,857 1.51 0.95 - 2.30 39.07 - 40.96 2008 5,818,048 16.04 - 18.78 101,450,809 2.17 0.95 - 2.30 (39.80) - (38.97) 2007 3,676,314 26.64 - 30.77 104,847,881 3.27 0.95 - 2.30 12.22 - 13.76 2006 1,374,016 23.74 - 25.90 34,540,668 0.78 1.40 - 2.30 17.70 - 18.76 American Funds Bond 2010 5,183,483 15.43 - 17.57 86,203,052 3.44 0.95 - 1.90 4.44 - 5.44 Sub-Account 2009 3,608,245 14.77 - 16.66 57,212,613 3.86 0.95 - 1.90 10.49 - 11.54 (Commenced 6/1/2007) 2008 1,887,421 13.37 - 14.94 27,017,111 9.06 0.95 - 1.90 (11.06) - (10.21) 2007 413,860 15.27 - 16.64 6,639,941 8.01 0.95 - 1.75 0.28 - 2.19 FTVIPT Mutual Shares Securities 2010 5,431,435 19.07 - 21.81 110,507,146 1.62 0.95 - 1.90 9.10 - 10.14 Sub-Account 2009 4,784,657 17.47 - 19.80 88,554,450 2.02 0.95 - 1.90 23.67 - 24.86 2008 3,944,854 14.13 - 15.86 58,571,142 3.27 0.95 - 1.90 (38.30) - (37.71) 2007 3,006,411 22.90 - 25.46 71,392,728 1.37 0.95 - 1.90 1.52 - 2.50 2006 1,273,727 22.56 - 23.49 29,530,718 0.99 1.50 - 1.90 16.16 - 16.62 FTVIPT Templeton Foreign 2010 2,782,005 13.20 - 30.95 79,683,759 1.88 1.55 - 2.30 5.94 - 6.74 Securities Sub-Account 2009 2,655,441 12.40 - 29.04 70,515,555 3.05 1.55 - 2.30 33.93 - 34.94 2008 2,485,260 9.21 - 21.55 48,551,609 2.33 1.55 - 2.30 (41.74) - (41.30) 2007 1,778,828 15.73 - 36.77 56,498,732 1.81 1.55 - 2.30 12.82 - 13.67 2006 946,611 13.88 - 32.88 24,137,809 1.33 1.40 - 2.30 18.69 - 19.76 FTVIPT Templeton Growth 2010 3,450,327 10.62 - 15.34 45,199,211 1.38 0.95 - 1.90 5.38 - 6.37 Securities Sub-Account 2009 3,416,400 10.05 - 14.52 42,694,521 3.11 0.95 - 1.90 28.64 - 29.86 2008 2,828,128 7.79 - 11.26 27,929,783 1.79 0.95 - 1.90 (43.41) - (42.87) 2007 2,063,301 13.72 - 19.85 38,096,365 1.31 0.95 - 1.90 0.41 - 1.37 2006 784,417 18.41 - 19.72 15,182,959 0.76 1.50 - 1.90 19.52 - 20.00 FTVIPT Franklin Income 2010 3,722,732 39.56 - 52.61 176,548,647 6.60 0.95 - 2.25 10.17 - 11.61 Securities Sub-Account 2009 3,157,996 35.91 - 47.14 134,091,525 8.01 0.95 - 2.25 32.58 - 34.31 2008 2,613,572 27.09 - 35.10 82,449,457 5.48 0.95 - 2.25 (31.23) - (30.32) 2007 1,974,360 39.38 - 50.37 88,519,218 3.16 0.95 - 2.25 1.44 - 2.77 2006 664,025 38.83 - 45.21 28,820,820 2.35 1.40 - 2.25 15.62 - 16.60 FTVIPT Templeton Global Bond 2010 4,997,591 16.79 - 18.48 88,294,177 1.36 0.95 - 1.75 12.46 - 13.36 Securities Sub-Account 2009 2,853,081 14.93 - 16.31 44,636,060 14.21 0.95 - 1.75 16.62 - 17.56 (Commenced 6/1/2007) 2008 1,462,599 12.80 - 13.87 19,575,877 3.50 0.95 - 1.75 4.36 - 5.20 2007 318,925 12.27 - 13.18 4,080,871 0.01 0.95 - 1.75 3.66 - 9.78 FTVIPT Franklin Small Cap 2010 3,178,430 9.21 - 9.48 29,718,643 0.73 0.95 - 1.75 26.00 - 27.01 Value Securities Sub-Account 2009 1,787,114 7.31 - 7.46 13,205,263 1.66 0.95 - 1.75 26.91 - 27.94 (Commenced 6/1/2007) 2008 856,253 5.76 - 5.83 4,965,586 1.04 0.95 - 1.75 (34.18) - (33.65) 2007 251,664 8.75 - 8.79 2,208,487 -- 0.95 - 1.75 (14.60) - (3.45) UIF U.S Real Estate Sub-Account 2010 2,327,750 23.50 - 49.52 68,963,648 2.15 0.95 - 1.90 27.52 - 28.73 2009 2,542,094 18.43 - 38.47 56,466,102 3.31 0.95 - 1.90 25.93 - 27.14 2008 2,248,952 14.64 - 30.26 38,153,749 3.39 0.95 - 1.90 (39.07) - (38.49) 2007 2,043,530 24.02 - 49.19 52,908,525 2.27 0.95 - 1.90 (18.64) - (17.86) 2006 928,174 29.52 - 30.20 27,806,209 0.66 1.50 - 1.90 35.46 - 36.00
161 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED) AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) --------- ----------------- ---------- ------------- ---------------- ------------------- Pioneer VCT Bond Sub-Account 2010 196,849 12.11 - 12.40 2,417,734 4.70 1.20 - 1.95 6.84 - 7.64 (Commenced 7/14/2008) 2009 193,471 11.33 - 11.52 2,213,875 5.14 1.20 - 1.95 15.02 - 15.89 2008 8,267 9.87 - 9.94 82,002 1.64 1.20 - 1.75 (3.38) - (3.13) Pioneer VCT Cullen Value 2010 243,744 8.83 - 9.11 2,192,843 0.58 1.20 - 1.95 7.15 - 7.96 Sub-Account 2009 223,412 8.19 - 8.44 1,867,892 0.70 1.20 - 2.15 13.26 - 14.34 (Commenced 7/14/2008) 2008 21,316 7.29 - 7.38 156,566 -- 1.20 - 1.75 (21.91) - (21.71) Pioneer VCT Emerging Markets 2010 62,764 18.70 - 20.26 1,212,537 0.32 1.20 - 1.95 13.38 - 14.23 Sub-Account 2009 60,035 16.18 - 17.74 1,020,914 0.63 1.20 - 2.15 70.32 - 71.96 (Commenced 7/14/2008) 2008 4,387 9.83 - 10.32 43,804 -- 1.20 - 1.75 (50.82) - (50.69) Pioneer VCT Equity Income 2010 18,868 19.24 - 20.95 375,754 2.07 1.20 - 1.95 16.93 - 17.81 Sub-Account 2009 20,833 16.12 - 17.79 354,460 3.38 1.20 - 2.15 11.47 - 12.53 (Commenced 7/14/2008) 2008 2,134 15.01 - 15.22 32,445 0.69 1.60 - 1.75 (22.10) - (22.05) Pioneer VCT Fund Sub-Account 2010 26,813 9.18 - 9.95 261,705 1.12 1.20 - 1.95 13.50 - 14.34 (Commenced 7/14/2008) 2009 26,714 8.09 - 8.70 228,777 1.60 1.20 - 1.95 22.50 - 23.42 2008 5,631 6.72 - 7.05 39,673 0.69 1.20 - 1.75 (24.80) - (24.61) Pioneer VCT Ibbotson Growth 2010 1,275,136 14.95 - 15.62 19,386,421 1.88 1.20 - 1.95 12.55 - 13.39 Allocation Sub-Account 2009 1,257,274 13.28 - 13.78 16,934,322 2.87 1.20 - 1.95 30.11 - 31.09 (Commenced 7/14/2008) 2008 346,884 10.21 - 10.51 3,587,235 -- 1.20 - 1.95 (27.48) - (27.22) Pioneer VCT Ibbotson Moderate 2010 1,833,743 14.43 - 15.31 27,517,066 2.53 1.20 - 2.20 11.44 - 12.56 Allocation Sub-Account 2009 1,818,031 12.95 - 13.60 24,317,338 3.10 1.20 - 2.20 28.59 - 29.89 (Commenced 7/14/2008) 2008 109,195 10.23 - 10.47 1,127,161 -- 1.20 - 1.80 (24.71) - (24.50) Pioneer VCT Mid Cap Value 2010 1,493,349 28.81 - 33.76 46,621,818 0.87 0.95 - 1.95 15.62 - 16.78 Sub-Account 2009 1,309,529 24.92 - 28.91 35,037,503 1.29 0.95 - 1.95 22.85 - 24.08 2008 1,105,223 20.42 - 23.30 23,891,796 0.87 0.95 - 1.90 (35.01) - (34.39) 2007 813,072 31.43 - 35.50 26,728,784 0.54 0.95 - 1.90 3.35 - 4.34 2006 262,287 30.41 - 31.88 8,219,057 -- 1.50 - 1.90 10.16 - 10.60 Pioneer VCT Real Estate Shares 2010 12,983 17.38 - 18.80 234,208 2.42 1.20 - 1.95 26.06 - 27.01 Sub-Account 2009 16,034 13.78 - 14.80 228,918 4.81 1.20 - 1.95 29.02 - 29.98 (Commenced 7/14/2008) 2008 3,001 10.87 - 11.38 33,133 1.71 1.20 - 1.75 (32.64) - (32.47) LMPVET ClearBridge Variable 2010 2,149,625 13.62 - 18.28 33,662,804 -- 0.95 - 2.30 22.34 - 24.00 Small Cap Growth Sub-Account 2009 1,757,714 11.13 - 14.74 21,966,842 -- 0.95 - 2.30 39.53 - 41.42 2008 1,214,861 7.98 - 10.42 10,577,679 -- 0.95 - 2.30 (42.06) - (41.27) 2007 754,675 13.77 - 17.53 10,904,358 -- 1.10 - 2.30 7.50 - 8.80 2006 325,638 12.81 - 13.36 4,282,564 0.46 1.40 - 2.30 10.21 - 11.20 LMPVET ClearBridge Variable 2010 194,899 13.09 - 14.51 2,729,796 3.02 1.50 - 2.30 6.98 - 7.83 Large Cap Value Sub-Account 2009 196,692 12.23 - 13.45 2,559,454 1.95 1.50 - 2.30 21.66 - 22.65 2008 188,889 10.05 - 10.97 2,012,063 1.09 1.50 - 2.30 (37.09) - (36.59) 2007 279,645 15.98 - 17.30 4,699,165 1.52 1.50 - 2.30 1.53 - 2.35 2006 130,370 15.74 - 17.05 2,127,448 2.98 1.40 - 2.30 15.58 - 16.62 LMPVET ClearBridge Variable 2010 3,100,875 27.97 - 35.07 99,528,233 1.79 0.95 - 2.30 13.96 - 15.50 Fundamental All Cap Value 2009 2,989,079 24.54 - 30.36 83,258,408 1.44 0.95 - 2.30 26.41 - 28.14 Sub-Account 2008 2,724,852 19.41 - 23.70 59,326,416 1.83 0.95 - 2.30 (38.03) - (37.18) 2007 2,440,021 31.33 - 37.72 84,463,307 1.55 0.95 - 2.30 (1.05) - (0.31) 2006 1,257,495 31.66 - 35.61 43,419,332 3.96 1.40 - 2.30 14.15 - 15.18
162 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 8. FINANCIAL HIGHLIGHTS -- (CONTINUED) AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ---------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) ---------- ----------------- ----------- ------------- ---------------- ------------------- LMPVET ClearBridge Variable 2010 5,515,253 26.87 - 34.42 173,626,503 1.83 0.95 - 2.30 10.07 - 11.56 Appreciation Sub-Account 2009 4,134,838 24.41 - 30.85 116,657,409 2.45 0.95 - 2.30 19.34 - 20.96 2008 3,070,482 11.00 - 25.50 70,122,225 1.44 0.95 - 2.30 (31.05) - (29.98) 2007 2,591,844 15.95 - 36.42 83,497,462 1.37 0.95 - 2.30 1.22 - 7.39 2006 1,236,956 27.95 - 32.05 38,211,834 2.66 1.40 - 2.30 12.19 - 13.21 LMPVET ClearBridge Variable 2010 11,742,971 8.92 - 14.87 156,471,918 0.15 0.95 - 2.30 22.17 - 23.83 Aggressive Growth 2009 11,503,827 7.29 - 12.01 123,705,924 -- 0.95 - 2.30 31.51 - 33.30 Sub-Account 2008 10,751,677 7.58 - 9.01 86,704,540 -- 0.95 - 2.30 (41.77) - (40.97) 2007 9,406,900 13.02 - 15.26 127,959,661 -- 0.95 - 2.30 (0.82) - 0.54 2006 5,468,811 13.12 - 13.68 73,942,504 -- 1.40 - 2.30 6.32 - 7.28 LMPVET ClearBridge Variable 2010 459,350 12.35 - 13.67 6,065,533 0.11 1.50 - 2.30 7.34 - 8.19 Large Cap Growth 2009 557,417 11.50 - 12.63 6,818,703 0.27 1.50 - 2.30 39.14 - 40.27 Sub-Account 2008 629,993 8.27 - 9.01 5,503,740 0.26 1.50 - 2.30 (38.72) - (38.23) 2007 699,543 13.49 - 14.58 9,921,012 0.05 1.50 - 2.30 2.90 - 3.73 2006 433,171 13.11 - 14.18 5,945,005 0.30 1.40 - 2.30 2.22 - 3.15 LMPVET Investment Counsel 2010 17,424 27.81 - 29.97 510,680 1.24 1.50 - 1.90 10.04 - 10.48 Variable Social Awareness 2009 19,412 25.28 - 27.12 515,712 1.43 1.50 - 1.90 20.53 - 21.01 Sub-Account 2008 25,775 20.97 - 22.41 567,901 2.05 1.50 - 1.90 (26.61) - (26.32) 2007 19,022 28.57 - 30.42 565,965 1.84 1.50 - 1.90 8.80 - 9.24 2006 10,361 26.26 - 27.85 281,509 1.25 1.50 - 1.90 5.67 - 6.09 LMPVET ClearBridge Variable 2010 6,778,039 10.29 - 13.39 81,006,913 4.09 0.95 - 1.90 10.01 - 11.06 Equity Income Builder 2009 6,144,958 9.34 - 12.06 64,946,351 3.37 0.95 - 1.90 20.32 - 21.47 Sub-Account 2008 5,136,303 7.74 - 9.92 43,322,014 1.13 0.95 - 1.90 (36.25) - (35.58) 2007 4,737,273 12.15 - 15.28 59,957,587 1.99 1.10 - 1.90 0.27 - 5.14 2006 154,474 14.18 - 14.70 2,252,417 2.55 1.40 - 2.25 9.67 - 10.61 LMPVET ClearBridge Variable 2010 369,866 13.75 - 14.69 5,296,139 0.80 1.50 - 2.30 10.10 - 10.99 Capital Sub-Account 2009 422,476 12.49 - 13.23 5,469,899 0.64 1.50 - 2.30 37.07 - 38.16 2008 459,735 9.11 - 9.58 4,320,213 0.05 1.50 - 2.30 (43.46) - (43.00) 2007 542,230 16.11 - 16.80 8,963,789 0.52 1.50 - 2.30 (0.48) - 0.32 2006 284,789 16.19 - 16.82 4,710,142 0.93 1.40 - 2.30 11.04 - 12.04 LMPVET ClearBridge Variable 2010 641,516 8.57 - 9.38 5,852,267 2.89 1.50 - 2.30 9.36 - 10.23 Dividend Strategy Sub-Account 2009 709,577 7.83 - 8.51 5,884,519 2.01 1.50 - 2.30 19.30 - 20.26 2008 798,585 6.57 - 7.07 5,522,751 2.77 1.50 - 2.30 (30.21) - (29.65) 2007 834,706 9.41 - 10.05 8,243,529 2.90 1.50 - 2.30 4.02 - 4.86 2006 321,925 9.04 - 9.59 3,032,256 5.84 1.50 - 2.30 15.26 - 16.18 LMPVET Variable Lifestyle 2010 769,522 16.05 - 17.94 13,086,823 4.10 1.10 - 1.90 6.21 - 12.65 Allocation 50% Sub-Account 2009 487,451 14.30 - 15.06 7,231,568 5.06 1.50 - 1.90 29.83 - 30.35 2008 567,873 11.02 - 11.55 6,471,351 3.50 1.50 - 1.90 (28.71) - (28.42) 2007 590,437 15.45 - 16.14 9,409,255 5.14 1.50 - 1.90 1.26 - 1.67 2006 177,614 13.97 - 15.88 2,794,996 5.99 1.50 - 1.90 6.19 - 6.61 LMPVET Variable Lifestyle 2010 236,121 13.81 - 14.60 3,395,287 2.04 1.50 - 1.90 12.84 - 13.30 Allocation 70% Sub-Account 2009 271,548 12.24 - 12.89 3,447,350 3.60 1.50 - 1.90 30.41 - 30.93 2008 280,357 9.39 - 9.84 2,719,047 2.51 1.50 - 1.90 (34.04) - (33.77) 2007 250,067 14.23 - 14.86 3,668,950 4.65 1.50 - 1.90 1.87 - 2.28 2006 23,381 13.97 - 14.53 336,900 3.81 1.50 - 1.90 6.81 - 7.24
163 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONCLUDED) 8. FINANCIAL HIGHLIGHTS -- (CONCLUDED) AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------- -------------------------------------------------- UNIT VALUE INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) LOWEST TO NET INCOME LOWEST TO LOWEST TO UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%) --------- ----------------- ---------- ------------- ---------------- ------------------- LMPVET VariableLifestyle 2010 4,289,092 13.41 - 15.30 62,035,149 1.73 0.95 - 1.90 13.52 - 14.60 Allocation 85% Sub-Account 2009 3,756,486 11.81 - 13.35 47,576,561 2.64 0.95 - 1.90 29.99 - 31.22 2008 2,668,230 9.09 - 10.18 25,875,933 2.50 0.95 - 1.90 (38.60) - (38.01) 2007 1,057,927 14.80 - 16.41 16,581,727 5.12 0.95 - 1.90 1.41 - 2.38 2006 21,392 14.59 - 15.18 320,998 1.97 1.50 - 1.90 7.41 - 7.84 LMPVIT Western Asset Variable 2010 218,369 9.50 - 9.93 2,149,943 1.09 1.50 - 2.10 6.93 - 7.56 Adjustable Rate Income 2009 231,438 8.89 - 9.23 2,121,940 1.94 1.50 - 2.10 14.97 - 15.66 Sub-Account 2008 225,349 7.73 - 7.98 1,788,239 4.30 1.50 - 2.10 (22.82) - (22.35) 2007 310,564 10.02 - 10.28 3,178,900 5.20 1.50 - 2.10 (0.76) - (0.16) 2006 216,326 10.04 - 10.33 2,220,514 11.96 1.40 - 2.25 1.79 - 2.66 LMPVIT Western Asset Variable 2010 3,170,899 17.44 - 20.70 61,092,507 9.47 0.95 - 2.30 12.31 - 13.83 Global High Yield Bond 2009 2,845,850 15.53 - 18.18 48,249,580 11.34 0.95 - 2.30 52.02 - 54.08 Sub-Account 2008 2,664,258 10.21 - 11.80 29,373,023 11.01 0.95 - 2.30 (32.40) - (31.48) 2007 2,527,054 15.11 - 16.97 40,738,484 9.95 1.10 - 2.30 (2.35) - (1.17) 2006 1,039,676 15.48 - 16.73 16,994,644 15.93 1.40 - 2.30 8.13 - 9.11
(1) 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 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. (2) These amounts represent annualized contract expenses of each of the applicable Sub-Accounts, 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. (3) 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. The total return is presented as a range of minimum to maximum returns, based on minimum and maximum returns within each product grouping of the applicable Sub-Account. 164 METLIFE INVESTORS USA INSURANCE COMPANY Consolidated Financial Statements As of December 31, 2010 and 2009 and for the Years Ended December 31, 2010, 2009 and 2008 and Report of Independent Registered Public Accounting Firm 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 consolidated balance sheets of MetLife Investors USA Insurance Company and its subsidiary (the "Company") as of December 31, 2010 and 2009, and the related consolidated statements of operations, stockholder's equity, and cash flows for each of the three years in the period ended December 31, 2010. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated 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 consolidated financial statements present fairly, in all material respects, the financial position of MetLife Investors USA Insurance Company and its subsidiary as of December 31, 2010 and 2009, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2010, in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 1, the Company changed its method of accounting for the recognition and presentation of other-than-temporary impairment losses for certain investments as required by accounting guidance adopted on April 1, 2009 and changed its method of accounting for certain assets and liabilities to a fair value measurement approach as required by accounting guidance adopted on January 1, 2008. /s/ DELOITTE & TOUCHE LLP Certified Public Accountants Tampa, Florida April 19, 2011 1 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2010 AND 2009 (IN MILLIONS, EXCEPT SHARE AND PER SHARE DATA)
2010 2009 ------- ------- ASSETS Investments: Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $8,350 and $7,842, respectively)............................................................................. $ 8,676 $ 7,805 Equity securities available-for-sale, at estimated fair value (cost: $3 and $4, respectively)...... 3 3 Mortgage loans (net of valuation allowances of $12 and $3, respectively)........................... 1,175 605 Policy loans....................................................................................... 64 50 Real estate joint ventures......................................................................... 30 29 Other limited partnership interests................................................................ 456 282 Short-term investments, principally at estimated fair value........................................ 113 835 Other invested assets, principally at estimated fair value......................................... 215 37 ------- ------- Total investments................................................................................ 10,732 9,646 Cash and cash equivalents............................................................................ 240 412 Accrued investment income............................................................................ 105 84 Premiums, reinsurance and other receivables.......................................................... 9,778 6,972 Deferred policy acquisition costs.................................................................... 2,965 2,554 Current income tax recoverable....................................................................... 25 -- Other assets......................................................................................... 728 680 Separate account assets.............................................................................. 42,435 29,958 ------- ------- Total assets..................................................................................... $67,008 $50,306 ======= ======= LIABILITIES AND STOCKHOLDER'S EQUITY LIABILITIES Future policy benefits............................................................................... $ 2,092 $ 1,444 Policyholder account balances........................................................................ 11,197 10,377 Other policy-related balances........................................................................ 2,120 1,817 Payables for collateral under securities loaned and other transactions............................... 1,246 1,607 Long-term debt....................................................................................... 45 -- Current income tax payable........................................................................... -- 17 Deferred income tax liability........................................................................ 580 400 Other liabilities.................................................................................... 3,601 1,428 Separate account liabilities......................................................................... 42,435 29,958 ------- ------- Total liabilities................................................................................ 63,316 47,048 ------- ------- CONTINGENCIES, COMMITMENTS AND GUARANTEES (NOTE 10) STOCKHOLDER'S EQUITY Preferred stock, par value $1.00 per share; 200,000 shares authorized, issued and outstanding........ -- -- Common stock, par value $200.00 per share; 15,000 shares authorized; 11,000 shares issued and outstanding......................................................................................... 2 2 Additional paid-in capital........................................................................... 2,520 2,520 Retained earnings.................................................................................... 1,063 771 Accumulated other comprehensive income (loss)........................................................ 107 (35) ------- ------- Total stockholder's equity....................................................................... 3,692 3,258 ------- ------- Total liabilities and stockholder's equity....................................................... $67,008 $50,306 ======= =======
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. 2 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008 (IN MILLIONS)
2010 2009 2008 ------ ------ ------ REVENUES Premiums............................................................................ $ 357 $ 393 $ 144 Universal life and investment-type product policy fees.............................. 991 745 634 Net investment income............................................................... 520 349 253 Other revenues...................................................................... 302 237 127 Net investment gains (losses): Other-than-temporary impairments on fixed maturity securities...................... (9) (18) (16) Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss)...................................................... 5 5 -- Other net investment gains (losses)................................................ 19 (11) (20) ------ ------ ------ Total net investment gains (losses).............................................. 15 (24) (36) Net derivative gains (losses)....................................................... 115 (603) 819 ------ ------ ------ Total revenues................................................................... 2,300 1,097 1,941 ------ ------ ------ EXPENSES Policyholder benefits and claims.................................................... 486 457 384 Interest credited to policyholder account balances.................................. 413 409 249 Other expenses...................................................................... 1,024 613 812 ------ ------ ------ Total expenses................................................................... 1,923 1,479 1,445 ------ ------ ------ Income (loss) before provision for income tax....................................... 377 (382) 496 Provision for income tax expense (benefit).......................................... 85 (185) 149 ------ ------ ------ Net income (loss)................................................................... $ 292 $ (197) $ 347 ====== ====== ======
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. 3 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008 (IN MILLIONS)
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) -------------------------- NET UNREALIZED ADDITIONAL INVESTMENT OTHER-THAN- TOTAL PREFERRED COMMON PAID-IN RETAINED GAINS TEMPORARY STOCKHOLDER'S STOCK STOCK CAPITAL EARNINGS (LOSSES) IMPAIRMENTS EQUITY --------- ------ ---------- -------- ---------- ----------- ------------- Balance at January 1, 2008..................... $ -- $2 $ 960 $ 621 $ (8) $ -- $1,575 Capital contribution from MetLife Insurance Company of Connecticut........................ 985 985 Comprehensive income (loss): Net income................................... 347 347 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.......... (267) (267) ------ Other comprehensive income (loss)........... (266) ------ Comprehensive income (loss).................. 81 ---- -- ------ ------ ----- ---- ------ Balance at December 31, 2008................... -- 2 1,945 968 (274) -- 2,641 Capital contribution from MetLife Insurance Company of Connecticut........................ 575 575 Comprehensive income (loss): Net loss..................................... (197) (197) 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.......... 240 (2) 238 ------ Other comprehensive income (loss)........... 239 ------ Comprehensive income (loss).................. 42 ---- -- ------ ------ ----- ---- ------ Balance at December 31, 2009................... -- 2 2,520 771 (33) (2) 3,258 Comprehensive income (loss): Net income................................... 292 292 Other comprehensive income (loss): Unrealized gains (losses) on derivative instruments, net of income tax............. (47) (47) Unrealized investment gains (losses), net of related offsets and income tax.......... 190 (1) 189 ------ Other comprehensive income (loss)........... 142 ------ Comprehensive income (loss).................. 434 ---- -- ------ ------ ----- ---- ------ Balance at December 31, 2010................... $ -- $2 $2,520 $1,063 $ 110 $ (3) $3,692 ==== == ====== ====== ===== ==== ======
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. 4 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008 (IN MILLIONS)
2010 2009 2008 ------- ------- ------- CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss).................................................................................... $ 292 $ (197) $ 347 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization expenses.............................................................. 23 15 13 Amortization of premiums and accretion of discounts associated with investments, net................ (28) (25) (10) (Gains) losses on investments and derivatives, net.................................................. (233) 627 (783) Undistributed equity earnings of real estate joint ventures and other limited partnership interests. (49) 3 23 Interest credited to policyholder account balances.................................................. 413 409 249 Universal life and investment-type product policy fees.............................................. (991) (745) (634) Change in accrued investment income................................................................. (21) (30) -- Change in premiums, reinsurance and other receivables............................................... (2,560) (1,694) (2,050) Change in deferred policy acquisition costs, net.................................................... (457) (531) (208) Change in income tax recoverable (payable).......................................................... 61 (42) 161 Change in other assets.............................................................................. 711 275 250 Change in insurance-related liabilities and policy-related balances................................. 971 753 805 Change in other liabilities......................................................................... 2,079 (109) 1,140 Other, net.......................................................................................... (7) -- 1 ------- ------- ------- Net cash provided by (used in) operating activities.................................................. 204 (1,291) (696) ------- ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES Sales, maturities and repayments of: Fixed maturity securities........................................................................... 4,488 2,948 1,899 Equity securities................................................................................... 1 7 3 Mortgage loans...................................................................................... 21 31 72 Real estate joint ventures.......................................................................... -- -- 1 Other limited partnership interests................................................................. 46 46 20 Purchases of: Fixed maturity securities........................................................................... (4,983) (6,059) (2,313) Equity securities................................................................................... -- (2) -- Mortgage loans...................................................................................... (600) (259) (49) Real estate joint ventures.......................................................................... (4) (5) (16) Other limited partnership interests................................................................. (161) (75) (118) Cash received in connection with freestanding derivatives............................................ 2 5 1 Cash paid in connection with freestanding derivatives................................................ (48) (9) (23) Net change in policy loans........................................................................... (14) (9) (2) Net change in short-term investments................................................................. 732 837 (1,198) Net change in other invested assets.................................................................. (80) (80) (50) ------- ------- ------- Net cash used in investing activities................................................................ (600) (2,624) (1,773) ------- ------- ------- CASH FLOWS FROM FINANCING ACTIVITIES Policyholder account balances: Deposits............................................................................................ 3,219 4,851 3,683 Withdrawals......................................................................................... (2,634) (2,343) (1,290) Net change in payables for collateral under securities loaned and other transactions................. (361) 719 (40) Long-term debt repaid -- affiliated.................................................................. -- -- (435) Capital contribution from MetLife Insurance Company of Connecticut................................... -- 575 985 ------- ------- ------- Net cash provided by financing activities............................................................ 224 3,802 2,903 ------- ------- ------- Change in cash and cash equivalents.................................................................. (172) (113) 434 Cash and cash equivalents, beginning of year......................................................... 412 525 91 ------- ------- ------- CASH AND CASH EQUIVALENTS, END OF YEAR............................................................... $ 240 $ 412 $ 525 ======= ======= ======= SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Net cash paid (received) during the year for: Interest............................................................................................ $ -- $ -- $ 20 ======= ======= ======= Income tax.......................................................................................... $ 20 $ (142) $ (12) ======= ======= ======= Non-cash transactions during the year: Long-term debt issued in exchange for certain other invested assets................................. $ 45 $ -- $ -- ======= ======= =======
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. 5 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BUSINESS MetLife Investors USA Insurance Company ("MLI-USA") and its subsidiary and affiliate, (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"). The Company markets, administers and insures a broad range of term life and universal and variable life insurance policies and variable and fixed annuity contracts. BASIS OF PRESENTATION The accompanying consolidated financial statements include the accounts of MetLife Investors USA Insurance Company and its subsidiary, as well as a partnership in which the Company has control. Intercompany accounts and transactions have been eliminated. Certain amounts in the prior years' consolidated financial statements have been reclassified to conform with the 2010 presentation. Such reclassifications include: . Reclassification from other net investment gains (losses) of ($603) million and $819 million to net derivative gains (losses) in the consolidated statements of operations for the years ended December 31, 2009 and 2008, respectively; and . Reclassification from net change in other invested assets of $5 million and $1 million to cash received in connection with freestanding derivatives and ($9) million and ($23) million to cash paid in connection with freestanding derivatives, all within cash flows from investing activities, in the consolidated statements of cash flows for the years ended December 31, 2009 and 2008, respectively. 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. 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 consolidated financial statements. A description of critical estimates is incorporated within the discussion of the related accounting policies which follows. 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. Fair Value As described below, certain assets and liabilities are measured at estimated fair value on the Company's consolidated balance sheets. In addition, the notes to these consolidated financial statements include further disclosures of estimated fair values. The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. In many cases, the exit 6 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) price and the transaction (or entry) price will be the same at initial recognition. However, in certain cases, the transaction price may not represent fair value. The fair value of a liability is based on the amount that would be paid to transfer a liability to a third-party with the same credit standing. It requires that fair value be a market-based measurement in which the fair value is determined based on a hypothetical transaction at the measurement date, considered from the perspective of a market participant. When quoted prices are not used to determine fair value of an asset, the Company considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Company determines the most appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs. The Company prioritizes the inputs to fair valuation techniques and allows for the use of unobservable inputs to the extent that observable inputs are not available. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the priority of the inputs to the respective valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). An asset or liability's classification within the fair value hierarchy is based on the lowest level of input to its valuation. The input levels are as follows: Level 1Unadjusted quoted prices in active markets for identical assets or liabilities. The Company defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Level 2Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1; quoted prices in markets that are not active; or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3Unobservable inputs that are supported by little or no market activity and are significant to the estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of estimated fair value requires significant management judgment or estimation. Prior to January 1, 2009, the measurement and disclosures of fair value based on exit price excluded certain items such as nonfinancial assets and nonfinancial liabilities initially measured at estimated fair value on a nonrecurring basis. Investments The accounting policies for the Company's principal 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 (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. 7 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 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 in net investment income. Included within fixed maturity securities are loan-backed securities including mortgage-backed and asset-backed securities ("ABS"). 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 ABS are estimated by management using inputs obtained from third-party specialists, including broker-dealers, and based on management's knowledge of the current market. For credit-sensitive mortgage-backed and ABS and certain prepayment-sensitive securities, the effective yield is recalculated on a prospective basis. For all other mortgage-backed and ABS, the effective yield is recalculated on a retrospective basis. The Company periodically evaluates fixed maturity and equity securities for impairment. The assessment of whether impairments have occurred is based on management's case-by-case evaluation of the underlying reasons for the decline in estimated 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 severity and/or age of the gross unrealized loss, as summarized in Note 2 "-- Aging of Gross Unrealized Loss and OTTI Loss for Fixed Maturity and Equity Securities Available-for-Sale." An extended and severe unrealized loss position on a fixed maturity security may not have any impact on the ability of the issuer to service all scheduled interest and principal payments and the Company's evaluation of recoverability of all contractual cash flows or the ability to recover an amount at least equal to its amortized cost based on the present value of the expected future cash flows to be collected. In contrast, for certain equity securities, greater weight and consideration are given by the Company to a decline in market value and the likelihood such market value decline will recover. 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 estimated fair 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) with respect to fixed maturity securities, whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below cost or amortized cost recovers; (vii) with respect to equity securities, whether the Company's ability and intent to hold the security for a period of time sufficient to allow for the recovery of its estimated fair value to an amount equal to or greater than cost; (viii) unfavorable changes in forecasted cash flows on mortgage-backed and ABS; and (ix) other subjective factors, including concentrations and information obtained from regulators and rating agencies. Effective April 1, 2009, the Company prospectively adopted guidance on the recognition and presentation of other-than-temporary impairment ("OTTI") losses as described in "-- Adoption of New Accounting Pronouncements -- Financial Instruments." The guidance requires that an OTTI be recognized in earnings for a fixed maturity security in an unrealized loss position when it is anticipated that the 8 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) amortized cost will not be recovered. In such situations, the OTTI recognized in earnings is the entire difference between the fixed maturity security's amortized cost and its estimated fair value only when either: (i) the Company has the intent to sell the fixed maturity security; or (ii) it is more likely than not that the Company will be required to sell the fixed maturity security before recovery of the decline in estimated fair value below amortized cost. If neither of these two conditions exist, the difference between the amortized cost of the fixed maturity security and the present value of projected future cash flows expected to be collected is recognized as an OTTI in earnings ("credit loss"). If the estimated fair value is less than the present value of projected future cash flows expected to be collected, this portion of OTTI related to other-than credit factors ("noncredit loss") is recorded in other comprehensive income (loss). There was no change for equity securities which, when an OTTI has occurred, continue to be impaired for the entire difference between the equity security's cost and its estimated fair value with a corresponding charge to earnings. The Company does not make any adjustments for subsequent recoveries in value. Prior to the adoption of the OTTI guidance, the Company recognized in earnings an OTTI for a fixed maturity security in an unrealized loss position unless it could assert that it had both the intent and ability to hold the fixed maturity security for a period of time sufficient to allow for a recovery of estimated fair value to the security's amortized cost. Also, prior to the adoption of this guidance, the entire difference between the fixed maturity security's amortized cost basis and its estimated fair value was recognized in earnings if it was determined to have an OTTI. With respect to equity securities, the Company considers in its OTTI analysis its intent and ability to hold a particular equity security for a period of time sufficient to allow for the recovery of its estimated fair value to an amount equal to or greater than cost. If a sale decision is made for an equity security and it is not expected to recover to an amount at least equal to cost prior to the expected time of the sale, the security will be deemed other-than-temporarily impaired in the period that the sale decision was made and an OTTI loss will be recorded in earnings. When an OTTI loss has occurred, the OTTI loss is the entire difference between the equity security's cost and its estimated fair value with a corresponding charge to earnings. With respect to perpetual hybrid securities that have attributes of both debt and equity, some of which are classified as fixed maturity securities and some of which are classified as non-redeemable preferred stock within equity securities, the Company considers in its OTTI analysis whether there has been any deterioration in credit of the issuer and the likelihood of recovery in value of the securities that are in a severe and extended unrealized loss position. The Company also considers whether any perpetual hybrid securities, with an unrealized loss, regardless of credit rating, have deferred any dividend payments. When an OTTI loss has occurred, the OTTI loss is the entire difference between the perpetual hybrid security's cost and its estimated fair value with a corresponding charge to earnings. The Company's methodology and significant inputs used to determine the amount of the credit loss on fixed maturity securities under the OTTI guidance are as follows: (i)The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows expected to be received. The discount rate is generally the effective interest rate of the fixed maturity security prior to impairment. (ii)When determining the collectability and the period over which value is expected to recover, the Company applies the same considerations utilized in its overall impairment evaluation process which incorporates information regarding the specific security, fundamentals of the industry and geographic area in which the security issuer operates, and overall macroeconomic conditions. Projected future cash flows are estimated using assumptions derived from management's best estimates of likely scenario-based outcomes after giving consideration to a variety of variables that include, but are not limited to: 9 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) general payment terms of the security; the likelihood that the issuer can service the scheduled interest and principal payments; the quality and amount of any credit enhancements; the security's position within the capital structure of the issuer; possible corporate restructurings or asset sales by the issuer; and changes to the rating of the security or the issuer by rating agencies. (iii)Additional considerations are made when assessing the unique features that apply to certain structured securities such as residential mortgage-backed securities ("RMBS"), commercial mortgage-backed securities ("CMBS") and ABS. These additional factors for structured securities include, but are not limited to: the quality of underlying collateral; expected prepayment speeds; current and forecasted loss severity; consideration of the payment terms of the underlying assets backing a particular security; and the payment priority within the tranche structure of the security. (iv)When determining the amount of the credit loss for United States ("U.S.") and foreign corporate securities, foreign government securities and state and political subdivision securities, management considers the estimated fair value as the recovery value when available information does not indicate that another value is more appropriate. When information is identified that indicates a recovery value other than estimated fair value, management considers in the determination of recovery value the same considerations utilized in its overall impairment evaluation process which incorporates available information and management's best estimate of scenarios-based outcomes regarding the specific security and issuer; possible corporate restructurings or asset sales by the issuer; the quality and amount of any credit enhancements; the security's position within the capital structure of the issuer; fundamentals of the industry and geographic area in which the security issuer operates, and the overall macroeconomic conditions. The cost or amortized cost of fixed maturity and equity securities is adjusted for OTTI in the period in which the determination is made. These impairments are included within net investment gains (losses). The Company does not change the revised cost basis for subsequent recoveries in value. In periods subsequent to the recognition of OTTI on a fixed maturity security, the Company accounts for the impaired security as if it had been purchased on the measurement date of the impairment. Accordingly, the discount (or reduced premium) based on the new cost basis is accreted into net investment income over the remaining term of the fixed maturity security in a prospective manner based on the amount and timing of estimated future cash flows. The Company has invested in certain structured transactions that are variable interest entities ("VIEs"). These structured transactions include asset-backed securitizations, hybrid securities and other limited partnership interests and limited liability companies. The Company consolidates those VIEs for which it is deemed to be the primary beneficiary. The Company reconsiders whether it is the primary beneficiary for investments designated as VIEs on an annual basis. Securities Lending. Securities loaned transactions, whereby blocks of securities, which are included in fixed maturity securities and short-term investments, are loaned to third parties, are treated as financing arrangements and the associated liability is recorded at the amount of cash received. At the inception of a loan, the Company obtains collateral, generally cash, in an amount at least equal to 102% of the estimated fair value of the securities loaned and maintains it at a level greater than or equal to 100% for the duration of the loan. The Company monitors the estimated fair 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 brokerage firms and commercial banks. Income and expenses associated with securities loaned transactions are reported as investment income and investment expense, respectively, within net investment income. Mortgage Loans. For the purposes of determining valuation allowances the Company disaggregates its mortgage loan investments into two portfolio segments: (1) commercial and (2) agricultural. 10 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and 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. Interest ceases to accrue when collection of interest is not considered probable and/or when interest or principal payments are past due as follows: commercial -- 60 days; and agricultural -- 90 days. When a loan is placed on non-accrual status, uncollected past due interest is charged-off against net investment income. Generally, the accrual of interest income resumes after all delinquent amounts are paid and management believes all future principal and interest payments will be collected. Cash receipts on non-accruing loans are recorded in accordance with the loan agreement as a reduction of principal and/or interest income. Charge-offs occur upon the realization of a credit loss, typically through foreclosure or after a decision is made to sell a loan. Gain or loss upon charge-off is recorded, net of previously established valuation allowances, in net investment gains (losses). Cash recoveries on principal amounts previously charged-off are generally recorded as an increase to the valuation allowance, unless the valuation allowance adequately provides for expected credit losses; then the recovery is recorded in net investment gains (losses). Gains and losses from sales of loans and increases or decreases to valuation allowances are recorded in net investment gains (losses). Mortgage 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. Specific valuation allowances are established using the same methodology for both portfolio segments as the excess carrying value of a loan over either (i) the present value of expected future cash flows discounted at the loan's original effective interest rate, (ii) the estimated fair value of the loan's underlying collateral if the loan is in the process of foreclosure or otherwise collateral dependent, or (iii) the loan's observable market price. A common evaluation framework is used for establishing non-specific valuation allowances for all loan portfolio segments; however, a separate non-specific valuation allowance is calculated and maintained for each loan portfolio segment that is based on inputs unique to each loan portfolio segment. Non-specific valuation allowances are established for pools of loans with similar risk characteristics where a property-specific or market-specific risk has not been identified, but for which the Company expects to incur a credit loss. These evaluations are based upon several loan portfolio segment-specific factors, including the Company's experience for loan losses, defaults and loss severity, and loss expectations for loans with similar risk characteristics. The Company typically uses ten years, or more, of historical experience, in these evaluations. These evaluations are revised as conditions change and new information becomes available. All commercial and agricultural loans are monitored on an ongoing basis for potential credit losses. For commercial loans, these ongoing reviews may include an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, loan-to-value ratios, debt service coverage ratios, and tenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, potentially delinquent, delinquent or in foreclosure, as well as loans with higher loan-to-value ratios and lower debt service coverage ratios. The monitoring process for agricultural loans is generally similar, with a focus on higher risk loans, including reviews on a geographic and property-type basis. Higher risk commercial and agricultural loans are reviewed individually on an ongoing basis for potential credit loss and specific valuation allowances are established using the methodology described above for all loan portfolio segments. Quarterly, the remaining loans are reviewed on a pool basis by aggregating groups of loans that have similar risk characteristics for potential credit loss, and non-specific valuation allowances are established as described above using inputs that are unique to each segment of the loan portfolio. 11 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) For commercial loans, the Company's primary credit quality indicator is the debt service coverage ratio, which compares a property's net operating income to amounts needed to service the principal and interest due under the loan. Generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss. The values utilized in calculating these ratios are developed in connection with the ongoing review of the commercial loan portfolio and are routinely updated. For agricultural loans, the Company's primary credit quality indicator is the loan-to-value ratio. Loan-to-value ratios compare the amount of the loan to the estimated fair value of the underlying collateral. A loan-to-value ratio greater than 100% indicates that the loan amount is greater than the collateral value. A loan-to-value ratio of less than 100% indicates an excess of collateral value over the loan amount. Generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss. The values utilized in calculating these ratios are developed in connection with the ongoing review of the agricultural loan portfolio and are routinely updated. Policy Loans. Policy loans are stated at unpaid principal balances. Interest income on such loans is recorded as earned in net investment income using the contractually agreed upon interest rate. Generally, interest is capitalized on the policy's anniversary date. Valuation allowances are not established for policy loans, as these loans are fully collateralized by the cash surrender value of the underlying insurance policies. Any unpaid principal or interest on the loan is deducted from the cash surrender value or the death benefit prior to settlement of the policy. 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 consisting of leveraged buy-out funds, hedge funds and other private equity funds 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 equity method is also used for such investments in which the Company has more than a minor influence or more than a 20% interest. Generally, the Company records its share of earnings using a three-month lag methodology for instances where the timely financial information is available and the contractual right exists to receive such financial information on a timely basis. 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. The Company reports the distributions from real estate joint ventures and other limited partnership interests accounted for under the cost method and equity in earnings from real estate joint ventures and other limited partnership interests accounted for under the equity method in net investment income. 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. The Company considers its cost method investments for OTTI when the carrying value of real estate joint ventures and other limited partnership interests exceeds the net asset value ("NAV"). The Company takes into consideration the severity and duration of this excess when deciding if the cost method investment is other-than-temporarily impaired. 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 OTTI is deemed to have occurred, the Company records a realized capital loss within net investment gains (losses) to record the investment at its estimated fair value. 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 purchase and are stated at amortized cost, which approximates estimated fair value, or stated at estimated fair value, if available. Short-term investments also include investments in affiliated money market pools. 12 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Other Invested Assets. Other invested assets consist of tax credit partnerships, freestanding derivatives with positive estimated fair values, and leveraged leases. Tax credit partnerships are established for the purpose of investing in low-income housing and other social causes, where the primary return on investment is in the form of income tax credits and are also accounted for under the equity method or under the effective yield method. The Company reports the equity in earnings of tax credit partnerships in net investment income. Freestanding derivatives with positive estimated fair values are described in the derivatives accounting policy which follows. Leveraged leases are recorded net of non-recourse debt. The Company participates in lease transactions which are diversified by industry, asset type and geographic area. The Company recognizes income on the leveraged leases by applying the leveraged lease's estimated rate of return to the net investment in the lease. The Company regularly reviews residual values and impairs them to expected values. Investments Risks and Uncertainties. The Company's investments are exposed to four primary sources of risk: credit, interest rate, liquidity risk, and market valuation. The financial statement risks, stemming from such investment risks, are those associated with the determination of estimated fair values, the diminished ability to sell certain investments in times of strained market conditions, the recognition of impairments, the recognition of income on certain investments and the potential consolidation of VIEs. The use of different methodologies, assumptions and inputs relating to these financial statement risks may have a material effect on the amounts presented within the consolidated financial statements. When available, the estimated fair value of the Company's fixed maturity and equity securities are based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company's securities holdings and valuation of these securities does not involve management judgment. When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies. The market standard valuation methodologies utilized include: discounted cash flow methodologies, matrix pricing or other similar techniques. The inputs to these market standard valuation methodologies include, but are not limited to: interest rates, credit standing of the issuer or counterparty, industry sector of the issuer, coupon rate, call provisions, sinking fund requirements, maturity, estimated duration and management's assumptions regarding liquidity and estimated future cash flows. Accordingly, the estimated fair values are based on available market information and management's judgments about financial instruments. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Such observable inputs include benchmarking prices for similar assets in active, liquid markets, quoted prices in markets that are not active and observable yields and spreads in the market. When observable inputs are not available, the market standard valuation methodologies for determining the estimated fair value of certain types of securities that trade infrequently, and therefore have little or no price transparency, rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from or corroborated by observable market data. These unobservable inputs can be based in large part on management judgment or estimation, and cannot be supported by reference to market activity. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and consistent with what other market participants would use when pricing such securities. 13 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. The Company's ability to sell securities, or the price ultimately realized for these securities, depends upon the demand and liquidity in the market and increases the use of judgment in determining the estimated fair value of certain securities. The determination of the amount of allowances and impairments, as applicable, is 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. The recognition of income on certain investments (e.g. loan-backed securities, including mortgage-backed, ABS and certain structured investment transactions) is dependent upon market conditions, which could result in prepayments and changes in amounts to be earned. The accounting guidance for the determination of when an entity is a VIE and when to consolidate a VIE is complex and requires significant management judgment. The determination of the VIE's primary beneficiary requires an evaluation of the contractual and implied rights and obligations associated with each party's relationship with or involvement in the entity, an estimate of the entity's expected losses and expected residual returns and the allocation of such estimates to each party involved in the entity. The Company generally uses a qualitative approach to determine whether it is the primary beneficiary. For most VIEs, the entity that has both the ability to direct the most significant activities of the VIE and the obligation to absorb losses or receive benefits that could be significant to the VIE is considered the primary beneficiary. However, for VIEs that are investment companies or apply measurement principles consistent with those utilized by investment companies, the primary beneficiary is based on a risks and rewards model and is defined as the entity that will absorb a majority of a VIE's expected losses, receive a majority of a VIE's expected residual returns if no single entity absorbs a majority of expected losses, or both. The Company reassesses its involvement with VIEs on an annual basis. The use of different methodologies, assumptions and inputs in the determination of the primary beneficiary could have a material effect on the amounts presented within the consolidated financial statements. Derivative Financial Instruments Derivatives are financial instruments whose values are derived from interest rates, foreign currency exchange rates, and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter market. The Company uses a variety of derivatives, including swaps, forwards, futures and option contracts, to manage various risks relating to its ongoing business. 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 consolidated balance sheets either as assets within other invested assets or as liabilities within other liabilities at estimated fair value as determined through the use of quoted market prices for exchange-traded derivatives or through the use of pricing models for over-the-counter derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that are assumed to be consistent with what other market participants would use when pricing the instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk (including the counterparties to the contract), volatility, liquidity and changes in estimates and assumptions used in the pricing models. 14 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The Company does not offset the fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. 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 estimated fair value of the derivative are generally reported in net derivative gains (losses). The fluctuations in estimated 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 estimated fair value of a recognized asset or liability ("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 guidance continue to evolve in practice. Judgment is applied in determining the availability and application of hedge accounting designations and the appropriate accounting treatment under such accounting guidance. If it was determined that hedge accounting designations were not appropriately applied, reported net income could be materially affected. Under a fair value hedge, changes in the estimated fair value of the hedging derivative, including amounts measured as ineffectiveness, and changes in the estimated fair value of the hedged item related to the designated risk being hedged, are reported within net derivative gains (losses). The estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported in the consolidated statements of operations within interest income or interest expense to match the location of the hedged item. However, accruals that are not scheduled to settle until maturity are included in the estimated fair value of derivatives in the consolidated balance sheets. Under a cash flow hedge, changes in the estimated 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 consolidated statements of operations when the Company's earnings are affected by the variability in cash flows of the hedged item. Changes in the estimated fair value of the hedging instrument measured as ineffectiveness are reported within net derivative gains (losses). The estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported in the consolidated statements of operations within interest income or interest expense to match the location of the hedged item. However, accruals that are not scheduled to settle until maturity are included in the estimated fair value of derivatives in the consolidated balance sheets. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the estimated 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; or (iv) the derivative is de-designated as a hedging instrument. 15 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the estimated fair value or cash flows of a hedged item, the derivative continues to be carried in the consolidated balance sheets at its estimated fair value, with changes in estimated fair value recognized currently in net derivative 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 estimated 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 estimated fair value of derivatives recorded in other comprehensive income (loss) related to discontinued cash flow hedges are released into the consolidated statements of operations 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 on the anticipated date or within two months of that date, the derivative continues to be carried in the consolidated balance sheets at its estimated fair value, with changes in estimated fair value recognized currently in net derivative gains (losses). Deferred gains and losses of a derivative recorded in other comprehensive income (loss) pursuant to the discontinued cash flow hedge of a forecasted transaction that is no longer probable are recognized immediately in net derivative gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its estimated fair value in the consolidated balance sheets, with changes in its estimated fair value recognized in the current period as net derivative 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 estimated 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 in the consolidated balance sheets at estimated fair value with the host contract and changes in their estimated fair value are generally reported in net derivative 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 estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income. Additionally, the Company may elect to carry an entire contract on the balance sheet at estimated fair value, with changes in estimated fair value recognized in the current period in net investment gains (losses) or net investment income if that contract contains an embedded derivative that requires bifurcation. 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. Cash equivalents are stated at amortized cost, which approximates estimated fair value. 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 $90 million and $66 million at December 31, 2010 and 2009, respectively. Accumulated amortization of capitalized software was $41 million and $25 million at December 31, 2010 and 2009, respectively. Related amortization expense was $16 million, $10 million and $9 million for the years ended December 31, 2010, 2009 and 2008, respectively. 16 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Deferred Policy Acquisition Costs ("DAC") 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 issuance expenses. The recovery of DAC is dependent upon the future profitability of the related business. DAC on life insurance or investment-type contracts is 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 and non-dividend paying traditional contracts (primarily term 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, the 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. When expected future gross profits are below those previously estimated, the DAC amortization will increase, resulting in a current period charge to earnings. The opposite result occurs when the expected future gross profits are above the previously estimated expected future gross profits. Each period, the Company also reviews the estimated gross profits for each block of business to determine the recoverability of DAC balances. 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 which can result in significant fluctuations in amortization of DAC. Returns that are higher than the 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 and living 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 events and only changes the assumption when its long-term expectation changes. 17 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The Company also periodically reviews 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. Periodically, the Company modifies 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 such modification, referred to as an internal replacement, substantially changes the contract, the associated 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 generally 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. The amortization of sales inducements is included in policyholder benefits and claims. Each year, or more frequently if circumstances indicate a potentially significant recoverability issue exists, the Company reviews the deferred sales inducements to determine the recoverability of these balances. Value of Distribution Agreements Value of distribution agreements ("VODA") is reported in other assets and represents the present value of expected future profits associated with the expected future business derived from the distribution agreements. The VODA associated with past acquisitions contributed to the Company by MetLife is amortized over useful lives ranging from 10 to 30 years and such amortization is included in other expenses. Each year, or more frequently if circumstances indicate a potentially significant recoverability issue exists, the Company reviews VODA to determine the recoverability of these balances. 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. These assumptions are established at the time the policy is issued and are intended to estimate the experience for the period the policy benefits are payable. Utilizing these assumptions, liabilities are established on a block of business basis. 18 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 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 experience when the basis of the liability is established. Interest rate assumptions used in establishing such liabilities range from 4% to 7%. Future policy benefit liabilities for traditional fixed annuities after annuitization are equal to the present value of expected future payments. Interest rate assumptions used in establishing such liabilities range from 4% to 9%. 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: . 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 appropriate underlying equity index, such as the Standard & Poor's ("S&P") 500 Index. The benefit assumptions 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. Certain GMIBs have settlement features that result in a portion of that guarantee being accounted for as an embedded derivative and are recorded in policyholder account balances as described below. 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. 19 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The Company establishes policyholder account balances for guaranteed minimum benefits relating to certain variable annuity products as follows: . Guaranteed minimum withdrawal benefits ("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 estimated fair value separately from the host variable annuity product. . Guaranteed minimum accumulation benefits ("GMAB") and settlement features in certain GMIB described above 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 an embedded derivative, which is measured at estimated fair value separately from the host variable annuity product. For GMWB, GMAB and certain GMIB, 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. GMWB, GMAB and certain GMIB are accounted for as embedded derivatives with changes in estimated fair value reported in net derivative gains (losses). At inception of the GMWB, GMAB and certain GMIB contracts, the Company attributes to the embedded derivative a portion of the projected future guarantee fees to be collected from the policyholder equal to the present value of projected future guaranteed benefits. Any additional fees represent "excess" fees and are reported in universal life and investment-type product policy fees. The estimated fair values of these embedded derivatives are then determined based on the present value of projected future benefits minus the present value of projected future fees. The projections of future benefits and future fees require capital market and actuarial assumptions including expectations concerning policyholder behavior. A risk neutral valuation methodology is used under which the cash flows from the guarantees are projected under multiple capital market scenarios using observable risk free rates. The valuation of these embedded derivatives also includes an adjustment for the Company's nonperformance risk and risk margins for non-capital market inputs. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife's debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries compared to MetLife. Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment. These guaranteed minimum benefits may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates, changes in nonperformance risk and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. 20 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The Company cedes the risks associated with certain of the GMIB, GMAB and GMWB guarantees described in the preceding paragraphs to an affiliated reinsurance company. These reinsurance contracts contain embedded derivatives which are included in premiums, reinsurance and other receivables with changes in estimated fair value reported in net derivative gains (losses). The value of these embedded derivatives on the ceded risks is determined using a methodology consistent with that described previously for the guarantees directly written by the Company. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also cedes to the same affiliated reinsurance company certain directly written GMIB guarantees that are accounted for as insurance (i.e. not as embedded derivatives) and the reinsurance contract contains an embedded derivative. These embedded derivatives are included in premiums, reinsurance and other receivables with changes in estimated fair value reported in net derivative gains (losses). The value of these embedded derivatives is determined using a methodology consistent with that described previously for the guarantees directly written by the Company. 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 and guarantees, 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, universal life-type policies and certain guaranteed minimum benefits. Investment-type contracts principally include traditional individual fixed annuities in the accumulation phase and non-variable group annuity contracts. Policyholder account balances for these contracts are equal to policy account values, which consist of an accumulation of gross premium payments and credited interest, ranging from 1% to 12%, less expenses, mortality charges and withdrawals. Other Policy-Related Balances Other policy-related balances 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 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 21 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 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. The portion of fees allocated to embedded derivatives described previously is recognized within net derivative gains (losses) as part of the estimated fair value of embedded derivatives. 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 The Company joins with MICC in filing a consolidated U.S. federal income tax return in accordance with the provisions of the Internal Revenue Code of 1986, as amended. The Company participates in a tax sharing agreement with MICC. Under the agreement, current income tax expense (benefit) is computed on a separate return basis and provides that members shall make payments (receive reimbursement) to (from) MICC to the extent that their incomes (losses and other credits) contribute to (reduce) the consolidated income tax expense. The consolidating companies are reimbursed for net operating losses or other tax attributes they have generated when utilized in the consolidated return. 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. 22 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 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 (see Note 9) or 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 consolidated financial statements in the year these changes occur. 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 agreements primarily as a purchaser of reinsurance for its life insurance products and also as a provider of reinsurance for some insurance products issued by third parties. For each of its reinsurance agreements, the Company determines whether the agreement 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 reinsurance agreement. 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 agreements 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 agreements are included in premiums, reinsurance and other receivables and amounts currently payable are included in other liabilities. Such assets and liabilities relating to reinsurance agreements with the same reinsurer may be recorded net on the balance sheet, if a right of offset exists within the reinsurance agreement. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, reinsurance balances recoverable could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. 23 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Premiums, fees and policyholder benefits and claims include amounts assumed under reinsurance agreements and are net of reinsurance ceded. Amounts received from reinsurers for policy administration are reported in other revenues. If the Company determines that a reinsurance agreement does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the agreement using the deposit method of accounting. Deposits received are included in other liabilities and deposits made are included within premiums, reinsurance and other receivables. As amounts are paid or received, consistent with the underlying contracts, the deposit assets or liabilities are adjusted. Interest on 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. 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. Cessions under reinsurance arrangements do not discharge the Company's obligations as the primary insurer. Foreign Currency The results of foreign operations, if any, are recorded based on the functional currency of each entity. The determination of the functional currency is made based on appropriate economic and management indicators. The local currencies of foreign operations are the functional currencies. Assets and liabilities are translated from the functional currency to U.S. dollars 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. The resulting translation adjustments are charged or credited directly to other comprehensive income or loss, net of applicable taxes. Gains and losses from foreign currency transactions, including the effect of re-measurement of monetary assets and liabilities to the appropriate functional currency, are reported as part of net investment gains (losses) in the period in which they occur. Litigation Contingencies The Company is a party to legal actions and is involved in regulatory investigations. On a quarterly and 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 consolidated financial statements. 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. Although it is possible that an adverse outcome in certain matters 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 outcome of such pending investigations and legal proceedings are not likely to have such an effect. However, it is possible that an adverse outcome in certain of the Company's litigation and regulatory investigations, or the use of different assumptions in the determination of amounts recorded could, from time to time, have a material adverse effect upon the Company's consolidated net income or cash flows in particular annual periods. 24 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 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. Assets within the Company's separate accounts are comprised of actively traded mutual funds. 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 which is based on the estimated fair values of the underlying assets comprising the portfolios of an individual separate account. 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 consolidated statements of operations. 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. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS Financial Instruments Effective December 31, 2010, the Company adopted new guidance regarding disclosures about the credit quality of financing receivables and valuation allowances for credit losses, including credit quality indicators. Such disclosures must be disaggregated by portfolio segment or class based on how a company develops its valuation allowances for credit losses and how it manages its credit exposure. The Company has provided all material required disclosures in its consolidated financial statements. Certain additional disclosures will be required for reporting periods ending March 31, 2011 and certain disclosures relating to troubled debt restructurings have been deferred indefinitely. Effective July 1, 2010, the Company adopted new guidance regarding accounting for embedded credit derivatives within structured securities. This guidance clarifies the type of embedded credit derivative that is exempt from embedded derivative bifurcation requirements. Specifically, embedded credit derivatives resulting only from subordination of one financial instrument to another continue to qualify for the scope exception. Embedded credit derivative features other than subordination must be analyzed to determine whether they require bifurcation and separate accounting. The adoption of this guidance did not have an impact on the Company's consolidated financial statements. Effective January 1, 2010, the Company adopted new guidance related to financial instrument transfers and consolidation of VIEs. The financial instrument transfer guidance eliminates the concept of a qualified special purpose entity ("QSPE"), eliminates the guaranteed mortgage securitization exception, changes the criteria for achieving sale accounting when transferring a financial asset and changes the initial recognition of retained beneficial interests. The new consolidation guidance changes the definition of the primary beneficiary, as well as the method of determining whether an entity is a primary beneficiary of a VIE from a quantitative model to a qualitative model. Under the new qualitative model, the entity that has both the ability to direct the most significant activities of the VIE and the obligation to absorb losses or receive benefits that could be significant to the VIE is considered to be the primary beneficiary of the VIE. The guidance requires a quarterly reassessment, as well as enhanced disclosures, including the effects of a company's involvement with VIEs on its financial statements. 25 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Also effective January 1, 2010, the Company adopted new guidance that indefinitely defers the above changes relating to the Company's interests in entities that have all the attributes of an investment company or for which it is industry practice to apply measurement principles for financial reporting that are consistent with those applied by an investment company. As a result of the deferral, the above guidance did not apply to certain real estate joint ventures and other limited partnership interests held by the Company. As more fully described in "Summary of Significant Accounting Policies and Critical Accounting Estimates," effective April 1, 2009, the Company adopted OTTI guidance. This guidance amends the previously used methodology for determining whether an OTTI exists for fixed maturity securities, changes the presentation of OTTI for fixed maturity securities and requires additional disclosures for OTTI on fixed maturity and equity securities. The Company had no net cumulative effect adjustment related to the adoption of the OTTI guidance. As a result of the adoption of the OTTI guidance, the Company's pre-tax earnings for the year ended December 31, 2009 increased by $5 million, offset by an increase in other comprehensive loss representing OTTI relating to noncredit losses recognized during the year ended December 31, 2009. Effective January 1, 2009, the Company adopted guidance on disclosures about derivative instruments and hedging. This guidance 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. The Company has provided all of the material disclosures in its consolidated financial statements. The following pronouncements relating to financial instruments had no material impact on the Company's consolidated financial statements: . Effective January 1, 2009, the Company adopted prospectively an update on accounting for transfers of financial assets and repurchase financing transactions. This update 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. . Effective December 31, 2008, the Company adopted guidance on the recognition of interest income and impairment on purchased beneficial interests and beneficial interests that continue to be held by a transferor in securitized financial assets. This new guidance more closely aligns the determination of whether an OTTI has occurred for a beneficial interest in a securitized financial asset with the original guidance for fixed maturity securities classified as available-for-sale or held-to-maturity. . Effective January 1, 2008, the Company adopted guidance relating to application of the shortcut method of accounting for derivative instruments and hedging activities. This guidance permits interest rate swaps to have a non-zero fair value at inception when applying the shortcut method of assessing hedge effectiveness as long as the difference between the transaction price (zero) and the fair value (exit price), as defined by current accounting guidance on fair value measurements, is solely attributable to a bid-ask spread. In addition, entities are not precluded from applying the shortcut method of assessing hedge effectiveness 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. 26 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) . Effective January 1, 2008, the Company adopted guidance that permits 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. This guidance also includes certain terminology modifications. Upon adoption of this guidance, the Company did not change its accounting policy of not offsetting fair value amounts recognized for derivative instruments under master netting arrangements. Business Combinations and Noncontrolling Interests Effective January 1, 2009, the Company adopted revised guidance on business combinations and accounting for noncontrolling interests in the consolidated financial statements. Under this guidance: . 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. . Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized at fair value if the acquisition date fair value can be reasonably determined. If the fair value is not estimable, an asset or liability is recorded if existence or incurrence at the acquisition date is probable and its amount is reasonably estimable. . Changes in deferred income 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. . Net income (loss) includes amounts attributable to noncontrolling interests. . 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 adoption of this guidance on a prospective basis did not have an impact on the Company's consolidated financial statements. As the Company did not have a minority interest, the adoption of this guidance, which required retrospective application of presentation requirements of noncontrolling interest, did not have an impact on the Company's consolidated financial statements. 27 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Effective January 1, 2009, the Company adopted prospectively guidance on determination of the useful life of intangible assets. This guidance amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset. This change is intended to improve the consistency between the useful life of a recognized intangible asset and the period of expected future cash flows used to measure the fair value of the asset. The Company determines useful lives and provides all of the material disclosures prospectively on intangible assets acquired on or after January 1, 2009 in accordance with this guidance. Fair Value Effective January 1, 2010, the Company adopted new guidance that requires new disclosures about significant transfers into and/or out of Levels 1 and 2 of the fair value hierarchy and activity in Level 3. In addition, this guidance provides clarification of existing disclosure requirements about level of disaggregation and inputs and valuation techniques. The adoption of this guidance did not have an impact on the Company's consolidated financial statements. Effective January 1, 2008, the Company adopted fair value measurements guidance which defines fair value, establishes a consistent framework for measuring fair value, establishes a fair value hierarchy based on the observability of inputs used to measure fair value, and requires enhanced disclosures about fair value measurements and applied this guidance prospectively to assets and liabilities measured at fair value. The adoption of this guidance changed the valuation of certain freestanding derivatives by moving from a mid to bid pricing convention as it relates to certain volatility inputs, as well as the addition of liquidity adjustments and adjustments for risks inherent in a particular input or valuation technique. The adoption of this guidance also changed the valuation of the Company's embedded derivatives, most significantly the valuation of embedded derivatives associated with certain guarantees on variable annuity contracts. The change in valuation of embedded derivatives associated with guarantees on annuity contracts resulted from the incorporation of risk margins associated with non-capital market inputs and the inclusion of the Company's nonperformance risk in their valuation. At January 1, 2008, the impact of adopting the guidance on assets and liabilities measured at estimated fair value was $63 million ($41 million, net of income tax) and was recognized as a change in estimate in the accompanying consolidated statement of operations where it was presented in the respective statement of operations caption to which the item measured at estimated fair value is presented. There were no significant changes in estimated fair value of items measured at fair value and reflected in accumulated other comprehensive income (loss). The addition of risk margins and the Company's nonperformance risk adjustment in the valuation of embedded derivatives associated with annuity contracts may result in significant volatility in the Company's consolidated net income in future periods. The Company provided all of the material disclosures in Note 4. The following pronouncements relating to fair value had no material impact on the Company's consolidated financial statements: . Effective September 30, 2008, the Company adopted guidance relating to the fair value measurements of financial assets when the market for those assets is not active. It provides guidance on how a company's internal cash flow and discount rate assumptions should be considered in the measurement of fair value when relevant market data does not exist, how observable market information in an inactive market affects fair value measurement and how the use of market quotes should be considered when assessing the relevance of observable and unobservable data available to measure fair value. . Effective January 1, 2009, the Company implemented fair value measurements guidance for certain nonfinancial assets and liabilities that are recorded at fair value on a non-recurring basis. This guidance applies to such items as: (i) nonfinancial assets and nonfinancial liabilities initially measured at 28 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) estimated fair value in a business combination; (ii) reporting units measured at estimated fair value in the first step of a goodwill impairment test; and (iii) indefinite-lived intangible assets measured at estimated fair value for impairment assessment. . Effective January 1, 2009, the Company adopted prospectively guidance on issuer's accounting for liabilities measured at fair value with a third-party credit enhancement. This guidance states that an issuer of a liability with a third-party credit enhancement should not include the effect of the credit enhancement in the fair value measurement of the liability. In addition, it requires disclosures about the existence of any third-party credit enhancement related to liabilities that are measured at fair value. . Effective April 1, 2009, the Company adopted guidance on: (i) estimating the fair value of an asset or liability if there was a significant decrease in the volume and level of trading activity for these assets or liabilities; and (ii) identifying transactions that are not orderly. The Company has provided all of the material disclosures in its consolidated financial statements. . Effective December 31, 2009, the Company adopted guidance on: (i) measuring the fair value of investments in certain entities that calculate NAV per share; (ii) how investments within its scope would be classified in the fair value hierarchy; and (iii) enhanced disclosure requirements for annual periods, about the nature and risks of investments measured at fair value on a recurring or non-recurring basis. . Effective December 31, 2009, the Company adopted guidance on measuring liabilities at fair value. This guidance provides clarification for measuring fair value in circumstances in which a quoted price in an active market for the identical liability is not available. In such circumstances a company is required to measure fair value using either a valuation technique that uses: (i) the quoted price of the identical liability when traded as an asset; or (ii) quoted prices for similar liabilities or similar liabilities when traded as assets; or (iii) another valuation technique that is consistent with the principles of fair value measurement such as an income approach (e.g., present value technique) or a market approach (e.g., "entry" value technique). Other Pronouncements Effective April 1, 2009, the Company adopted prospectively guidance which establishes general standards for accounting and disclosures of events that occur subsequent to the balance sheet date but before financial statements are issued or available to be issued. The Company has provided all of the material disclosures in its consolidated financial statements. Effective January 1, 2008, the Company prospectively adopted guidance on the sale of real estate when the agreement includes a buy-sell clause. This guidance addresses whether the existence of a buy-sell arrangement would preclude partial sales treatment when real estate is sold to a jointly owned entity and concludes that the existence of a buy-sell clause does not necessarily preclude partial sale treatment under current guidance. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. FUTURE ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS In April 2011, the Financial Accounting Standards Board ("FASB") issued new guidance regarding accounting for troubled debt restructuring (Accounting Standards Update ("ASU") 2011-02, Receivables (Topic 310): A Creditor's Determination of Whether a Restructuring Is a Troubled Debt Restructuring), effective for the first annual period beginning on or after June 15, 2011 and should be applied retrospectively to the beginning of the annual period of adoption. This guidance clarifies whether a creditor has granted a concession and whether a debtor is experiencing financial difficulties for the purpose of determining when a restructuring constitutes a troubled debt restructuring. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. 29 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) In December 2010, the FASB issued new guidance addressing when a business combination should be assumed to have occurred for the purpose of providing pro forma disclosure (ASU 2010-29, Business Combinations (Topic 805): Disclosure of Supplementary Pro Forma Information for Business Combinations). Under the new guidance, if an entity presents comparative financial statements, the entity should disclose revenue and earnings of the combined entity as though the business combination that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period. The guidance also expands the supplemental pro forma disclosures to include additional narratives. The guidance is effective for fiscal years beginning on or after December 15, 2010. The Company will apply the guidance prospectively on its accounting for future acquisitions and does not expect the adoption of this guidance to have a material impact on the Company's consolidated financial statements. In October 2010, the FASB issued new guidance regarding accounting for deferred acquisition costs (ASU 2010-26, Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts) effective for the first quarter of 2012. This guidance clarifies the costs that should be deferred by insurance entities when issuing and renewing insurance contracts. The guidance also specifies that only costs related directly to successful acquisition of new or renewal contracts can be capitalized. All other acquisition-related costs should be expensed as incurred. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. In April 2010, the FASB issued new guidance regarding accounting for investment funds determined to be VIEs (ASU 2010-15, How Investments Held through Separate Accounts Affect an Insurer's Consolidation Analysis of Those Investments). Under this guidance, an insurance entity would not be required to consolidate a voting-interest investment fund when it holds the majority of the voting interests of the fund through its separate accounts. In addition, an insurance entity would not consider the interests held through separate accounts for the benefit of policyholders in the insurer's evaluation of its economics in a VIE, unless the separate account contractholder is a related party. The guidance is effective for the first quarter of 2011. The Company does not expect the adoption of this new guidance to have a material impact on its consolidated financial statements. 30 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 2. INVESTMENTS FIXED MATURITY AND EQUITY SECURITIES AVAILABLE-FOR-SALE The following tables present the cost or amortized cost, gross unrealized gain and loss, estimated fair value of the Company's fixed maturity and equity securities and the percentage that each sector represents by the respective total holdings for the periods shown. The unrealized loss amounts presented below include the noncredit loss component of OTTI loss:
DECEMBER 31, 2010 --------------------------------------------- GROSS UNREALIZED COST OR ------------------- ESTIMATED AMORTIZED TEMPORARY OTTI FAIR % OF COST GAIN LOSS LOSS VALUE TOTAL --------- ---- --------- ---- --------- ----- (IN MILLIONS) FIXED MATURITY SECURITIES: U.S. corporate securities.................. $3,186 $220 $ 34 $ -- $3,372 38.9% Foreign corporate securities............... 1,394 103 7 -- 1,490 17.1 U.S. Treasury and agency securities........ 1,153 18 28 -- 1,143 13.2 RMBS....................................... 956 52 18 6 984 11.3 State and political subdivision securities. 643 10 23 -- 630 7.3 CMBS....................................... 490 26 3 -- 513 5.9 ABS........................................ 409 13 13 -- 409 4.7 Foreign government securities.............. 119 16 -- -- 135 1.6 ------ ---- ---- ---- ------ ----- Total fixed maturity securities (1) (2)... $8,350 $458 $126 $ 6 $8,676 100.0% ====== ==== ==== ==== ====== ===== EQUITY SECURITIES: Common stock............................... $ 1 $ 1 $ -- $ -- $ 2 66.7% Non-redeemable preferred stock (1)......... 2 -- 1 -- 1 33.3 ------ ---- ---- ---- ------ ----- Total equity securities (3)............... $ 3 $ 1 $ 1 $ -- $ 3 100.0% ====== ==== ==== ==== ====== =====
DECEMBER 31, 2009 --------------------------------------------- GROSS UNREALIZED COST OR ------------------- ESTIMATED AMORTIZED TEMPORARY OTTI FAIR % OF COST GAIN LOSS LOSS VALUE TOTAL --------- ---- --------- ---- --------- ----- (IN MILLIONS) FIXED MATURITY SECURITIES: U.S. corporate securities.................. $2,893 $112 $ 60 $ -- $2,945 37.8% Foreign corporate securities............... 943 42 18 -- 967 12.4 U.S. Treasury and agency securities........ 919 5 65 -- 859 11.0 RMBS....................................... 1,379 34 44 3 1,366 17.5 State and political subdivision securities. 358 5 12 -- 351 4.5 CMBS....................................... 738 5 31 -- 712 9.1 ABS........................................ 525 11 26 1 509 6.5 Foreign government securities.............. 87 9 -- -- 96 1.2 ------ ---- ---- ---- ------ ----- Total fixed maturity securities (1) (2)... $7,842 $223 $256 $ 4 $7,805 100.0% ====== ==== ==== ==== ====== ===== EQUITY SECURITIES: Common stock............................... $ 2 $ -- $ -- $ -- $ 2 66.7% Non-redeemable preferred stock (1)......... 2 -- 1 -- 1 33.3 ------ ---- ---- ---- ------ ----- Total equity securities (3)............... $ 4 $ -- $ 1 $ -- $ 3 100.0% ====== ==== ==== ==== ====== =====
31 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) -------- (1)Upon acquisition, the Company classifies perpetual securities that have attributes of both debt and equity as fixed maturity securities if the security has an interest rate step-up feature which, when combined with other qualitative factors, indicates that the security has more debt-like characteristics. The Company classifies perpetual securities with an interest rate step-up feature which, when combined with other qualitative factors, indicates that the security has more equity-like characteristics, as equity securities within non-redeemable preferred stock. Many of such securities have been issued by non-U.S. financial institutions that are accorded Tier 1 and Upper Tier 2 capital treatment by their respective regulatory bodies and are commonly referred to as "perpetual hybrid securities." The following table presents the perpetual hybrid securities held by the Company at:
DECEMBER 31, ------------------- 2010 2009 --------- --------- ESTIMATED ESTIMATED CLASSIFICATION FAIR FAIR ---------------------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS SECTOR TABLE PRIMARY ISSUERS VALUE VALUE --------------------------- ------------------------------- -------------------------------- --------- --------- (IN MILLIONS) Equity securities........... Non-redeemable preferred stock Non-U.S. financial institutions $ 1 $ 1 Fixed maturity securities... Foreign corporate securities Non-U.S. financial institutions $31 $32
-------- (2)The Company's holdings in redeemable preferred stock with stated maturity dates, commonly referred to as "capital securities", were primarily issued by U.S. financial institutions and have cumulative interest deferral features. The Company held $60 million and $43 million at estimated fair value of such securities at December 31, 2010 and 2009, respectively, which are included in the U.S. and foreign corporate securities sectors within fixed maturity securities. (3)Equity securities primarily consist of investments in common and preferred stocks, including certain perpetual hybrid securities and mutual fund interests. Privately-held equity securities represented less than $1 million at estimated fair value at both December 31, 2010 and 2009. The Company held foreign currency derivatives with notional amounts of $117 million and $55 million to hedge the exchange rate risk associated with foreign denominated fixed maturity securities at December 31, 2010 and 2009, respectively. The below investment grade and non-income producing amounts presented below are based on rating agency designations and equivalent designations of the National Association of Insurance Commissioners ("NAIC"), with the exception of certain structured securities described below. Non-agency RMBS, including RMBS backed by sub-prime mortgage loans reported within ABS, CMBS and all other ABS are presented based on final ratings from the revised NAIC rating methodologies which became effective December 31, 2009 for non-agency RMBS, including RMBS backed by sub-prime mortgage loans reported within ABS, and December 31, 2010 for CMBS and the remaining ABS (which may not correspond to rating agency designations). All NAIC designation (e.g., NAIC 1 -- 6) amounts and percentages presented herein are based on the revised NAIC methodologies. All rating agency designation (e.g., Aaa/AAA) amounts and percentages presented herein are based on rating agency designations without adjustment for the revised NAIC methodologies described above. Rating agency designations are based on availability of applicable ratings from rating agencies on the NAIC acceptable rating organization list, including Moody's Investors Service ("Moody's"), S&P and Fitch Ratings ("Fitch"). 32 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The following table presents selected information about certain fixed maturity securities held by the Company at:
DECEMBER 31, ----------- 2010 2009 ---- ---- (IN MILLIONS) Below investment grade or non-rated fixed maturity securities: Estimated fair value.......................................... $686 $413 Net unrealized gain (loss).................................... $ 10 $(32) Non-income producing fixed maturity securities: Estimated fair value.......................................... $ -- $ 4 Net unrealized gain (loss).................................... $ -- $ (1)
Concentrations of Credit Risk (Fixed Maturity Securities) -- Summary. The following section contains a summary of the concentrations of credit risk related to fixed maturity securities holdings. The Company was not exposed to any concentrations of credit risk of any single issuer greater than 10% of the Company's stockholder's equity, other than securities of the U.S. government and certain U.S. government agencies. The Company's holdings in U.S. Treasury and agency fixed maturity securities at estimated fair value were $1,143 million and $859 million at December 31, 2010 and 2009, respectively. Concentrations of Credit Risk (Fixed Maturity Securities) -- U.S. and Foreign Corporate Securities. The Company maintains a diversified portfolio of corporate fixed maturity securities across industries and issuers. This portfolio does not have an exposure to any single issuer in excess of 1% of total investments. The tables below present for all corporate fixed maturity securities holdings, corporate securities by sector, U.S. corporate securities by major industry types, the largest exposure to a single issuer and the combined holdings in the ten issuers to which it had the largest exposure at:
DECEMBER 31, -------------------------------- 2010 2009 --------------- --------------- ESTIMATED ESTIMATED FAIR % OF FAIR % OF VALUE TOTAL VALUE TOTAL --------- ----- --------- ----- (IN MILLIONS) Corporate fixed maturity securities -- by sector: Foreign corporate fixed maturity securities (1)......... $1,490 30.6% $ 967 24.7% U.S. corporate fixed maturity securities -- by industry: Consumer................................................ 914 18.8 787 20.1 Industrial.............................................. 888 18.3 761 19.5 Utility................................................. 829 17.0 696 17.8 Finance................................................. 319 6.6 345 8.8 Communications.......................................... 311 6.4 290 7.4 Other................................................... 111 2.3 66 1.7 ------ ----- ------ ----- Total................................................. $4,862 100.0% $3,912 100.0% ====== ===== ====== =====
-------- (1)Includes U.S. dollar-denominated debt obligations of foreign obligors and other foreign fixed maturity securities. 33 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, ------------------------------------------ 2010 2009 -------------------- -------------------- ESTIMATED ESTIMATED FAIR % OF TOTAL FAIR % OF TOTAL VALUE INVESTMENTS VALUE INVESTMENTS --------- ----------- --------- ----------- (IN MILLIONS) Concentrations within corporate fixed maturity securities: Largest exposure to a single issuer....................... $ 60 0.6% $ 55 0.6% Holdings in ten issuers with the largest exposures........ $444 4.1% $415 4.3%
Concentrations of Credit Risk (Fixed Maturity Securities) -- RMBS. The table below presents the Company's RMBS holdings and portion rated Aaa/AAA and portion rated NAIC 1 at:
DECEMBER 31, -------------------------------- 2010 2009 --------------- --------------- ESTIMATED ESTIMATED FAIR % OF FAIR % OF VALUE TOTAL VALUE TOTAL --------- ----- --------- ----- (IN MILLIONS) By security type: Collateralized mortgage obligations.... $643 65.3% $ 657 48.1% Pass-through securities................ 341 34.7 709 51.9 ---- ----- ------ ----- Total RMBS........................... $984 100.0% $1,366 100.0% ==== ===== ====== ===== By risk profile: Agency................................. $788 80.1% $1,172 85.8% Prime.................................. 115 11.7 113 8.3 Alternative residential mortgage loans. 81 8.2 81 5.9 ---- ----- ------ ----- Total RMBS........................... $984 100.0% $1,366 100.0% ==== ===== ====== ===== Portion rated Aaa/AAA................... $811 82.4% $1,191 87.2% ==== ===== ====== ===== Portion rated NAIC 1.................... $841 85.5% $1,277 93.5% ==== ===== ====== =====
Collateralized mortgage obligations are a type of mortgage-backed security structured by dividing the cash flows of mortgages into separate pools or tranches of risk that create multiple classes of bonds with varying maturities and priority of payments. Pass-through mortgage-backed securities are a type of asset-backed security that is secured by a mortgage or collection of mortgages. The monthly mortgage payments from homeowners pass from the originating bank through an intermediary, such as a government agency or investment bank, which collects the payments, and for a fee, remits or passes these payments through to the holders of the pass-through securities. Prime residential mortgage lending includes the origination of residential mortgage loans to the most creditworthy borrowers with high quality credit profiles. Alternative residential mortgage loans ("Alt-A") are a classification of mortgage loans where the risk profile of the borrower falls between prime and sub-prime. Sub-prime mortgage lending is the origination of residential mortgage loans to borrowers with weak credit profiles. 34 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The following tables present the Company's investment in Alt-A RMBS by vintage year (vintage year refers to the year of origination and not to the year of purchase) and certain other selected data:
DECEMBER 31, -------------------------------- 2010 2009 --------------- --------------- ESTIMATED ESTIMATED FAIR % OF FAIR % OF VALUE TOTAL VALUE TOTAL --------- ----- --------- ----- (IN MILLIONS) VINTAGE YEAR: 2005 & Prior.. $35 43.2% $40 49.4% 2006.......... 21 25.9 15 18.5 2007.......... 25 30.9 26 32.1 2008 to 2010.. -- -- -- -- --- ----- --- ----- Total........ $81 100.0% $81 100.0% === ===== === =====
DECEMBER 31, -------------------------- 2010 2009 - ------------ ------------ % OF % OF AMOUNT TOTAL AMOUNT TOTAL - ------ ----- ------ ----- (IN MILLIONS) Net unrealized gain (loss)................................................. $(9) $(18) Rated Aa/AA or better...................................................... --% 4.5% Rated NAIC 1............................................................... 3.9% 9.3% Distribution of holdings -- at estimated fair value -- by collateral type: Fixed rate mortgage loans collateral...................................... 100.0% 100.0% Hybrid adjustable rate mortgage loans collateral.......................... -- -- ----- ----- Total Alt-A RMBS........................................................ 100.0% 100.0% ===== =====
Concentrations of Credit Risk (Fixed Maturity Securities) -- CMBS. The Company's holdings in CMBS were $513 million and $712 million at estimated fair value at December 31, 2010 and 2009, respectively. The Company had no exposure to CMBS index securities at December 31, 2010 or 2009. The Company held commercial real estate collateralized debt obligations securities of $5 million and less than $1 million at estimated fair value at December 31, 2010 and 2009, respectively. The following tables present the Company's holdings of CMBS by vintage year and certain other selected data at:
DECEMBER 31, -------------------------------- 2010 2009 --------------- --------------- ESTIMATED ESTIMATED FAIR % OF FAIR % OF VALUE TOTAL VALUE TOTAL --------- ----- --------- ----- (IN MILLIONS) VINTAGE YEAR: 2003 & Prior.. $234 45.6% $370 52.0% 2004.......... 65 12.7 95 13.4 2005.......... 170 33.1 200 28.0 2006.......... 44 8.6 47 6.6 2007 to 2010.. -- -- -- -- ---- ----- ---- ----- Total........ $513 100.0% $712 100.0% ==== ===== ==== =====
35 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, ------------------------ 2010 2009 ----------- ----------- % OF % OF AMOUNT TOTAL AMOUNT TOTAL ------ ----- ------ ----- (IN MILLIONS) Net unrealized gain (loss). $23 $(26) Rated Aaa/AAA.............. 92% 91% Rated NAIC 1............... 97% 98%
The portion rated Aaa/AAA at December 31, 2010 reflects rating agency designations assigned by nationally recognized rating agencies including Moody's, S&P, Fitch and Realpoint, LLC. The portion rated Aaa/AAA at December 31, 2009 reflects rating agency designations assigned by nationally recognized rating agencies including Moody's, S&P and Fitch. Concentrations of Credit Risk (Fixed Maturity Securities) -- ABS. The Company's holdings in ABS were $409 million and $509 million at estimated fair value at December 31, 2010 and 2009, respectively. The Company's ABS are diversified both by collateral type and by issuer. The following table presents the collateral type and certain other information about ABS held by the Company at:
DECEMBER 31, -------------------------------- 2010 2009 --------------- --------------- ESTIMATED ESTIMATED FAIR % OF FAIR % OF VALUE TOTAL VALUE TOTAL --------- ----- --------- ----- (IN MILLIONS) By collateral type: Credit card loans....................... $181 44.2% $251 49.3% Student loans........................... 38 9.3 52 10.2 Automobile loans........................ 29 7.1 60 11.8 RMBS backed by sub-prime mortgage loans. 26 6.4 21 4.1 Other loans............................. 135 33.0 125 24.6 ---- ----- ---- ----- Total................................. $409 100.0% $509 100.0% ==== ===== ==== ===== Portion rated Aaa/AAA.................... $345 84.4% $458 90.0% ==== ===== ==== ===== Portion rated NAIC 1..................... $391 95.6% $499 98.0% ==== ===== ==== =====
Concentrations of Credit Risk (Equity Securities). The Company was not exposed to any concentrations of credit risk in its equity securities holdings of any single issuer greater than 10% of the Company's stockholder's equity or 1% of total investments at December 31, 2010 and 2009. 36 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Maturities of Fixed Maturity Securities. The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date (excluding scheduled sinking funds), were as follows at:
DECEMBER 31, --------------------------------------- 2010 2009 ------------------- ------------------- ESTIMATED ESTIMATED AMORTIZED FAIR AMORTIZED FAIR COST VALUE COST VALUE --------- --------- --------- --------- (IN MILLIONS) Due in one year or less................ $ 128 $ 132 $ 149 $ 151 Due after one year through five years.. 1,095 1,145 740 775 Due after five years through ten years. 2,264 2,432 1,965 2,006 Due after ten years.................... 3,008 3,061 2,346 2,286 ------ ------ ------ ------ Subtotal.............................. 6,495 6,770 5,200 5,218 RMBS, CMBS and ABS..................... 1,855 1,906 2,642 2,587 ------ ------ ------ ------ Total fixed maturity securities....... $8,350 $8,676 $7,842 $7,805 ====== ====== ====== ======
Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options. Fixed maturity securities not due at a single maturity date have been included in the above table in the year of final contractual maturity. RMBS, CMBS and ABS are shown separately in the table, as they are not due at a single maturity. EVALUATING AVAILABLE-FOR-SALE SECURITIES FOR OTHER-THAN-TEMPORARY IMPAIRMENT As described more fully in Note 1, the Company performs a regular evaluation, on a security-by-security basis, of its available-for-sale securities holdings, including fixed maturity securities, equity securities and perpetual hybrid securities, in accordance with its impairment policy in order to evaluate whether such investments are other-than-temporarily impaired. As described more fully in Note 1, effective April 1, 2009, the Company adopted OTTI guidance that amends the methodology for determining for fixed maturity securities whether an OTTI exists, and for certain fixed maturity securities, changes how the amount of the OTTI loss that is charged to earnings is determined. There was no change in the OTTI methodology for equity securities. 37 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) NET UNREALIZED INVESTMENT GAINS (LOSSES) The components of net unrealized investment gains (losses), included in accumulated other comprehensive income (loss), were as follows:
YEARS ENDED DECEMBER 31, ----------------------- 2010 2009 2008 ---- ---- ----- (IN MILLIONS) Fixed maturity securities............................................................ $331 $(33) $(372) Fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss)........................................................ (6) (4) -- ---- ---- ----- Total fixed maturity securities..................................................... 325 (37) (372) Equity securities.................................................................... -- (1) (4) Derivatives.......................................................................... (73) -- 1 Short-term investments............................................................... -- (9) (100) ---- ---- ----- Subtotal.......................................................................... 252 (47) (475) ---- ---- ----- Amounts allocated from: Insurance liability loss recognition................................................ (34) -- -- DAC related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)....................................................... 1 -- -- DAC................................................................................. (53) (6) 53 ---- ---- ----- Subtotal.......................................................................... (86) (6) 53 Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)...................................... 2 2 -- Deferred income tax benefit (expense)................................................ (61) 16 148 ---- ---- ----- Net unrealized investment gains (losses).......................................... $107 $(35) $(274) ==== ==== =====
Fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss), as presented above of ($6) million at December 31, 2010, includes ($4) million recognized prior to January 1, 2010, ($5) million (($4) million, net of DAC) of noncredit OTTI losses recognized in the year ended December 31, 2010 and $3 million of subsequent increases in estimated fair value during the year ended December 31, 2010 on such securities for which a noncredit OTTI loss was previously recognized in accumulated other comprehensive income (loss). Fixed maturity securities with noncredit OTTI losses in accumulated other comprehensive income (loss), as presented above of ($4) million at December 31, 2009, includes ($5) million of noncredit OTTI losses recognized in the year ended December 31, 2009 and $1 million of subsequent increases in estimated fair value during the year ended December 31, 2009 on such securities for which a noncredit OTTI loss was previously recognized in accumulated other comprehensive income (loss). 38 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The changes in net unrealized investment gains (losses) were as follows:
YEARS ENDED DECEMBER 31, ----------------------- 2010 2009 2008 ---- ----- ----- (IN MILLIONS) Balance, beginning of period.............................................................. $(35) $(274) $ (8) Fixed maturity securities on which noncredit OTTI losses have been recognized............. (2) (4) -- Unrealized investment gains (losses) during the year...................................... 301 432 (477) Unrealized investment gains (losses) relating to: Insurance liability gain (loss) recognition............................................... (34) -- -- DAC related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss)................................................................................... 1 -- -- DAC..................................................................................... (47) (59) 68 Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in accumulated other comprehensive income (loss).......................................... -- 2 -- Deferred income tax benefit (expense)................................................... (77) (132) 143 ---- ----- ----- Balance, end of period.................................................................... $107 $ (35) $(274) ==== ===== ===== Change in net unrealized investment gains (losses)........................................ $142 $ 239 $(266) ==== ===== =====
CONTINUOUS GROSS UNREALIZED LOSS AND OTTI LOSS FOR FIXED MATURITY AND EQUITY SECURITIES AVAILABLE-FOR-SALE BY SECTOR The following tables present the estimated fair value and gross unrealized loss of the Company's fixed maturity and equity securities in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position. The unrealized loss amounts presented below include the noncredit component of OTTI loss. Fixed maturity securities on which a noncredit OTTI loss has been recognized in accumulated other comprehensive income (loss) are categorized by length of time as being "less than 12 months" or "equal to or greater than 12 months" in a continuous unrealized loss position based on the point in time that the estimated fair value initially declined to below the amortized cost basis and not the period of time since the unrealized loss was deemed a noncredit OTTI loss.
DECEMBER 31, 2010 -------------------------------------------------------------- EQUAL TO OR GREATER LESS THAN 12 MONTHS THAN 12 MONTHS TOTAL -------------------- -------------------- -------------------- ESTIMATED GROSS ESTIMATED GROSS ESTIMATED GROSS FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSS VALUE LOSS VALUE LOSS --------- ---------- --------- ---------- --------- ---------- (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) FIXED MATURITY SECURITIES: U.S. corporate securities........................ $ 275 $ 9 $164 $25 $ 439 $ 34 Foreign corporate securities..................... 111 2 45 5 156 7 U.S. Treasury and agency securities.............. 462 18 52 10 514 28 RMBS............................................. 87 2 142 22 229 24 State and political subdivision securities....... 350 15 17 8 367 23 CMBS............................................. 24 -- 27 3 51 3 ABS.............................................. 6 -- 65 13 71 13 Foreign government securities.................... 9 -- -- -- 9 -- ------ --- ---- --- ------ ---- Total fixed maturity securities................ $1,324 $46 $512 $86 $1,836 $132 ====== === ==== === ====== ==== EQUITY SECURITIES: Non-redeemable preferred stock................... $ -- $-- $ 1 $ 1 $ 1 $ 1 ------ --- ---- --- ------ ---- Total equity securities........................ $ -- $-- $ 1 $ 1 $ 1 $ 1 ====== === ==== === ====== ==== Total number of securities in an unrealized loss position........................................ 167 127 ====== ====
39 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 2009 -------------------------------------------------------------- EQUAL TO OR GREATER LESS THAN 12 MONTHS THAN 12 MONTHS TOTAL -------------------- -------------------- -------------------- ESTIMATED GROSS ESTIMATED GROSS ESTIMATED GROSS FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSS VALUE LOSS VALUE LOSS --------- ---------- --------- ---------- --------- ---------- (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) FIXED MATURITY SECURITIES: U.S. corporate securities................... $ 563 $11 $375 $ 49 $ 938 $ 60 Foreign corporate securities................ 185 7 68 11 253 18 U.S. Treasury and agency securities......... 717 65 -- -- 717 65 RMBS........................................ 389 7 189 40 578 47 State and political subdivision securities.. 181 6 18 6 199 12 CMBS........................................ 156 1 231 30 387 31 ABS......................................... 31 1 117 26 148 27 Foreign government securities............... 4 -- -- -- 4 -- ------ --- ---- ---- ------ ---- Total fixed maturity securities............ $2,226 $98 $998 $162 $3,224 $260 ====== === ==== ==== ====== ==== EQUITY SECURITIES: Non-redeemable preferred stock.............. $ 1 $ 1 $ -- $ -- $ 1 $ 1 ------ --- ---- ---- ------ ---- Total equity securities.................... $ 1 $ 1 $ -- $ -- $ 1 $ 1 ====== === ==== ==== ====== ==== Total number of securities in an unrealized loss position............................. 212 246 ====== ====
40 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) AGING OF GROSS UNREALIZED LOSS AND OTTI LOSS FOR FIXED MATURITY AND EQUITY SECURITIES AVAILABLE-FOR-SALE The following tables present the cost or amortized cost, gross unrealized loss, including the portion of OTTI loss on fixed maturity securities recognized in accumulated other comprehensive income (loss), gross unrealized loss as a percentage of cost or amortized cost 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, 2010 ----------------------------------------------------------------- COST OR AMORTIZED COST GROSS UNREALIZED LOSS NUMBER OF 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) FIXED MATURITY SECURITIES: Less than six months........................ $1,364 $ 42 $45 $10 164 7 Six months or greater but less than nine months.................................... -- 14 -- 3 -- 3 Nine months or greater but less than twelve months.................................... 4 3 -- 1 2 1 Twelve months or greater.................... 461 80 50 23 92 24 ------ ---- --- --- Total...................................... $1,829 $139 $95 $37 ====== ==== === === Percentage of amortized cost................ 5% 27% === === EQUITY SECURITIES: Less than six months........................ $ -- $ -- $-- $-- -- -- Six months or greater but less than nine months.................................... -- -- -- -- -- -- Nine months or greater but less than twelve months.................................... -- -- -- -- -- -- Twelve months or greater.................... -- 2 -- 1 -- 1 ------ ---- --- --- Total...................................... $ -- $ 2 $-- $ 1 ====== ==== === === Percentage of cost.......................... --% 50% === ===
41 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 2009 ----------------------------------------------------------------- COST OR AMORTIZED COST GROSS UNREALIZED LOSS NUMBER OF 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) FIXED MATURITY SECURITIES: Less than six months........................ $1,830 $ 94 $ 51 $ 20 196 10 Six months or greater but less than nine months.................................... 327 18 25 4 9 2 Nine months or greater but less than twelve months.................................... 101 30 8 9 6 9 Twelve months or greater.................... 822 262 57 86 177 51 ------ ---- ---- ---- Total...................................... $3,080 $404 $141 $119 ====== ==== ==== ==== Percentage of amortized cost................ 5% 29% ==== ==== EQUITY SECURITIES: Less than six months........................ $ -- $ -- $ -- $ -- -- -- Six months or greater but less than nine months.................................... -- -- -- -- -- -- Nine months or greater but less than twelve months.................................... -- 2 -- 1 -- 1 Twelve months or greater.................... -- -- -- -- -- -- ------ ---- ---- ---- Total...................................... $ -- $ 2 $ -- $ 1 ====== ==== ==== ==== Percentage of cost.......................... --% 50% ==== ====
Equity securities with a gross unrealized loss of 20% or more for twelve months or greater increased from $0 at December 31, 2009 to $1 million at December 31, 2010. As shown in the section "-- Evaluating Temporarily Impaired Available-for-Sale Securities" below, all $1 million of equity securities with a gross unrealized loss of 20% or more for twelve months or greater at December 31, 2010 were financial services industry investment grade non-redeemable preferred stock rated A or better. 42 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) CONCENTRATION OF GROSS UNREALIZED LOSS AND OTTI LOSS FOR FIXED MATURITY AND EQUITY SECURITIES AVAILABLE-FOR-SALE The Company's gross unrealized losses related to its fixed maturity and equity securities, including the portion of OTTI loss on fixed maturity securities recognized in accumulated other comprehensive income (loss) of $133 million and $261 million at December 31, 2010 and 2009, respectively, were concentrated, calculated as a percentage of gross unrealized loss and OTTI loss, by sector and industry as follows:
DECEMBER 31, ----------- 2010 2009 ---- ---- SECTOR: U.S. corporate securities.................. 26% 23% U.S. Treasury and agency securities........ 21 25 RMBS....................................... 18 18 State and political subdivision securities. 17 4 ABS........................................ 10 10 Foreign corporate securities............... 6 7 CMBS....................................... 2 12 Other...................................... -- 1 --- --- Total.................................... 100% 100% === === INDUSTRY: U.S. Treasury and agency securities........ 21% 25% Mortgage-backed............................ 20 30 State and political subdivision securities. 17 4 Finance.................................... 17 16 Asset-backed............................... 10 10 Consumer................................... 3 3 Utility.................................... 2 2 Industrial................................. 1 1 Communications............................. 1 1 Other...................................... 8 8 --- --- Total.................................... 100% 100% === ===
EVALUATING TEMPORARILY IMPAIRED AVAILABLE-FOR-SALE SECURITIES The following table presents the Company's fixed maturity and equity securities, each with a gross unrealized loss of greater than $10 million, the number of securities, total gross unrealized loss and percentage of total gross unrealized loss at:
DECEMBER 31, -------------------------------------------------- 2010 2009 ------------------------ ------------------------ FIXED MATURITY EQUITY FIXED MATURITY EQUITY SECURITIES SECURITIES SECURITIES SECURITIES -------------- ---------- -------------- ---------- (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) Number of securities...................... -- -- 2 -- Total gross unrealized loss............... $ -- $ -- $27 $ -- Percentage of total gross unrealized loss. --% --% 10% --%
43 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Fixed maturity and equity securities, each with a gross unrealized loss greater than $10 million, decreased $27 million during the year ended December 31, 2010. The cause of the decline in, or improvement in, gross unrealized losses for the year ended December 31, 2010, was primarily attributable to a decrease in interest rates and narrowing of credit spreads. These securities were included in the Company's OTTI review process. Based upon the Company's current evaluation of these securities and other available-for-sale securities in an unrealized loss position in accordance with its impairment policy, and the Company's current intentions and assessments (as applicable to the type of security) about holding, selling and any requirements to sell these securities, the Company has concluded that these securities are not other-than-temporarily impaired. In the Company's impairment review process, the duration and severity of an unrealized loss position for equity securities is given greater weight and consideration than for fixed maturity securities. An extended and severe unrealized loss position on a fixed maturity security may not have any impact on the ability of the issuer to service all scheduled interest and principal payments and the Company's evaluation of recoverability of all contractual cash flows or the ability to recover an amount at least equal to its amortized cost based on the present value of the expected future cash flows to be collected. In contrast, for an equity security, greater weight and consideration is given by the Company to a decline in market value and the likelihood such market value decline will recover. The following table presents certain information about the Company's equity securities available-for-sale with a gross unrealized loss of 20% or more at December 31, 2010:
NON-REDEEMABLE PREFERRED STOCK ------------------------------------------------------------------------------ ALL TYPES OF INVESTMENT GRADE ALL EQUITY NON-REDEEMABLE -------------------------------------------------------- SECURITIES PREFERRED STOCK ALL INDUSTRIES FINANCIAL SERVICES INDUSTRY ---------- -------------------- ------------------------- ----------------------------- GROSS GROSS % OF ALL GROSS % OF ALL GROSS % A UNREALIZED UNREALIZED EQUITY UNREALIZED NON-REDEEMABLE UNREALIZED % OF ALL RATED OR LOSS LOSS SECURITIES LOSS PREFERRED STOCK LOSS INDUSTRIES BETTER ---------- ---------- ---------- ---------- --------------- ---------- ---------- -------- (IN MILLIONS) Less than six months.. $ -- $ -- --% $ -- --% $ -- --% --% Six months or greater but less than twelve months............... -- -- --% -- --% -- --% --% Twelve months or greater.............. 1 1 100% 1 100% 1 100% 100% ---- ---- ---- ---- All equity securities with a gross unrealized loss of 20% or more.......... $ 1 $ 1 100% $ 1 100% $ 1 100% 100% ==== ==== ==== ====
In connection with the equity securities impairment review process, the Company evaluated its holdings in non-redeemable preferred stock, particularly those companies in the financial services industry. The Company considered several factors including whether there has been any deterioration in credit of the issuer and the likelihood of recovery in value of non-redeemable preferred stock with a severe or an extended unrealized loss. The Company also considered whether any issuers of non-redeemable preferred stock with an unrealized loss held by the Company, regardless of credit rating, have deferred any dividend payments. No such dividend payments had been deferred. With respect to common stock holdings, the Company considered the duration and severity of the unrealized losses for securities in an unrealized loss position of 20% or more; and the duration of unrealized losses for securities in an unrealized loss position of less than 20% in an extended unrealized loss position (i.e., 12 months or greater). 44 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Future OTTIs will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), changes in credit rating, changes in collateral valuation, changes in interest rates and changes in credit spreads. If economic fundamentals and any of the above factors deteriorate, additional OTTIs may be incurred in upcoming periods. NET INVESTMENT GAINS (LOSSES) See "-- Evaluating Available-for-Sale Securities for Other-Than-Temporary Impairment" for a discussion of changes in guidance adopted April 1, 2009 that impacted how fixed maturity security OTTI losses that are charged to earnings are measured. The components of net investment gains (losses) were as follows:
YEARS ENDED DECEMBER 31, ----------------------- 2010 2009 2008 ---- ---- ---- (IN MILLIONS) Total gains (losses) on fixed maturity securities: Total OTTI losses recognized.................................................. $(9) $(18) $(16) Less: Noncredit portion of OTTI losses transferred to and recognized in other comprehensive income (loss)................................................. 5 5 -- --- ---- ---- Net OTTI losses on fixed maturity securities recognized in earnings.......... (4) (13) (16) Fixed maturity securities -- net gains (losses) on sales and disposals....... 30 9 (14) --- ---- ---- Total gains (losses) on fixed maturity securities........................ 26 (4) (30) --- ---- ---- Other net investment gains (losses): Equity securities............................................................ -- (2) -- Mortgage loans............................................................... (9) 1 (5) Real estate joint ventures................................................... (1) (2) -- Other limited partnership interests.......................................... (1) (17) -- Other gains (losses)......................................................... -- -- (1) --- ---- ---- Total net investment gains (losses)...................................... $15 $(24) $(36) === ==== ====
See "-- Related Party Investment Transactions" for discussion of affiliated net investment gains (losses) related to transfers of invested assets to affiliates. Gains (losses) from foreign currency transactions included within net investment gains (losses) were less than $1 million for the years ended December 31, 2010, 2009 and 2008, respectively. 45 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) were as shown below. Investment gains and losses on sales of securities are determined on a specific identification basis.
YEARS ENDED DECEMBER 31, YEARS ENDED DECEMBER 31, YEARS ENDED DECEMBER 31, ---------------------- ------------------------ ---------------------- 2010 2009 2008 2010 2009 2008 2010 2009 2008 ------ ------ ------ ---- ---- ---- ------ ------ ------ FIXED MATURITY SECURITIES EQUITY SECURITIES TOTAL ---------------------- ------------------------ ---------------------- (IN MILLIONS) Proceeds..................................... $3,329 $2,476 $1,202 $ 3 $ 7 $-- $3,332 $2,483 $1,202 ====== ====== ====== === === === ====== ====== ====== Gross investment gains....................... $ 52 $ 25 $ 15 $-- $-- $-- $ 52 $ 25 $ 15 ------ ------ ------ --- --- --- ------ ------ ------ Gross investment losses...................... (22) (16) (29) -- (2) -- (22) (18) (29) ------ ------ ------ --- --- --- ------ ------ ------ Total OTTI losses recognized in earnings: Credit-related............................. (4) (12) (15) -- -- -- (4) (12) (15) Other (1).................................. -- (1) (1) -- -- -- -- (1) (1) ------ ------ ------ --- --- --- ------ ------ ------ Total OTTI losses recognized in earnings.. (4) (13) (16) -- -- -- (4) (13) (16) ------ ------ ------ --- --- --- ------ ------ ------ Net investment gains (losses)................ $ 26 $ (4) $ (30) $-- $(2) $-- $ 26 $ (6) $ (30) ====== ====== ====== === === === ====== ====== ======
-------- (1)Other OTTI losses recognized in earnings include impairments on equity securities, impairments on perpetual hybrid securities classified within fixed maturity securities where the primary reason for the impairment was the severity and/or the duration of an unrealized loss position and fixed maturity securities where there is an intent to sell or it is more likely than not that the Company will be required to sell the security before recovery of the decline in estimated fair value. Fixed maturity security OTTI losses recognized in earnings related to the following sectors and industries within the U.S. and foreign corporate securities sector:
YEARS ENDED DECEMBER 31, ------------------------ 2010 2009 2008 ---- ---- ---- (IN MILLIONS) Sector: U.S. and foreign corporate securities -- by industry: Utility.............................................. $ 1 $-- $-- Finance.............................................. -- 10 13 Consumer............................................. -- 1 -- Communications....................................... -- 1 1 Other industries..................................... -- -- 2 --- --- --- Total U.S. and foreign corporate securities........ 1 12 16 RMBS.................................................. 2 1 -- CMBS.................................................. 1 -- -- --- --- --- Total.............................................. $ 4 $13 $16 === === ===
46 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) CREDIT LOSS ROLLFORWARD -- ROLLFORWARD OF THE CUMULATIVE CREDIT LOSS COMPONENT OF OTTI LOSS RECOGNIZED IN EARNINGS ON FIXED MATURITY SECURITIES STILL HELD FOR WHICH A PORTION OF THE OTTI LOSS WAS RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) The table below presents a rollforward of the cumulative credit loss component of OTTI loss recognized in earnings on fixed maturity securities still held by the Company at December 31, 2010 and 2009, respectively, for which a portion of the OTTI loss was recognized in other comprehensive income (loss):
YEARS ENDED DECEMBER 31, ------------------------ 2010 2009 ---- ---- (IN MILLIONS) Balance, at January 1,............................................................... $ 1 $-- Credit loss component of OTTI loss not reclassified to other comprehensive income (loss) in the cumulative effect transition adjustment.............................. -- -- Additions: Initial impairments -- credit loss OTTI recognized on securities not previously impaired.......................................................................... 1 1 Additional impairments -- credit loss OTTI recognized on securities previously impaired.......................................................................... -- -- Reductions: Due to sales (maturities, pay downs or prepayments) during the period of securities previously credit loss OTTI impaired.............................................. -- -- Due to securities impaired to net present value of expected future cash flows........ (1) -- Due to increases in cash flows -- accretion of previous credit loss OTTI............. -- -- --- --- Balance, at December 31,............................................................. $ 1 $ 1 === ===
NET INVESTMENT INCOME The components of net investment income were as follows:
YEARS ENDED DECEMBER 31, ----------------------- 2010 2009 2008 ---- ---- ---- (IN MILLIONS) Investment income: Fixed maturity securities......................... $430 $332 $268 Equity securities................................. -- -- 1 Mortgage loans.................................... 53 25 23 Policy loans...................................... 4 3 2 Real estate joint ventures........................ (2) (3) -- Other limited partnership interests............... 52 -- (23) Cash, cash equivalents and short-term investments. (2) 3 9 ---- ---- ---- Subtotal......................................... 535 360 280 Less: Investment expenses......................... 15 11 27 ---- ---- ---- Net investment income............................ $520 $349 $253 ==== ==== ====
Affiliated investment expenses, included in the table above, were $8 million, $4 million and $2 million for the years ended December 31, 2010, 2009 and 2008, respectively. See "-- Related Party Investment Transactions" for discussion of affiliated net investment income included in the table above. 47 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) SECURITIES LENDING The Company participates in securities lending programs whereby blocks of securities, which are included in fixed maturity securities and short-term investments, are loaned to third parties, primarily brokerage firms and commercial banks. The Company generally obtains collateral, generally cash, in an amount equal to 102% of the estimated fair value of the securities loaned, which is obtained at the inception of a loan and maintained at a level greater than or equal to 100% for the duration of the loan. Securities loaned under such transactions may be sold or repledged by the transferee. The Company is liable to return to its counterparties the cash collateral under its control. These transactions are treated as financing arrangements and the associated liability is recorded at the amount of the cash received. Elements of the securities lending programs are presented below at:
DECEMBER 31, ------------- 2010 2009 ------ ------ (IN MILLIONS) Securities on loan: Amortized cost.................................. $1,157 $1,580 Estimated fair value............................ $1,175 $1,533 Aging of cash collateral liability: Open(1)......................................... $ 185 $ 29 Less than thirty days........................... 504 1,044 Thirty days or greater but less than sixty days. 78 293 Sixty days or greater but less than ninety days. 205 -- Ninety days or greater.......................... 220 214 ------ ------ Total cash collateral liability............... $1,192 $1,580 ====== ====== Reinvestment portfolio -- estimated fair value... $1,180 $1,538 ====== ======
-------- (1)Open -- meaning that the related loaned security could be returned to the Company on the next business day requiring the Company to immediately return the cash collateral. The estimated fair value of the securities on loan related to the cash collateral on open at December 31, 2010 was $181 million, of which $120 million were U.S. Treasury and agency securities which, if put to the Company, can be immediately sold to satisfy the cash requirements. The remainder of the securities on loan were primarily U.S. Treasury and agency securities, and very liquid RMBS. The reinvestment portfolio acquired with the cash collateral consisted principally of fixed maturity securities (including U.S. corporate, U.S. Treasury and agency, ABS, RMBS and CMBS). 48 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) INVESTED ASSETS ON DEPOSIT AND PLEDGED AS COLLATERAL The invested assets on deposit and invested assets pledged as collateral are presented in the table below. The amounts presented in the table below are at estimated fair value for fixed maturity securities.
DECEMBER 31, ------------ 2010 2009 ---- ---- (IN MILLIONS) Invested assets on deposit: Regulatory agencies(1)....................................... $ 6 $ 6 Invested assets pledged as collateral: Derivative transactions(2)................................... 43 5 --- --- Total invested assets on deposit and pledged as collateral. $49 $11 === ===
-------- (1)The Company has investment assets on deposit with regulatory agencies consisting primarily of fixed maturity securities. (2)Certain of the Company's invested assets are pledged as collateral for various derivative transactions as described in Note 3. See also "-- Securities Lending" for the amount of the Company's cash received from and due back to counterparties pursuant to the Company's securities lending program. MORTGAGE LOANS Mortgage loans are summarized as follows at:
DECEMBER 31, ------------------------------ 2010 2009 -------------- -------------- CARRYING % OF CARRYING % OF VALUE TOTAL VALUE TOTAL -------- ----- -------- ----- (IN MILLIONS) Mortgage loans: Commercial mortgage loans... $1,002 85.3% $465 76.9% Agricultural mortgage loans. 185 15.7 143 23.6 ------ ----- ---- ----- Subtotal.................. 1,187 101.0 608 100.5 Valuation allowances........ (12) (1.0) (3) (0.5) ------ ----- ---- ----- Total mortgage loans, net. $1,175 100.0% $605 100.0% ====== ===== ==== =====
See "-- Related Party Investment Transactions" for discussion of affiliated loans included in the table above. The carrying value of such loans was $119 million and $120 million at December 31, 2010 and 2009, respectively. Concentration of Credit Risk -- The Company diversifies its mortgage loan portfolio by both geographic region and property type to reduce the risk of concentration. The Company's commercial and agricultural mortgage loans are collateralized by properties primarily located in the U.S. The carrying value of the Company's commercial and agricultural mortgage loans located in California, New York and Illinois were 22%, 20% and 7%, respectively, of total mortgage loans at December 31, 2010. Additionally, the Company manages risk when originating commercial and agricultural mortgage loans by generally lending only up to 75% of the estimated fair value of the underlying real estate. 49 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The following tables present the recorded investment in mortgage loans, by portfolio segment, by method of evaluation of credit loss, and the related valuation allowances, by type of credit loss, at:
DECEMBER 31, ------------------------------------ 2010 2009 2010 2009 2010 2009 ------ ---- ---- ---- ------ ---- COMMERCIAL AGRICULTURAL TOTAL ----------- ------------ ----------- (IN MILLIONS) Mortgage loans: Evaluated individually for credit losses..... $ -- $ -- $ -- $ -- $ -- $ -- Evaluated collectively for credit losses..... 1,002 465 185 143 1,187 608 ------ ---- ---- ---- ------ ---- Total mortgage loans....................... 1,002 465 185 143 1,187 608 ------ ---- ---- ---- ------ ---- Valuation allowances: Specific credit losses....................... -- -- -- -- -- -- Non-specifically identified credit losses.... 12 3 -- -- 12 3 ------ ---- ---- ---- ------ ---- Total valuation allowances................. 12 3 -- -- 12 3 ------ ---- ---- ---- ------ ---- Mortgage loans, net of valuation allowance. $ 990 $462 $185 $143 $1,175 $605 ====== ==== ==== ==== ====== ====
The following tables present the changes in the valuation allowance, by portfolio segment:
MORTGAGE LOAN VALUATION ALLOWANCES --------------------------------- COMMERCIAL AGRICULTURAL TOTAL ---------- ------------ ----- (IN MILLIONS) Balance at January 1, 2008...... $ 2 $-- $ 2 Provision (release)............ 5 -- 5 Charge-offs, net of recoveries. (3) -- (3) --- --- --- Balance at December 31, 2008.... 4 -- 4 Provision (release)............ 2 -- 2 Charge-offs, net of recoveries. (3) -- (3) --- --- --- Balance at December 31, 2009.... 3 -- 3 Provision (release)............ 9 -- 9 Charge-offs, net of recoveries. -- -- -- --- --- --- Balance at December 31, 2010.... $12 $-- $12 === === ===
50 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Commercial Mortgage Loans -- by Credit Quality Indicators with Estimated Fair Value: Presented below for the commercial mortgage loans is the recorded investment, prior to valuation allowances, by the indicated loan-to-value ratio categories and debt service coverage ratio categories and estimated fair value of such mortgage loans by the indicated loan-to-value ratio categories at:
DECEMBER 31, 2010 ----------------------------------------------------------- RECORDED INVESTMENT ------------------------------------------ DEBT SERVICE COVERAGE RATIOS ----------------------------- ESTIMATED % OF FAIR % OF > 1.20X 1.00X - 1.20X < 1.00X TOTAL TOTAL VALUE TOTAL ------- ------------- ------- ------ ----- --------- ----- (IN MILLIONS) (IN MILLIONS) Loan-to-value ratios: Less than 65%......... $722 $ -- $30 $ 752 75.0% $ 797 75.5% 65% to 75%............ 142 10 25 177 17.7 186 17.6 76% to 80%............ 14 -- -- 14 1.4 15 1.4 Greater than 80%...... 32 27 -- 59 5.9 58 5.5 ---- ---- --- ------ ----- ------ ----- Total................ $910 $ 37 $55 $1,002 100.0% $1,056 100.0% ==== ==== === ====== ===== ====== =====
Agricultural Mortgage Loans -- by Credit Quality Indicator: The recorded investment in agricultural mortgage loans, prior to valuation allowances, by credit quality indicator, was at:
DECEMBER 31, 2010 -------------------------- AGRICULTURAL MORTGAGE LOANS -------------------------- RECORDED INVESTMENT % OF TOTAL ---------- ---------- (IN MILLIONS) Loan-to-value ratios: Less than 65%......... $185 100.0% ---- ----- Total................ $185 100.0% ==== =====
Past Due, Accrual Status and Impaired Mortgage Loans. The Company has a high quality, well performing mortgage loan portfolio with 100% of all mortgage loans classified as performing at December 31, 2010. The Company had no impaired mortgage loans, no loans 90 days or more past due, no loans in non-accrual status and no loans in foreclosure at both December 31, 2010 and 2009. The Company's average investment in impaired mortgage loans was $9 million for the year ended December 31, 2008. The Company did not recognize interest income on impaired mortgage loans during the years ended December 31, 2010, 2009 and 2008. REAL ESTATE JOINT VENTURES Real estate joint ventures were categorized as follows:
DECEMBER 31, ------------------------------ 2010 2009 -------------- -------------- CARRYING % OF CARRYING % OF VALUE TOTAL VALUE TOTAL -------- ----- -------- ----- (IN MILLIONS) Office............................ $22 73.4% $22 75.9% Real estate private equity funds.. 7 23.3 5 17.2 Retail............................ 1 3.3 2 6.9 --- ----- --- ----- Total real estate joint ventures. $30 100.0% $29 100.0% === ===== === =====
51 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The Company's real estate joint ventures are located in the U.S., and at December 31, 2010, 74% and 3% of the Company's real estate joint ventures were located in California and Florida, respectively. Impairments of cost method real estate joint ventures were $2 million for both years ended December 31, 2010 and 2009. There were no impairments of real estate joint ventures for the year ended December 31, 2008. OTHER LIMITED PARTNERSHIP INTERESTS The carrying value of other limited partnership interests (which primarily represent ownership interests in pooled investment funds that principally make private equity investments in companies in the U.S. and overseas) was $456 million and $282 million at December 31, 2010 and 2009, respectively. Included within other limited partnership interests were $105 million and $54 million at December 31, 2010 and 2009, respectively, of investments in hedge funds. Impairments of other limited partnership interests, principally cost method other limited partnership interests, were $1 million and $17 million for the years ended December 31, 2010 and 2009, respectively. There were no impairments of cost method other limited partnership interests for the year ended December 31, 2008. COLLECTIVELY SIGNIFICANT EQUITY METHOD INVESTMENTS The Company holds investments in real estate joint ventures, real estate funds and other limited partnership interests consisting of leveraged buy-out funds, hedge funds, private equity funds, joint ventures and other funds. The portion of these investments accounted for under the equity method had a carrying value of $472 million as of December 31, 2010. The Company's maximum exposure to loss related to these equity method investments is limited to the carrying value of these investments plus unfunded commitments of $399 million as of December 31, 2010. Except for certain real estate joint ventures, the Company's investments in real estate funds and other limited partnership interests are generally of a passive nature in that the Company does not participate in the management of the entities. As further described in Note 1, the Company generally records its share of earnings in its equity method investments using a three-month lag methodology and within net investment income. As of December 31, 2010, aggregate net investment income from these equity method real estate joint ventures, real estate funds and other limited partnership interests exceeded 10% of the Company's consolidated pre-tax income (loss) from continuing operations. Accordingly, the Company is providing the following aggregated summarized financial data for such equity method investments. This aggregated summarized financial data does not represent the Company's proportionate share of the assets, liabilities, or earnings of such entities. As of, and for the year ended December 31, 2010, the aggregated summarized financial data presented below reflects the latest available financial information. Aggregate total assets of these entities totaled $103.1 billion and $75.1 billion as of December 31, 2010 and 2009, respectively. Aggregate total liabilities of these entities totaled $7.4 billion and $5.2 billion as of December 31, 2010 and 2009, respectively. Aggregate net income (loss) of these entities totaled $11.0 billion, $12.1 billion and ($13.1) billion for the years ended December 31, 2010, 2009 and 2008, respectively. Aggregate net income (loss) from real estate joint ventures, real estate funds and other limited partnership interests is primarily comprised of investment income, including recurring investment income and realized and unrealized investment gains (losses). 52 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) OTHER INVESTED ASSETS The following table presents the carrying value of the Company's other invested assets by type at:
DECEMBER 31, ------------------------------ 2010 2009 -------------- -------------- CARRYING % OF CARRYING % OF VALUE TOTAL VALUE TOTAL -------- ----- -------- ----- (IN MILLIONS) Tax credit partnerships.................... $ 91 42.3% $ 2 5.4% Freestanding derivatives with positive..... fair values................................ 68 31.6 35 94.6 Leveraged leases, net of non-recourse debt. 56 26.1 -- -- ---- ----- --- ----- Total..................................... $215 100.0% $37 100.0% ==== ===== === =====
Tax credit partnerships are established for the purpose of investing in low-income housing and other social causes, where the primary return on investment is in the form of income tax credits, and are accounted for under the equity method or under the effective yield method. See Note 3 for information regarding the freestanding derivatives with positive estimated fair values. See the following section "Leveraged Leases" for the composition of leveraged leases. Leveraged Leases Investment in leveraged leases, included in other invested assets, consisted of the following:
DECEMBER 31, 2010 ----------------- (IN MILLIONS) Rental receivables, net......... $ 92 Estimated residual values....... 14 ---- Subtotal....................... 106 Unearned income................. (50) ---- Investment in leveraged leases. $ 56 ====
The Company did not have any investments in leveraged leases at December 31, 2009. The rental receivables set forth above are generally due in periodic installments. The payment periods were 22 years. For rental receivables, the Company's primary credit quality indicator is whether the rental receivable is performing or non-performing. The Company generally defines non-performing rental receivables as those that are 90 days or more past due. The determination of performing or non-performing status is assessed monthly. As of December 31, 2010, all of the rental receivables were performing. The Company's deferred income tax liability related to leveraged leases was $4 million at December 31, 2010. There was no net investment income recognized on leverage leases for the year ended December 31, 2010. SHORT-TERM INVESTMENTS The carrying value of short-term investments, which includes investments with remaining maturities of one year or less, but greater than three months, at the time of purchase was $113 million and $835 million at December 31, 2010 and 2009, respectively. The Company is exposed to concentrations of credit risk related to securities of the U.S. government and certain U.S. government agencies included within short-term investments, which were $60 million and $563 million at December 31, 2010 and 2009, respectively. 53 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) CASH EQUIVALENTS The carrying value of cash equivalents, which includes investments with an original or remaining maturity of three months or less, at the time of purchase was $221 million and $377 million at December 31, 2010 and 2009, respectively. The Company is exposed to concentrations of credit risk related to securities of the U.S. government and certain U.S. government agencies included within cash equivalents, which were $221 million and $341 million at December 31, 2010 and 2009, respectively. VARIABLE INTEREST ENTITIES The Company holds investments in certain entities that are VIEs. The following table presents the carrying amount and maximum exposure to loss relating to VIEs for which the Company holds significant variable interests but is not the primary beneficiary and which have not been consolidated at:
DECEMBER 31, --------------------------------------- 2010 2009 ------------------- ------------------- MAXIMUM MAXIMUM CARRYING EXPOSURE CARRYING EXPOSURE AMOUNT TO LOSS(1) AMOUNT TO LOSS(1) -------- ---------- -------- ---------- (IN MILLIONS) Fixed maturity securities available-for-sale: RMBS(2)...................................... $ 984 $ 984 $ -- $ -- CMBS(2)...................................... 513 513 -- -- ABS(2)....................................... 409 409 -- -- Foreign corporate securities................. 56 56 40 40 U.S. corporate securities.................... 24 24 24 24 Other limited partnership interests........... 409 763 182 278 ------ ------ ---- ---- Total...................................... $2,395 $2,749 $246 $342 ====== ====== ==== ====
---------- (1)The maximum exposure to loss relating to the fixed maturity securities available-for-sale is equal to the carrying amounts or carrying amounts of retained interests. The maximum exposure to loss relating to the other limited partnership interests is equal to the carrying amounts plus any unfunded commitments. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2)As discussed in Note 1, the Company adopted new guidance effective January 1, 2010 which eliminated the concept of a QSPE. As a result, the Company concluded it held variable interests in RMBS, CMBS and ABS. For these interests, the Company's involvement is limited to that of a passive investor. As described in Note 10, the Company makes commitments to fund partnership investments in the normal course of business. Excluding these commitments, the Company did not provide financial or other support to investees designated as VIEs during the years ended December 31, 2010, 2009 and 2008. RELATED PARTY INVESTMENT TRANSACTIONS At December 31, 2010 and 2009, the Company held $41 million and $272 million, respectively, 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 (loss) from these investments was ($2) million, $2 million and $8 million for the years ended December 31, 2010, 2009 and 2008, respectively. 54 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) In the normal course of business, the Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. Invested assets transferred to and from affiliates, inclusive of amounts related to reinsurance agreements, were as follows:
YEARS ENDED DECEMBER 31, ------------------------ 2010 2009 2008 ---- ---- ---- (IN MILLIONS) Estimated fair value of invested assets transferred to affiliates..................... $105 $ 9 $ -- Amortized cost of invested assets transferred to affiliates........................... $ 97 $ 13 $ -- Net investment gains (losses) recognized on invested assets transferred to affiliates. $ 8 $ (4) $ -- Estimated fair value of assets transferred from affiliates............................ $ 46 $155 $ --
During the year ended December 31, 2009, the Company loaned $120 million to wholly-owned real estate subsidiaries of an affiliate, Metropolitan Life Insurance Company ("MLIC"), which is included in mortgage loans. The carrying value of these loans was $119 million and $120 million at December 31, 2010 and 2009, respectively. A loan of $80 million bears interest at 7.26% and is due in quarterly principal and interest payments of $2 million through January 2020, and a loan of $40 million bears interest at 7.01% with quarterly interest only payments of $1 million through January 2020, when the principal balance is due. The loans to affiliates are secured by interests in the real estate subsidiaries, which own operating real estate with a fair value in excess of the loans. Net investment income from this investment was $9 million and less than $1 million for the years ended December 31, 2010 and 2009, respectively. 3. DERIVATIVE FINANCIAL INSTRUMENTS ACCOUNTING FOR DERIVATIVE FINANCIAL INSTRUMENTS See Note 1 for a description of the Company's accounting policies for derivative financial instruments. See Note 4 for information about the fair value hierarchy for derivatives. PRIMARY RISKS MANAGED BY DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to various risks relating to its ongoing business operations, including interest rate risk, foreign currency risk, credit risk and equity market risk. The Company uses a variety of strategies to manage these risks, including the use of derivative instruments. The following table presents the gross notional amount, estimated fair value and primary underlying risk exposure of the Company's derivative financial instruments, excluding embedded derivatives held at:
DECEMBER 31, ------------------------------------------------------- 2010 2009 --------------------------- --------------------------- ESTIMATED FAIR ESTIMATED FAIR VALUE(1) VALUE(1) PRIMARY UNDERLYING NOTIONAL ------------------ NOTIONAL ------------------ RISK EXPOSURE INSTRUMENT TYPE AMOUNT ASSETS LIABILITIES AMOUNT ASSETS LIABILITIES ------------------ -------------------------- -------- ------ ----------- -------- ------ ----------- (IN MILLIONS) Interest rate Interest rate swaps....... $ 900 $15 $25 $ 40 $ 1 $ -- Interest rate floors...... 2,000 45 -- 2,000 27 -- Interest rate caps........ 1,500 1 -- 1,000 2 -- Interest rate futures..... 780 2 3 309 1 -- Interest rate forwards.... 485 -- 48 -- -- -- Foreign currency Foreign currency swaps.... 117 2 6 55 1 3 Foreign currency forwards. 34 -- -- -- -- -- Credit Credit default swaps...... 239 3 2 163 3 3 Equity market Equity options............ 15 -- -- 6 -- -- ------ --- --- ------ --- ---- Total..................... $6,070 $68 $84 $3,573 $35 $ 6 ====== === === ====== === ====
55 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) ---------- (1)The estimated fair value of all derivatives in an asset position is reported within other invested assets in the consolidated balance sheets and the estimated fair value of all derivatives in a liability position is reported within other liabilities in the consolidated balance sheets. The following table presents the gross notional amount of derivative financial instruments by maturity at December 31, 2010:
REMAINING LIFE ------------------------------------------------------------ AFTER ONE YEAR AFTER FIVE YEARS ONE YEAR OR THROUGH FIVE THROUGH TEN AFTER TEN LESS YEARS YEARS YEARS TOTAL ----------- -------------- ---------------- --------- ------ (IN MILLIONS) Interest rate swaps....... $ -- $ 245 $ -- $655 $ 900 Interest rate floors...... -- 2,000 -- -- 2,000 Interest rate caps........ 500 1,000 -- -- 1,500 Interest rate futures..... 780 -- -- -- 780 Interest rate forwards.... 75 375 35 -- 485 Foreign currency swaps.... 5 18 49 45 117 Foreign currency forwards. 34 -- -- -- 34 Credit default swaps...... -- 239 -- -- 239 Equity options............ 15 -- -- -- 15 ------ ------ ---- ---- ------ Total.................... $1,409 $3,877 $ 84 $700 $6,070 ====== ====== ==== ==== ======
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. The Company utilizes interest rate swaps in fair value, cash flow and non-qualifying hedging relationships. The Company purchases interest rate caps and floors 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 certain instances, the Company locks in the economic impact of existing purchased caps and floors by entering into offsetting written caps and floors. The Company utilizes interest rate caps and floors in non-qualifying hedging relationships. 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 (Treasury and swap) 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 or swap curve performance. The Company utilizes exchange-traded interest rate futures in non-qualifying hedging relationships. The Company enters into interest rate forwards to buy and sell securities. The price is agreed upon at the time of the contract and payment for such a contract is made at a specified future date. The Company utilizes interest rate forwards in cash flow and non-qualifying hedging relationships. 56 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Foreign currency derivatives, including foreign currency swaps and foreign currency forwards, are used by the Company to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities 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 fixed exchange rate, generally set at inception, 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. The Company utilizes foreign currency swaps in cash flow and non-qualifying hedging relationships. In a foreign currency forward transaction, the Company agrees with another party to deliver a specified amount of an identified currency at a specified future date. The price is agreed upon at the time of the contract and payment for such a contract is made in a different currency at the specified future date. The Company utilizes foreign currency forwards in non-qualifying hedging relationships. 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 hedge 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. The Company utilizes credit default swaps in non-qualifying hedging relationships. 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. These credit default swaps are not designated as hedging instruments. Equity index options are used by the Company to hedge certain invested assets against adverse changes in equity indices. In an equity index option transaction, the Company enters into contracts to sell the equity index within a limited time at a contracted price. The contracts will be net settled in cash based on differentials in the indices at the time of exercise and the strike price. In certain instances, the Company may enter into a combination of transactions to hedge adverse changes in equity indices within a pre-determined range through the purchase and sale of options. Equity index options are included in equity options in the preceding table. The Company utilizes equity index options in non-qualifying hedging relationships. 57 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) HEDGING The following table presents the gross notional amount and estimated fair value of derivatives designated as hedging instruments by type of hedge designation at:
DECEMBER 31, ------------------------------------------------------- 2010 2009 --------------------------- --------------------------- ESTIMATED FAIR ESTIMATED FAIR VALUE VALUE NOTIONAL ------------------ NOTIONAL ------------------ DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS AMOUNT ASSETS LIABILITIES AMOUNT ASSETS LIABILITIES --------------------------------------------- -------- ------ ----------- -------- ------ ----------- (IN MILLIONS) Fair Value Hedges: Interest rate swaps.................. $ 10 $ -- $ -- $ -- $ -- $ -- ---- ---- ---- ---- ---- ---- Subtotal........................... 10 -- -- -- -- -- ---- ---- ---- ---- ---- ---- Cash Flow Hedges: Foreign currency swaps............... 76 1 3 14 -- 1 Interest rate swaps.................. 295 1 22 -- -- -- Interest rate forwards............... 485 -- 48 -- -- -- ---- ---- ---- ---- ---- ---- Subtotal........................... 856 2 73 14 -- 1 ---- ---- ---- ---- ---- ---- Total Qualifying Hedges............ $866 $ 2 $ 73 $ 14 $ -- $ 1 ==== ==== ==== ==== ==== ====
The following table presents the gross notional amount and estimated fair value of derivatives that were not designated or do not qualify as hedging instruments by derivative type at:
DECEMBER 31, ------------------------------------------------------- 2010 2009 --------------------------- --------------------------- ESTIMATED FAIR ESTIMATED FAIR VALUE VALUE DERIVATIVES NOT DESIGNATED OR NOT NOTIONAL ------------------ NOTIONAL ------------------ QUALIFYING AS HEDGING INSTRUMENTS AMOUNT ASSETS LIABILITIES AMOUNT ASSETS LIABILITIES ---------------------------------------------------- -------- ------ ----------- -------- ------ ----------- (IN MILLIONS) Interest rate swaps................................. $ 595 $14 $ 3 $ 40 $ 1 $ -- Interest rate floors................................ 2,000 45 -- 2,000 27 -- Interest rate caps.................................. 1,500 1 -- 1,000 2 -- Interest rate futures............................... 780 2 3 309 1 -- Foreign currency swaps.............................. 41 1 3 41 1 2 Foreign currency forwards........................... 34 -- -- -- -- -- Credit default swaps................................ 239 3 2 163 3 3 Equity options...................................... 15 -- -- 6 -- -- ------ --- --- ------ --- ---- Total non-designated or non-qualifying derivatives. $5,204 $66 $11 $3,559 $35 $ 5 ====== === === ====== === ====
58 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) NET DERIVATIVE GAINS (LOSSES) The components of net derivative gains (losses) were as follows:
YEARS ENDED DECEMBER 31, ------------------------ 2010 2009 2008 ---- ----- ---- (IN MILLIONS) Derivatives and hedging gains (losses) (1). $ 3 $ (75) $ 79 Embedded derivatives....................... 112 (528) 740 ---- ----- ---- Total net derivative gains (losses)....... $115 $(603) $819 ==== ===== ====
---------- (1)Includes foreign currency transaction gains (losses) on hedged items in cash flow and non-qualifying hedge relationships, which are not presented elsewhere in this note. The Company recognized insignificant net investment income from settlement payments related to qualifying hedges for the years ended December 31, 2010, 2009 and 2008. The Company recognized $20 million and $15 million of net derivative gains (losses) from settlement payments related to non-qualifying hedges for the years ended December 31, 2010 and 2009, respectively. The Company recognized insignificant net derivative gains (losses) from settlement payments related to non-qualifying hedges for the year ended December 31, 2008. FAIR VALUE HEDGES The Company designates and accounts for interest rate swaps to convert fixed rate investments to floating rate investments as fair value hedges when they have met the requirements of fair value hedging. The Company recognized insignificant amounts in net derivative gains (losses) representing the ineffective portion of all fair value hedges for the years ended December 31, 2010 and 2008. Changes in the fair value of the derivatives and the hedged items were insignificant for the years ended December 31, 2010 and 2008. The Company did not have any fair value hedges during the year ended December 31, 2009. All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. CASH FLOW HEDGES The Company designates and accounts for the following as cash flow hedges when they have met the requirements of cash flow hedging: (i) foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated investments and liabilities; (ii) interest rate forwards to lock in the price to be paid for forward purchases of investments; and (iii) interest rate swaps and interest rate forwards to hedge the forecasted purchases of fixed-rate investments. For the year ended December 31, 2010, the Company recognized insignificant amounts of net derivative gains (losses) which represented the ineffective portion of all cash flow hedges. For the years ended December 31, 2009 and 2008, the Company did not recognize any net derivative 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. In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions did not occur on the anticipated date or within two months of that date. For the years ended December 31, 2010, 2009 and 2008, there were no amounts reclassified into net derivative gains (losses) related to such discontinued cash flow hedges. At December 31, 2010 the maximum length of time over which the Company was hedging its exposure to variability in future cash flows for forecasted transactions did not exceed six years. There were no hedged forecasted transactions, other than the receipt or payment of variable interest payments, for the years ended December 31, 2009 and 2008. 59 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The following table presents the components of accumulated other comprehensive income (loss), before income tax, related to cash flow hedges:
YEARS ENDED DECEMBER 31, ----------------------- 2010 2009 2008 ---- ---- ---- (IN MILLIONS) Accumulated other comprehensive income (loss), balance at January 1,..................... $ (1) $(2) $(3) Gains (losses) deferred in other comprehensive income (loss) on the effective portion of cash flow hedges....................................................................... (70) 7 1 Amounts reclassified to net derivative gains (losses).................................... (2) (6) -- ---- --- --- Accumulated other comprehensive income (loss), balance at December 31,................... $(73) $(1) $(2) ==== === ===
At December 31, 2010, $1 million of deferred net gains on derivatives in accumulated other comprehensive income (loss) was expected to be reclassified to earnings within the next 12 months. The following table presents the effects of derivatives in cash flow hedging relationships on the consolidated statements of operations and the consolidated statements of stockholder's equity for the years ended December 31, 2010, 2009 and 2008:
AMOUNT AND LOCATION OF GAINS (LOSSES) RECLASSIFIED FROM AMOUNT OF GAINS ACCUMULATED OTHER (LOSSES) DEFERRED COMPREHENSIVE INCOME IN ACCUMULATED (LOSS) INTO INCOME (LOSS) OTHER COMPREHENSIVE ------------------------- DERIVATIVES IN CASH FLOW INCOME (LOSS) ON NET DERIVATIVE HEDGING RELATIONSHIPS DERIVATIVES GAINS (LOSSES) -------------------------------------- ------------------- ------------------------- (IN MILLIONS) FOR THE YEAR ENDED DECEMBER 31, 2010: Interest rate swaps.................. $(21) $ -- Foreign currency swaps............... (1) -- Interest rate forwards............... (48) 2 ---- ---- Total.............................. $(70) $ 2 ==== ==== FOR THE YEAR ENDED DECEMBER 31, 2009: Foreign currency swaps............... $ (1) $ -- Interest rate forwards............... 8 6 ---- ---- Total.............................. $ 7 $ 6 ==== ==== FOR THE YEAR ENDED DECEMBER 31, 2008: Foreign currency swaps............... $ 1 $ -- ==== ====
NON-QUALIFYING DERIVATIVES AND DERIVATIVES FOR PURPOSES OTHER THAN HEDGING The Company enters into the following derivatives that do not qualify for hedge accounting or for purposes other than hedging: (i) interest rate swaps, caps and floors, and interest rate futures to economically hedge its exposure to interest rates; (ii) foreign currency forwards to economically hedge its exposure to adverse movements in exchange rates; (iii) interest rate forwards to buy and sell securities to economically hedge its exposure to interest rates; (iv) foreign currency swaps to economically hedge its exposure to adverse movements in exchange rates; (v) credit default swaps to economically hedge exposure to adverse movements in credit; 60 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) (vi) credit default swaps to synthetically create investments; and (vii) equity options to economically hedge certain invested assets against adverse changes in equity indices. The following tables present the amount and location of gains (losses) recognized in income for derivatives that were not designated or qualifying as hedging instruments:
NET NET DERIVATIVE INVESTMENT GAINS (LOSSES) INCOME(1) -------------- ---------- (IN MILLIONS) FOR THE YEAR ENDED DECEMBER 31, 2010: Interest rate swaps................... $ (4) $ -- Interest rate floors.................. 17 -- Interest rate caps.................... (2) -- Interest rate futures................. (28) -- Foreign currency swaps................ (1) -- Foreign currency forwards............. (2) -- Equity options........................ -- (1) Interest rate forwards................ 1 -- Credit default swaps.................. 1 -- ---- ---- Total................................ $(18) $ (1) ==== ==== FOR THE YEAR ENDED DECEMBER 31, 2009: Interest rate swaps................... $ 1 $ -- Interest rate floors.................. (86) -- Interest rate caps.................... 1 -- Interest rate futures................. (1) -- Foreign currency swaps................ (9) -- Credit default swaps.................. (2) -- ---- ---- Total................................ $(96) $ -- ==== ==== FOR THE YEAR ENDED DECEMBER 31, 2008.. $ 79 $ -- ==== ====
---------- (1)Changes in estimated fair value related to economic hedges of equity method investments in joint ventures. CREDIT DERIVATIVES In connection with synthetically created investment transactions, the Company writes credit default swaps for which it receives a premium to insure credit risk. Such credit derivatives are included within the non-qualifying derivatives and derivatives for purposes other than hedging table. If a credit event occurs, as defined by the contract, generally the contract will require the Company to pay the counterparty the specified swap notional amount in exchange for the delivery of par quantities of the referenced credit obligation. The Company's maximum amount at risk, assuming the value of all referenced credit obligations is zero, was $185 million and $115 million at December 31, 2010 and 2009, respectively. The Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current fair value of the credit default swaps. At both December 31, 2010 and 2009, the Company would have received $2 million to terminate all of these contracts. 61 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The following table presents the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at December 31, 2010 and 2009:
DECEMBER 31, -------------------------------------------------------------------------------- 2010 2009 ----------------------------------------- -------------------------------------- MAXIMUM MAXIMUM ESTIMATED AMOUNT ESTIMATED AMOUNT OF FAIR VALUE OF FUTURE FAIR VALUE FUTURE WEIGHTED OF CREDIT PAYMENTS UNDER WEIGHTED OF CREDIT PAYMENTS UNDER AVERAGE RATING AGENCY DESIGNATION OF REFERENCED DEFAULT CREDIT DEFAULT AVERAGE YEARS DEFAULT CREDIT DEFAULT YEARS TO CREDIT OBLIGATIONS (1) SWAPS SWAPS (2) TO MATURITY (3) SWAPS SWAPS (2) MATURITY (3) --------------------------------------------- ---------- -------------- --------------- ---------- -------------- ------------ (IN MILLIONS) Aaa/Aa/A Single name credit default swaps (corporate). $ -- $ 23 4.1 $ -- $ 3 4.0 Credit default swaps referencing indices..... 1 59 3.3 2 112 3.7 ---- ---- ---- ---- Subtotal..................................... 1 82 3.5 2 115 3.7 ---- ---- ---- ---- Baa Credit default swaps referencing indices..... 1 103 5.0 -- -- -- ---- ---- ---- ---- Total........................................ $ 2 $185 4.4 $ 2 $115 3.7 ==== ==== ==== ====
---------- (1)The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody's, S&P and Fitch. If no rating is available from a rating agency, then an internally developed rating is used. (2)Assumes the value of the referenced credit obligations is zero. (3)The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts. CREDIT RISK ON FREESTANDING DERIVATIVES 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 net positive estimated fair value of derivative contracts at the reporting date after taking into consideration the existence of netting agreements and any collateral received pursuant to credit support annexes. 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. See Note 4 for a description of the impact of credit risk on the valuation of derivative instruments. The Company enters into various collateral arrangements, which require both the pledging and accepting of collateral in connection with its derivative instruments. At December 31, 2010 and 2009, the Company was obligated to return cash collateral under its control of $54 million and $28 million, respectively. This unrestricted cash collateral is included in cash and cash equivalents or in short-term investments and the obligation to return it is included in payables for collateral under securities loaned and other transactions in the consolidated balance sheets. The Company's collateral arrangements for its over-the-counter derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the fair value of that counterparty's derivatives reaches a pre-determined threshold. Certain of these 62 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) arrangements also include credit-contingent provisions that provide for a reduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the credit ratings of the Company and/or the counterparty. In addition, certain of the Company's netting agreements for derivative instruments contain provisions that require the Company to maintain a specific investment grade credit rating from at least one of the major credit rating agencies. If the Company's credit ratings were to fall below that specific investment grade credit rating, it would be in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full overnight collateralization on derivative instruments that are in a net liability position after considering the effect of netting agreements. The following table presents the estimated fair value of the Company's over-the-counter derivatives that are in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged. The table also presents the incremental collateral that the Company would be required to provide if there was a one notch downgrade in the Company's credit rating at the reporting date or if the Company's credit rating sustained a downgrade to a level that triggered full overnight collateralization or termination of the derivative position at the reporting date. Derivatives that are not subject to collateral agreements are not included in the scope of this table.
ESTIMATED FAIR VALUE FAIR VALUE OF INCREMENTAL COLLATERAL OF COLLATERAL PROVIDED: PROVIDED UPON: ----------------------- ---------------------------------------- DOWNGRADE IN THE COMPANY'S CREDIT RATING ONE NOTCH TO A LEVEL THAT TRIGGERS ESTIMATED DOWNGRADE FULL OVERNIGHT FAIR VALUE (1) OF IN THE COLLATERALIZATION OR DERIVATIVES IN NET FIXED MATURITY COMPANY'S TERMINATION LIABILITY POSITION SECURITIES (2) CREDIT RATING OF THE DERIVATIVE POSITION ------------------ ----------------------- ------------- -------------------------- (IN MILLIONS) December 31, 2010. $69 $ 37 $ 11 $46 December 31, 2009. $ 5 $ -- $ -- $ 5
---------- (1)After taking into consideration the existence of netting agreements. (2)Included in fixed maturity securities in the consolidated balance sheets. The counterparties are permitted by contract to sell or repledge this collateral. At both December 31, 2010 and 2009, the Company did not provide any cash collateral. Without considering the effect of netting agreements, the estimated fair value of the Company's over-the-counter derivatives with credit-contingent provisions that were in a gross liability position at December 31, 2010 was $81 million. At December 31, 2010, the Company provided $37 million of securities collateral in connection with these derivatives. In the unlikely event that both: (i) the Company's credit rating was downgraded to a level that triggers full overnight collateralization or termination of all derivative positions; and (ii) the Company's netting agreements were deemed to be legally unenforceable, then the additional collateral that the Company would be required to provide to its counterparties in connection with its derivatives in a gross liability position at December 31, 2010 would be $44 million. This amount does not consider gross derivative assets of $12 million for which the Company has the contractual right of offset. The Company also has exchange-traded futures, which may require the pledging of collateral. At both December 31, 2010 and 2009, the Company did not pledge any securities collateral for exchange-traded futures. At December 31, 2010 and 2009, the Company provided cash collateral for exchange-traded futures of $6 million and $5 million, respectively, which is included in premiums, reinsurance and other receivables. 63 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 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 principally include: variable annuities with guaranteed minimum benefits, including GMWBs, GMABs and certain GMIBs; affiliated reinsurance contracts of guaranteed minimum benefits related to GMWBs, GMABs and certain GMIBs; and ceded reinsurance written on a funds withheld basis. The following table presents the estimated fair value of the Company's embedded derivatives at:
DECEMBER 31, ----------- 2010 2009 ---- ---- (IN MILLIONS) Net embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits.......................... $930 $724 Net embedded derivatives within liability host contracts: Direct guaranteed minimum benefits......................... $174 $199 Other...................................................... 5 (11) ---- ---- Net embedded derivatives within liability host contracts. $179 $188 ==== ====
The following table presents changes in estimated fair value related to embedded derivatives:
YEARS ENDED DECEMBER 31, ------------------------ 2010 2009 2008 ---- ----- ---- (IN MILLIONS) Net derivative gains (losses) (1) (2). $112 $(528) $740
---------- (1)The valuation of direct guaranteed minimum benefits includes an adjustment for nonperformance risk. Included in net derivative gains (losses), in connection with this adjustment, were gains (losses) of ($140) million, ($432) million and $585 million, for the years ended December 31, 2010, 2009 and 2008, respectively. In addition, the valuation of ceded guaranteed minimum benefits includes an adjustment for nonperformance risk. Included in net derivative gains (losses), in connection with this adjustment, were gains (losses) of $210 million, $816 million and ($1,144) million, for the years ended December 31, 2010, 2009 and 2008, respectively. The net derivative gains (losses) for the year ended December 31, 2010 included a gain of $225 million relating to a refinement for estimating nonperformance risk in fair value measurements implemented at June 30, 2010. See Note 4. (2)See Note 7 for discussion of affiliated net derivative gains (losses) included in the table above. 4. FAIR VALUE Considerable judgment is often required in interpreting market data to develop estimates of fair value and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. 64 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) ASSETS AND LIABILITIES MEASURED AT FAIR VALUE RECURRING FAIR VALUE MEASUREMENTS The assets and liabilities measured at estimated fair value on a recurring basis were determined as described below. These estimated fair values and their corresponding placement in the fair value hierarchy are summarized as follows:
DECEMBER 31, 2010 ----------------------------------------------------------- FAIR VALUE MEASUREMENTS AT REPORTING DATE USING ------------------------------------------------- QUOTED PRICES IN ACTIVE MARKETS FOR SIGNIFICANT TOTAL IDENTICAL ASSETS SIGNIFICANT OTHER UNOBSERVABLE ESTIMATED AND LIABILITIES OBSERVABLE INPUTS INPUTS FAIR (LEVEL 1) (LEVEL 2) (LEVEL 3) VALUE ------------------ ----------------- ------------ --------- (IN MILLIONS) ASSETS Fixed maturity securities: U.S. corporate securities.................................. $ -- $ 3,210 $ 162 $ 3,372 Foreign corporate securities............................... -- 1,399 91 1,490 U.S. Treasury and agency securities........................ 495 648 -- 1,143 RMBS....................................................... -- 969 15 984 State and political subdivision securities................. -- 630 -- 630 CMBS....................................................... -- 506 7 513 ABS........................................................ -- 328 81 409 Foreign government securities.............................. -- 131 4 135 ---- ------- ------ ------- Total fixed maturity securities.......................... 495 7,821 360 8,676 ---- ------- ------ ------- Equity securities: Common stock............................................... 2 -- -- 2 Non-redeemable preferred stock............................. -- -- 1 1 ---- ------- ------ ------- Total equity securities.................................. 2 -- 1 3 ---- ------- ------ ------- Short-term investments (1)................................... 20 82 6 108 Derivative assets: (2) Interest rate contracts...................................... 2 61 -- 63 Foreign currency contracts................................... -- 2 -- 2 Credit contracts............................................. -- 2 1 3 ---- ------- ------ ------- Total derivative assets.................................... 2 65 1 68 Net embedded derivatives within asset host contracts (3)..... -- -- 930 930 Separate account assets (4).................................. -- 42,435 -- 42,435 ---- ------- ------ ------- Total assets............................................... $519 $50,403 $1,298 $52,220 ==== ======= ====== ======= LIABILITIES Derivative liabilities: (2) Interest rate contracts...................................... $ 3 $ 25 $ 48 $ 76 Foreign currency contracts................................... -- 6 -- 6 Credit contracts............................................. -- 2 -- 2 ---- ------- ------ ------- Total derivative liabilities............................... 3 33 48 84 Net embedded derivatives within liability host contracts (3). -- -- 179 179 ---- ------- ------ ------- Total liabilities.......................................... $ 3 $ 33 $ 227 $ 263 ==== ======= ====== =======
65 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 2009 ----------------------------------------------------------- FAIR VALUE MEASUREMENTS AT REPORTING DATE USING ------------------------------------------------- QUOTED PRICES IN ACTIVE MARKETS FOR SIGNIFICANT TOTAL IDENTICAL ASSETS SIGNIFICANT OTHER UNOBSERVABLE ESTIMATED AND LIABILITIES OBSERVABLE INPUTS INPUTS FAIR (LEVEL 1) (LEVEL 2) (LEVEL 3) VALUE ------------------ ----------------- ------------ --------- (IN MILLIONS) ASSETS Fixed maturity securities: U.S. corporate securities.................................. $ -- $ 2,806 $ 139 $ 2,945 Foreign corporate securities............................... -- 897 70 967 U.S. Treasury and agency securities........................ 340 519 -- 859 RMBS....................................................... -- 1,357 9 1,366 State and political subdivision securities................. -- 350 1 351 CMBS....................................................... -- 711 1 712 ABS........................................................ -- 450 59 509 Foreign government securities.............................. -- 96 -- 96 ---- ------- ------ ------- Total fixed maturity securities.......................... 340 7,186 279 7,805 ---- ------- ------ ------- Equity securities: Common stock............................................... 2 -- -- 2 Non-redeemable preferred stock............................. -- -- 1 1 ---- ------- ------ ------- Total equity securities.................................. 2 -- 1 3 ---- ------- ------ ------- Short-term investments (1)................................... 476 359 -- 835 Derivative assets (2)........................................ 1 31 3 35 Net embedded derivatives within asset host contracts (3)..... -- -- 724 724 Separate account assets (4).................................. -- 29,958 -- 29,958 ---- ------- ------ ------- Total assets............................................... $819 $37,534 $1,007 $39,360 ==== ======= ====== ======= LIABILITIES Derivative liabilities (2)................................... $ -- $ 6 $ -- $ 6 Net embedded derivatives within liability host contracts (3). -- -- 188 188 ---- ------- ------ ------- Total liabilities.......................................... $ -- $ 6 $ 188 $ 194 ==== ======= ====== =======
---------- (1)Short-term investments as presented in the tables above differ from the amounts presented in the consolidated balance sheets because certain short-term investments are not measured at estimated fair value (e.g., time deposits, etc.), and therefore are excluded from the tables presented above. (2)Derivative assets are presented within other invested assets in the consolidated balance sheets and derivative liabilities are presented within other liabilities in the consolidated balance sheets. The amounts are presented gross in the tables above to reflect the presentation in the consolidated balance sheets, but are presented net for purposes of the rollforward in the Fair Value Measurements Using Significant Unobservable Inputs (Level 3) tables which follow. (3)Net embedded derivatives within asset host contracts are presented within premiums, reinsurance and other receivables in the consolidated balance sheets. Net embedded derivatives within liability host contracts are presented in the consolidated balance sheets within policyholder account balances and other liabilities. (4)Separate account assets are measured at estimated fair value. Investment performance related to separate account assets is fully offset by corresponding amounts credited to contractholders whose liability is reflected within separate account liabilities. Separate account liabilities are set equal to the estimated fair value of separate account assets. 66 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The methods and assumptions used to estimate the fair value of financial instruments are summarized as follows: Fixed Maturity Securities, Equity Securities and Short-term Investments When available, the estimated fair value of the Company's fixed maturity and equity securities are based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company's securities holdings and valuation of these securities does not involve management judgment. When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies. The market standard valuation methodologies utilized include: discounted cash flow methodologies, matrix pricing or other similar techniques. The inputs in applying these market standard valuation methodologies include, but are not limited to: interest rates, credit standing of the issuer or counterparty, industry sector of the issuer, coupon rate, call provisions, sinking fund requirements, maturity and management's assumptions regarding estimated duration, liquidity and estimated future cash flows. Accordingly, the estimated fair values are based on available market information and management's judgments about financial instruments. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Such observable inputs include benchmarking prices for similar assets in active markets, quoted prices in markets that are not active and observable yields and spreads in the market. When observable inputs are not available, the market standard valuation methodologies for determining the estimated fair value of certain types of securities that trade infrequently, and therefore have little or no price transparency, rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from or corroborated by observable market data. These unobservable inputs can be based in large part on management judgment or estimation and cannot be supported by reference to market activity. Even though unobservable, these inputs are assumed to be consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances. The use of different methodologies, assumptions and inputs may have a material effect on the estimated fair values of the Company's securities holdings. Derivatives The estimated fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives or through the use of pricing models for over-the-counter derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that are assumed to be consistent with what other market participants would use when pricing the instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk (including the counterparties to the contract), volatility, liquidity and changes in estimates and assumptions used in the pricing models. The significant inputs to the pricing models for most over-the-counter derivatives are inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Significant inputs that are observable generally include: interest rates, foreign currency exchange rates, interest rate curves, credit curves and volatility. However, certain over-the-counter derivatives may rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from or corroborated by observable market data. Significant inputs that are unobservable generally include: independent broker quotes, credit correlation assumptions, references to emerging market currencies and inputs that are outside the observable portion of the interest rate curve, credit curve, volatility or other relevant market measure. These unobservable inputs may 67 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and are assumed to be consistent with what other market participants would use when pricing such instruments. The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all over-the-counter derivatives, and any potential credit adjustment is based on the net exposure by counterparty after taking into account the effects of netting agreements and collateral arrangements. The Company values its derivative positions using the standard swap curve which includes a spread to the risk free rate. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with the standard swap curve. As the Company and its significant derivative counterparties consistently execute trades at such pricing levels, additional credit risk adjustments are not currently required in the valuation process. The Company's ability to consistently execute at such pricing levels is in part due to the netting agreements and collateral arrangements that are in place with all of its significant derivative counterparties. The evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period. Most inputs for over-the-counter derivatives are mid market inputs but, in certain cases, bid level inputs are used when they are deemed more representative of exit value. Market liquidity, as well as the use of different methodologies, assumptions and inputs, may have a material effect on the estimated fair values of the Company's derivatives and could materially affect net income. Embedded Derivatives Within Asset and Liability Host Contracts Embedded derivatives principally include certain direct and ceded variable annuity guarantees, and embedded derivatives related to funds withheld on ceded reinsurance. Embedded derivatives are recorded in the consolidated financial statements at estimated fair value with changes in estimated fair value reported in net income. The Company issues certain variable annuity products with guaranteed minimum benefit guarantees. GMWBs, GMABs and certain GMIBs are embedded derivatives, which are measured at estimated fair value separately from the host variable annuity contract, with changes in estimated fair value reported in net derivative gains (losses). These embedded derivatives are classified within policyholder account balances in the consolidated balance sheets. The fair value of these guarantees is estimated using the present value of future benefits minus the present value of future fees using actuarial and capital market assumptions related to the projected cash flows over the expected lives of the contracts. A risk neutral valuation methodology is used under which the cash flows from the guarantees are projected under multiple capital market scenarios using observable risk free rates, currency exchange rates and observable and estimated implied volatilities. The valuation of these guarantee liabilities includes adjustments for nonperformance risk and for a risk margin related to non-capital market inputs. Both of these adjustments are captured as components of the spread which, when combined with the risk free rate, is used to discount the cash flows of the liability for purposes of determining its fair value. The nonperformance adjustment is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife's debt, including related credit default swaps. These observable spreads are then adjusted, as necessary, to reflect the priority of these liabilities and the claims paying ability of the issuing insurance subsidiaries compared to MetLife. Risk margins are established to capture the non-capital market risks of the instrument which represent the additional compensation a market participant would require to assume the risks related to the uncertainties of such actuarial assumptions as annuitization, premium persistency, partial withdrawal and surrenders. The establishment of risk margins requires the use of significant management judgment, including assumptions of the 68 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) amount and cost of capital needed to cover the guarantees. These guarantees may be more costly than expected in volatile or declining equity markets. Market conditions including, but not limited to, changes in interest rates, equity indices, market volatility and foreign currency exchange rates; changes in nonperformance risk; and variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income. The Company ceded the risk associated with certain of the GMIB, GMAB and GMWB guarantees described above to an affiliated reinsurance company that are also accounted for as embedded derivatives. In addition to ceding risks associated with guarantees that are accounted for as embedded derivatives, the Company also cedes, to the same affiliated reinsurance company, certain directly written GMIB guarantees that are accounted for as insurance (i.e. not as embedded derivatives) but where the reinsurance contract contains an embedded derivative. These embedded derivatives are included in premiums, reinsurance and other receivables in the consolidated balance sheets with changes in estimated fair value reported in net derivative gains (losses). The value of the embedded derivatives on these ceded risks is determined using a methodology consistent with that described previously for the guarantees directly written by the Company. Because the direct guarantee is not accounted for at fair value, significant fluctuations in net income may occur as the change in fair value of the embedded derivative on the ceded risk is being recorded in net income without a corresponding and offsetting change in fair value of the direct guarantee. As part of its regular review of critical accounting estimates, the Company periodically assesses inputs for estimating nonperformance risk (commonly referred to as "own credit") in fair value measurements. During the second quarter of 2010, the Company completed a study that aggregated and evaluated data, including historical recovery rates of insurance companies, as well as policyholder behavior observed over the past two years as the recent financial crisis evolved. As a result, at the end of the second quarter of 2010, the Company refined the way in which it incorporates expected recovery rates into the nonperformance risk adjustment for purposes of estimating the fair value of investment-type contracts and embedded derivatives within insurance contracts. The Company recognized a gain of $70 million, net of DAC and income tax, relating to implementing the refinement at June 30, 2010. The estimated fair value of the embedded derivatives within funds withheld related to certain ceded reinsurance is determined based on the change in estimated fair value of the underlying assets held by the Company in a reference portfolio backing the funds withheld liability. The estimated fair value of the underlying assets is determined as described above in "-- Fixed Maturity Securities, Equity Securities and Short-term Investments." The estimated fair value of these embedded derivatives is included, along with their funds withheld hosts, in other liabilities in the consolidated balance sheets with changes in estimated fair value recorded in net derivative gains (losses). Changes in the credit spreads on the underlying assets, interest rates and market volatility may result in significant fluctuations in the estimated fair value of these embedded derivatives that could materially affect net income. Separate Account Assets Separate account assets are carried at estimated fair value and reported as a summarized total on the consolidated balance sheets. The estimated fair value of separate account assets is based on the estimated fair value of the underlying assets owned by the separate account. Assets within the Company's separate accounts consist of mutual funds. See "-- Valuation Techniques and Inputs by Level Within the Three-Level Fair Value Hierarchy by Major Classes of Assets and Liabilities" below for a discussion of the methods and assumptions used to estimate the fair value of these financial instruments. 69 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) VALUATION TECHNIQUES AND INPUTS BY LEVEL WITHIN THE THREE-LEVEL FAIR VALUE HIERARCHY BY MAJOR CLASSES OF ASSETS AND LIABILITIES A description of the significant valuation techniques and inputs to the determination of estimated fair value for the more significant asset and liability classes measured at fair value on a recurring basis is as follows: The Company determines the estimated fair value of its investments using primarily the market approach and the income approach. The use of quoted prices for identical assets and matrix pricing or other similar techniques are examples of market approaches, while the use of discounted cash flow methodologies is an example of the income approach. The Company attempts to maximize the use of observable inputs and minimize the use of unobservable inputs in selecting whether the market or income approach is used. While certain investments have been classified as Level 1 from the use of unadjusted quoted prices for identical investments supported by high volumes of trading activity and narrow bid/ask spreads, most investments have been classified as Level 2 because the significant inputs used to measure the fair value on a recurring basis of the same or similar investment are market observable or can be corroborated using market observable information for the full term of the investment. Level 3 investments include those where estimated fair values are based on significant unobservable inputs that are supported by little or no market activity and may reflect our own assumptions about what factors market participants would use in pricing these investments. LEVEL 1 MEASUREMENTS: Fixed Maturity Securities, Equity Securities and Short-term Investments These securities are comprised of U.S. Treasury fixed maturity securities, exchange traded common stock, and short-term money market securities, including U.S. Treasury bills. Valuation of these securities is based on unadjusted quoted prices in active markets that are readily and regularly available. Derivative Assets and Derivative Liabilities These assets and liabilities are comprised of exchange-traded derivatives. Valuation of these assets and liabilities is based on unadjusted quoted prices in active markets that are readily and regularly available. LEVEL 2 MEASUREMENTS: Fixed Maturity Securities, Equity Securities and Short-term Investments This level includes fixed maturity securities and equity securities priced principally by independent pricing services using observable inputs. Short-term investments within this level are of a similar nature and class to the Level 2 securities described below; accordingly, the valuation techniques and significant market standard observable inputs used in their valuation are also similar to those described below. U.S. corporate and foreign corporate securities. These securities are principally valued using the market and income approaches. Valuation is based primarily on quoted prices in markets that are not active, or using matrix pricing or other similar techniques that use standard market observable inputs such as a benchmark yields, spreads off benchmark yields, new issuances, issuer rating, duration, and trades of identical or comparable securities. Investment grade privately placed securities are valued using a discounted cash flow methodologies using standard market observable inputs, and inputs derived from, or corroborated by, market observable data including market yield curve, duration, call provisions, observable prices and spreads for similar publicly traded or privately traded issues that incorporate the credit quality and industry sector of the issuer. This level also includes certain below investment grade privately placed fixed maturity securities priced by independent pricing services that use observable inputs. 70 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Structured securities comprised of RMBS, CMBS and ABS. These securities are principally valued using the market approach. Valuation is based primarily on matrix pricing or other similar techniques using standard market inputs including spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, rating, weighted average coupon, weighted average maturity, average delinquency rates, geographic region, debt-service coverage ratios and issuance-specific information including, but not limited to: collateral type, payment terms of the underlying assets, payment priority within the tranche, structure of the security, deal performance and vintage of loans. U.S. Treasury and agency securities. These securities are principally valued using the market approach. Valuation is based primarily on quoted prices in markets that are not active, or using matrix pricing or other similar techniques using standard market observable inputs such as benchmark U.S. Treasury yield curve, the spread off the U.S. Treasury curve for the identical security and comparable securities that are actively traded. Foreign government and state and political subdivision securities. These securities are principally valued using the market approach. Valuation is based primarily on matrix pricing or other similar techniques using standard market observable inputs including benchmark U.S. Treasury or other yields, issuer ratings, broker-dealer quotes, issuer spreads and reported trades of similar securities, including those within the same sub-sector or with a similar maturity or credit rating. Derivative Assets and Derivative Liabilities This level includes all types of derivative instruments utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivative instruments with unobservable inputs as described in Level 3. These derivatives are principally valued using an income approach. Interest rate contracts. Non-option-based -- Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve, London Inter-Bank Offer Rate ("LIBOR") basis curves, and repurchase rates. Option-based -- Valuations are based on option pricing models, which utilize significant inputs that may include the swap yield curve, LIBOR basis curves, and interest rate volatility. Foreign currency contracts. Non-option-based -- Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve, LIBOR basis curves, currency spot rates, and cross currency basis curves. Credit contracts. Non-option-based -- Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve, credit curves, and recovery rates. Equity market contracts. Option-based -- Valuations are based on option pricing models, which utilize significant inputs that may include the swap yield curve, spot equity index levels, dividend yield curves, and equity volatility. 71 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Separate Account Assets These assets are comprised of certain mutual funds without readily determinable fair values given prices are not published publicly. Valuation of the mutual funds is based upon quoted prices or reported NAV provided by the fund managers. LEVEL 3 MEASUREMENTS: In general, investments classified within Level 3 use many of the same valuation techniques and inputs as described above. However, if key inputs are unobservable, or if the investments are less liquid and there is very limited trading activity, the investments are generally classified as Level 3. The use of independent non-binding broker quotations to value investments generally indicates there is a lack of liquidity or the general lack of transparency in the process to develop the valuation estimates generally causing these investments to be classified in Level 3. Fixed Maturity Securities, Equity Securities and Short-term Investments This level includes fixed maturity securities and equity securities priced principally by independent broker quotations or market standard valuation methodologies using inputs that are not market observable or cannot be derived principally from or corroborated by observable market data. Short-term investments within this level are of a similar nature and class to the Level 3 securities described below; accordingly, the valuation techniques and significant market standard observable inputs used in their valuation are also similar to those described below. U.S. corporate and foreign corporate securities. These securities, including financial services industry hybrid securities classified within fixed maturity securities, are principally valued using the market and income approaches. Valuations are based primarily on matrix pricing or other similar techniques that utilize unobservable inputs or cannot be derived principally from, or corroborated by, observable market data, including illiquidity premiums and spread adjustments to reflect industry trends or specific credit-related issues. Valuations may be based on independent non-binding broker quotations. Generally, below investment grade privately placed or distressed securities included in this level are valued using discounted cash flow methodologies which rely upon significant, unobservable inputs and inputs that cannot be derived principally from, or corroborated by, observable market data. Structured securities comprised of RMBS, CMBS and ABS. These securities are principally valued using the market approach. Valuation is based primarily on matrix pricing or other similar techniques that utilize inputs that are unobservable or cannot be derived principally from, or corroborated by, observable market data, or are based on independent non-binding broker quotations. Below investment grade securities and ABS supported by sub-prime mortgage loans included in this level are valued based on inputs including quoted prices for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2, and certain of these securities are valued based on independent non-binding broker quotations. Foreign government and state and political subdivision securities. These securities are principally valued using the market approach. Valuation is based primarily on matrix pricing or other similar techniques, however these securities are less liquid and certain of the inputs are based on very limited trading activity. Non-redeemable preferred stock. These securities, including privately held securities and financial services industry hybrid securities classified within equity securities, are principally valued using the market and income approaches. Valuations are based primarily on matrix pricing or other similar techniques using inputs such as comparable credit rating and issuance structure. Equity securities valuations determined with discounted cash flow methodologies use inputs such as earnings multiples based on comparable public companies, and industry-specific non-earnings based multiples. Certain of these securities are valued based on independent non-binding broker quotations. 72 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Derivative Assets and Derivative Liabilities These derivatives are principally valued using an income approach. Valuations of non-option based derivatives utilize present value techniques, whereas valuations of option based derivatives utilize option pricing models. These valuation methodologies generally use the same inputs as described in the corresponding sections above for Level 2 measurements of derivatives. However, these derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Interest rate contracts. Non-option-based -- Significant unobservable inputs may include the extrapolation beyond observable limits of the swap yield curve and LIBOR basis curves. Credit contracts. Non-option-based -- Significant unobservable inputs may include credit correlation, repurchase rates, and the extrapolation beyond observable limits of the swap yield curve and credit curves. Guaranteed Minimum Benefit Guarantees These embedded derivatives are principally valued using an income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curve, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curve and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, nonperformance risk and cost of capital for purposes of calculating the risk margin. Reinsurance Ceded on Certain Guaranteed Minimum Benefit Guarantees These embedded derivatives are principally valued using an income approach. Valuations are based on option pricing techniques, which utilize significant inputs that may include swap yield curve, currency exchange rates and implied volatilities. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the extrapolation beyond observable limits of the swap yield curve and implied volatilities, actuarial assumptions for policyholder behavior and mortality and the potential variability in policyholder behavior and mortality, counterparty credit spreads and cost of capital for purposes of calculating the risk margin. Embedded Derivatives Within Funds Withheld Related to Certain Ceded Reinsurance These derivatives are principally valued using an income approach. Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve and the fair value of assets within the reference portfolio. These embedded derivatives result in Level 3 classification because one or more of the significant inputs are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. Significant unobservable inputs generally include: the fair value of certain assets within the reference portfolio which are not observable in the market and cannot be derived principally from, or corroborated by, observable market data. 73 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) TRANSFERS BETWEEN LEVELS 1 AND 2: During the year ended December 31, 2010, transfers between Levels 1 and 2 were not significant. TRANSFERS INTO OR OUT OF LEVEL 3: Overall, transfers into and/or out of Level 3 are attributable to a change in the observability of inputs. Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable. Transfers into and/or out of any level are assumed to occur at the beginning of the period. Significant transfers into and/or out of Level 3 assets and liabilities for the year ended December 31, 2010 are summarized below. During the year ended December 31, 2010, fixed maturity securities transfers into Level 3 of $39 million resulted primarily from current market conditions characterized by a lack of trading activity, decreased liquidity and credit ratings downgrades (e.g., from investment grade to below investment grade). These current market conditions have resulted in decreased transparency of valuations and an increased use of broker quotations and unobservable inputs to determine estimated fair value principally for certain RMBS and private placements included in U.S. corporate securities. During the year ended December 31, 2010, fixed maturity securities transfers out of Level 3 of $31 million resulted primarily from increased transparency of both new issuances that subsequent to issuance and establishment of trading activity, became priced by independent pricing services and existing issuances that, over time, the Company was able to corroborate pricing received from independent pricing services with observable inputs or increases in market activity and upgraded credit ratings primarily for certain U.S. and foreign corporate securities. 74 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) A rollforward of all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs is as follows:
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) --------------------------------------------------------------------------------------------------- TOTAL REALIZED/UNREALIZED GAINS (LOSSES) INCLUDED IN: ------------------------------- PURCHASES, OTHER SALES, BALANCE, COMPREHENSIVE ISSUANCES AND TRANSFER INTO TRANSFER OUT BALANCE, JANUARY 1, EARNINGS (1), (2) INCOME (LOSS) SETTLEMENTS (3) LEVEL 3 (4) OF LEVEL 3 (4) DECEMBER 31, ---------- ----------------- ------------- --------------- ------------- -------------- ------------ (IN MILLIONS) YEAR ENDED DECEMBER 31, 2010: ASSETS: Fixed maturity securities: U.S. corporate securities.............. $139 $ -- $ 4 $ -- $24 $ (5) $162 Foreign corporate securities.............. 70 1 7 38 -- (25) 91 RMBS..................... 9 -- 1 (10) 15 -- 15 State and political subdivision securities.. 1 -- -- -- -- (1) -- CMBS..................... 1 -- 1 5 -- -- 7 ABS...................... 59 -- 10 12 -- -- 81 Foreign government securities.............. -- -- -- 4 -- -- 4 ---- ---- --- ---- --- ---- ---- Total fixed maturity securities............ $279 $ 1 $23 $ 49 $39 $(31) $360 ==== ==== === ==== === ==== ==== Equity securities: Non-redeemable preferred stock......... $ 1 $ -- $-- $ -- $-- $ -- $ 1 ---- ---- --- ---- --- ---- ---- Total equity securities. $ 1 $ -- $-- $ -- $-- $ -- $ 1 ==== ==== === ==== === ==== ==== Short-term investments.... $ -- $ -- $-- $ 6 $-- $ -- $ 6 Net embedded derivatives (5)...................... $536 $112 $-- $103 $-- $ -- $751 FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) --------------------------------------------------------------------------------------------------- TOTAL REALIZED/UNREALIZED GAINS (LOSSES) INCLUDED IN: ------------------------------- PURCHASES, OTHER SALES, BALANCE, COMPREHENSIVE ISSUANCES AND TRANSFER INTO TRANSFER OUT BALANCE, JANUARY 1, EARNINGS (1), (2) INCOME (LOSS) SETTLEMENTS (3) LEVEL 3 (4) OF LEVEL 3 (4) DECEMBER 31, ---------- ----------------- ------------- --------------- ------------- -------------- ------------ (IN MILLIONS) YEAR ENDED DECEMBER 31, 2010: LIABILITIES: Net derivatives: (6) Interest rate contracts.. $ -- $ -- $48 $ -- $-- $ -- $ 48 Credit contracts......... (3) 1 -- 1 -- -- (1) ---- ---- --- ---- --- ---- ---- Total net derivatives.. $ (3) $ 1 $48 $ 1 $-- $ -- $ 47 ==== ==== === ==== === ==== ====
75 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) ---------------------------------------------------------------------------------- TOTAL REALIZED/UNREALIZED GAINS (LOSSES) INCLUDED IN: ------------------------------ PURCHASES, TRANSFER OTHER SALES, INTO AND/ BALANCE, COMPREHENSIVE ISSUANCES AND OR OUT OF BALANCE, JANUARY 1, EARNINGS (1),(2) INCOME (LOSS) SETTLEMENTS (3) LEVEL 3 (4) DECEMBER 31, ---------- ---------------- ------------- --------------- ----------- ------------ (IN MILLIONS) YEAR ENDED DECEMBER 31, 2009: ASSETS: Fixed maturity securities: U.S. corporate securities.................. $ 65 $ (17) $18 $10 $63 $139 Foreign corporate securities............... 48 (1) 11 12 -- 70 RMBS....................................... 2 -- -- 7 -- 9 State and political subdivision securities. -- -- -- 1 -- 1 CMBS....................................... -- (1) 1 -- 1 1 ABS........................................ 49 -- 15 (6) 1 59 ---- ----- --- --- --- ---- Total fixed maturity securities........... $164 $ (19) $45 $24 $65 $279 ==== ===== === === === ==== Equity securities: Non-redeemable preferred stock............. $ 7 $ (2) $ 3 $(7) $-- $ 1 ---- ----- --- --- --- ---- Total equity securities................... $ 7 $ (2) $ 3 $(7) $-- $ 1 ==== ===== === === === ==== Net derivatives (6).......................... $ -- $ 1 $-- $ 2 $-- $ 3 Net embedded derivatives (5)................. $963 $(516) $-- $89 $-- $536
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) -------------------------------------------------------------------------------------------------------- TOTAL REALIZED/UNREALIZED GAINS (LOSSES) INCLUDED IN: ------------------------------ PURCHASES, OTHER SALES, TRANSFER INTO BALANCE, IMPACT OF BALANCE, COMPREHENSIVE ISSUANCES AND AND/OR OUT DECEMBER 31, 2007 ADOPTION (7) JANUARY 1, EARNINGS (1), (2) INCOME (LOSS) SETTLEMENTS (3) OF LEVEL 3 (4) ----------------- ------------ ---------- ----------------- ------------- --------------- -------------- (IN MILLIONS) YEAR ENDED DECEMBER 31, 2008: ASSETS: Fixed maturity securities....... $262 $-- $262 $(13) $(54) $(32) $ 1 Equity securities. $ 4 $-- $ 4 $ -- $ (3) $ -- $ 6 Net embedded derivatives (5).. $175 $95 $270 $647 $ -- $ 46 $--
------------- BALANCE, DECEMBER 31, ------------ YEAR ENDED DECEMBER 31, 2008: ASSETS: Fixed maturity securities....... $164 Equity securities. $ 7 Net embedded derivatives (5).. $963
-------- (1)Amortization of premium/discount is included within net investment income which is reported within the earnings caption of total gains (losses). Impairments charged to earnings on securities are included within net investment gains (losses) which are reported within the earnings caption of total gains (losses). Lapses associated with embedded derivatives are included within the earnings caption of total gains (losses). (2)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (3)The amount reported within purchases, sales, issuances and settlements is the purchase/issuance price (for purchases and issuances) and the sales/settlement proceeds (for sales and settlements) based upon the actual date purchased/issued or sold/settled. Items purchased/issued and sold/settled in the same period are excluded from the rollforward. For embedded derivatives, attributed fees are included within this caption along with settlements, if any. (4)Total gains and losses (in earnings and other comprehensive income (loss)) are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and out in the same period are excluded from the rollforward. 76 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) (5)Embedded derivative assets and liabilities are presented net for purposes of the rollforward. (6)Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (7)The impact of adoption of fair value measurement guidance represents the amount recognized in earnings resulting from a change in estimate for certain Level 3 financial instruments held at January 1, 2008. The net impact of adoption on Level 3 assets and liabilities presented in the table above was a $95 million increase to net assets. Such amount was also impacted by a reduction to DAC of $31 million resulting in a net increase of $64 million. This increase was offset by a $1 million reduction in the estimated fair value of Level 2 freestanding derivatives, resulting in a total net impact of adoption of $63 million. The tables below summarize both realized and unrealized gains and losses due to changes in estimated fair value recorded in earnings for Level 3 assets and liabilities:
TOTAL GAINS AND LOSSES ------------------------------------------ CLASSIFICATION OF REALIZED/UNREALIZED GAINS (LOSSES) INCLUDED IN EARNINGS ------------------------------------------ NET NET NET INVESTMENT DERIVATIVE INVESTMENT GAINS GAINS INCOME (LOSSES) (LOSSES) TOTAL ---------- ---------- ---------- ----- (IN MILLIONS) YEAR ENDED DECEMBER 31, 2010: ASSETS: Fixed maturity securities: Foreign corporate securities...... $ -- $ 1 $ -- $ 1 ----- ---- ---- ---- Total fixed maturity securities. $ -- $ 1 $ -- $ 1 ===== ==== ==== ==== Net embedded derivatives........... $ -- $ -- $112 $112 LIABILITIES: Net derivatives: Credit contracts.................. -- -- (1) (1) ----- ---- ---- ---- Total net derivatives........... $ -- $ -- $ (1) $ (1) ===== ==== ==== ====
TOTAL GAINS AND LOSSES ------------------------------------------ CLASSIFICATION OF REALIZED/UNREALIZED GAINS (LOSSES) INCLUDED IN EARNINGS ------------------------------------------ NET NET NET INVESTMENT DERIVATIVE INVESTMENT GAINS GAINS INCOME (LOSSES) (LOSSES) TOTAL ---------- ---------- ---------- ----- (IN MILLIONS) YEAR ENDED DECEMBER 31, 2009: ASSETS: Fixed maturity securities: U.S. corporate securities......... $ -- $(17) $ -- $ (17) Foreign corporate securities...... -- (1) -- (1) CMBS.............................. -- (1) -- (1) ----- ---- ----- ----- Total fixed maturity securities. $ -- $(19) $ -- $ (19) ===== ==== ===== ===== Equity securities: Non-redeemable preferred stock.... $ -- $ (2) $ -- $ (2) ----- ---- ----- ----- Total equity securities......... $ -- $ (2) $ -- $ (2) ===== ==== ===== ===== Net derivatives.................... $ -- $ -- $ 1 $ 1 Net embedded derivatives........... $ -- $ -- $(516) $(516)
77 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
TOTAL GAINS AND LOSSES ------------------------------------------ CLASSIFICATION OF REALIZED/UNREALIZED GAINS (LOSSES) INCLUDED IN EARNINGS ------------------------------------------ NET NET NET INVESTMENT DERIVATIVE INVESTMENT GAINS GAINS INCOME (LOSSES) (LOSSES) TOTAL ---------- ---------- ---------- ----- (IN MILLIONS) YEAR ENDED DECEMBER 31, 2008: ASSETS: Fixed maturity securities..... $-- $(13) $ -- $(13) Net embedded derivatives...... $-- $ -- $647 $647
The tables below summarize the portion of unrealized gains and losses, due to changes in estimated fair value, recorded in earnings for Level 3 assets and liabilities that were still held at the respective time periods:
CHANGES IN UNREALIZED GAINS (LOSSES) RELATING TO ASSETS AND LIABILITIES HELD AT DECEMBER 31, 2010 ----------------------------------------- NET NET NET INVESTMENT DERIVATIVE INVESTMENT GAINS GAINS INCOME (LOSSES) (LOSSES) TOTAL ---------- ---------- ---------- ----- (IN MILLIONS) YEAR ENDED DECEMBER 31, 2010: ASSETS: Fixed maturity securities: ABS............................... $ 1 $-- $ -- $ 1 --- --- ---- ---- Total fixed maturity securities. $ 1 $-- $ -- $ 1 === === ==== ==== Net embedded derivatives........... $-- $-- $120 $120 LIABILITIES: Net derivatives: Credit contracts.................. -- -- (1) (1) --- --- ---- ---- Total net derivatives........... $-- $-- $ (1) $ (1) === === ==== ====
CHANGES IN UNREALIZED GAINS (LOSSES) RELATING TO ASSETS AND LIABILITIES HELD AT DECEMBER 31, 2009 -------------------------------------- NET NET NET INVESTMENT DERIVATIVE INVESTMENT GAINS GAINS INCOME (LOSSES) (LOSSES) TOTAL ---------- ---------- ---------- ----- (IN MILLIONS) YEAR ENDED DECEMBER 31, 2009: ASSETS: Fixed maturity securities: U.S. corporate securities......... $ -- $(17) $ -- $ (17) Foreign corporate securities...... -- (1) -- (1) CMBS.............................. -- (1) -- (1) ----- ---- ----- ----- Total fixed maturity securities. $ -- $(19) $ -- $ (19) ===== ==== ===== ===== Net derivatives.................... $ -- $ -- $ 1 $ 1 Net embedded derivatives........... $ -- $ -- $(510) $(510)
78 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
CHANGES IN UNREALIZED GAINS (LOSSES) RELATING TO ASSETS AND LIABILITIES HELD AT DECEMBER 31, 2008 ----------------------------------------- NET NET NET INVESTMENT DERIVATIVE INVESTMENT GAINS GAINS INCOME (LOSSES) (LOSSES) TOTAL ---------- ---------- ---------- ----- (IN MILLIONS) YEAR ENDED DECEMBER 31, 2008: ASSETS: Fixed maturity securities..... $ -- $(12) $ -- $(12) Net embedded derivatives...... $ -- $ -- $649 $649
NON-RECURRING FAIR VALUE MEASUREMENTS Certain assets are measured at estimated fair value on a non-recurring basis and are not included in the tables presented above. The amounts below relate to certain investments measured at estimated fair value during the period and still held at the reporting dates.
YEARS ENDED DECEMBER 31, --------------------------------------------------------------------------- 2010 2009 ------------------------------------ ------------------------------------ ESTIMATED NET ESTIMATED NET CARRYING FAIR INVESTMENT CARRYING FAIR INVESTMENT VALUE PRIOR TO VALUE AFTER GAINS VALUE PRIOR TO VALUE AFTER GAINS MEASUREMENT MEASUREMENT (LOSSES) MEASUREMENT MEASUREMENT (LOSSES) -------------- ----------- ---------- -------------- ----------- ---------- (IN MILLIONS) Other limited partnership interests (1). $4 $3 $(1) $21 $4 $(17) Real estate joint ventures (2).......... $3 $1 $(2) $ 7 $5 $ (2)
-------------------------------------- 2008 ------------------------------------- ESTIMATED NET CARRYING FAIR INVESTMENT VALUE PRIOR TO VALUE AFTER GAINS MEASUREMENT MEASUREMENT (LOSSES) -------------- ----------- ---------- Other limited partnership interests (1). $ -- $ -- $ -- Real estate joint ventures (2).......... $ -- $ -- $ --
-------- (1)Other limited partnership interests -- The impaired investments presented above were accounted for using the cost method. Impairments on these cost method investments were recognized at estimated fair value determined from information provided in the financial statements of the underlying entities in the period in which the impairment was incurred. These impairments to estimated fair value represent non-recurring fair value measurements that have been classified as Level 3 due to the limited activity and price transparency inherent in the market for such investments. This category includes several private equity and debt funds that typically invest primarily in international leveraged buyout funds. The estimated fair values of these investments have been determined using the NAV of the Company's ownership interest in the partners' capital. Distributions from these investments will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next 2 to 10 years. Unfunded commitments for these investments were $4 million and $7 million at December 31, 2010 and 2009, respectively. (2)Real estate joint ventures -- The impaired investments presented above were accounted for using the cost method. Impairments on these cost method investments were recognized at estimated fair value determined from information provided in the financial statements of the underlying entities in the period in which the impairment was incurred. These impairments to estimated fair value represent non-recurring fair value measurements that have been classified as Level 3 due to the limited activity and price transparency inherent in the market for such investments. This category includes several real estate funds that typically invest primarily in commercial real estate. The estimated fair values of these investments have been determined using the NAV of the Company's ownership interest in the partners' capital. Distributions from these investments will be generated from investment gains, from operating income from the underlying investments of the funds and from liquidation of the underlying assets of the funds. It is estimated that the underlying assets of the funds will be liquidated over the next 2 to 10 years. Unfunded commitments for these investments were less than $1 million and $7 million at December 31, 2010 and 2009, respectively. 79 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) FAIR VALUE OF FINANCIAL INSTRUMENTS Amounts related to the Company's financial instruments that were not measured at fair value on a recurring basis, were as follows:
ESTIMATED NOTIONAL CARRYING FAIR DECEMBER 31, 2010 AMOUNT VALUE VALUE ----------------------------------------------------------------------- -------- -------- --------- (IN MILLIONS) ASSETS Mortgage loans, net.................................................... $1,175 $1,249 Policy loans........................................................... $ 64 $ 64 Real estate joint ventures (1)......................................... $ 6 $ 5 Other limited partnership interests (1)................................ $ 8 $ 7 Short-term investments (2)............................................. $ 5 $ 5 Cash and cash equivalents.............................................. $ 240 $ 240 Accrued investment income.............................................. $ 105 $ 105 Premiums, reinsurance and other receivables (1)........................ $5,526 $5,943 LIABILITIES Policyholder account balances (1)...................................... $6,462 $7,001 Payables for collateral under securities loaned and other transactions. $1,246 $1,246 Long-term debt......................................................... $ 45 $ 45 Other liabilities (1).................................................. $ 137 $ 137 Separate account liabilities (1)....................................... $1,125 $1,125 COMMITMENTS (3) Mortgage loan commitments.............................................. $80 $ -- $ (1) Commitments to fund private corporate bond investments................. $66 $ -- $ 3
ESTIMATED NOTIONAL CARRYING FAIR DECEMBER 31, 2009 AMOUNT VALUE VALUE ----------------------------------------------------------------------- -------- -------- --------- (IN MILLIONS) ASSETS Mortgage loans, net.................................................... $ 605 $ 572 Policy loans........................................................... $ 50 $ 50 Real estate joint ventures (1)......................................... $ 5 $ 5 Other limited partnership interests (1)................................ $ 8 $ 7 Cash and cash equivalents.............................................. $ 412 $ 412 Accrued investment income.............................................. $ 84 $ 84 Premiums, reinsurance and other receivables (1)........................ $4,229 $4,071 LIABILITIES Policyholder account balances (1)...................................... $6,488 $6,309 Payables for collateral under securities loaned and other transactions. $1,607 $1,607 Other liabilities (1).................................................. $ 119 $ 119 Separate account liabilities (1)....................................... $1,070 $1,070 COMMITMENTS (3) Commitments to fund private corporate bond investments................. $125 $ -- $ --
-------- (1)Carrying values presented herein differ from those presented in the consolidated balance sheets because certain items within the respective financial statement caption are not considered financial instruments. Financial statement captions excluded from the table above are not considered financial instruments. 80 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) (2)Short-term investments as presented in the table above differs from the amount presented in the consolidated balance sheets because this table does not include short-term investments that meet the definition of a security, which are measured at estimated fair value on a recurring basis. (3)Commitments are off-balance sheet obligations. Negative estimated fair values represent off-balance sheet liabilities. The methods and assumptions used to estimate the fair value of financial instruments are summarized as follows: The assets and liabilities measured at estimated fair value on a recurring basis include: fixed maturity securities, equity securities, short-term investments, derivative assets and liabilities, net embedded derivatives within asset and liability host contracts and separate account assets. These assets and liabilities are described in the section "-- Recurring Fair Value Measurements" and, therefore, are excluded from the tables above. The estimated fair value for these financial instruments approximates carrying value. Mortgage Loans The Company originates mortgage loans principally for investment purposes. These loans are principally carried at amortized cost. The estimated fair value of mortgage loans is primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar mortgage loans with similar credit risk. Policy Loans For policy loans with fixed interest rates, estimated fair values are determined using a discounted cash flow model applied to groups of similar policy loans determined by the nature of the underlying insurance liabilities. Cash flow estimates are developed applying a weighted-average interest rate to the outstanding principal balance of the respective group of policy loans and an estimated average maturity determined through experience studies of the past performance of policyholder repayment behavior for similar loans. These cash flows are discounted using current risk-free interest rates with no adjustment for borrower credit risk as these loans are fully collateralized by the cash surrender value of the underlying insurance policy. The estimated fair value for policy loans with variable interest rates approximates carrying value due to the absence of borrower credit risk and the short time period between interest rate resets, which presents minimal risk of a material change in estimated fair value due to changes in market interest rates. Real Estate Joint Ventures and Other Limited Partnership Interests Real estate joint ventures and other limited partnership interests included in the preceding tables consist of those investments accounted for using the cost method. The remaining carrying value recognized in the consolidated balance sheets represents investments in real estate joint ventures and other limited partnership interests accounted for using the equity method, which do not meet the definition of financial instruments for which fair value is required to be disclosed. The estimated fair values for real estate joint ventures and other limited partnership interests accounted for under the cost method are generally based on the Company's share of the NAV as provided in the financial statements of the investees. In certain circumstances, management may adjust the NAV by a premium or discount when it has sufficient evidence to support applying such adjustments. 81 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Short-term Investments Certain short-term investments do not qualify as securities and are recognized at amortized cost in the consolidated balance sheets. For these instruments, the Company believes that there is minimal risk of material changes in interest rates or credit of the issuer such that estimated fair value approximates carrying value. In light of recent market conditions, short-term investments have been monitored to ensure there is sufficient demand and maintenance of issuer credit quality and the Company has determined additional adjustment is not required. Cash and Cash Equivalents Due to the short-term maturities of cash and cash equivalents, the Company believes there is minimal risk of material changes in interest rates or credit of the issuer such that estimated fair value generally approximates carrying value. In light of recent market conditions, cash and cash equivalent instruments have been monitored to ensure there is sufficient demand and maintenance of issuer credit quality, or sufficient solvency in the case of depository institutions, and the Company has determined additional adjustment is not required. Accrued Investment Income Due to the short term until settlement of accrued investment income, the Company believes there is minimal risk of material changes in interest rates or credit of the issuer such that estimated fair value approximates carrying value. In light of recent market conditions, the Company has monitored the credit quality of the issuers and has determined additional adjustment is not required. Premiums, Reinsurance and Other Receivables Premiums, reinsurance and other receivables in the preceding tables are principally comprised of certain amounts recoverable under reinsurance contracts and amounts receivable for securities sold but not yet settled. Premiums receivable and those amounts recoverable under reinsurance treaties determined to transfer sufficient risk are not financial instruments subject to disclosure and thus have been excluded from the amounts presented in the preceding tables. Amounts recoverable under ceded reinsurance contracts, which the Company has determined do not transfer sufficient risk such that they are accounted for using the deposit method of accounting, have been included in the preceding tables. The estimated fair value is determined as the present value of expected future cash flows under the related contracts, which were discounted using an interest rate determined to reflect the appropriate credit standing of the assuming counterparty. Policyholder Account Balances Policyholder account balances in the tables above include investment contracts. Embedded derivatives on investment contracts and certain variable annuity guarantees accounted for as embedded derivatives are included in this caption in the consolidated financial statements but excluded from this caption in the tables above as they are separately presented in "-- Recurring Fair Value Measurements." The remaining difference between the amounts reflected as policyholder account balances in the preceding table and those recognized in the consolidated balance sheets represents those amounts due under contracts that satisfy the definition of insurance contracts and are not considered financial instruments. The investment contracts primarily include fixed deferred annuities, fixed term payout annuities and total control accounts ("TCA"). The fair values for these investment contracts are estimated by discounting best estimate future cash flows using current market risk-free interest rates and adding a spread to reflect the nonperformance risk in the liability. 82 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Payables for Collateral Under Securities Loaned and Other Transactions The estimated fair value for payables for collateral under securities loaned and other transactions approximates carrying value. The related agreements to loan securities are short-term in nature such that the Company believes there is limited risk of a material change in market interest rates. Additionally, because borrowers are cross-collateralized by the borrowed securities, the Company believes no additional consideration for changes in nonperformance risk are necessary. Long-term Debt The estimated fair value of long-term debt is generally determined by discounting expected future cash flows using market rates currently available for debt with similar terms, remaining maturities and reflecting the credit risk of the Company, including inputs when available, from actively traded debt of other companies with similar types of borrowing arrangements. Other Liabilities Other liabilities included in the tables above reflect those other liabilities that satisfy the definition of financial instruments subject to disclosure. These items consist primarily of interest payable; amounts due for securities purchased but not yet settled; and funds withheld under reinsurance treaties accounted for as deposit type treaties. The Company evaluates the specific terms, facts and circumstances of each instrument to determine the appropriate estimated fair values, which were not materially different from the carrying values. Separate Account Liabilities Separate account liabilities included in the preceding tables represent those balances due to policyholders under contracts that are classified as investment contracts. The remaining amounts presented in the consolidated balance sheets represent those contracts classified as insurance contracts, which do not satisfy the definition of financial instruments. Separate account liabilities classified as investment contracts primarily represent variable annuities with no significant mortality risk to the Company such that the death benefit is equal to the account balance and certain contracts that provide for benefit funding. Separate account liabilities are recognized in the consolidated balance sheets at an equivalent value of the related separate account assets. Separate account assets, which equal net deposits, net investment income and realized and unrealized investment gains and losses, are fully offset by corresponding amounts credited to the contractholders' liability which is reflected in separate account liabilities. Since separate account liabilities are fully funded by cash flows from the separate account assets which are recognized at estimated fair value as described in the section "-- Recurring Fair Value Measurements," the Company believes the value of those assets approximates the estimated fair value of the related separate account liabilities. Mortgage Loan Commitments and Commitments to Fund Private Corporate Bond Investments The estimated fair values for mortgage loan commitments that will be held for investment and commitments to fund private corporate bonds that will be held for investment reflected in the above tables represent the difference between the discounted expected future cash flows using interest rates that incorporate current credit risk for similar instruments on the reporting date and the principal amounts of the commitments. 83 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 5. DEFERRED POLICY ACQUISITION COSTS Information regarding DAC is as follows:
DAC ------------- (IN MILLIONS) Balance at January 1, 2008............ $1,806 Capitalizations...................... 717 ------ Subtotal........................... 2,523 ------ Amortization related to:............. Net investment gains (losses)........ (115) Other expenses....................... (394) ------ Total amortization................. (509) ------ Unrealized investment gains (losses). 68 ------ Balance at December 31, 2008.......... 2,082 Capitalizations...................... 727 ------ Subtotal........................... 2,809 ------ Amortization related to:............. Net investment gains (losses)........ 136 Other expenses....................... (332) ------ Total amortization................. (196) ------ Unrealized investment gains (losses). (59) ------ Balance at December 31, 2009.......... 2,554 Capitalizations...................... 880 ------ Subtotal........................... 3,434 ------ Amortization related to:............. Net investment gains (losses)........ (59) Other expenses....................... (364) ------ Total amortization................. (423) ------ Unrealized investment gains (losses). (46) ------ Balance at December 31, 2010.......... $2,965 ======
Amortization of DAC is attributed to both investment gains and losses and to other expenses for the amount of gross profits originating from transactions other than investment gains and losses. Unrealized investment gains and losses represent the amount of DAC that would have been amortized if such gains and losses had been recognized. 84 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 6. INSURANCE VALUE OF DISTRIBUTION AGREEMENTS Information regarding VODA, which is reported in other assets, was as follows:
YEARS ENDED DECEMBER 31, ----------------------- 2010 2009 2008 ---- ---- ---- (IN MILLIONS) Balance at January 1,... $155 $160 $164 Amortization............ (7) (5) (4) ---- ---- ---- Balance at December 31,. $148 $155 $160 ==== ==== ====
The estimated future amortization expense allocated to other expenses for the next five years for VODA is $8 million in 2011, $10 million in 2012, $11 million in 2013, $12 million in 2014 and $12 million in 2015. SALES INDUCEMENTS Information regarding deferred sales inducements, which are reported in other assets, was as follows:
YEARS ENDED DECEMBER 31, ----------------------- 2010 2009 2008 ---- ---- ---- (IN MILLIONS) Balance at January 1,... $450 $378 $355 Capitalization.......... 98 122 106 Amortization............ (51) (50) (83) ---- ---- ---- Balance at December 31,. $497 $450 $378 ==== ==== ====
SEPARATE ACCOUNTS Separate account assets and liabilities consist of pass-through separate accounts totaling $42.4 billion and $30.0 billion at December 31, 2010 and 2009, 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 $743 million, $488 million and $469 million for the years ended December 31, 2010, 2009 and 2008, respectively. For each of the years ended December 31, 2010, 2009 and 2008, 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 ("return of net deposits"); 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 ("anniversary contract value" or "minimum return"). These guarantees include benefits that are payable in the event of death or at annuitization. The Company also issues universal and variable life contracts where the Company contractually guarantees to the contractholder a secondary guarantee. 85 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts is as follows:
DECEMBER 31, -------------------------------------------------------- 2010 2009 -------------------------- -------------------------- 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....................... $ 21,840 N/A $ 15,705 N/A Net amount at risk (2)....................... $ 415 (3) N/A $ 1,018 (3) N/A Average attained age of contractholders...... 62 years N/A 62 years N/A ANNIVERSARY CONTRACT VALUE OR MINIMUM RETURN Separate account value....................... $ 23,624 $ 30,613 $ 16,393 $ 22,157 Net amount at risk (2)....................... $ 1,378 (3) $ 3,523 (4) $ 2,170 (3) $ 4,158 (4) Average attained age of contractholders...... 64 years 62 years 63 years 61 years
DECEMBER 31, ---------------------- 2010 2009 ---------- ---------- SECONDARY SECONDARY GUARANTEES GUARANTEES ---------- ---------- (IN MILLIONS) UNIVERSAL AND VARIABLE LIFE CONTRACTS (1).... Account value (general and separate account). $ 1,578 $ 1,655 Net amount at risk (2)....................... $ 29,454 (3) $ 34,768 (3) Average attained age of policyholders........ 56 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 and assumed amount at risk (excluding ceded reinsurance). (3)The net amount at risk for guarantees of amounts in the event of death is defined as the current GMDB 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. 86 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (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 VARIABLE LIFE ANNUITY CONTRACTS CONTRACTS ----------------------- ------------- GUARANTEED GUARANTEED DEATH ANNUITIZATION SECONDARY BENEFITS BENEFITS GUARANTEES TOTAL ---------- ------------- ------------- ----- (IN MILLIONS) DIRECT Balance at January 1, 2008..... $ 28 $ 45 $ 28 $101 Incurred guaranteed benefits. 66 176 24 266 Paid guaranteed benefits..... (21) -- -- (21) ---- ---- ---- ---- Balance at December 31, 2008... 73 221 52 346 Incurred guaranteed benefits. 27 (6) 172 193 Paid guaranteed benefits..... (45) -- -- (45) ---- ---- ---- ---- Balance at December 31, 2009... 55 215 224 494 Incurred guaranteed benefits. 23 66 246 335 Paid guaranteed benefits..... (5) -- -- (5) ---- ---- ---- ---- Balance at December 31, 2010... $ 73 $281 $470 $824 ==== ==== ==== ==== CEDED Balance at January 1, 2008..... $ 28 $ 17 $ -- $ 45 Incurred guaranteed benefits. 66 55 -- 121 Paid guaranteed benefits..... (21) -- -- (21) ---- ---- ---- ---- Balance at December 31, 2008... 73 72 -- 145 Incurred guaranteed benefits. 27 2 142 171 Paid guaranteed benefits..... (45) -- -- (45) ---- ---- ---- ---- Balance at December 31, 2009... 55 74 142 271 Incurred guaranteed benefits. 23 23 192 238 Paid guaranteed benefits..... (5) -- -- (5) ---- ---- ---- ---- Balance at December 31, 2010... $ 73 $ 97 $334 $504 ==== ==== ==== ==== NET Balance at January 1, 2008..... $ -- $ 28 $ 28 $ 56 Incurred guaranteed benefits. -- 121 24 145 Paid guaranteed benefits..... -- -- -- -- ---- ---- ---- ---- Balance at December 31, 2008... -- 149 52 201 Incurred guaranteed benefits. -- (8) 30 22 Paid guaranteed benefits..... -- -- -- -- ---- ---- ---- ---- Balance at December 31, 2009... -- 141 82 223 Incurred guaranteed benefits. -- 43 54 97 Paid guaranteed benefits..... -- -- -- -- ---- ---- ---- ---- Balance at December 31, 2010... $ -- $184 $136 $320 ==== ==== ==== ====
87 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Account balances of contracts with insurance guarantees are invested in separate account asset classes as follows:
DECEMBER 31, --------------- 2010 2009 ------- ------- (IN MILLIONS) Fund Groupings: Equity......... $21,558 $15,056 Balanced....... 16,456 11,144 Bond........... 1,941 1,251 Money Market... 521 679 Specialty...... 705 514 ------- ------- Total........ $41,181 $28,644 ======= =======
7. REINSURANCE The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth. For its individual life insurance products, the Company has historically reinsured the mortality risk primarily on an excess of retention basis or a quota share basis. The Company retains up to $100,000 per life and reinsures 100% of amounts in excess of the Company's retention limits for most new individual life insurance policies and for certain individual life insurance policies the Company reinsures up to 90% of the mortality risk. In addition to reinsuring mortality risk as described above, the Company reinsures other risks, as well as specific coverages. Placement of reinsurance is done primarily on an automatic basis and also on a facultative basis for risks with specific characteristics. The Company evaluates its reinsurance programs routinely and may increase or decrease its retention at any time. The Company also reinsures the risk associated with secondary death benefit guarantees on certain universal life insurance policies to an affiliate. The Company reinsures 100% of the living and death benefit guarantees associated with its variable annuities issued since 2001 to an affiliated reinsurer. Under these reinsurance agreements, the Company pays a reinsurance premium generally based on fees associated with the guarantees collected from policyholders and receives reimbursement for benefits paid or accrued in excess of account values, subject to certain limitations. The Company also reinsures 90% of its new production of fixed annuities to an affiliated reinsurer. The Company has exposure to catastrophes, which could contribute to significant fluctuations in the Company's results of operations. The Company uses excess of retention and quota share reinsurance agreements to provide greater diversification of risk and minimize exposure to larger risks. The Company reinsures its business through a diversified group of well-capitalized, highly rated reinsurers. The Company analyzes recent trends in arbitration and litigation outcomes in disputes, if any, with its reinsurers. The Company monitors ratings and evaluates the financial strength of its reinsurers by analyzing their financial statements. In addition, the reinsurance recoverable balance due from each reinsurer is evaluated as part of the overall monitoring process. Recoverability of reinsurance recoverable balances is evaluated based on these analyses. The Company generally secures large reinsurance recoverable balances with various forms of collateral, including secured trusts and funds withheld accounts. These reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, which at December 31, 2010 and 2009, were immaterial. 88 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts and funds withheld accounts. The Company had $262 million and $173 million of unsecured unaffiliated reinsurance recoverable balances at December 31, 2010 and 2009, respectively. At December 31, 2010, the Company had $397 million of net unaffiliated ceded reinsurance recoverables. Of this total, $337 million, or 85%, were with the Company's five largest unaffiliated ceded reinsurers, including $201 million of which were unsecured. At December 31, 2009, the Company had $290 million of net unaffiliated ceded reinsurance recoverables. Of this total, $247 million, or 85%, were with the Company's five largest unaffiliated ceded reinsurers, including $130 million of which were unsecured. The amounts in the consolidated statements of operations include the impact of reinsurance. Information regarding the effect of reinsurance was as follows:
YEARS ENDED DECEMBER 31, ----------------------- 2010 2009 2008 ------ ----- ----- (IN MILLIONS) PREMIUMS: Direct premiums............................................... $ 562 $ 564 $ 259 Reinsurance assumed........................................... 13 14 15 Reinsurance ceded............................................. (218) (185) (130) ------ ----- ----- Net premiums................................................ $ 357 $ 393 $ 144 ====== ===== ===== UNIVERSAL LIFE AND INVESTMENT-TYPE PRODUCT POLICY FEES: Direct universal life and investment-type product policy fees. $1,224 $ 834 $ 746 Reinsurance assumed........................................... 120 115 196 Reinsurance ceded............................................. (353) (204) (308) ------ ----- ----- Net universal life and investment-type product policy fees.. $ 991 $ 745 $ 634 ====== ===== ===== OTHER REVENUES: Direct other revenues......................................... $ 63 $ 39 $ 44 Reinsurance assumed........................................... -- -- -- Reinsurance ceded............................................. 239 198 83 ------ ----- ----- Net other revenues.......................................... $ 302 $ 237 $ 127 ====== ===== ===== POLICYHOLDER BENEFITS AND CLAIMS: Direct policyholder benefits and claims....................... $ 944 $ 807 $ 677 Reinsurance assumed........................................... 29 8 19 Reinsurance ceded............................................. (487) (358) (312) ------ ----- ----- Net policyholder benefits and claims........................ $ 486 $ 457 $ 384 ====== ===== ===== INTEREST CREDITED TO POLICYHOLDER ACCOUNT BALANCES: Direct interest credited to policyholder account balances..... $ 404 $ 377 $ 214 Reinsurance assumed........................................... 64 64 57 Reinsurance ceded............................................. (55) (32) (22) ------ ----- ----- Net interest credited to policyholder account balances...... $ 413 $ 409 $ 249 ====== ===== ===== OTHER EXPENSES: Direct other expenses......................................... $ 842 $ 465 $ 699 Reinsurance assumed........................................... 90 105 97 Reinsurance ceded............................................. 92 43 16 ------ ----- ----- Net other expenses.......................................... $1,024 $ 613 $ 812 ====== ===== =====
89 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The amounts in the consolidated balance sheets include the impact of reinsurance. Information regarding the effect of reinsurance was as follows at:
DECEMBER 31, 2010 ------------------------------------- TOTAL BALANCE TOTAL, NET OF SHEET ASSUMED CEDED REINSURANCE ------- ------- ------ ------------- (IN MILLIONS) ASSETS: Premiums, reinsurance and other receivables. $ 9,778 $ 40 $9,527 $ 211 Deferred policy acquisition costs........... 2,965 164 (486) 3,287 ------- ------ ------ ------ Total assets............................... $12,743 $ 204 $9,041 $3,498 ======= ====== ====== ====== LIABILITIES: Future policy benefits...................... $ 2,092 $ 41 $ -- $2,051 Other policy-related balances............... 2,120 1,435 508 177 Other liabilities........................... 3,601 12 3,343 246 ------- ------ ------ ------ Total liabilities.......................... $ 7,813 $1,488 $3,851 $2,474 ======= ====== ====== ======
DECEMBER 31, 2009 ------------------------------------- TOTAL BALANCE TOTAL, NET OF SHEET ASSUMED CEDED REINSURANCE ------- ------- ------ ------------- (IN MILLIONS) ASSETS: Premiums, reinsurance and other receivables. $6,972 $ 30 $6,808 $ 134 Deferred policy acquisition costs........... 2,554 230 (402) 2,726 ------ ------ ------ ------ Total assets............................... $9,526 $ 260 $6,406 $2,860 ====== ====== ====== ====== LIABILITIES: Future policy benefits...................... $1,444 $ 27 $ -- $1,417 Other policy-related balances............... 1,817 1,393 284 140 Other liabilities........................... 1,428 9 1,273 146 ------ ------ ------ ------ Total liabilities.......................... $4,689 $1,429 $1,557 $1,703 ====== ====== ====== ======
Reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on ceded reinsurance were $4,308 million and $4,224 million, at December 31, 2010 and 2009, respectively. There were no deposit liabilities for assumed reinsurance at December 31, 2010 and 2009. The Company has reinsurance agreements with certain MetLife subsidiaries, including MLIC, Exeter Reassurance Company, Ltd., General American Life Insurance Company, and MetLife Reinsurance Company of Vermont , all of which are related parties. 90 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) RELATED PARTY REINSURANCE TRANSACTIONS Information regarding the effect of affiliated reinsurance included in the consolidated statements of operations was as follows:
YEARS ENDED DECEMBER 31, ----------------------- 2010 2009 2008 ----- ----- ----- (IN MILLIONS) PREMIUMS: Reinsurance assumed........................................... $ 13 $ 14 $ 15 Reinsurance ceded (1)......................................... (190) (164) (114) ----- ----- ----- Net premiums............................................... $(177) $(150) $ (99) ===== ===== ===== UNIVERSAL LIFE AND INVESTMENT-TYPE PRODUCT POLICY FEES: Reinsurance assumed........................................... $ 120 $ 115 $ 196 Reinsurance ceded (1)......................................... (279) (151) (266) ----- ----- ----- Net universal life and investment-type product policy fees. $(159) $ (36) $ (70) ===== ===== ===== OTHER REVENUES: Reinsurance assumed........................................... $ -- $ -- $ -- Reinsurance ceded............................................. 239 198 83 ----- ----- ----- Net other revenues......................................... $ 239 $ 198 $ 83 ===== ===== ===== POLICYHOLDER BENEFITS AND CLAIMS: Reinsurance assumed........................................... $ 29 $ 8 $ 19 Reinsurance ceded (1)......................................... (323) (219) (249) ----- ----- ----- Net policyholder benefits and claims....................... $(294) $(211) $(230) ===== ===== ===== INTEREST CREDITED TO POLICYHOLDER ACCOUNT BALANCES: Reinsurance assumed........................................... $ 64 $ 64 $ 57 Reinsurance ceded............................................. (55) (32) (22) ----- ----- ----- Net interest credited to policyholder account balances..... $ 9 $ 32 $ 35 ===== ===== ===== OTHER EXPENSES: Reinsurance assumed........................................... $ 90 $ 105 $ 97 Reinsurance ceded............................................. 92 42 15 ----- ----- ----- Net other expenses......................................... $ 182 $ 147 $ 112 ===== ===== =====
-------- (1)In September 2008, MICC's parent, MetLife, completed a tax-free split-off of its majority owned subsidiary, Reinsurance Group of America, Incorporated ("RGA"). After the split-off, reinsurance transactions with RGA were no longer considered affiliated transactions. For purposes of comparison, the 2008 affiliated transactions with RGA have been removed from the presentation in the table above. Affiliated transactions with RGA for the year ended December 31, 2008 include ceded premiums, ceded fees and ceded benefits of $3 million, $8 million and $15 million, respectively. 91 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Information regarding the effect of affiliated reinsurance included in the consolidated balance sheets was as follows at:
DECEMBER 31, ------------------------------ 2010 2009 -------------- -------------- ASSUMED CEDED ASSUMED CEDED ------- ------ ------- ------ (IN MILLIONS) ASSETS: Premiums, reinsurance and other receivables. $ 40 $9,117 $ 30 $6,505 Deferred policy acquisition costs........... 164 (484) 230 (399) ------ ------ ------ ------ Total assets............................... $ 204 $8,633 $ 260 $6,106 ====== ====== ====== ====== LIABILITIES: Future policy benefits...................... $ 41 $ -- $ 27 $ -- Other policy-related balances............... 1,435 508 1,393 284 Other liabilities........................... 12 3,195 9 1,143 ------ ------ ------ ------ Total liabilities.......................... $1,488 $3,703 $1,429 $1,427 ====== ====== ====== ======
The Company cedes risks to an affiliate related to guaranteed minimum benefit guarantees written directly by the Company. These ceded reinsurance agreements contain embedded derivatives and changes in their fair value were also included within net derivative gains (losses). The embedded derivatives associated with the cessions were included within premiums, reinsurance and other receivables and were assets of $930 million and $724 million at December 31, 2010 and 2009, respectively. For the years ended December 31, 2010, 2009 and 2008, net derivative gains (losses) included ($7) million, ($1,452) million, and $1,681 million, respectively, in changes in fair value of such embedded derivatives. MLI-USA cedes two blocks of business to an affiliate on a 90% coinsurance with funds withheld basis. Certain contractual features of this agreement qualify as embedded derivatives, which were separately accounted for at estimated fair value on the Company's consolidated balance sheets. The embedded derivative related to the funds withheld associated with this reinsurance agreement was included within other liabilities and increased the funds withheld balance by $5 million at December 31, 2010 and decreased the funds withheld balance by $11 million at December 31, 2009. The changes in fair value of the embedded derivatives, included in net derivative gains (losses), were ($17) million, ($16) million and $27 million at December 31, 2010, 2009 and 2008, respectively. The reinsurance agreement also includes an experience refund provision, whereby some or all of the profits on the underlying reinsurance agreement were returned to MLI-USA from the affiliated reinsurer during the first several years of the reinsurance agreement. The experience refund reduced the funds withheld by MLI-USA from the affiliated reinsurer by $304 million and $180 million at December 31, 2010 and 2009, respectively, and were considered unearned revenue, amortized over the life of the contract using the same assumptions as used for the DAC associated with the underlying policies. Amortization and interest of the unearned revenue associated with the experience refund was $81 million, $36 million and $38 million at December 31, 2010, 2009 and 2008, respectively, and was included in universal life and investment-type product policy fees in the consolidated statements of operations. At December 31, 2010 and 2009, unearned revenue related to the experience refund was $560 million and $337 million, respectively, and was included in other policy-related balances in the consolidated balance sheets. The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts, funds withheld accounts and irrevocable letters of credit. The Company had $4.0 billion of unsecured affiliated reinsurance recoverable balances at both December 31, 2010 and 2009. 92 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Affiliated reinsurance agreements that do not expose the Company to a reasonable possibility of a significant loss from insurance risk are recorded using the deposit method of accounting. The deposit assets on ceded affiliated reinsurance were $4,172 million and $4,107 million, at December 31, 2010 and 2009, respectively. There were no deposit liabilities for assumed affiliated reinsurance at December 31, 2010 and 2009. 8. LONG-TERM DEBT On December 23, 2010, Greater Sandhill I, LLC, an affiliate, issued to a third party, long-term notes for $45 million maturing in 2030 with an interest rate of 7.028%, which was outstanding at December 31, 2010. The notes were issued in exchange for certain investments included in other invested assets. At December 31, 2009, the Company had no outstanding long-term debt. With prior approval of the Delaware Commissioner of Insurance ("Delaware Commissioner"), in June 2008, the Company repaid a $400 million surplus note to MetLife, and $25 million and $10 million surplus notes to MetLife Investors Group, Inc. Interest expense related to the Company's indebtedness included in other expenses was less than $1 million and $13 million for the years ended December 31, 2010 and 2008, respectively. The Company had no interest expense related to indebtedness for the year ended December 31, 2009. 9. INCOME TAX The provision for income tax was as follows:
YEARS ENDED DECEMBER 31, ----------------------- 2010 2009 2008 ---- ----- ----- (IN MILLIONS) Current: Federal...................................... $(18) $ 8 $(131) Deferred: Federal...................................... 103 (193) 280 ---- ----- ----- Provision for income tax expense (benefit). $ 85 $(185) $ 149 ==== ===== =====
The reconciliation of the income tax provision at the U.S. statutory rate to the provision for income tax as reported was as follows:
YEARS ENDED DECEMBER 31, ----------------------- 2010 2009 2008 ---- ----- ---- (IN MILLIONS) Tax provision at U.S. statutory rate.......... $132 $(134) $174 Tax effect of: Tax-exempt investment income................. (43) (33) (21) Prior year tax............................... -- (18) (2) Tax credits.................................. (4) -- -- Other, net................................... -- -- (2) ---- ----- ---- Provision for income tax expense (benefit). $ 85 $(185) $149 ==== ===== ====
93 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (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, ------------ 2010 2009 ---- ---- (IN MILLIONS) Deferred income tax assets: Policyholder liabilities and receivables. $243 $259 Net unrealized investment losses......... -- 18 Investments, including derivatives....... 21 -- Loss and credit carryforwards............ 106 118 Other.................................... 1 2 ---- ---- 371 397 ---- ---- Deferred income tax liabilities: DAC...................................... 892 777 Net unrealized investment gains.......... 59 -- Investments, including derivatives....... -- 20 ---- ---- 951 797 ---- ---- Net deferred income tax liability...... $580 $400 ==== ====
Capital loss carryforwards of $64 million at December 31, 2010 will expire beginning in 2011. Tax credit carryforwards of $83 million at December 31, 2010 will expire beginning in 2014. The Company participates in a tax sharing agreement with MICC. Under this agreement current federal income tax expense (benefit) is computed on a separate return basis and provides that members shall make payments or receive reimbursements to the extent that their income (loss) contributes to or reduces consolidated federal tax expense. Pursuant to this tax sharing agreement, the amounts due from affiliates include $25 million and $137 million for 2010 and 2008, respectively, and the amounts due to affiliates include $14 million for 2009. Pursuant to Internal Revenue Service ("IRS") rules, MICC and its subsidiaries, including the Company, are excluded from MetLife's life/non-life consolidated federal tax return for the five years subsequent to MetLife's July 2005 acquisition of MICC. In 2011, MICC and its subsidiaries, including the Company, are expected to join the consolidated return and become a party to the MetLife tax sharing agreement. Accordingly, the Company's losses will be eligible to be included in the consolidated return and the resulting tax savings to MetLife will generate a payment to the Company for the losses used. The Company files income tax returns with the U.S. federal government and various state and local jurisdictions. The Company is under continuous examination by the IRS and other tax authorities in jurisdictions in which the Company has significant business operations. The income tax years under examination vary by jurisdiction. With a few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2003. The IRS exam of the next audit cycle, years 2003 to 2006, began in April 2010. The U.S. Treasury Department and the IRS have indicated that they intend to address through regulations the methodology to be followed in determining the dividends received deduction ("DRD"), related to variable life insurance and annuity contracts. The DRD reduces the amount of dividend income subject to tax and is a significant component of the difference between the actual tax expense and expected amount determined using the federal statutory tax rate of 35%. Any regulations that the IRS ultimately proposes for issuance in this area 94 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 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 years ended December 31, 2010 and 2009, the Company recognized an income tax benefit of $28 million and $50 million, respectively, related to the separate account DRD. The 2010 benefit included an expense of $15 million related to a true-up of the 2009 tax return. The 2009 benefit included a benefit of $17 million related to a true-up of the 2008 tax return. 10. CONTINGENCIES, COMMITMENTS AND GUARANTEES CONTINGENCIES LITIGATION Sales Practices Claims. Over the past several years, the Company and certain of its affiliates have faced numerous claims, including class action lawsuits, 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 have been resolved through settlement. Other sales practices claims have been won by dispositive motions or have gone to trial. 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. Retained Asset Account Matters. The New York Attorney General announced on July 29, 2010, that his office had launched a major fraud investigation into the life insurance industry for practices related to the use of retained asset accounts as a settlement option for death benefits and that subpoenas requesting comprehensive data related to retained asset accounts had been served on MetLife and other insurance carriers. MetLife received the subpoena on July 30, 2010. MetLife and its affiliates have received requests for documents and information from U.S. congressional committees and members, as well as various state regulatory bodies, including the New York Insurance Department. It is possible that other state and federal regulators or legislative bodies may pursue similar investigations or make related inquiries. Management cannot predict what effect any such investigations might have on the Company's earnings or the availability of the Company's retained asset account known at the TCA, but management believes that the Company's financial statements taken as a whole would not be materially affected. Management believes that any allegations that information about the TCA is not adequately disclosed or that the accounts are fraudulent or otherwise violate state or federal laws are without merit. Various litigation, claims and assessments against the Company, in addition to those discussed above and those otherwise provided for in the Company's financial statements, have arisen in the course of the Company's business. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company's compliance with applicable insurance and other laws and regulations. It is not possible to predict the ultimate outcome or provide reasonable ranges of potential losses of all pending investigations and legal proceedings. 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 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. 95 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 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. Assets and liabilities held for insolvency assessments were as follows:
DECEMBER 31, ------------ 2010 2009 ---- ---- (IN MILLIONS) Other Assets: Premium tax offset for future undiscounted assessments....... $ 2 $2 Premium tax offsets currently available for paid assessments. -- 1 --- -- $ 2 $3 === == Other Liabilities: Insolvency assessments....................................... $ 3 $3 === ==
Assessments levied against the Company were less than $1 million for each of the years ended December 31, 2010, 2009 and 2008. 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 $435 million and $439 million at December 31, 2010 and 2009, respectively. 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 $80 million and less than $1 million at December 31, 2010 and 2009, respectively. COMMITMENTS TO FUND PRIVATE CORPORATE BOND INVESTMENTS The Company commits to lend funds under private corporate bond investments. The amounts of these unfunded commitments were $66 million and $125 million at December 31, 2010 and 2009, 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 96 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the 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. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments. 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 had no liability for indemnities, guarantees and commitments at both December 31, 2010 and 2009. 11. EQUITY CAPITAL CONTRIBUTIONS The Company received cash contributions of $0, $575 million and $985 million from MICC during the years ended December 31, 2010, 2009 and 2008, respectively. STATUTORY EQUITY AND INCOME MLI-USA's state of domicile imposes minimum risk-based capital ("RBC") requirements that were developed by the 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. MLI-USA exceeded the minimum RBC requirements for all periods presented herein. The NAIC has adopted the Codification of Statutory Accounting Principles ("Statutory Codification"). Statutory Codification is 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 (the "Department") has adopted Statutory 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 Statutory Codification on the statutory capital and surplus of MLI-USA. 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 contracts and valuing securities on a different basis. In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus. The most significant assets not admitted by MLI-USA 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 three years. Statutory net income (loss) of MLI-USA, a Delaware domiciled insurer, was $2 million, ($24) million and ($482) million for the years ended December 31, 2010, 2009 and 2008, respectively. Statutory capital and surplus, as filed with the Department, was $1,454 million and $1,406 million at December 31, 2010 and 2009, respectively. 97 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) DIVIDEND RESTRICTIONS Under Delaware State Insurance Law, MLI-USA 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). MLI-USA will be permitted to pay a 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 either approves the distribution of the dividend or 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 shareholders. During the years ended December 31, 2010, 2009 and 2008, MLI-USA did not pay dividends to MICC. Because MLI-USA's statutory unassigned funds was negative at December 31, 2010, MLI-USA cannot pay any dividends in 2011 without prior regulatory approval. OTHER COMPREHENSIVE INCOME (LOSS) The following table sets forth the reclassification adjustments required for the years ended December 31, 2010, 2009 and 2008 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, ----------------------- 2010 2009 2008 ----- ----- ----- (IN MILLIONS) Holding gains (losses) on investments arising during the year...................... $ 346 $ 433 $(494) Income tax effect of holding gains (losses)........................................ (122) (153) 173 Reclassification adjustments: Recognized holding (gains) losses included in current year income................. (29) 11 28 Amortization of premiums and accretion of discounts associated with investments... (18) (16) (11) Income tax effect................................................................. 17 2 (6) Allocation of holding (gains) losses on investments relating to other policyholder amounts.......................................................................... (80) (59) 68 Income tax effect of allocation of holding (gains) losses to other policyholder amounts.......................................................................... 28 21 (24) ----- ----- ----- Other comprehensive income (loss)................................................. $ 142 $ 239 $(266) ===== ===== =====
98 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) 12. OTHER EXPENSES Information on other expenses was as follows:
YEARS ENDED DECEMBER 31, ----------------------- 2010 2009 2008 ------ ----- ----- (IN MILLIONS) Compensation................................... $ 221 $ 86 $ 74 Commissions.................................... 774 626 548 Volume-related costs........................... 92 270 339 Affiliated interest costs on ceded reinsurance. 102 47 35 Capitalization of DAC.......................... (880) (727) (717) Amortization of DAC............................ 423 196 509 Interest expense on debt and debt issue costs.. -- -- 13 Premium taxes, licenses & fees................. 34 29 24 Professional services.......................... 13 -- -- Rent........................................... 25 -- -- Other.......................................... 220 86 (13) ------ ----- ----- Total other expenses........................ $1,024 $ 613 $ 812 ====== ===== =====
CAPITALIZATION AND AMORTIZATION OF DAC See Note 5 for a rollforward of DAC including impacts of capitalization and amortization. AFFILIATED EXPENSES Commissions, capitalization of DAC and amortization of DAC include the impact of affiliated reinsurance transactions. See Notes 7, 8 and 13 for discussion of affiliated expenses included in the table above. 13. RELATED PARTY TRANSACTIONS SERVICE AGREEMENTS The Company has entered into various agreements with affiliates for services necessary to conduct its activities. Typical services provided under these agreements include management, policy administrative functions, personnel, investment advice and distribution services. For certain of the agreements, charges are based on various performance measures or activity-based costing. The bases for such charges are modified and adjusted by management when necessary or appropriate to reflect fairly and equitably the actual incidence of cost incurred by the Company and/or affiliate. Expenses and fees incurred with affiliates related to these agreements, recorded in other expenses, were $1,123 million, $815 million and $675 million for the years ended 99 METLIFE INVESTORS USA INSURANCE COMPANY (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) December 31, 2010, 2009 and 2008, respectively. The aforementioned expenses and fees incurred with affiliates were comprised of the following:
YEARS ENDED DECEMBER 31, ----------------------- 2010 2009 2008 ------ ---- ---- (IN MILLIONS) Compensation.......... $ 220 $ 86 $ 73 Commissions........... 507 400 322 Volume-related costs.. 134 249 308 Professional services. 13 -- -- Rent.................. 25 -- -- Other................. 224 80 (28) ------ ---- ---- Total other expenses. $1,123 $815 $675 ====== ==== ====
Revenues received from affiliates related to these agreements were recorded as follows:
YEARS ENDED DECEMBER 31, ------------------------ 2010 2009 2008 ---- ---- ---- (IN MILLIONS) Universal life and investment-type product policy fees. $83 $59 $60 Other revenues......................................... $63 $39 $32
The Company had net receivables from affiliates of $104 million and $69 million at December 31, 2010 and 2009, respectively, related to the items discussed above. These amounts exclude affiliated reinsurance balances discussed in Note 7. See Notes 2 and 7 for additional related party transactions. 14. SUBSEQUENT EVENT The Company evaluated the recognition and disclosure of subsequent events for its December 31, 2010 consolidated financial statements. 15. SUBSEQUENT EVENT (UNAUDITED) As disclosed in Note 1, in October 2010, the FASB issued new guidance regarding accounting for deferred acquisition costs (ASU 2010-26, Financial Services -- Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts), ("ASU 2010-26"), effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2011. As a result, sales manager compensation and administrative costs currently capitalized by the Company will no longer be deferred. The Company plans to adopt ASU 2010-26 effective January 1, 2012 and to apply it retrospectively to all prior periods presented in its consolidated financial statements for all insurance contracts. The Company estimates that DAC will be reduced by approximately $450 million to $700 million and total equity will be reduced by approximately $300 million to $450 million, net of tax as of the date of adoption. In addition, the Company expects a reduction in prior period earnings as a result of applying the new guidance retrospectively. The final impacts may be different due to changes in financial market performance, DAC assumption updates and sales. 100 PART C OTHER INFORMATION ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS a. Financial Statements ------------------------------------------------------------------------------------------------ The following financial statements comprising each of the Sub-Accounts of the Separate Account are included in Part B hereof: 1. Report of Independent Registered Public Accounting Firm. 2. Statements of Assets and Liabilities as of December 31, 2010. 3. Statements of Operations for the year ended December 31, 2010. 4. Statements of Changes in Net Assets for the years ended December 31, 2010 and 2009. 5. Notes to the Financial Statements. The following consolidated financial statements of the Company are included in Part B hereof: 1. Report of Independent Registered Public Accounting Firm. 2. Consolidated Balance Sheets as of December 31, 2010 and 2009. 3. Consolidated Statements of Operations for the years ended December 31, 2010, 2009 and 2008. 4. Consolidated Statements of Stockholder's Equity for the years ended December 31, 2010, 2009 and 2008. 5. Consolidated Statements of Cash Flows for the years ended December 31, 2010, 2009 and 2008. 6. Notes to the Consolidated 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) (4) 2. Not Applicable. 3. (i) Principal Underwriter's and Selling Agreement (effective January 1, 2001) (4) (ii) Amendment to Principal Underwriter's and Selling Agreement (effective January 1, 2002) (4) (iii) Agreement and Plan of Merger (12-01-04) (MLIDC into GAD) (6) (iv) Form of Enterprise Selling Agreement 02-10 (MetLife Investors Distribution Company Sales Agreement) (12) 4. (i) Individual Flexible Purchase Payment Deferred Variable Annuity Contract (1) (ii) Death Benefit Rider - Principal Protection (1) (iii) Death Benefit Rider - Compounded Plus (1) (iv) Death Benefit Rider - (Annual Step-Up) (1) (v) Additional Death Benefit Rider - (Earnings Preservation Benefit) (1) (vi) Unisex Annuity Rates Rider (1) (vii) Endorsement (Name Change - effective March 1, 2001. MetLife Investors USA Insurance Company; formerly Security First Life Insurance Company) MI - 2023 (2) (viii) Individual Retirement Annuity Endorsement 8023.1 (9/02) (4) (ix) Roth Individual Retirement Annuity Endorsement 9024.1 (9/02) (4) (x) 401(a)/403(a) Plan Endorsement 8025.1 (9/02) (4) (xi) Tax Sheltered Annuity Endorsement 8026.1 (9/02) (4) (xii) Simple Individual Retirement Annuity Endorsement 8276 (9/02) (4) (xiii) Designated Beneficiary Non-Qualified Annuity Endorsement MLIU-NQ-1 (11/05)-I (5) (xiv) Fixed Account Rider 8012 (11/00) (6)
(xv) Guaranteed Minimum Death Benefit (GMDB) Rider MLIU-640-1 (4/08) (EDB II, EDB III, EDB Max II, and EDB Max III) (8) (xvi) Form of Contract Schedule for Guaranteed Minimum Death Benefit (GMDB) Rider MLIU-EDB (4/08) (EDB II, EDB III, EDB Max II, and EDB Max III) (10) (xvii) Guaranteed Minimum Income Benefit Rider - Living Benefit MLIU-560-4 (4/08) (GMIB Plus III, GMIB Plus IV, GMIB Max II, and GMIB Max III) (8) (xviii) Form of Contract Schedule for Guaranteed Minimum Income Benefit (GMIB) Rider (MLIU-EGMIB (4/08) (GMIB Plus III, GMIB Plus IV, GMIB Max II, and GMIB Max III) (10) (xix) Form of Spousal Continuation Endorsement MLIU-GMIB (2/10)-E (12) (xx) Form of Qualified Distribution Program Endorsement MLIU-RMD (7/10)-E (GMIB Plus III, GMIB Plus IV, GMIB Max II, GMIB Max III, EDB II, EDB III, EDB Max II, and EDB Max III) (13) (xxi) Form of Tax-Sheltered Annuity Endorsement MLIU-398-3 (12/08) (14) (xxii) Form of Contract Schedule for the Variable Annuity Contract 8028-6-(9/10) (GMIB Max II/GMIB Max III/EDB Max II/EDB Max III) (14) 5. Form of Variable Annuity Application 8029 (6/11) APPUSAVA Sep 2011 [VA, C, L] (15) 6. (i) Copy of Restated Articles of Incorporation of the Company (4) (ii) Copy of the Bylaws of the Company (4) (iii) Certificate of Amendment of Certificate of Incorporation filed 10/01/79 and signed 9/27/79 (4) (iv) Certificate of Change of Location of Registered Office and/or Registered Agent filed 2/26/80 and effective 2/8/80 (4) (v) Certificate of Amendment of Certification of Incorporation signed 4/26/83 and certified 2/12/85 (4) (vi) Certificate of Amendment of Certificate of Incorporation filed 10/22/84 and signed 10/19/84 (4) (vii) Certificate of Amendment of Certificate of Incorporation certified 8/31/94 and adopted 6/13/94 (4) (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 (4) 7. (i) Reinsurance Agreement between MetLife Investors USA Insurance Company and Metropolitan Life Insurance Company (3) (ii) Automatic Reinsurance Agreement between MetLife Investors USA Insurance Company and Exeter Reassurance Company, Ltd. (3) (iii) Reinsurance Agreement and Administrative Services Agreement between MetLife Investors USA Insurance Company and Metropolitan Life Insurance Company (effective 01-01-06) (9) (iv) Automatic Reinsurance Agreement between MetLife Investors USA Insurance Company and MetLife Insurance Company of Connecticut (effective Janauary 1, 2011) (16) (v) Amendment No. 1 to Automatic Reinsurance Agreement effective as of January 1, 2011 (Agreement) between MetLife Investors USA Insurance Company (Cedent) and MetLife Insurance Company of Connecticut (Reinsurer) amendmed as of April 29, 2011 (16) 8. (i) 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) (4) (ii) Participation Agreement Among Metropolitan Series Fund, Inc., MetLife Advisors, LLC, MetLife Investors Distribution Company and MetLife Investors USA Insurance Company (effective 08-31-07) (7) (iii) First Amendment to Participation Agreement (effective 02-12-01) Among Met Investors Series Trust, Met Investors Advisory Corp., MetLife Investors Distribution Company and MetLife Investors USA Insurance Company (effective 02-01-08); and Second Amendment to the Participation Agreement (effective 02-12-01) Among Met Investors Series Trust, MetLife Advisers, LLC, MetLife Investors Distribution Company, and MetLife Investors USA Insurance Company (effective 05-01-09) (11) 9. Opinion of Counsel (17) 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, Bennett D. Kleinberg, Susan A. Buffum, Elizabeth M. Forget, George Foulke, Jay S. Kaduson, Paul A. Sylvester, James J. Reilly, Kevin J. Paulson, Robert E. Sollmann, Jr. and Jeffrey A. Tupper (18) (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 Post-Effective Amendment No. 1 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on April 13, 2001. (3) 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. (4) 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. (5) 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. (6) 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. (7) incorporated herein by reference to Registrant's Post-Effective Amendment No. 26 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on October 31, 2007. (8) 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. (9) incorporated herein by reference to Registrant's Post-Effective Amendment No. 31 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on April 15, 2008. (10) incorporated herein by reference to Registrant's Pre-Effective Amendment No. 2 to Form N-4 (File Nos. 333-176374 and 811-03365) filed electronically on September 19, 2011. (11) incorporated herein by reference to Registrant's Post-Effective Amendment No. 33 to Form N-4 (File Nos. 333-54466 and 811-03365) filed electronically on April 22, 2009. (12) incorporated herein by reference to Registrant's Post-Effective Amendment No. 35 to Form N-4 (File Nos. 333-54466 and 811-03365) filed electronically on April 22, 2010. (13) incorporated herein by reference to Registrant's Post-Effective Amendment No. 6 to Form N-4 (File Nos. 333-152385 and 811-03365) filed electronically on June 11, 2010. (14) incorporated herein by reference to Registrant's Post-Effective Amendment No. 2 to Form N-4 (File Nos. 333-156648 and 811-03365) filed electronically on March 22, 2011. (15) incorporated herein by reference to Registrant's Form N-4 (File Nos. 333-176374 and 811-03365) filed electronically on August 17, 2011. (16) incorporated herein by reference to Registrant's Pre-Efective Amendment No. 1 to Form N-4 (File Nos. 333-176374 and 811-03365) filed electronically on September 2, 2011. (17) incorporated herein by reference to Registrant's Form N-4 (File Nos. 333-176668 and 811-03365) filed electronically on September 2, 2011. (18) incorporated herein by reference to Registrant's Pre-Efective Amendment No. 1 to Form N-4 (File Nos. 333-176668 and 811-03365) filed electronically on September 19, 2011.
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, Chief Executive Officer 10 Park Avenue Morristown, NJ 07962 Susan A. Buffum Director 10 Park Avenue Morristown, NJ 07962 James J. Reilly Vice President-Finance (principal financial officer and 501 Boylston Street principal accounting officer) Boston, MA 02116
Name and Principal Business Address Positions and Offices with Depositor Jay S. Kaduson Director and Vice President 10 Park Avenue Morristown, NY 07962 Bennett D. Kleinberg Director and Vice President 1300 Hall Boulevard Bloomfield, CT 06002-2910 Elizabeth M. Forget Director and Executive Vice President 1095 Avenue of the Americas New York, NY 10036 George Foulke Director 300 Davidson Avenue Somerset, NJ 08873 Robert E. Sollmann, Jr. Director and Executive Vice President 1095 Avenue of the Americas New York, NY 10036 Paul A. Sylvester Director 10 Park Avenue Morristown, NJ 07962 Kevin J. Paulson Director and Senior Vice President 1 MetLife Plaza 27-01 Queen Plaza North Long island City, NY 11101 Jeffrey A. Tupper Director and Assistant Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Isaac Torres Secretary 1095 Avenue of the Americas New York, NY 10036 Debora L. Buffington Vice President, Director of Compliance 5 Park Plaza Suite 1900 Irvine, CA 92614 Thomas G. Hogan, Jr. Vice President 400 Atrium Drive Somerset, NJ 08873 Enid M. Reichert 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 501 Route 22 Bridgewater, NJ 08807 Karen A. Johnson Vice President 501 Boylston Street Boston, MA 02116 Roberto Baron Vice President 1095 Avenue of the Americas New York, NY 10036 Paul L. LeClair Vice President 501 Boylston Street Boston, MA 02116
Name and Principal Business Address Positions and Offices with Depositor Gregory E. Illson Vice President 501 Boylston Street Boston, MA 02116 Lisa S. Kuklinski Vice President 1095 Avenue of the Americas New York, NY 10036 Jeffrey P. Halperin Vice President 334 Madison Avenue P O Box 1949 Morristown, NJ 07960 Marlene B. Debel Treasurer 1095 Avenue of the Americas New York, NY 10036 Mark S. Reilly Vice President 1300 Hall Boulevard Bloomfield, CT 06002-2910 Gene L. Lunman Vice President 1300 Hall Boulevard Bloomfield, CT 06002-2910 Robert L. Staffier Vice President 501 Boylston Street Boston, MA 02116 Scott E. Andrews Vice President 4700 Westown Pkwy., Suite 200 West Des Moines, IA 50266 Rashid Ismail Vice President 5 Park Plaza, Suite 1900 Irvine, CA 92614 Manish P. Bhatt Vice President 501 Route 22 Bridgewater, NJ 08807 Michael F. Rogalski Vice President 501 Route 22 Bridgewater, NJ 08807 William J. Raczko Vice President 501 Route 22 Bridgewater, NJ 08807 William D. Cammarata Vice President 18210 Crane Nest Drive Tampa, FL 33647 Henry W. Blaylock Vice President 1095 Avenue of the Americas New York, NY 10036 Cynthia Mallett Vice President One Financial Center, 20th Floor Boston, MA 02111 Sabrina K. Model Vice President 501 Route 22 Bridgewater, MJ 08807 John J. Iwanicki Vice President 18210 Crane Nest Drive Tampa, FL 33647 Nan Tecotzky Vice President 200 Park Avenue, 12th Floor New York, NY 10166
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 SEPTEMBER 30, 2011 The following is a list of subsidiaries of MetLife, Inc. updated as of September 30, 2011. 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) 1. Federal Flood Certification Corp. (TX) 2. MetLife Home Loans LLC (DE) C. Exeter Reassurance Company, Ltd. (Bermuda) D. MetLife Taiwan Insurance Company Limited (Taiwan) E. Metropolitan Tower Life Insurance Company (DE) 1. 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. d) PREFCO Vingt LLC (CT) e) 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. 2. Plaza Drive Properties, LLC (DE) 3. 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 Chile Inversiones Limitada (Chile)- 91.15% is owned by MetLife, Inc., 8.84% is owned by Inversiones MetLife Holdco Dos Limitada and 0.01% 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. G. Metropolitan Life Seguros de Vida S.A. (Uruguay) - 99.9994% is owned by MetLife, Inc. and 0.0006% is owned by Oscar Schmidt. H. MetLife Securities, Inc. (DE) I. Enterprise General Insurance Agency, Inc. (DE) 1. MetLife General Insurance Agency of Texas, Inc. (TX) 2. MetLife General Insurance Agency of Massachusetts, Inc. (MA) 1 J. 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) K. MetLife Investors Insurance Company (MO) L. First MetLife Investors Insurance Company (NY) M. Walnut Street Securities, Inc. (MO) N. Newbury Insurance Company, Limited (Bermuda) O. MetLife Investors Group, Inc. (DE) 1. MetLife Investors Distribution Company (MO) 2. MetLife Advisers, LLC (MA) 2 P. 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) i) 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. ii) 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 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)- 99.99935% is owned by MetLife International Holdings, Inc. and 0.00065% is owned by Natiloporterm Holdings, Inc. 5. MetLife Seguros de Vida S.A. (Argentina)- 96.7372% is owned by MetLife International Holdings, Inc. and 3.2628% is owned by Natiloportem Holdings, Inc. 6. Metropolitan Life Seguros e Previdencia Privada S.A. (Brazil)- 66.6617540% is owned by MetLife International Holdings, Inc., 33.3382457% is owned by MetLife Worldwide Holdings, Inc. and 0.0000003% is owned by Natiloportem Holdings, Inc. 7. MetLife Global, Inc. (DE) 8. MetLife Administradora de Fundos Multipatrocinados Ltda. (Brazil) - 95.46% is owned by MetLife International Holdings, Inc. and 4.54% is owned by Natiloportem Holdings, Inc. 9. MetLife Insurance Limited (United Kingdom) 10. MetLife Limited (United Kingdom) 11. MetLife Insurance S.A./NV (Belgium) - 99.99999% of MetLife Insurance S.A./NV is owned by MetLife International Holdings, Inc. and 0.00001% by Natiloportem Holdings, Inc. 12. MetLife Services Limited (United Kingdom) 13. MetLife Europe R Limited (Ireland) 14. MetLife Seguros de Retiro S.A. (Argentina) - 96.8488% is owned by MetLife International Holdings, Inc. and 3.1512% is owned by Natiloportem Holdings, Inc. 15. Best Market S.A. (Argentina) - 5% of the shares are held by Natiloportem Holdings, Inc. and 95% is owned by MetLife International Holdings Inc. 16. Compania Previsional MetLife S.A. (Brazil) - 95.46% is owned by MetLife International Holdings, Inc. and 4.54% is owned by Natiloportem Holdings, Inc. a) Met AFJP S.A. (Argentina) - 75.41% of the shares of Met AFJP S.A. are held by Compania Previsional MetLife S.A., 19.59% is owned by MetLife Seguros de Vida S.A., 3.97% is held by Natiloportem Holdings, Inc. and 1.03% is held by MetLife Seguros de Retiro S.A. 17. MetLife Worldwide Holdings, Inc. (DE) a) MetLife Towarzystwo Ubezpieczen na Zycie Spolka Akcyjna (Poland) b) MetLife Direct Co., LTD. (Japan) c) MetLife Limited (Hong Kong) 18. MetLife NC Limited (Ireland) 19. MetLife Europe Services Limited (Ireland) 20. MetLife International Limited, LLC (DE) 21. MetLife Planos Odontologicos Ltda. (Brazil) - 99.999% is owned by MetLife International Holdings, Inc. and .001% is owned by Natiloportem Holdings, Inc. 22. MetLife Ireland Holdings One Limited (Ireland) a) MetLife Global Holdings Corporation S.A. de C.V. (Mexico) - 98.9% is owned by MetLife Ireland Holdings One Limited and 1.1% is owned by MetLife International Limited, LLC. i) MetLife Ireland Treasury Limited (Ireland) a) MetLife General Insurance Limited (Australia) b) MetLife Insurance Limited (Australia) 1) MetLife Services (Singapore) PTE Limited (Singapore) 2) The Direct Call Centre PTY Limited (Australia) 3) MetLife Investments PTY Limited (Australia) aa) MetLife Insurance and Investment Trust (Australia) - MetLife Insurance and Investment Trust is a trust vehicle, the trustee of which is MetLife Investments PTY Limited ("MIPL"). MIPL is a wholly owned subsidiary of MetLife Insurance Limited. ii) Metropolitan Global Management, LLC (DE) - 99.7% is owned by MetLife Global Holdings Corporation, S.A. de C.V. and 0.3% is owned by MetLife International Holdings, Inc. a) MetLife Pensiones Mexico S.A. (Mexico)- 97.4738% is owned by Metropolitan Global Management, LLC and 2.5262% is owned by MetLife International Holdings, Inc. b) MetLife Mexico Servicios, S.A. de C.V. (Mexico) - 98% is owned by Metropolitan Global Management, LLC and 2% is owned by MetLife International Holdings, Inc. c) MetLife Mexico S.A. (Mexico)- 98.70541% is owned by Metropolitan Global Management, LLC and 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. and 0.01% is owned by MetLife Pensiones Mexico S.A. aa) 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. bb) 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. cc) MetA SIEFORE Adicional, 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. dd) Met3 SIEFORE Basica, 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. ee) Met4 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. ff) Met5 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. 2) ML Capacitacion Comercial S.A. de C.V. (Mexico) - 99% is owned by MetLife Mexico S.A. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. d) MetLife Saengmyoung Insurance Co. Ltd. (also known as MetLife Insurance Company of Korea Limited (South Korea)- 14.64% is owned by MetLife Mexico, S.A. and 85.36% is owned by Metropolitan Global Management, LLC. 23. Inversiones Metlife Holdco Dos Limitada (Chile)- 99% is owned by Metlife International Holdings, Inc. and 1% is owned by Natiloportem Holdings, Inc. 24. MetLife Asia Pacific Limited (Hong Kong) Q. Metropolitan Life Insurance Company (NY) 1. 334 Madison Euro Investments, Inc. (DE) 2. St. James Fleet Investments Two Limited (Cayman Islands) a) Park Twenty Three Investments Company (United Kingdom) i) Convent Station Euro Investments Four Company (United Kingdom) a) One Madison Investments (Cayco) Limited (Cayman Islands)- 99.99999% voting control of One Madison Investments (Cayco) Limited is held by Convent Station Euro Investments Four Company and 0.00001% by St. James Fleet Investments Two Limited. 3. 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. 4. MLIC Asset Holdings II LLC (DE) 3 5. Thorngate, LLC (DE) 6. Alternative Fuel I, LLC (DE) 7. Transmountain Land & Livestock Company (MT) 8. MetPark Funding, Inc. (DE) 9. HPZ Assets LLC (DE) 10. Missouri Reinsurance (Barbados), Inc. (Barbados) 11. Metropolitan Tower Realty Company, Inc. (DE) a) Midtown Heights, LLC (DE) 12. MetLife Real Estate Cayman Company (Cayman Islands) 13. MetCanada Investments Ltd. (Canada) 14. MetLife Private Equity Holdings, LLC (DE) 15. 23rd Street Investments, Inc. (DE) a) MetLife Capital Credit L.P. (DE)- 1% General Partnership interest is held by 23rd Street Investments, Inc. and 99% Limited Partnership interest is held by Metropolitan Life Insurance Company. b) MetLife Capital Limited Partnership (DE)- 1% General Partnership interest is held by 23rd Street Investments, Inc. and 99% Limited Partnership interest is held by Metropolitan Life Insurance Company. 16. Hyatt Legal Plans, Inc. (DE) a) Hyatt Legal Plans of Florida, Inc. (FL) 17. MetLife Holdings, Inc. (DE) a) MetLife Credit Corp. (DE) b) MetLife Funding, Inc. (DE) 4 18. MetLife Investments Asia Limited (Hong Kong) 19. MetLife Investments Limited (United Kingdom)- 23rd Street Investments, Inc. holds one share of MetLife Investments Limited. 20. MetLife Latin America Asesorias e Inversiones Limitada (Chile)- 23rd Street Investments, Inc. holds 0.01% of MetLife Latin America Asesorias e Inversiones Limitada. 21. New England Life Insurance Company (MA) a) New England Securities Corporation (MA) 22. GenAmerica Financial, LLC (DE) a) GenAmerica Capital I (DE) b) General American Life Insurance Company (MO) i) GALIC Holdings LLC (DE) 5 23. Corporate Real Estate Holdings, LLC (DE) 24. Ten Park SPC (Cayman Islands) - 1% voting control of Ten Park SPC is held by 23rd Street Investments, Inc. 25. MetLife Tower Resources Group, Inc. (DE) 26. Headland - Pacific Palisades, LLC (CA) 27. Headland Properties Associates (CA) - 1% is owned by Headland - Pacific Palisades, LLC and 99% is owned by Metropolitan Life Insurance Company. 28. WFP 1000 Holding Company GP, LLC (DE) 29. White Oak Royalty Company (OK) 30. 500 Grant Street GP LLC (DE) 31. 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. 32. MetLife Canada/MetVie Canada (Canada) 33. MetLife Retirement Services LLC (NJ) a) MetLife Investment Funds Services LLC (NJ) i) MetLife Associates LLC (DE) 34. Euro CL Investments LLC (DE) 35. MEX DF Properties, LLC (DE) 36. 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 37. MetLife Properties Ventures, LLC (DE) a) Citypoint Holdings II Limited (United Kingdom) 38. Housing Fund Manager, LLC (DE) a) MTC Fund I, LLC (DE) 0.01% of MTC Fund I, LLC is held by Housing Fund Manager, LLC. - Housing Fund Manager, LLC is the managing member LLC and the remaining interests are held by a third party member. b) MTC Fund II, LLC (DE) - 0.01% of MTC Fund II, LLC is held by Housing Fund Manager, LLC. - Housing Fund Manager, LLC is the managing member LLC and the remaining interests are held by a third party member. c) MTC Fund III, LLC (DE) - 0.01% of MTC Fund III, LLC is held by Housing Fund Manager, LLC. - Housing Fund Manager, LLC is the managing member LLC and the remaining interests are held by a third party member. 39. MLIC Asset Holdings, LLC (DE) 40. 85 Broad Street Mezzanine LLC (DE) a) 85 Broad Street LLC (DE) 41. The Building at 575 Fifth Avenue Mezzanine LLC (DE) a) The Building at 575 Fifth LLC (DE) 42. CML Columbia Park Fund I, LLC (DE)- 10% of membership interest is held by MetLife Insurance Company of Connecticut and 90% membership interest is held by Metropolitan Life Insurance Company. 43. Para-Met Plaza Associates (FL)- 75% of the General Partnership is held by Metropolitan Life Insurance Company and 25% of the General Partnership is held by Metropolitan Tower Realty Company, Inc. 44. MLIC CB Holdings LLC (DE) R. MetLife Capital Trust IV (DE) S. MetLife Insurance Company of Connecticut (CT) - 86.72% is owned by MetLife, Inc. and 13.28% by MetLife Investors Group, Inc. 1. MetLife Property Ventures Canada ULC (Canada) 2. Pilgrim Alternative Investments Opportunity Fund I, LLC (DE) - 67% is owned by MetLife Insurance Company of Connecticut and 33% is owned by third party. 3. 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. 4. Metropolitan Connecticut Properties Ventures, LLC (DE) a) ML/VCC UT West Jordan, LLC (DE) 5. MetLife Canadian Property Ventures LLC (NY) 6. Euro TI Investments LLC (DE) 7. Greenwich Street Investments, L.L.C. (DE) a) Greenwich Street Capital Offshore Fund, Ltd. (Virgin Islands) b) Greenwich Street Investments, L.P. (DE) 8. One Financial Place Corporation (DE) - 100% is owned in the aggregate by MetLife Insurance Company of Connecticut. 9. Plaza LLC (CT) a) Tower Square Securities, Inc. (CT) 10. TIC European Real Estate LP, LLC (DE) 11. MetLife European Holdings, LLC (DE) a) MetLife Europe Limited (Ireland) i) MetLife Pension Trustees Limited (United Kingdom) b) MetLife Assurance Limited (United Kingdom) 12. Travelers International Investments Ltd. (Cayman Islands) 13. Euro TL Investments LLC (DE) 14. Corrigan TLP LLC (DE) 15. TLA Holdings LLC (DE) a) The Prospect Company (DE) i) Panther Valley, Inc. (NJ) 16. TRAL & Co. (CT) - TRAL & Co. is a general partnership. Its partners are MetLife Insurance Company of Connecticut and Metropolitan Life Insurance Company. 17. MetLife Investors USA Insurance Company (DE) a) MetLife Renewables Holding, LLC (DE) i) Greater Sandhill I, LLC (DE) 18. TLA Holdings II LLC (DE) 19. TLA Holdings III LLC (DE) 20. MetLife Greenstone Southeast Ventures, LLC (DE) - 95% of MetLife Greenstone Southeast Ventures, LLC is owned by MetLife Insurance Company of Connecticut and 5% is owned by Metropolitan Connecticut Properties Ventures, LLC. a) MLGP Lakeside, LLC (DE) T. MetLife Reinsurance Company of South Carolina (SC) U. MetLife Investment Advisors Company, LLC (DE) V. MetLife Standby I, LLC (DE) 1. MetLife Exchange Trust I (DE) W. MetLife Services and Solutions, LLC (DE) 1. MetLife Solutions Pte. Ltd. (Singapore) a) MetLife Services East Private Limited (India) b) MetLife Global Operations Support Center Private Limited (India) - 99.99999% is owned by MetLife Solutions Pte. Ltd. and 0.00001% is owned by Natiloportem Holdings, Inc. X. SafeGuard Health Enterprises, Inc. (DE) 1. MetLife Health Plans, Inc. (DE) 2. SafeGuard Health Plans, Inc. (CA) 3. SafeHealth Life Insurance Company (CA) 4. SafeGuard Health Plans, Inc. (FL) 5. SafeGuard Health Plans, Inc. (NV) 6. SafeGuard Health Plans, Inc. (TX) Y. MetLife Capital Trust X (DE) Z. Cova Life Management Company (DE) AA. MetLife Reinsurance Company of Charleston (SC) AB. MetLife Reinsurance Company of Vermont (VT) AC. Delaware American Life Insurance Company (DE) 1. GBN, LLC (DE) AD. American Life Insurance Company (ALICO) (US) 1. ALICO Nagasaki Operation Yugen Kaisha (Japan) 2. Communication One Kabushiki Kaisha (Japan) 3. Financial Learning Kabushiki Kaisha (Japan) 4. Pharaonic American Life Insurance Company (Egypt) - 84.125% of Pharaonic American Life Insurance Company is owned by ALICO and the remaining interests are owned by third parties. 5. A.I.G. Limited (Nigeria) 6. ALICO Limited (Nigeria) 7. American Life Limited (Nigeria) 8. American Life Insurance Company (Pakistan) Ltd. (Pakistan) - 66.47% of American Life Insurance Company (Pakistan) Ltd. is owned by ALICO and the remaining interests are owned by third parties. 9. American Life Hayat Sigorta A.S. (Turkey) 10. ALICO (Bulgaria) Zhivotozastrahovatelno Druzestvo EAD (Bulgaria) 11. Amcico pojist'ovna a.s. (Czech Republic) 12. MetLife S.A. (France) a) ALICO Direct (France) - 50% of ALICO Direct is owned by MetLife S.A. and the remaining interests by AIG Europe, S.A. b) MetLife Solutions S.A.S. (France) 13. ALICO Mutual Fund Management Company (Greece) - 90% of ALICO Mutual Fund Management Company is owned by ALICO and the remaining interests are owned by third parties. 14. Hestis S.A.S. (France) - 66.06% of Hestis S.A.S. is owned by ALICO and the remaining interests are owned by third parties. 15. AHICO First American Hungarian Insurance Company (Elso Amerikai-Magyar Biztosito) Zrt (Hungary) a) First Hungarian-American Insurance Agency Limited (Hungary) 16. ALICO Life International Limited (Ireland) 17. ALICO Isle of Man Limited (Isle of Man) 18. ALICO Italia S.p.A. (Italy) a) Agenvita S.r.L. (Italy) - 95% of Agenvita S.r.L. is owned by ALICO Italia S.p.A., the remaining 5% is owned by ALICO. 19. AMPLICO Life-First American Polish Life Insurance & Reinsurance Company, S.A. (Poland) a) Amplico Services Sp z.o.o. (Poland) b) AMPLICO Towartzystwo Funduszky Inwestycyjnych, S.A. (Poland) c) AMPLICO Powszechne Towartzystwo Emerytalne S.A. (Poland) - 50% of AMPLICO Powszechne Towarzystwo Emerytalne S.A. is owned by AMPLICO Life-First American Polish Life Insurance & Reinsurance Company, S.A. and the remaining 50% is owned by ALICO. 20. ALICO Asigurari Romania S.A. (Romania) a) ALICO Societate de Administrare a unui Fond de Pensii Administrat Privat S.A. (Romania) - 99.9748% of ALICO Societate de Administrare a unui Fond de Pensii Administrat Privat S.A. is owned by ALICO Asigurari Romania S.A. and .0252% is owned by AMPLICO Services Sp z.o.o. b) ALICO Training and Consulting S.R.L. (Romania) 21. International Investment Holding Company Limited (Russia) 22. ALICO European Holdings Limited (Ireland) a) ZAO Master D (Russia) i) ZAO ALICO Insurance Company (Russia) - 51% of ZAO ALICO Insurance Company is owned by ZAO Master D and 49% is owned by ALICO. 23. MetLife Akcionarska Drustvoza za Zivotno Osiguranje (Serbia) 24. AMSLICO poist'ovna ALICO a.s. (Slovakia) a) ALICO Services Central Europe s.r.o. (Slovakia) b) ALICO Funds Central Europe sprav.spol., a.s. (Slovakia) 25. ALICO AIG Europe A.I.E. (Spain) - 50% of Alico AIG Europe A.I.E. is owned by ALICO and the remaining interests are owned by a third party. 26. ALICO Gestora de Fondos y Planos de Pensiones S.A. (Spain) 27. ALICO Management Services Limited (United Kingdom) 28. ZEUS Administration Services Limited (United Kingdom) 29. ALICO Trustees (UK) Ltd. (United Kingdom) - 50% of ALICO Trustees (UK) Ltd. is owned by ALICO and the remaining interests are owned by International Technical and Advisory Services Limited. 30. PJSC ALICO Ukraine (Ukraine) 31. Borderland Investments Limited (USA-Delaware) a) ALICO Hellas Single Member Limited Liability Company (Greece) 32. International Technical and Advisory Services Limited (USA-Delaware) 33. International Services Incorporated (USA-Delaware) 34. ALICO Operations Inc. (USA-Delaware) a) ALICO Asset Management Corp. (Japan) 35. ALICO Compania de Seguros de Retiro, S.A. (Argentina) - 90% of ALICO Compania de Seguros de Retiro, S.A. is owned by ALICO and 10% by International Technical & Advisory Services. 36. ALICO Compania de Seguros, S.A. (Argentina) - 90% of ALICO Compania de Seguros, S.A. is owned by ALICO and 10% by International Technical & Advisory Services. 37. MetLife Colombia Seguros de Vida S.A. (Colombia) - 94.989811% of MetLife Colombia Seguros de Vida S.A. is owned by ALICO, 5.0100030% is owned by International Technical and Advisory Services Limited and the remaining interests are owned by third parties. 38. Inversiones Interamericana S.A. (Chile) 99.99% of Inversiones Interamericana S.A. is owned by ALICO and .01% by International Technical & Advisory Services. a) Administradora de Fondos Para la Vivienda Intercajas S.A. (Chile) - 40% of Administradora De Fondos Para la Vivienda Intercajas S.A. is owned by Inversiones Interamericana S.A. and the remaining interests are owned by a third party. b) La Interamericana Compania de Seguros de Vida S.A. (Chile) c) ALICO Costa Rica S.A. (Costa Rica) - 99.99% of ALICO Costa Rica S.A. is owned by Inversiones Interamericana S.A. and .01% by La Interamericana Compania de Seguros de Vida S.A. d) Legal Chile S.A. (Chile) - 51% of Legal Chile S.A. is owned by Inversiones Interamericana S.A. and the remaining interests by a third party. i) Legagroup S.A. (Chile) - 99% is owned by Legal Chile and 1% is owned by a third party. 39. ALICO Mexico Compania de Seguros, S.A. de C.V. (Mexico) 40. ALICO Services, Inc. (Panama) 41. American Life and General Insurance Company (Trinidad & Tobago) Ltd. (Trinidad and Tobago) - 80.92373% of American Life and General Insurance Company (Trinidad & Tobago) Ltd. is owned by ALICO and the remaining interests are owned by a third party. a) ALGICO Properties, Ltd. (Trinidad & Tobago) 42. MetLife Seguros de Vida, S.A. (Uruguay) 43. ALICO Properties, Inc. (USA-Delaware) - 51% of ALICO Properties, Inc. is owned by ALICO and the remaining interests are owned by a third party. 44. Global Properties, Inc. (USA-Delaware) 45. Alpha Properties, Inc. (USA-Delaware) 46. Beta Properties, Inc. (USA-Delaware) 47. Delta Properties Japan, Inc. (USA-Delaware) 48. Epsilon Properties Japan, Inc. (USA) 49. Iris Properties, Inc. (USA-Delaware) 50. Kappa Properties Japan, Inc. (USA-Delaware) 51. MetLife Global Holding Company I GmbH (Swiss I) (Switzerland) a) MetLife Global Holding Company II GmbH (Swiss II) (Switzerland) b) MetLife EU Holding Company Limited (Ireland) 52. MetLife ALICO Preparatory Company KK (Japan) 1) 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. 2) 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. 3) 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. 6 ITEM 27. NUMBER OF CONTRACT OWNERS As of October 31, 2011, there were 372,588 owners of qualified contracts and 168,254 owners of non-qualified contracts offered by the Registrant (MetLife Investors USA Separate Account A). 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 Life Account One First MetLife Investors Variable Annuity Account One General American Separate Account Eleven General American Separate Account 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 Separate Account QPN for Variable Annuities MetLife of CT Fund UL for Variable Life Insurance MetLife of CT Fund UL III for Variable Life Insurance Metropolitan Life Variable Annuity Separate Account II MetLife of CT Separate Account Eleven for Variable Annuities Metropolitan Life Separate Account E Metropolitan Life Separate Account UL 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 William J. Toppeta Director 1095 Avenue of the Americas New York, NY 10036 Paul A. Sylvester President, National Sales Manager-Annuities & LTC 10 Park Avenue Morristown, NJ 07962 Elizabeth M. Forget Executive Vice President 1095 Avenue of the Americas New York, NY 10036 Paul A. LaPiana Executive Vice President, National Sales Manager-Life 5 Park Plaza, Suite 1900 Irvine, CA 92614 Andrew G. Aiello Senior Vice President, Channel Head-National Accounts 5 Park Plaza, Suite 1900 Irvine, CA 92614 Jeffrey A. Barker Senior Vice President, Channel Head-Independent Accounts 18210 Crane Nest Drive Tampa, FL 33647 Curtis Wohlers Senior Vice President, National Sales Manager, Independent Planners 1300 Hall Boulevard and Insurance Advisors Bloomfield, CT 06002 Jay S. Kaduson Senior Vice President 10 Park Avenue Morristown, NJ 07962 Isaac Torres Secretary 1095 Avenue of the Americas New York, NY 10036 Marlene B. Debel Treasurer 1095 Avenue of the Americas New York, NY 10036 John G. Martinez Vice President, Chief Financial Officer 18210 Crane Nest Dr. Tampa, FL 33647
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 Rashid Ismail Vice President 5 Park Plaza, Suite 1900 Irvine, CA 92614 Paul M. Kos Vice President 5 Park Plaza, Suite 1900 Irvine, CA 92614 Cathy A. Sturdivant Vice President 5 Park Plaza, Suite 1900 Irvine, CA 92614 Paulina Vakouros Vice President 200 Park Avenue, 40th Floor New York, NY 10166
(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 $619,759,806 $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, 4700 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 USA Insurance Company, 5 Park Plaza, Suite 1900, Irvine, CA 92614 (f) MetLife, 18210 Crane Nest Drive, Tampa, FL 33647 (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 the Securities and Exchange Commission 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 Boston and the Commonwealth of Massachusetts on this 28th day of November 2011. METLIFE INVESTORS USA SEPARATE ACCOUNT A (Registrant) METLIFE INVESTORS USA INSURANCE COMPANY By: /s/ Gregory E. Illson ---------------------------------------- Gregory E. Illson Vice President METLIFE INVESTORS USA INSURANCE COMPANY (Depositor) By: /s/ Gregory E. Illson ---------------------------------------- Gregory E. Illson Vice President
As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated on November 28, 2011.
/s/ Michael K. Farrell* Chairman of the Board, President and Chief Executive -------------------------------- Officer Michael K. Farrell /s/ James. J. Reilly* Vice President-Finance (principal financial officer and -------------------------------- principal accounting officer) James J. Reilly /s/ Susan A. Buffum* Director -------------------------------- Susan A. Buffum /s/ George Foulke* Director -------------------------------- George Foulke /s/ Elizabeth M. Forget* Director and Executive Vice President -------------------------------- Elizabeth M. Forget /s/ Jay S. Kaduson* Director and Vice President -------------------------------- Jay S. Kaduson /s/ Bennett D. Kleinberg* Director and Vice President -------------------------------- Bennett D. Kleinberg /s/ Kevin J. Paulson* Director and Senior Vice President -------------------------------- Kevin J. Paulson /s/ Robert E. Sollmann, Jr.* Director and Executive Vice President -------------------------------- Robert E. Sollmann, Jr. /s/ Paul A. Sylvester.* Director -------------------------------- Paul A. Sylvester /s/ Jeffrey A. Tupper* Director and Assistant Vice President -------------------------------- Jeffrey A. Tupper
*By: /s/ Michele H. Abate ---------------------------------------- Michele H. Abate, Attorney-In-Fact November 28, 2011
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 Pre-Effective Amendment No. 1 to the Registration Statement on Form N-4 (File Nos. 333-176668/811-03365) filed as Exhibit 13 on September 19, 2011. INDEX TO EXHIBITS 10 Consent of Independent Registered Public Accounting Firm (Deloitte & Touche LLP)