0001193125-14-413018.txt : 20141114 0001193125-14-413018.hdr.sgml : 20141114 20141114150501 ACCESSION NUMBER: 0001193125-14-413018 CONFORMED SUBMISSION TYPE: 485APOS PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20141114 DATE AS OF CHANGE: 20141114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METLIFE INVESTORS USA SEPARATE ACCOUNT A CENTRAL INDEX KEY: 0000356475 IRS NUMBER: 540696644 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485APOS SEC ACT: 1933 Act SEC FILE NUMBER: 333-161443 FILM NUMBER: 141223313 BUSINESS ADDRESS: STREET 1: METLIFE INVESTORS USA INSURANCE CO STREET 2: 11225 NORTH COMMUNITY HOUSE ROAD CITY: CHARLOTTE STATE: NC ZIP: 28277 BUSINESS PHONE: 800-989-3752 MAIL ADDRESS: STREET 1: METLIFE INVESTORS USA INSURANCE CO STREET 2: 11225 NORTH COMMUNITY HOUSE ROAD CITY: CHARLOTTE STATE: NC ZIP: 28277 FORMER COMPANY: FORMER CONFORMED NAME: METLIFE INVESTORS SEPARATE ACCOUNT A DATE OF NAME CHANGE: 20010314 FORMER COMPANY: FORMER CONFORMED NAME: SECURITY FIRST LIFE SEPARATE ACCOUNT A DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METLIFE INVESTORS USA SEPARATE ACCOUNT A CENTRAL INDEX KEY: 0000356475 IRS NUMBER: 540696644 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485APOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-03365 FILM NUMBER: 141223314 BUSINESS ADDRESS: STREET 1: METLIFE INVESTORS USA INSURANCE CO STREET 2: 11225 NORTH COMMUNITY HOUSE ROAD CITY: CHARLOTTE STATE: NC ZIP: 28277 BUSINESS PHONE: 800-989-3752 MAIL ADDRESS: STREET 1: METLIFE INVESTORS USA INSURANCE CO STREET 2: 11225 NORTH COMMUNITY HOUSE ROAD CITY: CHARLOTTE STATE: NC ZIP: 28277 FORMER COMPANY: FORMER CONFORMED NAME: METLIFE INVESTORS SEPARATE ACCOUNT A DATE OF NAME CHANGE: 20010314 FORMER COMPANY: FORMER CONFORMED NAME: SECURITY FIRST LIFE SEPARATE ACCOUNT A DATE OF NAME CHANGE: 19920703 0000356475 S000005224 METLIFE INVESTORS USA SEPARATE ACCOUNT A C000081013 MetLife Growth and Guaranteed Income 485APOS 1 d728991d485apos.txt MLI USA SEPARATE ACCOUNT A GROWTH AND INCOME As filed with the Securities and Exchange Commission on November 14, 2014 File Nos. 333-161443 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. 9 [x] and REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. 524 [x] (Check Appropriate Box or Boxes) MetLife Investors USA Separate Account A (Exact Name of Registrant) MetLife Investors USA Insurance Company 11225 North Community House Road, Charlotte, NC 28277 (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) Eric T. Steigerwalt President MetLife Investors USA Insurance Company 11225 North Community House Road Charlotte, NC 28277 COPIES TO: W. Thomas Conner Reed Smith LLP 1301 K Street, N.W. Suite 1100-East Tower Washington, D.C. 20005-331 (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. [] 60 days after filing pursuant to paragraph (a)(1) of Rule 485. [X] on November 14, 2014 pursuant to paragraph (a)(1) of Rule 485. If appropriate, check the following box: [] this post-effective amendment designates a new effective date for a previously filed post-effective amendment. Title of Securities Registered: Individual Variable Annuity Contracts THE VARIABLE ANNUITY CONTRACT ISSUED BY METLIFE INVESTORS USA INSURANCE COMPANY AND METLIFE INVESTORS USA SEPARATE ACCOUNT A METLIFE GROWTH AND INCOME NOVEMBER 14, 2014 This prospectus describes the single premium deferred variable annuity contract offered by MetLife Investors USA Insurance Company (MetLife USA or we or us). The contract is offered for individuals and some tax-qualified and non tax-qualified retirement plans. The contract includes a Guaranteed Withdrawal Benefit for Life ("GWB") feature that allows for guaranteed withdrawals that begin when the youngest Annuitant reaches age 59 1/2 and last for the life or lives of the Annuitant(s) provided that specified conditions are met. THIS FEATURE DOES NOT ESTABLISH OR GUARANTEE ANY CONTRACT VALUE OR MINIMUM RETURN FOR ANY INVESTMENT OPTION AND THE GWB VALUE CANNOT BE TAKEN AS A LUMP SUM. The annuity contract has a single Investment Option. Your Contract Value also may be allocated to the Fidelity VIP Money Market Portfolio (the MONEY MARKET PORTFOLIO) under certain circumstances, as described in "Purchase--Free Look". Please see page 12 for more information. FIDELITY(R) VARIABLE INSURANCE PRODUCTS (INVESTOR CLASS): FIDELITY(R) VIP FUNDSMANAGER(R) 50% PORTFOLIO Please read this prospectus before investing and keep it on file for future reference. It contains important information about the MetLife USA Variable Annuity contract. To learn more about the MetLife USA Variable Annuity contract, you can obtain a copy of the Statement of Additional Information (SAI) dated November 14, 2014. The SAI has been filed with the Securities and Exchange Commission (SEC) and is legally a part of the prospectus. The SEC maintains a Web site (http://www.sec.gov) that contains the SAI, material incorporated by reference, and other information regarding companies that file electronically with the SEC. The Table of Contents of the SAI is on Page 42 of this prospectus. For a free copy of the SAI, or for further information, call us at (800) 544-2442, or write the Annuity Service Center: P.O. Box 770001, Cincinnati, OH 45277-0050. THE CONTRACTS: ARE NOT BANK DEPOSITS ARE NOT FDIC INSURED ARE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY ARE NOT GUARANTEED BY ANY BANK OR CREDIT UNION MAY BE SUBJECT TO LOSS OF PRINCIPAL THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. NOVEMBER 14, 2014 2 TABLE OF CONTENTS INDEX OF SPECIAL TERMS............................ 4 HIGHLIGHTS........................................ 5 FEE TABLES AND EXAMPLES........................... 7 Investment Option Expenses.................... 9 Examples...................................... 10 Condensed Financial Information............... 10 1. THE ANNUITY CONTRACT.......................... 11 2. PURCHASE...................................... 12 Purchase Payments............................. 12 Allocation of Purchase Payments............... 12 Free Look..................................... 12 Accumulation Units............................ 13 Contract Value................................ 14 Replacement of contracts...................... 14 3. INVESTMENT OPTIONS............................ 15 Money Market Portfolio........................ 16 Voting Rights................................. 16 Substitution of Investment Options............ 16 4. EXPENSES...................................... 17 Product Charges............................... 17 Variable Account Product Charges........... 17 Surrender Charge........................... 17 Premium and Other Taxes....................... 18 Exchange Fee.................................. 18 Income Taxes.................................. 18 Investment Option Expenses.................... 18 5. ANNUITY PAYMENTS (THE INCOME PHASE)....................................... 19 Annuity Date.................................. 19 Annuity Income Options........................ 19 Additional Information........................ 20 6. ACCESS TO YOUR MONEY.......................... 22 Systematic Withdrawal Program................. 22 Suspension of Payments or Exchanges........... 23 7. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE......................................... 24 GWB Amount.................................... 25 GWB Value..................................... 26 Withdrawals Before Youngest Annuitant Reaches Age 59 1/2................................... 26 Withdrawals in Excess of Annual GWB Amount....................................... 26 Conversion of GWB Amount to Annuity Payments..................................... 27 Additional Information........................ 28
8. PERFORMANCE...................................... 29 9. DEATH BENEFIT DURING THE ACCUMULATION PHASE.............................. 30 Death Benefit.................................... 30 General Death Benefit Provisions................. 31 Spousal Continuation............................. 32 10. FEDERAL INCOME TAX STATUS........................ 33 11. OTHER INFORMATION................................ 39 MetLife USA...................................... 39 The Variable Account............................. 39 Distributor...................................... 39 Selling Firms.................................... 40 Compensation Paid to Selling Firm................ 40 Additional Compensation.......................... 40 Requests and Elections........................... 41 Confirming Transactions.......................... 41 Ownership........................................ 41 Legal Proceedings................................ 42 Financial Statements............................. 42 Table of Contents of the Statement of Additional Information..................................... 42 APPENDIX A--Accumulation Unit Values.................. 43 APPENDIX B--Death Benefit Examples.................... 44 APPENDIX C--Guaranteed Withdrawal Benefit for Life Examples........................................ 45
3 INDEX OF SPECIAL TERMS Because of the complex nature of the contract, we have used certain words or terms in this prospectus which may need an explanation. We have identified the following as some of these words or terms. The page that is indicated here is where we believe you will find the best explanation for the word or term. These words and terms are in italics on the indicated page and are capitalized wherever they appear in the text.
Page Accumulation Phase 11 Accumulation Unit 13 Adjusted Purchase Payment 19 Annuitant 42 Annuity Date 19 Annuity Income Options 19 Annuity Payments 19 Beneficiary 41 Business Day 12 Contract Value 14 Contract Year 5 Free Look Period 5 Good Order 41 GWB Amount 25 GWB Value 25 Income Phase 11 Investment Option 15 Money Market Period 5 Money Market Portfolio 1 Owner 41 Purchase Payments 12 Variable Account 39 Withdrawal Percentage 25
4 HIGHLIGHTS The variable annuity contract that we are offering is a contract between you, the Owner, and us, the insurance company, where you agree to make one Purchase Payment to us and we agree to make a series of Annuity Payments at a later date. Your Contract Value will be invested on a tax-deferred basis in the Fidelity VIP FundsManager 50% Portfolio. The contract is intended for retirement savings or other long-term investment purposes. The contract includes a Guaranteed Withdrawal Benefit for Life (GWB) feature that allows for guaranteed withdrawals that begin when the youngest Annuitant reaches age 59 1/2 and last for the life or lives of the Annuitant(s). We are obligated to pay all money we owe under the contracts, including death benefits, Annuity Payments, and amounts due under the GWB. Any such amount that exceeds the assets in the Variable Account is paid from our general account, subject to our financial strength and claims-paying ability and our long-term ability to make such payments, and is not guaranteed by any other party. (See "Other Information -- The Variable Account"). It is important that you carefully manage withdrawals under the GWB feature. EXCESS WITHDRAWALS (WHICH INCLUDE ALL WITHDRAWALS PRIOR TO THE YOUNGEST ANNUITANT REACHING AGE 59 1/2 ) MAY SIGNIFICANTLY REDUCE THE INCOME YOU RECEIVE FROM THE GWB FEATURE (PARTICULARLY WHEN THE CONTRACT VALUE IS LOWER THAN THE GWB VALUE), AND AN EXCESS WITHDRAWAL THAT REDUCES THE CONTRACT VALUE TO ZERO WILL TERMINATE THE CONTRACT (see "Guaranteed Withdrawal Benefit for Life--Managing Your Withdrawals" for more information). The contract, like all deferred annuity contracts, has two phases: the Accumulation Phase and the Income Phase. During the Accumulation Phase, earnings accumulate on a tax-deferred basis and are taxed as income when you make a withdrawal. If you make a withdrawal during the first five Contract Years, we may assess a 2% surrender charge. (A CONTRACT YEAR is defined as a one-year period starting on the date the contract is issued and on each contract anniversary thereafter.) The Income Phase occurs when you begin receiving regular Annuity Payments from your contract. If you choose to annuitize the contract, your Annuity Payments will be made on a fixed basis. The amount of each payment generally will not change during the Income Phase. TAX DEFERRAL AND QUALIFIED PLANS. The contracts are offered for individuals on a tax-qualified and non-tax qualified basis. For any tax-qualified account (e.g., an IRA), the tax deferred accrual feature is provided by the tax qualified retirement plan. Therefore, there should be reasons other than tax deferral for acquiring the contract within a qualified plan. (See "Federal Income Tax Status.") STATE VARIATIONS. Contracts issued in your state may provide different features and benefits from, and impose different costs than, those described in this prospectus because of state law variations. These differences include, among other things, free look rights, age issuance limitations, exchange rights and limitations, the right to reject Purchase Payments, the right to assess exchange fees, requirements for unisex annuity rates, and the availability of certain features of the GWB. This prospectus describes all the material features of the contract. If you would like to review a copy of the contract and any endorsements, contact our Annuity Service Center. FREE LOOK. You have the right to cancel the purchase of your contract for at least ten days after you receive it. We assume it will take five days from the day we mail the contract until you receive it. This is called the FREE LOOK PERIOD. The time you have to return your contract may be longer, depending on the state where you purchase the contract and other factors. Some states allow us to refund your Contract Value plus any deductions made for premium taxes. Other states, and in the case of a qualified contract, federal tax laws, require that we return at least your Purchase Payment for a specified amount of time after the contract is issued. If your contract is a qualified contract or if state law requires that we return at least the amount of your Purchase Payment, then your contract will be invested entirely in the Money Market Portfolio for either 15 days or the length of time we are required to return at least the amount of your Purchase Payment, whichever is longer. This is called the MONEY MARKET PERIOD. Then at the close of the Business Day in which the Money Market Period expires, we will transfer your Contract Value to the Fidelity VIP FundsManager 50% Portfolio (or, if we add additional Investment Options in the future, according to your most recent allocation instructions). Together with your contract, we will provide notice to you of the date on which your Free Look Period ends. If you cancel the contract during the Money Market Period, we will return the greater of your Purchase Payment or your Contract Value. For other cancellations, we will pay you your Contract Value. If your contract is a non-qualified contract and state law requires that we return an amount based on your Contract Value, then your Purchase Payment will be invested in the Fidelity VIP FundsManager 50% Portfolio (or according to your instructions, if applicable) beginning on the contract date. TAX PENALTY. The earnings in your contract are not taxed until you take money out of your contract. If you take money out of a non-qualified contract during the Accumulation Phase, for tax purposes any earnings are deemed to come out first. If you are younger than 59 1/2 when you take money out, you may be charged a 10% federal tax penalty on 5 those earnings. Payments during the Income Phase are considered partly a return of your original investment until your investment is returned. NON-NATURAL PERSONS AS OWNERS. The Owner of this contract can be a natural person, a trust established for the exclusive benefit of a natural person, a charitable remainder trust or other trust arrangement (if approved by us). A contract generally may have two Owners (both of whom must be individuals and who must be spouses). If the Owner of a non-qualified annuity contract is not a natural person (i.e., certain trusts), gains under the contract are generally not eligible for tax deferral, and the distribution on death rules under Internal Revenue Code ("Code") may require payment to begin earlier than expected and may impact the living and/or death benefits. INQUIRIES. If you need more information, please contact our Annuity Service Center at: Annuity Service Center P.O. Box 770001 Cincinnati, Ohio 45277-0050 (800) 634-9361 6 FEE TABLES AND EXAMPLES The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the contract. The first table describes the fees and expenses that you will pay at the time that you buy the contract, surrender the contract, or exchange Contract Value between Investment Options. State premium taxes of 0% to 3.5% may also be deducted. Owner Transaction Expenses Table Surrender Charge (Note 1) (as a percentage of amount withdrawn) 2% Exchange Fee (Note 2) $25 $ 0 (First 12 per year)
Note 1. If any amount is withdrawn during the first five Contract Years, a surrender charge may be assessed. Surrender charges are calculated in accordance with the following. (See "Expenses--Surrender Charge.")
Number of Complete Years from Surrender Charge Contract Date (% of Amount Withdrawn) ------------- ----------------------- 0 2 1 2 2 2 3 2 4 2 5 and thereafter 0
Note 2. Currently, the contract offers only one Investment Option. In the future, we may make additional Investment Options available. There is no charge for the first 12 exchanges in a Contract Year; thereafter the fee is $25 per exchange. MetLife USA is currently waiving the exchange fee, but reserves the right to charge the fee in the future. 7 The next tables describe the fees and expenses that you will pay periodically during the time that you own the contract, not including Investment Option fees and expenses. Variable Account Annual Expenses (referred to as Variable Account Product Charge) (as a percentage of average Contract Value in the Variable Account) Mortality and Expense Charge Single Annuitant 1.90% Joint Annuitants 2.05%
The next table shows the total operating expenses charged by the Investment Option which you will pay periodically during the Accumulation Phase. Your Contract Value will be allocated to a single Investment Option during the Accumulation Phase (see "Investment Options"). An Investment Option may impose a redemption fee in the future. More detail concerning each Investment Option's fees and expenses is contained in the prospectus for that Investment Option and in the following tables. Total Annual Portfolio Expenses (1) 0.88% (expenses that are deducted from Investment Option assets, including management fees, 12b-1/service fees, and other expenses)
Note 1. The total annual portfolio expenses of the Fidelity VIP FundsManager 60% Portfolio include the fees and expenses of the underlying portfolios (Acquired Fund Fees and Expenses). For contracts issued based on applications signed and dated prior to July 21, 2012, the Fidelity VIP FundsManager 60% Portfolio was offered in place of the Fidelity VIP FundsManager 50% Portfolio. The Total Annual Operating Expenses of the Fidelity VIP FundsManager 50% Portfolio are 0.80%. For information concerning compensation paid for the sale of the contracts, see "Other Information--Distributor." 8 INVESTMENT OPTION EXPENSES (as a percentage of the average daily net assets of an Investment Option) The following table is a summary. For more complete information on Investment Option fees and expenses, please refer to the prospectus for each Investment Option. Acquired Fund Fees and Expenses are expenses incurred indirectly as a result of investing in shares of one or more underlying portfolios.
Acquired Total Contractual Net Total 12b-1/ Fund Fees Annual Fee Waiver Annual Management Service Other and Operating and/or Expense Operating Fees Fees Expenses Expenses Expenses Reimbursement Expenses FIDELITY VARIABLE INSURANCE PRODUCTS Fidelity VIP FundsManager 50% Portfolio 0.25% 0.00% 0.00% 0.55% 0.80% 0.05% 0.75% Fidelity VIP FundsManager 60% Portfolio 0.25% 0.00% 0.00% 0.63% 0.88% 0.05% 0.83% Fidelity VIP Money Market Portfolio 0.17% 0.00% 0.11% 0.00% 0.28% -- 0.28%
Notes: The information shown in the table above was provided by the Investment Options and we have not independently verified that information. Net Total Annual Operating Expenses shown in the table reflect any current fee waiver or expense reimbursement arrangement that will remain in effect for a period of at least one year from the date of the Investment Option's 2014 prospectus. Fee waiver and expense reimbursement arrangements with a duration of less than one year, or arrangements that may be terminated without the consent of the Investment Option's board of directors or trustees, are not shown. The Fidelity VIP FundsManager 50% Portfolio and the Fidelity VIP FundsManager 60% Portfolio are "funds of funds." A fund of funds invests substantially all of its assets in other underlying funds. Because the Investment Options invest in other funds, each will bear its pro rata portion of the operating expenses of those underlying funds, including the management fee. For contracts issued based on applications signed and dated prior to July 21, 2012, the Fidelity VIP FundsManager 60% Portfolio was offered in place of the Fidelity VIP FundsManager 50% Portfolio. 9 EXAMPLES These Examples are intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract Owner transaction expenses, Variable Account Annual Expenses, and Investment Option fees and expenses. The Examples assume that you invest $10,000 in the contract for the time periods indicated. The Examples also assume that your investment has a 5% return each year and assume the joint Annuitants Variable Account Product Charge of 2.05% and Total Annual Portfolio Expenses (including Acquired Fund Fees and Expenses) of 0.88% for the Fidelity VIP FundsManager 60% Portfolio and 0.80% for the Fidelity VIP FundsManager 50% Portfolio as the Investment Option fees and expenses. An example based on the Money Market Portfolio's fees and expenses is not presented, because you may not allocate Purchase Payment or Contract Value to the Money Market Portfolio (see "Purchase--Free Look" for more information). Although your actual costs may be higher or lower, based on these assumptions, your costs would be: (1) If you surrender your contract at the end of the applicable time period:
------------------------------------------------------------------------ TIME PERIODS ------------------------------------------------------------------------ 1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------------ Fidelity VIP FundsManager 50% Portfolio $485 $1,054 $1,668 $3,143 ------------------------------------------------------------------------ Fidelity VIP FundsManager 60% Portfolio $493 $1,077 $1,707 $3,219 ------------------------------------------------------------------------
(2) If you do not surrender your contract or if you annuitize at the end of the applicable time period:
------------------------------------------------------------------------ TIME PERIODS ------------------------------------------------------------------------ 1 YEAR 3 YEARS 5 YEARS 10 YEARS ------------------------------------------------------------------------ Fidelity VIP FundsManager 50% Portfolio $285 $874 $1,488 $3,143 ------------------------------------------------------------------------ Fidelity VIP FundsManager 60% Portfolio $293 $897 $1,527 $3,219 ------------------------------------------------------------------------
The Examples should not be considered a representation of past or future expenses or annual rates of return of any Investment Option. Actual expenses and annual rates of return may be more or less than those assumed for the purpose of the Examples. CONDENSED FINANCIAL INFORMATION Condensed financial information (Accumulation Unit value information) is located in "Appendix A--Accumulation Unit Values" at the end of this prospectus. 10 1. THE ANNUITY CONTRACT This prospectus describes the Variable Annuity contract offered by us. The variable annuity contract is a contract between you as the Owner, and us, the insurance company, where we promise to pay an income to you, in the form of Annuity Payments, beginning on a designated date that you select. Until you begin receiving Annuity Payments, your annuity is in the ACCUMULATION PHASE. Once you begin receiving Annuity Payments, your contract switches to the INCOME PHASE. The contract benefits from tax deferral. Tax deferral means that you are not taxed on earnings or appreciation on the assets in your contract until you take money out of your contract. For any tax qualified account (e.g. an IRA), the tax deferred accrual feature is provided by the tax qualified retirement plan. Therefore, there should be reasons other than tax deferral for acquiring the contract within a qualified plan. (See "Federal Income Tax Status.") The contract is called a variable annuity because, depending upon market conditions, you can make or lose money in the Investment Option offered, the Fidelity VIP FundsManager 50% Portfolio. The amount of money you are able to accumulate in your contract during the Accumulation Phase depends upon the investment performance of the Investment Option. You bear the full investment risk for all amounts allocated to the Variable Account. Fixed Annuity Payments are made from our general account assets. Our general account consists of all assets owned by us other than those in the Variable Account and our other separate accounts. We have sole discretion over the investment of assets in the general account. The amount of the Annuity Payments you receive during the Income Phase from a fixed Annuity Payment option of the contract generally will remain level for the entire Income Phase. (Please see "Annuity Payments (The Income Phase)" for more information.) As Owner of the contract, you exercise all interests and rights under the contract. You cannot change the Owner (unless an Owner is removed by court order), except that a contract owned by a revocable grantor trust may be exchanged to the grantor or to another revocable grantor trust where the grantor is the same individual. The contract may be owned by joint Owners (generally limited to two natural persons who must be spouses). We provide more information on this under "Other Information--Ownership." For contracts owned by a grantor trust, in order for the spousal Beneficiary or joint Annuitant to be able to continue the contract after the first Annuitant's death, federal income tax law requires that the designated Beneficiary must be the Annuitant's spouse on the date of the Annuitant's death. This may impact certain estate planning considerations which depend on the grantor trust being treated as the designated Beneficiary and should be taken into account prior to the purchase of the contract. All contract provisions will be interpreted and administered in accordance with the requirements of the Code. Any Code reference to "spouses" includes those persons who are married spouses under state law, regardless of sex. 11 2. PURCHASE PURCHASE PAYMENTS A PURCHASE PAYMENT is the money you give us to invest in the contract. The Purchase Payment is due on the date the contract is issued. You may not make additional Purchase Payments. The minimum Purchase Payment we will accept is $50,000. Generally, you may purchase a tax-qualified contract only with money transferred from a plan qualified under section 401(a) of the Code, a 403(b) mutual fund account or a 403(b) tax sheltered annuity, a governmental 457(b) plan or an IRA. You may purchase a non-qualified contract with money from any source. If you want to make a Purchase Payment of more than $1 million, you will need our prior approval. We reserve the right to refuse Purchase Payments made via a personal check in excess of $100,000. Purchase Payments over $100,000 may be accepted in other forms, including, but not limited to, EFT/wire transfers, certified checks and corporate checks. The form in which we receive a Purchase Payment may determine how soon subsequent disbursement requests may be fulfilled. (See "Access to Your Money.") We also reserve the right to reject a Purchase Payment made with cash-like instruments including, but not limited to money orders, cashier's checks, bank drafts, and traveler's checks. We reserve the right to reject any application or Purchase Payment. If you are exchanging more than one annuity contract or life insurance policy for this contract, or if your Purchase Payment will be paid from different sources (e.g. personal check and proceeds from a brokerage account), we will allow the proceeds to be used as the Purchase Payment for this contract, provided they are received within 90 days of the date the contract is issued. When you are purchasing a contract by exchanging another annuity contract or life insurance policy, or if your Purchase Payment will be paid from different sources, your contract will be issued on the day we first receive proceeds from your existing annuity contract or life insurance policy, or from any other source. We reserve the right to revoke the contract if proceeds from all of the exchanged annuity contracts or life insurance policies or other different sources do not equal $50,000 in aggregate. We also reserve the right to not accept any proceeds received more than 90 days after the contract is issued. If the contract is revoked, we will return the Contract Value without the application of any surrender charges. ALLOCATION OF PURCHASE PAYMENTS When you purchase a contract, we will allocate your Purchase Payment either to the Fidelity VIP Money Market Portfolio or the Fidelity VIP FundsManager 50% Portfolio, depending on the type of contract and state law regarding the Free Look Period (see "Free Look" below). We will temporarily allocate your Purchase Payment to the Money Market Portfolio for at least 15 days if your contract is a qualified contract or if state law requires that we return at least the amount of your Purchase Payment if you decide to cancel your contract during the Free Look Period. If your contract is a non-qualified contract and state law requires that we return an amount based on your Contract Value, then you will be invested in the Fidelity VIP FundsManager 50% Portfolio beginning on the date the contract is issued. Once we receive your Purchase Payment and the necessary information, we will issue your contract and allocate your first Purchase Payment within two (2) Business Days. A BUSINESS DAY is each day that the New York Stock Exchange is open for business. A Business Day closes at the close of normal trading on the New York Stock Exchange, usually 4:00 p.m. Eastern Time. If you do not give us all of the information we need, we will contact you to get it before we make any allocation. If for some reason we are unable to complete this process within five (5) Business Days, we will either send back your money or get your permission to keep it until we get all of the necessary information. (See "Other Information --Requests and Elections."). FREE LOOK The law of the state in which your contract is issued or delivered provides you with the right to cancel the purchase of your contract for a limited period of time. The period varies by state, but is never less than ten days from the day you receive your contract. We assume it will take five days from the day we mail the contract until you receive it. 12 In some states the length of the Free Look Period may be different depending on the source of funds, the age of the purchaser, or for some other reason. Together with your contract, we will notify you of the date on which your Free Look Period ends. If your contract is a qualified contract or if state law requires that we return at least the amount of your Purchase Payment, then your contract will be invested entirely in the Money Market Portfolio for either 15 days or the length of time we are required to return at least the amount of your Purchase Payment, whichever is longer. At the close of the Business Day in which the Money Market Period expires, we will transfer your Contract Value to the Fidelity VIP FundsManager 50% Portfolio (or if we add additional Investment Options in the future, according to your most recent allocation instructions). If your contract is a non-qualified contract and state law requires that we return an amount based on your Contract Value, then you will be invested in the Fidelity VIP FundsManager 50% Portfolio (or according to your allocation instructions, if applicable beginning on the contract date. If you have exchanged more than one annuity contract or life insurance policy for the contract or are funding the Purchase Payment for the contract from different sources, you should expect that the proceeds from the annuity contracts, life insurance policies or other sources will be received by us on different days. We will allocate the first proceeds we receive to the Money Market Portfolio if your contract is either a qualified contract or state law requires that we return at least the amount of your Purchase Payment. If your contract is a non-qualified contract and state law requires that we return an amount based on your Contract Value, we will invest the proceeds in the Fidelity VIP FundsManager 50% Portfolio (or according to your allocation instructions, if applicable when we receive them. Your Free Look Period and Money Market Period, if applicable, will commence on the first day we receive proceeds from any of the annuity contracts or life insurance policies you have exchanged from, or from any other source. Any subsequent proceeds that are received after the contract date will be invested according to your most recent allocation instructions unless the Money Market Period, if applicable, has not expired. The receipt of subsequent proceeds will not extend or restart the Free Look Period or the Money Market Period, if applicable, under the contract. To cancel the purchase of your contract, return the contract to our Annuity Service Center before the end of the Free Look Period, together with a written cancellation request. You may not do this by telephone, fax or through the Internet. Depending on applicable law, we will promptly pay you either your Contract Value or your Purchase Payment. Where we are required by state or federal law to return at least the amount of your Purchase Payment, we will pay you the greater of your Contract Value or your Purchase Payment. ACCUMULATION UNITS Your Contract Value will go up or down depending upon the investment performance of the Investment Options. In order to keep track of your Contract Value, we use a unit of measure we call an ACCUMULATION UNIT. (An Accumulation Unit works like a share of a mutual fund.) Every Business Day, as of the close of the New York Stock Exchange (generally 4:00 p.m. Eastern Time), we determine the value of an Accumulation Unit for the Investment Option by multiplying the Accumulation Unit value for the immediately preceding Business Day by a factor for the current Business Day. The factor is determined by: 1) dividing the net asset value per share of the Investment Option at the end of the current Business Day, plus any dividend or capital gains per share declared on behalf of the Investment Option as of that day, by the net asset value per share of the Investment Option for the previous Business Day, and 2) multiplying it by one minus the Variable Account Product Charges for each day since the last Business Day and any charges for taxes. The value of an Accumulation Unit may go up or down from day to day. When we receive any portion of the Purchase Payment, we credit your contract with Accumulation Units. The number of Accumulation Units credited is determined by dividing the amount of the Purchase Payment allocated to the Investment Option by the value of the Accumulation Unit for the Investment Option. 13 A Purchase Payment is credited to a contract on the basis of the Accumulation Unit value next determined after receipt. A Purchase Payment received before the close of the New York Stock Exchange will be credited to your contract that day, after the New York Stock Exchange closes. A Purchase Payment received after the close of the New York Stock Exchange, or on a day when the New York Stock Exchange is closed, will be treated as received on the next day the New York Stock Exchange is open (the next Business Day). Example: On Monday we receive a Purchase Payment of $50,000 from you before 4:00 p.m. Eastern Time. When the New York Stock Exchange closes on that Monday, we determine that the value of an Accumulation Unit for the Fidelity VIP FundsManager 50% Portfolio is $12.50. We then divide $50,000 by $12.50 and credit your contract on Monday night with 4000 Accumulation Units for the Fidelity VIP FundsManager 50% Portfolio. CONTRACT VALUE CONTRACT VALUE is equal to the sum of your interests in the Investment Options. Your interest in each Investment Option is determined by multiplying the number of Accumulation Units for that Investment Option by the value of the Accumulation Unit. REPLACEMENT OF CONTRACTS Generally you can exchange one variable annuity contract for another in a tax-free exchange under Section 1035 of the Internal Revenue Code. Before making an exchange, you should compare both annuities carefully. If you exchange another annuity for the one described in this prospectus, you might have to pay a surrender charge on your old annuity, and there will be a new surrender charge period for this contract. Other charges may be higher (or lower) and the benefits may be different. Also, because we will not issue the contract until we have received the initial premium from your existing insurance company, the issuance of the contract may be delayed. Generally, it is not advisable to purchase a contract as a replacement for an existing variable annuity contract. Before you exchange another annuity for our contract, ask your registered representative whether the exchange would be advantageous, given the contract features, benefits and charges. 14 3. INVESTMENT OPTIONS The contract offers two INVESTMENT OPTIONS, the Money Market Portfolio and either the Fidelity VIP FundsManager 50% Portfolio or the Fidelity VIP FundsManager 60% Portfolio, depending on the date it was issued, as described below. However, you may not choose to allocate the Purchase Payment or exchange Contract Value to the Money Market Portfolio (see "Money Market Portfolio" below for more information). Your Contract Value will be allocated to a single Investment Option. Additional Investment Options may be available in the future. For contracts issued based on applications signed and dated prior to July 21, 2012, the Fidelity VIP FundsManager 60% Portfolio was offered in place of the Fidelity VIP FundsManager 50% Portfolio. YOU SHOULD READ THE PROSPECTUSES FOR THESE FUNDS CAREFULLY. COPIES OF THESE PROSPECTUSES WILL ACCOMPANY OR PRECEDE THE DELIVERY OF YOUR CONTRACT. YOU CAN OBTAIN COPIES OF THE FUND PROSPECTUSES BY CALLING US AT: (800) 544-2442. YOU CAN ALSO OBTAIN INFORMATION ABOUT THE FUNDS (INCLUDING A COPY OF THE STATEMENT OF ADDITIONAL INFORMATION) BY ACCESSING THE SECURITIES AND EXCHANGE COMMISSION'S WEBSITE AT HTTP://WWW.SEC.GOV. Certain Investment Options described in the fund prospectuses may not be available with your contract. A summary of advisers, subadvisers, and investment objectives for each Investment Option is listed below. The investment objectives and policies of certain of the Investment Options may be similar to the investment objectives and policies of other mutual funds that certain of the portfolios' investment advisers manage. Although the objectives and policies may be similar, the investment results of the Investment Options may be higher or lower than the results of such other mutual funds. The investment advisers cannot guarantee, and make no representation, that the investment results of similar funds will be comparable even though the funds may have the same investment advisers. Shares of the Investment Options may be offered to insurance company separate accounts of both variable annuity and variable life insurance contracts and to qualified plans. Due to differences in tax treatment and other considerations, the interests of various owners participating in, and the interests of qualified plans investing in the Investment Options may conflict. The Investment Options will monitor events in order to identify the existence of any material irreconcilable conflicts and determine what action, if any, should be taken in response to any such conflict. CERTAIN PAYMENTS WE RECEIVE FROM AN INVESTMENT ADVISER OR ITS AFFILIATES. An investment adviser or subadviser of the Investment Options, or its affiliates, may make payments to us and/or certain of our affiliates. These payments may be used for a variety of purposes, including payment of expenses for certain administrative, marketing, and support services with respect to certain other variable insurance products we offer, and, in our role as an intermediary, with respect to the Investment Options in those products. We and our affiliates may profit from these payments. The amount of the payments we receive may be significant and is based on a percentage of assets of the Investment Options attributable to those other variable insurance products we and our affiliates issue. Additionally, an investment adviser or subadviser of the Investment Options, or its affiliates, may provide us with wholesaling services that assist in the distribution of certain other variable insurance products we or our affiliates offer and may pay us and/or certain of our affiliates amounts to participate in sales meetings. These amounts may be significant and may provide the adviser or subadviser (or its affiliate) with increased access to persons involved in the distribution of those variable insurance products. SELECTION OF INVESTMENT OPTIONS. We select the Investment Options offered through this contract based on a number of criteria, including asset class coverage, the strength of the adviser's or subadviser's reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Another factor we may consider is the risk of investment losses that could require us to use our own assets to make payments in connection with the guarantees under the GWB. We review the Investment Options periodically and may remove an Investment Option or limit its availability to new Purchase Payments and/or exchanges of contract value if we determine that the Investment Option no longer meets one or more of the selection criteria, and/or if the Investment Option has not attracted significant allocations from contract owners. In some cases, we have included Investment Options based on recommendations made by selling firms. These selling firms may receive payments from the Investment Options they recommend and may benefit accordingly from the allocation of Contract Value to such Investment Options. We do not provide any investment advice and do not recommend or endorse any particular Investment Option. You bear the risk of any decline in the Contract Value of your contract resulting from the performance of the Investment Options. 15 FIDELITY VARIABLE INSURANCE PRODUCTS (Investor Class) Fidelity Variable Insurance Products is a variable insurance product fund with multiple portfolios. Investor Class shares of the following portfolios are offered under the contract: . Fidelity VIP FundsManager 50% Portfolio Strategic Advisers, Inc. is the investment manager of the Fidelity VIP FundsManager 50% Portfolio. The Fidelity VIP FundsManager 50% Portfolio seeks high total return. . Fidelity VIP FundsManager 60% Portfolio Strategic Advisers, Inc. is the investment manager of the Fidelity VIP FundsManager 60% Portfolio. The Fidelity VIP FundsManager 60% Portfolio seeks high total return. . Fidelity VIP Money Market Portfolio Fidelity Management & Research Company is the investment manager of the Money Market Portfolio, and Fidelity Investments Money Management, Inc. and other investment advisers serve as subadvisers. The Money Market Portfolio seeks as high a level of current income as is consistent with preservation of capital and liquidity. MONEY MARKET PORTFOLIO We may allocate Contract Value under certain circumstances (see "Purchase--Free Look") to the Money Market Portfolio. You may not choose to allocate or exchange Contract Value to the Money Market Portfolio. VOTING RIGHTS We are the legal owner of the Investment Option shares. However, we believe that when an Investment Option solicits proxies in conjunction with a vote of shareholders, we are required to obtain from you and other affected Owners instructions as to how to vote those shares. When we receive those instructions, we will vote all of the shares we own in proportion to those instructions. This will also include any shares that we own on our own behalf. The effect of this proportional voting is that a small number of contract owners may control the outcome of a vote. Should we determine that we are no longer required to comply with the above, we will vote the shares in our own right. SUBSTITUTION OF INVESTMENT OPTIONS If investment in the Investment Options or a particular Investment Option is no longer possible, in our judgment becomes inappropriate for purposes of the contract, or for any other reason in our sole discretion, we may substitute another Investment Option or Investment Options without your consent. The substituted Investment Option may have different fees and expenses. However, we will not make such substitution without any necessary approval of the Securities and Exchange Commission and applicable state insurance departments. Furthermore, we may close Investment Options to allocation of Purchase Payments or Contract Value, or both, at any time in our sole discretion. There will always be at least one Investment Option offered under the contract. 16 4. EXPENSES There are charges and other expenses associated with the contract that reduce the return on your investment in the contract. These charges and expenses are: PRODUCT CHARGES VARIABLE ACCOUNT PRODUCT CHARGES. Each day, we make a deduction for our Variable Account Product Charges (the mortality and expense charge). We do this as part of our calculation of the value of the Accumulation Units. Variable Account Product Charges will no longer apply if you begin to receive Annuity Payments (see "Annuity Options (The Income Phase)") or after the conversion of the GWB Amount to Annuity Payments (see "Guaranteed Withdrawal Benefit for Life--Conversion of GWB Amount to Annuity Payments"). We assess a daily mortality and expense charge that is equal, on an annual basis, to 1.90% (for a single Annuitant) or 2.05% (for joint Annuitants) of the average daily net asset value of each Investment Option. This charge compensates us for mortality risks we assume for the lifetime withdrawal, Annuity Payment and death benefit guarantees made under the contract. These guarantees include allowing lifetime withdrawals and making Annuity Payments that will not change based on our actual mortality experience, and providing a guaranteed minimum death benefit under the contract. The charge also compensates us for expense risks we assume to cover contract maintenance expenses. These expenses may include issuing contracts, maintaining records, making and maintaining subaccounts available under the contract and performing accounting, regulatory compliance, and reporting functions. This charge also compensates us for costs associated with the establishment and administration of the contract. If the mortality and expense charge is inadequate to cover the actual expenses of mortality, maintenance, and administration, we will bear the loss. If the charge exceeds the actual expenses, we will add the excess to our profit and it may be used to finance distribution expenses or for any other purpose. SURRENDER CHARGE We impose a surrender charge to reimburse us for contract sales expenses, including commissions and other distribution, promotion, and acquisition expenses. During the Accumulation Phase, you can make a withdrawal from your contract (either a partial or a complete withdrawal). A surrender charge is assessed against any amount withdrawn during the first five Contract Years, except as described below. A withdrawal made pursuant to a divorce or separation instrument is subject to the same surrender charge provisions described above, if permissible under tax law. The surrender charge is calculated at the time of each withdrawal in accordance with the following:
Number of Complete Years from Surrender Charge Contract Date (% of Amount Withdrawn) ------------- ----------------------- 0 2 1 2 2 2 3 2 4 2 5 and thereafter 0
For a partial withdrawal, you may elect to have the surrender charge deducted either from the remaining Contract Value, if sufficient, or from the amount withdrawn. If the remaining Contract Value is not sufficient, the surrender charge is deducted from the amount withdrawn. WE DO NOT ASSESS THE SURRENDER CHARGE ON ANY AMOUNTS PAID OUT AS ANNUITY PAYMENTS OR AS DEATH BENEFITS. ALSO, NO SURRENDER CHARGE WILL APPLY TO WITHDRAWALS UNDER THE GWB FEATURE THAT ARE LESS THAN OR EQUAL TO THE GWB AMOUNT. However, a surrender charge will be assessed on withdrawals prior to the youngest Annuitant reaching age 59 1/2 or, thereafter, on any withdrawals in excess of the GWB Amount (see "Guaranteed Withdrawal Benefit for Life" for more information). In addition, we will not assess the surrender charge on required distributions from qualified contracts in order to satisfy federal income tax rules or to avoid federal income tax penalties. This exception applies only to amounts required to be distributed from this contract. Such withdrawals must be made through the Systematic Withdrawal Program, with certain exceptions. (See "Access To Your Money--Systematic Withdrawal Program" for more information.) 17 PREMIUM AND OTHER TAXES We reserve the right to deduct from the Purchase Payment, Contract Value, withdrawals, death benefits or Annuity Payments any taxes relating to the contracts (including, but not limited to, premium taxes) paid by us to any government entity. Examples of these taxes include, but are not limited to, premium tax, generation-skipping transfer tax or a similar excise tax under federal or state tax law which is imposed on payments we make to certain persons and income tax withholdings on withdrawals and income payments to the extent required by law. Premium taxes generally range from 0 to 3.5%, depending on the state. We will, at our sole discretion, determine when taxes relate to the contracts. We may, at our sole discretion, pay taxes when due and deduct that amount from the account balance at a later date. Payment at an earlier date does not waive any right we may have to deduct amounts at a later date. It is our current practice not to charge premium taxes until Annuity Payments begin. EXCHANGE FEE Currently, the contract offers only one Investment Option. In the future, we may make additional Investment Options available, in which case you may be able to exchange Contract Value between Investment Options. We currently allow unlimited exchanges without charge during the Accumulation Phase. However, we have reserved the right to limit the number of exchanges to a maximum of 12 per year without charge and to charge an exchange fee of $25 for each exchange greater than 12 in any year. The exchange fee is deducted from the Investment Option from which the exchange is made. However, if the entire interest in an Investment Option is being exchanged, the exchange fee will be deducted from the amount which is exchanged. INCOME TAXES We reserve the right to deduct from the contract for any income taxes which we incur because of the contract. In general, we believe under current federal income tax law, we are entitled to hold reserves with respect to the contract that offset Variable Account income. If this should change, it is possible we could incur income tax with respect to the contract, and in that event we may deduct such tax from the contract. At the present time, however, we are not incurring any such income tax or making any such deductions. INVESTMENT OPTION EXPENSES There are deductions from and expenses paid out of the assets of each Investment Option, which are described in the fee table in this prospectus and the Investment Option prospectuses. These deductions and expenses are not charges under the terms of the contract, but are represented in the share values of each Investment Option. 18 5. ANNUITY PAYMENTS (THE INCOME PHASE) ANNUITY DATE Under the contract you can receive regular monthly income payments (referred to as ANNUITY PAYMENTS). You can choose the month and year in which those payments begin. We call that date the ANNUITY DATE. Your Annuity Date must be at least 30 days after we issue the contract. Annuity Payments must begin by the first day of the calendar month on or after the contract anniversary on or after the oldest Owner's (or, for contracts owned by certain trusts, the oldest Annuitant's) 95th birthday. When you purchase the contract, the Annuity Date will be the first day of the calendar month on or after the contract anniversary on or after the oldest Owner's (or, for contracts owned by certain trusts, the oldest Annuitant's) 95th birthday. You can change the Annuity Date at any time before the Annuity Date with 30 days prior notice to us (subject to restrictions that may apply in your state). ANNUITY INCOME OPTIONS You can choose among income plans. We call those ANNUITY INCOME OPTIONS. We ask you to choose an Annuity Income Option when you purchase the contract. You can change it at any time before the Annuity Date with 30 days notice to us. You will receive the Annuity Payments during the Income Phase. The Annuitant is the natural person(s) whose life we look to in the determination of Annuity Payments. The dollar amount of each Annuity Payment generally will not change. The contract offers two Annuity Income Options. Unless you elect another Annuity Income Option prior to the Annuity Date or you elect an earlier Annuity Date, the contract will default to Annuity Income Option (1). ANNUITY INCOME OPTION (1). Under Annuity Income Option (1), on the Annuity Date, we compare the Contract Value to the Adjusted Purchase Payment. The ADJUSTED PURCHASE PAYMENT is a value we use to calculate Annuity Payments under Annuity Income Option (1). At contract issue, the Adjusted Purchase Payment is equal to the Purchase Payment. The Adjusted Purchase Payment is reduced by each withdrawal as described below. A. Withdrawals Prior to Age 59 1/2. If you make withdrawals before the youngest Annuitant reaches age 59 1/2, the Adjusted Purchase Payment will be reduced for each such withdrawal as follows: (1) At the end of the valuation period in which you make the withdrawal, we divide the withdrawal by what the Contract Value would have been at the end of the valuation period had you not taken the withdrawal. The result is the percentage factor used to calculate the reduction to the Adjusted Purchase Payment. (2) Multiply the percentage determined in (1) by the Adjusted Purchase Payment immediately before the withdrawal. (3) Take the Adjusted Purchase Payment prior to the withdrawal and reduce it by the amount determined in (2). B. Withdrawals On or After Age 59 1/2. (i) If total withdrawals in any Contract Year after the youngest Annuitant reaches age 59 1/2 do not exceed the GWB Amount for that same Contract Year, the Adjusted Purchase Payment is reduced by the dollar amount of the withdrawal(s). (ii) If you make withdrawals on or after the date the youngest Annuitant reaches age 59 1/2 and the total withdrawals in a Contract Year are greater than the GWB Amount for that Contract Year, then the Adjusted Purchase Payment will be reduced for each such withdrawal as follows: (1) Determine the portion of the most recent withdrawal that, in combination with the sum of all other withdrawals taken in the current Contract Year, exceeds the GWB Amount for that Contract Year. (2) Determine what the Contract Value would have been at the end of the valuation period had you NOT taken the withdrawal, less any portion of the most recent withdrawal that is eligible to be applied to the GWB Amount in that Contract Year. (3) Determine the percentage reduction in the Adjusted Purchase Payment by dividing the amount determined in (1) by the amount determined in (2). (4) Multiply the percentage determined in (3) by the Adjusted Purchase Payment prior to the excess withdrawal. (5) Take the Adjusted Purchase Payment prior to the withdrawal and first reduce it by the amount of the GWB Amount for that Contract Year, then further reduce it by the amount determined in (4). 19 For example, assume your contract has one Annuitant who is age 55 and you made a $25,000 Purchase Payment (the example does not reflect the deduction of income taxes or tax penalties, or fees and charges): . At issue, the Adjusted Purchase Payment is equal to the Purchase Payment, $25,000. . Assume that your Contract Value is $30,000 later in that Contract Year, and you make one $5,000 withdrawal. Because the withdrawal is made prior to the youngest Annuitant reaching age 59 1/2, the Adjusted Purchase Payment would be reduced by $5,000 divided by $30,000, or 16.67%. The result is a new Adjusted Purchase Payment of $20,833 ($25,000 minus [$25,000 multiplied by 16.67%]). . Assume that six years later, your Contract Value is $40,000, you have begun taking withdrawals under the GWB feature, your GWB Amount is $1,600, and you make total withdrawals of $5,000 in that Contract Year. The GWB Amount reduces the Adjusted Purchase Payment by the dollar amount of the GWB Amount, however because you make an excess withdrawal of $3,400 ($5,000 minus $1,600), the Adjusted Purchase Payment would be further reduced by [$3,400 divided by ($40,000 minus $1,600)], or 8.85%. The result is a new Adjusted Purchase Payment of $17,531 ($20,833 minus $1,600 minus [($20,833 minus $1,600) multiplied by 8.85%]). If the Adjusted Purchase Payment is greater than or equal to the contract value: you will receive Annuity Payments equal to your eligible GWB Amount (see "Guaranteed Withdrawal Benefit for Life" for more information) that will be paid to you as Annuity Payments until there is no longer any living Annuitant. If on the death of the last surviving Annuitant the total of all Annuity Payments on or after the Annuity Date is less than the Adjusted Purchase Payment, we will pay to the Beneficiary the GWB Amount as Annuity Payments until the total payments made to the Annuitant(s) and Beneficiary (or if there is no living Beneficiary to the last surviving Beneficiary's estate) are equal to the Adjusted Purchase Payment. If the Contract Value on the Annuity Date is greater than the Adjusted Purchase Payment: you will receive Annuity Payments equal to the greater of (a) or (b), where (a) is your eligible GWB Amount and (b) is the amount of Annuity Payments that will be paid to you by applying your Contract Value determined as of the Annuity Date (less premium and other taxes) to annuity income purchase rates that will pay you monthly Annuity Payments terminating with the last payment due prior to the death of the last living Annuitant. If on the death of the last surviving Annuitant the total of all Annuity Payments on or after the Annuity Date is less than the Contract Value on the Annuity Date, we will refund the difference to your Beneficiary (or if there is no living Beneficiary to the last surviving Beneficiary's estate). Annuity Income Option (1) is only available on the latest possible Annuity Date unless the GWB Amount is converted to an Annuity Payment as described in "Guaranteed Withdrawal Benefit for Life--Conversion of GWB Amount To Annuity Payments." The latest possible Annuity Date is the first day of the calendar month on or after the contract anniversary on or after the oldest Owner's (or, for contracts owned by certain trusts, the oldest Annuitant's) 95th birthday (or earlier if required by state law). ANNUITY INCOME OPTION (2). You may have the Contract Value determined as of the Annuity Date (less premium and other taxes) applied to annuity income purchase rates that will pay you monthly Annuity Payments until there is no longer any living Annuitant or for 120 monthly payments, whichever is longer. If the surviving Annuitant dies before we have made all Annuity Payments due under the contract, any remaining Annuity Payments will be paid to the Beneficiary or if there is no living Beneficiary to the last surviving Beneficiary's estate. The Beneficiary or estate may choose instead to receive the present value of the remaining Annuity Payments in a lump sum. The present value is determined by commuting the future guaranteed annuity income using the annuity income purchase rates in effect at that time. This Annuity Income Option is available on any Annuity Date. IF ELECTED, BENEFITS UNDER THE GWB FEATURE WILL TERMINATE. ADDITIONAL INFORMATION If your Annuity Payments would be or become less than $20 a month, we have the right to change the frequency of payments so that your Annuity Payments are at least $20. We may require proof of age or sex of an Annuitant before making any Annuity Payments under the contract that are measured by the Annuitant's life. If an Annuitant's age or sex has been misstated, we will adjust the amount of monthly 20 annuity income to the amount that would have been provided at the correct age or sex. Once annuity income has begun, any overpayments or underpayments, with interest at 6% per annum, will be, as appropriate, deducted from or added to the payment or payments made after the adjustment. In the event that you purchased the contract as a tax-qualified contract, you must take distribution of the Contract Value in accordance with the minimum required distribution rules set forth in applicable tax law. Under certain circumstances, you may satisfy those requirements by electing an annuity option. Upon your death, if Annuity Payments have already begun, the death benefit would be required to be distributed to your Beneficiary at least as rapidly as under the method of distribution in effect at the time of your death. (See "Federal Income Tax Status" and the Statement of Additional Information for more details.) 21 6. ACCESS TO YOUR MONEY You can have access to the money in your contract by making a withdrawal (either a partial or a complete withdrawal) or by electing to receive Annuity Payments. Your Beneficiary can have access to the money in the contract when a death benefit is paid or under certain Annuity Options descried under "Annuity Payments (The Income Phase)--Annuity Options" which provide for continuing annuity payments or a cash refund during the Annuity Period upon death of the last surviving Annuitant. Under most circumstances, withdrawals can only be made during the Accumulation Phase. Partial withdrawals before the youngest Annuitant reaches age 59 1/2 or withdrawals that exceed the Guaranteed Withdrawal Benefit Amount allowed under the Guaranteed Withdrawal Benefit For Life feature may significantly impact the Guaranteed Withdrawal Benefit Amount by proportionally reducing the GWB Value upon which the benefit is determined. These reductions in the GWB Value and GWB Amount may be significant particularly when the Contract Value is lower than the GWB Value. (See "Guaranteed Withdrawal Benefit for Life" for more information.) When you make a complete withdrawal, you will receive the withdrawal value of the contract. The withdrawal value of the contract is the Contract Value of the contract at the end of the Business Day when we receive a written request for a withdrawal, less any applicable surrender charge. Currently the contract offers a single Investment Option. If we add additional Investment Options in the future, any partial withdrawal will be made pro rata from the Investment Option(s) you selected unless you instruct us otherwise. Under most circumstances the amount of any partial withdrawal must be for at least $50. You may request partial withdrawals by sending a letter to the Annuity Service Center or calling us there. Withdrawals by telephone or internet (where otherwise available) are limited as follows: (1) no withdrawal may be for more than $100,000; (2) total telephone withdrawals in a seven day period cannot total more than $100,000; and (3) if we have recorded an address change for an Owner during the past 10 days, the limits in (1) and (2) become $10,000. We reserve the right to change telephone and internet withdrawal requirements or limitations. We will pay the amount of any withdrawal from the Variable Account within seven days of when we receive the request in Good Order unless the suspension of payments or exchanges provision is in effect. We may withhold payment of withdrawal proceeds if any portion of those proceeds would be derived from a contract Owner's check that has not yet cleared (I.E., that could still be dishonored by the contract Owner's banking institution). We may use telephone, fax, Internet or other means of communication to verify that payment from the contract Owner's check has been or will be collected. We will not delay payment longer than necessary for us to verify that payment has been or will be collected. Contract Owners may avoid the possibility of delay in the disbursement of proceeds coming from a check that has not yet cleared by providing us with a certified check. In order to withdraw all or part of your Contract Value, you must submit a request to our Annuity Service Center. (See "Other Information--Requests and Elections."). We have to receive your withdrawal request in our Annuity Service Center prior to the Annuity Date or last Owner's death. If we are presented in Good Order with notification of the death of the last surviving Annuitant before any requested transaction is completed (including transactions under Systematic Withdrawal Programs), we will cancel the request. There are limits to the amount you can withdraw from certain tax-qualified contracts. (See "Federal Income Tax Status.") Income taxes, tax penalties and certain restrictions may apply to any withdrawal you make. SYSTEMATIC WITHDRAWAL PROGRAM You may use the Systematic Withdrawal Program to make withdrawals in an amount up to your eligible GWB Amount on a periodic basis. Systematic withdrawals must be at least $50 on a monthly, quarterly, semi-annual or annual basis. If you make an additional withdrawal that is not part of a Systematic Withdrawal Program, we will terminate the program for the remainder of the Contract Year, and you must re-enroll to start a new Systematic Withdrawal Program. Your Systematic Withdrawal Program transactions will take place on the first day of the month for the period you selected. If the New York Stock Exchange is closed on the scheduled day in a particular month, the withdrawal will take place on the next Business Day. If your contract is a qualified contract and you are subject to required minimum distributions ("MRD") under the Code, you must agree to receive your MRD through our Systematic Withdrawal Program so that we do not treat that part of your MRD that exceeds the GWB Amount as an excess withdrawal. (See "Guaranteed Withdrawal Benefit for Life--Withdrawals in Excess of Annual GWB Amount" for more information.) 22 IN ORDER TO RECEIVE THE GREATER OF YOUR ELIGIBLE GWB AMOUNT OR MRD, YOU MUST AGREE TO THE FOLLOWING CONDITIONS: (1) You must elect to receive the greater of the GWB Amount and the MRD and authorize us to calculate the MRD for you; (2) The MRD for a calendar year will be determined by us exclusively from the Contract Value of this contract; (3) No MRD withdrawal may occur until after December 31st of the calendar year in which your contract was issued; (4) If the contract was purchased prior to your reaching age 70 1/2, your first MRD must be withdrawn in the calendar year in which you reach age 70 1/2 (even though the Code allows you to delay your first MRD until April 1st of the following calendar year). We require this because only one calendar year's MRD will qualify for the exception to withdrawals in excess of the GWB Amount; and (5) If you make a withdrawal other than through this Systematic Withdrawal Program, you will no longer be eligible to receive the greater of the MRD or GWB Amount during that Contract Year, and any amounts withdrawn in excess of the GWB Amount will be considered excess withdrawals (see "Guaranteed Withdrawal Benefit for Life--Withdrawals in Excess of Annual GWB Amount"). The Systematic Withdrawal Program will terminate and you must re-enroll in the Systematic Withdrawal Program for the next Contract Year. We reserve the right to limit or modify this Systematic Withdrawal Program if we determine that the program will cause us to distribute during any Contract Year an amount more than the greater of the GWB Amount or the MRD for any calendar year. Each Systematic Withdrawal may be subject to federal income taxes, including any penalty tax that may apply. We reserve the right to modify or discontinue the Systematic Withdrawal Program except as necessary to meet MRD withdrawals as described above. (For a discussion of the surrender charge, see "Expenses" above.) SUSPENSION OF PAYMENTS OR EXCHANGES We may be required to suspend or postpone payments for withdrawals or exchanges for any period when: . the New York Stock Exchange is closed (other than customary weekend and holiday closings); . trading on the New York Stock Exchange is restricted; . an emergency exists, as determined by the Securities and Exchange Commission, as a result of which disposal of shares of the Investment Options is not reasonably practicable or we cannot reasonably value the shares of the Investment Options; . or during any other period when the Securities and Exchange Commission, by order, so permits for the protection of Owners. Federal laws designed to counter terrorism and prevent money laundering might, in certain circumstances, require us to block an Owner's ability to make certain transactions and thereby refuse to accept any requests for exchanges, withdrawals, surrenders, or death benefits until instructions are received from the appropriate regulator. We may also be required to provide additional information about you and your contract to government regulators. 23 7. GUARANTEED WITHDRAWAL BENEFIT FOR LIFE Your contract is issued with a living benefit feature that offers protection against market risk (the risk that your investments may decline in value or underperform your expectations). This feature is called the Guaranteed Withdrawal Benefit for Life (GWB). The GWB guarantees that when the youngest Annuitant reaches age 59 1/2, you are eligible to withdraw a specific amount each Contract Year called the Guaranteed Withdrawal Benefit Amount ("GWB Amount"). The GWB Amount, described below, is available for withdrawal each Contract Year during the Annuitant(s)' lifetime regardless of your Contract Value. You may make partial withdrawals up to the GWB Amount during the Contract Year. You are not required to make any withdrawals. However, unused portions of the GWB Amount are not cumulative and do not carry over into future Contract Years. The GWB Amount is determined each Contract Year by multiplying the Guaranteed Withdrawal Benefit Value ("GWB Value"), described below, by the Withdrawal Percentage, also described below. THE GWB VALUE DOES NOT ESTABLISH OR GUARANTEE ANY CONTRACT VALUE OR MINIMUM RETURN FOR ANY INVESTMENT OPTION AND CANNOT BE TAKEN AS A LUMP SUM. Income taxes and penalties may apply to your withdrawals. No benefit is payable until the youngest Annuitant reaches age 59 1/2. Withdrawals prior to the youngest Annuitant reaching 59 1/2 will decrease the GWB Value as described below in "Withdrawals Before Youngest Annuitant Reaches Age 59 1/2". The Annuitant(s) will be listed on the contract and may not be changed after the contract date (except by court order). YOU SHOULD CAREFULLY CONSIDER WHEN TO BEGIN TAKING WITHDRAWALS. IF YOU BEGIN TAKING WITHDRAWALS TOO SOON, YOU MAY LIMIT THE VALUE OF THE GWB FEATURE. FOR EXAMPLE, TAKING YOUR FIRST WITHDRAWAL AT A YOUNGER AGE MAY RESULT IN A LOWER WITHDRAWAL PERCENTAGE. HOWEVER, IF YOU DELAY TAKING WITHDRAWALS FOR TOO LONG, YOU MAY LIMIT THE NUMBER OF YEARS AVAILABLE FOR YOU TO TAKE WITHDRAWALS IN THE FUTURE (DUE TO LIFE EXPECTANCY). You have the option of receiving withdrawals under the GWB feature or receiving payments under an Annuity Income Option. You should consult with your registered representative when deciding how to receive income under this contract. In making this decision, you should consider many factors, including the relative amount of current income provided by the two options, the potential ability to receive higher future payments through potential increases to the GWB Value (as described below), your potential need to make additional withdrawals in the future, and the relative values to you of the death benefits available prior to and after annuitization. At any time during the Accumulation Phase, you can elect to annuitize under current annuity rates. This may provide higher income amounts if the current annuity option rates applied to the Contract Value on the Annuity Date exceed the GWB Amount payments. Also, after-tax annuity income payment amounts provided by annuitizing under current annuity rates may be higher due to different tax treatment of this income compared to the tax treatment of the payments received under the GWB feature. (See "Federal Income Tax Status") TAX TREATMENT. The tax treatment of withdrawals under the GWB feature is uncertain. It is conceivable that the amount of potential gain could be determined based on the GWB Value at the time of the withdrawal, if the GWB Value is greater than the Contract Value (prior to surrender charges, if applicable). This could result in a greater amount of taxable income reported under a withdrawal and conceivably a limited ability to recover any remaining basis if there is a loss on surrender of the contract. Consult your tax advisor prior to purchase. MANAGING YOUR WITHDRAWALS. It is important that you carefully manage your annual withdrawals. To retain the full guarantees of this feature, your annual withdrawals cannot exceed the GWB Amount each Contract Year. In other words, you should not take excess withdrawals. If you do take an excess withdrawal, we will reduce the GWB Value proportionately (as described below) and reduce the GWB Amount to the new GWB Value multiplied by the applicable Withdrawal Percentage. THESE REDUCTIONS IN THE GWB VALUE AND GWB AMOUNT MAY BE SIGNIFICANT PARTICULARLY WHEN THE CONTRACT VALUE IS LOWER THAN THE GWB VALUE (SEE "WITHDRAWALS IN EXCESS OF ANNUAL GWB AMOUNT" BELOW). You are still eligible to receive lifetime payments so long as the withdrawal that exceeded the GWB Amount did not cause your Contract Value to decline to zero. IF THE CONTRACT VALUE IS REDUCED TO ZERO BECAUSE YOU MAKE A FULL WITHDRAWAL AND TOTAL WITHDRAWALS IN THAT CONTRACT YEAR (INCLUDING THE WITHDRAWAL THAT REDUCES THE CONTRACT VALUE TO ZERO) EXCEED THE GWB AMOUNT, YOUR CONTRACT WILL BE TERMINATED AND YOU WILL NOT RECEIVE LIFETIME PAYMENTS. IT IS YOUR RESPONSIBILITY TO MANAGE WITHDRAWALS, AND YOU WILL NOT BE NOTIFIED IF YOU SUBMIT A WITHDRAWAL REQUEST THAT CAUSES AN EXCESS WITHDRAWAL, INCLUDING AN EXCESS WITHDRAWAL THAT REDUCES THE CONTRACT VALUE TO ZERO AND TERMINATES THE CONTRACT. 24 You are not required to withdraw the full GWB Amount each year. However, if you choose to receive only a part of your GWB Amount in any given Contract Year, your GWB Amount is not cumulative and your GWB Value and GWB Amount will not increase as a result of taking a smaller withdrawal. For example, if your Withdrawal Percentage is 5%, you cannot withdraw 3% of the GWB Value in one year and then withdraw 7% of the GWB Value the next year without making an excess withdrawal in the second year. REQUIRED MINIMUM DISTRIBUTIONS. For IRAs and other contracts subject to Section 401(a)(9) of the Code, you may be required to take withdrawals to fulfill MRD generally beginning at age 70 1/2. These required distributions may be larger than your GWB Amount. If you enroll in the Systematic Withdrawal Program (see "Access to Your Money--Systematic Withdrawal Program"), we will not treat that part of your MRD that exceeds the GWB Amount as an excess withdrawal. You must be enrolled in the Systematic Withdrawal Program to qualify for this exception. The calculation of required distributions is based only on information relating to this contract only. To enroll in the Systematic Withdrawal Program, please contact our Annuity Service Center. GWB AMOUNT The initial GWB AMOUNT is determined by multiplying the applicable WITHDRAWAL PERCENTAGE by the GWB Value. Once the GWB Amount is determined for a Contract Year, it will not change for the rest of that Contract Year. On each subsequent contract anniversary, the GWB Amount may change as described below. Before the youngest Annuitant reaches the age of 59 1/2, the GWB Amount is zero. Once the youngest Annuitant reaches age 59 1/2, your first withdrawal will establish a Withdrawal Percentage as shown in the table below. Once established, your Withdrawal Percentage will never change. If the contract has two Annuitants on the contract date and one Annuitant dies before a Withdrawal Percentage is determined, the age of the surviving Annuitant will be used to determine the applicable Withdrawal Percentage from the table below. If you never take a withdrawal before the latest possible Annuity Date, the Withdrawal Percentage for age 76 and older indicated in the table below will be used to establish your eligible GWB Amount on the latest possible Annuity Date. For contracts issued based on applications received on or after November 17, 2014:
Withdrawal Percentage - Withdrawal Percentage - Single Annuitant Joint Annuitants Age at 1st Withdrawal (Annuitant's Age) (Youngest Annuitant's Age) ------------------------------------------------------------------------- 59 1/2 - 64 4% 4% ------------------------------------------------------------------------- 65 - 75 5% 4.75% ------------------------------------------------------------------------- 76 and older 5.50% 5.00%
For contracts issued based on applications received prior to November 17, 2014:
Youngest Annuitant's Age at 1st Withdrawal Withdrawal Percentage ----------------------------------------------------------------- 59 1/2 - 64 4% ----------------------------------------------------------------- 65 - 75 5% ----------------------------------------------------------------- 76 and older 6% -----------------------------------------------------------------
On each contract anniversary, a new GWB Amount will be calculated by multiplying the Withdrawal Percentage established by your first withdrawal after the youngest Annuitant reaches age 59 1/2 by the GWB Value on that same contract anniversary. Generally, your new GWB Amount will be equal to or greater than the first GWB Amount established following the first withdrawal after the youngest Annuitant reached 59 1/2 as long as total withdrawals in any Contract Year do not exceed the GWB Amount for that same Contract Year. Each time you make a withdrawal, your Contract Value will be reduced by the amount of the withdrawal. However, if total withdrawals in any Contract Year exceed the GWB Amount for that same Contract Year, there will be a proportionate reduction in your GWB Value as described below which may result in a lower GWB Amount in future Contract Years. See Appendix C for examples of how your GWB Amount is calculated. 25 GWB VALUE The GWB VALUE is a value that is used to determine the GWB Amount each Contract Year once you make your first withdrawal after the youngest Annuitant reaches age 59 1/2. Your contract will also have a GWB Value prior to the date the youngest Annuitant reaches age 59 1/2, and during that time the GWB Value may increase or decrease as described below. The GWB Value on the contract date is equal to the Purchase Payment. If you make withdrawals before the youngest Annuitant reaches age 59 1/2 the GWB Value will be reduced proportionately. (See "Withdrawals Before Youngest Annuitant Reaches Age 59 1/2" below). Similarly, if you make withdrawals after the youngest Annuitant reaches age 59 1/2 and the total withdrawals in a Contract Year are greater than the GWB Amount for that Contract Year, then the GWB Value will be reduced proportionately. (See "Withdrawals in Excess of Annual GWB Amount" below.) On each contract anniversary prior to the oldest Annuitant turning age 85, the GWB Value is compared to the Contract Value to determine whether the GWB Value should be increased. If the contract has joint Annuitants and the oldest Annuitant dies before the contract anniversary that falls on or after his or her 85th birthday, the surviving Annuitant's age will be used. However, if the oldest Annuitant dies on or after the contract anniversary that falls on or after his or her 85th birthday, the GWB Value will not increase. If the Contract Value is lower than the GWB Value, the GWB Value will not change. If the Contract Value is greater than the GWB Value, the GWB Value will be automatically increased to equal the Contract Value. If you make a withdrawal on the contract anniversary, the withdrawal will be deducted from the Contract Value after it is compared to the GWB Value. Any new GWB Value will be used to determine the GWB Amount for the rest of that Contract Year, provided the youngest Annuitant has reached age 59 1/2 and a Withdrawal Percentage has been established by your first withdrawal of a GWB Amount. WITHDRAWALS BEFORE YOUNGEST ANNUITANT REACHES AGE 59 1/2 You are not eligible to withdraw any part of the GWB Amount until the youngest Annuitant reaches age 59 1/2. If you make a withdrawal before the youngest Annuitant reaches age 59 1/2, the GWB Value is reduced by a percentage determined by dividing the withdrawal amount by the Contract Value at time of the withdrawal. We calculate the new GWB Value as follows. (1) At the end of the valuation period (a "valuation period" is the period of time between one determination of the value of Accumulation Units to the next determination on the following Business Day) in which you make the withdrawal, we divide the withdrawal by what the Contract Value would have been at the end of the valuation period had you not taken the withdrawal. The result is the percentage factor used to calculate the reduction in the GWB Value. (2) Multiply the percentage determined in (1) by the GWB Value immediately before the withdrawal. The result is the amount by which the old GWB Value is reduced. For example, assume your contract has one Annuitant who is age 55 and you made a $25,000 Purchase Payment (the example does not reflect the deduction of income taxes or tax penalties, or fees and charges other than the surrender charge): . If you make no withdrawals during the first Contract Year your GWB Value would be $25,000 for the whole Contract Year. . Assume that your Contract Value is $30,000 later in that Contract Year and you make one $5,000 withdrawal ($4,900 of which would be paid to you after deduction of a $100 surrender charge). . Your GWB Value would be reduced by 16.67% ($5,000 withdrawal amount divided by $30,000 Contract Value). . The result is a new GWB Value of $20,833 ($25,000 GWB Value minus [$25,000 multiplied by 16.67%]). WITHDRAWALS IN EXCESS OF ANNUAL GWB AMOUNT If you withdraw more than the GWB Amount in any Contract Year on or after the youngest Annuitant reaches age 59 1/2, the GWB Value is reduced by an amount equal to the percentage determined by dividing the portion of a withdrawal that is in excess of the GWB Amount for that Contract Year ("excess withdrawal") by the Contract Value at time of the excess withdrawal, as described below. The new GWB Value following an excess withdrawal is calculated as follows: 1) Determine the portion of the most recent withdrawal, in combination with the sum of all other withdrawals taken in the current Contract Year, that exceeds the GWB Amount for that Contract Year. 26 2) Determine what the Contract Value would have been at the end of the valuation period had you NOT taken the withdrawal, less any portion of the most recent withdrawal that is eligible to be applied to the GWB Amount in that Contract Year. 3) Determine the percentage reduction in GWB Value by dividing the amount determined in (1) by the amount determined in (2). 4) Multiply the percentage determined in (3) by the GWB Value prior to the withdrawal. 5) Take the GWB Value prior to the withdrawal and reduce it by the amount determined in (4). This will result in a new GWB Value. For example, assume your contract is in its sixth Contract Year, has one Annuitant who is age 60, a Contract Value of $30,000 and a GWB Value of $25,000 (the example does not reflect the deduction of income taxes or tax penalties or fees and charges; surrender charges do not apply after the fifth Contract Year): . If you make a first withdrawal of $5,000 in the sixth Contract Year, you will establish a Withdrawal Percentage of 4% and be eligible to withdraw up to the GWB Amount of $1,000 ($25,000 multiplied by 4%) without causing a reduction in GWB Value. . Because your first withdrawal is $5,000, $1,000 of the withdrawal is eligible to be applied to the GWB Amount for that Contract Year and $4,000 of the withdrawal is an excess withdrawal. . For purposes of determining the impact on the GWB Value, the Contract Value is first reduced by the GWB Amount ($30,000 minus $1,000) resulting in a Contract Value of $29,000. . The $4,000 excess withdrawal proportionally reduces the Contract Value by 13.79% ($4,000 divided by $29,000) which results in a new GWB Value of $21,552.50 ($25,000 less [25,000 multiplied by 13.79%]). . If there are no further withdrawals in that Contract Year and the GWB Value is not increased on the next contract anniversary, the GWB Amount for the next Contract Year will be $862.10 ($21,552.50 multiplied by 4%). If the contract is a qualified contract and you elect to receive your MRD under the Code through our Systematic Withdrawal Program, the references to GWB Amount in (1) and (2) above shall mean "the greater of the GWB Amount or any minimum required distribution under the Code determined exclusively by us from the Contract Value." If you take a withdrawal to satisfy your minimum required distribution in a way other than through our Systematic Withdrawal Program and your MRD is in excess of your GWB Amount, the withdrawal may result in surrender charges (if applicable) and a reduction in your GWB Value. Any premium tax amount that we deduct from your Contract Value will not be treated as an excess withdrawal. See Appendix C for additional examples of GWB Value increases and decreases. CONVERSION OF GWB AMOUNT TO ANNUITY PAYMENTS If the Contract Value is reduced to zero because you make a full withdrawal and total withdrawals in that Contract Year (including the withdrawal that reduces the Contract Value to zero) do not exceed the GWB Amount, we will convert the GWB Amount to Annuity Payments. If that happens, we will pay you the difference between your GWB Amount for that Contract Year (less prior withdrawals in that Contract Year) and the Contract Value prior to that withdrawal, and then, on the first day of the calendar month on or after your next contract anniversary, the contract will convert to an annuity option that will pay you an annual amount equal to your GWB Amount for so long as any Annuitant is still alive. The first payment will be equal to any remaining portion of the GWB Amount for the Contract Year at the time of conversion. Once a conversion occurs under this provision, the contract will no longer have a Contract Value. IF THE CONTRACT VALUE IS REDUCED TO ZERO BECAUSE YOU MAKE A FULL WITHDRAWAL AND TOTAL WITHDRAWALS IN THAT CONTRACT YEAR (INCLUDING THE WITHDRAWAL THAT REDUCES THE CONTRACT VALUE TO ZERO) EXCEED THE GWB AMOUNT, YOUR CONTRACT WILL BE TERMINATED AND YOU WILL NOT RECEIVE ANY ANNUITY PAYMENTS. If you are receiving GWB Amount payments through our Systematic Withdrawal Program and a withdrawal under the Systematic Withdrawal Program causes this provision to apply, we will continue to pay your GWB Amount as an Annuity Payment on the same day of the month for the period you selected under the Systematic Withdrawal Program. The resulting GWB Amount for future Contract Years will be paid in monthly Annuity Payments as long as each monthly Annuity Payment is at least $20. We reserve the right to pay the GWB Amount as an annual Annuity Payment or in any other payment method that is mutually agreeable to you and us. DEATH BENEFIT AFTER CONVERSION OF GWB AMOUNT TO ANNUITY PAYMENTS. On the death of the last surviving Annuitant, payments will continue to your Beneficiary until the Beneficiary has received the Return of Purchase Payment death benefit described below under "Death Benefit During the Accumulation Phase." Once Annuity Payments begin, the 27 Return of Purchase Payment death benefit will be reduced by the amount of each Annuity Payment. These payments will be equal in amount, except for the last payment, which will be in an amount necessary to reduce the Return of Purchase Payment death benefit described below to zero. ADDITIONAL INFORMATION If an Annuitant's age has been misstated, we will adjust the GWB Amount to reflect the actual age. If we have previously overpaid GWB Amounts and the GWB Amount has been converted to Annuity Payments as described in the Conversion of GWB Amount to Annuity Payments provision of this contract, we will withhold and apply any future GWB Amounts to the overpayment until we have recovered the amount of the overpayment. If the contract has terminated, we reserve the right to recover the amount of any overpayment from your estate. If we have previously underpaid GWB Amounts and the GWB Amount has been converted to Annuity Payments as described in the Conversion to Annuity Income of GWB Amount Payments provision of this Contract, we will make a lump sum payment equal to the amount previously underpaid plus interest at 6% per annum, compounded annually. For contracts not owned by a trust, Owner(s) must be Annuitant(s). Because the Internal Revenue Code requires certain distributions following the death of an Owner, we generally limit joint ownership to spouses only. In order to continue the contract and the GWB after the first Annuitant's death, the designated joint Annuitant must be the first Annuitant's spouse on the date of death. For contracts owned by a grantor trust, in order for the joint Annuitant to be able to continue the contract after the first Annuitant's death, federal income tax law requires that the designated Beneficiary (in this case, the joint Annuitant) must be the Annuitant's spouse on the date of the Annuitant's death. This may impact certain estate planning considerations which depend on the grantor trust being treated as the designated Beneficiary and should be taken into account prior to the purchase of the contract. We reserve the right to accelerate any payment, in a lump sum, that is less than $500 or to comply with requirements under the Internal Revenue Code (including minimum distribution requirements for IRAs and other contracts subject to Section 401(a)(9) of the Internal Revenue Code and non-qualified contracts subject to Section 72(s)). 28 8. PERFORMANCE We periodically advertise subaccount performance relating to the Investment Options. We will calculate performance by determining the percentage change in the value of an Accumulation Unit by dividing the increase (decrease) for that unit by the value of the Accumulation Unit at the beginning of the period. This performance number reflects the deduction of the Variable Account Product Charges and the Investment Option expenses. It does not reflect the deduction of any applicable account fee or surrender charge. The deduction of these charges would reduce the percentage increase or make greater any percentage decrease. Any advertisement will also include total return figures which reflect the deduction of the Variable Account Product Charges, account fee, surrender charges, and the Investment Option expenses. For periods starting prior to the date the contract was first offered, the performance will be based on the historical performance of the corresponding Investment Options for the periods commencing from the date on which the particular Investment Option was made available through the Variable Account. In addition, the performance for the Investment Options may be shown for the period commencing from the inception date of the Investment Options. These figures should not be interpreted to reflect actual historical performance of the Variable Account. We or a selling firm may, from time to time, include in our advertising and sales materials performance information for funds or investment accounts related to the Investment Options and/or their investment advisers or subadvisers. Such related performance information also may reflect the deduction of certain contract charges. We may also include in our advertising and sales materials tax deferred compounding charts and other hypothetical illustrations, which may include comparisons of currently taxable and tax deferred investment programs, based on selected tax brackets. We or a selling firm may advertise the GWB feature using illustrations showing how the benefit works with historical performance of specific Investment Options or with a hypothetical rate of return or a combination of historical and hypothetical returns. These illustrations will reflect the deduction of all applicable charges including the portfolio expenses of the underlying Investment Options. You should know that for any performance we illustrate, future performance will vary and results shown are not necessarily representative of future results. 29 9. DEATH BENEFIT DURING THE ACCUMULATION PHASE UPON YOUR DEATH If you die during the Accumulation Phase, we will pay a death benefit to your Beneficiary (or Beneficiaries). Where there are multiple Beneficiaries, the death benefit for each Beneficiary will be determined as of the time that Beneficiary submits the necessary documentation in Good Order. If we are presented in Good Order with notification of the death of the last surviving Annuitant before any requested transaction is completed (including transactions under automated investment strategies and automated withdrawal programs), we will cancel the request. If you have a joint Annuitant, the death benefit will not be paid when the first Annuitant dies (except for certain qualified contracts with a joint Annuitant who is age 95 or older at the death of the first Annuitant--see "Spousal Continuation" below). Upon the death of either Annuitant, the surviving joint Annuitant will be the primary Beneficiary. Any other Beneficiary designation will be treated as a contingent Beneficiary, unless instructed otherwise. If a non-natural person owns the contract, the Annuitant will be deemed to be the Owner in determining the death benefit. DEATH BENEFIT The death benefit will be payable to your Beneficiaries upon the last surviving Annuitant's death. The Beneficiaries must elect the death benefit to be paid under one of the two options below. Subject to our administrative procedures, we will pay a death benefit equal to the Contract Value death benefit if the Contract Value death benefit is greater than the sum of payments to be received under the Return of Purchase Payment death benefit. Until you direct us to pay those proceeds to you in a lump sum or under any other option we make available, the death benefit amount will remain in the Variable Account for up to five years from the date of death. 1) Contract Value The first option is a death benefit equal to the Contract Value as determined as of the end of the Business Day on which we receive due proof of death and an election for the payment method. This death benefit amount remains in the Investment Options until each of the Beneficiaries submits the necessary documentation in Good Order to claim his/her death benefit. (See "General Death Benefit Provisions" below.) Any death benefit amounts held in the Variable Account on behalf of the remaining Beneficiaries are subject to investment risk. 2) Return of Purchase Payment Death Benefit The second option is a Return of Purchase Payment death benefit. At issue the Return of Purchase Payment death benefit is equal to the Purchase Payment. The Return of Purchase Payment death benefit is reduced by each withdrawal as described below. A. Withdrawals Prior to Age 59 1/2. If you make withdrawals before the youngest Annuitant reaches age 59 1/2, the Return of Purchase Payment death benefit will be reduced for each such withdrawal as follows: (1) At the end of the valuation period in which you make the withdrawal, we divide the withdrawal by what the Contract Value would have been at the end of the valuation period had you not taken the withdrawal. The result is the percentage factor used to calculate the reduction to the Return of Purchase Payment death benefit. (2) Multiply the percentage determined in (1) by the Return of Purchase Payment death benefit immediately before the withdrawal. (3) Take the Return of Purchase Payment death benefit prior to the withdrawal and reduce it by the amount determined in (2). B. Withdrawals On or After Age 59 1/2. (i) If total withdrawals in any Contract Year after the youngest Annuitant reaches age 59 1/2 do not exceed the GWB Amount for that same Contract Year, the Return of Purchase Payment death benefit is reduced by the dollar amount of the withdrawal(s). (ii) If you make withdrawals on or after the date the youngest Annuitant reaches age 59 1/2 and the total withdrawals in a Contract Year are greater than the GWB Amount for that Contract Year, then the Return of Purchase Payment death benefit will be reduced for each such withdrawal as follows: (1) Determine the portion of the most recent withdrawal that, in combination with the sum of all other withdrawals taken in the current Contract Year, exceeds the GWB Amount for that Contract Year. 30 (2) Determine what the Contract Value would have been at the end of the valuation period had you NOT taken the withdrawal, less any portion of the most recent withdrawal that is eligible to be applied to the GWB Amount in that Contract Year. (3) Determine the percentage reduction in the Return of Purchase Payment death benefit by dividing the amount determined in (1) by the amount determined in (2). (4) Multiply the percentage determined in (3) by the Return of Purchase Payment death benefit prior to the excess withdrawal. (5) Take the Return of Purchase Payment death benefit prior to the withdrawal and first reduce it by the amount of the GWB Amount for that Contract Year, then further reduce it by the amount determined in (4). If the last Annuitant dies before a Withdrawal Percentage has been determined, the Withdrawal Percentage will be based on the age of last Annuitant at time of death. If the last Annuitant had not reached age 59 1/2 at the time of their death, the Withdrawal Percentage will be 4%. The Return of Purchase Payment death benefit will be paid to your Beneficiary in monthly payments or at any frequency acceptable to your Beneficiary and us (but not less than annually). Such installment payments shall be equal in amount, except for the last payment, which will be in an amount necessary to reduce the Return of Purchase Payment death benefit to zero. Except to the extent required under federal income tax law, the total annual payment will not exceed the GWB Amount. If your Beneficiary dies while such payments are made, the payments will continue to the Beneficiary's estate unless such other designee has been agreed to by us in writing. (See Appendix B for examples of the death benefit.) GENERAL DEATH BENEFIT PROVISIONS Any death benefit will be paid in accordance with applicable law or regulations governing death benefit payments. The death benefit amount remains in the Variable Account until distribution begins. From the time the death benefit is determined until complete distribution is made, any amount in the Variable Account will continue to be subject to investment risk. This risk is borne by the Beneficiary. After the death of all the Owners and Annuitants, each Beneficiary has the right to receive their share of the death benefit. Before we make a payment to any Beneficiary, we must receive at our Annuity Service Center due proof of death (generally a death certificate, see PROOF OF DEATH, below) for each Owner and Annuitant, an election for the payment method and any required tax withholding and other forms. We may seek to obtain a death certificate directly from the appropriate governmental body if we believe that any Owner may have died. Once we have received due proof of death, we will, upon notice to us, pay any Beneficiary who has provided us with required tax withholding and other forms. We will then have no further obligations to that Beneficiary. If a Beneficiary has been designated to receive a specified fraction of the death benefit, we will pay that fraction as determined on the date of payment. PROOF OF DEATH. We will require due proof of death before any death benefit is paid. Due proof of death will be: . a certified death certificate; . a certified decree of a court of competent jurisdiction as to the finding of death; . a written statement by a licensed medical doctor who attended the deceased; or . any other proof satisfactory to us. If the Beneficiary under a tax-qualified contract is the Annuitant's spouse, the tax law generally allows distributions to begin by the year in which the Annuitant would have reached 70 1/2 (which may be more or less than five years after the Annuitant's death). A Beneficiary must elect the death benefit to be paid under one of the payment options. The entire death benefit must be paid within five years of the date of death unless the Beneficiary elects to have the death benefit payable under an annuity option. The death benefit payable under an annuity option must be paid over the Beneficiary's lifetime or for a period not extending beyond the Beneficiary's life expectancy. For non-qualified contracts, payment must begin within one year of the date of death. For tax-qualified contracts, payment must begin no later than the end of the calendar year immediately following the year of death. Upon the death of your Beneficiary, the death benefit would be required to be distributed to your Beneficiary's beneficiary at least as rapidly as under the method of distribution in effect at the time of your Beneficiary's death. (See "Federal Income Tax Status.") 31 If a lump sum payment is elected and all the necessary requirements are met, the payment will be made within seven days. Payment to the Beneficiary under an annuity option may only be elected during the 60-day period beginning with the date we receive due proof of death. ABANDONED PROPERTY REQUIREMENTS. Every state has unclaimed property laws which generally declare annuity contracts to be abandoned after a period of inactivity of three to five years from the date the death benefit is due and payable. For example, if the payment of a death benefit has been triggered, but after a thorough search we are still unable to locate the Beneficiary of the death benefit, or the Beneficiary does not come forward to claim the death benefit in a timely manner, the death benefit will be paid to the abandoned property division or unclaimed property office of the state in which the Beneficiary or the Owner last resided, as shown on our books and records, or to our state of domicile. ("Escheatment" is the formal, legal name for this process.) However, the state is obligated to pay the death benefit (without interest) if your Beneficiary steps forward to claim it with the proper documentation. To prevent your contract's proceeds from being paid to the state's abandoned or unclaimed property office, it is important you promptly update your Beneficiary designations, including addresses, if they change. SPOUSAL CONTINUATION When the primary Beneficiary is the spouse of the Annuitant and is a joint Annuitant, upon the first Annuitant's death, the spouse will be deemed to have elected to continue the contract in his or her own name. If the contract is a tax-qualified contract and the surviving Annuitant is age 95 or older on the day we receive due proof death, the contract may not be continued. In this case, the surviving Annuitant may elect a death benefit as set forth above. Spousal continuation will not satisfy minimum required distribution rules for qualified contracts other than IRAs (see "Federal Income Tax Status"). For contracts owned by a grantor trust, in order for the spouse to be able to continue the contract after the first Annuitant's death, federal income tax law requires that the joint Annuitant must be the Annuitant's spouse on the date of the Annuitant's death. Under the Internal Revenue Code ("Code"), spousal continuation and certain distribution options are available only to a person who is defined as a "spouse" under applicable federal law. All contract provisions will be interpreted and administered in accordance with the requirements of the Code. Any Code reference to "spouses" includes those persons who are married spouses under state law, regardless of sex. 32 10. FEDERAL INCOME TAX STATUS INTRODUCTION We do not intend the following discussion to be tax advice. For tax advice you should consult a tax adviser. Although the following discussion is based on our understanding of federal income tax laws as currently interpreted, there is no guarantee that those laws or interpretations will not change. This discussion does not address federal gift tax, state or local income tax, or other considerations which may be involved in the purchase, operation, or exercise of any rights or options under the contract. Also, this discussion does not address estate tax issues that might arise due to the death of an Owner or Annuitant. The particular situation of each Owner, Annuitant, and Beneficiary will determine the federal estate taxes and the state and local estate, inheritance and other taxes due. You should seek competent tax advice on such matters pertaining to you. In addition, we make no guarantee regarding any tax treatment - federal, state, or local - of any contract or of any transaction involving a contract. TAX DEFERRAL DURING ACCUMULATION PERIOD Under existing provisions of the Code, any increase in an Owner's Contract Value is generally not taxable to the Owner until received, either in the form of annuity income payments or in some other form of distribution. However, as discussed below, this rule applies only if: (1) the investments of the Variable Account are "adequately diversified" in accordance with Treasury Department regulations; (2) the Company, rather than the Owner, is considered the owner of the assets of the Variable Account for federal income tax purposes; and (3) the Owner is an individual (or an individual is treated as the Owner for tax purposes). DIVERSIFICATION REQUIREMENTS The Code and Treasury Department regulations prescribe the manner in which the investments of a segregated asset account, such as the subaccount of the Variable Account, are to be "adequately diversified." If the Variable Account fails to comply with these diversification standards, the contract will not be treated as an annuity contract for federal income tax purposes and the Owner would generally be taxed currently on the excess of the Contract Value over the Purchase Payment paid for the contract. The subaccounts of the Variable Account intend to comply with the diversification requirements. In this regard, we have entered into agreements with funds under the subaccounts that require the funds to be "adequately diversified" in accordance with the Internal Revenue Code and Treasury Department regulations. OWNERSHIP TREATMENT In certain circumstances, variable annuity contract owners may be considered the owners, for federal income tax purposes of the assets of a segregated asset account, such as the Variable Account, used to support their contracts. In those circumstances, income and gains from the segregated asset account would be includible in the contract owners' gross income. The Internal Revenue Service (the "IRS") has stated in published rulings that a variable contract owner will be considered the owner of the assets of a segregated asset account if the owner possesses incidents of ownership in those assets, such as the ability to exercise investment control over the assets. As of the date of this prospectus, no comprehensive guidance has been issued by the IRS clarifying the circumstances when such investment control by a variable contract owner would exist. As a result, your right to make exchanges among the Investment Options may cause you to be considered the owner of the assets of the Variable Account. We therefore reserve the right to modify the contract as necessary to attempt to prevent contract Owners from being considered the owners of the assets of the Variable Account. However, there is no assurance such efforts would be successful. SEPARATE ACCOUNT CHARGES It is conceivable that certain benefits or the charges for certain benefits such as the guaranteed withdrawal benefit, could be considered to be taxable each year as deemed distributions from the contract to pay for non-annuity benefits. We 33 currently treat these charges and benefits as an intrinsic part of the annuity contract and do not tax report these as taxable income until distributions are actually made. However, it is possible that this may change in the future if we determine that this is required by the IRS. If so, the charges or benefits could also be subject to a 10% penalty tax if the taxpayer is under age 59 1/2. NON-NATURAL OWNER As a general rule, contracts held by "non-natural persons" such as a corporation, trust or other similar entity, as opposed to a natural person, are not treated as annuity contracts for federal tax purposes. The income on such contracts (as defined in the tax law) is taxed as ordinary income that is received or accrued by the Owner of the contract during the taxable year. There are several exceptions to this rule for non-natural Owners. Under one exception, a contract will generally be treated as held by a natural person if the nominal owner is a trust or other entity that holds the contract as an agent for a natural person. We do not intend to offer the contracts to "non-natural" persons. However, we will offer the contracts to revocable grantor trusts in cases where the grantor represents that the trust is for the benefit of the grantor Annuitant (i.e. the contract is held by the trust for the benefit of a natural person (an "individual")). The following discussion assumes that a contract will be owned by an individual. DELAYED ANNUITY COMMENCEMENT DATES On the contract date, the Annuity Date is automatically set to be the first day of the calendar month on or after the contract anniversary that falls on or after the oldest Owner's 95th birthday. Federal income tax rules do not expressly identify a particular age by which annuity payments must begin. However, if the contract's Annuity Date occurs (or is scheduled to occur) at too advanced an age, it is conceivable that the Internal Revenue Service could take the position that the contract is not an annuity for federal income tax purposes. In that event, the income and gains under the contract could be currently includible in the Owner's income. The following discussion assumes that the contract will be treated as an annuity contract for federal income tax purposes. In addition, to qualify as an annuity for federal tax purposes, the contract must satisfy certain requirements for distributions in the event of the death of the Owner of the contract. The contract contains such required distribution provisions. For further information on these requirements see the Statement of Additional Information. QUALIFIED CONTRACTS You may use the contract as an Individual Retirement Annuity. The IRA contract has not yet been approved by the IRS as to the form of the IRA. Under Section 408(b) of the Code, eligible individuals may contribute to an Individual Retirement Annuity ("IRA"). The Code permits certain "rollover" contributions to be made to an IRA. In particular, certain qualifying distributions from a 401(a) plan, a tax sheltered annuity, a 403(b) plan, a Governmental 457(b) plan, or an IRA, may be received tax-free if rolled over to an IRA within 60 days of receipt. Because the contract's minimum initial payment of $50,000 is greater than the maximum annual contribution permitted to an IRA, a qualified contract may be purchased only in connection with a "rollover" of the proceeds from a qualified plan, tax sheltered annuity, or IRA. In order to qualify as an IRA under Section 408(b) of the Code, a contract must contain certain provisions: (1) the Owner of the contract must be the Annuitant and, except for certain transfers incident to a divorce decree, the Owner cannot be changed and the contract cannot be transferable; (2) the Owner's interest in the contract cannot be forfeitable; and (3) annuity and payments following the death of an Owner must satisfy certain required minimum distributions. contracts issued on a qualified basis will conform to the requirements for an IRA and will be amended to conform to any future changes in the requirements for an IRA. 2009 MRD WAIVER. For MRDs following the death of the Owner or Annuitant of a qualified contract, the five-year rule is applied without regard to calendar year 2009. For instance, for a contract Owner who died in 2009, the five-year period would end in 2015 instead of 2014. The MRD 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 MRD waiver. CONTRACT VALUES AND PROCEEDS Under current law, you will not be taxed on increases in the value of your contract until a distribution occurs. A distribution may occur in the form of a withdrawal, payments following the death of an Owner and payments under an Annuity Income Option. 34 The assignment or pledge of any portion of the value of a contract may also be treated as a distribution. In the case of a qualified contract, you may not receive or make any such pledge. Any such pledge will result in disqualification of the contract as an IRA and inclusion of the value of the entire contract in income. Additionally, a transfer of non-qualified contract for less than full and adequate consideration will result in a deemed distribution, unless the transfer is to your spouse (or to a former spouse pursuant to divorce decree). The taxable portion of a distribution is taxed as ordinary income. Under current federal income tax law, the taxable portion of distributions under variable annuity contracts and qualified plans (including IRAs) is not eligible for the reduced tax rate applicable to long-term capital gains and qualifying dividends. TAXES ON SURRENDER OF THE CONTRACT BEFORE ANNUITY INCOME PAYMENTS BEGIN If you fully surrender your contract before annuity income payments commence, you will be taxed on the portion of the distribution that exceeds your cost basis in your contract. In addition, amounts received as the result of the death of the Owner or Annuitant that are in excess of your cost basis will also be taxed. For non-qualified contracts, the cost basis is generally the amount or your payments, and the taxable portion of the proceeds is taxed as ordinary income. For qualified contracts, we will report the cost basis as zero, and the entire amount of the surrender payment is taxed as ordinary income. You may want to file an Internal Revenue Service form 8608 if any part of your Purchase Payment has been previously taxed. TAXES ON PARTIAL WITHDRAWALS Withdrawals of the GWB Amount and withdrawals received under the Systematic Withdrawal Program are treated as partial withdrawals. Partial withdrawals under a non-qualified contract are treated for tax purposes as first being taxable withdrawals of investment income, rather than as return of your Purchase Payment, until all investment income has been withdrawn. You will be taxed on the amount withdrawn to the extent that your Contract Value at that time exceeds your payments. In the event of your GWB Amount in a Contract Year exceeds your Contract Value, you will be taxed on the amount withdrawn to the extent that your GWB Amount exceeds your Purchase Payment. Partial withdrawals under the qualified contract are prorated between taxable income and non-taxable return of investment. We will report the cost basis of a qualified contract as zero, and the partial withdrawal will be fully taxed unless you have filed an Internal Revenue Service form 8608 to identify the part of your Purchase Payment that has been previously taxed. Partial and complete withdrawals may be subject to a 10% penalty tax (see "10% Penalty Tax on Early Withdrawals"). Partial and complete withdrawals also may be subject to federal income tax withholding requirements. AGGREGATION OF CONTRACTS In certain circumstances, the IRS may determine the amount of annuity income payment or withdrawal from a contract that is includible in income by combining some or all of the annuity contracts a persons owns. For example, if a person purchases a contract offered by this prospectus and also purchases at approximately the same time an immediate annuity issued by us, the IRS might in certain circumstances treat the two contracts as one contract. In addition, if a person purchases two or more deferred annuity contracts from the same insurance company (or its affiliates) during any calendar year, all such contracts will be treated as one contract for purposes of determining the portion of the distribution that is includible in income. The effects of such aggregation are not always clear; however, it could affect the amount of a withdrawal or an annuity income payment that is taxable and the amount which might be subject to the 10% penalty tax described above. In the case of a qualified contract, the tax law requires for all post-1986 contributions and distributions that all individual retirement accounts and annuities be treated as one contract. TAXES ON ANNUITY INCOME PAYMENTS Although the tax consequences may vary depending on the form of annuity selected under the contract, the recipient of Annuity Income payments under the contract generally is taxed on the portion of such income payments that exceed the cost basis in the contract. In the case of fixed income payments, like the annuity Income payments provided under the contract, the exclusion amount is determined by multiplying (1) the annuity income payment by (2) the ratio of the investment in the contract, adjusted for any period certain or refund feature, to the total expected amount of annuity 35 income payments for the term of the contract (as determined under Treasury Department regulations). Once the total amount of the investment in the contract is excluded, Annuity Payments will be fully taxable. If annuity income payments cease because of the death of the Annuitant and before the total amount of the investment in the contract is recovered, the unrecovered amount generally will be allowed as a deduction. For qualified contracts, we report the cost basis as zero and each Annuity Payment is fully taxed unless you have filed an Internal Revenue Service form 8608 to identify the part of your Purchase Payment that has been previously taxed. 3.8% TAX ON NET INVESTMENT INCOME Federal tax law imposes a 3.8% Medicare tax is imposed on the lesser of 1. the taxpayer's "net investment income," (from non-qualified annuities, interest, dividends, etc., offset by specified allowable deductions), or 2. the taxpayer's modified adjusted gross income in excess of a specified income threshold ($250,000 for married couples filing jointly, $125,000 for married couples filing separately, and $200,000 otherwise). "Net investment income" in item 1 does not include distributions from tax-qualified plans (i.e., IRAs, Roth IRAs, or arrangements described in Code Sections 401(a), 403(b), or 457(b)) but such income will increase "modified adjusted gross income" in item 2. You should consult your tax advisor regarding the applicability of this tax to income you would receive under this annuity contract. 10% PENALTY TAX ON EARLY WITHDRAWALS OR DISTRIBUTIONS A penalty tax equal to 10% of the amount treated as taxable income may be imposed on distributions. The penalty tax applies to early withdrawals or distributions. The penalty tax is not imposed on: (1) distributions made to persons on or after age 59 1/2 ; (2) distributions made after death of the Owner; (3) distributions to a recipient who has become disabled; (4) distributions in substantially equal installments made for the life of the taxpayer or the lives of the taxpayer and a designated second person; or (5) in the case of qualified contracts, distributions received from the rollover of the contracts into another qualified contract or IRA. We believe that systematic withdrawals under the Systematic Withdrawal Program would not satisfy the exception to the 10-percent penalty tax described in (4) above. You should consult your tax advisor before electing to take systematic withdrawals commencing prior to age 59 1/2. OTHER TAX INFORMATION In the case of a qualified contract, a 50% excise tax is imposed on the amount by which minimum required payments following the death of Owner exceed actual distributions. We will withhold and remit to the U.S. Government a part of the taxable portion of each distribution made under the contract, unless the Owner or Beneficiary files a written election prior to the distribution stating that he or she chooses not to have any amounts withheld. Such an election will not relieve you of the obligation to pay income taxes on the taxable portion of any distribution. EXCHANGES OF CONTRACTS We may issue the contract in exchange for all or part of another annuity or life insurance contract that you own. Such an exchange will be tax free if certain requirements are satisfied. If the exchange is tax free, your investment in the contract immediately after the exchange will generally be the same as that of the contract exchanged. Your Contract Value immediately after the exchange may exceed your investment in the contract. That excess may be includable in income should amounts subsequently be withdrawn or distributed from the contract (e.g. as a partial surrender, full surrender, annuity income payment or death benefit). If you exchange part of an existing contract of a contract, the IRS might treat the two as one annuity contract in certain circumstances. See "Aggregation of Contracts" above. 36 In addition, before the Annuity Date, if we agree, you may exchange all (but not part) of your Contract Value for any immediate annuity contract we then offer. Such an exchange will be tax free if certain requirements are satisfied. You should consult your tax advisor in connection with an exchange for or of a contract. TRANSFER OF A CONTRACT TO OR FROM A REVOCABLE GRANTOR TRUST A contract owned by a revocable grantor trust may be transferred to a grantor, and a contract owned by one or two individual(s) may be transferred to a revocable grantor trust of which the individual(s) is (are) the grantor(s). In either situation, the Annuitant(s) must remain the same. The federal income tax treatment of such transfers is unclear. You should consult your tax advisor before making such a transfer. FEDERAL ESTATE TAXES While no attempt is being made to discuss the federal estate tax implications of the contract, you should keep in mind that the value of an annuity contract owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in the decedent's gross estate. Depending on the terms of the annuity contract, the value of the annuity included in the gross estate may be the value of the lump sum payment payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning adviser for more information. GENERATION-SKIPPING TRANSFER TAX Under certain circumstances, the Code may impose a "generation-skipping transfer tax" when all or part of an annuity contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the contract owner. Regulations issued under the Code may require us to deduct the tax from your contract, or from any applicable payment, and pay it directly to the IRS. ANNUITY PURCHASE PAYMENTS BY NONRESIDENT ALIENS AND FOREIGN CORPORATIONS The discussion above provides general information regarding U.S. federal income tax consequences to annuity purchasers that are U.S. citizens or residents. Purchasers that are not U.S. citizens or residents will generally be subject to the U.S. federal withholding tax on taxable distributions from annuity contracts at a 30% rate, unless a lower treaty rate applies. In addition, purchasers may be subject to state and/or municipal taxes and taxes that may be imposed by the purchaser's country of citizenship or residence. Prospective purchasers are advised to consult with a qualified tax adviser regarding U.S., state, and foreign taxation with respect to an annuity contract purchase. PUERTO RICO TAX CONSIDERATIONS The Puerto Rico Internal Revenue Code of 2011 (the "2011 P.R. Code") taxes distributions from non-qualified annuity contracts differently than in the U.S. Distributions that are not in the form of an annuity (including partial surrenders and period certain payments) are treated under the 2011 P.R. Code first as a return of investment. Therefore, a substantial portion of the amounts distributed generally will be excluded from gross income for Puerto Rico tax purposes until the cumulative amount paid exceeds your tax basis. The amount of income on annuity distributions (payable over your lifetime) is calculated differently under the 2011 P.R. Code. Since the U.S. source income generated by a Puerto Rico bona fide resident is subject to U.S. income tax and the Internal Revenue Service issued guidance in 2004 which indicated that the income from an annuity contract issued by a U.S. life insurer would be considered U.S. source income, the timing of recognition of income from an annuity contract could vary between the two jurisdictions. Although the 2011 P.R. Code provides a credit against the Puerto Rico income tax for U.S. income taxes paid, an individual may not get full credit because of the timing differences. You should consult with a personal tax adviser regarding the tax consequences of purchasing an annuity contract and/or any proposed distribution, particularly a partial distribution or election to annuitize. TAX BENEFITS RELATED TO THE ASSETS OF THE VARIABLE ACCOUNT We may be entitled to certain tax benefits related to the assets of the Variable Account. These tax benefits, which may include foreign tax credits and corporate dividends received deductions, are not passed back to the Variable Account or to contract Owners because we are the owner of the assets from which the tax benefits are derived. POSSIBLE TAX LAW CHANGES Although the likelihood of legislative changes is uncertain, there is always the possibility that the tax treatment of the contract could change by legislation or otherwise. We will notify you of any changes to your contract. Consult a tax adviser with respect to legislative developments and their effect on the contract. 37 We have the right to modify the contract in response to legislative changes that could otherwise diminish the favorable tax treatment that annuity contract owners currently receive. We make no guarantee regarding the tax status of the contract and do not intend the above discussion as tax advice. THE COMPANY'S TAX STATUS The Company is taxed as a life insurance company under the Code. The earnings of the Variable Account are taxed as part of our operations, and thus the Variable Account is not separately taxed as a "regulated investment company" under the Code. Under the existing federal income tax laws, investment income and capital gains of the Variable Account are not taxed to the extent they are applied under a contract. Therefore, we do not expect to incur federal income taxes on earnings of the Variable Account to the extent the earnings are credited under the contracts. Based on this, no charge is being made currently to the Variable Account for our federal income taxes. We will periodically review the need for a charge to the Variable Account for company federal income taxes. If the Company is taxed on investment income or capital gains of the Variable Account, then the company may impose a charge against the Variable Account in order to provide for such taxes. Under current laws we may incur state and local taxes (in addition to premium taxes) in several states. At present, these taxes are not significant and are not charged against the contracts or the Variable Account. If the amount of these taxes changes substantially, we may make charges for such taxes against the Variable Account. 38 11. OTHER INFORMATION METLIFE INVESTORS USA MetLife Investors USA Insurance Company (MetLife Investors USA) is a stock life insurance company founded on September 13, 1960, and organized under the laws of the State of Delaware. Its principal executive offices are located at 11225 North Community House Road, Charlotte, NC 28277. 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), the District of Columbia and Puerto Rico. Our name was changed to Security First Life Insurance Company on September 27, 1979. 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. On October 11, 2006, MetLife Investors USA became a wholly-owned subsidiary of MetLife Insurance Company of Connecticut (MetLife of Connecticut). MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of insurance and other financial services to individual and institutional customers. In 2013, MetLife, Inc. announced its plans to merge MetLife Investors USA, MetLife of Connecticut, MetLife Investors Insurance Company (MetLife Investors), and Exeter Reassurance Company, Ltd. (Exeter Reassurance), to create one larger U.S.-based and U.S.-regulated life insurance company. MetLife Investors, like MetLife Investors USA and MetLife of Connecticut, is a U.S. insurance company that issues variable insurance products in addition to other products. Exeter Reassurance is a direct subsidiary of MetLife, Inc. that mainly reinsures guarantees associated with variable annuity products issued by U.S. insurance companies that are direct or indirect subsidiaries of MetLife, Inc. MetLife of Connecticut, which is expected to be renamed and domiciled in Delaware, will be the surviving entity. These mergers are expected to occur towards the end of 2014, subject to regulatory approvals. THE VARIABLE ACCOUNT We have established a VARIABLE ACCOUNT, MetLife Investors USA Separate Account A, to hold the assets that underlie the contracts. Our Board of Directors adopted a resolution to establish the variable account under Delaware insurance law on May 29, 1980. We have registered the variable account with the Securities and Exchange Commission as a unit investment trust under the Investment Company Act of 1940. The variable account is divided into subaccounts. The assets of the variable account are held in our name on behalf of the variable account and legally belong to us. However, those assets that underlie the contracts, are not chargeable with liabilities arising out of any other business we may conduct. All the income, gains and losses (realized or unrealized) resulting from these assets are credited to or charged against the contracts and not against any other contracts we may issue. We reserve the right to transfer assets of the variable account to another account, and to modify the structure or operation of the variable account, subject to necessary regulatory approvals. If we do so, we guarantee that the modification will not affect your contract value. We are obligated to pay all money we owe under the contracts--such as death benefits and income payments--even if that amount exceeds the assets in the variable account. Any such amount that exceeds the assets in the variable account is paid from our general account. Any such amount under the GWB that exceeds the assets in the variable account are also paid from our general account. Benefit amounts paid from the general account are subject to our financial strength and claims-paying ability and our long term ability to make such payments, and are not guaranteed by any other party. We issue other annuity contracts and life insurance policies where we pay all money we owe under those contracts and policies from our general account. MetLife Investors USA is regulated as an insurance company under state law, which includes limits on the amount and type of investments in its general account. However, there is no guarantee that we will be able to meet our claims-paying obligations; there are risks to purchasing any insurance product. The investment adviser to certain of the investment options offered with variable annuity contracts issued through the variable account may be regulated as commodity pool operators. While it does not concede that the variable account is a commodity pool, MetLife Investors USA has claimed an exclusion from the definition of the term "commodity pool operator" under the Commodities Exchange Act ("CEA"), and is not subject to registration or regulation as a pool operator under the CEA. DISTRIBUTOR We have entered into a distribution agreement with our affiliate, MetLife Investors Distribution Company (Distributor), 1095 Avenue of the Americas, New York, NY 10036, for the distribution of the contracts. Distributor is a member of the Financial Industry Regulatory Authority (FINRA). FINRA provides background information about broker-dealers and their registered representatives through FINRA BrokerCheck. You may contact the FINRA BrokerCheck Hotline at 1-800-289-9999, 39 or log on to www.finra.org. An investor brochure that includes information describing FINRA BrokerCheck is available through the Hotline or on-line. Distributor and we have entered into selling agreements with a selling firm for the sale of the contracts. We pay compensation to Distributor for sales of the contracts by the selling firm. We also pay amounts to Distributor that may be used for its operating and other expenses, including the following sales expenses: compensation and bonuses for the Distributor's management team, advertising expenses, and other expenses of distributing the contracts. Distributor's management team also may be eligible for non-cash compensation items that we may provide jointly with Distributor. Non-cash items include conferences, seminars and trips (including travel, lodging and meals in connection therewith), entertainment, merchandise and other similar items. SELLING FIRMS As noted above, Distributor, and in certain cases, we, have entered into selling agreements with selling firms for the sale of our variable annuity contracts. All selling firms receive commissions, and they may also receive some form of non-cash compensation. A selling firm may also receive additional compensation (described below under "Additional Compensation"). These commissions and other incentives or payments are not charged directly to contract Owners or the Variable Account. We intend to recoup commissions and other sales expenses through fees and charges deducted under the contract or from our general account. A portion of the payments made to a selling firm may be passed on to their sales representatives in accordance with a selling firm's internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. We and Distributor have entered into selling agreements with selling firms that have an affiliate that acts as investment adviser and/or subadviser to one or more Investment Options under the contract. These investment advisory firms include Strategic Advisers, Inc., Fidelity Management & Research Company, Fidelity Investments Money Management, Inc. and Fidelity Research & Analysis Company. COMPENSATION PAID TO A SELLING FIRM. We and Distributor pay compensation to a selling firm in the form of commissions and may also provide certain types of non-cash compensation. The maximum commission payable for sales of this contract by a selling firm is 2.5% of the Purchase Payment, along with annual trail commissions up to 0.05% of Contract Value for so long as the contract remains in effect or as agreed in the selling agreement. We may also pay commissions when a contract Owner elects to begin receiving regular Annuity Payments (see "Annuity Payments--The Income Phase.") Distributor may also provide non-cash compensation items that we may provide jointly with Distributor. Non-cash items include expenses for conference or seminar trips and certain gifts. Ask your registered representative for further information about what payments your registered representative and the selling firm for which he or she works may receive in connection with your purchase of a contract. ADDITIONAL COMPENSATION. We and Distributor may pay additional compensation to a selling firm, including marketing allowances, introduction fees, persistency payments, preferred status fees and industry conference fees. Marketing allowances are periodic payments to a selling firm based on cumulative periodic (usually quarterly) sales of the contracts. Introduction fees are payments to a selling firm in connection with the addition of our products to the selling firm's line of investment products, including expenses relating to establishing the data communications systems necessary for the selling firm to offer, sell and administer our products. Persistency payments are periodic payments based on contract values of our variable insurance contracts (including Contract Values of the contracts) or other persistency standards. Preferred status fees are paid to obtain preferred treatment of the contracts in a selling firm's marketing programs, which may include marketing services, participation in marketing meetings, listings in data resources and increased access to their sales representatives. Industry conference fees are amounts paid to cover in part the costs associated with sales conferences and educational seminars for selling firms' sales representatives. See the Statement of Additional Information for more information. The amounts of additional compensation discussed above may be significant. The prospect of receiving, or the receipt of, additional compensation as described above may provide a selling firm and/or its sales representatives with an incentive to favor sales of the contracts over other annuity contracts (or other investments) with respect to which a selling firm does not receive additional compensation, or lower levels of additional compensation. You may wish to take such payment arrangements into account when considering and evaluating any recommendation relating to the contracts. For more information about any such additional compensation arrangements, ask your registered representative. 40 REQUESTS AND ELECTIONS We will treat your request for a contract transaction, or your submission of a Purchase Payment, as received by us if we receive a request conforming to our administrative procedures or a payment at our Annuity Service Center before the close of regular trading on the New York Stock Exchange on that day. We will treat your submission of a Purchase Payment as received by us if we receive a payment at our Annuity Service Center (or a designee receives a payment in accordance with the designee's administrative procedures) before the close of regular trading on the New York Stock Exchange on that day. If we receive the request, or if we (or our designee) receive the payment, after the close of trading on the New York Stock Exchange on that day, or if the New York Stock Exchange is not open that day, then the request or payment will be treated as received on the next day when the New York Stock Exchange is open. Our Annuity Service Center is located at P.O. Box 770001, Cincinnati, OH 45277-0050. If you send your Purchase Payments or transaction requests to an address other than the one we have designated for receipt of such Purchase Payments or requests, we may return the Purchase Payment to you, or there may be a delay in applying the Purchase Payment or transaction to your contract. Requests for service may be made: . Through your registered representative . By telephone at (800) 634-9361, between the hours of 8:00AM and 8:00PM Eastern Time . In writing to our Annuity Service Center A request or transaction generally is considered in GOOD ORDER if it complies with our administrative procedures and the required information is complete and accurate. A request or transaction may be rejected or delayed if not in Good Order. If you have any questions, you should contact us or your registered representative before submitting the form or request. We will use reasonable procedures such as requiring certain identifying information, tape recording the telephone instructions, and providing written confirmation of the transaction, in order to confirm that instructions communicated by telephone, fax, Internet or other means are genuine. Any telephone, fax or Internet instructions reasonably believed by us to be genuine will be your responsibility, including losses arising from any errors in the communication of instructions. As a result of this policy, you will bear the risk of loss. If we do not employ reasonable procedures to confirm that instructions communicated by telephone, fax or Internet are genuine, we may be liable for any losses due to unauthorized or fraudulent transactions. All other requests and elections under your contract must be in writing signed by the proper party, must include any necessary documentation and must be received at our Annuity Service Center to be effective. If acceptable to us, requests or elections relating to beneficiaries and ownership will take effect as of the date signed unless we have already acted in reliance on the prior status. We are not responsible for the validity of any written request or action. Telephone and computer systems may not always be available. Any telephone or computer system, whether it is yours, your service provider's, your agent's, or ours, can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may delay or prevent our processing of your request. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability under all circumstances. If you experience technical difficulties or problems, you should make your transaction request in writing to our Annuity Service Center. CONFIRMING TRANSACTIONS. We will send out confirmations that a transaction was recently completed. Unless you inform us of any errors within 10 days of receipt (or the period required by state law, if longer), we will consider these communications to be accurate and complete. OWNERSHIP OWNER. You, as the OWNER of the contract, have all the interest and rights under the contract. These rights include the right to: . change the Beneficiary. . assign the contract (subject to limitation). . change the payment option. . exercise all other rights, benefits, options and privileges allowed by the contract or us. The Owner is as designated at the time the contract is issued. The Owner may not be changed (unless removed pursuant to court order). JOINT OWNER. The contract can be owned by joint Owners, generally limited to two natural persons who must be spouses. Upon the death of either Owner, the surviving Owner will be the primary Beneficiary. Any other Beneficiary designation will be treated as a contingent Beneficiary unless otherwise indicated. 41 BENEFICIARY. The BENEFICIARY is the person(s) or entity you name to receive any death benefit. The Beneficiary is named at the time the contract is issued unless changed at a later date. Unless an irrevocable Beneficiary has been named, you can change the Beneficiary at any time before you die. If joint Owners are named, unless you tell us otherwise, the surviving joint Owner will be the primary Beneficiary. Any other Beneficiary designation will be treated as a contingent Beneficiary (unless you tell us otherwise). ANNUITANT. The ANNUITANT is the natural person(s) on whose life we base Annuity Payments. You cannot change the Annuitant after the contract has been issued (unless removed pursuant to court order). Any reference to Annuitant includes any joint Annuitant under an annuity option. The Owner(s) and the Annuitant(s) must be the same person except for qualified contracts, which can have only one Owner but may have joint Annuitants, or where the contract is owned by certain trusts, but there may be joint Annuitants. ASSIGNMENT. A qualified contract may not be assigned. A non-qualified contract may not be sold, gifted, transferred, or assigned, and any purported gift, transfer or assignment will be void, except as follows: (a) the contract may be assigned to an insurance company, regulated as such under the insurance laws of one of the United States, solely for the purpose of effecting a tax-free exchange under section 1035 of the Internal Revenue Code; (b) a contract owned by a revocable grantor trust may be transferred to the grantor or another revocable grantor trust where the grantor is the same individual; and (c) a contract owned by one individual may be transferred to a revocable grantor trust of which the individual is the grantor. LEGAL PROCEEDINGS In the ordinary course of business, MetLife USA, similar to other life insurance companies, is involved in lawsuits (including class action lawsuits), arbitrations and other legal proceedings. Also, from time to time, state and federal regulators or other officials conduct formal and informal examinations or undertake other actions dealing with various aspects of the financial services and insurance industries. In some legal proceedings involving insurers, substantial damages have been sought and/or material settlement payments have been made. It is not possible to predict with certainty the ultimate outcome of any pending legal proceeding or regulatory action. However, MetLife USA does not believe any such action or proceeding will have a material adverse effect upon the Variable Account or upon the ability of MetLife Investors Distribution Company to perform its contract with the Variable Account or of MetLife USA to meet its obligations under the contracts. FINANCIAL STATEMENTS Our financial statements and the financial statements of the Variable Account have been included in the SAI. TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Company Independent Registered Public Accounting Firm Custodian Distribution Calculation of Performance Information Annuity Provisions Tax Status of the Contracts Financial Statements 42 APPENDIX A ACCUMULATION UNIT VALUES 1.90% SEPARATE ACCOUNT PRODUCT CHARGES
Accumulation Number of Unit Value Accumulation Accumulation at Beginning Unit Value at Units Outstanding of Period End of Period at End of Period FIDELITY FIDELITY VIP FUNDS MANAGER 50% FUND INVESTOR SUB-ACCOUNT 08/22/2012 to 12/31/2012 11.231566 11.421494 16,931,005.8007 01/01/2013 to 12/31/2013 11.421494 12.876095 71,873,361.1546 FIDELITY VIP FUNDS MANAGER 60% FUND INVESTOR SUB-ACCOUNT 11/16/2009 to 12/31/2009 8.920124 8.904407 2,025,978.9900 01/01/2010 to 12/31/2010 8.904407 9.926803 59,792,277.2399 01/01/2011 to 12/31/2011 9.926803 9.543188 134,622,179.9628 01/01/2012 to 12/31/2012 9.543188 10.449018 167,454,304.0728 01/01/2013 to 12/31/2013 10.449018 12.161018 160,587,163.0855
2.05% SEPARATE ACCOUNT PRODUCT CHARGES
Accumulation Number of Unit Value Accumulation Accumulation at Beginning Unit Value at Units Outstanding of Period End of Period at End of Period FIDELITY FIDELITY VIP FUNDS MANAGER 50% FUND INVESTOR SUB-ACCOUNT 08/22/2012 to 12/31/2012 11.124856 11.306894 22,149,822.4330 01/01/2013 to 12/31/2013 11.306894 12.727803 87,080,669.0050 FIDELITY VIP FUNDS MANAGER 60% FUND INVESTOR SUB-ACCOUNT 11/16/2009 to 12/31/2009 8.890199 8.872894 2,048,394.0000 01/01/2010 to 12/31/2010 8.872894 9.876860 59,032,173.5377 01/01/2011 to 12/31/2011 9.876860 9.480974 137,842,011.2791 01/01/2012 to 12/31/2012 9.480974 10.365262 178,181,696.5319 01/01/2013 to 12/31/2013 10.365262 12.045468 172,564,523.3884
43 APPENDIX B DEATH BENEFIT EXAMPLES The investment results shown in the examples below are hypothetical and are not representative of past or future performance. Actual investment results may be more or less than those shown and will depend upon a number of factors, including the investment allocation made by a contract Owner and the investment experience of the Investment Options. The examples below do not reflect the deduction of fees and expenses, surrender charges or income taxes and tax penalties. All amounts are rounded to the nearest dollar. Example 1 Assume your contract has one Annuitant who is age 65 and you made a $100,000 Purchase Payment on the contract date. The initial Return of Purchase Payment death benefit is $100,000. You take a withdrawal in the first Contract Year equal to your GWB Amount of $5,000 ($100,000 * 5% = $5,000). The Return of Purchase Payment death benefit gets reduced to $95,000. Later in that same Contract Year, you take an additional withdrawal of $4,500 when your Contract Value is $90,000. The Return of Purchase Payment death benefit is reduced to $90,250 ($95,000 - $95,000 * ($4,500 / $90,000)). Example 2 Assume your contract has one Annuitant who is age 65 and you made a $100,000 Purchase Payment on the contract date. The initial Return of Purchase Payment death benefit is $100,000. You take a withdrawal of $6,000 when your Contract Value is $98,000. Your GWB Amount for the first Contract Year is $5,000 ($100,000 * 5% = $5,000), so $1,000 of your withdrawal is considered an excess withdrawal. The Return of Purchase Payment death benefit first reduces by the GWB Amount to $95,000 ($100,000 - $5,000). Then the Return of Purchase Payment death benefit is further reduced for the excess withdrawal to $93,978.49 ($95,000 - $95,000*($1,000 / $93,000)). Example 3 Assume your contract has one Annuitant who is age 65 and you made a $100,000 Purchase Payment on the contract date. The initial Return of Purchase Payment death benefit is $100,000. You elect to take the greater of your GWB amount or your MRD amount through the Systematic Withdrawal Program. During the first Contract Year, you take out your $5,000 GWB Amount and your Return of Purchase Payment death benefit goes to $95,000. In your second Contract Year, your MRD amount is $5,500, so you take that amount out of your contract. Since you are signed up to take your MRD through the Systematic Withdrawal Program, this withdrawal is not considered an excess withdrawal, and your Return of Purchase Payment death benefit is reduced by the amount of the withdrawal to $89,500. 44 APPENDIX C GUARANTEED WITHDRAWAL BENEFIT FOR LIFE EXAMPLES The purpose of these examples is to illustrate the operation of the GWB feature. The investment results shown are hypothetical and are not representative of past or future performance. Actual investment results may be more or less than those shown and will depend upon a number of factors, including investment allocations and the investment experience of the Investment Options. The examples do not reflect the deduction of fees and charges (other than applicable surrender charges) or income taxes and tax penalties. The GWB does not establish or guarantee a Contract Value or minimum return for any Investment Option. The GWB Value cannot be taken as a lump sum. GWB VALUE AND GWB AMOUNT Assume your contract has one Annuitant who is age 64 and you made a $25,000 Purchase Payment on the contract date. Assume you make one withdrawal in the first Contract Year equal to your eligible GWB Amount ($1,000 = 4% Withdrawal Percentage multiplied by the $25,000 GWB Value). Your GWB Value would be $25,000 for the entire first Contract Year. If your Contract Value is $30,000 at time of the first contract anniversary, your GWB Value will be increased to $30,000 and your GWB Amount for the second Contract Year would be increased to $1,200 to reflect the increased GWB Value. In the same example, if the Contract Value was $20,000 at time of the first contract anniversary, the GWB Value would be unchanged on the contract anniversary and would remain at $25,000. Similarly, the GWB Amount would also be unchanged and remain $1,000. WITHDRAWALS IN EXCESS OF ANNUAL GWB AMOUNT Assume your contract has one Annuitant who is age 64 and you made a $100,000 Purchase Payment on the contract date. If you make no withdrawals during the first Contract Year your GWB Value would be $100,000 for the whole Contract Year. Further assume that you make a $3,000 withdrawal during the first Contract Year. This withdrawal will establish the Withdrawal Percentage as 4% and the GWB Amount as $4,000. Because the withdrawal does not exceed your eligible GWB Amount, there are no surrender charges applicable to this withdrawal and there is no reduction to the GWB Value. Your Contract Value will be reduced by $3,000, the amount of the withdrawal. Further assume that later in that first Contract Year, you make a second withdrawal, this time for $10,000. At the time of this $10,000 withdrawal, the GWB Amount is $4,000 and the sum of all prior withdrawals in this Contract Year is $3,000. Therefore, $1,000 of the withdrawal is treated as a withdrawal of your GWB Amount and the remainder of the withdrawal ($9,000) is treated as an excess withdrawal. Assume your Contract Value would have been $104,000 at the end of the valuation period had you not taken the withdrawal. Your GWB Value will be reduced by 8.74%. The 8.74% reduction is determined by dividing the $9,000 excess withdrawal by $103,000 ($104,000 - $1,000 determined above) resulting in a new GWB Value of $91,260 ($100,000 GWB Value minus [100,000 multiplied by .0874]). Additionally, a $180 surrender charge is due on the $10,000 withdrawal (2% of the $9,000 excess withdrawal). Further assume that you make a third withdrawal in the first Contract Year, this time for $5,000. At the time of this $5,000 withdrawal, the GWB Amount is $4,000 and the sum of all prior withdrawals in this Contract Year is $13,000. Therefore, all $5,000 of the withdrawal is treated as an excess withdrawal. If your Contract Value would have been $90,000 at the end of the valuation period had you not taken the withdrawal, your GWB Value will reduce by 5.56% ($5,000 excess withdrawal divided by $90,000) resulting in a new GWB Value of $86,185.94 ($91,260 GWB Value minus [91,260 multiplied by .0556]). A $100 surrender charge is due on the $5,000 withdrawal (2% of the $5,000 excess withdrawal). REQUIRED MINIMUM DISTRIBUTIONS UNDER THE GWB Assume your contract date is five years in the past and your contract has one Annuitant who is age 75. Also assume that your GWB Value is $100,000, your GWB Amount is $5,000 and your minimum required distribution, as computed exclusively by us, is $5,300 for the current calendar year. Assume further that you have not yet made any withdrawals from your contract in the current Contract Year, nor have you made any withdrawals in the current calendar year. Also, assume that your next contract anniversary will occur in the following calendar year and that your GWB Value did not increase on your contract anniversary in the current calendar year. 45 Example 1 To satisfy your MRD, you request a $5,300 withdrawal outside of our Systematic Withdrawal Program. At the time of this $5,300 withdrawal, the GWB Amount is $5,000 and the sum of all prior withdrawals in this Contract Year is $0. Therefore, $5,000 of the withdrawal is treated as a withdrawal of your GWB Amount and the remainder of the withdrawal ($300) is treated as an excess withdrawal. A reduction in your GWB Value will occur because you did not participate in the Systematic Withdrawal Program to receive this withdrawal and you did not meet all of the other criteria as stated on pages 22-23 of this prospectus to receive the greater of your GWB Amount and your MRD. To demonstrate the reduction, assume your contract value would have been $103,000 at the end of the valuation period had you not taken the withdrawal. After your withdrawal is processed, your Contract Value will be $97,700 and your GWB Value will be reduced by 0.31%. The 0.31% reduction is determined by dividing the $300 excess withdrawal by $98,000 ($103,000 - $5,000 determined above) resulting in a new GWB Value of $99,690 ($100,000 GWB Value minus [100,000 multiplied by .0031]). Example 2 Alternatively, assume that at the beginning of the year, you had been signed up for a monthly systematic withdrawal of your GWB Amount. Each month we will pay an amount so that we will have paid the greater of your GWB Amount or MRD, in this case $5,300, by the end of the calendar year. Since the withdrawal to cover your MRD was taken through our SWP program, your GWB Value will still be $100,000. We have assumed that all of the conditions for receiving the greater of your GWB Amount and your MRD as shown on pages 22-23 of this prospectus have been met. Example 3 Assume instead that you sign up for a systematic withdrawal of your GWB Amount in September. In order to meet your MRD requirements, you would need to elect an annual payment frequency from the Systematic Withdrawal Program so that we are able to pay a full year's worth of payments on a systematic basis prior to the end of the calendar year. Note that any frequency of payment other than annual in this case will not allow you to meet your MRD. After the withdrawal of $5,300, your GWB Value will still be $100,000 since the withdrawal to cover your MRD was taken through our Systematic Withdrawal Program. We have assumed that all of the conditions for receiving an MRD exception as shown on pages 22-23 of the prospectus have been met. 46 STATEMENT OF ADDITIONAL INFORMATION INDIVIDUAL VARIABLE DEFERRED ANNUITY CONTRACT ISSUED BY METLIFE INVESTORS USA SEPARATE ACCOUNT A AND METLIFE INVESTORS USA INSURANCE COMPANY METLIFE GROWTH AND INCOME VARIABLE ANNUITY THIS IS NOT A PROSPECTUS. THIS STATEMENT OF ADDITIONAL INFORMATION SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS DATED NOVEMBER 14, 2014, 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: ANNUITY SERVICE CENTER, P.O. BOX 770001, CINCINNATI, OH 45277-0050, OR CALL (800) 544-2442. THIS STATEMENT OF ADDITIONAL INFORMATION IS DATED NOVEMBER 14, 2014. SAI-11-14USAMGGI TABLE OF CONTENTS
Page COMPANY............................................. 3 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM....... 3 CUSTODIAN........................................... 3 DISTRIBUTION........................................ 3 CALCULATION OF PERFORMANCE INFORMATION.............. 5 Total Return..................................... 5 Historical Unit Values........................... 6 Reporting Agencies............................... 6 ANNUITY PROVISIONS.................................. 7 Fixed Annuity.................................... 7 Mortality and Expense Guarantee.................. 7 Legal or Regulatory Restrictions on Transactions. 7 TAX STATUS OF THE CONTRACTS......................... 7 FINANCIAL STATEMENTS................................ 9
2 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 11225 North Community House Road, Charlotte, NC 28277. 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 are 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 and subsidiaries (the "Company"), included in this Statement of Additional Information, have been audited by Deloitte & Touche LLP, independent auditors, as stated in their report appearing herein (which report expresses an unmodified opinion and includes an other matter paragraph related to the Company being a member of a controlled group). Such financial statements are 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 30 Rockefeller Plaza, New York, New York 10112-0015. CUSTODIAN MetLife Investors USA Insurance Company, 11225 North Community House Road, Charlotte, NC 28277, 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 1095 Avenue of the Americas, New York, NY 10036. 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 3 Securities Exchange Act of 1934 and is a member of the Financial Industry Regulatory Authority ("FINRA"). Distributor is not a member of the Securities Investor Protection Corporation. Distributor has entered into selling agreements with other broker-dealers ("selling firms") and compensates them for their services. Distributor (including its predecessor) received sales compensation with respect to all contracts issued from the Separate Account in the following amounts during the periods indicated:
Underwriting Commissions Paid Amount of to Distributor By Underwriting Commissions Fiscal year the Company Retained by Distributor ----------- ----------------- ------------------------ 2011..... $1,101,222,893 $0 2012..... $ 689,121,186 $0 2013..... $1,101,222,893 $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 2013 ranged from $370 to $19,654,296.* The amount of commissions paid to selected selling firms during 2013 ranged from $0 to $58,087,069. The amount of total compensation (includes non-commission as well as commission amounts) paid to selected selling firms during 2013 ranged from $1,696 to $77,741,364.* * 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. The following list sets forth the names of selling firms that received additional compensation in 2013 in connection with the sale of our variable annuity contracts, variable life policies and other insurance products (including the contracts offered by the prospectus). The selling firms are listed in alphabetical order. Ameriprise Financial Services, Inc., BBVA Compass Investment Solutions, Inc., Capital Investments Group, Inc., CCO Investment Services Corp., Centaurus Financial, Inc., Ceterea Advisor Networks LLC, Cetera Financial Specialists LLC, CFD Investment, Inc., Citigroup Global Markets, Inc., Commonwealth Financial Network, CUSO Financial Services, L.P., Edward D. Jones & Co., L.P., Essex National Securities, Inc., Financial Network Investment Corporation, First Allied Securities, Inc., First Tennessee Brokerage, Inc., Founders Financial Securities, LLC, FSC Securities Corporation, H. D. Vest Investment Services, Inc., ING Financial Partners, Inc., Investacorp, Inc., Investment Centers of America, Inc., Investment Professionals, Inc., J.J.B. Hilliard, W.L. Lyons, LLC, Janney Montgomery Scott, LLC, Key Investment Services LLC, Lincoln Financial Advisors Corporation, Lincoln Financial Securities Corporation, Lincoln Investment Planning, Inc., LPL Financial LLC, M&T Securities, Inc., Merrill Lynch, Inc., Morgan Stanley Smith Barney, LLC, Multi Financial Securities Corporation, National Planning Corporation, NEXT Financial Group, NFP Securities, Inc., PFS Investments Inc., Pioneer Funds Distributor, Inc., PNC Investments LLC, Primevest Financial Services, Inc., ProEquities, Inc., Raymond James & Associates, Inc., Raymond James Financial Services, Inc., RBC Wealth Management, Royal Alliance Associates, Inc., SII Investments, Inc., Sammons Securities Company, LLC, 4 Santander Securities, LLC., Securities America, Inc., Sigma Financial Corporation, Signator Investors, Inc., Stifel, Nicolaus & Company, Incorporated, Transamerica Financial Advisors, Inc., Triad Advisors, Inc., UBS Financial Services, Inc., U.S. Bancorp Investments, Inc., United Planners' Financial Services of America, ValMark Securities, Inc., Wall Street Financial Group, Inc., Wells Fargo Advisors Financial Network, LLC, Wells Fargo Advisors, 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, the expenses for the underlying investment portfolio being advertised and any applicable account fee, withdrawal charge, and/or LWG rider charge. For purposes of calculating performance information, the LWG 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. 5 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 a withdrawal charge, or LWG rider charge. Premium taxes are not reflected. The deduction of such charges would reduce any percentage increase or make greater any percentage decrease. Owners should note that the investment results of each investment portfolio will fluctuate over time, and any presentation of the investment portfolio's total return for any period should not be considered as a representation of what an investment may earn or what the total return may be in any future period. HISTORICAL UNIT VALUES The Company may also show historical accumulation unit values in certain advertisements containing illustrations. These illustrations will be based on actual accumulation unit values. In addition, the Company may distribute sales literature which compares the percentage change in accumulation unit values for any of the investment portfolios against established market indices such as the Standard & Poor's 500 Composite Stock Price Index, the Dow Jones Industrial Average or other management investment companies which have investment objectives similar to the investment portfolio being compared. The Standard & Poor's 500 Composite Stock Price Index is an unmanaged, unweighted average of 500 stocks, the majority of which are listed on the New York Stock Exchange. The Dow Jones Industrial Average is an unmanaged, weighted average of thirty blue chip industrial corporations listed on the New York Stock Exchange. Both the Standard & Poor's 500 Composite Stock Price Index and the Dow Jones Industrial Average assume quarterly reinvestment of dividends. REPORTING AGENCIES The Company may also distribute sales literature which compares the performance of the accumulation unit values of the Contracts with the unit values of variable annuities issued by other insurance companies. Such information will be derived from the Lipper Variable Insurance Products Performance Analysis Service, the VARDS Report or from Morningstar. 6 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 FIXED ANNUITY A fixed annuity is a series of payments made during the annuity phase which are guaranteed as to dollar amount by the Company and do not vary with the investment experience of the Separate Account. The Adjusted Contract Value on the day immediately preceding the annuity date will be used to determine the fixed annuity monthly payment. The monthly annuity payment will be based upon the annuity option elected, 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 7 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. 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). 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. The regulations also require that beginning for the 2006 distribution year, 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. The new rules are not entirely clear and you should consult your own tax advisors as to how these rules affect your own contract. We will provide you with additional information regarding the amount that is subject to minimum distribution under this new rule. If you intend to receive your minimum distributions which are payable over the joint lives of you and a beneficiary who is not your spouse (or over a period not exceeding the joint life expectancy of you and your non-spousal beneficiary), be advised that Federal tax rules may require that payments be made over a shorter period or may require that payments to the beneficiary be reduced after your death to meet the minimum distribution incidental benefit rules and avoid the 50% excise tax. Consult your tax advisor. 8 MINIMUM DISTRIBUTIONS FOR BENEFICIARIES UPON THE CONTRACT OWNER'S DEATH. Upon the death of the contract owner and/or annuitant of a Qualified Contract, the funds remaining in the contract must be completely withdrawn within 5 years from the date of death (including in a single lump sum) or minimum distributions may be taken over the life expectancy of the individual beneficiaries (and in certain situations, trusts for individuals), provided such distributions are payable at least annually and begin within one year from the date of death. Special rules apply in the case of an IRA where the beneficiary is the surviving spouse which allow the spouse to assume the contract as owner. Alternative rules permit a spousal beneficiary under a qualified contract, including an IRA, to defer the minimum distribution requirements until the end of the year in which the deceased spouse would have attained age 70 1/2 or to rollover the death proceeds to his or her own IRA or to another eligible retirement plan in which he or she participates. Under recently enacted legislation, you (and after your death, your designated beneficiaries) generally did not have to take the required minimum distribution for 2009. For required minimum distributions following the death of the owner or annuitant of a Qualified Contract, the five year rule is applied without regard to calendar year 2009. For instance, if you died in 2009, the five year period ends in 2015 instead of 2014. The required minimum distribution rules are complex, so consult with your tax adviser before waiving your 2009 required minimum distribution payment. 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 filed 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, 2013, 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, 2013, 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, 2013, 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 27, 2014 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, 2013
AMERICAN FUNDS ALGER AMERICAN FUNDS AMERICAN FUNDS GLOBAL SMALL SMALL CAP GROWTH BOND GLOBAL GROWTH CAPITALIZATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ------------------- ------------------- ASSETS: Investments at fair value.............. $ 63,772,200 $ 146,158,384 $ 314,826,299 $ 124,184,057 Due from MetLife Investors USA Insurance Company................ -- -- -- -- ------------------- -------------------- ------------------- ------------------- Total Assets...................... 63,772,200 146,158,384 314,826,299 124,184,057 ------------------- -------------------- ------------------- ------------------- LIABILITIES: Accrued fees........................... -- 32 93 52 Due to MetLife Investors USA Insurance Company................ 1 1 3 2 ------------------- -------------------- ------------------- ------------------- Total Liabilities................. 1 33 96 54 ------------------- -------------------- ------------------- ------------------- NET ASSETS................................ $ 63,772,199 $ 146,158,351 $ 314,826,203 $ 124,184,003 =================== ==================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units..... $ 63,772,199 $ 146,137,922 $ 314,815,262 $ 124,172,760 Net assets from contracts in payout.... -- 20,429 10,941 11,243 ------------------- -------------------- ------------------- ------------------- Total Net Assets.................. $ 63,772,199 $ 146,158,351 $ 314,826,203 $ 124,184,003 =================== ==================== =================== ===================
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, 2013
AMERICAN FUNDS AMERICAN FUNDS DWS I FEDERATED HIGH GROWTH GROWTH-INCOME INTERNATIONAL INCOME BOND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 856,560,270 $ 388,320,093 $ 18,592,801 $ 26,171 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- ------------------- -------------------- ------------------- ------------------- Total Assets.................... 856,560,270 388,320,093 18,592,801 26,171 ------------------- -------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 64 100 7 5 Due to MetLife Investors USA Insurance Company.............. 2 3 -- -- ------------------- -------------------- ------------------- ------------------- Total Liabilities............... 66 103 7 5 ------------------- -------------------- ------------------- ------------------- NET ASSETS.............................. $ 856,560,204 $ 388,319,990 $ 18,592,794 $ 26,166 =================== ==================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 856,524,635 $ 388,260,143 $ 18,592,794 $ 26,166 Net assets from contracts in payout.. 35,569 59,847 -- -- ------------------- -------------------- ------------------- ------------------- Total Net Assets................ $ 856,560,204 $ 388,319,990 $ 18,592,794 $ 26,166 =================== ==================== =================== =================== FEDERATED FIDELITY VIP FIDELITY VIP FIDELITY VIP KAUFMAN ASSET MANAGER CONTRAFUND EQUITY-INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 44,909 $ 88,274,484 $ 611,972,984 $ 5,954,600 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- ------------------- -------------------- ------------------- ------------------- Total Assets.................... 44,909 88,274,484 611,972,984 5,954,600 ------------------- -------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 2 1 45 -- Due to MetLife Investors USA Insurance Company.............. -- -- 13 -- ------------------- -------------------- ------------------- ------------------- Total Liabilities............... 2 1 58 -- ------------------- -------------------- ------------------- ------------------- NET ASSETS.............................. $ 44,907 $ 88,274,483 $ 611,972,926 $ 5,954,600 =================== ==================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 44,907 $ 88,274,483 $ 611,972,926 $ 5,954,600 Net assets from contracts in payout.. -- -- -- -- ------------------- -------------------- ------------------- ------------------- Total Net Assets................ $ 44,907 $ 88,274,483 $ 611,972,926 $ 5,954,600 =================== ==================== =================== =================== FIDELITY VIP FIDELITY VIP FUNDSMANAGER 50% FUNDSMANAGER 60% SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------- ASSETS: Investments at fair value............ $ 2,033,793,788 $ 4,031,523,824 Due from MetLife Investors USA Insurance Company.............. -- -- -------------------- ------------------- Total Assets.................... 2,033,793,788 4,031,523,824 -------------------- ------------------- LIABILITIES: Accrued fees......................... -- -- Due to MetLife Investors USA Insurance Company.............. -- -- -------------------- ------------------- Total Liabilities............... -- -- -------------------- ------------------- NET ASSETS.............................. $ 2,033,793,788 $ 4,031,523,824 ==================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 2,033,793,788 $ 4,031,523,824 Net assets from contracts in payout.. -- -- -------------------- ------------------- Total Net Assets................ $ 2,033,793,788 $ 4,031,523,824 ==================== ===================
The accompanying notes are an integral part of these financial statements. 2 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, 2013
FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP GROWTH INDEX 500 MID CAP MONEY MARKET SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value............ $ 165,968,439 $ 69,677,261 $ 446,581,951 $ 76,155,366 Due from MetLife Investors USA Insurance Company.............. -- -- 1 -- -------------------- -------------------- -------------------- -------------------- Total Assets.................... 165,968,439 69,677,261 446,581,952 76,155,366 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Accrued fees......................... -- 14 10 20 Due to MetLife Investors USA Insurance Company.............. -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Liabilities............... -- 14 10 20 -------------------- -------------------- -------------------- -------------------- NET ASSETS.............................. $ 165,968,439 $ 69,677,247 $ 446,581,942 $ 76,155,346 ==================== ==================== ==================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 165,968,439 $ 69,677,247 $ 446,565,326 $ 76,155,346 Net assets from contracts in payout.. -- -- 16,616 -- -------------------- -------------------- -------------------- -------------------- Total Net Assets................ $ 165,968,439 $ 69,677,247 $ 446,581,942 $ 76,155,346 ==================== ==================== ==================== ==================== FTVIPT FRANKLIN FIDELITY VIP FTVIPT FRANKLIN SMALL CAP VALUE FTVIPT MUTUAL OVERSEAS INCOME SECURITIES SECURITIES SHARES SECURITIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value............ $ 5,925,521 $ 297,821,546 $ 128,048,986 $ 156,078,613 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.................... 5,925,521 297,821,546 128,048,986 156,078,613 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Accrued fees......................... -- 75 2 41 Due to MetLife Investors USA Insurance Company.............. -- 1 1 1 -------------------- -------------------- -------------------- -------------------- Total Liabilities............... -- 76 3 42 -------------------- -------------------- -------------------- -------------------- NET ASSETS.............................. $ 5,925,521 $ 297,821,470 $ 128,048,983 $ 156,078,571 ==================== ==================== ==================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 5,925,521 $ 297,781,830 $ 128,048,983 $ 156,068,938 Net assets from contracts in payout.. -- 39,640 -- 9,633 -------------------- -------------------- -------------------- -------------------- Total Net Assets................ $ 5,925,521 $ 297,821,470 $ 128,048,983 $ 156,078,571 ==================== ==================== ==================== ==================== FTVIPT TEMPLETON FTVIPT TEMPLETON GLOBAL BOND FOREIGN SECURITIES SECURITIES SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- ASSETS: Investments at fair value............ $ 87,721,359 $ 254,683,432 Due from MetLife Investors USA Insurance Company.............. -- -- -------------------- -------------------- Total Assets.................... 87,721,359 254,683,432 -------------------- -------------------- LIABILITIES: Accrued fees......................... 64 18 Due to MetLife Investors USA Insurance Company.............. 2 -- -------------------- -------------------- Total Liabilities............... 66 18 -------------------- -------------------- NET ASSETS.............................. $ 87,721,293 $ 254,683,414 ==================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 87,721,293 $ 254,675,740 Net assets from contracts in payout.. -- 7,674 -------------------- -------------------- Total Net Assets................ $ 87,721,293 $ 254,683,414 ==================== ====================
The accompanying notes are an integral part of these financial statements. 4 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, 2013
INVESCO V.I. INVESCO V.I. INVESCO V.I. INVESCO V.I. AMERICAN FRANCHISE AMERICAN VALUE CORE EQUITY EQUITY AND INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- --------------------- -------------------- ASSETS: Investments at fair value............ $ 163,724 $ 95,295,951 $ 249,706 $ 649,322,735 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- -------------------- -------------------- --------------------- -------------------- Total Assets.................... 163,724 95,295,951 249,706 649,322,735 -------------------- -------------------- --------------------- -------------------- LIABILITIES: Accrued fees......................... 6 21 10 37 Due to MetLife Investors USA Insurance Company.............. 5 1 -- -- -------------------- -------------------- --------------------- -------------------- Total Liabilities............... 11 22 10 37 -------------------- -------------------- --------------------- -------------------- NET ASSETS.............................. $ 163,713 $ 95,295,929 $ 249,696 $ 649,322,698 ==================== ==================== ===================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 163,713 $ 95,295,929 $ 249,696 $ 649,301,613 Net assets from contracts in payout.. -- -- -- 21,085 -------------------- -------------------- --------------------- -------------------- Total Net Assets................ $ 163,713 $ 95,295,929 $ 249,696 $ 649,322,698 ==================== ==================== ===================== ==================== INVESCO V.I. INVESCO V.I. INVESCO V.I. JANUS ASPEN GLOBAL REAL ESTATE GROWTH AND INCOME INTERNATIONAL GROWTH GLOBAL RESEARCH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------- -------------------- -------------------- --------------------- ASSETS: Investments at fair value............ $ 29,993,352 $ 365,970,652 $ 281,999,222 $ 6,751 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- --------------------- -------------------- -------------------- --------------------- Total Assets.................... 29,993,352 365,970,652 281,999,222 6,751 --------------------- -------------------- -------------------- --------------------- LIABILITIES: Accrued fees......................... 28 37 14 3 Due to MetLife Investors USA Insurance Company.............. 1 2 2 -- --------------------- -------------------- -------------------- --------------------- Total Liabilities............... 29 39 16 3 --------------------- -------------------- -------------------- --------------------- NET ASSETS.............................. $ 29,993,323 $ 365,970,613 $ 281,999,206 $ 6,748 ===================== ==================== ==================== ===================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 29,993,323 $ 365,960,564 $ 281,990,432 $ 6,748 Net assets from contracts in payout.. -- 10,049 8,774 -- --------------------- -------------------- -------------------- --------------------- Total Net Assets................ $ 29,993,323 $ 365,970,613 $ 281,999,206 $ 6,748 ===================== ==================== ==================== ===================== LMPVET LMPVET CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE AGGRESSIVE GROWTH ALL CAP VALUE SUB-ACCOUNT SUB-ACCOUNT --------------------- -------------------- ASSETS: Investments at fair value............ $ 280,745,363 $ 129,253,621 Due from MetLife Investors USA Insurance Company.............. -- -- --------------------- -------------------- Total Assets.................... 280,745,363 129,253,621 --------------------- -------------------- LIABILITIES: Accrued fees......................... 160 56 Due to MetLife Investors USA Insurance Company.............. 3 2 --------------------- -------------------- Total Liabilities............... 163 58 --------------------- -------------------- NET ASSETS.............................. $ 280,745,200 $ 129,253,563 ===================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 280,734,965 $ 129,253,563 Net assets from contracts in payout.. 10,235 -- --------------------- -------------------- Total Net Assets................ $ 280,745,200 $ 129,253,563 ===================== ====================
The accompanying notes are an integral part of these financial statements. 6 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, 2013
LMPVET LMPVET LMPVET LMPVET CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE APPRECIATION EQUITY INCOME LARGE CAP GROWTH LARGE CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value............ $ 405,286,269 $ 191,169,763 $ 5,012,459 $ 6,893,046 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- -------------------- -------------------- -------------------- -------------------- Total Assets.................... 405,286,269 191,169,763 5,012,459 6,893,046 -------------------- -------------------- -------------------- -------------------- LIABILITIES: Accrued fees......................... 46 108 68 91 Due to MetLife Investors USA Insurance Company.............. 2 2 1 1 -------------------- -------------------- -------------------- -------------------- Total Liabilities............... 48 110 69 92 -------------------- -------------------- -------------------- -------------------- NET ASSETS.............................. $ 405,286,221 $ 191,169,653 $ 5,012,390 $ 6,892,954 ==================== ==================== ==================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 405,286,221 $ 191,162,626 $ 5,012,390 $ 6,892,954 Net assets from contracts in payout.. -- 7,027 -- -- -------------------- -------------------- -------------------- -------------------- Total Net Assets................ $ 405,286,221 $ 191,169,653 $ 5,012,390 $ 6,892,954 ==================== ==================== ==================== ==================== LMPVET LMPVET INVESTMENT LMPVET LMPVET CLEARBRIDGE VARIABLE COUNSEL VARIABLE VARIABLE LIFESTYLE VARIABLE LIFESTYLE SMALL CAP GROWTH SOCIAL AWARENESS ALLOCATION 50% ALLOCATION 70% SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- -------------------- ------------------- ASSETS: Investments at fair value............ $ 112,499,086 $ 292,324 $ 44,101,424 $ 2,305,026 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- -------------------- -------------------- -------------------- ------------------- Total Assets.................... 112,499,086 292,324 44,101,424 2,305,026 -------------------- -------------------- -------------------- ------------------- LIABILITIES: Accrued fees......................... 65 38 23 27 Due to MetLife Investors USA Insurance Company.............. 1 -- -- -- -------------------- -------------------- -------------------- ------------------- Total Liabilities............... 66 38 23 27 -------------------- -------------------- -------------------- ------------------- NET ASSETS.............................. $ 112,499,020 $ 292,286 $ 44,101,401 $ 2,304,999 ==================== ==================== ==================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 112,499,020 $ 292,286 $ 44,101,401 $ 2,304,999 Net assets from contracts in payout.. -- -- -- -- -------------------- -------------------- -------------------- ------------------- Total Net Assets................ $ 112,499,020 $ 292,286 $ 44,101,401 $ 2,304,999 ==================== ==================== ==================== =================== LMPVET LMPVIT WESTERN VARIABLE LIFESTYLE ASSET VARIABLE GLOBAL ALLOCATION 85% HIGH YIELD BOND SUB-ACCOUNT SUB-ACCOUNT -------------------- --------------------- ASSETS: Investments at fair value............ $ 95,074,305 $ 104,740,529 Due from MetLife Investors USA Insurance Company.............. -- -- -------------------- --------------------- Total Assets.................... 95,074,305 104,740,529 -------------------- --------------------- LIABILITIES: Accrued fees......................... 21 77 Due to MetLife Investors USA Insurance Company.............. -- 1 -------------------- --------------------- Total Liabilities............... 21 78 -------------------- --------------------- NET ASSETS.............................. $ 95,074,284 $ 104,740,451 ==================== ===================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 95,074,284 $ 104,737,455 Net assets from contracts in payout.. -- 2,996 -------------------- --------------------- Total Net Assets................ $ 95,074,284 $ 104,740,451 ==================== =====================
The accompanying notes are an integral part of these financial statements. 8 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, 2013
MIST ALLIANCEBERNSTEIN MFS VIT MFS VIT GLOBAL DYNAMIC INVESTORS TRUST NEW DISCOVERY MFS VIT RESEARCH ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ------------------- -------------------- ASSETS: Investments at fair value............ $ 25,959 $ 46,022 $ 63,838 $ 3,313,674,263 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- ------------------- -------------------- ------------------- -------------------- Total Assets.................... 25,959 46,022 63,838 3,313,674,263 ------------------- -------------------- ------------------- -------------------- LIABILITIES: Accrued fees......................... 8 2 2 69 Due to MetLife Investors USA Insurance Company.............. -- -- 1 2 ------------------- -------------------- ------------------- -------------------- Total Liabilities............... 8 2 3 71 ------------------- -------------------- ------------------- -------------------- NET ASSETS.............................. $ 25,951 $ 46,020 $ 63,835 $ 3,313,674,192 =================== ==================== =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 25,951 $ 46,020 $ 63,835 $ 3,313,622,486 Net assets from contracts in payout.. -- -- -- 51,706 ------------------- -------------------- ------------------- -------------------- Total Net Assets................ $ 25,951 $ 46,020 $ 63,835 $ 3,313,674,192 =================== ==================== =================== ==================== MIST AMERICAN MIST AMERICAN MIST AMERICAN FUNDS BALANCED FUNDS GROWTH MIST AMERICAN FUNDS MODERATE ALLOCATION ALLOCATION FUNDS GROWTH ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------- ------------------- -------------------- ASSETS: Investments at fair value............ $ 3,430,387,069 $ 1,828,322,442 $ 632,386,712 $ 1,796,367,030 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- -------------------- ------------------- ------------------- -------------------- Total Assets.................... 3,430,387,069 1,828,322,442 632,386,712 1,796,367,030 -------------------- ------------------- ------------------- -------------------- LIABILITIES: Accrued fees......................... 30 66 66 52 Due to MetLife Investors USA Insurance Company.............. 1 1 10 1 -------------------- ------------------- ------------------- -------------------- Total Liabilities............... 31 67 76 53 -------------------- ------------------- ------------------- -------------------- NET ASSETS.............................. $ 3,430,387,038 $ 1,828,322,375 $ 632,386,636 $ 1,796,366,977 ==================== =================== =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 3,430,376,518 $ 1,827,667,872 $ 632,301,718 $ 1,796,362,961 Net assets from contracts in payout.. 10,520 654,503 84,918 4,016 -------------------- ------------------- ------------------- -------------------- Total Net Assets................ $ 3,430,387,038 $ 1,828,322,375 $ 632,386,636 $ 1,796,366,977 ==================== =================== =================== ==================== MIST AQR MIST BLACKROCK GLOBAL RISK GLOBAL TACTICAL BALANCED STRATEGIES SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ASSETS: Investments at fair value............ $ 3,248,476,045 $ 5,457,878,842 Due from MetLife Investors USA Insurance Company.............. -- -- ------------------- -------------------- Total Assets.................... 3,248,476,045 5,457,878,842 ------------------- -------------------- LIABILITIES: Accrued fees......................... 68 78 Due to MetLife Investors USA Insurance Company.............. -- 3 ------------------- -------------------- Total Liabilities............... 68 81 ------------------- -------------------- NET ASSETS.............................. $ 3,248,475,977 $ 5,457,878,761 =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 3,248,431,414 $ 5,457,828,462 Net assets from contracts in payout.. 44,563 50,299 ------------------- -------------------- Total Net Assets................ $ 3,248,475,977 $ 5,457,878,761 =================== ====================
The accompanying notes are an integral part of these financial statements. 10 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, 2013
MIST BLACKROCK MIST BLACKROCK MIST CLARION MIST CLEARBRIDGE HIGH YIELD LARGE CAP CORE GLOBAL REAL ESTATE AGGRESSIVE GROWTH II SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ------------------- -------------------- ASSETS: Investments at fair value............ $ 265,149,930 $ 16,869,754 $ 182,674,017 $ 119,069,072 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- ------------------- -------------------- ------------------- -------------------- Total Assets..................... 265,149,930 16,869,754 182,674,017 119,069,072 ------------------- -------------------- ------------------- -------------------- LIABILITIES: Accrued fees......................... 122 102 93 110 Due to MetLife Investors USA Insurance Company.............. 2 2 2 2 ------------------- -------------------- ------------------- -------------------- Total Liabilities................ 124 104 95 112 ------------------- -------------------- ------------------- -------------------- NET ASSETS.............................. $ 265,149,806 $ 16,869,650 $ 182,673,922 $ 119,068,960 =================== ==================== =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 265,145,347 $ 16,869,650 $ 182,649,463 $ 119,068,960 Net assets from contracts in payout.. 4,459 -- 24,459 -- ------------------- -------------------- ------------------- -------------------- Total Net Assets................. $ 265,149,806 $ 16,869,650 $ 182,673,922 $ 119,068,960 =================== ==================== =================== ==================== MIST MIST INVESCO MIST CLEARBRIDGE MIST GOLDMAN SACHS HARRIS OAKMARK BALANCED-RISK AGGRESSIVE GROWTH MID CAP VALUE INTERNATIONAL ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ------------------- -------------------- ASSETS: Investments at fair value............ $ 451,710,663 $ 170,038,476 $ 693,983,315 $ 843,160,756 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- ------------------- -------------------- ------------------- -------------------- Total Assets..................... 451,710,663 170,038,476 693,983,315 843,160,756 ------------------- -------------------- ------------------- -------------------- LIABILITIES: Accrued fees......................... 96 89 69 58 Due to MetLife Investors USA Insurance Company.............. 2 1 2 1 ------------------- -------------------- ------------------- -------------------- Total Liabilities................ 98 90 71 59 ------------------- -------------------- ------------------- -------------------- NET ASSETS.............................. $ 451,710,565 $ 170,038,386 $ 693,983,244 $ 843,160,697 =================== ==================== =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 451,670,790 $ 170,001,706 $ 693,796,289 $ 843,160,697 Net assets from contracts in payout.. 39,775 36,680 186,955 -- ------------------- -------------------- ------------------- -------------------- Total Net Assets................. $ 451,710,565 $ 170,038,386 $ 693,983,244 $ 843,160,697 =================== ==================== =================== ==================== MIST INVESCO MIST INVESCO COMSTOCK MID CAP VALUE SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ASSETS: Investments at fair value............ $ 443,562,037 $ 158,040,507 Due from MetLife Investors USA Insurance Company.............. -- -- ------------------- -------------------- Total Assets..................... 443,562,037 158,040,507 ------------------- -------------------- LIABILITIES: Accrued fees......................... 112 131 Due to MetLife Investors USA Insurance Company.............. 2 1 ------------------- -------------------- Total Liabilities................ 114 132 ------------------- -------------------- NET ASSETS.............................. $ 443,561,923 $ 158,040,375 =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 443,532,010 $ 158,034,445 Net assets from contracts in payout.. 29,913 5,930 ------------------- -------------------- Total Net Assets................. $ 443,561,923 $ 158,040,375 =================== ====================
The accompanying notes are an integral part of these financial statements. 12 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, 2013
MIST JPMORGAN MIST INVESCO MIST JPMORGAN GLOBAL ACTIVE MIST JPMORGAN SMALL CAP GROWTH CORE BOND ALLOCATION SMALL CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------- -------------------- ------------------- ASSETS: Investments at fair value............ $ 319,189,506 $ 311,869,966 $ 746,849,807 $ 27,866,760 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- -------------------- ------------------- -------------------- ------------------- Total Assets..................... 319,189,506 311,869,966 746,849,807 27,866,760 -------------------- ------------------- -------------------- ------------------- LIABILITIES: Accrued fees......................... 159 33 89 194 Due to MetLife Investors USA Insurance Company.............. 2 1 1 -- -------------------- ------------------- -------------------- ------------------- Total Liabilities................ 161 34 90 194 -------------------- ------------------- -------------------- ------------------- NET ASSETS.............................. $ 319,189,345 $ 311,869,932 $ 746,849,717 $ 27,866,566 ==================== =================== ==================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 319,132,725 $ 311,869,932 $ 746,849,717 $ 27,866,566 Net assets from contracts in payout.. 56,620 -- -- -- -------------------- ------------------- -------------------- ------------------- Total Net Assets................. $ 319,189,345 $ 311,869,932 $ 746,849,717 $ 27,866,566 ==================== =================== ==================== =================== MIST MIST MET/FRANKLIN MIST LOOMIS SAYLES MIST LORD ABBETT MET/EATON VANCE LOW DURATION GLOBAL MARKETS BOND DEBENTURE FLOATING RATE TOTAL RETURN SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ------------------- -------------------- ASSETS: Investments at fair value............ $ 180,595,879 $ 259,294,611 $ 83,115,922 $ 140,307,239 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- ------------------- -------------------- ------------------- -------------------- Total Assets..................... 180,595,879 259,294,611 83,115,922 140,307,239 ------------------- -------------------- ------------------- -------------------- LIABILITIES: Accrued fees......................... 96 121 84 92 Due to MetLife Investors USA Insurance Company.............. 2 3 1 1 ------------------- -------------------- ------------------- -------------------- Total Liabilities................ 98 124 85 93 ------------------- -------------------- ------------------- -------------------- NET ASSETS.............................. $ 180,595,781 $ 259,294,487 $ 83,115,837 $ 140,307,146 =================== ==================== =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 180,595,781 $ 259,067,107 $ 83,115,837 $ 140,307,146 Net assets from contracts in payout.. -- 227,380 -- -- ------------------- -------------------- ------------------- -------------------- Total Net Assets................. $ 180,595,781 $ 259,294,487 $ 83,115,837 $ 140,307,146 =================== ==================== =================== ==================== MIST MET/TEMPLETON MIST METLIFE INTERNATIONAL BOND AGGRESSIVE STRATEGY SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- ASSETS: Investments at fair value............ $ 52,286,206 $ 659,971,556 Due from MetLife Investors USA Insurance Company.............. -- -- -------------------- -------------------- Total Assets..................... 52,286,206 659,971,556 -------------------- -------------------- LIABILITIES: Accrued fees......................... 66 51 Due to MetLife Investors USA Insurance Company.............. 1 1 -------------------- -------------------- Total Liabilities................ 67 52 -------------------- -------------------- NET ASSETS.............................. $ 52,286,139 $ 659,971,504 ==================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 52,286,139 $ 659,913,190 Net assets from contracts in payout.. -- 58,314 -------------------- -------------------- Total Net Assets................. $ 52,286,139 $ 659,971,504 ==================== ====================
The accompanying notes are an integral part of these financial statements. 14 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, 2013
MIST METLIFE MIST METLIFE MIST METLIFE MIST METLIFE BALANCED PLUS BALANCED STRATEGY DEFENSIVE STRATEGY GROWTH STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------- -------------------- ------------------- ASSETS: Investments at fair value............ $ 6,454,727,036 $ 7,812,083,227 $ 1,972,799,230 $ 6,767,059,571 Due from MetLife Investors USA Insurance Company.............. -- -- -- 13 -------------------- ------------------- -------------------- ------------------- Total Assets..................... 6,454,727,036 7,812,083,227 1,972,799,230 6,767,059,584 -------------------- ------------------- -------------------- ------------------- LIABILITIES: Accrued fees......................... 58 49 92 66 Due to MetLife Investors USA Insurance Company.............. 2 1 2 -- -------------------- ------------------- -------------------- ------------------- Total Liabilities................ 60 50 94 66 -------------------- ------------------- -------------------- ------------------- NET ASSETS.............................. $ 6,454,726,976 $ 7,812,083,177 $ 1,972,799,136 $ 6,767,059,518 ==================== =================== ==================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 6,454,591,334 $ 7,810,608,978 $ 1,972,521,631 $ 6,766,750,756 Net assets from contracts in payout.. 135,642 1,474,199 277,505 308,762 -------------------- ------------------- -------------------- ------------------- Total Net Assets................. $ 6,454,726,976 $ 7,812,083,177 $ 1,972,799,136 $ 6,767,059,518 ==================== =================== ==================== =================== MIST MIST METLIFE MIST METLIFE MULTI- MIST MFS EMERGING MFS RESEARCH MODERATE STRATEGY INDEX TARGETED RISK MARKETS EQUITY INTERNATIONAL SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- -------------------- ------------------- ASSETS: Investments at fair value............ $ 3,631,779,081 $ 209,957,104 $ 456,076,979 $ 331,488,553 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- ------------------- -------------------- -------------------- ------------------- Total Assets..................... 3,631,779,081 209,957,104 456,076,979 331,488,553 ------------------- -------------------- -------------------- ------------------- LIABILITIES: Accrued fees......................... 72 51 85 89 Due to MetLife Investors USA Insurance Company.............. 1 1 2 3 ------------------- -------------------- -------------------- ------------------- Total Liabilities................ 73 52 87 92 ------------------- -------------------- -------------------- ------------------- NET ASSETS.............................. $ 3,631,779,008 $ 209,957,052 $ 456,076,892 $ 331,488,461 =================== ==================== ==================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 3,631,343,957 $ 209,957,052 $ 456,043,852 $ 331,401,169 Net assets from contracts in payout.. 435,051 -- 33,040 87,292 ------------------- -------------------- -------------------- ------------------- Total Net Assets................. $ 3,631,779,008 $ 209,957,052 $ 456,076,892 $ 331,488,461 =================== ==================== ==================== =================== MIST MORGAN STANLEY MIST OPPENHEIMER MID CAP GROWTH GLOBAL EQUITY SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ASSETS: Investments at fair value............ $ 244,579,293 $ 78,398,683 Due from MetLife Investors USA Insurance Company.............. -- 2 ------------------- ------------------- Total Assets..................... 244,579,293 78,398,685 ------------------- ------------------- LIABILITIES: Accrued fees......................... 57 112 Due to MetLife Investors USA Insurance Company.............. 2 -- ------------------- ------------------- Total Liabilities................ 59 112 ------------------- ------------------- NET ASSETS.............................. $ 244,579,234 $ 78,398,573 =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 244,579,234 $ 78,398,573 Net assets from contracts in payout.. -- -- ------------------- ------------------- Total Net Assets................. $ 244,579,234 $ 78,398,573 =================== ===================
The accompanying notes are an integral part of these financial statements. 16 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, 2013
MIST PIMCO INFLATION MIST MIST MIST PIONEER PROTECTED BOND PIMCO TOTAL RETURN PIONEER FUND STRATEGIC INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 821,456,212 $ 1,993,787,047 $ 297,755,838 $ 919,329,053 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- ------------------- ------------------- ------------------- ------------------- Total Assets..................... 821,456,212 1,993,787,047 297,755,838 919,329,053 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 121 97 160 185 Due to MetLife Investors USA Insurance Company.............. 2 2 8 11 ------------------- ------------------- ------------------- ------------------- Total Liabilities................ 123 99 168 196 ------------------- ------------------- ------------------- ------------------- NET ASSETS.............................. $ 821,456,089 $ 1,993,786,948 $ 297,755,670 $ 919,328,857 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 821,327,058 $ 1,993,490,223 $ 297,747,696 $ 919,316,926 Net assets from contracts in payout.. 129,031 296,725 7,974 11,931 ------------------- ------------------- ------------------- ------------------- Total Net Assets................. $ 821,456,089 $ 1,993,786,948 $ 297,755,670 $ 919,328,857 =================== =================== =================== =================== MIST PYRAMIS MIST PYRAMIS MIST SCHRODERS MIST SSGA GROWTH GOVERNMENT INCOME MANAGED RISK GLOBAL MULTI-ASSET AND INCOME ETF SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 715,739,667 $ 78,417,297 $ 435,205,791 $ 1,578,178,756 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- ------------------- ------------------- ------------------- ------------------- Total Assets..................... 715,739,667 78,417,297 435,205,791 1,578,178,756 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 109 67 101 77 Due to MetLife Investors USA Insurance Company.............. 1 1 1 2 ------------------- ------------------- ------------------- ------------------- Total Liabilities................ 110 68 102 79 ------------------- ------------------- ------------------- ------------------- NET ASSETS.............................. $ 715,739,557 $ 78,417,229 $ 435,205,689 $ 1,578,178,677 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 715,457,516 $ 78,417,229 $ 435,205,689 $ 1,578,176,658 Net assets from contracts in payout.. 282,041 -- -- 2,019 ------------------- ------------------- ------------------- ------------------- Total Net Assets................. $ 715,739,557 $ 78,417,229 $ 435,205,689 $ 1,578,178,677 =================== =================== =================== =================== MIST SSGA MIST T. ROWE PRICE GROWTH ETF LARGE CAP VALUE SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ASSETS: Investments at fair value............ $ 509,607,946 $ 657,944,412 Due from MetLife Investors USA Insurance Company.............. -- -- ------------------- ------------------- Total Assets..................... 509,607,946 657,944,412 ------------------- ------------------- LIABILITIES: Accrued fees......................... 86 91 Due to MetLife Investors USA Insurance Company.............. 2 2 ------------------- ------------------- Total Liabilities................ 88 93 ------------------- ------------------- NET ASSETS.............................. $ 509,607,858 $ 657,944,319 =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 509,607,858 $ 657,632,896 Net assets from contracts in payout.. -- 311,423 ------------------- ------------------- Total Net Assets................. $ 509,607,858 $ 657,944,319 =================== ===================
The accompanying notes are an integral part of these financial statements. 18 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, 2013
MIST T. ROWE PRICE MIST THIRD AVENUE MSF BAILLIE GIFFORD MSF BARCLAYS MID CAP GROWTH SMALL CAP VALUE INTERNATIONAL STOCK AGGREGATE BOND INDEX SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ------------------- -------------------- ASSETS: Investments at fair value............ $ 568,882,803 $ 330,702,076 $ 303,453,108 $ 162,571,949 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- ------------------- ------------------- ------------------- -------------------- Total Assets..................... 568,882,803 330,702,076 303,453,108 162,571,949 ------------------- ------------------- ------------------- -------------------- LIABILITIES: Accrued fees......................... 55 112 57 98 Due to MetLife Investors USA Insurance Company.............. 1 2 4 2 ------------------- ------------------- ------------------- -------------------- Total Liabilities................ 56 114 61 100 ------------------- ------------------- ------------------- -------------------- NET ASSETS.............................. $ 568,882,747 $ 330,701,962 $ 303,453,047 $ 162,571,849 =================== =================== =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 568,794,562 $ 330,531,309 $ 303,453,047 $ 162,571,849 Net assets from contracts in payout.. 88,185 170,653 -- -- ------------------- ------------------- ------------------- -------------------- Total Net Assets................. $ 568,882,747 $ 330,701,962 $ 303,453,047 $ 162,571,849 =================== =================== =================== ==================== MSF BLACKROCK MSF BLACKROCK MSF BLACKROCK MSF BLACKROCK BOND INCOME CAPITAL APPRECIATION LARGE CAP VALUE MONEY MARKET SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ------------------- -------------------- ASSETS: Investments at fair value............ $ 57,252,064 $ 15,272,530 $ 3,792,927 $ 461,343,188 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- ------------------- -------------------- ------------------- -------------------- Total Assets..................... 57,252,064 15,272,530 3,792,927 461,343,188 ------------------- -------------------- ------------------- -------------------- LIABILITIES: Accrued fees......................... 155 184 -- 292 Due to MetLife Investors USA Insurance Company.............. 2 4 1 6 ------------------- -------------------- ------------------- -------------------- Total Liabilities................ 157 188 1 298 ------------------- -------------------- ------------------- -------------------- NET ASSETS.............................. $ 57,251,907 $ 15,272,342 $ 3,792,926 $ 461,342,890 =================== ==================== =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 57,243,808 $ 15,272,342 $ 3,792,926 $ 461,206,268 Net assets from contracts in payout.. 8,099 -- -- 136,622 ------------------- -------------------- ------------------- -------------------- Total Net Assets................. $ 57,251,907 $ 15,272,342 $ 3,792,926 $ 461,342,890 =================== ==================== =================== ==================== MSF DAVIS MSF FRONTIER VENTURE VALUE MID CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ASSETS: Investments at fair value............ $ 658,561,619 $ 83,651,214 Due from MetLife Investors USA Insurance Company.............. -- -- ------------------- -------------------- Total Assets..................... 658,561,619 83,651,214 ------------------- -------------------- LIABILITIES: Accrued fees......................... 177 50 Due to MetLife Investors USA Insurance Company.............. 4 1 ------------------- -------------------- Total Liabilities................ 181 51 ------------------- -------------------- NET ASSETS.............................. $ 658,561,438 $ 83,651,163 =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 658,275,863 $ 83,628,999 Net assets from contracts in payout.. 285,575 22,164 ------------------- -------------------- Total Net Assets................. $ 658,561,438 $ 83,651,163 =================== ====================
The accompanying notes are an integral part of these financial statements. 20 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, 2013
MSF MSF LOOMIS SAYLES MSF LOOMIS SAYLES MSF MET/ARTISAN JENNISON GROWTH SMALL CAP CORE SMALL CAP GROWTH MID CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------- -------------------- -------------------- ASSETS: Investments at fair value............ $ 585,624,287 $ 14,610,873 $ 226,834 $ 285,771,086 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- -------------------- ------------------- -------------------- -------------------- Total Assets.................... 585,624,287 14,610,873 226,834 285,771,086 -------------------- ------------------- -------------------- -------------------- LIABILITIES: Accrued fees......................... 66 98 32 73 Due to MetLife Investors USA Insurance Company.............. 2 2 -- 3 -------------------- ------------------- -------------------- -------------------- Total Liabilities............... 68 100 32 76 -------------------- ------------------- -------------------- -------------------- NET ASSETS.............................. $ 585,624,219 $ 14,610,773 $ 226,802 $ 285,771,010 ==================== =================== ==================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 585,280,529 $ 14,610,773 $ 226,802 $ 285,579,066 Net assets from contracts in payout.. 343,690 -- -- 191,944 -------------------- ------------------- -------------------- -------------------- Total Net Assets................ $ 585,624,219 $ 14,610,773 $ 226,802 $ 285,771,010 ==================== =================== ==================== ==================== MSF MET/DIMENSIONAL MSF METLIFE MSF METLIFE INTERNATIONAL SMALL CONSERVATIVE CONSERVATIVE TO MSF METLIFE COMPANY ALLOCATION MODERATE ALLOCATION MID CAP STOCK INDEX SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value............ $ 66,162,529 $ 7,497,463 $ 7,732,407 $ 125,884,166 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- --------------------- -------------------- -------------------- -------------------- Total Assets.................... 66,162,529 7,497,463 7,732,407 125,884,166 --------------------- -------------------- -------------------- -------------------- LIABILITIES: Accrued fees......................... 106 55 31 87 Due to MetLife Investors USA Insurance Company.............. 4 -- -- 1 --------------------- -------------------- -------------------- -------------------- Total Liabilities............... 110 55 31 88 --------------------- -------------------- -------------------- -------------------- NET ASSETS.............................. $ 66,162,419 $ 7,497,408 $ 7,732,376 $ 125,884,078 ===================== ==================== ==================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 66,162,419 $ 7,497,408 $ 7,732,376 $ 125,884,078 Net assets from contracts in payout.. -- -- -- -- --------------------- -------------------- -------------------- -------------------- Total Net Assets................ $ 66,162,419 $ 7,497,408 $ 7,732,376 $ 125,884,078 ===================== ==================== ==================== ==================== MSF METLIFE MSF METLIFE MODERATE TO MODERATE ALLOCATION AGGRESSIVE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT -------------------- --------------------- ASSETS: Investments at fair value............ $ 44,655,438 $ 57,260,816 Due from MetLife Investors USA Insurance Company.............. -- -- -------------------- --------------------- Total Assets.................... 44,655,438 57,260,816 -------------------- --------------------- LIABILITIES: Accrued fees......................... 16 28 Due to MetLife Investors USA Insurance Company.............. 1 1 -------------------- --------------------- Total Liabilities............... 17 29 -------------------- --------------------- NET ASSETS.............................. $ 44,655,421 $ 57,260,787 ==================== ===================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 44,655,421 $ 57,260,787 Net assets from contracts in payout.. -- -- -------------------- --------------------- Total Net Assets................ $ 44,655,421 $ 57,260,787 ==================== =====================
The accompanying notes are an integral part of these financial statements. 22 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, 2013
MSF METLIFE MSF MSF MSF MSCI STOCK INDEX MFS TOTAL RETURN MFS VALUE EAFE INDEX SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 561,274,528 $ 46,044,648 $ 260,474,139 $ 112,197,240 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- ------------------- ------------------- ------------------- ------------------- Total Assets..................... 561,274,528 46,044,648 260,474,139 112,197,240 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 40 232 168 69 Due to MetLife Investors USA Insurance Company.............. 1 4 7 2 ------------------- ------------------- ------------------- ------------------- Total Liabilities................ 41 236 175 71 ------------------- ------------------- ------------------- ------------------- NET ASSETS.............................. $ 561,274,487 $ 46,044,412 $ 260,473,964 $ 112,197,169 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 561,135,329 $ 46,044,412 $ 260,467,868 $ 112,197,169 Net assets from contracts in payout.. 139,158 -- 6,096 -- ------------------- ------------------- ------------------- ------------------- Total Net Assets................. $ 561,274,487 $ 46,044,412 $ 260,473,964 $ 112,197,169 =================== =================== =================== =================== MSF NEUBERGER MSF MSF T. ROWE PRICE MSF T. ROWE PRICE BERMAN GENESIS RUSSELL 2000 INDEX LARGE CAP GROWTH SMALL CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ------------------- ------------------- ASSETS: Investments at fair value............ $ 172,247,595 $ 141,070,551 $ 151,930,138 $ 10,522,855 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- ------------------- ------------------- ------------------- ------------------- Total Assets..................... 172,247,595 141,070,551 151,930,138 10,522,855 ------------------- ------------------- ------------------- ------------------- LIABILITIES: Accrued fees......................... 133 91 66 42 Due to MetLife Investors USA Insurance Company.............. 2 2 1 -- ------------------- ------------------- ------------------- ------------------- Total Liabilities................ 135 93 67 42 ------------------- ------------------- ------------------- ------------------- NET ASSETS.............................. $ 172,247,460 $ 141,070,458 $ 151,930,071 $ 10,522,813 =================== =================== =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 172,210,991 $ 141,070,458 $ 151,902,711 $ 10,522,813 Net assets from contracts in payout.. 36,469 -- 27,360 -- ------------------- ------------------- ------------------- ------------------- Total Net Assets................. $ 172,247,460 $ 141,070,458 $ 151,930,071 $ 10,522,813 =================== =================== =================== =================== MSF VAN ECK MSF WESTERN ASSET GLOBAL NATURAL MANAGEMENT RESOURCES U.S. GOVERNMENT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ASSETS: Investments at fair value............ $ 106,449,545 $ 291,870,510 Due from MetLife Investors USA Insurance Company.............. -- -- ------------------- ------------------- Total Assets..................... 106,449,545 291,870,510 ------------------- ------------------- LIABILITIES: Accrued fees......................... 45 121 Due to MetLife Investors USA Insurance Company.............. 1 1 ------------------- ------------------- Total Liabilities................ 46 122 ------------------- ------------------- NET ASSETS.............................. $ 106,449,499 $ 291,870,388 =================== =================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 106,449,499 $ 291,855,711 Net assets from contracts in payout.. -- 14,677 ------------------- ------------------- Total Net Assets................. $ 106,449,499 $ 291,870,388 =================== ===================
The accompanying notes are an integral part of these financial statements. 24 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, 2013
OPPENHEIMER VA NEUBERGER OPPENHEIMER VA GLOBAL STRATEGIC OPPENHEIMER VA BERMAN GENESIS CORE BOND INCOME MAIN STREET SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ------------------- -------------------- ASSETS: Investments at fair value............ $ 10,997 $ 8,649 $ 4,493 $ 104,043 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- ------------------- -------------------- ------------------- -------------------- Total Assets.................... 10,997 8,649 4,493 104,043 ------------------- -------------------- ------------------- -------------------- LIABILITIES: Accrued fees......................... 6 3 1 4 Due to MetLife Investors USA Insurance Company.............. -- -- -- -- ------------------- -------------------- ------------------- -------------------- Total Liabilities............... 6 3 1 4 ------------------- -------------------- ------------------- -------------------- NET ASSETS.............................. $ 10,991 $ 8,646 $ 4,492 $ 104,039 =================== ==================== =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 10,991 $ 8,646 $ 4,492 $ 104,039 Net assets from contracts in payout.. -- -- -- -- ------------------- -------------------- ------------------- -------------------- Total Net Assets................ $ 10,991 $ 8,646 $ 4,492 $ 104,039 =================== ==================== =================== ==================== OPPENHEIMER VA OPPENHEIMER VA PIONEER VCT PIONEER VCT MAIN STREET SMALL MONEY DISCIPLINED VALUE EMERGING MARKETS SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------- ------------------- -------------------- ASSETS: Investments at fair value............ $ 123,045,425 $ 4,008 $ 2,003,215 $ 721,676 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- -------------------- ------------------- ------------------- -------------------- Total Assets.................... 123,045,425 4,008 2,003,215 721,676 -------------------- ------------------- ------------------- -------------------- LIABILITIES: Accrued fees......................... 18 8 78 92 Due to MetLife Investors USA Insurance Company.............. -- -- -- 1 -------------------- ------------------- ------------------- -------------------- Total Liabilities............... 18 8 78 93 -------------------- ------------------- ------------------- -------------------- NET ASSETS.............................. $ 123,045,407 $ 4,000 $ 2,003,137 $ 721,583 ==================== =================== =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 123,045,407 $ 4,000 $ 2,003,137 $ 721,583 Net assets from contracts in payout.. -- -- -- -- -------------------- ------------------- ------------------- -------------------- Total Net Assets................ $ 123,045,407 $ 4,000 $ 2,003,137 $ 721,583 ==================== =================== =================== ==================== PIONEER VCT PIONEER VCT IBBOTSON EQUITY INCOME GROWTH ALLOCATION SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ASSETS: Investments at fair value............ $ 637,916 $ 20,842,524 Due from MetLife Investors USA Insurance Company.............. -- -- ------------------- -------------------- Total Assets.................... 637,916 20,842,524 ------------------- -------------------- LIABILITIES: Accrued fees......................... 41 55 Due to MetLife Investors USA Insurance Company.............. 1 1 ------------------- -------------------- Total Liabilities............... 42 56 ------------------- -------------------- NET ASSETS.............................. $ 637,874 $ 20,842,468 =================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 637,874 $ 20,842,468 Net assets from contracts in payout.. -- -- ------------------- -------------------- Total Net Assets................ $ 637,874 $ 20,842,468 =================== ====================
The accompanying notes are an integral part of these financial statements. 26 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 -- (CONCLUDED) DECEMBER 31, 2013
PIONEER VCT IBBOTSON PIONEER VCT PIONEER VCT T. ROWE PRICE MODERATE ALLOCATION MID CAP VALUE REAL ESTATE SHARES GROWTH STOCK SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------- -------------------- -------------------- -------------------- ASSETS: Investments at fair value............ $ 30,201,108 $ 71,900,108 $ 252,718 $ 8,339,192 Due from MetLife Investors USA Insurance Company.............. -- -- -- -- --------------------- -------------------- -------------------- -------------------- Total Assets.................... 30,201,108 71,900,108 252,718 8,339,192 --------------------- -------------------- -------------------- -------------------- LIABILITIES: Accrued fees......................... 44 65 64 -- Due to MetLife Investors USA Insurance Company.............. 1 1 1 -- --------------------- -------------------- -------------------- -------------------- Total Liabilities............... 45 66 65 -- --------------------- -------------------- -------------------- -------------------- NET ASSETS.............................. $ 30,201,063 $ 71,900,042 $ 252,653 $ 8,339,192 ===================== ==================== ==================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 30,201,063 $ 71,900,042 $ 252,653 $ 8,339,192 Net assets from contracts in payout.. -- -- -- -- --------------------- -------------------- -------------------- -------------------- Total Net Assets................ $ 30,201,063 $ 71,900,042 $ 252,653 $ 8,339,192 ===================== ==================== ==================== ==================== T. ROWE PRICE T. ROWE PRICE INTERNATIONAL STOCK PRIME RESERVE UIF U.S. REAL ESTATE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------- -------------------- -------------------- ASSETS: Investments at fair value............ $ 655,401 $ 558,450 $ 100,974,984 Due from MetLife Investors USA Insurance Company.............. -- -- -- --------------------- -------------------- -------------------- Total Assets.................... 655,401 558,450 100,974,984 --------------------- -------------------- -------------------- LIABILITIES: Accrued fees......................... -- -- 6 Due to MetLife Investors USA Insurance Company.............. -- 1 1 --------------------- -------------------- -------------------- Total Liabilities............... -- 1 7 --------------------- -------------------- -------------------- NET ASSETS.............................. $ 655,401 $ 558,449 $ 100,974,977 ===================== ==================== ==================== CONTRACT OWNERS' EQUITY Net assets from accumulation units... $ 655,401 $ 558,449 $ 100,974,977 Net assets from contracts in payout.. -- -- -- --------------------- -------------------- -------------------- Total Net Assets................ $ 655,401 $ 558,449 $ 100,974,977 ===================== ==================== ====================
The accompanying notes are an integral part of these financial statements. 28 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 OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2013
AMERICAN FUNDS ALGER AMERICAN FUNDS AMERICAN FUNDS GLOBAL SMALL SMALL CAP GROWTH BOND GLOBAL GROWTH CAPITALIZATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends............................ $ -- $ 2,659,639 $ 3,543,665 $ 995,290 ------------------- ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges............................ 795,350 1,579,860 3,369,739 1,305,682 Administrative charges............... -- 361,049 700,854 239,013 ------------------- ------------------- ------------------- ------------------- Total expenses..................... 795,350 1,940,909 4,070,593 1,544,695 ------------------- ------------------- ------------------- ------------------- Net investment income (loss).... (795,350) 718,730 (526,928) (549,405) ------------------- ------------------- ------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 7,752,298 1,645,084 -- -- Realized gains (losses) on sale of investments........................ 715,762 105,489 3,982,592 1,957,425 ------------------- ------------------- ------------------- ------------------- Net realized gains (losses)..... 8,468,060 1,750,573 3,982,592 1,957,425 ------------------- ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments..................... 8,688,799 (7,601,790) 65,109,148 25,083,432 ------------------- ------------------- ------------------- ------------------- Net realized and change in unrealized gains (losses) on investments..................... 17,156,859 (5,851,217) 69,091,740 27,040,857 ------------------- ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations.......... $ 16,361,509 $ (5,132,487) $ 68,564,812 $ 26,491,452 =================== =================== =================== =================== AMERICAN FUNDS AMERICAN FUNDS DWS I FEDERATED HIGH GROWTH GROWTH-INCOME INTERNATIONAL INCOME BOND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends............................ $ 7,336,530 $ 4,748,193 $ 924,809 $ 1,732 ------------------- ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges............................ 9,466,721 4,415,548 235,774 357 Administrative charges............... 1,886,375 801,868 -- -- ------------------- ------------------- ------------------- ------------------- Total expenses..................... 11,353,096 5,217,416 235,774 357 ------------------- ------------------- ------------------- ------------------- Net investment income (loss).... (4,016,566) (469,223) 689,035 1,375 ------------------- ------------------- ------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... -- -- -- -- Realized gains (losses) on sale of investments........................ 16,990,100 6,900,940 (490,812) -- ------------------- ------------------- ------------------- ------------------- Net realized gains (losses)..... 16,990,100 6,900,940 (490,812) -- ------------------- ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments..................... 182,361,798 89,831,743 2,799,643 (4) ------------------- ------------------- ------------------- ------------------- Net realized and change in unrealized gains (losses) on investments..................... 199,351,898 96,732,683 2,308,831 (4) ------------------- ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations.......... $ 195,335,332 $ 96,263,460 $ 2,997,866 $ 1,371 =================== =================== =================== =================== FEDERATED FIDELITY VIP KAUFMAN ASSET MANAGER SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- INVESTMENT INCOME: Dividends............................ $ -- $ 1,335,776 ------------------- ------------------- EXPENSES: Mortality and expense risk charges............................ 544 1,168,826 Administrative charges............... -- -- ------------------- ------------------- Total expenses..................... 544 1,168,826 ------------------- ------------------- Net investment income (loss).... (544) 166,950 ------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 3,265 207,129 Realized gains (losses) on sale of investments........................ 351 599,116 ------------------- ------------------- Net realized gains (losses)..... 3,616 806,245 ------------------- ------------------- Change in unrealized gains (losses) on investments..................... 9,524 10,480,801 ------------------- ------------------- Net realized and change in unrealized gains (losses) on investments..................... 13,140 11,287,046 ------------------- ------------------- Net increase (decrease) in net assets resulting from operations.......... $ 12,596 $ 11,453,996 =================== ===================
(a) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 30 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 -- (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2013
FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP CONTRAFUND EQUITY-INCOME FUNDSMANAGER 50% FUNDSMANAGER 60% SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- ------------------- -------------------- INVESTMENT INCOME: Dividends............................. $ 5,646,134 $ 139,396 $ 19,057,686 $ 44,019,083 -------------------- -------------------- ------------------- -------------------- EXPENSES: Mortality and expense risk charges............................. 6,566,916 80,957 24,306,286 75,257,193 Administrative charges................ 776,610 -- -- -- -------------------- -------------------- ------------------- -------------------- Total expenses...................... 7,343,526 80,957 24,306,286 75,257,193 -------------------- -------------------- ------------------- -------------------- Net investment income (loss)..... (1,697,392) 58,439 (5,248,600) (31,238,110) -------------------- -------------------- ------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... 159,570 370,347 10,771,735 140,760,703 Realized gains (losses) on sale of investments......................... 11,441,688 (2,721) -- 30,399,116 -------------------- -------------------- ------------------- -------------------- Net realized gains (losses)...... 11,601,258 367,626 10,771,735 171,159,819 -------------------- -------------------- ------------------- -------------------- Change in unrealized gains (losses) on investments...................... 130,225,189 916,971 141,257,707 435,136,185 -------------------- -------------------- ------------------- -------------------- Net realized and change in unrealized gains (losses) on investments...................... 141,826,447 1,284,597 152,029,442 606,296,004 -------------------- -------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations........... $ 140,129,055 $ 1,343,036 $ 146,780,842 $ 575,057,894 ==================== ==================== =================== ==================== FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP GROWTH INDEX 500 MID CAP MONEY MARKET SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................. $ 427,133 $ 1,208,234 $ 1,103,058 $ 19,205 ------------------- ------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges............................. 2,006,872 883,110 4,345,498 1,616,530 Administrative charges................ -- -- 973,805 -- ------------------- ------------------- -------------------- -------------------- Total expenses...................... 2,006,872 883,110 5,319,303 1,616,530 ------------------- ------------------- -------------------- -------------------- Net investment income (loss)..... (1,579,739) 325,124 (4,216,245) (1,597,325) ------------------- ------------------- -------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... 101,698 659,971 52,528,266 -- Realized gains (losses) on sale of investments......................... 4,010,481 2,197,984 4,049,459 -- ------------------- ------------------- -------------------- -------------------- Net realized gains (losses)...... 4,112,179 2,857,955 56,577,725 -- ------------------- ------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments...................... 41,938,391 14,178,938 61,592,202 -- ------------------- ------------------- -------------------- -------------------- Net realized and change in unrealized gains (losses) on investments...................... 46,050,570 17,036,893 118,169,927 -- ------------------- ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations........... $ 44,470,831 $ 17,362,017 $ 113,953,682 $ (1,597,325) =================== =================== ==================== ==================== FIDELITY VIP FTVIPT FRANKLIN OVERSEAS INCOME SECURITIES SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------- INVESTMENT INCOME: Dividends............................. $ 73,625 $ 17,606,923 -------------------- ------------------- EXPENSES: Mortality and expense risk charges............................. 68,590 3,108,880 Administrative charges................ -- 695,083 -------------------- ------------------- Total expenses...................... 68,590 3,803,963 -------------------- ------------------- Net investment income (loss)..... 5,035 13,802,960 -------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... 20,183 -- Realized gains (losses) on sale of investments......................... (8,588) 335,927 -------------------- ------------------- Net realized gains (losses)...... 11,595 335,927 -------------------- ------------------- Change in unrealized gains (losses) on investments...................... 1,380,290 18,152,582 -------------------- ------------------- Net realized and change in unrealized gains (losses) on investments...................... 1,391,885 18,488,509 -------------------- ------------------- Net increase (decrease) in net assets resulting from operations........... $ 1,396,920 $ 32,291,469 ==================== ===================
(a) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 32 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, 2013
FTVIPT FRANKLIN FTVIPT TEMPLETON SMALL CAP VALUE FTVIPT MUTUAL FTVIPT TEMPLETON GLOBAL BOND SECURITIES SHARES SECURITIES FOREIGN SECURITIES SECURITIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................. $ 1,424,165 $ 3,049,245 $ 1,970,839 $ 11,451,561 -------------------- -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges............................. 1,177,277 1,657,493 1,284,267 2,597,751 Administrative charges................ 270,995 363,180 206,977 601,822 -------------------- -------------------- -------------------- -------------------- Total expenses...................... 1,448,272 2,020,673 1,491,244 3,199,573 -------------------- -------------------- -------------------- -------------------- Net investment income (loss)..... (24,107) 1,028,572 479,595 8,251,988 -------------------- -------------------- -------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... 1,837,932 -- -- 2,956,639 Realized gains (losses) on sale of investments......................... 1,498,054 1,531,390 527,295 (64,028) -------------------- -------------------- -------------------- -------------------- Net realized gains (losses)...... 3,335,986 1,531,390 527,295 2,892,611 -------------------- -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments...................... 28,858,586 31,136,595 14,782,128 (10,624,497) -------------------- -------------------- -------------------- -------------------- Net realized and change in unrealized gains (losses) on investments...................... 32,194,572 32,667,985 15,309,423 (7,731,886) -------------------- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations........... $ 32,170,465 $ 33,696,557 $ 15,789,018 $ 520,102 ==================== ==================== ==================== ==================== INVESCO V.I. INVESCO V.I. INVESCO V.I. INVESCO V.I. AMERICAN FRANCHISE AMERICAN VALUE CORE EQUITY EQUITY AND INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................. $ 610 $ 474,488 $ 3,195 $ 9,000,063 -------------------- -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges............................. 2,011 918,743 3,285 6,577,931 Administrative charges................ -- 208,813 -- 1,461,723 -------------------- -------------------- -------------------- -------------------- Total expenses...................... 2,011 1,127,556 3,285 8,039,654 -------------------- -------------------- -------------------- -------------------- Net investment income (loss)..... (1,401) (653,068) (90) 960,409 -------------------- -------------------- -------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... -- -- -- -- Realized gains (losses) on sale of investments......................... 4,184 1,362,452 11,977 2,646,648 -------------------- -------------------- -------------------- -------------------- Net realized gains (losses)...... 4,184 1,362,452 11,977 2,646,648 -------------------- -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments...................... 44,589 21,986,708 45,509 115,194,853 -------------------- -------------------- -------------------- -------------------- Net realized and change in unrealized gains (losses) on investments...................... 48,773 23,349,160 57,486 117,841,501 -------------------- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations........... $ 47,372 $ 22,696,092 $ 57,396 $ 118,801,910 ==================== ==================== ==================== ==================== INVESCO V.I. INVESCO V.I. GLOBAL REAL ESTATE GROWTH AND INCOME SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------- INVESTMENT INCOME: Dividends............................. $ 1,116,085 $ 4,261,347 -------------------- ------------------- EXPENSES: Mortality and expense risk charges............................. 307,333 3,635,879 Administrative charges................ 69,997 813,892 -------------------- ------------------- Total expenses...................... 377,330 4,449,771 -------------------- ------------------- Net investment income (loss)..... 738,755 (188,424) -------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... -- 2,944,746 Realized gains (losses) on sale of investments......................... 251,182 3,020,114 -------------------- ------------------- Net realized gains (losses)...... 251,182 5,964,860 -------------------- ------------------- Change in unrealized gains (losses) on investments...................... (841,038) 81,951,879 -------------------- ------------------- Net realized and change in unrealized gains (losses) on investments...................... (589,856) 87,916,739 -------------------- ------------------- Net increase (decrease) in net assets resulting from operations........... $ 148,899 $ 87,728,315 ==================== ===================
(a) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 34 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, 2013
LMPVET LMPVET INVESCO V.I. JANUS ASPEN CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE INTERNATIONAL GROWTH GLOBAL RESEARCH AGGRESSIVE GROWTH ALL CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................ $ 2,742,141 $ 73 $ 671,833 $ 1,655,948 -------------------- ------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges............................ 2,753,046 52 2,809,619 1,394,363 Administrative charges............... 625,200 -- 590,305 295,950 -------------------- ------------------- -------------------- -------------------- Total expenses..................... 3,378,246 52 3,399,924 1,690,313 -------------------- ------------------- -------------------- -------------------- Net investment income (loss)..... (636,105) 21 (2,728,091) (34,365) -------------------- ------------------- -------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... -- -- 12,904,072 8,706,055 Realized gains (losses) on sale of investments........................ 1,305,822 120 4,957,428 1,486,711 -------------------- ------------------- -------------------- -------------------- Net realized gains (losses)...... 1,305,822 120 17,861,500 10,192,766 -------------------- ------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments..................... 40,017,340 1,329 71,695,365 20,675,928 -------------------- ------------------- -------------------- -------------------- Net realized and change in unrealized gains (losses) on investments..................... 41,323,162 1,449 89,556,865 30,868,694 -------------------- ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.......... $ 40,687,057 $ 1,470 $ 86,828,774 $ 30,834,329 ==================== =================== ==================== ==================== LMPVET LMPVET LMPVET LMPVET CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE APPRECIATION EQUITY INCOME LARGE CAP GROWTH LARGE CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................ $ 4,560,501 $ 2,745,187 $ 23,290 $ 103,406 -------------------- -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges............................ 4,021,644 1,903,271 70,000 87,700 Administrative charges............... 879,646 414,431 11,460 14,558 -------------------- -------------------- -------------------- -------------------- Total expenses..................... 4,901,290 2,317,702 81,460 102,258 -------------------- -------------------- -------------------- -------------------- Net investment income (loss)..... (340,789) 427,485 (58,170) 1,148 -------------------- -------------------- -------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 12,586,231 -- 491,394 307,920 Realized gains (losses) on sale of investments........................ 1,266,391 646,901 254,029 158,693 -------------------- -------------------- -------------------- -------------------- Net realized gains (losses)...... 13,852,622 646,901 745,423 466,613 -------------------- -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments..................... 72,638,328 33,452,314 710,461 1,056,824 -------------------- -------------------- -------------------- -------------------- Net realized and change in unrealized gains (losses) on investments..................... 86,490,950 34,099,215 1,455,884 1,523,437 -------------------- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.......... $ 86,150,161 $ 34,526,700 $ 1,397,714 $ 1,524,585 ==================== ==================== ==================== ==================== LMPVET LMPVET INVESTMENT CLEARBRIDGE VARIABLE COUNSEL VARIABLE SMALL CAP GROWTH SOCIAL AWARENESS SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------- INVESTMENT INCOME: Dividends............................ $ 40,622 $ 2,393 -------------------- ------------------- EXPENSES: Mortality and expense risk charges............................ 1,051,901 3,889 Administrative charges............... 224,160 717 -------------------- ------------------- Total expenses..................... 1,276,061 4,606 -------------------- ------------------- Net investment income (loss)..... (1,235,439) (2,213) -------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 7,305,832 -- Realized gains (losses) on sale of investments........................ 1,558,761 8,209 -------------------- ------------------- Net realized gains (losses)...... 8,864,593 8,209 -------------------- ------------------- Change in unrealized gains (losses) on investments..................... 24,881,277 39,556 -------------------- ------------------- Net realized and change in unrealized gains (losses) on investments..................... 33,745,870 47,765 -------------------- ------------------- Net increase (decrease) in net assets resulting from operations.......... $ 32,510,431 $ 45,552 ==================== ===================
(a) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 36 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, 2013
LMPVET LMPVET LMPVET LMPVIT WESTERN VARIABLE LIFESTYLE VARIABLE LIFESTYLE VARIABLE LIFESTYLE ASSET VARIABLE GLOBAL ALLOCATION 50% ALLOCATION 70% ALLOCATION 85% HIGH YIELD BOND SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................ $ 873,351 $ 36,589 $ 1,460,852 $ 6,179,424 -------------------- ------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges............................ 438,782 35,306 975,746 1,175,968 Administrative charges............... 98,604 6,498 219,274 249,397 -------------------- ------------------- -------------------- --------------------- Total expenses..................... 537,386 41,804 1,195,020 1,425,365 -------------------- ------------------- -------------------- --------------------- Net investment income (loss).... 335,965 (5,215) 265,832 4,754,059 -------------------- ------------------- -------------------- --------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... -- -- -- -- Realized gains (losses) on sale of investments........................ 294,643 164,204 1,739,917 97,460 -------------------- ------------------- -------------------- --------------------- Net realized gains (losses)..... 294,643 164,204 1,739,917 97,460 -------------------- ------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments..................... 4,402,903 307,412 17,385,552 (303,455) -------------------- ------------------- -------------------- --------------------- Net realized and change in unrealized gains (losses) on investments..................... 4,697,546 471,616 19,125,469 (205,995) -------------------- ------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations.......... $ 5,033,511 $ 466,401 $ 19,391,301 $ 4,548,064 ==================== =================== ==================== ===================== MIST ALLIANCEBERNSTEIN MFS VIT MFS VIT GLOBAL DYNAMIC INVESTORS TRUST NEW DISCOVERY MFS VIT RESEARCH ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ------------------- -------------------- INVESTMENT INCOME: Dividends............................ $ 254 $ -- $ 188 $ 39,779,815 ------------------- -------------------- ------------------- -------------------- EXPENSES: Mortality and expense risk charges............................ 323 581 798 36,599,907 Administrative charges............... -- -- -- 7,790,779 ------------------- -------------------- ------------------- -------------------- Total expenses..................... 323 581 798 44,390,686 ------------------- -------------------- ------------------- -------------------- Net investment income (loss).... (69) (581) (610) (4,610,871) ------------------- -------------------- ------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... -- 326 140 66,116,796 Realized gains (losses) on sale of investments........................ 292 1,680 993 6,931,021 ------------------- -------------------- ------------------- -------------------- Net realized gains (losses)..... 292 2,006 1,133 73,047,817 ------------------- -------------------- ------------------- -------------------- Change in unrealized gains (losses) on investments..................... 5,877 12,769 14,560 213,779,983 ------------------- -------------------- ------------------- -------------------- Net realized and change in unrealized gains (losses) on investments..................... 6,169 14,775 15,693 286,827,800 ------------------- -------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations.......... $ 6,100 $ 14,194 $ 15,083 $ 282,216,929 =================== ==================== =================== ==================== MIST AMERICAN MIST AMERICAN FUNDS BALANCED FUNDS GROWTH ALLOCATION ALLOCATION SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- INVESTMENT INCOME: Dividends............................ $ 45,063,018 $ 16,505,934 ------------------- -------------------- EXPENSES: Mortality and expense risk charges............................ 42,252,390 21,762,771 Administrative charges............... 8,199,489 4,137,682 ------------------- -------------------- Total expenses..................... 50,451,879 25,900,453 ------------------- -------------------- Net investment income (loss).... (5,388,861) (9,394,519) ------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 202,636,315 91,077,385 Realized gains (losses) on sale of investments........................ 47,989,589 30,207,659 ------------------- -------------------- Net realized gains (losses)..... 250,625,904 121,285,044 ------------------- -------------------- Change in unrealized gains (losses) on investments..................... 260,897,780 233,109,626 ------------------- -------------------- Net realized and change in unrealized gains (losses) on investments..................... 511,523,684 354,394,670 ------------------- -------------------- Net increase (decrease) in net assets resulting from operations.......... $ 506,134,823 $ 345,000,151 =================== ====================
(a) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 38 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, 2013
MIST AMERICAN MIST AQR MIST BLACKROCK MIST AMERICAN FUNDS MODERATE GLOBAL RISK GLOBAL TACTICAL FUNDS GROWTH ALLOCATION BALANCED STRATEGIES SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends............................ $ 2,634,418 $ 29,195,296 $ 77,169,328 $ 71,277,628 ------------------- -------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges............................ 7,671,883 22,758,412 43,469,807 61,766,852 Administrative charges............... 1,480,530 4,420,275 9,245,161 13,128,334 ------------------- -------------------- ------------------- ------------------- Total expenses..................... 9,152,413 27,178,687 52,714,968 74,895,186 ------------------- -------------------- ------------------- ------------------- Net investment income (loss)..... (6,517,995) 2,016,609 24,454,360 (3,617,558) ------------------- -------------------- ------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 29,294,729 96,296,087 143,800,114 115,215,891 Realized gains (losses) on sale of investments........................ 26,472,567 23,672,085 (12,389,834) 18,039,686 ------------------- -------------------- ------------------- ------------------- Net realized gains (losses)...... 55,767,296 119,968,172 131,410,280 133,255,577 ------------------- -------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments..................... 96,031,643 74,888,275 (347,099,092) 311,060,284 ------------------- -------------------- ------------------- ------------------- Net realized and change in unrealized gains (losses) on investments..................... 151,798,939 194,856,447 (215,688,812) 444,315,861 ------------------- -------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations.......... $ 145,280,944 $ 196,873,056 $ (191,234,452) $ 440,698,303 =================== ==================== =================== =================== MIST BLACKROCK MIST BLACKROCK MIST CLARION MIST CLEARBRIDGE HIGH YIELD LARGE CAP CORE GLOBAL REAL ESTATE AGGRESSIVE GROWTH II SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................ $ 18,834,222 $ 200,349 $ 12,947,679 $ 651,867 ------------------- ------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges............................ 3,567,603 231,165 2,622,102 1,400,541 Administrative charges............... 670,423 38,903 472,278 257,443 ------------------- ------------------- -------------------- -------------------- Total expenses..................... 4,238,026 270,068 3,094,380 1,657,984 ------------------- ------------------- -------------------- -------------------- Net investment income (loss)..... 14,596,196 (69,719) 9,853,299 (1,006,117) ------------------- ------------------- -------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 7,625,640 -- -- -- Realized gains (losses) on sale of investments........................ 2,016,699 843,040 (92,999) 5,873,060 ------------------- ------------------- -------------------- -------------------- Net realized gains (losses)...... 9,642,339 843,040 (92,999) 5,873,060 ------------------- ------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments..................... (4,631,091) 3,552,916 (6,455,197) 19,911,595 ------------------- ------------------- -------------------- -------------------- Net realized and change in unrealized gains (losses) on investments..................... 5,011,248 4,395,956 (6,548,196) 25,784,655 ------------------- ------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.......... $ 19,607,444 $ 4,326,237 $ 3,305,103 $ 24,778,538 =================== =================== ==================== ==================== MIST CLEARBRIDGE MIST GOLDMAN SACHS AGGRESSIVE GROWTH MID CAP VALUE SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- INVESTMENT INCOME: Dividends............................ $ 804,033 $ 1,444,830 ------------------- -------------------- EXPENSES: Mortality and expense risk charges............................ 4,918,827 2,210,823 Administrative charges............... 924,636 407,162 ------------------- -------------------- Total expenses..................... 5,843,463 2,617,985 ------------------- -------------------- Net investment income (loss)..... (5,039,430) (1,173,155) ------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... -- 5,739,462 Realized gains (losses) on sale of investments........................ 11,473,473 6,273,913 ------------------- -------------------- Net realized gains (losses)...... 11,473,473 12,013,375 ------------------- -------------------- Change in unrealized gains (losses) on investments..................... 123,052,679 31,704,368 ------------------- -------------------- Net realized and change in unrealized gains (losses) on investments..................... 134,526,152 43,717,743 ------------------- -------------------- Net increase (decrease) in net assets resulting from operations.......... $ 129,486,722 $ 42,544,588 =================== ====================
(a) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 40 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, 2013
MIST MIST INVESCO HARRIS OAKMARK BALANCED-RISK MIST INVESCO MIST INVESCO INTERNATIONAL ALLOCATION COMSTOCK MID CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ------------------ ------------------- INVESTMENT INCOME: Dividends............................ $ 14,919,166 $ -- $ 4,115,774 $ 1,107,426 ------------------- ------------------- ------------------ ------------------- EXPENSES: Mortality and expense risk charges............................ 8,192,161 9,997,790 4,825,998 2,046,225 Administrative charges............... 1,525,990 2,160,902 964,548 375,754 ------------------- ------------------- ------------------ ------------------- Total expenses..................... 9,718,151 12,158,692 5,790,546 2,421,979 ------------------- ------------------- ------------------ ------------------- Net investment income (loss)..... 5,201,015 (12,158,692) (1,674,772) (1,314,553) ------------------- ------------------- ------------------ ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... -- 8,370,113 -- -- Realized gains (losses) on sale of investments........................ 11,702,177 1,706,902 9,703,108 7,722,920 ------------------- ------------------- ------------------ ------------------- Net realized gains (losses)...... 11,702,177 10,077,015 9,703,108 7,722,920 ------------------- ------------------- ------------------ ------------------- Change in unrealized gains (losses) on investments..................... 134,182,838 4,078,692 101,696,056 30,620,411 ------------------- ------------------- ------------------ ------------------- Net realized and change in unrealized gains (losses) on investments..................... 145,885,015 14,155,707 111,399,164 38,343,331 ------------------- ------------------- ------------------ ------------------- Net increase (decrease) in net assets resulting from operations.......... $ 151,086,030 $ 1,997,015 $ 109,724,392 $ 37,028,778 =================== =================== ================== =================== MIST JPMORGAN MIST INVESCO MIST JPMORGAN GLOBAL ACTIVE MIST JPMORGAN SMALL CAP GROWTH CORE BOND ALLOCATION SMALL CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------ ------------------- ------------------- INVESTMENT INCOME: Dividends............................ $ 622,860 $ 920,373 $ 402,891 $ 180,697 ------------------- ------------------ ------------------- ------------------- EXPENSES: Mortality and expense risk charges............................ 3,613,388 4,330,629 6,013,719 395,814 Administrative charges............... 684,045 828,654 1,323,733 65,410 ------------------- ------------------ ------------------- ------------------- Total expenses..................... 4,297,433 5,159,283 7,337,452 461,224 ------------------- ------------------ ------------------- ------------------- Net investment income (loss)..... (3,674,573) (4,238,910) (6,934,561) (280,527) ------------------- ------------------ ------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 15,858,644 1,446,300 2,377,058 -- Realized gains (losses) on sale of investments........................ 8,726,778 23,440,529 52,966 1,241,336 ------------------- ------------------ ------------------- ------------------- Net realized gains (losses)...... 24,585,422 24,886,829 2,430,024 1,241,336 ------------------- ------------------ ------------------- ------------------- Change in unrealized gains (losses) on investments..................... 67,501,884 (36,171,178) 53,369,009 6,048,540 ------------------- ------------------ ------------------- ------------------- Net realized and change in unrealized gains (losses) on investments..................... 92,087,306 (11,284,349) 55,799,033 7,289,876 ------------------- ------------------ ------------------- ------------------- Net increase (decrease) in net assets resulting from operations.......... $ 88,412,733 $ (15,523,259) $ 48,864,472 $ 7,009,349 =================== ================== =================== =================== MIST LOOMIS SAYLES MIST LORD ABBETT GLOBAL MARKETS BOND DEBENTURE SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------ INVESTMENT INCOME: Dividends............................ $ 4,375,048 $ 17,189,255 ------------------- ------------------ EXPENSES: Mortality and expense risk charges............................ 2,402,291 3,595,505 Administrative charges............... 452,881 629,148 ------------------- ------------------ Total expenses..................... 2,855,172 4,224,653 ------------------- ------------------ Net investment income (loss)..... 1,519,876 12,964,602 ------------------- ------------------ NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... -- -- Realized gains (losses) on sale of investments........................ 5,872,725 4,166,635 ------------------- ------------------ Net realized gains (losses)...... 5,872,725 4,166,635 ------------------- ------------------ Change in unrealized gains (losses) on investments..................... 18,236,473 (1,363,498) ------------------- ------------------ Net realized and change in unrealized gains (losses) on investments..................... 24,109,198 2,803,137 ------------------- ------------------ Net increase (decrease) in net assets resulting from operations.......... $ 25,629,074 $ 15,767,739 =================== ==================
(a) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 42 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, 2013
MIST MIST MET/FRANKLIN MET/EATON VANCE LOW DURATION MIST MET/TEMPLETON MIST METLIFE FLOATING RATE TOTAL RETURN INTERNATIONAL BOND AGGRESSIVE STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends............................ $ 2,232,948 $ 893,838 $ 1,133,225 $ 4,474,444 ------------------- ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges............................ 900,105 1,094,957 716,202 8,137,841 Administrative charges............... 164,980 208,094 140,116 1,499,478 ------------------- ------------------- ------------------- ------------------- Total expenses..................... 1,065,085 1,303,051 856,318 9,637,319 ------------------- ------------------- ------------------- ------------------- Net investment income (loss)..... 1,167,863 (409,213) 276,907 (5,162,875) ------------------- ------------------- ------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 265,827 -- 255,578 -- Realized gains (losses) on sale of investments........................ 105,627 31,429 (156,759) 8,803,988 ------------------- ------------------- ------------------- ------------------- Net realized gains (losses)...... 371,454 31,429 98,819 8,803,988 ------------------- ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments..................... (202,111) 351,282 (752,953) 141,558,132 ------------------- ------------------- ------------------- ------------------- Net realized and change in unrealized gains (losses) on investments..................... 169,343 382,711 (654,134) 150,362,120 ------------------- ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations.......... $ 1,337,206 $ (26,502) $ (377,227) $ 145,199,245 =================== =================== =================== =================== MIST METLIFE MIST METLIFE MIST METLIFE MIST METLIFE BALANCED PLUS BALANCED STRATEGY DEFENSIVE STRATEGY GROWTH STRATEGY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ------------------- -------------------- INVESTMENT INCOME: Dividends............................ $ 65,671,911 $ 149,909,646 $ 65,562,565 $ 84,984,230 ------------------- ------------------- ------------------- -------------------- EXPENSES: Mortality and expense risk charges............................ 64,042,950 99,177,562 28,901,690 82,512,768 Administrative charges............... 13,798,627 18,629,342 5,413,398 15,126,933 ------------------- ------------------- ------------------- -------------------- Total expenses..................... 77,841,577 117,806,904 34,315,088 97,639,701 ------------------- ------------------- ------------------- -------------------- Net investment income (loss)..... (12,169,666) 32,102,742 31,247,477 (12,655,471) ------------------- ------------------- ------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 106,085,395 -- 53,092,452 -- Realized gains (losses) on sale of investments........................ 3,300,639 83,827,637 61,751,261 48,996,687 ------------------- ------------------- ------------------- -------------------- Net realized gains (losses)...... 109,386,034 83,827,637 114,843,713 48,996,687 ------------------- ------------------- ------------------- -------------------- Change in unrealized gains (losses) on investments..................... 560,925,735 1,085,370,764 8,150,548 1,250,387,461 ------------------- ------------------- ------------------- -------------------- Net realized and change in unrealized gains (losses) on investments..................... 670,311,769 1,169,198,401 122,994,261 1,299,384,148 ------------------- ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations.......... $ 658,142,103 $ 1,201,301,143 $ 154,241,738 $ 1,286,728,677 =================== =================== =================== ==================== MIST METLIFE MIST METLIFE MULTI-INDEX MODERATE STRATEGY TARGETED RISK SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- INVESTMENT INCOME: Dividends............................ $ 84,759,182 $ 471,631 ------------------- ------------------- EXPENSES: Mortality and expense risk charges............................ 47,260,820 956,800 Administrative charges............... 8,890,601 213,949 ------------------- ------------------- Total expenses..................... 56,151,421 1,170,749 ------------------- ------------------- Net investment income (loss)..... 28,607,761 (699,118) ------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 6,497,219 3,615,891 Realized gains (losses) on sale of investments........................ 54,428,069 1,196 ------------------- ------------------- Net realized gains (losses)...... 60,925,288 3,617,087 ------------------- ------------------- Change in unrealized gains (losses) on investments..................... 327,287,238 7,257,662 ------------------- ------------------- Net realized and change in unrealized gains (losses) on investments..................... 388,212,526 10,874,749 ------------------- ------------------- Net increase (decrease) in net assets resulting from operations.......... $ 416,820,287 $ 10,175,631 =================== ===================
(a) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 44 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, 2013
MIST MIST MFS EMERGING MFS RESEARCH MIST MORGAN STANLEY MIST OPPENHEIMER MARKETS EQUITY INTERNATIONAL MID CAP GROWTH GLOBAL EQUITY SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ------------------- ------------------ INVESTMENT INCOME: Dividends............................ $ 4,811,505 $ 8,275,334 $ 1,254,825 $ 190,049 ------------------- ------------------- ------------------- ------------------ EXPENSES: Mortality and expense risk charges............................ 5,795,261 4,320,197 2,442,024 579,669 Administrative charges............... 1,119,941 773,166 509,321 133,512 ------------------- ------------------- ------------------- ------------------ Total expenses..................... 6,915,202 5,093,363 2,951,345 713,181 ------------------- ------------------- ------------------- ------------------ Net investment income (loss)..... (2,103,697) 3,181,971 (1,696,520) (523,132) ------------------- ------------------- ------------------- ------------------ NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... -- -- -- -- Realized gains (losses) on sale of investments........................ 1,835,792 522,322 2,455,142 471,553 ------------------- ------------------- ------------------- ------------------ Net realized gains (losses)...... 1,835,792 522,322 2,455,142 471,553 ------------------- ------------------- ------------------- ------------------ Change in unrealized gains (losses) on investments..................... (28,154,915) 47,772,611 64,718,433 11,622,690 ------------------- ------------------- ------------------- ------------------ Net realized and change in unrealized gains (losses) on investments..................... (26,319,123) 48,294,933 67,173,575 12,094,243 ------------------- ------------------- ------------------- ------------------ Net increase (decrease) in net assets resulting from operations.......... $ (28,422,820) $ 51,476,904 $ 65,477,055 $ 11,571,111 =================== =================== =================== ================== MIST PIMCO INFLATION MIST PIMCO MIST MIST PIONEER PROTECTED BOND TOTAL RETURN PIONEER FUND STRATEGIC INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------ ------------------- ------------------- ------------------- INVESTMENT INCOME: Dividends............................ $ 20,321,139 $ 90,299,548 $ 8,345,878 $ 42,197,941 ------------------ ------------------- ------------------- ------------------- EXPENSES: Mortality and expense risk charges............................ 12,353,026 27,924,331 3,001,470 9,905,068 Administrative charges............... 2,311,558 5,148,777 661,711 2,187,565 ------------------ ------------------- ------------------- ------------------- Total expenses..................... 14,664,584 33,073,108 3,663,181 12,092,633 ------------------ ------------------- ------------------- ------------------- Net investment income (loss)..... 5,656,555 57,226,440 4,682,697 30,105,308 ------------------ ------------------- ------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 54,275,448 41,946,555 -- 2,413,486 Realized gains (losses) on sale of investments........................ (9,555,213) 338,113 4,614,621 934,646 ------------------ ------------------- ------------------- ------------------- Net realized gains (losses)...... 44,720,235 42,284,668 4,614,621 3,348,132 ------------------ ------------------- ------------------- ------------------- Change in unrealized gains (losses) on investments..................... (156,230,192) (175,186,613) 61,555,660 (32,752,219) ------------------ ------------------- ------------------- ------------------- Net realized and change in unrealized gains (losses) on investments..................... (111,509,957) (132,901,945) 66,170,281 (29,404,087) ------------------ ------------------- ------------------- ------------------- Net increase (decrease) in net assets resulting from operations.......... $ (105,853,402) $ (75,675,505) $ 70,852,978 $ 701,221 ================== =================== =================== =================== MIST PYRAMIS MIST PYRAMIS GOVERNMENT INCOME MANAGED RISK SUB-ACCOUNT SUB-ACCOUNT (a) ------------------- ------------------ INVESTMENT INCOME: Dividends............................ $ 13,071,961 $ 598,784 ------------------- ------------------ EXPENSES: Mortality and expense risk charges............................ 9,769,937 286,383 Administrative charges............... 2,114,851 60,668 ------------------- ------------------ Total expenses..................... 11,884,788 347,051 ------------------- ------------------ Net investment income (loss)..... 1,187,173 251,733 ------------------- ------------------ NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 8,128,079 1,341,853 Realized gains (losses) on sale of investments........................ (5,369,602) (10,897) ------------------- ------------------ Net realized gains (losses)...... 2,758,477 1,330,956 ------------------- ------------------ Change in unrealized gains (losses) on investments..................... (56,847,411) 1,889,489 ------------------- ------------------ Net realized and change in unrealized gains (losses) on investments..................... (54,088,934) 3,220,445 ------------------- ------------------ Net increase (decrease) in net assets resulting from operations.......... $ (52,901,761) $ 3,472,178 =================== ==================
(a) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 46 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, 2013
MIST SCHRODERS MIST SSGA GROWTH MIST SSGA MIST T. ROWE PRICE GLOBAL MULTI-ASSET AND INCOME ETF GROWTH ETF LARGE CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------- -------------------- ------------------- INVESTMENT INCOME: Dividends............................ $ 27,512 $ 38,910,462 $ 10,135,199 $ 9,703,207 -------------------- ------------------- -------------------- ------------------- EXPENSES: Mortality and expense risk charges............................ 3,965,836 19,625,254 6,213,087 8,330,375 Administrative charges............... 856,921 3,878,354 1,204,388 1,098,308 -------------------- ------------------- -------------------- ------------------- Total expenses..................... 4,822,757 23,503,608 7,417,475 9,428,683 -------------------- ------------------- -------------------- ------------------- Net investment income (loss).... (4,795,245) 15,406,854 2,717,724 274,524 -------------------- ------------------- -------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 1,183,030 36,548,485 17,541,690 -- Realized gains (losses) on sale of investments........................ 896,710 20,251,017 7,845,129 12,380,070 -------------------- ------------------- -------------------- ------------------- Net realized gains (losses)..... 2,079,740 56,799,502 25,386,819 12,380,070 -------------------- ------------------- -------------------- ------------------- Change in unrealized gains (losses) on investments..................... 31,029,531 92,923,301 44,458,197 154,938,541 -------------------- ------------------- -------------------- ------------------- Net realized and change in unrealized gains (losses) on investments..................... 33,109,271 149,722,803 69,845,016 167,318,611 -------------------- ------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations.......... $ 28,314,026 $ 165,129,657 $ 72,562,740 $ 167,593,135 ==================== =================== ==================== =================== MIST T. ROWE PRICE MIST THIRD AVENUE MSF BAILLIE GIFFORD MSF BARCLAYS MID CAP GROWTH SMALL CAP VALUE INTERNATIONAL STOCK AGGREGATE BOND INDEX SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................ $ 1,085,760 $ 3,116,142 $ 35,486 $ 5,044,056 ------------------- -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges............................ 6,995,212 4,315,721 2,684,850 1,989,879 Administrative charges............... 1,307,457 772,929 516,484 370,173 ------------------- -------------------- -------------------- -------------------- Total expenses..................... 8,302,669 5,088,650 3,201,334 2,360,052 ------------------- -------------------- -------------------- -------------------- Net investment income (loss).... (7,216,909) (1,972,508) (3,165,848) 2,684,004 ------------------- -------------------- -------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 27,440,112 -- -- -- Realized gains (losses) on sale of investments........................ 16,686,809 14,422,998 1,385,436 (145,067) ------------------- -------------------- -------------------- -------------------- Net realized gains (losses)..... 44,126,921 14,422,998 1,385,436 (145,067) ------------------- -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments..................... 116,792,789 71,078,415 31,198,214 (8,883,122) ------------------- -------------------- -------------------- -------------------- Net realized and change in unrealized gains (losses) on investments..................... 160,919,710 85,501,413 32,583,650 (9,028,189) ------------------- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations.......... $ 153,702,801 $ 83,528,905 $ 29,417,802 $ (6,344,185) =================== ==================== ==================== ==================== MSF BLACKROCK MSF BLACKROCK BOND INCOME CAPITAL APPRECIATION SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- INVESTMENT INCOME: Dividends............................ $ 2,225,070 $ 106,239 ------------------- -------------------- EXPENSES: Mortality and expense risk charges............................ 836,982 189,165 Administrative charges............... 131,860 29,512 ------------------- -------------------- Total expenses..................... 968,842 218,677 ------------------- -------------------- Net investment income (loss).... 1,256,228 (112,438) ------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 1,413,627 -- Realized gains (losses) on sale of investments........................ 102,228 691,188 ------------------- -------------------- Net realized gains (losses)..... 1,515,855 691,188 ------------------- -------------------- Change in unrealized gains (losses) on investments..................... (4,322,733) 3,229,055 ------------------- -------------------- Net realized and change in unrealized gains (losses) on investments..................... (2,806,878) 3,920,243 ------------------- -------------------- Net increase (decrease) in net assets resulting from operations.......... $ (1,550,650) $ 3,807,805 =================== ====================
(a) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 48 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, 2013
MSF BLACKROCK MSF BLACKROCK MSF DAVIS MSF FRONTIER LARGE CAP VALUE MONEY MARKET VENTURE VALUE MID CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (a) ------------------- ------------------- ------------------- -------------------- INVESTMENT INCOME: Dividends............................ $ 47,745 $ -- $ 7,934,120 $ -- ------------------- ------------------- ------------------- -------------------- EXPENSES: Mortality and expense risk charges............................ 45,976 6,753,002 8,428,727 758,287 Administrative charges............... -- 1,259,595 1,529,806 139,504 ------------------- ------------------- ------------------- -------------------- Total expenses..................... 45,976 8,012,597 9,958,533 897,791 ------------------- ------------------- ------------------- -------------------- Net investment income (loss).... 1,769 (8,012,597) (2,024,413) (897,791) ------------------- ------------------- ------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 184,594 -- 10,467,525 -- Realized gains (losses) on sale of investments........................ 11,833 -- 30,055,792 1,222,819 ------------------- ------------------- ------------------- -------------------- Net realized gains (losses)..... 196,427 -- 40,523,317 1,222,819 ------------------- ------------------- ------------------- -------------------- Change in unrealized gains (losses) on investments..................... 706,190 -- 130,538,788 14,503,587 ------------------- ------------------- ------------------- -------------------- Net realized and change in unrealized gains (losses) on investments..................... 902,617 -- 171,062,105 15,726,406 ------------------- ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations.......... $ 904,386 $ (8,012,597) $ 169,037,692 $ 14,828,615 =================== =================== =================== ==================== MSF MSF LOOMIS SAYLES MSF LOOMIS SAYLES MSF MET/ARTISAN JENNISON GROWTH SMALL CAP CORE SMALL CAP GROWTH MID CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- ------------------- -------------------- INVESTMENT INCOME: Dividends............................ $ 1,077,074 $ 30,285 $ -- $ 1,930,028 ------------------- ------------------- ------------------- -------------------- EXPENSES: Mortality and expense risk charges............................ 7,117,305 197,320 1,128 3,423,728 Administrative charges............... 1,294,771 33,017 283 587,956 ------------------- ------------------- ------------------- -------------------- Total expenses..................... 8,412,076 230,337 1,411 4,011,684 ------------------- ------------------- ------------------- -------------------- Net investment income (loss).... (7,335,002) (200,052) (1,411) (2,081,656) ------------------- ------------------- ------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 5,112,106 1,002,384 -- -- Realized gains (losses) on sale of investments........................ 15,187,756 980,613 10,812 2,704,503 ------------------- ------------------- ------------------- -------------------- Net realized gains (losses)..... 20,299,862 1,982,997 10,812 2,704,503 ------------------- ------------------- ------------------- -------------------- Change in unrealized gains (losses) on investments..................... 145,943,839 2,464,698 37,804 71,939,639 ------------------- ------------------- ------------------- -------------------- Net realized and change in unrealized gains (losses) on investments..................... 166,243,701 4,447,695 48,616 74,644,142 ------------------- ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations.......... $ 158,908,699 $ 4,247,643 $ 47,205 $ 72,562,486 =================== =================== =================== ==================== MSF MET/DIMENSIONAL MSF METLIFE INTERNATIONAL SMALL CONSERVATIVE COMPANY ALLOCATION SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- INVESTMENT INCOME: Dividends............................ $ 1,008,312 $ 279,202 ------------------- ------------------- EXPENSES: Mortality and expense risk charges............................ 786,753 132,606 Administrative charges............... 146,029 22,998 ------------------- ------------------- Total expenses..................... 932,782 155,604 ------------------- ------------------- Net investment income (loss).... 75,530 123,598 ------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 1,576,427 45,703 Realized gains (losses) on sale of investments........................ 477,444 278,592 ------------------- ------------------- Net realized gains (losses)..... 2,053,871 324,295 ------------------- ------------------- Change in unrealized gains (losses) on investments..................... 11,472,763 (227,599) ------------------- ------------------- Net realized and change in unrealized gains (losses) on investments..................... 13,526,634 96,696 ------------------- ------------------- Net increase (decrease) in net assets resulting from operations.......... $ 13,602,164 $ 220,294 =================== ===================
(a) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 50 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, 2013
MSF METLIFE MSF METLIFE CONSERVATIVE TO MSF METLIFE MSF METLIFE MODERATE TO MODERATE ALLOCATION MID CAP STOCK INDEX MODERATE ALLOCATION AGGRESSIVE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------- -------------------- --------------------- INVESTMENT INCOME: Dividends............................ $ 192,977 $ 1,146,951 $ 854,751 $ 798,260 -------------------- ------------------- -------------------- --------------------- EXPENSES: Mortality and expense risk charges............................ 113,772 1,500,758 636,285 809,065 Administrative charges............... 19,027 212,206 107,040 136,956 -------------------- ------------------- -------------------- --------------------- Total expenses..................... 132,799 1,712,964 743,325 946,021 -------------------- ------------------- -------------------- --------------------- Net investment income (loss).... 60,178 (566,013) 111,426 (147,761) -------------------- ------------------- -------------------- --------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 79,641 3,264,955 348,738 -- Realized gains (losses) on sale of investments........................ 126,022 3,699,798 670,193 927,158 -------------------- ------------------- -------------------- --------------------- Net realized gains (losses)..... 205,663 6,964,753 1,018,931 927,158 -------------------- ------------------- -------------------- --------------------- Change in unrealized gains (losses) on investments..................... 395,866 23,599,476 5,244,250 10,180,246 -------------------- ------------------- -------------------- --------------------- Net realized and change in unrealized gains (losses) on investments..................... 601,529 30,564,229 6,263,181 11,107,404 -------------------- ------------------- -------------------- --------------------- Net increase (decrease) in net assets resulting from operations.......... $ 661,707 $ 29,998,216 $ 6,374,607 $ 10,959,643 ==================== =================== ==================== ===================== MSF METLIFE MSF MSF MSF MSCI STOCK INDEX MFS TOTAL RETURN MFS VALUE EAFE INDEX SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- ------------------- -------------------- INVESTMENT INCOME: Dividends............................ $ 8,570,152 $ 938,479 $ 1,008,807 $ 2,867,071 ------------------- -------------------- ------------------- -------------------- EXPENSES: Mortality and expense risk charges............................ 7,336,639 565,222 2,492,653 1,277,623 Administrative charges............... 1,106,897 75,767 436,300 200,820 ------------------- -------------------- ------------------- -------------------- Total expenses..................... 8,443,536 640,989 2,928,953 1,478,443 ------------------- -------------------- ------------------- -------------------- Net investment income (loss).... 126,616 297,490 (1,920,146) 1,388,628 ------------------- -------------------- ------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 7,693,711 -- 1,722,437 -- Realized gains (losses) on sale of investments........................ 15,797,044 439,651 3,468,253 1,008,944 ------------------- -------------------- ------------------- -------------------- Net realized gains (losses)..... 23,490,755 439,651 5,190,690 1,008,944 ------------------- -------------------- ------------------- -------------------- Change in unrealized gains (losses) on investments..................... 106,939,595 5,520,960 43,048,658 15,456,919 ------------------- -------------------- ------------------- -------------------- Net realized and change in unrealized gains (losses) on investments..................... 130,430,350 5,960,611 48,239,348 16,465,863 ------------------- -------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations.......... $ 130,556,966 $ 6,258,101 $ 46,319,202 $ 17,854,491 =================== ==================== =================== ==================== MSF NEUBERGER MSF BERMAN GENESIS RUSSELL 2000 INDEX SUB-ACCOUNT SUB-ACCOUNT ------------------- ------------------- INVESTMENT INCOME: Dividends............................ $ 108,234 $ 1,470,662 ------------------- ------------------- EXPENSES: Mortality and expense risk charges............................ 1,557,555 1,497,893 Administrative charges............... 252,687 252,496 ------------------- ------------------- Total expenses..................... 1,810,242 1,750,389 ------------------- ------------------- Net investment income (loss).... (1,702,008) (279,727) ------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... -- -- Realized gains (losses) on sale of investments........................ 2,307,614 2,980,519 ------------------- ------------------- Net realized gains (losses)..... 2,307,614 2,980,519 ------------------- ------------------- Change in unrealized gains (losses) on investments..................... 36,584,374 32,072,788 ------------------- ------------------- Net realized and change in unrealized gains (losses) on investments..................... 38,891,988 35,053,307 ------------------- ------------------- Net increase (decrease) in net assets resulting from operations.......... $ 37,189,980 $ 34,773,580 =================== ===================
(a) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 52 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, 2013
MSF VAN ECK MSF WESTERN ASSET MSF T. ROWE PRICE MSF T. ROWE PRICE GLOBAL NATURAL MANAGEMENT LARGE CAP GROWTH SMALL CAP GROWTH RESOURCES U.S. GOVERNMENT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------- ------------------- -------------------- INVESTMENT INCOME: Dividends............................ $ 1,258 $ 19,657 $ 747,749 $ 5,946,946 -------------------- ------------------- ------------------- -------------------- EXPENSES: Mortality and expense risk charges............................ 1,153,862 125,872 1,458,759 3,638,967 Administrative charges............... 208,703 12,195 281,714 760,986 -------------------- ------------------- ------------------- -------------------- Total expenses..................... 1,362,565 138,067 1,740,473 4,399,953 -------------------- ------------------- ------------------- -------------------- Net investment income (loss).... (1,361,307) (118,410) (992,724) 1,546,993 -------------------- ------------------- ------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... -- 476,803 -- -- Realized gains (losses) on sale of investments........................ 1,274,164 713,962 (2,668,683) 12,769 -------------------- ------------------- ------------------- -------------------- Net realized gains (losses)..... 1,274,164 1,190,765 (2,668,683) 12,769 -------------------- ------------------- ------------------- -------------------- Change in unrealized gains (losses) on investments..................... 29,734,972 2,047,671 13,797,608 (8,825,000) -------------------- ------------------- ------------------- -------------------- Net realized and change in unrealized gains (losses) on investments..................... 31,009,136 3,238,436 11,128,925 (8,812,231) -------------------- ------------------- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations.......... $ 29,647,829 $ 3,120,026 $ 10,136,201 $ (7,265,238) ==================== =================== =================== ==================== OPPENHEIMER VA NEUBERGER OPPENHEIMER VA GLOBAL STRATEGIC OPPENHEIMER VA BERMAN GENESIS CORE BOND INCOME MAIN STREET SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- ------------------- -------------------- ------------------- INVESTMENT INCOME: Dividends............................ $ 30 $ 459 $ 226 $ 1,023 -------------------- ------------------- -------------------- ------------------- EXPENSES: Mortality and expense risk charges............................ 83 124 62 1,303 Administrative charges............... -- -- -- -- -------------------- ------------------- -------------------- ------------------- Total expenses..................... 83 124 62 1,303 -------------------- ------------------- -------------------- ------------------- Net investment income (loss).... (53) 335 164 (280) -------------------- ------------------- -------------------- ------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 714 -- -- -- Realized gains (losses) on sale of investments........................ 35 (126) 8 1,403 -------------------- ------------------- -------------------- ------------------- Net realized gains (losses)..... 749 (126) 8 1,403 -------------------- ------------------- -------------------- ------------------- Change in unrealized gains (losses) on investments..................... 2,197 (342) (240) 23,373 -------------------- ------------------- -------------------- ------------------- Net realized and change in unrealized gains (losses) on investments..................... 2,946 (468) (232) 24,776 -------------------- ------------------- -------------------- ------------------- Net increase (decrease) in net assets resulting from operations.......... $ 2,893 $ (133) $ (68) $ 24,496 ==================== =================== ==================== =================== OPPENHEIMER VA MAIN STREET OPPENHEIMER VA SMALL CAP MONEY SUB-ACCOUNT SUB-ACCOUNT ------------------- -------------------- INVESTMENT INCOME: Dividends............................ $ 782,829 $ 1 ------------------- -------------------- EXPENSES: Mortality and expense risk charges............................ 1,229,635 103 Administrative charges............... 278,491 -- ------------------- -------------------- Total expenses..................... 1,508,126 103 ------------------- -------------------- Net investment income (loss).... (725,297) (102) ------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions.......... 1,350,984 -- Realized gains (losses) on sale of investments........................ 4,979,504 -- ------------------- -------------------- Net realized gains (losses)..... 6,330,488 -- ------------------- -------------------- Change in unrealized gains (losses) on investments..................... 30,298,071 -- ------------------- -------------------- Net realized and change in unrealized gains (losses) on investments..................... 36,628,559 -- ------------------- -------------------- Net increase (decrease) in net assets resulting from operations.......... $ 35,903,262 $ (102) =================== ====================
(a) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 54 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, 2013
PIONEER VCT PIONEER VCT PIONEER VCT DISCIPLINED VALUE EMERGING MARKETS EQUITY INCOME SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................. $ 33,900 $ 6,728 $ 13,722 -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges............................. 26,992 9,857 8,766 Administrative charges................ 5,310 1,825 1,488 -------------------- -------------------- -------------------- Total expenses...................... 32,302 11,682 10,254 -------------------- -------------------- -------------------- Net investment income (loss)..... 1,598 (4,954) 3,468 -------------------- -------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... 92,595 -- -- Realized gains (losses) on sale of investments......................... 192,052 (140) 17,885 -------------------- -------------------- -------------------- Net realized gains (losses)...... 284,647 (140) 17,885 -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments...................... 226,657 (21,981) 119,241 -------------------- -------------------- -------------------- Net realized and change in unrealized gains (losses) on investments...................... 511,304 (22,121) 137,126 -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations........... $ 512,902 $ (27,075) $ 140,594 ==================== ==================== ==================== PIONEER VCT IBBOTSON PIONEER VCT IBBOTSON PIONEER VCT GROWTH ALLOCATION MODERATE ALLOCATION MID CAP VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT --------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................. $ 347,071 $ 683,149 $ 485,690 --------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges............................. 275,205 380,909 744,843 Administrative charges................ 49,137 73,997 163,063 --------------------- -------------------- -------------------- Total expenses...................... 324,342 454,906 907,906 --------------------- -------------------- -------------------- Net investment income (loss)..... 22,729 228,243 (422,216) --------------------- -------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... -- -- -- Realized gains (losses) on sale of investments......................... 774,226 856,488 856,609 --------------------- -------------------- -------------------- Net realized gains (losses)...... 774,226 856,488 856,609 --------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments...................... 2,367,042 2,920,605 16,961,029 --------------------- -------------------- -------------------- Net realized and change in unrealized gains (losses) on investments...................... 3,141,268 3,777,093 17,817,638 --------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations........... $ 3,163,997 $ 4,005,336 $ 17,395,422 ===================== ==================== ==================== PIONEER VCT T. ROWE PRICE T. ROWE PRICE T. ROWE PRICE REAL ESTATE SHARES GROWTH STOCK INTERNATIONAL STOCK PRIME RESERVE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------- -------------------- -------------------- -------------------- INVESTMENT INCOME: Dividends............................. $ 5,332 $ 3,193 $ 6,278 $ 90 -------------------- -------------------- -------------------- -------------------- EXPENSES: Mortality and expense risk charges............................. 3,363 64,013 5,775 6,429 Administrative charges................ 610 -- -- -- -------------------- -------------------- -------------------- -------------------- Total expenses...................... 3,973 64,013 5,775 6,429 -------------------- -------------------- -------------------- -------------------- Net investment income (loss)..... 1,359 (60,820) 503 (6,339) -------------------- -------------------- -------------------- -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions........... 11,293 -- -- -- Realized gains (losses) on sale of investments......................... 6,764 357,589 10,324 -- -------------------- -------------------- -------------------- -------------------- Net realized gains (losses)...... 18,057 357,589 10,324 -- -------------------- -------------------- -------------------- -------------------- Change in unrealized gains (losses) on investments...................... (19,131) 2,047,793 71,247 -- -------------------- -------------------- -------------------- -------------------- Net realized and change in unrealized gains (losses) on investments...................... (1,074) 2,405,382 81,571 -- -------------------- -------------------- -------------------- -------------------- Net increase (decrease) in net assets resulting from operations........... $ 285 $ 2,344,562 $ 82,074 $ (6,339) ==================== ==================== ==================== ====================
(a) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 56 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 -- (CONCLUDED) FOR THE YEAR ENDED DECEMBER 31, 2013
UIF U.S. REAL ESTATE SUB-ACCOUNT -------------------- INVESTMENT INCOME: Dividends.............................................................................................. $ 1,095,338 -------------------- EXPENSES: Mortality and expense risk charges............................................................................................. 1,166,803 Administrative charges................................................................................. 251,502 -------------------- Total expenses...................................................................................... 1,418,305 -------------------- Net investment income (loss)...................................................................... (322,967) -------------------- NET REALIZED AND CHANGE IN UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Realized gain distributions............................................................................ -- Realized gains (losses) on sale of investments......................................................................................... (34,211) -------------------- Net realized gains (losses)....................................................................... (34,211) -------------------- Change in unrealized gains (losses) on investments...................................................................................... 392,749 -------------------- Net realized and change in unrealized gains (losses) on investments...................................................................................... 358,538 -------------------- Net increase (decrease) in net assets resulting from operations........................................................................... $ 35,571 ====================
(a) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 58 This page is intentionally left blank. METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
ALGER SMALL CAP GROWTH AMERICAN FUNDS BOND SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (795,350) $ (722,308) $ 718,730 $ 1,653,836 Net realized gains (losses).... 8,468,060 11,906,761 1,750,573 253,909 Change in unrealized gains (losses) on investments...... 8,688,799 (5,650,965) (7,601,790) 2,948,249 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 16,361,509 5,533,488 (5,132,487) 4,855,994 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 1,617,076 1,749,806 11,875,043 21,553,499 Net transfers (including fixed account)..................... (2,035,008) (2,146,454) 11,294,017 6,190,229 Contract charges............... (8,421) (8,644) (1,263,411) (1,049,405) Transfers for contract benefits and terminations............. (4,789,042) (4,042,118) (9,827,827) (9,034,568) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (5,215,395) (4,447,410) 12,077,822 17,659,755 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 11,146,114 1,086,078 6,945,335 22,515,749 NET ASSETS: Beginning of year.............. 52,626,085 51,540,007 139,213,016 116,697,267 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 63,772,199 $ 52,626,085 $ 146,158,351 $ 139,213,016 ================ ================ ================ ================ AMERICAN FUNDS AMERICAN FUNDS GLOBAL GROWTH GLOBAL SMALL CAPITALIZATION SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (526,928) $ (1,236,453) $ (549,405) $ (8,448) Net realized gains (losses).... 3,982,592 425,004 1,957,425 (334,212) Change in unrealized gains (losses) on investments...... 65,109,148 43,480,973 25,083,432 13,744,703 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 68,564,812 42,669,524 26,491,452 13,402,043 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 23,766,765 31,342,210 10,382,354 12,386,247 Net transfers (including fixed account)..................... (8,540,368) (1,972,607) (3,851,967) 1,926,520 Contract charges............... (2,337,645) (1,839,723) (874,487) (658,312) Transfers for contract benefits and terminations............. (17,922,689) (19,364,261) (6,349,695) (5,472,040) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (5,033,937) 8,165,619 (693,795) 8,182,415 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 63,530,875 50,835,143 25,797,657 21,584,458 NET ASSETS: Beginning of year.............. 251,295,328 200,460,185 98,386,346 76,801,888 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 314,826,203 $ 251,295,328 $ 124,184,003 $ 98,386,346 ================ ================ ================ ================ AMERICAN FUNDS GROWTH AMERICAN FUNDS GROWTH-INCOME SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (4,016,566) $ (4,250,325) $ (469,223) $ 406,074 Net realized gains (losses).... 16,990,100 1,880,290 6,900,940 800,760 Change in unrealized gains (losses) on investments...... 182,361,798 97,631,196 89,831,743 41,809,198 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 195,335,332 95,261,161 96,263,460 43,016,032 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 48,884,879 88,690,008 21,737,754 34,344,085 Net transfers (including fixed account)..................... (28,227,693) (11,631,864) (13,953,890) (9,765,377) Contract charges............... (6,793,715) (5,467,039) (2,765,946) (2,277,742) Transfers for contract benefits and terminations............. (49,304,587) (47,623,908) (25,784,839) (24,882,456) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (35,441,116) 23,967,197 (20,766,921) (2,581,490) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 159,894,216 119,228,358 75,496,539 40,434,542 NET ASSETS: Beginning of year.............. 696,665,988 577,437,630 312,823,451 272,388,909 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 856,560,204 $ 696,665,988 $ 388,319,990 $ 312,823,451 ================ ================ ================ ================ DWS I INTERNATIONAL SUB-ACCOUNT ----------------------------------- 2013 2012 ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 689,035 $ 135,664 Net realized gains (losses).... (490,812) (950,927) Change in unrealized gains (losses) on investments...... 2,799,643 3,633,463 ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 2,997,866 2,818,200 ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 653,441 815,123 Net transfers (including fixed account)..................... (612,834) (890,959) Contract charges............... (1,860) (2,073) Transfers for contract benefits and terminations............. (1,377,035) (1,466,360) ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (1,338,288) (1,544,269) ---------------- ---------------- Net increase (decrease) in net assets.............. 1,659,578 1,273,931 NET ASSETS: Beginning of year.............. 16,933,216 15,659,285 ---------------- ---------------- End of year.................... $ 18,592,794 $ 16,933,216 ================ ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 60 The accompanying notes are an integral part of these financial statements. 61 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED) FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
FEDERATED HIGH INCOME BOND FEDERATED KAUFMAN SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ----------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ 1,375 $ 2,033 $ (544) $ (620) Net realized gains (losses)..... -- (596) 3,616 3,375 Change in unrealized gains (losses) on investments....... (4) 1,882 9,524 5,499 ---------------- ---------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from operations............ 1,371 3,319 12,596 8,254 ---------------- ---------------- ---------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... -- -- -- -- Net transfers (including fixed account)...................... -- -- -- -- Contract charges................ -- -- -- -- Transfers for contract benefits and terminations.............. (113) (8,983) (1,113) (33,284) ---------------- ---------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions...... (113) (8,983) (1,113) (33,284) ---------------- ---------------- ---------------- ----------------- Net increase (decrease) in net assets.............. 1,258 (5,664) 11,483 (25,030) NET ASSETS: Beginning of year............... 24,908 30,572 33,424 58,454 ---------------- ---------------- ---------------- ----------------- End of year..................... $ 26,166 $ 24,908 $ 44,907 $ 33,424 ================ ================ ================ ================= FIDELITY VIP ASSET MANAGER FIDELITY VIP CONTRAFUND SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ----------------------------------- 2013 2012 2013 2012 ---------------- ----------------- ---------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ 166,950 $ 116,307 $ (1,697,392) $ (6,154) Net realized gains (losses)..... 806,245 304,655 11,601,258 2,083,421 Change in unrealized gains (losses) on investments....... 10,480,801 8,735,876 130,225,189 56,443,738 ---------------- ----------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from operations............ 11,453,996 9,156,838 140,129,055 58,521,005 ---------------- ----------------- ---------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 1,646,197 2,107,703 46,614,319 63,383,760 Net transfers (including fixed account)...................... (2,338,518) (3,535,616) (6,126,568) (8,285,062) Contract charges................ (12,381) (13,367) (2,923,183) (2,022,747) Transfers for contract benefits and terminations.............. (8,115,163) (9,146,543) (36,834,423) (29,010,195) ---------------- ----------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions...... (8,819,865) (10,587,823) 730,145 24,065,756 ---------------- ----------------- ---------------- ----------------- Net increase (decrease) in net assets.............. 2,634,131 (1,430,985) 140,859,200 82,586,761 NET ASSETS: Beginning of year............... 85,640,352 87,071,337 471,113,726 388,526,965 ---------------- ----------------- ---------------- ----------------- End of year..................... $ 88,274,483 $ 85,640,352 $ 611,972,926 $ 471,113,726 ================ ================= ================ ================= FIDELITY VIP EQUITY-INCOME FIDELITY VIP FUNDSMANAGER 50% SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ----------------------------------- 2013 2012 2013 2012 (a) ---------------- ----------------- ---------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ 58,439 $ 88,287 $ (5,248,600) $ 3,619,602 Net realized gains (losses)..... 367,626 240,155 10,771,735 1,127,805 Change in unrealized gains (losses) on investments....... 916,971 493,771 141,257,707 (985,620) ---------------- ----------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from operations............ 1,343,036 822,213 146,780,842 3,761,787 ---------------- ----------------- ---------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 24,011 21,089 -- 381,250 Net transfers (including fixed account)...................... (72,869) (148,657) 1,474,414,428 440,849,283 Contract charges................ -- -- -- -- Transfers for contract benefits and terminations.............. (862,819) (661,322) (31,224,567) (1,169,235) ---------------- ----------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions...... (911,677) (788,890) 1,443,189,861 440,061,298 ---------------- ----------------- ---------------- ----------------- Net increase (decrease) in net assets.............. 431,359 33,323 1,589,970,703 443,823,085 NET ASSETS: Beginning of year............... 5,523,241 5,489,918 443,823,085 -- ---------------- ----------------- ---------------- ----------------- End of year..................... $ 5,954,600 $ 5,523,241 $ 2,033,793,788 $ 443,823,085 ================ ================= ================ ================= FIDELITY VIP FUNDSMANAGER 60% SUB-ACCOUNT ---------------------------------- 2013 2012 ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ (31,238,110) $ (14,844,402) Net realized gains (losses)..... 171,159,819 16,912,548 Change in unrealized gains (losses) on investments....... 435,136,185 273,609,789 ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 575,057,894 275,677,935 ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 5,496,546 660,878 Net transfers (including fixed account)...................... -- 846,845,524 Contract charges................ -- -- Transfers for contract benefits and terminations.............. (145,663,704) (118,152,514) ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (140,167,158) 729,353,888 ---------------- ---------------- Net increase (decrease) in net assets.............. 434,890,736 1,005,031,823 NET ASSETS: Beginning of year............... 3,596,633,088 2,591,601,265 ---------------- ---------------- End of year..................... $ 4,031,523,824 $ 3,596,633,088 ================ ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 62 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, 2013 AND 2012
FIDELITY VIP GROWTH FIDELITY VIP INDEX 500 SUB-ACCOUNT SUB-ACCOUNT ------------------------------------ ----------------------------------- 2013 2012 2013 2012 ----------------- ----------------- ----------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ (1,579,739) $ (1,080,859) $ 325,124 $ 419,770 Net realized gains (losses)..... 4,112,179 1,666,126 2,857,955 1,679,198 Change in unrealized gains (losses) on investments....... 41,938,391 16,522,108 14,178,938 6,239,811 ----------------- ----------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 44,470,831 17,107,375 17,362,017 8,338,779 ----------------- ----------------- ----------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 3,349,924 4,112,950 -- -- Net transfers (including fixed account)...................... (5,049,310) (4,169,183) (2,603,865) (1,951,671) Contract charges................ (22,025) (23,334) (23,942) (24,093) Transfers for contract benefits and terminations.............. (13,580,293) (12,203,205) (6,041,583) (5,440,312) ----------------- ----------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (15,301,704) (12,282,772) (8,669,390) (7,416,076) ----------------- ----------------- ----------------- ---------------- Net increase (decrease) in net assets.............. 29,169,127 4,824,603 8,692,627 922,703 NET ASSETS: Beginning of year............... 136,799,312 131,974,709 60,984,620 60,061,917 ----------------- ----------------- ----------------- ---------------- End of year..................... $ 165,968,439 $ 136,799,312 $ 69,677,247 $ 60,984,620 ================= ================= ================= ================ FIDELITY VIP MID CAP FIDELITY VIP MONEY MARKET SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- -------------------------------------- 2013 2012 2013 2012 ---------------- ----------------- ------------------ ------------------ INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ (4,216,245) $ (2,734,101) $ (1,597,325) $ (1,393,275) Net realized gains (losses)..... 56,577,725 26,034,787 -- -- Change in unrealized gains (losses) on investments....... 61,592,202 9,833,446 -- -- ---------------- ----------------- ------------------ ------------------ Net increase (decrease) in net assets resulting from operations............ 113,953,682 33,134,132 (1,597,325) (1,393,275) ---------------- ----------------- ------------------ ------------------ CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 45,946,288 64,821,528 1,482,045,626 1,295,167,554 Net transfers (including fixed account)...................... (13,593,184) 8,880,545 (1,474,484,969) (1,289,660,954) Contract charges................ (3,645,078) (2,508,522) (3,153) (3,912) Transfers for contract benefits and terminations.............. (20,912,658) (17,196,292) (3,464,232) (3,518,646) ---------------- ----------------- ------------------ ------------------ Net increase (decrease) in net assets resulting from contract transactions...... 7,795,368 53,997,259 4,093,272 1,984,042 ---------------- ----------------- ------------------ ------------------ Net increase (decrease) in net assets.............. 121,749,050 87,131,391 2,495,947 590,767 NET ASSETS: Beginning of year............... 324,832,892 237,701,501 73,659,399 73,068,632 ---------------- ----------------- ------------------ ------------------ End of year..................... $ 446,581,942 $ 324,832,892 $ 76,155,346 $ 73,659,399 ================ ================= ================== ================== FIDELITY VIP OVERSEAS FTVIPT FRANKLIN INCOME SECURITIES SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ------------------------------------ 2013 2012 2013 2012 ---------------- ---------------- ----------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ 5,035 $ 35,712 $ 13,802,960 $ 11,781,681 Net realized gains (losses)..... 11,595 (91,435) 335,927 (143,328) Change in unrealized gains (losses) on investments....... 1,380,290 930,242 18,152,582 12,601,025 ---------------- ---------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from operations............ 1,396,920 874,519 32,291,469 24,239,378 ---------------- ---------------- ----------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 83,529 98,285 24,164,029 38,977,808 Net transfers (including fixed account)...................... (260,389) (2,174) 10,135,357 6,367,446 Contract charges................ (46) (60) (2,217,562) (1,667,113) Transfers for contract benefits and terminations.............. (535,530) (393,725) (19,716,164) (21,364,327) ---------------- ---------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions...... (712,436) (297,674) 12,365,660 22,313,814 ---------------- ---------------- ----------------- ----------------- Net increase (decrease) in net assets.............. 684,484 576,845 44,657,129 46,553,192 NET ASSETS: Beginning of year............... 5,241,037 4,664,192 253,164,341 206,611,149 ---------------- ---------------- ----------------- ----------------- End of year..................... $ 5,925,521 $ 5,241,037 $ 297,821,470 $ 253,164,341 ================ ================ ================= ================= FTVIPT FRANKLIN SMALL CAP VALUE SECURITIES SUB-ACCOUNT ---------------------------------- 2013 2012 ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ (24,107) $ (382,615) Net realized gains (losses)..... 3,335,986 82,294 Change in unrealized gains (losses) on investments....... 28,858,586 11,355,727 ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 32,170,465 11,055,406 ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 18,861,799 26,752,367 Net transfers (including fixed account)...................... (3,726,532) 831,747 Contract charges................ (1,067,656) (582,013) Transfers for contract benefits and terminations.............. (4,485,166) (2,467,131) ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 9,582,445 24,534,970 ---------------- ---------------- Net increase (decrease) in net assets.............. 41,752,910 35,590,376 NET ASSETS: Beginning of year............... 86,296,073 50,705,697 ---------------- ---------------- End of year..................... $ 128,048,983 $ 86,296,073 ================ ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 64 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, 2013 AND 2012
FTVIPT FTVIPT MUTUAL SHARES SECURITIES TEMPLETON FOREIGN SECURITIES SUB-ACCOUNT SUB-ACCOUNT ------------------------------------ ------------------------------------ 2013 2012 2013 2012 ----------------- ----------------- ----------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ 1,028,572 $ 828,209 $ 479,595 $ 905,498 Net realized gains (losses)...... 1,531,390 (351,542) 527,295 (666,651) Change in unrealized gains (losses) on investments........ 31,136,595 14,415,530 14,782,128 11,238,272 ----------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from operations............. 33,696,557 14,892,197 15,789,018 11,477,119 ----------------- ----------------- ----------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners........... 7,934,359 13,759,082 1,244,169 6,029,850 Net transfers (including fixed account)....................... (3,863,825) (3,146,458) (3,114,726) 396,235 Contract charges................. (1,093,363) (879,739) (910,114) (813,888) Transfers for contract benefits and terminations............... (10,375,719) (13,377,390) (6,075,431) (5,310,132) ----------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions....... (7,398,548) (3,644,505) (8,856,102) 302,065 ----------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets............... 26,298,009 11,247,692 6,932,916 11,779,184 NET ASSETS: Beginning of year................ 129,780,562 118,532,870 80,788,377 69,009,193 ----------------- ----------------- ----------------- ----------------- End of year...................... $ 156,078,571 $ 129,780,562 $ 87,721,293 $ 80,788,377 ================= ================= ================= ================= FTVIPT TEMPLETON GLOBAL BOND SECURITIES INVESCO V.I. AMERICAN FRANCHISE SUB-ACCOUNT SUB-ACCOUNT ------------------------------------ ------------------------------------ 2013 2012 2013 2012 ----------------- ----------------- ----------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ 8,251,988 $ 9,308,296 $ (1,401) $ (1,969) Net realized gains (losses)...... 2,892,611 305,792 4,184 4,261 Change in unrealized gains (losses) on investments........ (10,624,497) 12,966,460 44,589 5,620 ----------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from operations............. 520,102 22,580,548 47,372 7,912 ----------------- ----------------- ----------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners........... 31,796,531 55,695,235 -- 3 Net transfers (including fixed account)....................... 20,195,269 8,138,828 (8,489) 88,752 Contract charges................. (2,382,478) (1,598,059) -- -- Transfers for contract benefits and terminations............... (12,509,439) (7,739,164) (25,032) (36,838) ----------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions....... 37,099,883 54,496,840 (33,521) 51,917 ----------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets............... 37,619,985 77,077,388 13,851 59,829 NET ASSETS: Beginning of year................ 217,063,429 139,986,041 149,862 90,033 ----------------- ----------------- ----------------- ----------------- End of year...................... $ 254,683,414 $ 217,063,429 $ 163,713 $ 149,862 ================= ================= ================= ================= INVESCO V.I. AMERICAN VALUE INVESCO V.I. CORE EQUITY SUB-ACCOUNT SUB-ACCOUNT ------------------------------------ ------------------------------------- 2013 2012 2013 2012 ----------------- ----------------- ----------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ (653,068) $ (396,721) $ (90) $ (1,291) Net realized gains (losses)...... 1,362,452 295,908 11,977 9,182 Change in unrealized gains (losses) on investments........ 21,986,708 7,999,839 45,509 23,282 ----------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from operations............. 22,696,092 7,899,026 57,396 31,173 ----------------- ----------------- ----------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners........... 11,493,142 15,070,411 -- -- Net transfers (including fixed account)....................... (396,972) (474,558) (15,058) (21,186) Contract charges................. (814,387) (538,047) -- -- Transfers for contract benefits and terminations............... (4,366,942) (2,285,953) (33,651) (45,739) ----------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions....... 5,914,841 11,771,853 (48,709) (66,925) ----------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets............... 28,610,933 19,670,879 8,687 (35,752) NET ASSETS: Beginning of year................ 66,684,996 47,014,117 241,009 276,761 ----------------- ----------------- ----------------- ----------------- End of year...................... $ 95,295,929 $ 66,684,996 $ 249,696 $ 241,009 ================= ================= ================= ================= INVESCO V.I. EQUITY AND INCOME SUB-ACCOUNT ------------------------------------ 2013 2012 ----------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)..... $ 960,409 $ 2,132,881 Net realized gains (losses)...... 2,646,648 987,347 Change in unrealized gains (losses) on investments........ 115,194,853 43,230,491 ----------------- ----------------- Net increase (decrease) in net assets resulting from operations............. 118,801,910 46,350,719 ----------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners........... 67,597,697 83,668,907 Net transfers (including fixed account)....................... 8,022,603 (305,020) Contract charges................. (4,836,300) (3,578,432) Transfers for contract benefits and terminations............... (37,208,806) (43,547,842) ----------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions....... 33,575,194 36,237,613 ----------------- ----------------- Net increase (decrease) in net assets............... 152,377,104 82,588,332 NET ASSETS: Beginning of year................ 496,945,594 414,357,262 ----------------- ----------------- End of year...................... $ 649,322,698 $ 496,945,594 ================= =================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 66 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, 2013 AND 2012
INVESCO V.I. GLOBAL REAL ESTATE INVESCO V.I. GROWTH AND INCOME SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ----------------------------------- 2013 2012 2013 2012 ----------------- ---------------- ---------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ 738,755 $ (159,936) $ (188,424) $ (39,401) Net realized gains (losses)..... 251,182 14,912 5,964,860 215,131 Change in unrealized gains (losses) on investments....... (841,038) 4,220,926 81,951,879 27,777,291 ----------------- ---------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from operations............ 148,899 4,075,902 87,728,315 27,953,021 ----------------- ---------------- ---------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 6,235,134 6,088,001 41,201,557 55,614,326 Net transfers (including fixed account)...................... 1,699,930 615,737 (9,892,159) (3,884,258) Contract charges................ (265,363) (166,631) (3,013,438) (2,064,540) Transfers for contract benefits and terminations.............. (1,127,854) (777,696) (18,283,675) (15,726,767) ----------------- ---------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions...... 6,541,847 5,759,411 10,012,285 33,938,761 ----------------- ---------------- ---------------- ----------------- Net increase (decrease) in net assets.............. 6,690,746 9,835,313 97,740,600 61,891,782 NET ASSETS: Beginning of year............... 23,302,577 13,467,264 268,230,013 206,338,231 ----------------- ---------------- ---------------- ----------------- End of year..................... $ 29,993,323 $ 23,302,577 $ 365,970,613 $ 268,230,013 ================= ================ ================ ================= INVESCO V.I. INTERNATIONAL GROWTH JANUS ASPEN GLOBAL RESEARCH SUB-ACCOUNT SUB-ACCOUNT ------------------------------------ ------------------------------------ 2013 2012 2013 2012 ----------------- ----------------- ----------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ (636,105) $ 51,882 $ 21 $ 1 Net realized gains (losses)..... 1,305,822 76,597 120 9 Change in unrealized gains (losses) on investments....... 40,017,340 24,064,007 1,329 896 ----------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from operations............ 40,687,057 24,192,486 1,470 906 ----------------- ----------------- ----------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 29,193,980 45,143,565 -- -- Net transfers (including fixed account)...................... 6,799,837 6,206,236 -- -- Contract charges................ (2,450,016) (1,751,462) -- -- Transfers for contract benefits and terminations.............. (12,015,352) (8,106,175) (375) (3) ----------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions...... 21,528,449 41,492,164 (375) (3) ----------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets.............. 62,215,506 65,684,650 1,095 903 NET ASSETS: Beginning of year............... 219,783,700 154,099,050 5,653 4,750 ----------------- ----------------- ----------------- ----------------- End of year..................... $ 281,999,206 $ 219,783,700 $ 6,748 $ 5,653 ================= ================= ================= ================= LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE VARIABLE AGGRESSIVE GROWTH VARIABLE ALL CAP VALUE SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ------------------------------------ 2013 2012 2013 2012 ---------------- ---------------- ---------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ (2,728,091) $ (1,863,351) $ (34,365) $ 271,873 Net realized gains (losses)..... 17,861,500 9,957,799 10,192,766 (234,300) Change in unrealized gains (losses) on investments....... 71,695,365 19,162,336 20,675,928 12,653,901 ---------------- ---------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from operations............ 86,828,774 27,256,784 30,834,329 12,691,474 ---------------- ---------------- ---------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 26,964,170 26,101,454 7,542,551 10,482,501 Net transfers (including fixed account)...................... (1,165,621) (5,078,294) (2,438,406) (1,374,496) Contract charges................ (1,696,014) (1,164,246) (733,083) (563,153) Transfers for contract benefits and terminations.............. (17,174,971) (20,966,057) (10,398,584) (12,507,706) ---------------- ---------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions...... 6,927,564 (1,107,143) (6,027,522) (3,962,854) ---------------- ---------------- ---------------- ----------------- Net increase (decrease) in net assets.............. 93,756,338 26,149,641 24,806,807 8,728,620 NET ASSETS: Beginning of year............... 186,988,862 160,839,221 104,446,756 95,718,136 ---------------- ---------------- ---------------- ----------------- End of year..................... $ 280,745,200 $ 186,988,862 $ 129,253,563 $ 104,446,756 ================ ================ ================ ================= LMPVET CLEARBRIDGE VARIABLE APPRECIATION SUB-ACCOUNT ----------------------------------- 2013 2012 ---------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ (340,789) $ 877,895 Net realized gains (losses)..... 13,852,622 276,468 Change in unrealized gains (losses) on investments....... 72,638,328 32,185,472 ---------------- ----------------- Net increase (decrease) in net assets resulting from operations............ 86,150,161 33,339,835 ---------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 47,967,753 57,982,645 Net transfers (including fixed account)...................... 4,628,653 (4,101,720) Contract charges................ (3,067,660) (2,128,567) Transfers for contract benefits and terminations.............. (20,584,065) (19,581,184) ---------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions...... 28,944,681 32,171,174 ---------------- ----------------- Net increase (decrease) in net assets.............. 115,094,842 65,511,009 NET ASSETS: Beginning of year............... 290,191,379 224,680,370 ---------------- ----------------- End of year..................... $ 405,286,221 $ 290,191,379 ================ =================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 68 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, 2013 AND 2012
LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE VARIABLE EQUITY INCOME VARIABLE LARGE CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 427,485 $ 1,935,990 $ (58,170) $ (51,981) Net realized gains (losses).... 646,901 (1,496,446) 745,423 481,453 Change in unrealized gains (losses) on investments...... 33,452,314 13,043,194 710,461 353,548 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 34,526,700 13,482,738 1,397,714 783,020 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 27,050,110 30,792,673 648 1,459 Net transfers (including fixed account)..................... 8,008,781 2,474,161 (33,103) (256,108) Contract charges............... (1,307,320) (777,353) (17,152) (18,887) Transfers for contract benefits and terminations............. (12,039,748) (14,363,944) (647,971) (871,026) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 21,711,823 18,125,537 (697,578) (1,144,562) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 56,238,523 31,608,275 700,136 (361,542) NET ASSETS: Beginning of year.............. 134,931,130 103,322,855 4,312,254 4,673,796 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 191,169,653 $ 134,931,130 $ 5,012,390 $ 4,312,254 ================ ================ ================ ================ LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE VARIABLE LARGE CAP VALUE VARIABLE SMALL CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ---------------------------------- 2013 2012 2013 2012 ----------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 1,148 $ 27,751 $ (1,235,439) $ (568,565) Net realized gains (losses).... 466,613 50,468 8,864,593 3,154,639 Change in unrealized gains (losses) on investments...... 1,056,824 510,271 24,881,277 5,466,771 ----------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 1,524,585 588,490 32,510,431 8,052,845 ----------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 282,593 573,803 16,380,155 16,257,772 Net transfers (including fixed account)..................... 813,486 285,926 3,443,300 1,590,977 Contract charges............... (46,356) (36,742) (824,479) (481,813) Transfers for contract benefits and terminations............. (424,843) (504,347) (3,891,881) (3,103,064) ----------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 624,880 318,640 15,107,095 14,263,872 ----------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 2,149,465 907,130 47,617,526 22,316,717 NET ASSETS: Beginning of year.............. 4,743,489 3,836,359 64,881,494 42,564,777 ----------------- ---------------- ---------------- ---------------- End of year.................... $ 6,892,954 $ 4,743,489 $ 112,499,020 $ 64,881,494 ================= ================ ================ ================ LMPVET INVESTMENT LMPVET COUNSEL VARIABLE SOCIAL AWARENESS VARIABLE LIFESTYLE ALLOCATION 50% SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ----------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (2,213) $ (2,313) $ 335,965 $ 451,589 Net realized gains (losses).... 8,209 18,868 294,643 110,528 Change in unrealized gains (losses) on investments...... 39,556 26,419 4,402,903 2,456,921 ---------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 45,552 42,974 5,033,511 3,019,038 ---------------- ----------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... -- -- 6,821,630 6,963,572 Net transfers (including fixed account)..................... 9,338 (49,856) 3,040,842 1,186,938 Contract charges............... (130) (173) (323,071) (208,041) Transfers for contract benefits and terminations............. (51,803) (204,989) (3,091,539) (2,607,174) ---------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (42,595) (255,018) 6,447,862 5,335,295 ---------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 2,957 (212,044) 11,481,373 8,354,333 NET ASSETS: Beginning of year.............. 289,329 501,373 32,620,028 24,265,695 ---------------- ----------------- ---------------- ---------------- End of year.................... $ 292,286 $ 289,329 $ 44,101,401 $ 32,620,028 ================ ================= ================ ================ LMPVET VARIABLE LIFESTYLE ALLOCATION 70% SUB-ACCOUNT ---------------------------------- 2013 2012 ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (5,215) $ 16,093 Net realized gains (losses).... 164,204 48,643 Change in unrealized gains (losses) on investments...... 307,412 296,816 ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 466,401 361,552 ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 120 3,120 Net transfers (including fixed account)..................... 208,852 (27,315) Contract charges............... (702) (796) Transfers for contract benefits and terminations............. (943,181) (849,995) ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (734,911) (874,986) ---------------- ---------------- Net increase (decrease) in net assets.............. (268,510) (513,434) NET ASSETS: Beginning of year.............. 2,573,509 3,086,943 ---------------- ---------------- End of year.................... $ 2,304,999 $ 2,573,509 ================ ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 70 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, 2013 AND 2012
LMPVET LMPVIT WESTERN ASSET VARIABLE LIFESTYLE ALLOCATION 85% VARIABLE GLOBAL HIGH YIELD BOND SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ----------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ 265,832 $ 362,338 $ 4,754,059 $ 5,165,628 Net realized gains (losses)..... 1,739,917 528,492 97,460 (68,307) Change in unrealized gains (losses) on investments....... 17,385,552 8,931,921 (303,455) 7,182,092 ---------------- ---------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from operations............ 19,391,301 9,822,751 4,548,064 12,279,413 ---------------- ---------------- ---------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 3,896,642 8,807,329 12,043,147 15,538,183 Net transfers (including fixed account)...................... (70,391) (793,785) 6,173,096 4,005,384 Contract charges................ (739,142) (611,650) (741,652) (516,554) Transfers for contract benefits and terminations.............. (7,221,465) (3,286,778) (9,054,116) (9,252,417) ---------------- ---------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions...... (4,134,356) 4,115,116 8,420,475 9,774,596 ---------------- ---------------- ---------------- ----------------- Net increase (decrease) in net assets.............. 15,256,945 13,937,867 12,968,539 22,054,009 NET ASSETS: Beginning of year............... 79,817,339 65,879,472 91,771,912 69,717,903 ---------------- ---------------- ---------------- ----------------- End of year..................... $ 95,074,284 $ 79,817,339 $ 104,740,451 $ 91,771,912 ================ ================ ================ ================= MFS VIT MFS VIT INVESTORS TRUST NEW DISCOVERY SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ----------------------------------- 2013 2012 2013 2012 ---------------- ----------------- ---------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ (69) $ (190) $ (581) $ (602) Net realized gains (losses)..... 292 2,707 2,006 4,349 Change in unrealized gains (losses) on investments....... 5,877 2,028 12,769 3,991 ---------------- ----------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from operations............ 6,100 4,545 14,194 7,738 ---------------- ----------------- ---------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... -- -- -- -- Net transfers (including fixed account)...................... -- -- -- -- Contract charges................ -- -- -- -- Transfers for contract benefits and terminations.............. (637) (18,051) (9,835) (7,451) ---------------- ----------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions...... (637) (18,051) (9,835) (7,451) ---------------- ----------------- ---------------- ----------------- Net increase (decrease) in net assets.............. 5,463 (13,506) 4,359 287 NET ASSETS: Beginning of year............... 20,488 33,994 41,661 41,374 ---------------- ----------------- ---------------- ----------------- End of year..................... $ 25,951 $ 20,488 $ 46,020 $ 41,661 ================ ================= ================ ================= MIST ALLIANCEBERNSTEIN MFS VIT RESEARCH GLOBAL DYNAMIC ALLOCATION SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ----------------------------------- 2013 2012 2013 2012 ---------------- ----------------- ---------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ (610) $ (299) $ (4,610,871) $ (31,735,651) Net realized gains (losses)..... 1,133 603 73,047,817 68,339 Change in unrealized gains (losses) on investments....... 14,560 6,684 213,779,983 215,787,760 ---------------- ----------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from operations............ 15,083 6,988 282,216,929 184,120,448 ---------------- ----------------- ---------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... -- -- 248,776,609 748,915,629 Net transfers (including fixed account)...................... -- -- 93,377,580 331,990,410 Contract charges................ -- -- (43,781,572) (28,058,490) Transfers for contract benefits and terminations.............. (1,403) (1,975) (90,758,771) (52,503,657) ---------------- ----------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions...... (1,403) (1,975) 207,613,846 1,000,343,892 ---------------- ----------------- ---------------- ----------------- Net increase (decrease) in net assets.............. 13,680 5,013 489,830,775 1,184,464,340 NET ASSETS: Beginning of year............... 50,155 45,142 2,823,843,417 1,639,379,077 ---------------- ----------------- ---------------- ----------------- End of year..................... $ 63,835 $ 50,155 $ 3,313,674,192 $ 2,823,843,417 ================ ================= ================ ================= MIST AMERICAN FUNDS BALANCED ALLOCATION SUB-ACCOUNT ---------------------------------- 2013 2012 ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ (5,388,861) $ 4,444,113 Net realized gains (losses)..... 250,625,904 60,128,154 Change in unrealized gains (losses) on investments....... 260,897,780 273,656,262 ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 506,134,823 338,228,529 ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 29,549,572 83,164,894 Net transfers (including fixed account)...................... (8,307,267) (60,456,373) Contract charges................ (37,993,157) (37,328,286) Transfers for contract benefits and terminations.............. (165,057,262) (132,325,623) ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (181,808,114) (146,945,388) ---------------- ---------------- Net increase (decrease) in net assets.............. 324,326,709 191,283,141 NET ASSETS: Beginning of year............... 3,106,060,329 2,914,777,188 ---------------- ---------------- End of year..................... $ 3,430,387,038 $ 3,106,060,329 ================ ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 72 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, 2013 AND 2012
MIST MIST AMERICAN FUNDS GROWTH ALLOCATION AMERICAN FUNDS GROWTH SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (9,394,519) $ (5,413,271) $ (6,517,995) $ (6,868,206) Net realized gains (losses).... 121,285,044 26,669,090 55,767,296 20,415,943 Change in unrealized gains (losses) on investments...... 233,109,626 175,144,743 96,031,643 67,309,082 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 345,000,151 196,400,562 145,280,944 80,856,819 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 19,707,302 52,400,148 14,629,823 17,133,976 Net transfers (including fixed account)..................... 66,168,229 (72,570,860) (37,937,636) (78,467,843) Contract charges............... (16,411,723) (15,855,986) (6,691,159) (6,678,966) Transfers for contract benefits and terminations............. (82,807,176) (62,098,994) (28,561,135) (20,470,993) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (13,343,368) (98,125,692) (58,560,107) (88,483,826) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 331,656,783 98,274,870 86,720,837 (7,627,007) NET ASSETS: Beginning of year.............. 1,496,665,592 1,398,390,722 545,665,799 553,292,806 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 1,828,322,375 $ 1,496,665,592 $ 632,386,636 $ 545,665,799 ================ ================ ================ ================ MIST MIST AMERICAN FUNDS MODERATE ALLOCATION AQR GLOBAL RISK BALANCED SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ----------------------------------- 2013 2012 2013 2012 --------------- --------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 2,016,609 $ 8,663,944 $ 24,454,360 $ (29,485,494) Net realized gains (losses).... 119,968,172 39,154,321 131,410,280 13,924,436 Change in unrealized gains (losses) on investments...... 74,888,275 103,394,103 (347,099,092) 257,592,013 --------------- --------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 196,873,056 151,212,368 (191,234,452) 242,030,955 --------------- --------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 17,989,884 43,856,551 299,929,057 1,010,258,029 Net transfers (including fixed account)..................... (30,931,042) (43,601,001) (449,932,361) 701,135,494 Contract charges............... (21,278,076) (21,439,772) (50,307,360) (34,472,373) Transfers for contract benefits and terminations............. (100,612,790) (79,167,097) (113,288,370) (63,766,725) --------------- --------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (134,832,024) (100,351,319) (313,599,034) 1,613,154,425 --------------- --------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 62,041,032 50,861,049 (504,833,486) 1,855,185,380 NET ASSETS: Beginning of year.............. 1,734,325,945 1,683,464,896 3,753,309,463 1,898,124,083 --------------- --------------- ---------------- ---------------- End of year.................... $ 1,796,366,977 $ 1,734,325,945 $ 3,248,475,977 $ 3,753,309,463 =============== =============== ================ ================ MIST MIST BLACKROCK GLOBAL TACTICAL STRATEGIES BLACKROCK HIGH YIELD SUB-ACCOUNT SUB-ACCOUNT ------------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (3,617,558) $ (58,135,263) $ 14,596,196 $ 13,623,467 Net realized gains (losses).... 133,255,577 130,203 9,642,339 5,023,228 Change in unrealized gains (losses) on investments...... 311,060,284 341,923,540 (4,631,091) 14,564,761 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 440,698,303 283,918,480 19,607,444 33,211,456 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 411,567,881 1,312,263,362 13,943,237 20,947,935 Net transfers (including fixed account)..................... (28,640,096) 557,379,957 (26,718,376) 17,699,162 Contract charges............... (73,176,143) (48,022,451) (2,612,849) (2,591,456) Transfers for contract benefits and terminations............. (149,396,119) (91,426,698) (16,046,952) (13,914,636) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 160,355,523 1,730,194,170 (31,434,940) 22,141,005 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 601,053,826 2,014,112,650 (11,827,496) 55,352,461 NET ASSETS: Beginning of year.............. 4,856,824,935 2,842,712,285 276,977,302 221,624,841 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 5,457,878,761 $ 4,856,824,935 $ 265,149,806 $ 276,977,302 ================ ================ ================ ================ MIST BLACKROCK LARGE CAP CORE SUB-ACCOUNT ---------------------------------- 2013 2012 ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (69,719) $ (98,467) Net realized gains (losses).... 843,040 204,327 Change in unrealized gains (losses) on investments...... 3,552,916 1,366,663 ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 4,326,237 1,472,523 ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 654,278 2,809,895 Net transfers (including fixed account)..................... (847,332) (1,633,705) Contract charges............... (180,167) (169,775) Transfers for contract benefits and terminations............. (1,522,513) (889,640) ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (1,895,734) 116,775 ---------------- ---------------- Net increase (decrease) in net assets.............. 2,430,503 1,589,298 NET ASSETS: Beginning of year.............. 14,439,147 12,849,849 ---------------- ---------------- End of year.................... $ 16,869,650 $ 14,439,147 ================ ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 74 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, 2013 AND 2012
MIST MIST CLARION GLOBAL REAL ESTATE CLEARBRIDGE AGGRESSIVE GROWTH II SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ----------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ----------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 9,853,299 $ 648,569 $ (1,006,117) $ (1,256,766) Net realized gains (losses).... (92,999) (1,249,413) 5,873,060 1,264,699 Change in unrealized gains (losses) on investments...... (6,455,197) 35,559,210 19,911,595 14,507,523 ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 3,305,103 34,958,366 24,778,538 14,515,456 ---------------- ---------------- ----------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 1,804,117 7,794,423 1,347,767 4,262,148 Net transfers (including fixed account)..................... 14,576,022 (2,227,782) (5,985,835) 25,557,583 Contract charges............... (1,769,594) (1,587,295) (1,164,663) (1,131,367) Transfers for contract benefits and terminations............. (12,559,683) (9,066,811) (6,729,962) (5,149,785) ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 2,050,862 (5,087,465) (12,532,693) 23,538,579 ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets.............. 5,355,965 29,870,901 12,245,845 38,054,035 NET ASSETS: Beginning of year.............. 177,317,957 147,447,056 106,823,115 68,769,080 ---------------- ---------------- ----------------- ---------------- End of year.................... $ 182,673,922 $ 177,317,957 $ 119,068,960 $ 106,823,115 ================ ================ ================= ================ MIST MIST CLEARBRIDGE AGGRESSIVE GROWTH GOLDMAN SACHS MID CAP VALUE SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ----------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ----------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (5,039,430) $ (4,519,479) $ (1,173,155) $ (1,395,190) Net realized gains (losses).... 11,473,473 4,996,289 12,013,375 565,819 Change in unrealized gains (losses) on investments...... 123,052,679 43,727,000 31,704,368 21,341,212 ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 129,486,722 44,203,810 42,544,588 20,511,841 ---------------- ---------------- ----------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 5,418,106 8,612,510 1,260,840 2,591,780 Net transfers (including fixed account)..................... 52,077,391 (6,817,243) 158,750 (5,769,122) Contract charges............... (3,110,264) (2,555,203) (1,323,450) (1,125,130) Transfers for contract benefits and terminations............. (25,033,154) (16,051,172) (11,814,121) (7,693,862) ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 29,352,079 (16,811,108) (11,717,981) (11,996,334) ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets.............. 158,838,801 27,392,702 30,826,607 8,515,507 NET ASSETS: Beginning of year.............. 292,871,764 265,479,062 139,211,779 130,696,272 ---------------- ---------------- ----------------- ---------------- End of year.................... $ 451,710,565 $ 292,871,764 $ 170,038,386 $ 139,211,779 ================ ================ ================= ================ MIST MIST HARRIS OAKMARK INTERNATIONAL INVESCO BALANCED-RISK ALLOCATION SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ----------------------------------- 2013 2012 2013 2012 (b) ---------------- ----------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 5,201,015 $ 91,453 $ (12,158,692) $ (1,415,511) Net realized gains (losses).... 11,702,177 (1,430,384) 10,077,015 6,907,824 Change in unrealized gains (losses) on investments...... 134,182,838 121,937,845 4,078,692 10,868,519 ---------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 151,086,030 120,598,914 1,997,015 16,360,832 ---------------- ----------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 17,704,175 17,848,721 168,173,765 338,086,548 Net transfers (including fixed account)..................... 27,865,479 (30,313,737) 45,607,989 313,044,735 Contract charges............... (5,353,619) (4,604,462) (10,692,799) (1,295,053) Transfers for contract benefits and terminations............. (36,258,075) (26,450,720) (23,347,690) (4,774,645) ---------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 3,957,960 (43,520,198) 179,741,265 645,061,585 ---------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 155,043,990 77,078,716 181,738,280 661,422,417 NET ASSETS: Beginning of year.............. 538,939,254 461,860,538 661,422,417 -- ---------------- ----------------- ---------------- ---------------- End of year.................... $ 693,983,244 $ 538,939,254 $ 843,160,697 $ 661,422,417 ================ ================= ================ ================ MIST INVESCO COMSTOCK SUB-ACCOUNT ----------------------------------- 2013 2012 ----------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (1,674,772) $ (729,855) Net realized gains (losses).... 9,703,108 5,346,575 Change in unrealized gains (losses) on investments...... 101,696,056 43,146,332 ----------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 109,724,392 47,763,052 ----------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 20,478,377 22,458,903 Net transfers (including fixed account)..................... 11,030,539 19,211,409 Contract charges............... (3,417,107) (2,706,893) Transfers for contract benefits and terminations............. (23,713,080) (23,731,077) ----------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 4,378,729 15,232,342 ----------------- ---------------- Net increase (decrease) in net assets.............. 114,103,121 62,995,394 NET ASSETS: Beginning of year.............. 329,458,802 266,463,408 ----------------- ---------------- End of year.................... $ 443,561,923 $ 329,458,802 ================= ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 76 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, 2013 AND 2012
MIST INVESCO MID CAP VALUE MIST INVESCO SMALL CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (1,314,553) $ (1,633,191) $ (3,674,573) $ (3,709,725) Net realized gains (losses).... 7,722,920 2,663,619 24,585,422 18,783,431 Change in unrealized gains (losses) on investments...... 30,620,411 15,199,656 67,501,884 19,533,978 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 37,028,778 16,230,084 88,412,733 34,607,684 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 2,155,363 6,093,408 10,016,335 15,838,800 Net transfers (including fixed account)..................... (10,011,007) (3,393,066) 1,587,973 (5,702,899) Contract charges............... (1,678,656) (1,548,008) (2,269,655) (1,966,440) Transfers for contract benefits and terminations............. (7,603,595) (6,237,615) (19,026,821) (14,981,160) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (17,137,895) (5,085,281) (9,692,168) (6,811,699) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 19,890,883 11,144,803 78,720,565 27,795,985 NET ASSETS: Beginning of year.............. 138,149,492 127,004,689 240,468,780 212,672,795 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 158,040,375 $ 138,149,492 $ 319,189,345 $ 240,468,780 ================ ================ ================ ================ MIST MIST JPMORGAN CORE BOND JPMORGAN GLOBAL ACTIVE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ----------------------------------- 2013 2012 2013 2012 (b) ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (4,238,910) $ 3,581,213 $ (6,934,561) $ (253,669) Net realized gains (losses).... 24,886,829 5,226,825 2,430,024 1,691,655 Change in unrealized gains (losses) on investments...... (36,171,178) 2,725,888 53,369,009 7,508,587 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ (15,523,259) 11,533,926 48,864,472 8,946,573 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 2,386,585 8,908,512 122,948,435 187,365,819 Net transfers (including fixed account)..................... 1,463,200 (2,442,719) 313,227,408 88,135,164 Contract charges............... (3,775,856) (4,085,255) (6,988,131) (274,498) Transfers for contract benefits and terminations............. (19,173,185) (16,768,257) (13,774,602) (1,600,923) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (19,099,256) (14,387,719) 415,413,110 273,625,562 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. (34,622,515) (2,853,793) 464,277,582 282,572,135 NET ASSETS: Beginning of year.............. 346,492,447 349,346,240 282,572,135 -- ---------------- ---------------- ---------------- ---------------- End of year.................... $ 311,869,932 $ 346,492,447 $ 746,849,717 $ 282,572,135 ================ ================ ================ ================ MIST JPMORGAN SMALL CAP VALUE MIST LOOMIS SAYLES GLOBAL MARKETS SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- --------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (280,527) $ (218,746) $ 1,519,876 $ 1,268,388 Net realized gains (losses).... 1,241,336 283,760 5,872,725 2,390,289 Change in unrealized gains (losses) on investments...... 6,048,540 2,823,277 18,236,473 20,641,146 ---------------- ---------------- ---------------- --------------- Net increase (decrease) in net assets resulting from operations............ 7,009,349 2,888,291 25,629,074 24,299,823 ---------------- ---------------- ---------------- --------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 370,757 2,194,628 2,604,900 5,861,547 Net transfers (including fixed account)..................... (1,450,951) (541,359) (13,383,801) (8,628,678) Contract charges............... (290,764) (250,601) (1,759,667) (1,759,286) Transfers for contract benefits and terminations............. (1,786,801) (1,500,264) (10,275,135) (7,011,203) ---------------- ---------------- ---------------- --------------- Net increase (decrease) in net assets resulting from contract transactions...... (3,157,759) (97,596) (22,813,703) (11,537,620) ---------------- ---------------- ---------------- --------------- Net increase (decrease) in net assets.............. 3,851,590 2,790,695 2,815,371 12,762,203 NET ASSETS: Beginning of year.............. 24,014,976 21,224,281 177,780,410 165,018,207 ---------------- ---------------- ---------------- --------------- End of year.................... $ 27,866,566 $ 24,014,976 $ 180,595,781 $ 177,780,410 ================ ================ ================ =============== MIST LORD ABBETT BOND DEBENTURE SUB-ACCOUNT ---------------------------------- 2013 2012 ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 12,964,602 $ 14,699,205 Net realized gains (losses).... 4,166,635 1,754,535 Change in unrealized gains (losses) on investments...... (1,363,498) 11,202,166 ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 15,767,739 27,655,906 ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 2,945,951 4,758,094 Net transfers (including fixed account)..................... 3,690,479 2,066,753 Contract charges............... (1,551,965) (1,668,326) Transfers for contract benefits and terminations............. (27,568,008) (21,909,684) ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (22,483,543) (16,753,163) ---------------- ---------------- Net increase (decrease) in net assets.............. (6,715,804) 10,902,743 NET ASSETS: Beginning of year.............. 266,010,291 255,107,548 ---------------- ---------------- End of year.................... $ 259,294,487 $ 266,010,291 ================ ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 78 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, 2013 AND 2012
MIST MET/FRANKLIN MIST MET/EATON VANCE FLOATING RATE LOW DURATION TOTAL RETURN SUB-ACCOUNT SUB-ACCOUNT ------------------------------------ ----------------------------------- 2013 2012 2013 2012 ----------------- ---------------- ----------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ 1,167,863 $ 893,371 $ (409,213) $ 118,242 Net realized gains (losses)..... 371,454 215,912 31,429 24,752 Change in unrealized gains (losses) on investments....... (202,111) 1,524,996 351,282 737,426 ----------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 1,337,206 2,634,279 (26,502) 880,420 ----------------- ---------------- ----------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 1,243,464 3,005,201 2,247,876 2,001,148 Net transfers (including fixed account)...................... 31,075,652 7,696,712 100,397,861 15,509,501 Contract charges................ (606,811) (455,891) (860,351) (372,941) Transfers for contract benefits and terminations.............. (4,130,678) (2,380,066) (5,061,682) (2,070,016) ----------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 27,581,627 7,865,956 96,723,704 15,067,692 ----------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets.............. 28,918,833 10,500,235 96,697,202 15,948,112 NET ASSETS: Beginning of year............... 54,197,004 43,696,769 43,609,944 27,661,832 ----------------- ---------------- ----------------- ---------------- End of year..................... $ 83,115,837 $ 54,197,004 $ 140,307,146 $ 43,609,944 ================= ================ ================= ================ MIST MET/TEMPLETON INTERNATIONAL BOND MIST METLIFE AGGRESSIVE STRATEGY SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ----------------------------------- 2013 2012 2013 2012 ----------------- ---------------- ----------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ 276,907 $ 4,814,452 $ (5,162,875) $ (5,348,850) Net realized gains (losses)..... 98,819 (394,426) 8,803,988 (2,155,955) Change in unrealized gains (losses) on investments....... (752,953) 1,944,505 141,558,132 83,183,465 ----------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from operations............ (377,227) 6,364,531 145,199,245 75,678,660 ----------------- ---------------- ----------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 293,635 1,816,115 6,117,615 14,730,577 Net transfers (including fixed account)...................... (1,527,452) 274,897 344,230 (36,687,365) Contract charges................ (704,031) (735,731) (4,668,056) (4,564,800) Transfers for contract benefits and terminations.............. (2,400,039) (1,811,827) (32,065,600) (28,804,866) ----------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (4,337,887) (456,546) (30,271,811) (55,326,454) ----------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets.............. (4,715,114) 5,907,985 114,927,434 20,352,206 NET ASSETS: Beginning of year............... 57,001,253 51,093,268 545,044,070 524,691,864 ----------------- ---------------- ----------------- ---------------- End of year..................... $ 52,286,139 $ 57,001,253 $ 659,971,504 $ 545,044,070 ================= ================ ================= ================ MIST METLIFE BALANCED PLUS MIST METLIFE BALANCED STRATEGY SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ----------------------------------- 2013 2012 2013 2012 ----------------- ---------------- ----------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ (12,169,666) $ (51,515,645) $ 32,102,742 $ 38,994,505 Net realized gains (losses)..... 109,386,034 -- 83,827,637 19,597,212 Change in unrealized gains (losses) on investments....... 560,925,735 424,121,430 1,085,370,764 737,960,714 ----------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 658,142,103 372,605,785 1,201,301,143 796,552,431 ----------------- ---------------- ----------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 512,612,376 1,251,910,858 64,210,282 148,711,444 Net transfers (including fixed account)...................... 934,128,079 686,159,234 24,844,873 (193,862,187) Contract charges................ (75,280,741) (42,151,548) (69,900,438) (70,278,541) Transfers for contract benefits and terminations.............. (168,084,256) (87,089,575) (454,179,016) (399,975,900) ----------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 1,203,375,458 1,808,828,969 (435,024,299) (515,405,184) ----------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets.............. 1,861,517,561 2,181,434,754 766,276,844 281,147,247 NET ASSETS: Beginning of year............... 4,593,209,415 2,411,774,661 7,045,806,333 6,764,659,086 ----------------- ---------------- ----------------- ---------------- End of year..................... $ 6,454,726,976 $ 4,593,209,415 $ 7,812,083,177 $ 7,045,806,333 ================= ================ ================= ================ MIST METLIFE DEFENSIVE STRATEGY SUB-ACCOUNT ----------------------------------- 2013 2012 ---------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ 31,247,477 $ 27,979,016 Net realized gains (losses)..... 114,843,713 40,608,351 Change in unrealized gains (losses) on investments....... 8,150,548 131,200,155 ---------------- ----------------- Net increase (decrease) in net assets resulting from operations............ 154,241,738 199,787,522 ---------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 15,258,041 43,475,387 Net transfers (including fixed account)...................... (342,355,184) 24,870,720 Contract charges................ (21,496,345) (22,681,295) Transfers for contract benefits and terminations.............. (165,714,842) (141,326,271) ---------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions...... (514,308,330) (95,661,459) ---------------- ----------------- Net increase (decrease) in net assets.............. (360,066,592) 104,126,063 NET ASSETS: Beginning of year............... 2,332,865,728 2,228,739,665 ---------------- ----------------- End of year..................... $ 1,972,799,136 $ 2,332,865,728 ================ =================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 80 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, 2013 AND 2012
MIST METLIFE GROWTH STRATEGY MIST METLIFE MODERATE STRATEGY SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (12,655,471) $ 1,381,851 $ 28,607,761 $ 37,131,263 Net realized gains (losses).... 48,996,687 (22,087,133) 60,925,288 22,204,509 Change in unrealized gains (losses) on investments...... 1,250,387,461 680,222,228 327,287,238 287,329,954 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 1,286,728,677 659,516,946 416,820,287 346,665,726 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 50,551,717 108,087,013 27,247,167 69,079,528 Net transfers (including fixed account)..................... 738,063,707 (246,783,276) (46,175,969) (27,530,545) Contract charges............... (53,238,434) (48,638,262) (35,004,574) (35,285,870) Transfers for contract benefits and terminations............. (370,695,161) (283,004,290) (214,831,807) (193,516,590) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 364,681,829 (470,338,815) (268,765,183) (187,253,477) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 1,651,410,506 189,178,131 148,055,104 159,412,249 NET ASSETS: Beginning of year.............. 5,115,649,012 4,926,470,881 3,483,723,904 3,324,311,655 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 6,767,059,518 $ 5,115,649,012 $ 3,631,779,008 $ 3,483,723,904 ================ ================ ================ ================ MIST METLIFE MULTI-INDEX TARGETED RISK MIST MFS EMERGING MARKETS EQUITY SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 (c) 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (699,118) $ (7,978) $ (2,103,697) $ (3,386,337) Net realized gains (losses).... 3,617,087 -- 1,835,792 1,870,263 Change in unrealized gains (losses) on investments...... 7,257,662 89,193 (28,154,915) 66,406,442 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 10,175,631 81,215 (28,422,820) 64,890,368 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 48,451,797 10,581,513 18,621,868 37,141,675 Net transfers (including fixed account)..................... 142,884,678 585,564 44,696,703 (611,099) Contract charges............... (796,188) -- (4,647,330) (4,426,432) Transfers for contract benefits and terminations............. (2,006,845) (313) (22,864,787) (17,976,417) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 188,533,442 11,166,764 35,806,454 14,127,727 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 198,709,073 11,247,979 7,383,634 79,018,095 NET ASSETS: Beginning of year.............. 11,247,979 -- 448,693,258 369,675,163 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 209,957,052 $ 11,247,979 $ 456,076,892 $ 448,693,258 ================ ================ ================ ================ MIST MIST MFS RESEARCH INTERNATIONAL MORGAN STANLEY MID CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 3,181,971 $ 858,851 $ (1,696,520) $ (2,043,749) Net realized gains (losses).... 522,322 (3,635,460) 2,455,142 158,086 Change in unrealized gains (losses) on investments...... 47,772,611 44,865,003 64,718,433 10,495,708 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 51,476,904 42,088,394 65,477,055 8,610,045 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 5,992,222 12,899,341 30,911,631 44,704,015 Net transfers (including fixed account)..................... (11,184,676) (5,504,513) (5,530,092) 10,647,959 Contract charges............... (2,476,702) (2,406,377) (2,046,240) (1,253,613) Transfers for contract benefits and terminations............. (23,934,709) (21,276,250) (10,333,215) (6,020,714) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (31,603,865) (16,287,799) 13,002,084 48,077,647 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 19,873,039 25,800,595 78,479,139 56,687,692 NET ASSETS: Beginning of year.............. 311,615,422 285,814,827 166,100,095 109,412,403 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 331,488,461 $ 311,615,422 $ 244,579,234 $ 166,100,095 ================ ================ ================ ================ MIST OPPENHEIMER GLOBAL EQUITY SUB-ACCOUNT ---------------------------------- 2013 2012 ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (523,132) $ (7,496) Net realized gains (losses).... 471,553 25,191 Change in unrealized gains (losses) on investments...... 11,622,690 1,707,146 ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 11,571,111 1,724,841 ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 974,476 93,332 Net transfers (including fixed account)..................... 59,782,304 42,419 Contract charges............... (334,651) (47,022) Transfers for contract benefits and terminations............. (3,578,136) (1,160,102) ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 56,843,993 (1,071,373) ---------------- ---------------- Net increase (decrease) in net assets.............. 68,415,104 653,468 NET ASSETS: Beginning of year.............. 9,983,469 9,330,001 ---------------- ---------------- End of year.................... $ 78,398,573 $ 9,983,469 ================ ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 82 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, 2013 AND 2012
MIST PIMCO INFLATION PROTECTED BOND MIST PIMCO TOTAL RETURN SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ----------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ----------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 5,656,555 $ 14,248,598 $ 57,226,440 $ 34,066,251 Net realized gains (losses).... 44,720,235 63,569,905 42,284,668 8,990,391 Change in unrealized gains (losses) on investments...... (156,230,192) (6,836,618) (175,186,613) 116,050,383 ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from operations............ (105,853,402) 70,981,885 (75,675,505) 159,107,025 ---------------- ---------------- ----------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 7,816,286 37,089,098 23,558,528 78,337,791 Net transfers (including fixed account)..................... (33,502,041) 43,921,625 (36,143,738) (4,343,112) Contract charges............... (9,760,980) (10,805,997) (21,824,762) (22,953,383) Transfers for contract benefits and terminations............. (58,283,070) (56,743,134) (130,498,036) (116,536,293) ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (93,729,805) 13,461,592 (164,908,008) (65,494,997) ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets.............. (199,583,207) 84,443,477 (240,583,513) 93,612,028 NET ASSETS: Beginning of year.............. 1,021,039,296 936,595,819 2,234,370,461 2,140,758,433 ---------------- ---------------- ----------------- ---------------- End of year.................... $ 821,456,089 $ 1,021,039,296 $ 1,993,786,948 $ 2,234,370,461 ================ ================ ================= ================ MIST PIONEER FUND MIST PIONEER STRATEGIC INCOME SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ----------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ----------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 4,682,697 $ 111,876 $ 30,105,308 $ 23,818,738 Net realized gains (losses).... 4,614,621 453,975 3,348,132 3,201,649 Change in unrealized gains (losses) on investments...... 61,555,660 15,646,585 (32,752,219) 39,967,597 ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 70,852,978 16,212,436 701,221 66,987,984 ---------------- ---------------- ----------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 28,240,878 44,864,297 95,062,807 151,288,040 Net transfers (including fixed account)..................... (4,702,128) 1,427,489 81,921,721 42,203,327 Contract charges............... (2,681,923) (1,901,589) (7,949,861) (6,040,609) Transfers for contract benefits and terminations............. (13,997,790) (9,026,061) (55,184,071) (49,923,251) ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 6,859,037 35,364,136 113,850,596 137,527,507 ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets.............. 77,712,015 51,576,572 114,551,817 204,515,491 NET ASSETS: Beginning of year.............. 220,043,655 168,467,083 804,777,040 600,261,549 ---------------- ---------------- ----------------- ---------------- End of year.................... $ 297,755,670 $ 220,043,655 $ 919,328,857 $ 804,777,040 ================ ================ ================= ================ MIST PYRAMIS MIST PYRAMIS GOVERNMENT INCOME MANAGED RISK MIST SCHRODERS GLOBAL MULTI-ASSET SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ---------------- ---------------------------------- 2013 2012 2013 (d) 2013 2012 (b) ---------------- ----------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 1,187,173 $ (10,117,810) $ 251,733 $ (4,795,245) $ 500,116 Net realized gains (losses).... 2,758,477 1,490,373 1,330,956 2,079,740 3,101,742 Change in unrealized gains (losses) on investments...... (56,847,411) 18,800,148 1,889,489 31,029,531 3,115,131 ---------------- ----------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ (52,901,761) 10,172,711 3,472,178 28,314,026 6,716,989 ---------------- ----------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 63,436,489 302,268,640 11,152,445 68,362,808 102,099,034 Net transfers (including fixed account)..................... (213,162,045) 203,505,051 64,918,197 161,034,274 84,640,438 Contract charges............... (12,240,571) (8,518,130) (309,972) (4,470,986) (248,694) Transfers for contract benefits and terminations............. (38,279,793) (29,014,385) (815,619) (9,919,594) (1,322,606) ---------------- ----------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (200,245,920) 468,241,176 74,945,051 215,006,502 185,168,172 ---------------- ----------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. (253,147,681) 478,413,887 78,417,229 243,320,528 191,885,161 NET ASSETS: Beginning of year.............. 968,887,238 490,473,351 -- 191,885,161 -- ---------------- ----------------- ---------------- ---------------- ---------------- End of year.................... $ 715,739,557 $ 968,887,238 $ 78,417,229 $ 435,205,689 $ 191,885,161 ================ ================= ================ ================ ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 84 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, 2013 AND 2012
MIST SSGA GROWTH AND INCOME ETF MIST SSGA GROWTH ETF SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ----------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ----------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 15,406,854 $ 13,091,362 $ 2,717,724 $ 1,829,679 Net realized gains (losses).... 56,799,502 42,136,114 25,386,819 23,356,452 Change in unrealized gains (losses) on investments...... 92,923,301 98,280,740 44,458,197 28,469,195 ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 165,129,657 153,508,216 72,562,740 53,655,326 ---------------- ---------------- ----------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 11,860,244 46,035,006 5,978,512 21,002,248 Net transfers (including fixed account)..................... (37,705,533) (195,586) 6,512,325 (12,945,274) Contract charges............... (18,210,457) (18,086,953) (4,933,205) (4,790,029) Transfers for contract benefits and terminations............. (64,397,713) (50,499,266) (18,680,473) (17,887,141) ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (108,453,459) (22,746,799) (11,122,841) (14,620,196) ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets.............. 56,676,198 130,761,417 61,439,899 39,035,130 NET ASSETS: Beginning of year.............. 1,521,502,479 1,390,741,062 448,167,959 409,132,829 ---------------- ---------------- ----------------- ---------------- End of year.................... $ 1,578,178,677 $ 1,521,502,479 $ 509,607,858 $ 448,167,959 ================ ================ ================= ================ MIST MIST T. ROWE PRICE LARGE CAP VALUE T. ROWE PRICE MID CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ----------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ----------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 274,524 $ (196,934) $ (7,216,909) $ (7,430,645) Net realized gains (losses).... 12,380,070 (4,291,658) 44,126,921 66,125,790 Change in unrealized gains (losses) on investments...... 154,938,541 84,038,159 116,792,789 (7,225,269) ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 167,593,135 79,549,567 153,702,801 51,469,876 ---------------- ---------------- ----------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 7,988,896 11,676,417 4,862,681 13,185,984 Net transfers (including fixed account)..................... 4,058,593 (16,072,648) (21,028,467) (5,883,360) Contract charges............... (3,122,742) (2,725,048) (4,805,296) (4,454,613) Transfers for contract benefits and terminations............. (55,363,943) (42,677,000) (31,385,247) (25,927,937) ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (46,439,196) (49,798,279) (52,356,329) (23,079,926) ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets.............. 121,153,939 29,751,288 101,346,472 28,389,950 NET ASSETS: Beginning of year.............. 536,790,380 507,039,092 467,536,275 439,146,325 ---------------- ---------------- ----------------- ---------------- End of year.................... $ 657,944,319 $ 536,790,380 $ 568,882,747 $ 467,536,275 ================ ================ ================= ================ MIST MSF THIRD AVENUE SMALL CAP VALUE BAILLIE GIFFORD INTERNATIONAL STOCK SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ------------------------------------ 2013 2012 2013 2012 ---------------- ----------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (1,972,508) $ (4,874,313) $ (3,165,848) $ (13,133) Net realized gains (losses).... 14,422,998 4,677,378 1,385,436 (385,254) Change in unrealized gains (losses) on investments...... 71,078,415 44,432,620 31,198,214 847,778 ---------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 83,528,905 44,235,685 29,417,802 449,391 ---------------- ----------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 2,497,715 6,340,050 1,422,162 3,449 Net transfers (including fixed account)..................... (16,141,981) (30,637,666) 282,688,482 78,870 Contract charges............... (2,257,569) (2,277,977) (2,205,156) (851) Transfers for contract benefits and terminations............. (24,465,425) (20,652,202) (10,455,850) (748,795) ---------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (40,367,260) (47,227,795) 271,449,638 (667,327) ---------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 43,161,645 (2,992,110) 300,867,440 (217,936) NET ASSETS: Beginning of year.............. 287,540,317 290,532,427 2,585,607 2,803,543 ---------------- ----------------- ---------------- ---------------- End of year.................... $ 330,701,962 $ 287,540,317 $ 303,453,047 $ 2,585,607 ================ ================= ================ ================ MSF BARCLAYS AGGREGATE BOND INDEX SUB-ACCOUNT ----------------------------------- 2013 2012 ----------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 2,684,004 $ 2,743,171 Net realized gains (losses).... (145,067) 313,783 Change in unrealized gains (losses) on investments...... (8,883,122) (228,315) ----------------- ---------------- Net increase (decrease) in net assets resulting from operations............ (6,344,185) 2,828,639 ----------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 11,149,289 8,092,766 Net transfers (including fixed account)..................... 15,951,296 18,316,110 Contract charges............... (1,698,851) (1,557,565) Transfers for contract benefits and terminations............. (8,039,466) (6,300,163) ----------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 17,362,268 18,551,148 ----------------- ---------------- Net increase (decrease) in net assets.............. 11,018,083 21,379,787 NET ASSETS: Beginning of year.............. 151,553,766 130,173,979 ----------------- ---------------- End of year.................... $ 162,571,849 $ 151,553,766 ================= ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 86 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, 2013 AND 2012
MSF MSF BLACKROCK BOND INCOME BLACKROCK CAPITAL APPRECIATION SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 1,256,228 $ 421,147 $ (112,438) $ (164,210) Net realized gains (losses).... 1,515,855 610,488 691,188 625,272 Change in unrealized gains (losses) on investments...... (4,322,733) 1,764,307 3,229,055 1,002,738 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ (1,550,650) 2,795,942 3,807,805 1,463,800 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 5,100,261 7,467,492 1,032,741 1,584,174 Net transfers (including fixed account)..................... 1,673,798 3,261,765 (69,939) (1,606,379) Contract charges............... (567,749) (523,968) (108,766) (99,934) Transfers for contract benefits and terminations............. (5,292,686) (4,651,283) (1,221,109) (858,701) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 913,624 5,554,006 (367,073) (980,840) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. (637,026) 8,349,948 3,440,732 482,960 NET ASSETS: Beginning of year.............. 57,888,933 49,538,985 11,831,610 11,348,650 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 57,251,907 $ 57,888,933 $ 15,272,342 $ 11,831,610 ================ ================ ================ ================ MSF BLACKROCK LARGE CAP VALUE MSF BLACKROCK MONEY MARKET SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 1,769 $ 7,990 $ (8,012,597) $ (9,036,407) Net realized gains (losses).... 196,427 387,537 -- -- Change in unrealized gains (losses) on investments...... 706,190 (36,111) -- -- ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 904,386 359,416 (8,012,597) (9,036,407) ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 170,505 199,805 35,808,232 73,504,419 Net transfers (including fixed account)..................... 180,009 (190,041) (7,315,471) (7,665,689) Contract charges............... (147) (160) (5,349,795) (5,431,164) Transfers for contract benefits and terminations............. (439,359) (282,152) (122,897,380) (115,886,270) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (88,992) (272,548) (99,754,414) (55,478,704) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 815,394 86,868 (107,767,011) (64,515,111) NET ASSETS: Beginning of year.............. 2,977,532 2,890,664 569,109,901 633,625,012 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 3,792,926 $ 2,977,532 $ 461,342,890 $ 569,109,901 ================ ================ ================ ================ MSF FRONTIER MSF DAVIS VENTURE VALUE MID CAP GROWTH MSF JENNISON GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------- ---------------------------------- 2013 2012 2013 (d) 2013 2012 ---------------- ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (2,024,413) $ (5,420,518) $ (897,791) $ (7,335,002) $ (6,766,082) Net realized gains (losses).... 40,523,317 16,667,444 1,222,819 20,299,862 52,244,975 Change in unrealized gains (losses) on investments...... 130,538,788 50,920,457 14,503,587 145,943,839 (18,349,887) ---------------- ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 169,037,692 62,167,383 14,828,615 158,908,699 27,129,006 ---------------- ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 5,918,436 14,661,575 339,204 3,447,603 10,762,342 Net transfers (including fixed account)..................... (37,323,562) (59,639,705) 73,026,037 (2,923,592) 213,225,860 Contract charges............... (4,862,149) (5,059,157) (461,156) (3,962,178) (3,408,013) Transfers for contract benefits and terminations............. (46,536,304) (38,956,468) (4,081,537) (38,611,159) (27,116,459) ---------------- ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (82,803,579) (88,993,755) 68,822,548 (42,049,326) 193,463,730 ---------------- ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 86,234,113 (26,826,372) 83,651,163 116,859,373 220,592,736 NET ASSETS: Beginning of year.............. 572,327,325 599,153,697 -- 468,764,846 248,172,110 ---------------- ---------------- ---------------- ---------------- ---------------- End of year.................... $ 658,561,438 $ 572,327,325 $ 83,651,163 $ 585,624,219 $ 468,764,846 ================ ================ ================ ================ ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 88 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, 2013 AND 2012
MSF MSF LOOMIS SAYLES SMALL CAP CORE LOOMIS SAYLES SMALL CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT ----------------------------------- ---------------------------------- 2013 2012 2013 2012 (b) ---------------- ----------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (200,052) $ (204,728) $ (1,411) $ (109) Net realized gains (losses).... 1,982,997 586,780 10,812 1 Change in unrealized gains (losses) on investments...... 2,464,698 882,105 37,804 1,023 ---------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........... 4,247,643 1,264,157 47,205 915 ---------------- ----------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 344,417 1,667,845 71,019 37,207 Net transfers (including fixed account)..................... (1,074,960) (236,709) 72,654 2,807 Contract charges............... (173,285) (146,127) (292) -- Transfers for contract benefits and terminations............. (1,065,267) (534,188) (4,711) (2) ---------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions..... (1,969,095) 750,821 138,670 40,012 ---------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets............. 2,278,548 2,014,978 185,875 40,927 NET ASSETS: Beginning of year.............. 12,332,225 10,317,247 40,927 -- ---------------- ----------------- ---------------- ---------------- End of year.................... $ 14,610,773 $ 12,332,225 $ 226,802 $ 40,927 ================ ================= ================ ================ MSF MET/DIMENSIONAL MSF MET/ARTISAN MID CAP VALUE INTERNATIONAL SMALL COMPANY SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ----------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ----------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (2,081,656) $ (1,777,619) $ 75,530 $ 301,440 Net realized gains (losses).... 2,704,503 (3,905,883) 2,053,871 3,990,436 Change in unrealized gains (losses) on investments...... 71,939,639 26,191,820 11,472,763 3,392,556 ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from operations........... 72,562,486 20,508,318 13,602,164 7,684,432 ---------------- ---------------- ----------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 2,406,731 4,670,705 946,915 2,031,164 Net transfers (including fixed account)..................... 15,760,862 (4,614,193) 2,187,268 (1,495,504) Contract charges............... (1,572,787) (1,472,349) (559,879) (519,052) Transfers for contract benefits and terminations............. (20,643,858) (17,348,925) (2,632,342) (2,307,911) ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions..... (4,049,052) (18,764,762) (58,038) (2,291,303) ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets............. 68,513,434 1,743,556 13,544,126 5,393,129 NET ASSETS: Beginning of year.............. 217,257,576 215,514,020 52,618,293 47,225,164 ---------------- ---------------- ----------------- ---------------- End of year.................... $ 285,771,010 $ 217,257,576 $ 66,162,419 $ 52,618,293 ================ ================ ================= ================ MSF METLIFE MSF METLIFE CONSERVATIVE ALLOCATION CONSERVATIVE TO MODERATE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT ------------------------------------ ----------------------------------- 2013 2012 2013 2012 ----------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 123,598 $ 152,780 $ 60,178 $ 85,571 Net realized gains (losses).... 324,295 493,943 205,663 122,762 Change in unrealized gains (losses) on investments...... (227,599) 57,363 395,866 444,706 ----------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations........... 220,294 704,086 661,707 653,039 ----------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... -- 26,093 -- 7,045 Net transfers (including fixed account)..................... (726,171) (539,314) 151,035 495,113 Contract charges............... (83,224) (83,156) (63,032) (61,615) Transfers for contract benefits and terminations............. (1,568,517) (848,031) (594,121) (660,740) ----------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions..... (2,377,912) (1,444,408) (506,118) (220,197) ----------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets............. (2,157,618) (740,322) 155,589 432,842 NET ASSETS: Beginning of year.............. 9,655,026 10,395,348 7,576,787 7,143,945 ----------------- ---------------- ---------------- ---------------- End of year.................... $ 7,497,408 $ 9,655,026 $ 7,732,376 $ 7,576,787 ================= ================ ================ ================ MSF METLIFE MID CAP STOCK INDEX SUB-ACCOUNT ----------------------------------- 2013 2012 ----------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (566,013) $ (572,617) Net realized gains (losses).... 6,964,753 4,370,936 Change in unrealized gains (losses) on investments...... 23,599,476 8,138,980 ----------------- ---------------- Net increase (decrease) in net assets resulting from operations........... 29,998,216 11,937,299 ----------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 3,805,517 5,096,199 Net transfers (including fixed account)..................... 9,018,341 (1,239,620) Contract charges............... (966,588) (736,669) Transfers for contract benefits and terminations............. (4,961,109) (3,873,437) ----------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions..... 6,896,161 (753,527) ----------------- ---------------- Net increase (decrease) in net assets............. 36,894,377 11,183,772 NET ASSETS: Beginning of year.............. 88,989,701 77,805,929 ----------------- ---------------- End of year.................... $ 125,884,078 $ 88,989,701 ================= ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 90 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, 2013 AND 2012
MSF METLIFE MSF METLIFE MODERATE ALLOCATION MODERATE TO AGGRESSIVE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ----------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 111,426 $ 277,463 $ (147,761) $ 87,401 Net realized gains (losses).... 1,018,931 338,723 927,158 (18,329) Change in unrealized gains (losses) on investments...... 5,244,250 3,990,206 10,180,246 6,305,708 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 6,374,607 4,606,392 10,959,643 6,374,780 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 333,489 235,760 209,284 490,083 Net transfers (including fixed account)..................... 189,896 (2,028,081) (1,014,032) (857,665) Contract charges............... (368,244) (397,645) (511,319) (518,714) Transfers for contract benefits and terminations............. (3,563,775) (5,009,708) (4,103,646) (2,489,601) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (3,408,634) (7,199,674) (5,419,713) (3,375,897) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 2,965,973 (2,593,282) 5,539,930 2,998,883 NET ASSETS: Beginning of year.............. 41,689,448 44,282,730 51,720,857 48,721,974 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 44,655,421 $ 41,689,448 $ 57,260,787 $ 51,720,857 ================ ================ ================ ================ MSF METLIFE STOCK INDEX MSF MFS TOTAL RETURN SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 126,616 $ (576,725) $ 297,490 $ 424,862 Net realized gains (losses).... 23,490,755 16,988,226 439,651 (156,072) Change in unrealized gains (losses) on investments...... 106,939,595 36,899,374 5,520,960 3,058,830 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 130,556,966 53,310,875 6,258,101 3,327,620 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 9,905,483 13,972,783 2,347,250 2,818,361 Net transfers (including fixed account)..................... 10,729,964 52,688,716 5,946,371 (315,421) Contract charges............... (3,364,435) (2,778,637) (195,752) (109,645) Transfers for contract benefits and terminations............. (33,312,519) (26,428,489) (3,656,176) (6,767,115) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (16,041,507) 37,454,373 4,441,693 (4,373,820) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 114,515,459 90,765,248 10,699,794 (1,046,200) NET ASSETS: Beginning of year.............. 446,759,028 355,993,780 35,344,618 36,390,818 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 561,274,487 $ 446,759,028 $ 46,044,412 $ 35,344,618 ================ ================ ================ ================ MSF MFS VALUE MSF MSCI EAFE INDEX SUB-ACCOUNT SUB-ACCOUNT --------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- --------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (1,920,146) $ 114,295 $ 1,388,628 $ 1,054,723 Net realized gains (losses).... 5,190,690 1,137,911 1,008,944 (680,643) Change in unrealized gains (losses) on investments...... 43,048,658 5,105,739 15,456,919 11,210,227 ---------------- --------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 46,319,202 6,357,945 17,854,491 11,584,307 ---------------- --------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 3,226,292 4,333,740 3,337,616 5,049,892 Net transfers (including fixed account)..................... 176,696,995 (2,214,337) 14,653,612 (493,052) Contract charges............... (1,727,489) (405,280) (946,782) (714,896) Transfers for contract benefits and terminations............. (12,316,297) (3,551,720) (4,106,316) (3,180,913) ---------------- --------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 165,879,501 (1,837,597) 12,938,130 661,031 ---------------- --------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 212,198,703 4,520,348 30,792,621 12,245,338 NET ASSETS: Beginning of year.............. 48,275,261 43,754,913 81,404,548 69,159,210 ---------------- --------------- ---------------- ---------------- End of year.................... $ 260,473,964 $ 48,275,261 $ 112,197,169 $ 81,404,548 ================ =============== ================ ================ MSF NEUBERGER BERMAN GENESIS SUB-ACCOUNT ---------------------------------- 2013 2012 ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (1,702,008) $ (124,305) Net realized gains (losses).... 2,307,614 (160,855) Change in unrealized gains (losses) on investments...... 36,584,374 1,235,418 ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 37,189,980 950,258 ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 1,534,745 1,660,390 Net transfers (including fixed account)..................... 130,824,603 (1,236,464) Contract charges............... (883,958) (14,681) Transfers for contract benefits and terminations............. (8,216,818) (827,588) ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 123,258,572 (418,343) ---------------- ---------------- Net increase (decrease) in net assets.............. 160,448,552 531,915 NET ASSETS: Beginning of year.............. 11,798,908 11,266,993 ---------------- ---------------- End of year.................... $ 172,247,460 $ 11,798,908 ================ ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 92 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, 2013 AND 2012
MSF MSF RUSSELL 2000 INDEX T. ROWE PRICE LARGE CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (279,727) $ (489,405) $ (1,361,307) $ (26,562) Net realized gains (losses).... 2,980,519 3,012,181 1,274,164 134,449 Change in unrealized gains (losses) on investments...... 32,072,788 8,632,997 29,734,972 129,142 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 34,773,580 11,155,773 29,647,829 237,029 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 3,036,517 4,246,140 1,216,598 3,080 Net transfers (including fixed account)..................... 17,108,088 16,541,440 125,845,085 255,979 Contract charges............... (979,907) (752,572) (670,738) (569) Transfers for contract benefits and terminations............. (4,618,795) (3,521,274) (5,610,315) (459,528) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... 14,545,903 16,513,734 120,780,630 (201,038) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 49,319,483 27,669,507 150,428,459 35,991 NET ASSETS: Beginning of year.............. 91,750,975 64,081,468 1,501,612 1,465,621 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 141,070,458 $ 91,750,975 $ 151,930,071 $ 1,501,612 ================ ================ ================ ================ MSF MSF T. ROWE PRICE SMALL CAP GROWTH VAN ECK GLOBAL NATURAL RESOURCES SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (118,410) $ (120,658) $ (992,724) $ (1,735,261) Net realized gains (losses).... 1,190,765 1,108,096 (2,668,683) 5,438,424 Change in unrealized gains (losses) on investments...... 2,047,671 44,932 13,797,608 (1,471,349) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 3,120,026 1,032,370 10,136,201 2,231,814 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 217,643 162,113 944,635 3,689,394 Net transfers (including fixed account)..................... 76,680 (200,702) (11,189,728) 4,851,544 Contract charges............... (65,804) (62,062) (1,460,573) (1,484,490) Transfers for contract benefits and terminations............. (634,727) (622,866) (3,878,019) (3,724,214) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (406,208) (723,517) (15,583,685) 3,332,234 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 2,713,818 308,853 (5,447,484) 5,564,048 NET ASSETS: Beginning of year.............. 7,808,995 7,500,142 111,896,983 106,332,935 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 10,522,813 $ 7,808,995 $ 106,449,499 $ 111,896,983 ================ ================ ================ ================ MSF WESTERN ASSET MANAGEMENT U.S. GOVERNMENT NEUBERGER BERMAN GENESIS SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 1,546,993 $ 1,122,805 $ (53) $ (52) Net realized gains (losses).... 12,769 531,096 749 348 Change in unrealized gains (losses) on investments...... (8,825,000) 2,934,349 2,197 363 ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ (7,265,238) 4,588,250 2,893 659 ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 17,581,036 39,776,656 -- -- Net transfers (including fixed account)..................... (7,036,962) 8,514,246 -- -- Contract charges............... (3,057,823) (2,890,949) -- -- Transfers for contract benefits and terminations............. (21,660,910) (22,207,896) (3) (1) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (14,174,659) 23,192,057 (3) (1) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. (21,439,897) 27,780,307 2,890 658 NET ASSETS: Beginning of year.............. 313,310,285 285,529,978 8,101 7,443 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 291,870,388 $ 313,310,285 $ 10,991 $ 8,101 ================ ================ ================ ================ OPPENHEIMER VA CORE BOND SUB-ACCOUNT ---------------------------------- 2013 2012 ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 335 $ 311 Net realized gains (losses).... (126) (598) Change in unrealized gains (losses) on investments...... (342) 1,084 ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ (133) 797 ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... -- -- Net transfers (including fixed account)..................... -- -- Contract charges............... -- -- Transfers for contract benefits and terminations............. (279) (1,889) ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (279) (1,889) ---------------- ---------------- Net increase (decrease) in net assets.............. (412) (1,092) NET ASSETS: Beginning of year.............. 9,058 10,150 ---------------- ---------------- End of year.................... $ 8,646 $ 9,058 ================ ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 94 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, 2013 AND 2012
OPPENHEIMER VA GLOBAL STRATEGIC INCOME OPPENHEIMER VA MAIN STREET SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ----------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 164 $ 199 $ (280) $ (512) Net realized gains (losses).... 8 54 1,403 4,748 Change in unrealized gains (losses) on investments...... (240) 229 23,373 10,567 ---------------- ---------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from operations............ (68) 482 24,496 14,803 ---------------- ---------------- ---------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... -- -- -- -- Net transfers (including fixed account)..................... -- 5 -- -- Contract charges............... -- -- -- -- Transfers for contract benefits and terminations............. (2) -- (4,120) (38,440) ---------------- ---------------- ---------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions...... (2) 5 (4,120) (38,440) ---------------- ---------------- ---------------- ----------------- Net increase (decrease) in net assets.............. (70) 487 20,376 (23,637) NET ASSETS: Beginning of year.............. 4,562 4,075 83,663 107,300 ---------------- ---------------- ---------------- ----------------- End of year.................... $ 4,492 $ 4,562 $ 104,039 $ 83,663 ================ ================ ================ ================= OPPENHEIMER VA MAIN STREET SMALL CAP OPPENHEIMER VA MONEY SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ (725,297) $ (928,472) $ (102) $ (1,590) Net realized gains (losses).... 6,330,488 1,063,609 -- -- Change in unrealized gains (losses) on investments...... 30,298,071 13,086,051 -- -- ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 35,903,262 13,221,188 (102) (1,590) ---------------- ---------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 7,423,119 7,613,898 -- -- Net transfers (including fixed account)..................... (9,338,929) (1,388,199) -- -- Contract charges............... (1,036,361) (862,843) -- -- Transfers for contract benefits and terminations............. (5,997,839) (3,986,210) (108,863) (154) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (8,950,010) 1,376,646 (108,863) (154) ---------------- ---------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 26,953,252 14,597,834 (108,965) (1,744) NET ASSETS: Beginning of year.............. 96,092,155 81,494,321 112,965 114,709 ---------------- ---------------- ---------------- ---------------- End of year.................... $ 123,045,407 $ 96,092,155 $ 4,000 $ 112,965 ================ ================ ================ ================ PIONEER VCT DISCIPLINED VALUE PIONEER VCT EMERGING MARKETS SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ----------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ----------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 1,598 $ (11,306) $ (4,954) $ (11,558) Net realized gains (losses).... 284,647 39,918 (140) 25,278 Change in unrealized gains (losses) on investments...... 226,657 154,904 (21,981) 54,203 ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 512,902 183,516 (27,075) 67,923 ---------------- ---------------- ----------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 2,355 3,689 1,280 3,564 Net transfers (including fixed account)..................... (515,063) (8,654) 14,296 97,437 Contract charges............... (26,379) (24,154) (8,404) (8,283) Transfers for contract benefits and terminations............. (107,501) (53,735) (49,534) (75,321) ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (646,588) (82,854) (42,362) 17,397 ---------------- ---------------- ----------------- ---------------- Net increase (decrease) in net assets.............. (133,686) 100,662 (69,437) 85,320 NET ASSETS: Beginning of year.............. 2,136,823 2,036,161 791,020 705,700 ---------------- ---------------- ----------------- ---------------- End of year.................... $ 2,003,137 $ 2,136,823 $ 721,583 $ 791,020 ================ ================ ================= ================ PIONEER VCT EQUITY INCOME SUB-ACCOUNT ---------------------------------- 2013 2012 ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)... $ 3,468 $ 11,313 Net realized gains (losses).... 17,885 4,300 Change in unrealized gains (losses) on investments...... 119,241 22,355 ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 140,594 37,968 ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners......... 2,835 3,646 Net transfers (including fixed account)..................... (47,268) 142,735 Contract charges............... (6,096) (5,521) Transfers for contract benefits and terminations............. (1,161) (1,130) ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (51,690) 139,730 ---------------- ---------------- Net increase (decrease) in net assets.............. 88,904 177,698 NET ASSETS: Beginning of year.............. 548,970 371,272 ---------------- ---------------- End of year.................... $ 637,874 $ 548,970 ================ ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 96 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, 2013 AND 2012
PIONEER VCT PIONEER VCT IBBOTSON GROWTH ALLOCATION IBBOTSON MODERATE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT ------------------------------------ ---------------------------------- 2013 2012 2013 2012 ----------------- ----------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ 22,729 $ 19,019 $ 228,243 $ 255,252 Net realized gains (losses)..... 774,226 369,421 856,488 292,055 Change in unrealized gains (losses) on investments....... 2,367,042 1,375,293 2,920,605 2,023,933 ----------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 3,163,997 1,763,733 4,005,336 2,571,240 ----------------- ----------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 85,890 641,966 148,361 195,281 Net transfers (including fixed account)...................... 268,913 (586,915) (864,929) 603,458 Contract charges................ (180,697) (176,884) (364,481) (347,432) Transfers for contract benefits and terminations.............. (1,602,862) (271,037) (1,164,852) (549,849) ----------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (1,428,756) (392,870) (2,245,901) (98,542) ----------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 1,735,241 1,370,863 1,759,435 2,472,698 NET ASSETS: Beginning of year............... 19,107,227 17,736,364 28,441,628 25,968,930 ----------------- ----------------- ---------------- ---------------- End of year..................... $ 20,842,468 $ 19,107,227 $ 30,201,063 $ 28,441,628 ================= ================= ================ ================ PIONEER VCT MID CAP VALUE PIONEER VCT REAL ESTATE SHARES SUB-ACCOUNT SUB-ACCOUNT ------------------------------------ ------------------------------------ 2013 2012 2013 2012 ----------------- ----------------- ----------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ (422,216) $ (308,091) $ 1,359 $ 1,265 Net realized gains (losses)..... 856,609 (22,002) 18,057 26,262 Change in unrealized gains (losses) on investments....... 16,961,029 4,990,668 (19,131) 8,731 ----------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from operations............ 17,395,422 4,660,575 285 36,258 ----------------- ----------------- ----------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 5,065,892 7,895,929 895 1,012 Net transfers (including fixed account)...................... (2,540,776) 302,978 17,963 3,518 Contract charges................ (481,800) (363,551) (2,841) (2,765) Transfers for contract benefits and terminations.............. (3,983,623) (5,196,081) (1,163) (52,356) ----------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions...... (1,940,307) 2,639,275 14,854 (50,591) ----------------- ----------------- ----------------- ----------------- Net increase (decrease) in net assets.............. 15,455,115 7,299,850 15,139 (14,333) NET ASSETS: Beginning of year............... 56,444,927 49,145,077 237,514 251,847 ----------------- ----------------- ----------------- ----------------- End of year..................... $ 71,900,042 $ 56,444,927 $ 252,653 $ 237,514 ================= ================= ================= ================= T. ROWE PRICE GROWTH STOCK T. ROWE PRICE INTERNATIONAL STOCK SUB-ACCOUNT SUB-ACCOUNT ------------------------------------ ---------------------------------- 2013 2012 2013 2012 ----------------- ----------------- ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ (60,820) $ (47,423) $ 503 $ 2,166 Net realized gains (losses)..... 357,589 237,825 10,324 (5,645) Change in unrealized gains (losses) on investments....... 2,047,793 849,311 71,247 113,047 ----------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ 2,344,562 1,039,713 82,074 109,568 ----------------- ----------------- ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 219,130 218,037 21,103 27,542 Net transfers (including fixed account)...................... (113,852) (456,841) (7,638) (158,822) Contract charges................ (1,536) (1,517) (151) (158) Transfers for contract benefits and terminations.............. (513,697) (410,744) (79,868) (43,778) ----------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (409,955) (651,065) (66,554) (175,216) ----------------- ----------------- ---------------- ---------------- Net increase (decrease) in net assets.............. 1,934,607 388,648 15,520 (65,648) NET ASSETS: Beginning of year............... 6,404,585 6,015,937 639,881 705,529 ----------------- ----------------- ---------------- ---------------- End of year..................... $ 8,339,192 $ 6,404,585 $ 655,401 $ 639,881 ================= ================= ================ ================ T. ROWE PRICE PRIME RESERVE SUB-ACCOUNT ---------------------------------- 2013 2012 ---------------- ---------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss).... $ (6,339) $ (7,879) Net realized gains (losses)..... -- -- Change in unrealized gains (losses) on investments....... -- -- ---------------- ---------------- Net increase (decrease) in net assets resulting from operations............ (6,339) (7,879) ---------------- ---------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners.......... 208 301 Net transfers (including fixed account)...................... (93,657) (199,272) Contract charges................ (155) (187) Transfers for contract benefits and terminations.............. (64,754) (43,573) ---------------- ---------------- Net increase (decrease) in net assets resulting from contract transactions...... (158,358) (242,731) ---------------- ---------------- Net increase (decrease) in net assets.............. (164,697) (250,610) NET ASSETS: Beginning of year............... 723,146 973,756 ---------------- ---------------- End of year..................... $ 558,449 $ 723,146 ================ ================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 98 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 -- (CONCLUDED) FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
UIF U.S. REAL ESTATE SUB-ACCOUNT ------------------------------------ 2013 2012 ----------------- ----------------- INCREASE (DECREASE) IN NET ASSETS: FROM OPERATIONS: Net investment income (loss)............................................................... $ (322,967) $ (505,482) Net realized gains (losses)................................................................ (34,211) (531,267) Change in unrealized gains (losses) on investments.................................................................. 392,749 11,927,777 ----------------- ----------------- Net increase (decrease) in net assets resulting from operations....................................................................... 35,571 10,891,028 ----------------- ----------------- CONTRACT TRANSACTIONS: Purchase payments received from contract owners..................................................................... 11,431,975 13,220,555 Net transfers (including fixed account)................................................................................. 5,853,586 684,788 Contract charges........................................................................... (713,884) (537,546) Transfers for contract benefits and terminations......................................................................... (6,390,221) (10,065,780) ----------------- ----------------- Net increase (decrease) in net assets resulting from contract transactions................................................................. 10,181,456 3,302,017 ----------------- ----------------- Net increase (decrease) in net assets......................................................................... 10,217,027 14,193,045 NET ASSETS: Beginning of year.......................................................................... 90,757,950 76,564,905 ----------------- ----------------- End of year................................................................................ $ 100,974,977 $ 90,757,950 ================= =================
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. The accompanying notes are an integral part of these financial statements. 100 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. In the second quarter of 2013, MetLife, Inc. announced its plans to merge into MetLife Insurance Company of Connecticut ("MICC"), as the surviving entity, two United States ("U.S.")-based life insurance companies and an offshore reinsurance subsidiary to create one larger U.S.-based and U.S.-regulated life insurance company, which is expected to be renamed and domiciled in Delaware (the "Mergers"). The companies to be merged into MICC consist of the Company and MetLife Investors Insurance Company, each a U.S. insurance company that issues variable annuity products in addition to other products, and Exeter Reassurance Company, Ltd. ("Exeter"), a reinsurance company that mainly reinsures guarantees associated with variable annuity products. Exeter, formerly a Cayman Islands company, was re-domesticated to Delaware in October 2013. The Mergers are expected to occur in the fourth quarter of 2014, subject to regulatory approvals. 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: AIM Variable Insurance Funds (Invesco Variable Met Investors Series Trust ("MIST")* Insurance Funds) ("Invesco V.I.") Metropolitan Series Fund ("MSF")* American Funds Insurance Series ("American Funds") MFS Variable Insurance Trust ("MFS VIT") DWS Variable Series I ("DWS I") Neuberger Berman Equity Funds ("Neuberger Berman") Federated Insurance Series ("Federated") Oppenheimer Variable Account Funds Fidelity Variable Insurance Products ("Fidelity VIP") ("Oppenheimer VA") Franklin Templeton Variable Insurance Products Trust Pioneer Variable Contracts Trust ("Pioneer VCT") ("FTVIPT") T. Rowe Price Growth Stock Fund, Inc. Janus Aspen Series ("Janus Aspen") T. Rowe Price International Funds, Inc. Legg Mason Partners Variable Equity Trust T. Rowe Price Prime Reserve Fund, Inc. ("LMPVET") The Alger Portfolios ("Alger") Legg Mason Partners Variable Income Trust The Universal Institutional Funds, Inc. ("UIF") ("LMPVIT")
* See Note 5 for a discussion of additional information on related party transactions. 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. 101 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 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, 2013: Alger Small Cap Growth Sub-Account LMPVET ClearBridge Variable Large Cap Value American Funds Bond Sub-Account Sub-Account American Funds Global Growth Sub-Account LMPVET ClearBridge Variable Small Cap Growth American Funds Global Small Capitalization Sub-Account Sub-Account LMPVET Investment Counsel Variable Social American Funds Growth Sub-Account Awareness Sub-Account American Funds Growth-Income Sub-Account LMPVET Variable Lifestyle Allocation 50% DWS I International Sub-Account Sub-Account Federated High Income Bond Sub-Account LMPVET Variable Lifestyle Allocation 70% Federated Kaufman Sub-Account Sub-Account Fidelity VIP Asset Manager Sub-Account LMPVET Variable Lifestyle Allocation 85% Fidelity VIP Contrafund Sub-Account (a) Sub-Account Fidelity VIP Equity-Income Sub-Account LMPVIT Western Asset Variable Global High Yield Fidelity VIP FundsManager 50% Sub-Account Bond Sub-Account Fidelity VIP FundsManager 60% Sub-Account MFS VIT Investors Trust Sub-Account Fidelity VIP Growth Sub-Account MFS VIT New Discovery Sub-Account Fidelity VIP Index 500 Sub-Account MFS VIT Research Sub-Account Fidelity VIP Mid Cap Sub-Account MIST AllianceBernstein Global Dynamic Allocation Fidelity VIP Money Market Sub-Account (a) Sub-Account Fidelity VIP Overseas Sub-Account MIST American Funds Balanced Allocation FTVIPT Franklin Income Securities Sub-Account Sub-Account FTVIPT Franklin Small Cap Value Securities MIST American Funds Growth Allocation Sub-Account Sub-Account FTVIPT Mutual Shares Securities Sub-Account MIST American Funds Growth Sub-Account FTVIPT Templeton Foreign Securities Sub-Account MIST American Funds Moderate Allocation FTVIPT Templeton Global Bond Securities Sub-Account Sub-Account Invesco V.I. American Franchise Sub-Account MIST AQR Global Risk Balanced Sub-Account Invesco V.I. American Value Sub-Account MIST BlackRock Global Tactical Strategies Invesco V.I. Core Equity Sub-Account Sub-Account Invesco V.I. Equity and Income Sub-Account (a) MIST BlackRock High Yield Sub-Account (a) Invesco V.I. Global Real Estate Sub-Account MIST BlackRock Large Cap Core Sub-Account (a) Invesco V.I. Growth and Income Sub-Account (a) MIST Clarion Global Real Estate Sub-Account Invesco V.I. International Growth Sub-Account (a) MIST ClearBridge Aggressive Growth Sub-Account Janus Aspen Global Research Sub-Account MIST ClearBridge Aggressive Growth II LMPVET ClearBridge Variable Aggressive Growth Sub-Account (a) Sub-Account (a) MIST Goldman Sachs Mid Cap Value Sub-Account LMPVET ClearBridge Variable All Cap Value MIST Harris Oakmark International Sub-Account (a) Sub-Account MIST Invesco Balanced-Risk Allocation Sub-Account LMPVET ClearBridge Variable Appreciation MIST Invesco Comstock Sub-Account Sub-Account MIST Invesco Mid Cap Value Sub-Account LMPVET ClearBridge Variable Equity Income MIST Invesco Small Cap Growth Sub-Account (a) Sub-Account (a) MIST JPMorgan Core Bond Sub-Account LMPVET ClearBridge Variable Large Cap Growth MIST JPMorgan Global Active Allocation Sub-Account Sub-Account
102 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 2. LIST OF SUB-ACCOUNTS -- (CONCLUDED) MIST JPMorgan Small Cap Value Sub-Account (a) MSF Met/Artisan Mid Cap Value Sub-Account (a) MIST Loomis Sayles Global Markets Sub-Account MSF Met/Dimensional International Small Company MIST Lord Abbett Bond Debenture Sub-Account (a) Sub-Account MIST Met/Eaton Vance Floating Rate Sub-Account MSF MetLife Conservative Allocation Sub-Account MIST Met/Franklin Low Duration Total Return MSF MetLife Conservative to Moderate Allocation Sub-Account Sub-Account MIST Met/Templeton International Bond Sub-Account MSF MetLife Mid Cap Stock Index Sub-Account (a) MIST MetLife Aggressive Strategy Sub-Account MSF MetLife Moderate Allocation Sub-Account MIST MetLife Balanced Plus Sub-Account MSF MetLife Moderate to Aggressive Allocation MIST MetLife Balanced Strategy Sub-Account Sub-Account MIST MetLife Defensive Strategy Sub-Account MSF MetLife Stock Index Sub-Account (a) MIST MetLife Growth Strategy Sub-Account MSF MFS Total Return Sub-Account (a) MIST MetLife Moderate Strategy Sub-Account MSF MFS Value Sub-Account (a) MIST MetLife Multi-Index Targeted Risk MSF MSCI EAFE Index Sub-Account (a) Sub-Account MSF Neuberger Berman Genesis Sub-Account (a) MIST MFS Emerging Markets Equity Sub-Account MSF Russell 2000 Index Sub-Account (a) MIST MFS Research International Sub-Account (a) MSF T. Rowe Price Large Cap Growth Sub-Account (a) MIST Morgan Stanley Mid Cap Growth Sub-Account (a) MSF T. Rowe Price Small Cap Growth Sub-Account (a) MIST Oppenheimer Global Equity Sub-Account MSF Van Eck Global Natural Resources Sub-Account MIST PIMCO Inflation Protected Bond Sub-Account MSF Western Asset Management U.S. Government MIST PIMCO Total Return Sub-Account (a) Sub-Account (a) MIST Pioneer Fund Sub-Account (a) Neuberger Berman Genesis Sub-Account MIST Pioneer Strategic Income Sub-Account (a) Oppenheimer VA Core Bond Sub-Account MIST Pyramis Government Income Sub-Account Oppenheimer VA Global Strategic Income MIST Pyramis Managed Risk Portfolio Sub-Account (b) Sub-Account MIST Schroders Global Multi-Asset Sub-Account Oppenheimer VA Main Street Sub-Account MIST SSgA Growth and Income ETF Sub-Account Oppenheimer VA Main Street Small Cap MIST SSgA Growth ETF Sub-Account Sub-Account (a) MIST T. Rowe Price Large Cap Value Sub-Account (a) Oppenheimer VA Money Sub-Account MIST T. Rowe Price Mid Cap Growth Sub-Account Pioneer VCT Disciplined Value Sub-Account MIST Third Avenue Small Cap Value Sub-Account (a) Pioneer VCT Emerging Markets Sub-Account MSF Baillie Gifford International Stock Sub-Account (a) Pioneer VCT Equity Income Sub-Account MSF Barclays Aggregate Bond Index Sub-Account (a) Pioneer VCT Ibbotson Growth Allocation Sub-Account MSF BlackRock Bond Income Sub-Account (a) Pioneer VCT Ibbotson Moderate Allocation MSF BlackRock Capital Appreciation Sub-Account (a) Sub-Account MSF BlackRock Large Cap Value Sub-Account Pioneer VCT Mid Cap Value Sub-Account MSF BlackRock Money Market Sub-Account (a) Pioneer VCT Real Estate Shares Sub-Account MSF Davis Venture Value Sub-Account (a) T. Rowe Price Growth Stock Sub-Account MSF Frontier Mid Cap Growth Sub-Account (b) T. Rowe Price International Stock Sub-Account MSF Jennison Growth Sub-Account (a) T. Rowe Price Prime Reserve Sub-Account MSF Loomis Sayles Small Cap Core Sub-Account UIF U.S. Real Estate Sub-Account MSF Loomis Sayles Small Cap Growth Sub-Account
(a) This Sub-Account invests in two or more share classes within the underlying portfolio, series, or fund of the Trusts. (b) This Sub-Account began operations during the year ended December 31, 2013. 103 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 3. PORTFOLIO CHANGES The following Sub-Accounts ceased operations during the year ended December 31, 2013: MIST American Funds International Sub-Account MIST MLA Mid Cap Sub-Account MIST Jennison Large Cap Equity Sub-Account MIST RCM Technology Sub-Account MIST Met/Franklin Mutual Shares Sub-Account MIST Turner Mid Cap Growth Sub-Account MIST Met/Franklin Templeton Founding Strategy MSF FI Value Leaders Sub-Account Sub-Account (MSF) Oppenheimer Global Equity Portfolio
The operations of the Sub-Accounts were affected by the following changes that occurred during the year ended December 31, 2013: NAME CHANGES: Former Name New Name Invesco Van Kampen V.I. American Franchise Fund Invesco V.I. American Franchise Fund Invesco Van Kampen V.I. American Value Fund Invesco V.I. American Value Fund Invesco Van Kampen V.I. Equity and Income Fund Invesco V.I. Equity and Income Fund Invesco Van Kampen V.I. Growth and Income Fund Invesco V.I. Growth and Income Fund Janus Aspen Series Worldwide Portfolio Janus Aspen Series Global Research Portfolio Legg Mason ClearBridge Variable Aggressive Growth ClearBridge Variable Aggressive Growth Portfolio Portfolio Legg Mason ClearBridge Variable Appreciation ClearBridge Variable Appreciation Portfolio Portfolio Legg Mason ClearBridge Variable Equity Income ClearBridge Variable Equity Income Portfolio Builder Portfolio Legg Mason ClearBridge Variable Fundamental All ClearBridge Variable All Cap Value Portfolio Cap Value Portfolio Legg Mason ClearBridge Variable Large Cap Growth ClearBridge Variable Large Cap Growth Portfolio Portfolio Legg Mason ClearBridge Variable Large Cap Value ClearBridge Variable Large Cap Value Portfolio Portfolio Legg Mason ClearBridge Variable Small Cap Growth ClearBridge Variable Small Cap Growth Portfolio Portfolio Legg Mason Western Asset Variable Global High Yield Western Asset Variable Global High Yield Bond Bond Portfolio Portfolio (MIST) American Funds Bond Portfolio (MIST) JPMorgan Core Bond Portfolio (MIST) Dreman Small Cap Value Portfolio (MIST) JPMorgan Small Cap Value Portfolio (MIST) Janus Forty Portfolio (MIST) ClearBridge Aggressive Growth Portfolio II (MIST) Legg Mason ClearBridge Aggressive Growth (MIST) ClearBridge Aggressive Growth Portfolio Portfolio (MIST) Lord Abbett Mid Cap Value Portfolio (MIST) Invesco Mid Cap Value Portfolio (MIST) Met/Templeton Growth Portfolio (a) (MIST) Oppenheimer Global Equity Portfolio (a) (MIST) Van Kampen Comstock Portfolio (MIST) Invesco Comstock Portfolio (MSF) Barclays Capital Aggregate Bond Index (MSF) Barclays Aggregate Bond Index Portfolio Portfolio (MSF) BlackRock Legacy Large Cap Growth Portfolio (MSF) BlackRock Capital Appreciation Portfolio Oppenheimer Main Street Small- & Mid-Cap Fund/VA Oppenheimer Main Street Small Cap Fund/VA Pioneer Fundamental Value VCT Portfolio Pioneer Disciplined Value VCT Portfolio
104 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 3. PORTFOLIO CHANGES -- (CONCLUDED) MERGERS: Former Portfolio New Portfolio (MIST) American Funds International Portfolio (MSF) Baillie Gifford International Stock Portfolio (MIST) Jennison Large Cap Equity Portfolio (MSF) Jennison Growth Portfolio (MIST) Met/Franklin Mutual Shares Portfolio (MSF) MFS Value Portfolio (MIST) Met/Franklin Templeton Founding Strategy (MIST) MetLife Growth Strategy Portfolio Portfolio (MIST) MLA Mid Cap Portfolio (MSF) Neuberger Berman Genesis Portfolio (MIST) RCM Technology Portfolio (MSF) T. Rowe Price Large Cap Growth Portfolio (MIST) Turner Mid Cap Growth Portfolio (MSF) Frontier Mid Cap Growth Portfolio (MSF) FI Value Leaders Portfolio (MSF) MFS Value Portfolio (MSF) Oppenheimer Global Equity Portfolio (a) (MIST) Met/Templeton Growth Portfolio (a)
a) At the close of business on April 26, 2013, the (MSF) Oppenheimer Global Equity Portfolio merged with and into the (MIST) Met/Templeton Growth Portfolio. Concurrently, Oppenheimer Funds, Inc. became the subadviser of the (MIST) Met/Templeton Growth Portfolio, the portfolio's investment objective and principal investment strategies changed, and the portfolio's name was changed to (MIST) Oppenheimer Global Equity Portfolio. Pursuant to these changes, (MSF) Oppenheimer Global Equity Portfolio was deemed to be the accounting and performance survivor of the merger for financial reporting purposes, and therefore, the results of MIST Oppenheimer Global Equity Sub-Account presented in the financial statements reflect the historical results of MSF Oppenheimer Global Equity Sub-Account prior to the merger, and the combined results thereafter. 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 A Sub-Account's investment in shares of a 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. 105 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 4. SIGNIFICANT ACCOUNTING POLICIES -- (CONTINUED) SECURITY VALUATION -- (CONCLUDED) 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 that the Separate Account has the ability to access. Level 2 Observable inputs other than quoted prices in Level 1 that are observable either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market or prices for similar instruments. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets, representing the Separate Account's own assumptions about the assumptions a market participant would use in valuing the asset, and based on the best information available. Each Sub-Account invests in shares of open-end mutual funds which calculate a daily NAV based on the fair 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. There were no transfers between Level 1 and Level 2, and no activity in Level 3 during the year. 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 currently 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 between 3.0 and 6.0 percent. The mortality risk is fully borne by the Company and may result in additional amounts being transferred into the Separate Account by the Company to cover greater longevity of annuitants than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the Company. PURCHASE PAYMENTS Purchase payments received from contract owners by the Company are credited as accumulation units as of the end of the valuation period in which received, as provided in the prospectus of the Contracts, and are reported as contract transactions on the statements of changes in net assets of the applicable Sub-Accounts. 106 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 4. SIGNIFICANT ACCOUNTING POLICIES -- (CONCLUDED) NET TRANSFERS Funds transferred by the contract owner into or out of Sub-Accounts within the Separate Account or into or out of the fixed account, which is part 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. 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. The table below represents the range of effective annual rates for each respective charge for the year ended December 31, 2013: ---------------------------------------------------------------------------------------------------------------------------- Mortality and Expense Risk 0.70% - 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% ----------------------------------------------------------------------------------------------------------------------------
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. 107 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 5. EXPENSES AND RELATED PARTY TRANSACTIONS -- (CONCLUDED) 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. 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. Enhanced Guaranteed Withdrawal Benefit -- For an additional charge, the Company will guarantee that at least the entire amount of purchase payments will be returned through a series of withdrawals without annuitizing. The table below represents the range of effective annual rates for each respective charge for the year ended December 31, 2013: ------------------------------------------------------------------------------------------------------------------------- Guaranteed Minimum Accumulation Benefit 0.75% ------------------------------------------------------------------------------------------------------------------------- Lifetime Withdrawal Guarantee 0.50% - 1.80% ------------------------------------------------------------------------------------------------------------------------- Guaranteed Withdrawal Benefit 0.25% - 1.80% ------------------------------------------------------------------------------------------------------------------------- Guaranteed Minimum Income Benefit 0.50% - 1.50% ------------------------------------------------------------------------------------------------------------------------- Enhanced Death Benefit 0.60% - 1.50% ------------------------------------------------------------------------------------------------------------------------- Enhanced Guaranteed Withdrawal Benefit 0.55% - 1.00% -------------------------------------------------------------------------------------------------------------------------
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 ranging from $0 to $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 which ranges from $12 to $29.50 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). For other Contracts the administrative charge is $21.50 plus $2.50 for each Sub-Account selected, subject to the same waiver terms. 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 $10 charge is assessed for annuitizations. For those contract owners who choose optional living benefit riders or certain optional death benefit riders, these charges range from 0.25% to 1.80% of the benefit base and are charged at each contract anniversary date. These charges are paid to the Company and recorded as contract charges in the accompanying statements of changes in net assets of the applicable Sub-Accounts. MetLife Advisers, LLC, which acts in the capacity of investment adviser to the portfolios of the MIST and MSF Trusts, is an affiliate of the Company. 108 METLIFE INVESTORS USA SEPARATE ACCOUNT A OF METLIFE INVESTORS USA INSURANCE COMPANY NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED) 6. STATEMENTS OF INVESTMENTS
FOR THE YEAR ENDED AS OF DECEMBER 31, 2013 DECEMBER 31, 2013 ------------------------------- ------------------------------- COST OF PROCEEDS SHARES COST ($) PURCHASES ($) FROM SALES ($) ------------- -------------- -------------- -------------- Alger Small Cap Growth Sub-Account......................... 1,953,805 57,250,154 8,367,037 6,625,484 American Funds Bond Sub-Account............................ 13,775,531 147,139,916 21,831,559 7,389,905 American Funds Global Growth Sub-Account................... 10,522,269 223,509,854 12,990,684 18,551,511 American Funds Global Small Capitalization Sub-Account..... 4,918,180 95,041,858 10,469,150 11,712,314 American Funds Growth Sub-Account.......................... 10,989,996 574,188,815 23,270,824 62,728,487 American Funds Growth-Income Sub-Account................... 7,704,764 274,807,285 11,909,004 33,145,087 DWS I International Sub-Account............................ 2,052,186 20,756,206 1,433,339 2,082,585 Federated High Income Bond Sub-Account..................... 3,660 25,725 1,732 468 Federated Kaufman Sub-Account.............................. 2,337 31,003 3,265 1,661 Fidelity VIP Asset Manager Sub-Account..................... 5,120,330 78,221,722 1,832,124 10,277,909 Fidelity VIP Contrafund Sub-Account........................ 17,856,406 423,701,254 46,928,007 47,735,664 Fidelity VIP Equity-Income Sub-Account..................... 255,672 5,773,353 567,078 1,049,969 Fidelity VIP FundsManager 50% Sub-Account.................. 169,341,698 1,893,521,701 1,448,712,994 -- Fidelity VIP FundsManager 60% Sub-Account.................. 341,365,269 3,336,110,670 184,779,786 215,424,352 Fidelity VIP Growth Sub-Account............................ 2,904,593 109,545,186 1,267,314 18,047,059 Fidelity VIP Index 500 Sub-Account......................... 374,026 48,066,934 1,890,733 9,575,024 Fidelity VIP Mid Cap Sub-Account........................... 12,544,437 367,482,168 75,428,895 19,321,498 Fidelity VIP Money Market Sub-Account...................... 76,155,366 76,155,366 264,136,300 261,640,341 Fidelity VIP Overseas Sub-Account.......................... 287,089 5,219,470 201,987 889,204 FTVIPT Franklin Income Securities Sub-Account.............. 18,532,766 277,580,598 34,739,012 8,570,345 FTVIPT Franklin Small Cap Value Securities Sub-Account..... 5,319,858 83,521,426 16,513,930 5,117,658 FTVIPT Mutual Shares Securities Sub-Account................ 7,215,840 124,287,971 5,389,350 11,759,291 FTVIPT Templeton Foreign Securities Sub-Account............ 5,088,246 75,734,816 4,034,851 12,411,337 FTVIPT Templeton Global Bond Securities Sub-Account........ 13,692,658 253,733,342 53,566,361 5,257,847 Invesco V.I. American Franchise Sub-Account................ 3,234 111,443 621 35,535 Invesco V.I. American Value Sub-Account.................... 4,830,003 62,389,211 9,919,898 4,658,110 Invesco V.I. Core Equity Sub-Account....................... 6,498 164,702 3,201 51,990 Invesco V.I. Equity and Income Sub-Account................. 35,060,599 485,126,865 47,241,462 12,705,837 Invesco V.I. Global Real Estate Sub-Account................ 2,012,977 28,050,116 9,597,854 2,317,229 Invesco V.I. Growth and Income Sub-Account................. 13,952,369 250,218,096 23,999,020 11,230,394 Invesco V.I. International Growth Sub-Account.............. 8,084,783 216,816,575 27,736,513 6,844,164 Janus Aspen Global Research Sub-Account.................... 173 4,105 73 426 LMPVET ClearBridge Variable Aggressive Growth Sub-Account.............................................. 10,526,694 173,680,862 31,834,893 14,731,303 LMPVET ClearBridge Variable All Cap Value Sub-Account...... 5,180,506 108,091,465 13,093,421 10,449,229 LMPVET ClearBridge Variable Appreciation Sub-Account....... 12,072,871 297,272,179 46,243,652 5,053,515 LMPVET ClearBridge Variable Equity Income Sub-Account...... 13,279,712 148,789,202 29,700,748 7,561,386 LMPVET ClearBridge Variable Large Cap Growth Sub-Account.............................................. 226,398 3,757,586 797,143 1,061,468 LMPVET ClearBridge Variable Large Cap Value Sub-Account.... 359,950 5,522,541 1,851,418 917,410 LMPVET ClearBridge Variable Small Cap Growth Sub-Account.............................................. 4,673,830 76,531,477 26,245,513 5,068,007 LMPVET Investment Counsel Variable Social Awareness Sub-Account.............................................. 9,442 232,386 10,822 55,604 LMPVET Variable Lifestyle Allocation 50% Sub-Account....... 3,101,366 37,754,389 9,234,898 2,451,069 LMPVET Variable Lifestyle Allocation 70% Sub-Account....... 164,059 1,810,549 239,158 979,283 LMPVET Variable Lifestyle Allocation 85% Sub-Account....... 5,758,589 66,979,732 3,730,962 7,599,475 LMPVIT Western Asset Variable Global High Yield Bond Sub-Account.............................................. 12,899,080 106,265,588 18,950,436 5,775,873 MFS VIT Investors Trust Sub-Account........................ 867 15,837 254 957 MFS VIT New Discovery Sub-Account.......................... 2,085 31,394 326 10,422 MFS VIT Research Sub-Account............................... 2,221 36,602 952 2,823 MIST AllianceBernstein Global Dynamic Allocation Sub-Account.............................................. 288,647,584 2,874,906,144 339,151,646 70,031,864 MIST American Funds Balanced Allocation Sub-Account........ 300,384,157 2,654,037,106 288,642,114 273,202,760
(a) For the period April 29, 2013 to December 31, 2013. 109 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, 2013 DECEMBER 31, 2013 ------------------------------ ------------------------------ COST OF PROCEEDS SHARES COST ($) PURCHASES ($) FROM SALES ($) ------------- ------------- ------------- -------------- MIST American Funds Growth Allocation Sub-Account.......... 156,668,590 1,261,388,927 187,273,795 118,934,248 MIST American Funds Growth Sub-Account..................... 50,753,348 408,915,751 57,650,347 93,433,662 MIST American Funds Moderate Allocation Sub-Account........ 162,126,988 1,481,324,840 132,089,031 168,608,325 MIST AQR Global Risk Balanced Sub-Account.................. 309,084,305 3,317,257,824 431,509,043 576,853,585 MIST BlackRock Global Tactical Strategies Sub-Account...... 493,925,687 4,834,010,333 498,847,226 226,893,346 MIST BlackRock High Yield Sub-Account...................... 30,167,540 248,786,488 75,760,990 84,974,024 MIST BlackRock Large Cap Core Sub-Account.................. 1,321,838 12,022,012 2,361,192 4,326,602 MIST Clarion Global Real Estate Sub-Account................ 16,471,958 186,042,092 33,695,540 21,791,337 MIST ClearBridge Aggressive Growth II Sub-Account.......... 1,236,585 87,905,039 25,671,132 39,209,879 MIST ClearBridge Aggressive Growth Sub-Account............. 34,402,945 285,713,931 64,106,785 39,794,082 MIST Goldman Sachs Mid Cap Value Sub-Account............... 9,595,851 125,486,222 24,251,997 31,403,632 MIST Harris Oakmark International Sub-Account.............. 36,800,509 503,074,943 71,257,624 62,098,633 MIST Invesco Balanced-Risk Allocation Sub-Account.......... 79,693,833 828,213,545 299,761,843 123,809,111 MIST Invesco Comstock Sub-Account.......................... 30,548,350 269,995,421 33,140,328 30,436,307 MIST Invesco Mid Cap Value Sub-Account..................... 7,049,086 100,237,071 7,632,318 26,084,710 MIST Invesco Small Cap Growth Sub-Account.................. 15,999,668 212,350,271 40,481,426 37,989,461 MIST JPMorgan Core Bond Sub-Account........................ 30,726,105 322,736,031 368,984,257 390,876,104 MIST JPMorgan Global Active Allocation Sub-Account......... 64,494,802 685,972,211 411,902,306 1,046,679 MIST JPMorgan Small Cap Value Sub-Account.................. 1,398,723 18,072,538 1,214,511 4,652,727 MIST Loomis Sayles Global Markets Sub-Account.............. 12,202,424 138,603,312 12,633,756 33,927,527 MIST Lord Abbett Bond Debenture Sub-Account................ 19,329,797 235,054,182 46,184,123 55,703,031 MIST Met/Eaton Vance Floating Rate Sub-Account............. 7,863,380 81,726,682 38,100,553 9,085,203 MIST Met/Franklin Low Duration Total Return Sub-Account.... 13,988,758 139,401,727 103,155,123 6,840,638 MIST Met/Templeton International Bond Sub-Account.......... 4,491,942 52,667,789 6,151,132 9,956,495 MIST MetLife Aggressive Strategy Sub-Account............... 49,251,609 505,233,905 31,238,424 66,673,079 MIST MetLife Balanced Plus Sub-Account..................... 545,623,587 5,483,698,749 1,326,655,191 29,363,967 MIST MetLife Balanced Strategy Sub-Account................. 595,887,355 6,184,791,946 179,740,906 582,662,431 MIST MetLife Defensive Strategy Sub-Account................ 166,200,441 1,713,481,836 126,802,565 556,770,928 MIST MetLife Growth Strategy Sub-Account................... 481,641,251 5,446,815,057 810,166,419 458,140,055 MIST MetLife Moderate Strategy Sub-Account................. 285,069,002 2,916,035,754 125,354,093 359,014,276 MIST MetLife Multi-Index Targeted Risk Sub-Account......... 18,679,458 202,610,249 191,498,331 48,099 MIST MFS Emerging Markets Equity Sub-Account............... 44,365,465 429,598,932 57,899,097 24,196,300 MIST MFS Research International Sub-Account................ 27,847,098 301,254,346 12,515,033 40,936,928 MIST Morgan Stanley Mid Cap Growth Sub-Account............. 15,499,415 162,566,616 20,430,987 9,125,428 MIST Oppenheimer Global Equity Sub-Account................. 3,800,227 65,786,011 61,353,234 5,032,293 MIST PIMCO Inflation Protected Bond Sub-Account............ 83,143,341 917,851,914 113,879,964 147,677,711 MIST PIMCO Total Return Sub-Account........................ 170,631,086 2,023,321,900 195,309,222 261,044,205 MIST Pioneer Fund Sub-Account.............................. 15,949,343 210,761,236 32,571,171 21,029,394 MIST Pioneer Strategic Income Sub-Account.................. 82,625,885 876,148,740 186,717,427 40,347,909 MIST Pyramis Government Income Sub-Account................. 69,421,888 747,414,598 57,541,272 248,471,876 MIST Pyramis Managed Risk Sub-Account (a).................. 7,404,844 76,527,808 77,271,884 733,179 MIST Schroders Global Multi-Asset Sub-Account.............. 37,615,021 401,061,129 226,828,734 15,434,410 MIST SSgA Growth and Income ETF Sub-Account................ 122,339,438 1,318,083,174 105,350,093 161,848,161 MIST SSgA Growth ETF Sub-Account........................... 39,535,139 399,830,404 57,552,201 48,415,555 MIST T. Rowe Price Large Cap Value Sub-Account............. 20,556,073 503,855,462 37,831,867 83,996,502 MIST T. Rowe Price Mid Cap Growth Sub-Account.............. 48,128,833 393,410,732 44,118,921 76,252,053 MIST Third Avenue Small Cap Value Sub-Account.............. 15,828,125 220,268,628 14,374,066 56,713,788 MSF Baillie Gifford International Stock Sub-Account........ 29,234,216 273,113,712 311,182,861 42,899,023 MSF Barclays Aggregate Bond Index Sub-Account.............. 15,178,976 166,570,569 38,878,822 18,832,470 MSF BlackRock Bond Income Sub-Account...................... 538,412 57,649,078 12,957,166 9,373,622 MSF BlackRock Capital Appreciation Sub-Account............. 403,724 10,024,567 2,229,406 2,708,887 MSF BlackRock Large Cap Value Sub-Account.................. 315,551 3,404,072 669,760 572,388 MSF BlackRock Money Market Sub-Account..................... 4,613,432 461,343,188 176,370,619 284,137,550 MSF Davis Venture Value Sub-Account........................ 15,402,597 420,921,811 31,456,149 105,816,524 MSF Frontier Mid Cap Growth Sub-Account (a)................ 2,404,461 69,147,627 81,218,276 13,293,468
(a) For the period April 29, 2013 to December 31, 2013. 110 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, 2013 DECEMBER 31, 2013 ------------------------------ ------------------------------ COST OF PROCEEDS SHARES COST ($) PURCHASES ($) FROM SALES ($) ------------- ------------- -------------- -------------- MSF Jennison Growth Sub-Account............................ 37,390,273 429,630,599 69,265,860 113,538,069 MSF Loomis Sayles Small Cap Core Sub-Account............... 46,607 10,168,424 3,048,297 4,215,033 MSF Loomis Sayles Small Cap Growth Sub-Account............. 14,168 188,007 211,819 74,553 MSF Met/Artisan Mid Cap Value Sub-Account.................. 1,091,073 231,985,737 27,383,064 33,513,723 MSF Met/Dimensional International Small Company Sub-Account.............................................. 3,950,002 55,914,922 10,427,096 8,833,121 MSF MetLife Conservative Allocation Sub-Account............ 626,354 6,754,260 919,266 3,127,833 MSF MetLife Conservative to Moderate Allocation Sub-Account.............................................. 599,876 6,335,265 483,309 849,587 MSF MetLife Mid Cap Stock Index Sub-Account................ 6,902,966 92,816,482 28,544,426 18,949,282 MSF MetLife Moderate Allocation Sub-Account................ 3,261,902 36,107,143 2,229,013 5,177,503 MSF MetLife Moderate to Aggressive Allocation Sub-Account.. 3,987,522 44,870,344 1,095,801 6,663,266 MSF MetLife Stock Index Sub-Account........................ 13,516,120 389,602,723 60,002,522 68,223,696 MSF MFS Total Return Sub-Account........................... 284,564 39,885,789 10,177,103 5,437,805 MSF MFS Value Sub-Account.................................. 14,761,892 212,369,045 193,949,379 28,267,507 MSF MSCI EAFE Index Sub-Account............................ 8,270,194 94,840,872 27,821,011 13,494,237 MSF Neuberger Berman Genesis Sub-Account................... 9,637,909 136,490,541 142,024,747 20,468,073 MSF Russell 2000 Index Sub-Account......................... 7,254,916 97,425,995 27,526,307 13,260,092 MSF T. Rowe Price Large Cap Growth Sub-Account............. 6,246,221 121,943,961 135,856,780 16,437,400 MSF T. Rowe Price Small Cap Growth Sub-Account............. 452,030 6,447,448 2,107,576 2,155,378 MSF Van Eck Global Natural Resources Sub-Account........... 7,538,920 111,407,740 11,063,333 27,639,732 MSF Western Asset Management U.S. Government Sub-Account.............................................. 24,419,140 293,673,478 28,293,902 40,921,526 Neuberger Berman Genesis Sub-Account....................... 170 6,315 744 84 Oppenheimer Main Street Small Cap Fund/VA Sub-Account...... 4,469,453 66,979,251 4,589,759 12,914,070 Oppenheimer VA Core Bond Sub-Account....................... 1,105 11,403 459 403 Oppenheimer VA Global Strategic Income Sub-Account......... 835 4,111 226 72 Oppenheimer VA Main Street Sub-Account..................... 3,330 68,347 1,023 5,420 Oppenheimer VA Money Sub-Account........................... 4,008 4,008 1 108,958 Pioneer VCT Disciplined Value Sub-Account.................. 140,183 1,349,515 138,952 691,311 Pioneer VCT Emerging Markets Sub-Account................... 29,182 698,961 114,121 161,395 Pioneer VCT Equity Income Sub-Account...................... 23,453 418,014 15,014 63,283 Pioneer VCT Ibbotson Growth Allocation Sub-Account......... 1,594,684 12,459,847 731,230 2,137,215 Pioneer VCT Ibbotson Moderate Allocation Sub-Account....... 2,404,547 20,332,710 858,176 2,875,809 Pioneer VCT Mid Cap Value Sub-Account...................... 3,154,897 54,265,442 2,889,298 5,251,801 Pioneer VCT Real Estate Shares Sub-Account................. 13,450 194,425 45,554 18,061 T. Rowe Price Growth Stock Sub-Account..................... 158,630 4,682,926 561,068 1,031,842 T. Rowe Price International Stock Sub-Account.............. 40,209 555,287 25,016 91,068 T. Rowe Price Prime Reserve Sub-Account.................... 558,450 558,450 508,210 672,907 UIF U.S. Real Estate Sub-Account........................... 6,415,183 102,746,012 16,458,164 6,599,672
(a) For the period April 29, 2013 to December 31, 2013. 111 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, 2013 AND 2012:
ALGER SMALL CAP GROWTH AMERICAN FUNDS BOND SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------- 2013 2012 2013 2012 -------------- --------------- --------------- -------------- Units beginning of year............ 4,795,545 5,212,661 7,687,811 6,703,194 Units issued and transferred from other funding options...... 231,164 325,189 2,005,667 2,184,489 Units redeemed and transferred to other funding options........... (639,591) (742,305) (1,331,533) (1,199,872) -------------- --------------- --------------- -------------- Units end of year.................. 4,387,118 4,795,545 8,361,945 7,687,811 ============== =============== =============== ============== AMERICAN FUNDS AMERICAN FUNDS GLOBAL GROWTH GLOBAL SMALL CAPITALIZATION SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------- 2013 2012 2013 2012 --------------- -------------- --------------- -------------- Units beginning of year............ 8,485,913 8,205,329 3,385,796 3,080,674 Units issued and transferred from other funding options...... 1,261,036 1,718,893 652,214 863,669 Units redeemed and transferred to other funding options........... (1,413,396) (1,438,309) (662,267) (558,547) --------------- -------------- --------------- -------------- Units end of year.................. 8,333,553 8,485,913 3,375,743 3,385,796 =============== ============== =============== ============== AMERICAN FUNDS GROWTH AMERICAN FUNDS GROWTH-INCOME SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------------------- 2013 2012 2013 2012 --------------- --------------- -------------- --------------- Units beginning of year............ 4,113,319 3,976,212 2,745,842 2,773,925 Units issued and transferred from other funding options...... 453,387 749,508 297,744 440,944 Units redeemed and transferred to other funding options........... (629,462) (612,401) (461,701) (469,027) --------------- --------------- -------------- --------------- Units end of year.................. 3,937,244 4,113,319 2,581,885 2,745,842 =============== =============== ============== ===============
DWS I INTERNATIONAL FEDERATED HIGH INCOME BOND SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 2,040,232 2,245,605 2,556 3,549 Units issued and transferred from other funding options...... 147,844 214,706 -- -- Units redeemed and transferred to other funding options........... (299,464) (420,079) (11) (993) --------------- --------------- --------------- --------------- Units end of year.................. 1,888,612 2,040,232 2,545 2,556 =============== =============== =============== =============== FEDERATED KAUFMAN FIDELITY VIP ASSET MANAGER SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 6,002 12,138 6,517,939 7,353,740 Units issued and transferred from other funding options...... -- -- 203,227 274,275 Units redeemed and transferred to other funding options........... (166) (6,136) (835,636) (1,110,076) --------------- --------------- --------------- --------------- Units end of year.................. 5,836 6,002 5,885,530 6,517,939 =============== =============== =============== =============== FIDELITY VIP CONTRAFUND FIDELITY VIP EQUITY-INCOME SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 15,604,750 15,588,853 400,352 460,289 Units issued and transferred from other funding options...... 4,408,947 2,218,180 5,137 3,099 Units redeemed and transferred to other funding options........... (2,296,246) (2,202,283) (63,929) (63,036) --------------- --------------- --------------- --------------- Units end of year.................. 17,717,451 15,604,750 341,560 400,352 =============== =============== =============== ===============
FIDELITY VIP FUNDSMANAGER 50% FIDELITY VIP FUNDSMANAGER 60% SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 (a) 2013 2012 --------------- --------------- --------------- -------------- Units beginning of year............ 39,080,828 -- 345,636,001 272,464,191 Units issued and transferred from other funding options...... 123,377,437 39,341,051 492,775 86,542,932 Units redeemed and transferred to other funding options........... (3,504,235) (260,223) (12,977,090) (13,371,122) --------------- --------------- --------------- -------------- Units end of year.................. 158,954,030 39,080,828 333,151,686 345,636,001 =============== =============== =============== ============== FIDELITY VIP GROWTH FIDELITY VIP INDEX 500 SUB-ACCOUNT SUB-ACCOUNT ------------------------------- -------------------------------- 2013 2012 2013 2012 -------------- --------------- --------------- --------------- Units beginning of year............ 9,085,626 9,918,387 3,530,426 3,976,112 Units issued and transferred from other funding options...... 341,709 730,546 21,793 28,294 Units redeemed and transferred to other funding options........... (1,232,955) (1,563,307) (460,663) (473,980) -------------- --------------- --------------- --------------- Units end of year.................. 8,194,380 9,085,626 3,091,556 3,530,426 ============== =============== =============== =============== FIDELITY VIP MID CAP FIDELITY VIP MONEY MARKET SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 7,598,912 6,289,465 8,041,430 8,001,050 Units issued and transferred from other funding options...... 1,446,862 2,176,791 139,410,710 120,413,155 Units redeemed and transferred to other funding options........... (1,253,103) (867,344) (139,144,730) (120,372,775) --------------- --------------- --------------- --------------- Units end of year.................. 7,792,671 7,598,912 8,307,410 8,041,430 =============== =============== =============== ===============
FTVIPT FRANKLIN FIDELITY VIP OVERSEAS INCOME SECURITIES SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 509,517 540,072 4,708,870 4,290,472 Units issued and transferred from other funding options...... 12,503 26,857 860,767 1,191,730 Units redeemed and transferred to other funding options........... (74,877) (57,412) (649,971) (773,332) --------------- --------------- --------------- --------------- Units end of year.................. 447,143 509,517 4,919,666 4,708,870 =============== =============== =============== =============== FTVIPT FRANKLIN FTVIPT MUTUAL SHARES SMALL CAP VALUE SECURITIES SECURITIES SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 8,321,925 5,710,847 5,768,385 5,952,328 Units issued and transferred from other funding options...... 2,576,537 3,738,614 550,522 965,771 Units redeemed and transferred to other funding options........... (1,714,039) (1,127,536) (841,541) (1,149,714) --------------- --------------- --------------- --------------- Units end of year.................. 9,184,423 8,321,925 5,477,366 5,768,385 =============== =============== =============== =============== FTVIPT TEMPLETON FTVIPT TEMPLETON FOREIGN SECURITIES GLOBAL BOND SECURITIES SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 2,730,167 2,720,421 11,067,808 8,104,261 Units issued and transferred from other funding options...... 184,075 444,001 3,547,855 4,284,150 Units redeemed and transferred to other funding options........... (457,225) (434,255) (1,664,761) (1,320,603) --------------- --------------- --------------- --------------- Units end of year.................. 2,457,017 2,730,167 12,950,902 11,067,808 =============== =============== =============== ===============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. 112 113 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, 2013 AND 2012:
INVESCO V.I. AMERICAN FRANCHISE INVESCO V.I. AMERICAN VALUE SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- --------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- --------------- Units beginning of year............ 28,015 18,874 5,515,798 4,490,470 Units issued and transferred from other funding options...... 5 17,706 1,405,833 1,827,974 Units redeemed and transferred to other funding options........... (5,873) (8,565) (958,158) (802,646) ---------------- ---------------- ---------------- --------------- Units end of year.................. 22,147 28,015 5,963,473 5,515,798 ================ ================ ================ =============== INVESCO V.I. CORE EQUITY INVESCO V.I. EQUITY AND INCOME SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ---------------------------------- 2013 2012 2013 2012 --------------- --------------- ---------------- ---------------- Units beginning of year............ 49,005 63,191 29,563,858 27,370,136 Units issued and transferred from other funding options...... 1 18 5,739,587 6,876,521 Units redeemed and transferred to other funding options........... (9,171) (14,204) (3,975,190) (4,682,799) --------------- --------------- ---------------- ---------------- Units end of year.................. 39,835 49,005 31,328,255 29,563,858 =============== =============== ================ ================ INVESCO V.I. GLOBAL REAL ESTATE INVESCO V.I. GROWTH AND INCOME SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- ---------------------------------- 2013 2012 2013 2012 ---------------- ---------------- ---------------- ---------------- Units beginning of year............ 2,556,360 1,863,096 13,407,203 11,777,382 Units issued and transferred from other funding options...... 1,352,296 1,078,991 2,432,918 3,449,278 Units redeemed and transferred to other funding options........... (654,076) (385,727) (2,040,267) (1,819,457) ---------------- ---------------- ---------------- ---------------- Units end of year.................. 3,254,580 2,556,360 13,799,854 13,407,203 ================ ================ ================ ================
INVESCO V.I. INTERNATIONAL GROWTH JANUS ASPEN GLOBAL RESEARCH SUB-ACCOUNT SUB-ACCOUNT --------------------------------- ------------------------------- 2013 2012 2013 2012 -------------- -------------- -------------- --------------- Units beginning of year............ 8,127,475 6,481,068 769 769 Units issued and transferred from other funding options...... 1,760,912 2,444,775 -- -- Units redeemed and transferred to other funding options........... (987,033) (798,368) (48) -- -------------- -------------- -------------- --------------- Units end of year.................. 8,901,354 8,127,475 721 769 ============== ============== ============== =============== LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE VARIABLE AGGRESSIVE GROWTH VARIABLE ALL CAP VALUE SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 11,687,754 11,855,614 3,081,671 3,213,146 Units issued and transferred from other funding options...... 2,702,461 2,474,667 316,163 465,469 Units redeemed and transferred to other funding options........... (2,411,214) (2,642,527) (475,543) (596,944) --------------- --------------- --------------- --------------- Units end of year.................. 11,979,001 11,687,754 2,922,291 3,081,671 =============== =============== =============== =============== LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE VARIABLE APPRECIATION VARIABLE EQUITY INCOME SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- -------------- Units beginning of year............ 7,908,912 7,021,537 9,055,914 8,013,455 Units issued and transferred from other funding options...... 1,753,644 2,091,600 2,599,732 2,895,083 Units redeemed and transferred to other funding options........... (1,058,149) (1,204,225) (1,411,492) (1,852,624) --------------- --------------- --------------- -------------- Units end of year.................. 8,604,407 7,908,912 10,244,154 9,055,914 =============== =============== =============== ==============
LMPVET CLEARBRIDGE VARIABLE LMPVET CLEARBRIDGE VARIABLE LARGE CAP GROWTH LARGE CAP VALUE SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------------------- 2013 2012 2013 2012 --------------- --------------- -------------- --------------- Units beginning of year............ 283,429 363,040 286,427 265,335 Units issued and transferred from other funding options...... 16,933 26,721 91,925 92,095 Units redeemed and transferred to other funding options........... (57,408) (106,332) (58,751) (71,003) --------------- --------------- -------------- --------------- Units end of year.................. 242,954 283,429 319,601 286,427 =============== =============== ============== =============== LMPVET CLEARBRIDGE VARIABLE LMPVET INVESTMENT COUNSEL SMALL CAP GROWTH VARIABLE SOCIAL AWARENESS SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------------------- 2013 2012 2013 2012 --------------- --------------- -------------- --------------- Units beginning of year............ 3,457,289 2,686,955 9,185 17,377 Units issued and transferred from other funding options...... 1,487,008 1,387,037 363 341 Units redeemed and transferred to other funding options........... (841,470) (616,703) (1,616) (8,533) --------------- --------------- -------------- --------------- Units end of year.................. 4,102,827 3,457,289 7,932 9,185 =============== =============== ============== =============== LMPVET VARIABLE LMPVET VARIABLE LIFESTYLE ALLOCATION 50% LIFESTYLE ALLOCATION 70% SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------- 2013 2012 2013 2012 --------------- -------------- -------------- --------------- Units beginning of year............ 1,699,443 1,414,982 162,342 219,583 Units issued and transferred from other funding options...... 532,901 529,688 12,965 1,501 Units redeemed and transferred to other funding options........... (220,911) (245,227) (53,912) (58,742) --------------- -------------- -------------- --------------- Units end of year.................. 2,011,433 1,699,443 121,395 162,342 =============== ============== ============== ===============
LMPVET VARIABLE LIFESTYLE LMPVIT WESTERN ASSET VARIABLE ALLOCATION 85% GLOBAL HIGH YIELD BOND SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------ 2013 2012 2013 2012 --------------- -------------- -------------- -------------- Units beginning of year............ 5,015,187 4,732,454 4,039,328 3,594,817 Units issued and transferred from other funding options...... 343,106 820,273 1,173,324 1,232,020 Units redeemed and transferred to other funding options........... (568,108) (537,540) (825,774) (787,509) --------------- -------------- -------------- -------------- Units end of year.................. 4,790,185 5,015,187 4,386,878 4,039,328 =============== ============== ============== ============== MFS VIT INVESTORS TRUST MFS VIT NEW DISCOVERY SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 3,616 7,050 4,161 4,939 Units issued and transferred from other funding options...... -- -- -- -- Units redeemed and transferred to other funding options........... (99) (3,434) (867) (778) --------------- --------------- --------------- --------------- Units end of year.................. 3,517 3,616 3,294 4,161 =============== =============== =============== =============== MIST ALLIANCEBERNSTEIN GLOBAL MFS VIT RESEARCH DYNAMIC ALLOCATION SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 8,335 8,675 267,334,005 168,434,681 Units issued and transferred from other funding options...... 92 -- 49,782,034 116,824,775 Units redeemed and transferred to other funding options........... (295) (340) (30,859,953) (17,925,451) --------------- --------------- --------------- --------------- Units end of year.................. 8,132 8,335 286,256,086 267,334,005 =============== =============== =============== ===============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. 114 115 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, 2013 AND 2012:
MIST AMERICAN MIST AMERICAN FUNDS FUNDS BALANCED ALLOCATION GROWTH ALLOCATION SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------------------- 2013 2012 2013 2012 --------------- --------------- -------------- --------------- Units beginning of year............ 292,605,761 306,967,734 149,020,463 159,224,115 Units issued and transferred from other funding options...... 18,431,005 19,362,093 20,136,813 14,465,078 Units redeemed and transferred to other funding options........... (34,206,231) (33,724,066) (21,362,764) (24,668,730) --------------- --------------- -------------- --------------- Units end of year.................. 276,830,535 292,605,761 147,794,512 149,020,463 =============== =============== ============== =============== MIST AMERICAN FUNDS MIST AMERICAN FUNDS GROWTH MODERATE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT ------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- -------------- --------------- --------------- Units beginning of year............ 54,812,434 64,256,598 159,499,085 168,982,398 Units issued and transferred from other funding options...... 19,877,224 8,420,717 6,661,377 10,897,945 Units redeemed and transferred to other funding options........... (15,095,840) (17,864,881) (18,387,247) (20,381,258) --------------- -------------- --------------- --------------- Units end of year.................. 59,593,818 54,812,434 147,773,215 159,499,085 =============== ============== =============== =============== MIST AQR GLOBAL RISK MIST BLACKROCK GLOBAL BALANCED TACTICAL STRATEGIES SUB-ACCOUNT SUB-ACCOUNT ------------------------------- -------------------------------- 2013 2012 2013 2012 -------------- --------------- --------------- --------------- Units beginning of year............ 324,843,850 179,038,392 471,913,542 297,189,715 Units issued and transferred from other funding options...... 59,582,950 166,064,494 76,646,145 206,814,495 Units redeemed and transferred to other funding options........... (89,318,604) (20,259,036) (60,984,960) (32,090,668) -------------- --------------- --------------- --------------- Units end of year.................. 295,108,196 324,843,850 487,574,727 471,913,542 ============== =============== =============== ===============
MIST BLACKROCK HIGH YIELD MIST BLACKROCK LARGE CAP CORE SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------------------- 2013 2012 2013 2012 --------------- --------------- -------------- --------------- Units beginning of year............ 11,949,833 10,891,616 1,423,242 1,414,721 Units issued and transferred from other funding options...... 4,448,298 6,729,999 248,426 448,336 Units redeemed and transferred to other funding options........... (5,614,449) (5,671,782) (411,414) (439,815) --------------- --------------- -------------- --------------- Units end of year.................. 10,783,682 11,949,833 1,260,254 1,423,242 =============== =============== ============== =============== MIST CLEARBRIDGE MIST CLARION GLOBAL REAL ESTATE AGGRESSIVE GROWTH II SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- -------------- --------------- --------------- Units beginning of year............ 10,967,900 11,304,866 687,043 543,584 Units issued and transferred from other funding options...... 3,149,547 2,105,122 252,978 362,623 Units redeemed and transferred to other funding options........... (3,017,856) (2,442,088) (335,228) (219,164) --------------- -------------- --------------- --------------- Units end of year.................. 11,099,591 10,967,900 604,793 687,043 =============== ============== =============== =============== MIST CLEARBRIDGE MIST GOLDMAN SACHS AGGRESSIVE GROWTH MID CAP VALUE SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------- 2013 2012 2013 2012 -------------- --------------- --------------- -------------- Units beginning of year............ 33,802,849 35,764,496 8,486,283 9,263,271 Units issued and transferred from other funding options...... 12,353,599 7,911,776 2,123,717 1,124,342 Units redeemed and transferred to other funding options........... (9,856,765) (9,873,423) (2,670,616) (1,901,330) -------------- --------------- --------------- -------------- Units end of year.................. 36,299,683 33,802,849 7,939,384 8,486,283 ============== =============== =============== ==============
MIST HARRIS OAKMARK MIST INVESCO INTERNATIONAL BALANCED-RISK ALLOCATION SUB-ACCOUNT SUB-ACCOUNT ------------------------------ ------------------------------- 2013 2012 2013 2012 (b) -------------- -------------- --------------- -------------- Units beginning of year............ 25,722,293 28,033,038 631,214,101 -- Units issued and transferred from other funding options...... 6,769,558 5,193,899 443,294,590 650,591,123 Units redeemed and transferred to other funding options........... (6,722,399) (7,504,644) (273,647,738) (19,377,022) -------------- -------------- --------------- -------------- Units end of year.................. 25,769,452 25,722,293 800,860,953 631,214,101 ============== ============== =============== ============== MIST INVESCO COMSTOCK MIST INVESCO MID CAP VALUE SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 26,662,653 25,137,797 5,175,603 5,366,862 Units issued and transferred from other funding options...... 6,360,415 7,479,612 726,776 997,969 Units redeemed and transferred to other funding options........... (6,133,804) (5,954,756) (1,282,477) (1,189,228) --------------- --------------- --------------- --------------- Units end of year.................. 26,889,264 26,662,653 4,619,902 5,175,603 =============== =============== =============== =============== MIST INVESCO SMALL CAP GROWTH MIST JPMORGAN CORE BOND SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------- 2013 2012 2013 2012 -------------- --------------- -------------- --------------- Units beginning of year............ 13,528,657 13,942,780 31,242,391 32,528,572 Units issued and transferred from other funding options...... 3,270,520 3,212,680 69,538,044 7,302,721 Units redeemed and transferred to other funding options........... (3,796,043) (3,626,803) (71,340,945) (8,588,902) -------------- --------------- -------------- --------------- Units end of year.................. 13,003,134 13,528,657 29,439,490 31,242,391 ============== =============== ============== ===============
MIST JPMORGAN GLOBAL ACTIVE ALLOCATION MIST JPMORGAN SMALL CAP VALUE SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------------------- 2013 2012 (b) 2013 2012 --------------- --------------- --------------- -------------- Units beginning of year............ 269,034,003 -- 1,643,159 1,650,824 Units issued and transferred from other funding options...... 441,036,411 274,291,117 124,281 241,604 Units redeemed and transferred to other funding options........... (60,216,445) (5,257,114) (311,857) (249,269) --------------- --------------- --------------- -------------- Units end of year.................. 649,853,969 269,034,003 1,455,583 1,643,159 =============== =============== =============== ============== MIST LOOMIS SAYLES MIST LORD ABBETT GLOBAL MARKETS BOND DEBENTURE SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------------------ 2013 2012 2013 2012 --------------- --------------- -------------- -------------- Units beginning of year............ 12,318,466 13,161,956 10,178,078 10,848,076 Units issued and transferred from other funding options...... 1,930,340 2,618,481 2,088,131 1,371,896 Units redeemed and transferred to other funding options........... (3,405,983) (3,461,971) (2,925,191) (2,041,894) --------------- --------------- -------------- -------------- Units end of year.................. 10,842,823 12,318,466 9,341,018 10,178,078 =============== =============== ============== ============== MIST MET/EATON VANCE MIST MET/FRANKLIN FLOATING RATE LOW DURATION TOTAL RETURN SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------------------ 2013 2012 2013 2012 --------------- --------------- -------------- -------------- Units beginning of year............ 5,007,151 4,263,176 4,349,231 2,835,514 Units issued and transferred from other funding options...... 4,910,363 2,295,738 13,737,199 2,859,109 Units redeemed and transferred to other funding options........... (2,397,545) (1,551,763) (4,035,637) (1,345,392) --------------- --------------- -------------- -------------- Units end of year.................. 7,519,969 5,007,151 14,050,793 4,349,231 =============== =============== ============== ==============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. 116 117 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, 2013 AND 2012:
MIST MET/TEMPLETON MIST METLIFE INTERNATIONAL BOND AGGRESSIVE STRATEGY SUB-ACCOUNT SUB-ACCOUNT ------------------------------ ------------------------------- 2013 2012 2013 2012 -------------- -------------- -------------- --------------- Units beginning of year............ 4,238,395 4,276,073 44,655,767 49,390,389 Units issued and transferred from other funding options...... 985,885 1,128,325 4,811,432 4,301,820 Units redeemed and transferred to other funding options........... (1,318,951) (1,166,003) (7,015,919) (9,036,442) -------------- -------------- -------------- --------------- Units end of year.................. 3,905,329 4,238,395 42,451,280 44,655,767 ============== ============== ============== =============== MIST METLIFE MIST METLIFE BALANCED PLUS BALANCED STRATEGY SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 438,994,467 257,076,022 550,560,779 592,824,603 Units issued and transferred from other funding options...... 154,477,158 208,342,594 36,007,453 38,366,523 Units redeemed and transferred to other funding options........... (46,374,998) (26,424,149) (67,366,811) (80,630,347) --------------- --------------- --------------- --------------- Units end of year.................. 547,096,627 438,994,467 519,201,421 550,560,779 =============== =============== =============== =============== MIST METLIFE MIST METLIFE DEFENSIVE STRATEGY GROWTH STRATEGY SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 178,585,503 186,262,512 407,576,342 446,977,194 Units issued and transferred from other funding options...... 12,195,405 36,676,249 80,860,643 23,060,082 Units redeemed and transferred to other funding options........... (50,200,387) (44,353,258) (53,560,238) (62,460,934) --------------- --------------- --------------- --------------- Units end of year.................. 140,580,521 178,585,503 434,876,747 407,576,342 =============== =============== =============== ===============
MIST METLIFE MIST METLIFE MULTI-INDEX MODERATE STRATEGY TARGETED RISK SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------ 2013 2012 2013 2012 (c) -------------- --------------- -------------- -------------- Units beginning of year............ 266,549,696 281,377,647 11,094,386 -- Units issued and transferred from other funding options...... 19,283,696 27,689,670 150,360,164 11,117,372 Units redeemed and transferred to other funding options........... (38,726,315) (42,517,621) (7,504,407) (22,986) -------------- --------------- -------------- -------------- Units end of year.................. 247,107,077 266,549,696 153,950,143 11,094,386 ============== =============== ============== ============== MIST MFS MIST MFS EMERGING MARKETS EQUITY RESEARCH INTERNATIONAL SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------- 2013 2012 2013 2012 --------------- -------------- --------------- -------------- Units beginning of year............ 38,352,212 37,004,554 21,667,563 22,841,018 Units issued and transferred from other funding options...... 12,177,917 9,475,344 2,142,621 3,053,885 Units redeemed and transferred to other funding options........... (8,906,952) (8,127,686) (4,193,701) (4,227,340) --------------- -------------- --------------- -------------- Units end of year.................. 41,623,177 38,352,212 19,616,483 21,667,563 =============== ============== =============== ============== MIST MORGAN STANLEY MIST OPPENHEIMER MID CAP GROWTH GLOBAL EQUITY SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------- 2013 2012 2013 2012 --------------- -------------- --------------- -------------- Units beginning of year............ 12,225,316 8,735,505 500,711 559,531 Units issued and transferred from other funding options...... 3,100,228 4,900,360 3,443,548 38,793 Units redeemed and transferred to other funding options........... (2,225,641) (1,410,549) (816,539) (97,613) --------------- -------------- --------------- -------------- Units end of year.................. 13,099,903 12,225,316 3,127,720 500,711 =============== ============== =============== ==============
MIST PIMCO MIST PIMCO INFLATION PROTECTED BOND TOTAL RETURN SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------- 2013 2012 2013 2012 -------------- --------------- -------------- --------------- Units beginning of year............ 64,013,091 63,087,877 128,302,689 132,311,947 Units issued and transferred from other funding options...... 14,947,068 16,960,767 24,830,457 27,859,521 Units redeemed and transferred to other funding options........... (21,311,654) (16,035,553) (34,713,308) (31,868,779) -------------- --------------- -------------- --------------- Units end of year.................. 57,648,505 64,013,091 118,419,838 128,302,689 ============== =============== ============== =============== MIST PIONEER MIST PIONEER FUND STRATEGIC INCOME SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------- 2013 2012 2013 2012 -------------- --------------- -------------- --------------- Units beginning of year............ 11,331,680 9,480,402 29,638,373 24,444,162 Units issued and transferred from other funding options...... 3,073,514 3,453,766 17,942,693 10,611,047 Units redeemed and transferred to other funding options........... (1,972,643) (1,602,488) (6,131,045) (5,416,836) -------------- --------------- -------------- --------------- Units end of year.................. 12,432,551 11,331,680 41,450,021 29,638,373 ============== =============== ============== =============== MIST PYRAMIS MIST PYRAMIS GOVERNMENT INCOME MANAGED RISK SUB-ACCOUNT SUB-ACCOUNT ------------------------------- -------------- 2013 2012 2013 (d) -------------- --------------- -------------- Units beginning of year............ 88,599,553 45,618,019 -- Units issued and transferred from other funding options...... 20,394,869 64,826,342 7,910,133 Units redeemed and transferred to other funding options........... (39,506,061) (21,844,808) (616,086) -------------- --------------- -------------- Units end of year.................. 69,488,361 88,599,553 7,294,047 ============== =============== ==============
MIST SCHRODERS MIST SSGA GLOBAL MULTI-ASSET GROWTH AND INCOME ETF SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------- 2013 2012 (b) 2013 2012 -------------- --------------- -------------- --------------- Units beginning of year............ 179,641,654 -- 118,446,237 120,297,977 Units issued and transferred from other funding options...... 254,720,312 184,349,381 8,842,539 17,478,592 Units redeemed and transferred to other funding options........... (59,100,608) (4,707,727) (16,853,399) (19,330,332) -------------- --------------- -------------- --------------- Units end of year.................. 375,261,358 179,641,654 110,435,377 118,446,237 ============== =============== ============== =============== MIST T. ROWE PRICE MIST SSGA GROWTH ETF LARGE CAP VALUE SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------- 2013 2012 2013 2012 -------------- --------------- -------------- --------------- Units beginning of year............ 36,733,044 37,984,453 12,231,249 13,446,503 Units issued and transferred from other funding options...... 5,769,705 8,263,310 1,603,300 1,153,503 Units redeemed and transferred to other funding options........... (6,583,525) (9,514,719) (2,513,569) (2,368,757) -------------- --------------- -------------- --------------- Units end of year.................. 35,919,224 36,733,044 11,320,980 12,231,249 ============== =============== ============== =============== MIST T. ROWE PRICE MIST THIRD AVENUE MID CAP GROWTH SMALL CAP VALUE SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------- 2013 2012 2013 2012 -------------- --------------- -------------- --------------- Units beginning of year............ 41,941,697 44,089,511 15,859,523 18,611,699 Units issued and transferred from other funding options...... 6,286,743 7,017,740 1,894,187 1,630,404 Units redeemed and transferred to other funding options........... (10,262,528) (9,165,554) (3,760,994) (4,382,580) -------------- --------------- -------------- --------------- Units end of year.................. 37,965,912 41,941,697 13,992,716 15,859,523 ============== =============== ============== ===============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. 118 119 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, 2013 AND 2012:
MSF BAILLIE GIFFORD MSF BARCLAYS INTERNATIONAL STOCK AGGREGATE BOND INDEX SUB-ACCOUNT SUB-ACCOUNT ------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- -------------- --------------- --------------- Units beginning of year............ 219,106 282,028 10,756,748 8,083,366 Units issued and transferred from other funding options...... 35,014,663 25,473 6,105,533 4,814,657 Units redeemed and transferred to other funding options........... (5,683,952) (88,395) (3,325,344) (2,141,275) --------------- -------------- --------------- --------------- Units end of year.................. 29,549,817 219,106 13,536,937 10,756,748 =============== ============== =============== =============== MSF BLACKROCK MSF BLACKROCK BOND INCOME CAPITAL APPRECIATION SUB-ACCOUNT SUB-ACCOUNT ------------------------------ ------------------------------- 2013 2012 2013 2012 -------------- -------------- --------------- -------------- Units beginning of year............ 1,045,629 953,075 745,728 814,200 Units issued and transferred from other funding options...... 259,586 277,049 149,273 197,460 Units redeemed and transferred to other funding options........... (250,867) (184,495) (173,786) (265,932) -------------- -------------- --------------- -------------- Units end of year.................. 1,054,348 1,045,629 721,215 745,728 ============== ============== =============== ============== MSF BLACKROCK MSF BLACKROCK LARGE CAP VALUE MONEY MARKET SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------------------- 2013 2012 2013 2012 --------------- --------------- -------------- --------------- Units beginning of year............ 230,438 252,494 53,484,009 59,067,302 Units issued and transferred from other funding options...... 39,765 44,601 42,460,926 43,722,394 Units redeemed and transferred to other funding options........... (45,013) (66,657) (51,615,737) (49,305,687) --------------- --------------- -------------- --------------- Units end of year.................. 225,190 230,438 44,329,198 53,484,009 =============== =============== ============== ===============
MSF FRONTIER MSF DAVIS VENTURE VALUE MID CAP GROWTH MSF JENNISON GROWTH SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT -------------------------------- --------------- ------------------------------- 2013 2012 2013 (d) 2013 2012 --------------- --------------- --------------- --------------- -------------- Units beginning of year............ 41,401,029 48,368,185 -- 35,125,323 20,877,221 Units issued and transferred from other funding options...... 3,841,529 3,838,366 5,813,772 6,890,303 22,832,898 Units redeemed and transferred to other funding options........... (9,032,971) (10,805,522) (1,046,051) (9,441,429) (8,584,796) --------------- --------------- --------------- --------------- -------------- Units end of year.................. 36,209,587 41,401,029 4,767,721 32,574,197 35,125,323 =============== =============== =============== =============== ============== MSF LOOMIS SAYLES MSF LOOMIS SAYLES SMALL CAP CORE SMALL CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------------------- 2013 2012 2013 2012 (b) --------------- --------------- --------------- -------------- Units beginning of year............ 330,015 310,374 3,306 -- Units issued and transferred from other funding options...... 60,857 98,496 13,578 3,306 Units redeemed and transferred to other funding options........... (107,545) (78,855) (4,378) -- --------------- --------------- --------------- -------------- Units end of year.................. 283,327 330,015 12,506 3,306 =============== =============== =============== ============== MSF MET/ARTISAN MID CAP VALUE SUB-ACCOUNT ------------------------------- 2013 2012 -------------- --------------- Units beginning of year............ 13,419,571 14,599,235 Units issued and transferred from other funding options...... 2,613,526 1,633,041 Units redeemed and transferred to other funding options........... (2,907,307) (2,812,705) -------------- --------------- Units end of year.................. 13,125,790 13,419,571 ============== ===============
MSF MET/DIMENSIONAL MSF METLIFE INTERNATIONAL SMALL COMPANY CONSERVATIVE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 3,203,412 3,336,605 735,694 850,770 Units issued and transferred from other funding options...... 832,391 791,959 51,604 73,579 Units redeemed and transferred to other funding options........... (827,252) (925,152) (230,263) (188,655) --------------- --------------- --------------- --------------- Units end of year.................. 3,208,551 3,203,412 557,035 735,694 =============== =============== =============== =============== MSF METLIFE CONSERVATIVE TO MSF METLIFE MODERATE ALLOCATION MID CAP STOCK INDEX SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 588,986 608,383 4,914,049 4,708,991 Units issued and transferred from other funding options...... 17,083 51,385 2,339,087 1,761,634 Units redeemed and transferred to other funding options........... (55,173) (70,782) (1,751,777) (1,556,576) --------------- --------------- --------------- --------------- Units end of year.................. 550,896 588,986 5,501,359 4,914,049 =============== =============== =============== =============== MSF METLIFE MSF METLIFE MODERATE ALLOCATION MODERATE TO AGGRESSIVE ALLOCATION SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ---------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 3,326,548 3,930,913 4,335,356 4,632,179 Units issued and transferred from other funding options...... 91,734 324,723 54,564 71,059 Units redeemed and transferred to other funding options........... (345,160) (929,088) (462,019) (367,882) --------------- --------------- --------------- --------------- Units end of year.................. 3,073,122 3,326,548 3,927,901 4,335,356 =============== =============== =============== ===============
MSF METLIFE STOCK INDEX MSF MFS TOTAL RETURN MSF MFS VALUE SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------ ------------------------------ ------------------------------ 2013 2012 2013 2012 2013 2012 -------------- -------------- -------------- -------------- -------------- -------------- Units beginning of year............ 29,109,224 25,347,914 730,405 826,212 3,025,966 3,145,406 Units issued and transferred from other funding options...... 6,636,730 14,585,302 213,323 113,713 11,667,337 433,811 Units redeemed and transferred to other funding options........... (7,121,566) (10,823,992) (129,604) (209,520) (2,553,425) (553,251) -------------- -------------- -------------- -------------- -------------- -------------- Units end of year.................. 28,624,388 29,109,224 814,124 730,405 12,139,878 3,025,966 ============== ============== ============== ============== ============== ============== MSF MSCI EAFE INDEX MSF NEUBERGER BERMAN GENESIS MSF RUSSELL 2000 INDEX SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------ ------------------------------ 2013 2012 2013 2012 2013 2012 --------------- -------------- -------------- -------------- -------------- -------------- Units beginning of year............ 7,172,234 6,390,970 626,194 647,811 5,078,788 3,926,223 Units issued and transferred from other funding options...... 3,468,301 2,557,262 8,992,058 169,024 2,243,147 3,452,677 Units redeemed and transferred to other funding options........... (1,830,889) (1,775,998) (1,598,077) (190,641) (1,486,434) (2,300,112) --------------- -------------- -------------- -------------- -------------- -------------- Units end of year.................. 8,809,646 7,172,234 8,020,175 626,194 5,835,501 5,078,788 =============== ============== ============== ============== ============== ==============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. 120 121 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, 2013 AND 2012:
MSF T. ROWE PRICE MSF T. ROWE PRICE LARGE CAP GROWTH SMALL CAP GROWTH SUB-ACCOUNT SUB-ACCOUNT ------------------------------ ------------------------------- 2013 2012 2013 2012 -------------- -------------- --------------- -------------- Units beginning of year............ 39,346 44,809 380,162 417,381 Units issued and transferred from other funding options...... 18,370,073 21,120 74,979 41,453 Units redeemed and transferred to other funding options........... (3,721,339) (26,583) (98,222) (78,672) -------------- -------------- --------------- -------------- Units end of year.................. 14,688,080 39,346 356,919 380,162 ============== ============== =============== ============== MSF VAN ECK MSF WESTERN ASSET MANAGEMENT GLOBAL NATURAL RESOURCES U.S. GOVERNMENT SUB-ACCOUNT SUB-ACCOUNT ------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- -------------- --------------- --------------- Units beginning of year............ 7,200,491 6,910,683 17,244,875 16,038,241 Units issued and transferred from other funding options...... 1,538,360 2,301,818 4,180,259 6,048,090 Units redeemed and transferred to other funding options........... (2,460,184) (2,012,010) (5,007,641) (4,841,456) --------------- -------------- --------------- --------------- Units end of year.................. 6,278,667 7,200,491 16,417,493 17,244,875 =============== ============== =============== =============== NEUBERGER BERMAN GENESIS OPPENHEIMER VA CORE BOND SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------- 2013 2012 2013 2012 -------------- --------------- -------------- --------------- Units beginning of year............ 474 474 1,541 1,878 Units issued and transferred from other funding options...... -- -- -- -- Units redeemed and transferred to other funding options........... -- -- (48) (337) -------------- --------------- -------------- --------------- Units end of year.................. 474 474 1,493 1,541 ============== =============== ============== ===============
OPPENHEIMER VA GLOBAL STRATEGIC INCOME OPPENHEIMER VA MAIN STREET SUB-ACCOUNT SUB-ACCOUNT -------------------------------- ------------------------------- 2013 2012 2013 2012 --------------- --------------- -------------- --------------- Units beginning of year............ 443 443 14,959 22,109 Units issued and transferred from other funding options...... -- -- -- -- Units redeemed and transferred to other funding options........... -- -- (643) (7,150) --------------- --------------- -------------- --------------- Units end of year.................. 443 443 14,316 14,959 =============== =============== ============== =============== OPPENHEIMER VA MAIN STREET SMALL CAP OPPENHEIMER VA MONEY SUB-ACCOUNT SUB-ACCOUNT ------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- -------------- --------------- --------------- Units beginning of year............ 5,041,901 4,964,464 20,150 20,177 Units issued and transferred from other funding options...... 643,815 773,448 -- -- Units redeemed and transferred to other funding options........... (1,030,426) (696,011) (19,427) (27) --------------- -------------- --------------- --------------- Units end of year.................. 4,655,290 5,041,901 723 20,150 =============== ============== =============== =============== PIONEER VCT DISCIPLINED VALUE PIONEER VCT EMERGING MARKETS SUB-ACCOUNT SUB-ACCOUNT ------------------------------- ------------------------------- 2013 2012 2013 2012 -------------- --------------- --------------- -------------- Units beginning of year............ 229,721 238,409 49,333 48,427 Units issued and transferred from other funding options...... 2,035 15,082 8,618 17,770 Units redeemed and transferred to other funding options........... (61,099) (23,770) (11,263) (16,864) -------------- --------------- --------------- -------------- Units end of year.................. 170,657 229,721 46,688 49,333 ============== =============== =============== ==============
PIONEER VCT PIONEER VCT EQUITY INCOME IBBOTSON GROWTH ALLOCATION SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 24,722 17,862 1,199,751 1,225,572 Units issued and transferred from other funding options...... 147 7,715 24,774 43,759 Units redeemed and transferred to other funding options........... (2,177) (855) (109,548) (69,580) --------------- --------------- --------------- --------------- Units end of year.................. 22,692 24,722 1,114,977 1,199,751 =============== =============== =============== =============== PIONEER VCT IBBOTSON MODERATE ALLOCATION PIONEER VCT MID CAP VALUE SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 1,789,015 1,795,010 1,769,793 1,688,831 Units issued and transferred from other funding options...... 15,433 57,414 220,661 381,410 Units redeemed and transferred to other funding options........... (144,208) (63,409) (270,601) (300,448) --------------- --------------- --------------- --------------- Units end of year.................. 1,660,240 1,789,015 1,719,853 1,769,793 =============== =============== =============== =============== PIONEER VCT REAL ESTATE SHARES T. ROWE PRICE GROWTH STOCK SUB-ACCOUNT SUB-ACCOUNT -------------------------------- -------------------------------- 2013 2012 2013 2012 --------------- --------------- --------------- --------------- Units beginning of year............ 10,700 12,968 66,302 73,401 Units issued and transferred from other funding options...... 1,372 2,570 6,234 5,154 Units redeemed and transferred to other funding options........... (673) (4,838) (9,965) (12,253) --------------- --------------- --------------- --------------- Units end of year.................. 11,399 10,700 62,571 66,302 =============== =============== =============== ===============
T. ROWE PRICE INTERNATIONAL STOCK T. ROWE PRICE PRIME RESERVE SUB-ACCOUNT SUB-ACCOUNT ---------------------------------- --------------------------------- 2013 2012 2013 2012 ---------------- --------------- --------------- ---------------- Units beginning of year............ 45,736 59,337 40,746 54,384 Units issued and transferred from other funding options...... 1,435 2,844 30,026 24,475 Units redeemed and transferred to other funding options........... (5,811) (16,445) (39,029) (38,113) ---------------- --------------- --------------- ---------------- Units end of year.................. 41,360 45,736 31,743 40,746 ================ =============== =============== ================ UIF U.S. REAL ESTATE SUB-ACCOUNT -------------------------------- 2013 2012 --------------- --------------- Units beginning of year............ 2,343,331 2,367,197 Units issued and transferred from other funding options...... 692,925 610,442 Units redeemed and transferred to other funding options........... (505,065) (634,308) --------------- --------------- Units end of year.................. 2,531,191 2,343,331 =============== ===============
(a) For the period July 23, 2012 to December 31, 2012. (b) For the period April 30, 2012 to December 31, 2012. (c) For the period November 12, 2012 to December 31, 2012. (d) For the period April 29, 2013 to December 31, 2013. 122 123 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, some of which directly affect the unit values of the Sub-Accounts. 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, 2013:
AS OF DECEMBER 31 --------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------ --------------- -------------- Alger Small Cap Growth 2013 4,387,118 14.41 - 14.70 63,772,199 Sub-Account 2012 4,795,545 10.89 - 11.09 52,626,085 2011 5,212,661 9.82 - 9.98 51,540,007 2010 5,634,931 10.28 - 10.44 58,325,342 2009 6,156,883 8.32 - 8.44 51,552,207 American Funds Bond 2013 8,361,945 15.94 - 18.68 146,158,351 Sub-Account 2012 7,687,811 16.60 - 19.27 139,213,016 2011 6,703,194 16.06 - 18.46 116,697,267 2010 5,183,483 15.43 - 17.57 86,203,052 2009 3,608,245 14.77 - 16.66 57,212,613 American Funds Global 2013 8,333,553 32.79 - 41.42 314,826,203 Growth Sub-Account 2012 8,485,913 25.98 - 32.35 251,295,328 2011 8,205,329 21.69 - 26.44 200,460,185 2010 7,470,107 24.36 - 29.30 202,441,649 2009 6,579,263 22.30 - 26.47 161,438,857 American Funds Global Small 2013 3,375,743 33.79 - 39.59 124,184,003 Capitalization Sub-Account 2012 3,385,796 26.85 - 31.14 98,386,346 2011 3,080,674 23.15 - 26.58 76,801,888 2010 2,578,008 29.19 - 33.17 80,582,925 2009 2,262,060 24.30 - 27.34 58,608,602 American Funds Growth 2013 3,937,244 168.83 - 257.41 856,560,204 Sub-Account 2012 4,113,319 132.79 - 199.62 696,665,988 2011 3,976,212 115.27 - 170.85 577,437,630 2010 3,717,676 123.22 - 180.08 568,813,924 2009 3,225,880 106.24 - 153.09 419,749,811 American Funds 2013 2,581,885 117.99 - 179.88 388,319,990 Growth-Income Sub-Account 2012 2,745,842 90.43 - 135.94 312,823,451 2011 2,773,925 78.78 - 116.75 272,388,909 2010 2,639,070 82.11 - 119.99 266,511,951 2009 2,398,146 75.40 - 108.65 219,689,912 DWS I International 2013 1,888,612 9.76 - 9.85 18,592,794 Sub-Account 2012 2,040,232 8.24 - 8.30 16,933,216 2011 2,245,605 6.92 - 6.97 15,659,285 2010 2,471,385 8.43 - 8.48 20,962,763 2009 2,700,348 8.41 - 8.46 22,845,161 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- Alger Small Cap Growth 2013 -- 1.25 - 1.40 32.40 - 32.59 Sub-Account 2012 -- 1.25 - 1.40 10.93 - 11.09 2011 -- 1.25 - 1.40 (4.52) - (4.38) 2010 -- 1.25 - 1.40 23.54 - 23.73 2009 -- 1.25 - 1.40 43.49 - 43.70 American Funds Bond 2013 1.84 0.95 - 1.90 (4.00) - (3.08) Sub-Account 2012 2.64 0.95 - 1.90 3.38 - 4.37 2011 3.37 0.95 - 1.90 4.11 - 5.11 2010 3.44 0.95 - 1.90 4.44 - 5.44 2009 3.86 0.95 - 1.90 10.49 - 11.54 American Funds Global 2013 1.26 0.90 - 2.30 26.24 - 28.02 Growth Sub-Account 2012 0.94 0.90 - 2.30 7.06 - 21.40 2011 1.37 0.95 - 2.30 (10.95) - (9.75) 2010 1.56 0.95 - 2.30 9.21 - 10.69 2009 1.51 0.95 - 2.30 39.07 - 40.96 American Funds Global Small 2013 0.87 0.89 - 1.90 25.87 - 27.14 Capitalization Sub-Account 2012 1.35 0.89 - 1.90 2.91 - 17.13 2011 1.34 0.89 - 1.90 (20.66) - (19.86) 2010 1.75 0.89 - 1.90 20.11 - 21.33 2009 0.31 0.89 - 1.90 58.26 - 59.86 American Funds Growth 2013 0.93 0.89 - 2.30 27.15 - 28.95 Sub-Account 2012 0.81 0.89 - 2.30 1.85 - 16.84 2011 0.63 0.89 - 2.30 (6.45) - (5.12) 2010 0.77 0.89 - 2.30 15.98 - 17.63 2009 0.71 0.89 - 2.30 36.24 - 38.18 American Funds 2013 1.35 0.89 - 2.30 30.47 - 32.32 Growth-Income Sub-Account 2012 1.64 0.89 - 2.30 14.80 - 16.44 2011 1.60 0.89 - 2.30 (4.06) - (2.70) 2010 1.55 0.89 - 2.30 8.90 - 10.44 2009 1.74 0.89 - 2.30 28.26 - 30.08 DWS I International 2013 5.30 1.35 - 1.40 18.56 - 18.62 Sub-Account 2012 2.19 1.35 - 1.40 18.96 - 19.02 2011 1.83 1.35 - 1.40 (17.83) - (17.79) 2010 2.18 1.35 - 1.40 0.21 - 0.26 2009 4.39 1.35 - 1.40 31.67 - 31.73
124 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 2013 2,545 10.28 26,166 6.76 1.40 5.50 Sub-Account 2012 2,556 9.74 24,908 8.87 1.40 13.09 2011 3,549 8.62 30,572 8.62 1.40 3.71 2010 3,566 8.31 29,620 7.89 1.40 13.13 2009 3,582 7.34 26,300 8.35 1.40 50.72 Federated Kaufman 2013 5,836 7.70 44,907 -- 1.40 38.18 Sub-Account 2012 6,002 5.57 33,424 -- 1.40 15.65 (Commenced 3/15/2010) 2011 12,138 4.82 58,454 1.12 1.40 (14.47) 2010 14,184 5.63 79,874 -- 1.40 13.09 Fidelity VIP Asset Manager 2013 5,885,530 14.88 - 15.70 88,274,483 1.55 0.89 - 1.40 14.10 - 14.68 Sub-Account 2012 6,517,939 13.04 - 13.69 85,640,352 1.49 0.89 - 1.40 10.91 - 11.48 2011 7,353,740 11.75 - 12.28 87,071,337 1.88 0.89 - 1.40 (3.91) - (3.42) 2010 8,263,984 12.22 - 12.71 101,784,889 1.66 0.89 - 1.40 12.67 - 13.26 2009 9,345,424 10.84 - 11.23 102,112,475 2.38 0.89 - 1.40 27.32 - 27.96 Fidelity VIP Contrafund 2013 17,717,451 5.67 - 64.36 611,972,926 1.04 0.89 - 2.25 10.23 - 30.12 Sub-Account 2012 15,604,750 12.42 - 49.54 471,113,726 1.36 0.89 - 2.25 13.71 - 15.38 2011 15,588,853 10.76 - 43.00 388,526,965 1.01 0.89 - 2.25 (4.80) - (3.38) 2010 15,707,574 11.14 - 44.59 379,741,596 1.25 0.89 - 2.25 14.51 - 16.18 2009 15,955,996 9.59 - 38.44 313,576,644 1.44 0.89 - 2.25 32.65 - 34.50 Fidelity VIP Equity-Income 2013 341,560 17.43 5,954,600 2.41 1.40 26.37 Sub-Account 2012 400,352 13.80 5,523,241 2.96 1.40 15.67 2011 460,289 11.93 5,489,918 2.37 1.40 (0.43) 2010 530,175 11.98 6,350,751 1.75 1.40 13.56 2009 619,856 10.55 6,538,981 2.24 1.40 28.40 Fidelity VIP FundsManager 2013 158,954,030 12.73 - 12.88 2,033,793,788 1.55 1.90 - 2.05 12.57 - 12.74 50% Sub-Account 2012 39,080,828 11.31 - 11.42 443,823,085 2.69 1.90 - 2.05 1.76 - 4.11 (Commenced 7/23/2012) Fidelity VIP FundsManager 2013 333,151,686 12.05 - 12.16 4,031,523,824 1.16 1.90 - 2.05 16.21 - 16.38 60% Sub-Account 2012 345,636,001 10.37 - 10.45 3,596,633,088 1.53 1.90 - 2.05 9.33 - 9.49 (Commenced 10/15/2009) 2011 272,464,191 9.48 - 9.54 2,591,601,265 2.00 1.90 - 2.05 (4.01) - (3.87) 2010 118,824,451 9.88 - 9.93 1,176,598,687 2.72 1.90 - 2.05 11.32 - 11.49 2009 4,074,373 8.87 - 8.90 36,215,324 3.35 1.90 - 2.05 0.07 - 0.09 Fidelity VIP Growth 2013 8,194,380 20.10 - 21.07 165,968,439 0.29 0.89 - 1.40 34.44 - 35.13 Sub-Account 2012 9,085,626 14.95 - 15.59 136,799,312 0.59 0.89 - 1.40 13.09 - 13.67 2011 9,918,387 13.22 - 13.72 131,974,709 0.36 0.89 - 1.40 (1.19) - (0.68) 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 Fidelity VIP Index 500 2013 3,091,556 22.53 - 23.73 69,677,247 1.84 0.89 - 1.35 30.47 - 31.07 Sub-Account 2012 3,530,426 17.27 - 18.10 60,984,620 2.03 0.89 - 1.35 14.35 - 14.88 2011 3,976,112 15.10 - 15.76 60,061,917 1.87 0.89 - 1.35 0.67 - 1.14 2010 4,565,389 14.90 - 15.58 68,501,202 1.87 0.89 - 1.40 13.42 - 14.00 2009 5,300,313 13.22 - 13.67 70,079,047 2.52 0.89 - 1.35 24.91 - 25.48
125 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 --------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------ --------------- -------------- Fidelity VIP Mid Cap 2013 7,792,671 52.90 - 61.01 446,581,942 Sub-Account 2012 7,598,912 39.68 - 45.33 324,832,892 2011 6,289,465 35.30 - 39.95 237,701,501 2010 4,364,581 40.36 - 45.24 187,246,537 2009 3,075,278 31.99 - 35.52 103,784,411 Fidelity VIP Money Market 2013 8,307,410 7.04 - 10.73 76,155,346 Sub-Account 2012 8,041,430 7.14 - 10.94 73,659,399 2011 8,001,050 7.23 - 11.14 73,068,632 2010 7,492,405 7.33 - 11.34 67,343,833 2009 6,126,543 7.41 - 11.53 50,572,988 Fidelity VIP Overseas 2013 447,143 12.41 - 14.19 5,925,521 Sub-Account 2012 509,517 9.62 - 11.02 5,241,037 2011 540,072 8.06 - 9.24 4,664,192 2010 593,728 9.85 - 11.30 6,266,276 2009 663,667 8.81 - 10.11 6,282,775 FTVIPT Franklin Income 2013 4,919,666 48.59 - 67.20 297,821,470 Securities Sub-Account 2012 4,708,870 43.62 - 59.54 253,164,341 2011 4,290,472 39.61 - 53.36 206,611,149 2010 3,722,732 39.56 - 52.61 176,548,647 2009 3,157,996 35.91 - 47.14 134,091,525 FTVIPT Franklin Small Cap 2013 9,184,423 13.56 - 14.30 128,048,983 Value Securities Sub-Account 2012 8,321,925 10.13 - 10.60 86,296,073 2011 5,710,847 8.71 - 9.04 50,705,697 2010 3,178,430 9.21 - 9.48 29,718,643 2009 1,787,114 7.31 - 7.46 13,205,263 FTVIPT Mutual Shares 2013 5,477,366 26.11 - 30.73 156,078,571 Securities Sub-Account 2012 5,768,385 20.75 - 24.19 129,780,562 2011 5,952,328 18.51 - 21.38 118,532,870 2010 5,431,435 19.07 - 21.81 110,507,146 2009 4,784,657 17.47 - 19.80 88,554,450 FTVIPT Templeton Foreign 2013 2,457,017 16.25 - 38.21 87,721,293 Securities Sub-Account 2012 2,730,167 13.46 - 31.61 80,788,377 2011 2,720,421 11.59 - 27.19 69,009,193 2010 2,782,005 13.20 - 30.95 79,683,759 2009 2,655,441 12.40 - 29.04 70,515,555 FTVIPT Templeton Global 2013 12,950,902 18.47 - 20.82 254,683,414 Bond Securities Sub-Account 2012 11,067,808 18.50 - 20.69 217,063,429 2011 8,104,261 16.36 - 18.15 139,986,041 2010 4,997,591 16.79 - 18.48 88,294,177 2009 2,853,081 14.93 - 16.31 44,636,060 Invesco V.I. American 2013 22,147 7.39 163,713 Franchise Sub-Account 2012 28,015 5.35 149,862 2011 18,874 4.77 90,033 2010 25,363 5.16 130,764 2009 26,829 4.36 117,046 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- Fidelity VIP Mid Cap 2013 0.28 0.95 - 1.90 33.31 - 34.59 Sub-Account 2012 0.43 0.95 - 1.90 12.40 - 13.47 2011 0.03 0.95 - 1.90 (12.53) - (11.70) 2010 0.14 0.95 - 1.90 26.16 - 27.36 2009 0.54 0.95 - 1.90 37.12 - 38.43 Fidelity VIP Money Market 2013 0.02 0.89 - 2.05 (2.01) - (0.86) Sub-Account 2012 0.12 0.89 - 2.05 (1.93) - (0.76) 2011 0.09 0.89 - 2.05 (1.94) - (0.77) 2010 0.17 0.89 - 2.05 (1.82) - (0.65) 2009 0.71 0.89 - 2.05 (0.68) - (0.17) Fidelity VIP Overseas 2013 1.34 1.15 - 1.40 28.62 - 28.95 Sub-Account 2012 1.97 1.15 - 1.40 19.05 - 19.35 2011 1.35 1.15 - 1.40 (18.32) - (18.12) 2010 1.39 1.15 - 1.40 11.54 - 11.82 2009 2.17 1.15 - 1.40 24.78 - 25.09 FTVIPT Franklin Income 2013 6.33 0.95 - 2.25 11.41 - 12.86 Securities Sub-Account 2012 6.44 0.95 - 2.25 10.13 - 11.58 2011 5.75 0.95 - 2.25 0.11 - 1.42 2010 6.60 0.95 - 2.25 10.17 - 11.61 2009 8.01 0.95 - 2.25 32.58 - 34.31 FTVIPT Franklin Small Cap 2013 1.31 0.95 - 1.75 33.88 - 34.95 Value Securities Sub-Account 2012 0.78 0.95 - 1.75 16.32 - 17.26 2011 0.66 0.95 - 1.75 (5.43) - (4.67) 2010 0.73 0.95 - 1.75 26.00 - 27.01 2009 1.66 0.95 - 1.75 26.91 - 27.94 FTVIPT Mutual Shares 2013 2.10 0.95 - 1.90 25.85 - 27.05 Securities Sub-Account 2012 2.06 0.95 - 1.90 12.08 - 13.16 2011 2.42 0.95 - 1.90 (2.90) - (1.98) 2010 1.62 0.95 - 1.90 9.10 - 10.14 2009 2.02 0.95 - 1.90 23.67 - 24.86 FTVIPT Templeton Foreign 2013 2.38 1.55 - 2.30 20.18 - 21.08 Securities Sub-Account 2012 3.02 1.55 - 2.30 15.53 - 16.41 2011 1.71 1.55 - 2.30 (12.66) - (12.00) 2010 1.88 1.55 - 2.30 5.94 - 6.74 2009 3.05 1.55 - 2.30 33.93 - 34.94 FTVIPT Templeton Global 2013 4.75 0.95 - 1.75 (0.13) - 0.67 Bond Securities Sub-Account 2012 6.42 0.95 - 1.75 13.06 - 13.97 2011 5.46 0.95 - 1.75 (2.58) - (1.81) 2010 1.36 0.95 - 1.75 12.46 - 13.36 2009 14.21 0.95 - 1.75 16.62 - 17.56 Invesco V.I. American 2013 0.42 1.40 38.19 Franchise Sub-Account 2012 -- 1.40 12.14 2011 -- 1.40 (7.49) 2010 -- 1.40 18.18 2009 0.11 1.40 63.78
126 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 ---------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------ ---------------- -------------- Invesco V.I. American Value 2013 5,963,473 15.53 - 16.44 95,295,929 Sub-Account 2012 5,515,798 11.80 - 12.39 66,684,996 2011 4,490,470 10.26 - 10.68 47,014,117 2010 2,673,648 10.35 - 10.70 28,139,044 2009 1,763,519 8.62 - 8.84 15,401,650 Invesco V.I. Core Equity 2013 39,835 6.27 249,696 Sub-Account 2012 49,005 4.92 241,009 2011 63,191 4.38 276,761 2010 88,640 4.44 393,933 2009 99,143 4.11 407,845 Invesco V.I. Equity and 2013 31,328,255 6.09 - 21.69 649,322,698 Income Sub-Account 2012 29,563,858 4.93 - 17.54 496,945,594 2011 27,370,136 4.44 - 15.75 414,357,262 2010 22,199,448 14.98 - 16.11 345,124,808 2009 17,747,381 13.63 - 14.52 249,400,082 Invesco V.I. Global Real 2013 3,254,580 8.95 - 9.48 29,993,323 Estate Sub-Account 2012 2,556,360 8.90 - 9.34 23,302,577 2011 1,863,096 7.08 - 7.38 13,467,264 2010 1,148,943 7.73 - 7.98 9,028,134 2009 704,385 6.71 - 6.88 4,786,308 Invesco V.I. Growth and 2013 13,799,854 9.57 - 36.41 365,970,613 Income Sub-Account 2012 13,407,203 7.24 - 27.48 268,230,013 2011 11,777,382 6.40 - 24.26 206,338,231 2010 9,061,763 6.63 - 25.06 160,437,278 2009 6,896,039 5.97 - 22.55 107,604,807 Invesco V.I. International 2013 8,901,354 9.17 - 34.47 281,999,206 Growth Sub-Account 2012 8,127,475 7.81 - 29.32 219,783,700 2011 6,481,068 6.86 - 25.68 154,099,050 2010 4,327,573 7.46 - 27.87 111,888,065 2009 2,818,925 6.70 - 24.98 65,315,391 Janus Aspen Global Research 2013 721 9.35 6,748 Sub-Account 2012 769 7.35 5,653 2011 769 6.17 4,750 2010 901 7.22 6,506 2009 999 6.29 6,285 LMPVET ClearBridge Variable 2013 11,979,001 15.00 - 25.98 280,745,200 Aggressive Growth 2012 11,687,754 10.38 - 17.75 186,988,862 Sub-Account 2011 11,855,614 8.94 - 15.09 160,839,221 2010 11,742,971 8.92 - 14.87 156,471,918 2009 11,503,827 7.29 - 12.01 123,705,924 LMPVET ClearBridge Variable 2013 2,922,291 37.21 - 48.58 129,253,563 All Cap Value Sub-Account 2012 3,081,671 28.81 - 37.11 104,446,756 2011 3,213,146 25.64 - 32.59 95,718,136 2010 3,100,875 27.97 - 35.07 99,528,233 2009 2,989,079 24.54 - 30.36 83,258,408 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ---------------- Invesco V.I. American Value 2013 0.57 0.95 - 1.75 31.61 - 32.67 Sub-Account 2012 0.68 0.95 - 1.75 15.03 - 15.96 2011 0.72 0.95 - 1.75 (0.92) - (0.12) 2010 0.80 0.95 - 1.75 20.06 - 21.03 2009 1.18 0.95 - 1.75 36.75 - 37.84 Invesco V.I. Core Equity 2013 1.36 1.40 27.45 Sub-Account 2012 0.91 1.40 12.29 2011 0.92 1.40 (1.44) 2010 0.95 1.40 8.02 2009 1.76 1.40 26.51 Invesco V.I. Equity and 2013 1.54 0.95 - 1.90 22.54 - 23.71 Income Sub-Account 2012 1.85 0.95 - 1.90 10.26 - 11.32 2011 1.69 0.95 - 1.90 (8.77) - (2.23) 2010 1.92 0.95 - 1.90 9.92 - 10.97 2009 2.82 0.95 - 1.90 20.19 - 21.33 Invesco V.I. Global Real 2013 3.98 0.95 - 1.75 0.66 - 1.47 Estate Sub-Account 2012 0.48 0.95 - 1.75 25.62 - 26.63 2011 4.22 0.95 - 1.75 (8.34) - (7.62) 2010 5.55 0.95 - 1.75 15.19 - 16.13 2009 -- 0.95 - 1.75 28.83 - 29.86 Invesco V.I. Growth and 2013 1.31 0.95 - 1.90 31.25 - 32.50 Income Sub-Account 2012 1.36 0.95 - 1.90 12.18 - 13.26 2011 1.13 0.95 - 1.90 (4.10) - (3.18) 2010 0.09 0.95 - 1.90 10.09 - 11.13 2009 3.60 0.95 - 1.90 21.78 - 22.94 Invesco V.I. International 2013 1.10 0.95 - 1.75 16.66 - 17.60 Growth Sub-Account 2012 1.38 0.95 - 1.75 13.25 - 14.16 2011 1.06 0.95 - 1.75 (8.60) - (7.87) 2010 2.01 0.95 - 1.75 10.66 - 11.55 2009 1.74 0.95 - 1.75 32.57 - 33.63 Janus Aspen Global Research 2013 1.21 0.89 27.29 Sub-Account 2012 0.89 0.89 19.01 2011 0.58 0.89 (14.50) 2010 0.61 0.89 14.80 2009 1.43 0.89 36.49 LMPVET ClearBridge Variable 2013 0.28 0.95 - 2.30 44.42 - 46.38 Aggressive Growth 2012 0.43 0.95 - 2.30 16.01 - 17.60 Sub-Account 2011 0.20 0.95 - 2.30 0.15 - 1.50 2010 0.15 0.95 - 2.30 22.17 - 23.83 2009 -- 0.95 - 2.30 31.51 - 33.30 LMPVET ClearBridge Variable 2013 1.40 0.95 - 2.30 29.16 - 30.92 All Cap Value Sub-Account 2012 1.72 0.95 - 2.30 12.35 - 13.89 2011 1.41 0.95 - 2.30 (8.32) - (7.08) 2010 1.79 0.95 - 2.30 13.96 - 15.50 2009 1.44 0.95 - 2.30 26.41 - 28.14
127 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 --------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------ --------------- -------------- LMPVET ClearBridge Variable 2013 8,604,407 38.78 - 51.73 405,286,221 Appreciation Sub-Account 2012 7,908,912 30.52 - 40.17 290,191,379 2011 7,021,537 26.94 - 34.98 224,680,370 2010 5,515,253 26.87 - 34.42 173,626,503 2009 4,134,838 24.41 - 30.85 116,657,409 LMPVET ClearBridge Variable 2013 10,244,154 12.44 - 20.09 191,169,653 Equity Income Sub-Account 2012 9,055,914 10.11 - 16.14 134,931,130 2011 8,013,455 9.06 - 14.28 103,322,855 2010 6,778,039 10.29 - 13.39 81,006,913 2009 6,144,958 9.34 - 12.06 64,946,351 LMPVET ClearBridge Variable 2013 242,954 18.99 - 21.53 5,012,390 Large Cap Growth 2012 283,429 14.10 - 15.86 4,312,254 Sub-Account 2011 363,040 11.99 - 13.38 4,673,796 2010 459,350 12.35 - 13.67 6,065,533 2009 557,417 11.50 - 12.63 6,818,703 LMPVET ClearBridge Variable 2013 319,601 19.77 - 22.45 6,892,954 Large Cap Value Sub-Account 2012 286,427 15.28 - 17.21 4,743,489 2011 265,335 13.42 - 15.00 3,836,359 2010 194,899 13.09 - 14.51 2,729,796 2009 196,692 12.23 - 13.45 2,559,454 LMPVET ClearBridge Variable 2013 4,102,827 22.63 - 31.63 112,499,020 Small Cap Growth 2012 3,457,289 15.75 - 21.71 64,881,494 Sub-Account 2011 2,686,955 13.50 - 18.35 42,564,777 2010 2,149,625 13.62 - 18.28 33,662,804 2009 1,757,714 11.13 - 14.74 21,966,842 LMPVET Investment Counsel 2013 7,932 34.52 - 37.64 292,286 Variable Social Awareness 2012 9,185 29.64 - 32.19 289,329 Sub-Account 2011 17,377 27.28 - 29.51 501,373 2010 17,424 27.81 - 29.97 510,680 2009 19,412 25.28 - 27.12 515,712 LMPVET Variable Lifestyle 2013 2,011,433 20.00 - 23.49 44,101,401 Allocation 50% Sub-Account 2012 1,699,443 17.68 - 20.56 32,620,028 2011 1,414,982 15.93 - 17.95 24,265,695 2010 769,522 16.05 - 17.94 13,086,823 2009 487,451 14.30 - 15.06 7,231,568 LMPVET Variable Lifestyle 2013 121,395 18.11 - 19.37 2,304,999 Allocation 70% Sub-Account 2012 162,342 15.15 - 16.14 2,573,509 2011 219,583 13.47 - 14.30 3,086,943 2010 236,121 13.81 - 14.60 3,395,287 2009 271,548 12.24 - 12.89 3,447,350 LMPVET Variable Lifestyle 2013 4,790,185 18.14 - 21.30 95,074,284 Allocation 85% Sub-Account 2012 5,015,187 14.61 - 17.00 79,817,339 2011 4,732,454 12.85 - 14.81 65,879,472 2010 4,289,092 13.41 - 15.30 62,035,149 2009 3,756,486 11.81 - 13.35 47,576,561 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ---------------- LMPVET ClearBridge Variable 2013 1.29 0.95 - 2.30 27.05 - 28.77 Appreciation Sub-Account 2012 1.75 0.95 - 2.30 13.30 - 14.85 2011 1.77 0.95 - 2.30 0.28 - 1.64 2010 1.83 0.95 - 2.30 10.07 - 11.56 2009 2.45 0.95 - 2.30 19.34 - 20.96 LMPVET ClearBridge Variable 2013 1.65 0.95 - 2.30 23.08 - 24.49 Equity Income Sub-Account 2012 3.04 0.95 - 2.30 11.60 - 12.99 2011 3.39 0.95 - 2.30 (2.15) - 6.69 2010 4.09 0.95 - 1.90 10.01 - 11.06 2009 3.37 0.95 - 1.90 20.32 - 21.47 LMPVET ClearBridge Variable 2013 0.51 1.50 - 2.30 34.72 - 35.80 Large Cap Growth 2012 0.66 1.50 - 2.30 17.60 - 18.55 Sub-Account 2011 0.42 1.50 - 2.30 (2.91) - (2.12) 2010 0.11 1.50 - 2.30 7.34 - 8.19 2009 0.27 1.50 - 2.30 39.14 - 40.27 LMPVET ClearBridge Variable 2013 1.77 1.50 - 2.30 29.36 - 30.40 Large Cap Value Sub-Account 2012 2.37 1.50 - 2.30 13.84 - 14.76 2011 2.82 1.50 - 2.30 2.57 - 3.39 2010 3.02 1.50 - 2.30 6.98 - 7.83 2009 1.95 1.50 - 2.30 21.66 - 22.65 LMPVET ClearBridge Variable 2013 0.05 0.95 - 2.30 43.71 - 45.66 Small Cap Growth 2012 0.42 0.95 - 2.30 16.70 - 18.29 Sub-Account 2011 -- 0.95 - 2.30 (0.91) - 0.43 2010 -- 0.95 - 2.30 22.34 - 24.00 2009 -- 0.95 - 2.30 39.53 - 41.42 LMPVET Investment Counsel 2013 0.83 1.50 - 1.90 16.47 - 16.94 Variable Social Awareness 2012 1.06 1.50 - 1.90 8.62 - 9.06 Sub-Account 2011 1.20 1.50 - 1.90 (1.89) - (1.51) 2010 1.24 1.50 - 1.90 10.04 - 10.48 2009 1.43 1.50 - 1.90 20.53 - 21.01 LMPVET Variable Lifestyle 2013 2.21 0.95 - 1.90 13.16 - 14.24 Allocation 50% Sub-Account 2012 2.95 0.95 - 1.90 10.96 - 12.02 2011 3.19 1.10 - 1.90 (0.73) - 0.07 2010 4.10 1.10 - 1.90 6.21 - 12.65 2009 5.06 1.50 - 1.90 29.83 - 30.35 LMPVET Variable Lifestyle 2013 1.41 1.50 - 1.90 19.53 - 20.01 Allocation 70% Sub-Account 2012 2.16 1.50 - 1.90 12.43 - 12.88 2011 1.88 1.50 - 1.90 (2.45) - (2.06) 2010 2.04 1.50 - 1.90 12.84 - 13.30 2009 3.60 1.50 - 1.90 30.41 - 30.93 LMPVET Variable Lifestyle 2013 1.66 0.95 - 1.90 24.12 - 25.30 Allocation 85% Sub-Account 2012 1.84 0.95 - 1.90 13.70 - 14.79 2011 1.55 0.95 - 1.90 (4.15) - (3.23) 2010 1.73 0.95 - 1.90 13.52 - 14.60 2009 2.64 0.95 - 1.90 29.99 - 31.22
128 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 --------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------ --------------- -------------- LMPVIT Western Asset 2013 4,386,878 20.82 - 25.72 104,740,451 Variable Global High Yield 2012 4,039,328 20.05 - 24.44 91,771,912 Bond Sub-Account 2011 3,594,817 17.34 - 20.85 69,717,903 2010 3,170,899 17.44 - 20.70 61,092,507 2009 2,845,850 15.53 - 18.18 48,249,580 MFS VIT Investors Trust 2013 3,517 7.38 25,951 Sub-Account 2012 3,616 5.67 20,488 2011 7,050 4.82 33,994 2010 8,683 5.00 43,404 2009 11,563 4.56 52,758 MFS VIT New Discovery 2013 3,294 13.97 46,020 Sub-Account 2012 4,161 10.01 41,661 2011 4,939 8.38 41,374 2010 4,951 9.47 46,865 2009 6,461 7.04 45,491 MFS VIT Research Sub-Account 2013 8,132 7.85 63,835 2012 8,335 6.02 50,155 2011 8,675 5.20 45,142 2010 21,202 5.30 112,388 2009 23,944 4.64 111,057 MIST AllianceBernstein 2013 286,256,086 11.32 - 11.74 3,313,674,192 Global Dynamic Allocation 2012 267,334,005 10.40 - 10.66 2,823,843,417 Sub-Account 2011 168,434,681 9.68 - 9.75 1,639,379,077 (Commenced 5/2/2011) MIST American Funds 2013 276,830,535 11.83 - 12.78 3,430,387,038 Balanced Allocation 2012 292,605,761 10.22 - 10.89 3,106,060,329 Sub-Account 2011 306,967,734 9.22 - 9.69 2,914,777,188 2010 251,644,506 9.64 - 10.00 2,478,289,324 2009 147,529,141 8.80 - 9.00 1,315,175,709 MIST American Funds Growth 2013 147,794,512 11.83 - 12.67 1,828,322,375 Allocation Sub-Account 2012 149,020,463 9.68 - 10.24 1,496,665,592 2011 159,224,115 8.53 - 8.92 1,398,390,722 2010 155,386,301 9.17 - 9.47 1,454,861,016 2009 139,002,030 8.27 - 8.44 1,164,848,803 MIST American Funds Growth 2013 59,593,818 1.29 - 12.90 632,386,636 Sub-Account 2012 54,812,434 9.59 - 10.07 545,665,799 2011 64,256,598 8.36 - 8.69 553,292,806 2010 52,406,611 8.97 - 9.23 480,253,525 2009 30,278,080 7.76 - 7.90 238,097,827 MIST American Funds 2013 147,773,215 11.61 - 12.53 1,796,366,977 Moderate Allocation 2012 159,499,085 10.47 - 11.15 1,734,325,945 Sub-Account 2011 168,982,398 9.67 - 10.16 1,683,464,896 2010 143,876,667 9.88 - 10.25 1,452,175,003 2009 89,994,728 9.20 - 9.42 839,089,528 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ---------------- LMPVIT Western Asset 2013 6.19 0.95 - 2.30 3.85 - 5.27 Variable Global High Yield 2012 7.84 0.95 - 2.30 15.62 - 17.20 Bond Sub-Account 2011 8.38 0.95 - 2.30 (0.59) - 0.75 2010 9.47 0.95 - 2.30 12.31 - 13.83 2009 11.34 0.95 - 2.30 52.02 - 54.08 MFS VIT Investors Trust 2013 1.10 1.40 30.22 Sub-Account 2012 0.67 1.40 17.52 2011 0.90 1.40 (3.54) 2010 1.30 1.40 9.56 2009 1.77 1.40 25.15 MFS VIT New Discovery 2013 -- 1.40 39.55 Sub-Account 2012 -- 1.40 19.53 2011 -- 1.40 (11.51) 2010 -- 1.40 34.44 2009 -- 1.40 60.90 MFS VIT Research Sub-Account 2013 0.33 1.40 30.45 2012 0.79 1.40 15.63 2011 0.72 1.40 (1.83) 2010 0.92 1.40 14.29 2009 1.44 1.40 28.73 MIST AllianceBernstein 2013 1.28 0.90 - 2.35 8.56 - 10.15 Global Dynamic Allocation 2012 0.10 0.90 - 2.35 3.45 - 8.82 Sub-Account 2011 0.87 1.15 - 2.25 (3.18) - (2.47) (Commenced 5/2/2011) MIST American Funds 2013 1.37 1.00 - 2.35 15.78 - 17.35 Balanced Allocation 2012 1.69 1.00 - 2.35 10.88 - 12.39 Sub-Account 2011 1.26 1.00 - 2.35 (4.39) - (3.10) 2010 1.01 1.00 - 2.35 9.55 - 11.05 2009 -- 1.00 - 2.35 20.40 - 27.85 MIST American Funds Growth 2013 1.00 1.15 - 2.35 22.20 - 23.68 Allocation Sub-Account 2012 1.21 1.15 - 2.35 13.45 - 14.82 2011 1.10 1.15 - 2.35 (6.95) - (5.82) 2010 0.89 1.15 - 2.35 10.86 - 12.18 2009 -- 1.15 - 2.35 30.93 - 32.51 MIST American Funds Growth 2013 0.44 0.95 - 2.35 11.27 - 28.11 Sub-Account 2012 0.33 1.30 - 2.35 14.67 - 15.89 2011 0.35 1.30 - 2.35 (6.81) - (5.83) 2010 0.20 1.30 - 2.35 15.57 - 16.79 2009 -- 1.30 - 2.35 35.67 - 37.09 MIST American Funds 2013 1.65 1.00 - 2.35 10.88 - 12.39 Moderate Allocation 2012 2.04 1.00 - 2.35 8.25 - 9.73 Sub-Account 2011 1.54 1.00 - 2.35 (2.14) - (0.81) 2010 1.41 1.00 - 2.35 7.36 - 8.82 2009 -- 1.00 - 2.35 15.69 - 21.98
129 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 --------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------ --------------- -------------- MIST AQR Global Risk 2013 295,108,196 9.93 - 11.09 3,248,475,977 Balanced Sub-Account 2012 324,843,850 10.42 - 11.61 3,753,309,463 (Commenced 5/2/2011) 2011 179,038,392 10.54 - 10.62 1,898,124,083 MIST BlackRock Global 2013 487,574,727 10.92 - 11.35 5,457,878,761 Tactical Strategies 2012 471,913,542 10.13 - 10.38 4,856,824,935 Sub-Account 2011 297,189,715 9.51 - 9.58 2,842,712,285 (Commenced 5/2/2011) MIST BlackRock High Yield 2013 10,783,682 14.92 - 28.32 265,149,806 Sub-Account 2012 11,949,833 13.83 - 26.13 276,977,302 2011 10,891,616 12.03 - 21.28 221,624,841 2010 9,034,810 11.92 - 21.07 182,367,303 2009 5,656,394 16.02 - 18.43 100,278,538 MIST BlackRock Large Cap 2013 1,260,254 12.25 - 14.84 16,869,650 Core Sub-Account 2012 1,423,242 9.34 - 11.16 14,439,147 2011 1,414,721 8.42 - 9.34 12,849,849 2010 1,044,239 8.60 - 9.47 9,613,588 2009 613,169 7.82 - 8.54 5,078,728 MIST Clarion Global Real 2013 11,099,591 15.36 - 17.68 182,673,922 Estate Sub-Account 2012 10,967,900 15.19 - 17.23 177,317,957 2011 11,304,866 12.34 - 13.38 147,447,056 2010 9,934,760 13.39 - 14.36 139,330,754 2009 7,999,282 11.80 - 12.53 98,120,895 MIST ClearBridge Aggressive 2013 604,793 145.80 - 224.52 119,068,960 Growth II Sub-Account 2012 687,043 115.55 - 176.62 106,823,115 2011 543,584 96.27 - 146.05 68,769,080 2010 397,905 106.29 - 160.04 53,356,686 2009 192,470 99.16 - 121.06 21,865,637 MIST ClearBridge Aggressive 2013 36,299,683 10.84 - 13.77 451,710,565 Growth Sub-Account 2012 33,802,849 7.55 - 9.54 292,871,764 2011 35,764,496 6.45 - 7.78 265,479,062 2010 13,863,499 6.97 - 7.63 102,505,758 2009 12,110,468 5.76 - 6.24 73,409,292 MIST Goldman Sachs Mid Cap 2013 7,939,384 19.93 - 22.07 170,038,386 Value Sub-Account 2012 8,486,283 15.38 - 16.85 139,211,779 2011 9,263,271 13.34 - 14.45 130,696,272 2010 7,332,195 14.57 - 15.63 112,015,664 2009 6,218,018 12.01 - 12.74 77,628,353 MIST Harris Oakmark 2013 25,769,452 23.43 - 29.23 693,983,244 International Sub-Account 2012 25,722,293 18.33 - 22.61 538,939,254 2011 28,033,038 14.49 - 17.04 461,860,538 2010 23,589,953 17.23 - 20.14 459,739,197 2009 18,176,767 15.11 - 17.52 309,481,262 MIST Invesco Balanced-Risk 2013 800,860,953 1.04 - 1.06 843,160,697 Allocation Sub-Account 2012 631,214,101 1.04 - 1.05 661,422,417 (Commenced 4/30/2012) FOR THE YEAR ENDED DECEMBER 31 -------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MIST AQR Global Risk 2013 2.09 0.90 - 2.35 (5.64) - (4.26) Balanced Sub-Account 2012 0.44 0.90 - 2.35 3.72 - 9.29 (Commenced 5/2/2011) 2011 3.00 1.15 - 2.25 1.94 - 2.70 MIST BlackRock Global 2013 1.36 0.90 - 2.35 7.75 - 9.32 Tactical Strategies 2012 -- 0.90 - 2.35 3.27 - 7.89 Sub-Account 2011 1.37 1.15 - 2.25 (4.84) - (4.14) (Commenced 5/2/2011) MIST BlackRock High Yield 2013 7.02 0.90 - 2.35 6.79 - 8.35 Sub-Account 2012 7.05 0.90 - 2.35 7.68 - 15.15 2011 6.52 1.20 - 2.35 (0.03) - 1.12 2010 5.88 1.20 - 2.35 5.99 - 14.28 2009 3.54 1.30 - 2.35 43.24 - 44.75 MIST BlackRock Large Cap 2013 1.28 0.90 - 2.30 31.12 - 32.97 Core Sub-Account 2012 1.07 0.90 - 2.30 (0.27) - 11.75 2011 0.92 1.55 - 2.30 (2.06) - (1.33) 2010 1.06 1.55 - 2.30 10.01 - 10.85 2009 1.34 1.55 - 2.30 16.49 - 17.35 MIST Clarion Global Real 2013 6.85 0.90 - 2.35 1.14 - 2.62 Estate Sub-Account 2012 2.03 0.90 - 2.35 9.18 - 24.35 2011 3.80 1.30 - 2.35 (7.78) - (6.80) 2010 7.76 1.30 - 2.35 13.41 - 14.61 2009 3.11 1.30 - 2.35 31.61 - 33.00 MIST ClearBridge Aggressive 2013 0.63 1.30 - 2.35 25.80 - 27.13 Growth II Sub-Account 2012 0.29 1.30 - 2.35 19.66 - 20.94 2011 1.69 1.30 - 2.35 (9.69) - (8.74) 2010 1.30 1.30 - 2.35 3.20 - 8.00 2009 -- 1.55 - 2.30 39.96 - 41.01 MIST ClearBridge Aggressive 2013 0.22 0.90 - 2.35 42.22 - 44.30 Growth Sub-Account 2012 0.02 0.90 - 2.35 3.28 - 17.38 2011 -- 0.95 - 2.35 (9.34) - 1.91 2010 -- 1.30 - 2.35 20.92 - 22.20 2009 -- 1.30 - 2.35 29.87 - 31.23 MIST Goldman Sachs Mid Cap 2013 0.89 1.30 - 2.35 29.57 - 30.94 Value Sub-Account 2012 0.59 1.30 - 2.35 15.36 - 16.58 2011 0.48 1.30 - 2.35 (8.46) - (7.50) 2010 0.92 1.30 - 2.35 21.35 - 22.63 2009 1.25 1.30 - 2.35 29.24 - 30.59 MIST Harris Oakmark 2013 2.44 0.95 - 2.35 27.46 - 29.26 International Sub-Account 2012 1.63 0.95 - 2.35 15.61 - 27.58 2011 -- 1.30 - 2.35 (16.24) - (15.36) 2010 1.82 1.30 - 2.35 13.71 - 14.92 2009 7.66 1.30 - 2.35 43.46 - 53.06 MIST Invesco Balanced-Risk 2013 -- 0.90 - 2.35 (0.50) - 0.95 Allocation Sub-Account 2012 0.55 0.90 - 2.35 3.03 - 4.04 (Commenced 4/30/2012)
130 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 -------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------ --------------- ------------- MIST Invesco Comstock 2013 26,889,264 14.36 - 22.42 443,561,923 Sub-Account 2012 26,662,653 10.86 - 16.72 329,458,802 2011 25,137,797 9.39 - 14.24 266,463,408 2010 21,172,822 9.76 - 14.59 230,561,318 2009 16,791,760 8.70 - 12.82 161,042,507 MIST Invesco Mid Cap Value 2013 4,619,902 30.27 - 38.39 158,040,375 Sub-Account 2012 5,175,603 23.78 - 29.73 138,149,492 2011 5,366,862 21.23 - 24.69 127,004,689 2010 4,351,943 22.57 - 25.97 108,323,379 2009 3,034,782 18.41 - 20.96 60,902,685 MIST Invesco Small Cap 2013 13,003,134 22.53 - 27.31 319,189,345 Growth Sub-Account 2012 13,528,657 16.44 - 19.61 240,468,780 2011 13,942,780 14.22 - 16.69 212,672,795 2010 11,943,258 14.70 - 16.99 186,610,558 2009 11,180,366 11.92 - 13.55 140,473,926 MIST JPMorgan Core Bond 2013 29,439,490 10.12 - 10.75 311,869,932 Sub-Account 2012 31,242,391 10.69 - 11.23 346,492,447 2011 32,528,572 10.43 - 10.84 349,346,240 2010 26,655,400 10.10 - 10.38 274,791,792 2009 14,305,838 9.74 - 9.92 141,146,685 MIST JPMorgan Global Active 2013 649,853,969 1.13 - 1.16 746,849,717 Allocation Sub-Account 2012 269,034,003 1.04 - 1.05 282,572,135 (Commenced 4/30/2012) MIST JPMorgan Small Cap 2013 1,455,583 18.28 - 20.23 27,866,566 Value Sub-Account 2012 1,643,159 14.04 - 15.36 24,014,976 2011 1,650,824 12.42 - 13.17 21,224,281 2010 1,677,961 14.14 - 14.87 24,426,974 2009 1,579,618 12.10 - 12.62 19,575,088 MIST Loomis Sayles Global 2013 10,842,823 15.69 - 17.47 180,595,781 Markets Sub-Account 2012 12,318,466 13.71 - 14.91 177,780,410 2011 13,161,956 12.01 - 12.74 165,018,207 2010 10,620,691 12.48 - 13.10 137,171,845 2009 7,198,911 10.47 - 10.88 77,383,467 MIST Lord Abbett Bond 2013 9,341,018 9.99 - 32.33 259,294,487 Debenture Sub-Account 2012 10,178,078 9.36 - 30.15 266,010,291 2011 10,848,076 8.39 - 26.88 255,107,548 2010 11,708,304 8.12 - 25.87 267,920,695 2009 11,953,991 7.27 - 23.06 245,913,998 MIST Met/Eaton Vance 2013 7,519,969 10.76 - 11.18 83,115,837 Floating Rate Sub-Account 2012 5,007,151 10.61 - 10.91 54,197,004 (Commenced 5/3/2010) 2011 4,263,176 10.13 - 10.30 43,696,769 2010 1,600,145 10.16 - 10.23 16,334,315 MIST Met/Franklin Low 2013 14,050,793 9.78 - 10.16 140,307,146 Duration Total Return 2012 4,349,231 9.92 - 10.14 43,609,944 Sub-Account 2011 2,835,514 9.70 - 9.78 27,661,832 (Commenced 5/2/2011) FOR THE YEAR ENDED DECEMBER 31 -------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MIST Invesco Comstock 2013 1.07 0.90 - 2.35 32.25 - 34.18 Sub-Account 2012 1.22 0.90 - 2.35 5.55 - 17.40 2011 1.09 0.95 - 2.35 (3.76) - (2.39) 2010 1.45 0.95 - 2.35 12.19 - 13.80 2009 1.11 0.95 - 2.35 23.63 - 30.57 MIST Invesco Mid Cap Value 2013 0.74 0.90 - 2.35 27.28 - 29.14 Sub-Account 2012 0.40 0.90 - 2.35 2.26 - 13.21 2011 0.51 1.30 - 2.35 (5.93) - (4.94) 2010 0.55 1.30 - 2.35 22.62 - 23.91 2009 1.74 1.30 - 2.35 23.59 - 24.90 MIST Invesco Small Cap 2013 0.23 0.89 - 2.35 36.92 - 39.29 Growth Sub-Account 2012 -- 0.89 - 2.35 15.47 - 17.45 2011 -- 0.89 - 2.35 (3.37) - (1.73) 2010 -- 0.89 - 2.35 23.26 - 25.35 2009 -- 0.89 - 2.35 30.70 - 33.03 MIST JPMorgan Core Bond 2013 0.28 1.30 - 2.35 (5.04) - (4.05) Sub-Account 2012 2.57 1.30 - 2.35 2.47 - 3.55 2011 2.09 1.30 - 2.35 3.34 - 4.42 2010 1.64 1.30 - 2.35 3.63 - 4.73 2009 -- 1.30 - 2.35 9.52 - 10.67 MIST JPMorgan Global Active 2013 0.08 0.90 - 2.35 8.41 - 9.99 Allocation Sub-Account 2012 0.73 0.90 - 2.35 3.02 - 4.03 (Commenced 4/30/2012) MIST JPMorgan Small Cap 2013 0.69 0.90 - 2.30 30.22 - 31.71 Value Sub-Account 2012 0.84 0.90 - 2.30 2.73 - 13.98 2011 1.69 1.20 - 2.30 (12.17) - (11.43) 2010 0.82 1.20 - 2.30 16.82 - 17.83 2009 0.88 1.20 - 2.30 26.15 - 27.24 MIST Loomis Sayles Global 2013 2.41 0.95 - 2.35 14.41 - 16.02 Markets Sub-Account 2012 2.32 1.10 - 2.35 2.75 - 15.41 2011 2.32 1.30 - 2.35 (3.77) - (2.75) 2010 2.99 1.30 - 2.35 19.18 - 20.43 2009 1.95 1.30 - 2.35 37.54 - 39.00 MIST Lord Abbett Bond 2013 6.62 0.89 - 2.35 5.47 - 7.21 Debenture Sub-Account 2012 7.20 0.89 - 2.35 5.77 - 12.18 2011 5.92 0.89 - 2.35 2.04 - 3.90 2010 6.21 0.89 - 2.35 10.34 - 12.18 2009 7.17 0.89 - 2.35 33.60 - 35.91 MIST Met/Eaton Vance 2013 3.38 1.30 - 2.35 1.42 - 2.50 Floating Rate Sub-Account 2012 3.39 1.30 - 2.35 4.83 - 5.94 (Commenced 5/3/2010) 2011 1.99 1.30 - 2.30 (0.31) - 0.69 2010 -- 1.30 - 2.30 1.64 - 2.31 MIST Met/Franklin Low 2013 1.07 0.90 - 2.35 (1.19) - 0.25 Duration Total Return 2012 1.91 0.90 - 2.20 1.17 - 3.15 Sub-Account 2011 -- 1.20 - 2.35 (2.83) - (2.08) (Commenced 5/2/2011)
131 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 ---------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------ --------------- -------------- MIST Met/Templeton 2013 3,905,329 13.00 - 13.53 52,286,139 International Bond 2012 4,238,395 13.19 - 13.56 57,001,253 Sub-Account 2011 4,276,073 11.74 - 12.02 51,093,268 (Commenced 5/4/2009) 2010 2,982,596 12.04 - 12.22 36,302,425 2009 775,327 10.84 - 10.90 8,438,524 MIST MetLife Aggressive 2013 42,451,280 14.53 - 16.59 659,971,504 Strategy Sub-Account 2012 44,655,767 11.48 - 12.93 545,044,070 2011 49,390,389 10.07 - 10.98 524,691,864 2010 45,689,702 10.94 - 11.78 522,967,837 2009 41,343,573 9.62 - 10.23 412,402,731 MIST MetLife Balanced Plus 2013 547,096,627 11.51 - 11.96 6,454,726,976 Sub-Account 2012 438,994,467 10.30 - 10.55 4,593,209,415 (Commenced 5/2/2011) 2011 257,076,022 9.33 - 9.40 2,411,774,661 MIST MetLife Balanced 2013 519,201,421 14.02 - 16.02 7,812,083,177 Strategy Sub-Account 2012 550,560,779 12.02 - 13.53 7,045,806,333 2011 592,824,603 10.80 - 11.77 6,764,659,086 2010 546,381,907 11.25 - 12.12 6,437,293,439 2009 458,932,798 10.14 - 10.79 4,832,135,577 MIST MetLife Defensive 2013 140,580,521 13.08 - 14.94 1,972,799,136 Strategy Sub-Account 2012 178,585,503 12.28 - 13.82 2,332,865,728 2011 186,262,512 11.33 - 12.48 2,228,739,665 2010 167,912,074 11.40 - 12.39 2,003,850,499 2009 134,240,318 10.52 - 11.28 1,466,386,791 MIST MetLife Growth 2013 434,876,747 14.54 - 16.61 6,767,059,518 Strategy Sub-Account 2012 407,576,342 11.83 - 13.31 5,115,649,012 2011 446,977,194 10.46 - 11.40 4,926,470,881 2010 473,161,406 11.14 - 12.00 5,512,372,206 2009 490,302,032 9.88 - 10.51 5,026,063,304 MIST MetLife Moderate 2013 247,107,077 13.70 - 15.64 3,631,779,008 Strategy Sub-Account 2012 266,549,696 12.27 - 13.82 3,483,723,904 2011 281,377,647 11.18 - 12.19 3,324,311,655 2010 257,780,425 11.46 - 12.34 3,094,289,659 2009 201,975,022 10.44 - 11.11 2,188,428,006 MIST MetLife Multi-Index 2013 153,950,143 1.12 - 11.26 209,957,052 Targeted Risk Sub-Account 2012 11,094,386 1.01 11,247,979 (Commenced 11/12/2012) MIST MFS Emerging Markets 2013 41,623,177 10.29 - 12.45 456,076,892 Equity Sub-Account 2012 38,352,212 11.09 - 13.41 448,693,258 2011 37,004,554 9.55 - 11.54 369,675,163 2010 29,287,659 12.03 - 14.53 365,169,255 2009 18,534,256 9.96 - 12.02 189,762,080 MIST MFS Research 2013 19,616,483 15.39 - 18.44 331,488,461 International Sub-Account 2012 21,667,563 13.21 - 15.60 311,615,422 2011 22,841,018 11.58 - 13.42 285,814,827 2010 22,399,698 13.27 - 15.17 318,521,626 2009 21,694,779 12.19 - 13.75 281,155,296 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MIST Met/Templeton 2013 2.02 1.30 - 2.15 (1.11) - (0.27) International Bond 2012 10.26 1.30 - 2.05 11.96 - 12.80 Sub-Account 2011 6.86 1.30 - 2.20 (2.49) - (1.61) (Commenced 5/4/2009) 2010 0.51 1.30 - 2.20 11.07 - 12.08 2009 -- 1.30 - 2.20 8.40 - 9.00 MIST MetLife Aggressive 2013 0.75 0.90 - 2.35 26.50 - 28.35 Strategy Sub-Account 2012 0.64 0.90 - 2.35 2.91 - 15.40 2011 1.10 1.15 - 2.35 (7.96) - (6.85) 2010 1.18 1.15 - 2.35 13.80 - 15.17 2009 -- 1.15 - 2.35 29.56 - 31.13 MIST MetLife Balanced Plus 2013 1.19 0.90 - 2.35 11.71 - 13.34 Sub-Account 2012 -- 0.90 - 2.35 4.67 - 11.81 (Commenced 5/2/2011) 2011 0.27 1.15 - 2.25 (6.68) - (6.00) MIST MetLife Balanced 2013 2.01 0.90 - 2.35 16.65 - 18.35 Strategy Sub-Account 2012 2.15 0.90 - 2.35 3.72 - 12.62 2011 1.58 1.15 - 2.35 (3.98) - (2.82) 2010 2.05 1.15 - 2.35 10.96 - 12.28 2009 -- 1.15 - 2.35 25.35 - 26.87 MIST MetLife Defensive 2013 3.03 0.90 - 2.35 6.55 - 8.10 Strategy Sub-Account 2012 2.83 0.90 - 2.35 3.87 - 9.80 2011 2.22 1.00 - 2.35 (0.59) - 0.76 2010 3.05 1.00 - 2.35 8.32 - 9.80 2009 2.86 1.00 - 2.35 14.50 - 21.50 MIST MetLife Growth 2013 1.40 0.90 - 2.35 22.99 - 24.79 Strategy Sub-Account 2012 1.66 0.90 - 2.35 3.45 - 14.39 2011 1.54 1.15 - 2.35 (6.10) - (4.98) 2010 1.71 1.15 - 2.35 12.81 - 14.17 2009 -- 1.15 - 2.35 27.08 - 28.61 MIST MetLife Moderate 2013 2.38 0.90 - 2.35 11.57 - 13.20 Strategy Sub-Account 2012 2.66 0.90 - 2.35 3.72 - 11.10 2011 1.83 1.15 - 2.35 (2.43) - (1.26) 2010 2.46 1.15 - 2.35 9.79 - 11.12 2009 3.18 1.15 - 2.35 23.16 - 24.65 MIST MetLife Multi-Index 2013 0.55 1.15 - 2.25 4.04 - 11.65 Targeted Risk Sub-Account 2012 -- 1.15 - 2.00 2.56 - 2.68 (Commenced 11/12/2012) MIST MFS Emerging Markets 2013 1.07 0.90 - 2.35 (7.19) - (5.83) Equity Sub-Account 2012 0.75 0.90 - 2.35 3.96 - 17.77 2011 1.39 0.95 - 2.35 (20.59) - (19.48) 2010 0.97 0.95 - 2.35 20.79 - 22.49 2009 1.45 0.95 - 2.35 65.01 - 67.34 MIST MFS Research 2013 2.58 0.90 - 2.35 16.49 - 18.19 International Sub-Account 2012 1.89 0.90 - 2.35 6.35 - 15.60 2011 1.88 0.95 - 2.35 (12.79) - (11.56) 2010 1.70 0.95 - 2.35 8.83 - 10.35 2009 3.12 0.95 - 2.35 28.50 - 30.32
132 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 --------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------ --------------- -------------- MIST Morgan Stanley Mid Cap 2013 13,099,903 2.79 - 24.94 244,579,234 Growth Sub-Account 2012 12,225,316 2.03 - 18.06 166,100,095 2011 8,735,505 1.88 - 16.63 109,412,403 2010 6,606,286 2.04 - 17.98 89,015,672 2009 5,166,934 9.84 - 11.09 54,290,087 MIST Oppenheimer Global 2013 3,127,720 21.72 - 27.49 78,398,573 Equity Sub-Account 2012 500,711 18.48 - 21.83 9,983,469 2011 559,531 15.55 - 17.64 9,330,001 2010 608,969 17.31 - 19.88 11,272,119 2009 672,213 15.23 - 17.32 10,903,654 MIST PIMCO Inflation 2013 57,648,505 13.13 - 15.33 821,456,089 Protected Bond Sub-Account 2012 64,013,091 14.82 - 17.05 1,021,039,296 2011 63,087,877 13.90 - 15.36 936,595,819 2010 52,467,468 12.81 - 13.99 711,162,874 2009 37,506,865 12.17 - 13.14 478,661,744 MIST PIMCO Total Return 2013 118,419,838 12.03 - 19.16 1,993,786,948 Sub-Account 2012 128,302,689 12.42 - 19.67 2,234,370,461 2011 132,311,947 11.50 - 18.11 2,140,758,433 2010 111,149,390 11.27 - 17.67 1,761,602,464 2009 71,654,403 10.54 - 16.44 1,055,450,302 MIST Pioneer Fund 2013 12,432,551 2.58 - 28.13 297,755,670 Sub-Account 2012 11,331,680 9.91 - 21.33 220,043,655 2011 9,480,402 9.11 - 19.29 168,467,083 2010 5,977,317 16.24 - 20.40 112,914,666 2009 3,239,380 14.30 - 17.72 53,308,711 MIST Pioneer Strategic 2013 41,450,021 2.53 - 31.43 919,328,857 Income Sub-Account 2012 29,638,373 13.34 - 31.23 804,777,040 2011 24,444,162 12.25 - 27.99 600,261,549 2010 17,115,149 12.17 - 27.26 419,601,867 2009 10,957,582 11.11 - 24.54 251,000,578 MIST Pyramis Government 2013 69,488,361 10.04 - 10.44 715,739,557 Income Sub-Account 2012 88,599,553 10.77 - 11.03 968,887,238 (Commenced 5/2/2011) 2011 45,618,019 10.69 - 10.77 490,473,351 MIST Pyramis Managed 2013 7,294,047 10.69 - 10.77 78,417,229 Risk Sub-Account (Commenced 4/29/2013) MIST Schroders Global 2013 375,261,358 1.14 - 1.17 435,205,689 Multi-Asset Sub-Account 2012 179,641,654 1.06 - 1.07 191,885,161 (Commenced 4/30/2012) MIST SSgA Growth and Income 2013 110,435,377 13.34 - 15.03 1,578,178,677 ETF Sub-Account 2012 118,446,237 12.09 - 13.24 1,521,502,479 2011 120,297,977 10.97 - 11.83 1,390,741,062 2010 85,827,962 11.20 - 11.84 995,772,752 2009 29,942,630 10.20 - 10.67 314,125,011 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MIST Morgan Stanley Mid Cap 2013 0.60 0.89 - 2.30 35.86 - 38.07 Growth Sub-Account 2012 -- 0.89 - 2.30 (4.93) - 8.58 2011 0.56 0.89 - 2.30 (9.04) - (7.49) 2010 0.01 0.89 - 2.30 17.15 - 30.84 2009 -- 0.95 - 2.30 53.69 - 55.79 MIST Oppenheimer Global 2013 0.35 0.90 - 2.30 24.22 - 25.97 Equity Sub-Account 2012 1.40 0.90 - 1.95 8.80 - 19.84 2011 1.79 0.95 - 1.95 (10.17) - (9.41) 2010 1.34 0.95 - 1.95 13.69 - 14.83 2009 2.29 0.95 - 1.95 37.10 - 38.48 MIST PIMCO Inflation 2013 2.20 0.90 - 2.35 (11.38) - (10.09) Protected Bond Sub-Account 2012 3.02 0.90 - 2.35 4.22 - 7.82 2011 1.62 1.20 - 2.35 8.56 - 9.82 2010 2.23 1.20 - 2.35 5.26 - 6.48 2009 3.18 1.20 - 2.35 15.31 - 16.64 MIST PIMCO Total Return 2013 4.27 0.89 - 2.35 (4.19) - (2.59) Sub-Account 2012 3.13 0.89 - 2.35 4.10 - 8.58 2011 2.62 0.89 - 2.35 (0.31) - 2.51 2010 3.20 0.89 - 2.35 5.65 - 7.45 2009 6.39 0.89 - 2.35 15.29 - 17.35 MIST Pioneer Fund 2013 3.15 0.90 - 2.30 9.33 - 31.88 Sub-Account 2012 1.45 0.90 - 2.30 0.85 - 9.54 2011 1.11 0.95 - 2.30 (11.94) - (5.45) 2010 0.78 0.95 - 2.30 13.47 - 15.12 2009 1.52 0.95 - 2.30 21.07 - 27.31 MIST Pioneer Strategic 2013 4.82 0.90 - 2.35 (0.94) - 1.21 Income Sub-Account 2012 4.73 0.90 - 2.35 6.09 - 10.56 2011 4.36 0.95 - 2.35 1.06 - 2.65 2010 4.58 0.95 - 2.20 5.21 - 11.12 2009 4.72 0.95 - 2.15 23.08 - 31.83 MIST Pyramis Government 2013 1.55 0.90 - 2.35 (6.74) - (5.37) Income Sub-Account 2012 0.02 0.90 - 2.35 0.74 - 1.96 (Commenced 5/2/2011) 2011 0.89 1.15 - 2.25 6.96 - 7.75 MIST Pyramis Managed 2013 1.65 1.15 - 2.25 4.66 - 5.43 Risk Sub-Account (Commenced 4/29/2013) MIST Schroders Global 2013 0.01 0.90 - 2.35 7.55 - 9.12 Multi-Asset Sub-Account 2012 1.49 0.90 - 2.35 5.01 - 6.03 (Commenced 4/30/2012) MIST SSgA Growth and Income 2013 2.51 0.90 - 2.35 10.31 - 11.92 ETF Sub-Account 2012 2.40 1.10 - 2.35 4.01 - 11.55 2011 1.70 1.15 - 2.35 (1.29) - (0.09) 2010 1.05 1.15 - 2.20 9.80 - 10.96 2009 0.78 1.15 - 2.20 22.17 - 23.97
133 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 ---------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------ ---------------- -------------- MIST SSgA Growth ETF 2013 35,919,224 13.27 - 14.96 509,607,858 Sub-Account 2012 36,733,044 11.51 - 12.55 448,167,959 2011 37,984,453 10.24 - 11.04 409,132,829 2010 29,136,066 10.71 - 11.41 325,453,346 2009 16,443,398 9.67 - 10.11 163,291,494 MIST T. Rowe Price Large 2013 11,320,980 38.18 - 128.69 657,944,319 Cap Value Sub-Account 2012 12,231,249 28.88 - 96.83 536,790,380 2011 13,446,503 24.76 - 82.60 507,039,092 2010 14,212,118 26.09 - 86.60 558,423,606 2009 14,942,501 22.55 - 74.47 502,483,411 MIST T. Rowe Price Mid Cap 2013 37,965,912 13.67 - 15.54 568,882,747 Growth Sub-Account 2012 41,941,697 10.24 - 11.53 467,536,275 2011 44,089,511 9.22 - 10.28 439,146,325 2010 40,356,445 9.67 - 10.58 414,850,131 2009 31,597,201 7.75 - 8.40 258,174,943 MIST Third Avenue Small Cap 2013 13,992,716 21.87 - 26.40 330,701,962 Value Sub-Account 2012 15,859,523 16.91 - 20.06 287,540,317 2011 18,611,699 14.67 - 17.11 290,532,427 2010 18,793,984 16.49 - 18.91 327,520,477 2009 17,777,766 14.06 - 15.88 262,479,306 MSF Baillie Gifford 2013 29,549,817 4.51 - 15.12 303,453,047 International Stock 2012 219,106 3.96 - 13.35 2,585,607 Sub-Account 2011 282,028 3.36 - 11.37 2,803,543 2010 318,412 4.26 - 14.47 3,979,701 2009 337,655 4.02 - 13.77 3,955,132 MSF Barclays Aggregate 2013 13,536,937 1.71 - 18.22 162,571,849 Bond Index Sub-Account 2012 10,756,748 1.78 - 18.82 151,553,766 2011 8,083,366 1.73 - 18.28 130,173,979 2010 5,646,137 14.02 - 17.15 86,674,964 2009 2,010,364 13.73 - 16.32 29,893,966 MSF BlackRock Bond Income 2013 1,054,348 44.86 - 72.01 57,251,907 Sub-Account 2012 1,045,629 46.32 - 73.22 57,888,933 2011 953,075 44.15 - 68.69 49,538,985 2010 952,834 42.45 - 65.04 47,336,145 2009 911,026 40.15 - 60.57 42,636,576 MSF BlackRock Capital 2013 721,215 15.83 - 48.60 15,272,342 Appreciation Sub-Account 2012 745,728 12.04 - 36.54 11,831,610 2011 814,200 10.75 - 32.23 11,348,650 2010 601,185 12.06 - 35.71 9,563,155 2009 612,808 10.28 - 30.07 8,419,085 MSF BlackRock Large Cap 2013 225,190 16.80 - 17.73 3,792,926 Value Sub-Account 2012 230,438 12.89 - 13.54 2,977,532 2011 252,494 11.44 - 11.96 2,890,664 2010 253,453 11.33 - 11.79 2,872,585 2009 264,703 10.51 - 10.89 2,783,413 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MIST SSgA Growth ETF 2013 2.10 0.90 - 2.35 15.33 - 17.01 Sub-Account 2012 1.96 1.15 - 2.35 4.38 - 13.71 2011 1.56 1.15 - 2.35 (4.40) - (3.24) 2010 1.35 1.15 - 2.35 11.50 - 12.85 2009 0.93 1.15 - 2.20 26.29 - 28.66 MIST T. Rowe Price Large 2013 1.58 0.89 - 2.35 30.67 - 32.90 Cap Value Sub-Account 2012 1.50 0.89 - 2.35 6.92 - 17.22 2011 0.70 0.89 - 2.35 (6.24) - (4.62) 2010 1.11 0.89 - 2.35 14.30 - 16.29 2009 2.30 0.89 - 2.35 15.64 - 17.62 MIST T. Rowe Price Mid Cap 2013 0.21 1.30 - 2.35 33.41 - 34.82 Growth Sub-Account 2012 -- 1.30 - 2.35 11.03 - 12.21 2011 -- 1.30 - 2.35 (3.93) - (2.92) 2010 -- 1.30 - 2.35 24.72 - 26.05 2009 -- 1.30 - 2.35 42.11 - 43.59 MIST Third Avenue Small Cap 2013 0.99 0.89 - 2.35 29.37 - 31.64 Value Sub-Account 2012 -- 0.89 - 2.35 15.23 - 17.22 2011 1.10 0.89 - 2.35 (11.09) - (9.50) 2010 1.17 0.89 - 2.35 17.11 - 19.08 2009 1.15 0.89 - 2.35 23.51 - 25.70 MSF Baillie Gifford 2013 0.02 1.30 - 2.25 9.68 - 13.94 International Stock 2012 1.14 1.40 - 1.90 17.11 - 17.85 Sub-Account 2011 1.60 1.40 - 1.90 (21.63) - (20.99) 2010 1.41 1.40 - 1.90 4.85 - 5.74 2009 0.42 1.40 - 1.90 19.59 - 20.44 MSF Barclays Aggregate 2013 3.23 0.89 - 2.25 (4.74) - (3.19) Bond Index Sub-Account 2012 3.45 0.89 - 2.25 1.27 - 2.98 2011 3.22 0.89 - 2.25 4.77 - 6.56 2010 2.64 0.89 - 2.25 3.30 - 5.11 2009 3.64 0.89 - 2.15 2.27 - 4.24 MSF BlackRock Bond Income 2013 3.83 0.89 - 2.30 (3.17) - (1.65) Sub-Account 2012 2.54 0.89 - 2.30 3.74 - 6.59 2011 3.84 0.89 - 2.30 4.00 - 5.62 2010 3.77 0.89 - 2.30 5.72 - 7.38 2009 6.49 0.89 - 2.30 6.81 - 8.50 MSF BlackRock Capital 2013 0.79 0.89 - 2.30 31.17 - 33.03 Appreciation Sub-Account 2012 0.32 0.89 - 2.30 (0.88) - 13.35 2011 0.17 0.89 - 2.30 (11.01) - (9.75) 2010 0.22 0.89 - 2.30 17.10 - 18.76 2009 0.15 0.89 - 2.30 28.77 - 35.57 MSF BlackRock Large Cap 2013 1.38 0.89 - 1.35 30.28 - 30.88 Value Sub-Account 2012 1.61 0.89 - 1.35 12.74 - 13.27 2011 1.16 0.89 - 1.35 0.97 - 1.44 2010 1.09 0.89 - 1.35 7.75 - 8.26 2009 1.58 0.89 - 1.35 9.73 - 10.22
134 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 -------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------ --------------- ------------- MSF BlackRock Money Market 2013 44,329,198 2.36 - 25.88 461,342,890 Sub-Account 2012 53,484,009 9.33 - 25.53 569,109,901 2011 59,067,302 9.55 - 25.84 633,625,012 2010 51,015,018 9.77 - 26.15 553,885,805 2009 54,211,009 9.99 - 26.46 576,532,284 MSF Davis Venture Value 2013 36,209,587 16.00 - 52.55 658,561,438 Sub-Account 2012 41,401,029 12.26 - 39.65 572,327,325 2011 48,368,185 11.12 - 35.45 599,153,697 2010 46,415,423 11.87 - 37.27 606,785,200 2009 41,123,511 10.86 - 33.58 487,864,492 MSF Frontier Mid Cap 2013 4,767,721 16.33 - 18.08 83,651,163 Growth Sub-Account (Commenced 4/29/2013) MSF Jennison Growth 2013 32,574,197 3.93 - 19.82 585,624,219 Sub-Account 2012 35,125,323 2.91 - 14.55 468,764,846 2011 20,877,221 2.55 - 12.29 248,172,110 2010 20,230,170 2.57 - 12.42 243,817,657 2009 17,375,446 2.33 - 11.31 190,651,501 MSF Loomis Sayles Small Cap 2013 283,327 46.30 - 57.49 14,610,773 Core Sub-Account 2012 330,015 33.68 - 41.36 12,332,225 2011 310,374 30.16 - 36.63 10,317,247 2010 214,307 30.76 - 36.95 7,224,075 2009 73,444 25.33 - 29.40 1,990,671 MSF Loomis Sayles Small Cap 2013 12,506 17.15 - 18.50 226,802 Growth Sub-Account 2012 3,306 11.73 - 12.58 40,927 (Commenced 4/30/2012) MSF Met/Artisan Mid Cap 2013 13,125,790 19.41 - 55.03 285,771,010 Value Sub-Account 2012 13,419,571 14.54 - 40.57 217,257,576 2011 14,599,235 13.33 - 36.59 215,514,020 2010 15,163,945 12.80 - 34.58 213,857,206 2009 15,659,935 11.41 - 30.33 195,923,686 MSF Met/Dimensional 2013 3,208,551 19.88 - 21.38 66,162,419 International Small Company 2012 3,203,412 15.91 - 16.90 52,618,293 Sub-Account 2011 3,336,605 13.82 - 14.29 47,225,164 2010 2,082,274 16.89 - 17.28 35,750,236 2009 1,225,665 14.11 - 14.28 17,436,960 MSF MetLife Conservative 2013 557,035 12.93 - 13.63 7,497,408 Allocation Sub-Account 2012 735,694 12.67 - 13.27 9,655,026 2011 850,770 11.86 - 12.35 10,395,348 2010 830,223 11.74 - 12.15 9,998,191 2009 967,744 10.85 - 11.21 10,771,428 MSF MetLife Conservative to 2013 550,896 13.60 - 14.27 7,732,376 Moderate Allocation 2012 588,986 12.52 - 13.07 7,576,787 Sub-Account 2011 608,383 11.48 - 11.91 7,143,945 2010 782,775 11.60 - 11.97 9,257,856 2009 836,071 10.62 - 10.90 9,016,185 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MSF BlackRock Money Market 2013 -- 0.90 - 2.35 (2.32) - (0.37) Sub-Account 2012 -- 0.95 - 2.35 (2.34) - (0.74) 2011 -- 0.95 - 2.35 (2.32) - (0.94) 2010 -- 0.95 - 2.35 (2.32) - (0.64) 2009 0.25 1.00 - 2.35 (2.07) - (0.48) MSF Davis Venture Value 2013 1.27 0.89 - 2.35 30.43 - 32.52 Sub-Account 2012 0.72 0.89 - 2.35 1.16 - 11.86 2011 1.01 0.89 - 2.35 (11.86) - (4.88) 2010 0.87 0.89 - 2.35 9.22 - 11.01 2009 1.37 0.89 - 2.35 28.77 - 30.82 MSF Frontier Mid Cap 2013 -- 1.30 - 2.35 19.21 - 20.07 Growth Sub-Account (Commenced 4/29/2013) MSF Jennison Growth 2013 0.20 0.90 - 2.35 33.56 - 35.51 Sub-Account 2012 0.01 0.95 - 2.35 (4.12) - 14.17 2011 0.06 1.30 - 2.35 (2.11) - (0.86) 2010 0.38 1.30 - 2.35 8.74 - 10.07 2009 -- 1.30 - 2.35 36.32 - 38.02 MSF Loomis Sayles Small Cap 2013 0.23 1.20 - 2.30 37.49 - 39.01 Core Sub-Account 2012 -- 1.20 - 2.30 11.66 - 12.90 2011 -- 1.20 - 2.30 (1.94) - (0.86) 2010 -- 1.20 - 2.30 24.32 - 25.69 2009 -- 1.20 - 2.15 27.16 - 28.38 MSF Loomis Sayles Small Cap 2013 -- 0.90 - 1.50 46.17 - 47.05 Growth Sub-Account 2012 -- 0.90 - 1.50 (1.28) - (0.88) (Commenced 4/30/2012) MSF Met/Artisan Mid Cap 2013 0.77 0.89 - 2.35 33.34 - 35.64 Value Sub-Account 2012 0.80 0.89 - 2.35 8.98 - 10.87 2011 0.79 0.89 - 2.35 4.02 - 5.81 2010 0.59 0.89 - 2.35 12.09 - 14.02 2009 0.84 0.89 - 2.35 37.92 - 40.31 MSF Met/Dimensional 2013 1.72 0.90 - 2.30 24.70 - 26.46 International Small Company 2012 2.19 0.90 - 2.35 3.91 - 16.37 Sub-Account 2011 1.94 1.30 - 2.35 (18.19) - (17.33) 2010 1.30 1.30 - 2.35 19.74 - 21.01 2009 -- 1.30 - 2.35 39.40 - 40.87 MSF MetLife Conservative 2013 3.04 1.55 - 2.15 2.07 - 2.68 Allocation Sub-Account 2012 3.27 1.55 - 2.15 6.85 - 7.49 2011 2.37 1.55 - 2.15 1.06 - 1.66 2010 4.06 1.55 - 2.15 7.71 - 8.36 2009 3.20 1.55 - 2.25 17.85 - 18.68 MSF MetLife Conservative to 2013 2.53 1.55 - 2.10 8.62 - 9.22 Moderate Allocation 2012 2.95 1.55 - 2.10 9.13 - 9.74 Sub-Account 2011 2.14 1.55 - 2.10 (1.04) - (0.50) 2010 3.38 1.55 - 2.10 9.21 - 9.81 2009 3.07 1.55 - 2.10 21.11 - 21.78
135 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 Mid Cap Stock 2013 5,501,359 2.64 - 28.20 125,884,078 1.00 0.89 - 2.35 29.67 - 31.97 Index Sub-Account 2012 4,914,049 2.01 - 21.37 88,989,701 0.82 0.89 - 2.35 14.53 - 16.55 2011 4,708,991 1.73 - 18.33 77,805,929 0.70 0.89 - 2.35 (4.50) - (2.76) 2010 3,443,301 15.77 - 18.85 59,472,935 0.76 0.89 - 2.20 23.19 - 25.17 2009 1,692,693 12.86 - 15.06 23,983,061 1.55 0.89 - 2.15 28.41 - 35.78 MSF MetLife Moderate 2013 3,073,122 13.90 - 14.77 44,655,421 2.00 1.55 - 2.25 15.36 - 16.17 Allocation Sub-Account 2012 3,326,548 12.05 - 12.71 41,689,448 2.39 1.55 - 2.25 10.71 - 11.49 2011 3,930,913 10.88 - 11.40 44,282,730 1.52 1.55 - 2.25 (3.55) - (2.89) 2010 4,192,524 11.28 - 11.74 48,715,861 2.53 1.55 - 2.25 10.65 - 11.44 2009 4,293,013 10.20 - 10.54 44,856,785 2.96 1.55 - 2.25 23.72 - 24.58 MSF MetLife Moderate to 2013 3,927,901 14.05 - 14.80 57,260,787 1.46 1.55 - 2.15 21.67 - 22.40 Aggressive Allocation 2012 4,335,356 11.55 - 12.09 51,720,857 1.91 1.55 - 2.15 12.92 - 13.60 Sub-Account 2011 4,632,179 10.23 - 10.65 48,721,974 1.43 1.55 - 2.15 (5.81) - (5.25) 2010 5,194,016 10.86 - 11.24 57,766,976 2.14 1.55 - 2.15 12.25 - 12.94 2009 5,328,120 9.67 - 9.95 52,562,753 2.53 1.55 - 2.15 26.35 - 27.11 MSF MetLife Stock Index 2013 28,624,388 6.28 - 69.33 561,274,487 1.68 0.89 - 2.90 28.14 - 30.85 Sub-Account 2012 29,109,224 4.82 - 52.98 446,759,028 1.55 0.89 - 2.90 12.30 - 14.73 2011 25,347,914 4.22 - 46.18 355,993,780 1.55 0.89 - 2.90 (1.15) - 0.94 2010 23,801,960 11.03 - 45.76 343,187,076 1.63 0.89 - 2.90 11.41 - 13.81 2009 21,150,594 9.85 - 40.20 281,243,641 2.10 0.89 - 2.90 23.01 - 26.75 MSF MFS Total Return 2013 814,124 46.24 - 71.07 46,044,412 2.31 0.89 - 2.30 16.06 - 17.94 Sub-Account 2012 730,405 41.41 - 60.26 35,344,618 2.78 0.89 - 2.15 2.75 - 10.59 2011 826,212 38.00 - 54.49 36,390,818 2.68 0.89 - 2.15 0.04 - 1.51 2010 929,202 37.99 - 53.68 40,676,709 2.91 0.89 - 2.15 7.53 - 9.10 2009 1,006,138 35.33 - 49.20 40,772,224 4.14 0.89 - 2.15 15.84 - 17.55 MSF MFS Value Sub-Account 2013 12,139,878 12.05 - 23.85 260,473,964 0.55 0.89 - 2.35 17.10 - 34.53 2012 3,025,966 14.12 - 17.78 48,275,261 1.94 0.89 - 2.30 3.00 - 15.61 2011 3,145,406 12.27 - 14.81 43,754,913 1.57 0.89 - 2.30 (1.43) - (0.04) 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 MSF MSCI EAFE Index 2013 8,809,646 1.61 - 17.40 112,197,169 2.89 0.89 - 2.25 18.74 - 20.78 Sub-Account 2012 7,172,234 1.34 - 14.41 81,404,548 2.89 0.89 - 2.15 15.42 - 17.27 2011 6,390,970 1.15 - 12.29 69,159,210 2.23 0.89 - 2.15 (14.50) - (13.28) 2010 4,636,491 11.54 - 14.17 58,834,689 2.24 0.89 - 2.15 5.47 - 7.24 2009 2,230,107 10.94 - 13.21 27,098,496 3.30 0.89 - 2.15 26.95 - 35.25 MSF Neuberger Berman 2013 8,020,175 18.58 - 27.70 172,247,460 0.10 0.89 - 2.35 24.94 - 37.30 Genesis Sub-Account 2012 626,194 16.44 - 20.18 11,798,908 0.34 0.89 - 2.30 7.25 - 9.05 2011 647,811 15.96 - 18.50 11,266,993 0.73 0.89 - 1.95 (7.38) - 4.87 2010 578,563 16.81 - 17.64 9,730,049 0.51 0.89 - 1.35 19.95 - 20.50 2009 605,787 14.02 - 14.64 8,493,213 1.10 0.89 - 1.35 11.63 - 12.15 MSF Russell 2000 Index 2013 5,835,501 2.74 - 29.98 141,070,458 1.29 0.89 - 2.35 34.91 - 37.33 Sub-Account 2012 5,078,788 2.01 - 21.83 91,750,975 0.88 0.89 - 2.35 13.24 - 15.31 2011 3,926,223 1.75 - 18.93 64,081,468 0.84 0.89 - 2.35 (6.46) - (4.95) 2010 2,703,578 7.11 - 19.92 46,792,763 0.77 0.89 - 2.35 23.61 - 25.79 2009 1,108,328 5.68 - 15.83 15,337,009 1.65 0.89 - 2.20 24.25 - 26.62
136 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 --------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------ --------------- -------------- MSF T. Rowe Price Large 2013 14,688,080 8.03 - 53.41 151,930,071 Growth Sub-Account 2012 39,346 35.99 - 39.07 1,501,612 2011 44,809 30.91 - 33.42 1,465,621 2010 40,496 31.93 - 34.38 1,365,647 2009 39,614 27.87 - 29.90 1,161,818 MSF T. Rowe Price Small Cap 2013 356,919 25.98 - 35.74 10,522,813 Growth Sub-Account 2012 380,162 18.41 - 24.95 7,808,995 2011 417,381 16.23 - 21.67 7,500,142 2010 465,332 16.01 - 21.48 8,285,648 2009 481,022 12.16 - 16.06 6,406,764 MSF Van Eck Global Natural 2013 6,278,667 16.43 - 17.17 106,449,499 Resources Sub-Account 2012 7,200,491 15.15 - 15.70 111,896,983 (Commenced 5/4/2009) 2011 6,910,683 15.07 - 15.51 106,332,935 2010 3,967,225 18.49 - 18.86 74,371,723 2009 1,195,095 14.65 - 14.80 17,635,926 MSF Western Asset 2013 16,417,493 14.93 - 19.52 291,870,388 Management U.S. Government 2012 17,244,875 15.42 - 19.89 313,310,285 Sub-Account 2011 16,038,241 15.32 - 19.49 285,529,978 2010 12,558,586 14.90 - 18.69 214,907,918 2009 8,573,371 14.46 - 17.89 140,925,866 Neuberger Berman Genesis 2013 474 23.21 10,991 Sub-Account 2012 474 17.11 8,101 2011 474 15.72 7,443 2010 571 15.16 8,663 2009 697 12.60 8,785 Oppenheimer VA Core Bond 2013 1,493 5.79 8,646 Sub-Account 2012 1,541 5.88 9,058 2011 1,878 5.41 10,150 2010 1,952 5.06 9,885 2009 12,533 4.61 57,756 Oppenheimer VA Global 2013 443 10.15 4,492 Strategic Income Sub-Account 2012 443 10.30 4,562 2011 443 9.20 4,075 2010 443 9.25 4,097 2009 1,786 8.16 14,575 Oppenheimer VA Main Street 2013 14,316 7.27 104,039 Sub-Account 2012 14,959 5.59 83,663 2011 22,109 4.85 107,300 2010 24,227 4.92 119,249 2009 28,105 4.30 120,826 Oppenheimer VA Main Street 2013 4,655,290 16.15 - 27.82 123,045,407 Small Cap Sub-Account 2012 5,041,901 11.62 - 19.97 96,092,155 2011 4,964,464 9.98 - 17.13 81,494,321 2010 4,127,208 10.35 - 17.72 70,331,777 2009 3,126,840 8.51 - 14.54 43,881,910 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- MSF T. Rowe Price Large 2013 -- 0.89 - 2.35 26.10 - 37.93 Growth Sub-Account 2012 -- 1.50 - 1.90 16.43 - 16.90 2011 -- 1.50 - 1.90 (3.19) - (2.80) 2010 0.07 1.50 - 1.90 14.55 - 15.01 2009 0.32 1.50 - 1.90 40.35 - 40.91 MSF T. Rowe Price Small Cap 2013 0.22 0.89 - 2.15 41.11 - 43.27 Growth Sub-Account 2012 -- 0.89 - 2.15 13.43 - 15.14 2011 -- 0.89 - 2.15 (0.70) - 0.87 2010 -- 0.89 - 2.30 31.60 - 33.71 2009 0.12 0.89 - 2.30 35.49 - 37.73 MSF Van Eck Global Natural 2013 0.66 1.30 - 2.15 8.40 - 9.32 Resources Sub-Account 2012 -- 1.30 - 2.15 0.38 - 1.25 (Commenced 5/4/2009) 2011 1.10 1.30 - 2.20 (18.49) - (17.75) 2010 0.25 1.30 - 2.20 26.22 - 27.36 2009 -- 1.30 - 2.20 35.00 - 35.82 MSF Western Asset 2013 1.95 0.95 - 2.35 (3.21) - (1.84) Management U.S. Government 2012 1.85 0.95 - 2.35 0.64 - 2.07 Sub-Account 2011 1.20 0.95 - 2.35 2.83 - 4.28 2010 2.24 0.95 - 2.35 3.04 - 4.50 2009 4.06 0.95 - 2.35 1.67 - 3.10 Neuberger Berman Genesis 2013 0.32 0.89 35.68 Sub-Account 2012 0.21 0.89 8.84 2011 0.84 0.89 3.67 2010 -- 0.89 20.30 2009 -- 0.89 25.13 Oppenheimer VA Core Bond 2013 5.14 1.40 (1.49) Sub-Account 2012 4.67 1.40 8.75 2011 5.76 1.40 6.77 2010 4.81 1.40 9.87 2009 -- 1.40 8.09 Oppenheimer VA Global 2013 4.99 1.40 (1.52) Strategic Income Sub-Account 2012 5.95 1.40 11.95 2011 3.19 1.40 (0.55) 2010 16.19 1.40 13.38 2009 0.53 1.40 17.17 Oppenheimer VA Main Street 2013 1.10 1.40 29.94 Sub-Account 2012 0.86 1.40 15.24 2011 1.27 1.40 (1.40) 2010 1.11 1.40 14.49 2009 1.94 1.40 26.52 Oppenheimer VA Main Street 2013 0.70 0.95 - 1.75 38.19 - 39.29 Small Cap Sub-Account 2012 0.33 0.95 - 1.75 15.62 - 16.55 2011 0.36 0.95 - 1.75 (4.07) - (3.30) 2010 0.37 0.95 - 1.75 20.92 - 21.90 2009 0.52 0.95 - 1.75 34.52 - 35.58
137 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 --------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------ --------------- -------------- Oppenheimer VA Money 2013 723 5.53 4,000 Sub-Account 2012 20,150 5.61 112,965 2011 20,177 5.69 114,709 2010 20,177 5.76 116,310 2009 20,177 5.84 117,917 Pioneer VCT Disciplined 2013 170,657 11.41 - 12.04 2,003,137 Value Sub-Account 2012 229,721 9.05 - 9.48 2,136,823 2011 238,409 8.34 - 8.68 2,036,161 2010 243,744 8.83 - 9.11 2,192,843 2009 223,412 8.19 - 8.44 1,867,892 Pioneer VCT Emerging 2013 46,688 14.71 - 16.31 721,583 Markets Sub-Account 2012 49,333 15.34 - 16.87 791,020 2011 48,427 14.01 - 15.29 705,700 2010 62,764 18.70 - 20.26 1,212,537 2009 60,035 16.18 - 17.74 1,020,914 Pioneer VCT Equity Income 2013 22,692 27.19 - 30.29 637,874 Sub-Account 2012 24,722 21.52 - 23.79 548,970 2011 17,862 19.96 - 21.90 371,272 2010 18,868 19.24 - 20.95 375,754 2009 20,833 16.12 - 17.79 354,460 Pioneer VCT Ibbotson Growth 2013 1,114,977 18.19 - 19.45 20,842,468 Allocation Sub-Account 2012 1,199,751 15.56 - 16.51 19,107,227 2011 1,225,572 14.18 - 14.93 17,736,364 2010 1,275,136 14.95 - 15.62 19,386,421 2009 1,257,274 13.28 - 13.78 16,934,322 Pioneer VCT Ibbotson 2013 1,660,240 17.16 - 18.76 30,201,063 Moderation Allocation 2012 1,789,015 15.09 - 16.33 28,441,628 Sub-Account 2011 1,795,010 13.82 - 14.81 25,968,930 2010 1,833,743 14.43 - 15.31 27,517,066 2009 1,818,031 12.95 - 13.60 24,317,338 Pioneer VCT Mid Cap Value 2013 1,719,853 37.64 - 45.45 71,900,042 Sub-Account 2012 1,769,793 28.91 - 34.56 56,444,927 2011 1,688,831 26.60 - 31.48 49,145,077 2010 1,493,349 28.81 - 33.76 46,621,818 2009 1,309,529 24.92 - 28.91 35,037,503 Pioneer VCT Real Estate 2013 11,399 21.20 - 23.46 252,653 Shares Sub-Account 2012 10,700 21.29 - 23.38 237,514 2011 12,968 18.70 - 20.38 251,847 2010 12,983 17.38 - 18.80 234,208 2009 16,034 13.78 - 14.80 228,918 T. Rowe Price Growth Stock 2013 62,571 133.27 8,339,192 Sub-Account 2012 66,302 96.60 6,404,585 2011 73,401 81.96 6,015,937 2010 85,875 83.50 7,170,858 2009 97,059 72.05 6,993,261 FOR THE YEAR ENDED DECEMBER 31 -------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ----------------- Oppenheimer VA Money 2013 0.01 1.40 (1.38) Sub-Account 2012 0.01 1.40 (1.39) 2011 0.01 1.40 (1.37) 2010 0.03 1.40 (1.37) 2009 0.35 1.40 (1.07) Pioneer VCT Disciplined 2013 1.59 1.20 - 1.95 26.11 - 27.06 Value Sub-Account 2012 0.98 1.20 - 1.95 8.45 - 9.27 2011 0.72 1.20 - 1.95 (5.53) - (4.82) 2010 0.58 1.20 - 1.95 7.15 - 7.96 2009 0.70 1.20 - 2.15 13.26 - 14.34 Pioneer VCT Emerging 2013 0.92 1.20 - 1.95 (4.08) - (3.36) Markets Sub-Account 2012 0.21 1.20 - 1.95 9.49 - 10.32 2011 -- 1.20 - 1.95 (25.09) - (24.53) 2010 0.32 1.20 - 1.95 13.38 - 14.23 2009 0.63 1.20 - 2.15 70.32 - 71.96 Pioneer VCT Equity Income 2013 2.29 1.20 - 1.95 26.35 - 27.30 Sub-Account 2012 3.87 1.20 - 1.95 7.83 - 8.65 2011 2.00 1.20 - 1.95 3.73 - 4.51 2010 2.07 1.20 - 1.95 16.93 - 17.81 2009 3.38 1.20 - 2.15 11.47 - 12.53 Pioneer VCT Ibbotson Growth 2013 1.76 1.20 - 1.95 16.95 - 17.83 Allocation Sub-Account 2012 1.76 1.20 - 1.95 9.72 - 10.55 2011 1.94 1.20 - 1.95 (5.14) - (4.42) 2010 1.88 1.20 - 1.95 12.55 - 13.39 2009 2.87 1.20 - 1.95 30.11 - 31.09 Pioneer VCT Ibbotson 2013 2.31 1.20 - 2.20 13.71 - 14.85 Moderation Allocation 2012 2.47 1.20 - 2.20 9.14 - 10.25 Sub-Account 2011 2.49 1.20 - 2.20 (4.21) - (3.25) 2010 2.53 1.20 - 2.20 11.44 - 12.56 2009 3.10 1.20 - 2.20 28.59 - 29.89 Pioneer VCT Mid Cap Value 2013 0.74 0.95 - 1.95 30.19 - 31.50 Sub-Account 2012 0.84 0.95 - 1.95 8.67 - 9.77 2011 0.64 0.95 - 1.95 (7.66) - (6.73) 2010 0.87 0.95 - 1.95 15.62 - 16.78 2009 1.29 0.95 - 1.95 22.85 - 24.08 Pioneer VCT Real Estate 2013 2.16 1.20 - 1.95 (0.42) - 0.33 Shares Sub-Account 2012 2.11 1.20 - 1.95 13.84 - 14.70 2011 2.24 1.20 - 1.95 7.64 - 8.45 2010 2.42 1.20 - 1.95 26.06 - 27.01 2009 4.81 1.20 - 1.95 29.02 - 29.98 T. Rowe Price Growth Stock 2013 0.04 0.89 37.97 Sub-Account 2012 0.18 0.89 17.86 2011 0.02 0.89 (1.85) 2010 0.06 0.89 15.89 2009 0.21 0.89 41.98
138 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 --------------------------------------------- UNIT VALUE LOWEST TO NET UNITS HIGHEST ($) ASSETS ($) ------------ --------------- -------------- T. Rowe Price International 2013 41,360 15.85 655,401 Stock Sub-Account 2012 45,736 13.99 639,881 2011 59,337 11.89 705,529 2010 68,117 13.68 932,126 2009 72,797 12.06 877,970 T. Rowe Price Prime Reserve 2013 31,743 17.59 558,449 Sub-Account 2012 40,746 17.75 723,146 2011 54,384 17.91 973,756 2010 70,013 18.06 1,264,618 2009 76,856 18.22 1,400,475 UIF U.S. Real Estate 2013 2,531,191 27.80 - 60.27 100,974,977 Sub-Account 2012 2,343,331 27.76 - 59.62 90,757,950 2011 2,367,197 24.43 - 51.96 76,564,905 2010 2,327,750 23.50 - 49.52 68,963,648 2009 2,542,094 18.43 - 38.47 56,466,102 FOR THE YEAR ENDED DECEMBER 31 ------------------------------------------------- INVESTMENT(1) EXPENSE RATIO(2) TOTAL RETURN(3) INCOME LOWEST TO LOWEST TO RATIO (%) HIGHEST (%) HIGHEST (%) ------------- ---------------- ---------------- T. Rowe Price International 2013 0.97 0.89 13.26 Stock Sub-Account 2012 1.21 0.89 17.66 2011 1.20 0.89 (13.11) 2010 1.13 0.89 13.46 2009 2.49 0.89 50.86 T. Rowe Price Prime Reserve 2013 0.01 0.89 (0.87) Sub-Account 2012 0.01 0.89 (0.88) 2011 0.01 0.89 (0.87) 2010 0.01 0.89 (0.87) 2009 0.22 0.89 (0.70) UIF U.S. Real Estate 2013 1.09 0.95 - 1.90 0.13 - 1.09 Sub-Account 2012 0.85 0.95 - 1.90 13.65 - 14.74 2011 0.85 0.95 - 1.90 3.93 - 4.92 2010 2.15 0.95 - 1.90 27.52 - 28.73 2009 3.31 0.95 - 1.90 25.93 - 27.14
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, regardless of share class, if any. These ratios exclude those expenses, such as mortality and expense risk charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The investment income ratio is calculated for each period indicated or from the effective date through the end of the reporting period. The recognition of investment income by the Sub-Account is affected by the timing of the declaration of dividends by the underlying fund or portfolio in which the Sub-Account invests. The investment income ratio is calculated as a weighted average ratio since the Sub-Account may invest in two or more share classes, within the underlying portfolio, series, or fund of the Trusts which may have unique investment income ratios. 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 the minimum and maximum returns within each product grouping of the applicable Sub-Account. 139 This page is intentionally left blank. MetLife Investors USA Insurance Company Consolidated Financial Statements As of December 31, 2013 and 2012 and for the Years Ended December 31, 2013, 2012 and 2011 and Independent Auditors' Report INDEPENDENT AUDITORS' REPORT To the Board of Directors and Stockholder of MetLife Investors USA Insurance Company: We have audited the accompanying consolidated financial statements of MetLife Investors USA Insurance Company and its subsidiaries (the "Company"), an indirect wholly-owned subsidiary of MetLife, Inc., which comprise the consolidated balance sheets as of December 31, 2013 and 2012, and the related consolidated statements of operations, comprehensive income (loss), stockholder's equity, and cash flows for each of the three years in the period ended December 31, 2013, and the related notes to the consolidated financial statements. Management's Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the consolidated financial statements in order to design 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. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of MetLife Investors USA Insurance Company and its subsidiaries as of December 31, 2013 and 2012, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2013, in accordance with accounting principles generally accepted in the United States of America. Other Matter Results of the Company may not be indicative of those of a stand-alone entity, as the Company is a member of a controlled group of affiliated companies. /s/ DELOITTE & TOUCHE LLP Certified Public Accountants Philadelphia, Pennsylvania April 8, 2014 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Consolidated Balance Sheets December 31, 2013 and 2012 (In millions, except share and per share data)
2013 2012 ------------ ------------ Assets Investments: Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $10,757 and $9,987, respectively).......................... $ 11,214 $ 11,387 Equity securities available-for-sale, at estimated fair value (cost: $113 and $33, respectively).......................................................... 99 34 Mortgage loans (net of valuation allowances of $8 and $8, respectively)....... 1,826 1,678 Policy loans.................................................................. 151 130 Real estate and real estate joint ventures.................................... 190 175 Other limited partnership interests........................................... 799 650 Short-term investments, at estimated fair value............................... 504 722 Other invested assets......................................................... 524 560 ------------ ------------ Total investments........................................................... 15,307 15,336 Cash and cash equivalents...................................................... 100 122 Accrued investment income...................................................... 134 135 Premiums, reinsurance and other receivables.................................... 12,468 14,492 Deferred policy acquisition costs.............................................. 3,624 2,906 Current income tax recoverable................................................. 108 137 Other assets................................................................... 692 725 Separate account assets........................................................ 81,745 70,876 ------------ ------------ Total assets.............................................................. $ 114,178 $ 104,729 ============ ============ Liabilities and Stockholder's Equity Liabilities Future policy benefits......................................................... $ 5,415 $ 4,402 Policyholder account balances.................................................. 11,066 12,937 Other policy-related balances.................................................. 2,649 2,607 Payables for collateral under securities loaned and other transactions......... 1,547 1,823 Long-term debt................................................................. 40 41 Deferred income tax liability.................................................. 1,113 1.383 Other liabilities.............................................................. 5,796 5,389 Separate account liabilities................................................... 81,745 70,876 ------------ ------------ Total liabilities......................................................... 109,371 99,458 ------------ ------------ Contingencies, Commitments and Guarantees (Note 12) 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..................................................... 2,534 2,520 Retained earnings.............................................................. 1,997 1,832 Accumulated other comprehensive income (loss).................................. 274 917 ------------ ------------ Total stockholder's equity................................................ 4,807 5,271 ------------ ------------ Total liabilities and stockholder's equity................................ $ 114,178 $ 104,729 ============ ============
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, 2013, 2012 and 2011 (In millions)
2013 2012 2011 --------- --------- --------- Revenues Premiums....................................................... $ 333 $ 428 $ 647 Universal life and investment-type product policy fees......... 1,691 1,585 1,288 Net investment income.......................................... 726 661 586 Other revenues................................................. 422 327 314 Net investment gains (losses): Other-than-temporary impairments on fixed maturity securities. (3) (4) -- Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss)............ -- 2 (2) Other net investment gains (losses)........................... 9 27 (5) --------- --------- --------- Total net investment gains (losses)......................... 6 25 (7) Net derivative gains (losses)................................. (1,005) 1,135 725 --------- --------- --------- Total revenues............................................ 2,173 4,161 3,553 --------- --------- --------- Expenses Policyholder benefits and claims............................... 571 802 779 Interest credited to policyholder account balances............. 419 421 424 Other expenses................................................. 1,039 1,928 1,688 --------- --------- --------- Total expenses............................................ 2,029 3,151 2,891 --------- --------- --------- Income (loss) before provision for income tax.................. 144 1,010 662 Provision for income tax expense (benefit)..................... (21) 296 175 --------- --------- --------- Net income (loss).............................................. $ 165 $ 714 $ 487 ========= ========= =========
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 Comprehensive Income (Loss) For the Years Ended December 31, 2013, 2012 and 2011 (In millions)
2013 2012 2011 -------- ------- --------- Net income (loss).................................................... $ 165 $ 714 $ 487 Other comprehensive income (loss): Unrealized investment gains (losses), net of related offsets........ (853) 331 697 Unrealized gains (losses) on derivatives............................ (138) 16 199 Foreign currency translation adjustments............................ 2 (1) (1) -------- ------- --------- Other comprehensive income (loss), before income tax................. (989) 346 895 Income tax (expense) benefit related to items of other comprehensive income (loss)...................................................... 346 (121) (313) -------- ------- --------- Other comprehensive income (loss), net of income tax................. (643) 225 582 -------- ------- --------- Comprehensive income (loss).......................................... $ (478) $ 939 $ 1,069 ======== ======= =========
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 Stockholder's Equity For the Years Ended December 31, 2013, 2012 and 2011 (In millions)
Accumulated Other Comprehensive Income (Loss) --------------------------------------------- Net Unrealized Foreign Additional Investment Other-Than- Currency Preferred Common Paid-in Retained Gains Temporary Translation Stock Stock Capital Earnings (Losses) Impairments Adjustments ---------- -------- ------------ ------------ ----------- -------------- -------------- Balance at December 31, 2010 (1)............... $ -- $ 2 $ 2,520 $ 631 $ 113 $ (3) $ -- Net income (loss)....... 487 Other comprehensive income (loss), net of income tax............. 584 (1) (1) ---------- -------- ------------ ------------ ----------- -------------- -------------- Balance at December 31, 2011................... -- 2 2,520 1,118 697 (4) (1) Net income (loss)....... 714 Other comprehensive income (loss), net of income tax............. 225 1 (1) ---------- -------- ------------ ------------ ----------- -------------- -------------- Balance at December 31, 2012................... -- 2 2,520 1,832 922 (3) (2) Capital contribution.... 14 Net income (loss)....... 165 Other comprehensive income (loss), net of income tax............. (645) 1 1 ---------- -------- ------------ ------------ ----------- -------------- -------------- Balance at December 31, 2013................... $ -- $ 2 $ 2,534 $ 1,997 $ 277 $ (2) $ (1) ========== ======== ============ ============ =========== ============== ==============
Total Stockholder's Equity ------------- Balance at December 31, 2010 (1)............... $ 3,263 Net income (loss)....... 487 Other comprehensive income (loss), net of income tax............. 582 ------------- Balance at December 31, 2011................... 4,332 Net income (loss)....... 714 Other comprehensive income (loss), net of income tax............. 225 ------------- Balance at December 31, 2012................... 5,271 Capital contribution.... 14 Net income (loss)....... 165 Other comprehensive income (loss), net of income tax............. (643) ------------- Balance at December 31, 2013................... $ 4,807 =============
-------- (1)Includes amounts related to prior period adjustments to Retained Earnings of ($25) million. See Note 1. See accompanying notes to the consolidated financial statements. 5 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, 2013, 2012 and 2011 (In millions)
2013 2012 2011 -------- -------- -------- Cash flows from operating activities Net income (loss).................................................................................. $ 165 $ 714 $ 487 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization expenses........................................................... 17 13 20 Amortization of premiums and accretion of discounts associated with investments, net............. (59) (49) (45) (Gains) losses on investments and derivatives, net............................................... 918 (1,222) (826) (Income) loss from equity method investments, net of dividends or distributions.................. (34) (24) (2) Interest credited to policyholder account balances............................................... 419 421 424 Universal life and investment-type product policy fees........................................... (1,691) (1,585) (1,288) Change in accrued investment income.............................................................. 7 (12) (14) Change in premiums, reinsurance and other receivables............................................ (1,230) (705) (608) Change in deferred policy acquisition costs, net................................................. (675) 41 (574) Change in income tax............................................................................. 105 328 160 Change in other assets........................................................................... 1,637 1,417 1,058 Change in insurance-related liabilities and policy-related balances.............................. 1,123 1,469 1,299 Change in other liabilities...................................................................... 887 398 363 -------- -------- -------- Net cash provided by (used in) operating activities................................................ 1,589 1,204 454 -------- -------- -------- Cash flows from investing activities Sales, maturities and repayments of: Fixed maturity securities....................................................................... 3,907 3,203 3,137 Equity securities............................................................................... 9 3 5 Mortgage loans.................................................................................. 115 60 56 Real estate and real estate joint ventures...................................................... 27 -- -- Other limited partnership interests............................................................. 50 68 93 Purchases of: Fixed maturity securities....................................................................... (4,569) (3,715) (4,274) Equity securities............................................................................... (82) (31) (5) Mortgage loans.................................................................................. (258) (229) (387) Real estate and real estate joint ventures...................................................... (69) (145) (1) Other limited partnership interests............................................................. (171) (162) (164) Cash received in connection with freestanding derivatives........................................ 29 57 22 Cash paid in connection with freestanding derivatives............................................ (76) (18) (25) Issuances of loans to affiliates................................................................. (125) -- (125) Net change in policy loans....................................................................... (21) (28) (38) Net change in short-term investments............................................................. 220 57 (666) Net change in other invested assets.............................................................. (13) 5 25 -------- -------- -------- Net cash provided by (used in) investing activities................................................ (1,027) (875) (2,347) -------- -------- -------- Cash flows from financing activities Policyholder account balances: Deposits........................................................................................ 1,616 2,621 4,984 Withdrawals..................................................................................... (1,914) (3,191) (3,647) Net change in payables for collateral under securities loaned and other transactions............. (276) 151 426 Long-term debt repaid............................................................................ (1) (1) (3) Financing element on certain derivative instruments.............................................. (9) 105 1 -------- -------- -------- Net cash provided by (used in) financing activities................................................ (584) (315) 1,761 -------- -------- -------- Change in cash and cash equivalents................................................................ (22) 14 (132) Cash and cash equivalents, beginning of year....................................................... 122 108 240 -------- -------- -------- Cash and cash equivalents, end of year $ 100 $ 122 $ 108 ======== ======== ======== Supplemental disclosures of cash flow information: Net cash paid (received) for: Interest........................................................................................ $ 3 $ 3 $ 2 ======== ======== ======== Income tax...................................................................................... $ (131) $ (34) $ 16 ======== ======== ======== Non-cash transactions: Real estate and real estate joint ventures acquired in satisfaction of debt...................... $ -- $ 2 $ -- ======== ======== ========
See accompanying notes to the consolidated financial statements. 6 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 subsidiaries, (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, universal and variable life and variable and fixed annuity products. In the second quarter of 2013, MetLife announced its plans to merge three U.S.-based life insurance companies and an offshore reinsurance subsidiary to create one larger U.S.-based and U.S.-regulated life insurance company (the "Mergers"). The companies to be merged consist of MICC, MLI-USA and MetLife Investors Insurance Company, each a U.S. insurance company that issues variable annuity products in addition to other products, and Exeter Reassurance Company, Ltd. ("Exeter"), a reinsurance company that mainly reinsures guarantees associated with variable annuity products. MICC, which is expected to be renamed and domiciled in Delaware, will be the surviving entity. Exeter, formerly a Cayman Islands company, was re-domesticated to Delaware in October 2013. The Mergers are expected to occur in the fourth quarter of 2014, subject to regulatory approvals. Basis of Presentation 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. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions 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 business and operations. Actual results could differ from estimates. Consolidation 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. 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. Separate Accounts Separate accounts are established in conformity with insurance laws and are generally not chargeable with liabilities that arise from any other business of the Company. Separate account assets are subject to general account claims only to the extent the value of such assets exceeds the separate account liabilities. The Company reports separately, as assets and liabilities, investments held in separate accounts and liabilities of the separate accounts if: . such separate accounts are legally recognized; . assets supporting the contract liabilities are legally insulated from the Company's general account liabilities; 7 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) . investments are directed by the contractholder; and . all investment performance, net of contract fees and assessments, is passed through to the contractholder. The Company reports separate account assets at their fair value, which is based on the estimated fair values of the underlying assets comprising the individual separate account portfolios. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to contractholders of such separate accounts are offset within the same line in the statements of 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. Such fees are included in universal life and investment-type product policy fees in the statements of operations. Reclassifications Certain amounts in the prior years' consolidated financial statements and related footnotes thereto have been reclassified to conform with the current year presentation as discussed throughout the Notes to the Consolidated Financial Statements. Adjustments to Prior Periods During the fourth quarter of 2013, the Company determined certain prior period results should be adjusted to correct the following: . Certain prior years' acquisition costs related to variable annuity sales were incorrectly allocated to an affiliate. Such costs, net of deferred policy acquisition costs ("DAC"), were $65 million, $78 million and $62 million for 2012, 2011 and 2010, respectively. . A DAC recoverability write-off of $111 million associated with term life and universal life secondary guarantees business sold in 2012 was not recorded as of December 31, 2012. . The fair value of a bifurcated embedded derivative associated with a reinsurance agreement was overstated by $23 million for 2011. . Policyholder benefits and claims and other expenses were overstated in 2012 by $6 million and $23 million, respectively, due to an adjustment in the modeling of dynamic lapses in certain variable annuity products. . Adjustments associated with data used in the modeling of certain variable annuity projected benefits in periods prior to 2012. Previously, net derivative gains (losses) was over (understated) by $82 million, ($47) million and ($35) million for the years ended December 31, 2012 and 2011 and periods prior to 2011, respectively, and DAC amortization was over (understated) by $28 million, ($15) million and ($13) million for the years ended December 31, 2012 and 2011 and periods prior to 2011, respectively. Management evaluated the materiality of these adjustments quantitatively and qualitatively and concluded that they were not material to any prior periods' annual financial statements; however, unadjusted amounts as of December 31, 2012 would have had a significant effect on the results of operations for 2013 if they were recorded in 2013. Accordingly, the Company has revised its previously reported financial statements for prior annual periods for the items listed above, including the related tax impacts, as detailed below. 8 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) The impact of the adjustments is shown in the tables below:
December 31, 2012 ------------------- As Previously As Consolidated Balance Sheets Reported Adjusted ----------------------------------------------- ---------- -------- (In millions) Assets Premiums, reinsurance and other receivables. $ 14,746 $ 14,492 Deferred policy acquisition costs........... $ 2,945 $ 2,906 Other assets................................ $ 721 $ 725 Total assets................................ $105,018 $104,729 Liabilities Future policy benefits...................... $ 4,404 $ 4,402 Deferred income tax liability............... $ 1,484 $ 1,383 Total liabilities........................... $ 99,561 $ 99,458 Stockholder's Equity Retained earnings........................... $ 2,018 $ 1,832 Total stockholder's equity.................. $ 5,457 $ 5,271 Total liabilities and stockholder's equity.. $105,018 $104,729
December 31, --------------------------------------- 2012 2011 ------------------- ------------------- As As Previously As Previously As Consolidated Statements of Operations Reported Adjusted Reported Adjusted ---------------------------------------------- ---------- -------- ---------- -------- (In millions) Revenues Net derivative gains (losses).............. $1,194 $1,135 $ 701 $ 725 Total revenues............................. $4,220 $4,161 $3,529 $3,553 Expenses Policyholder benefits and claims........... $ 808 $ 802 $ 779 N/A Other expenses............................. $1,803 $1,928 $1,595 $1,688 Total expenses............................. $3,032 $3,151 $2,798 $2,891 Income (loss) before provision for income tax. $1,188 $1,010 $ 731 $ 662 Provision for income tax expense (benefit).... $ 359 $ 296 $ 198 $ 175 Net income (loss)............................. $ 829 $ 714 $ 533 $ 487
December 31, --------------------------------------- 2012 2011 ------------------- ------------------- As As Previously As Previously As Consolidated Statements of Comprehensive Income (Loss) Reported Adjusted Reported Adjusted ------------------------------------------------------ ---------- -------- ---------- -------- (In millions) Net income (loss)......................... $ 829 $714 $ 533 $ 487 Comprehensive income (loss)............... $1,054 $939 $1,115 $1,069
9 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued)
As Previously As Consolidated Statements of Stockholder's Equity Reported Adjusted ----------------------------------------------- ---------- -------- (In millions) Retained Earnings Balance at December 31, 2010........... $ 656 $ 631 Net income (loss)..................... $ 533 $ 487 Balance at December 31, 2011........... $1,189 $1,118 Net income (loss)..................... $ 829 $ 714 Balance at December 31, 2012........... $2,018 $1,832 Total Stockholder's Equity Balance at December 31, 2010........... $3,288 $3,263 Balance at December 31, 2011........... $4,403 $4,332 Balance at December 31, 2012........... $5,457 $5,271
December 31, -------------------------------------- 2012 2011 ------------------ ------------------ As As Previously As Previously As Consolidated Statements of Cash Flows Reported Adjusted Reported Adjusted -------------------------------------------------------------- ---------- -------- ---------- -------- (In millions) Cash flows from operating activities Net income (loss)........................................... $ 829 $ 714 $ 533 $ 487 (Gains) losses on investments and derivatives, net.......... $(1,281) $(1,222) $ (802) $(826) Change in premiums, reinsurance and other receivables....... $ (756) $ (705) $ (710) $(608) Change in deferred policy acquisition costs, net............ $ (33) $ 41 $ (566) $(574) Change in income tax........................................ $ 391 $ 328 $ 184 $ 160 Change in other assets...................................... $ 1,421 $ 1,417 $1,058 N/A Change in insurance-related liabilities and policy-related balances.................................................. $ 1,471 $ 1,469 $1,299 N/A
Summary of Significant Accounting Policies The following are the Company's significant accounting policies with references to notes providing additional information on such policies and critical accounting estimates relating to such policies. ---------------------------------------------------------------------------- Accounting Policy Note ---------------------------------------------------------------------------- Insurance 2 ---------------------------------------------------------------------------- Deferred Policy Acquisition Costs and Other Policy-Related Intangibles 3 ---------------------------------------------------------------------------- Reinsurance 4 ---------------------------------------------------------------------------- Investments 5 ---------------------------------------------------------------------------- Derivatives 6 ---------------------------------------------------------------------------- Fair Value 7 ---------------------------------------------------------------------------- Income Tax 11 ---------------------------------------------------------------------------- Litigation Contingencies 12 ----------------------------------------------------------------------------
10 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Insurance Future Policy Benefit Liabilities and Policyholder Account Balances The Company establishes liabilities for amounts payable under insurance policies. 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, disability incidence, disability terminations, 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. For long duration insurance contracts, assumptions such as mortality and interest rates are "locked in" upon the issuance of new business. However, significant adverse changes in experience on such contracts may require the establishment of premium deficiency reserves. Such reserves are determined based on the then current assumptions and do not include a provision for adverse deviation. 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 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 as further discussed herein. The assumptions of investment performance and volatility for variable products are consistent with historical experience of appropriate underlying equity indices, such as the Standard & Poor's Ratings Services ("S&P") 500 Index. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. The Company regularly reviews its estimates of liabilities for future policy benefits and compares them with its actual experience. Differences result in changes to the liability balances with related charges or credits to benefit expenses in the period in which the changes occur. Policyholder account balances ("PABs") relate to contract or contract features where the Company has no significant insurance risk. The Company issues certain variable annuity products with guaranteed minimum benefits that provide the policyholder a minimum return based on their initial deposit (i.e., the benefit base) less withdrawals. These guarantees are accounted for as insurance liabilities or as embedded derivatives depending on how and when the benefit is paid. Specifically, a guarantee is accounted for as an embedded derivative if a guarantee is paid without requiring (i) the occurrence of specific insurable event, or (ii) the policyholder to annuitize. Alternatively, a guarantee is accounted for as an insurance liability if the guarantee is paid only upon either (i) the occurrence of a specific insurable event, or (ii) annuitization. In certain cases, a guarantee may have elements of both an insurance liability and an embedded derivative and in such cases the guarantee is split and accounted for under both models. Guarantees accounted for as insurance liabilities in future policy benefits include guaranteed minimum death benefits ("GMDBs"), the portion of guaranteed minimum income benefits ("GMIBs") that require annuitization, and the life-contingent portion of guaranteed minimum withdrawal benefits ("GMWBs"). 11 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Guarantees accounted for as embedded derivatives in PABs include the non life-contingent portion of GMWBs, guaranteed minimum accumulation benefits ("GMABs") and the portion of GMIBs that do not require annuitization. At inception, 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. Other Policy-Related Balances Other policy-related balances include policy and contract claims, unearned revenue liabilities and premiums received in advance. 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 analyses of historical patterns of claims by business line. 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 as discussed further herein. Such amortization is recorded in universal life and investment-type product policy fees. The Company accounts for the prepayment of premiums on its individual life contracts as premiums received in advance and applies the cash received to premiums when due. Recognition of Insurance Revenues and Deposits 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 to recognize profits over the estimated lives of the insurance policies. When premiums are due over a significantly shorter period than the period over which benefits are provided, any excess profit is deferred and recognized into earnings 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 PABs. Revenues from such contracts consist of fees 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 earnings include interest credited and benefit claims incurred in excess of related PABs. Premiums, policy fees, policyholder benefits and expenses are presented net of reinsurance. 12 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Deferred Policy Acquisition Costs and Other Policy-Related Intangibles The Company incurs significant costs in connection with acquiring new and renewal insurance business. Costs that are related directly to the successful acquisition or renewal of insurance contracts are capitalized as DAC. Such costs include: . incremental direct costs of contract acquisition, such as commissions; . the portion of an employee's total compensation and benefits related to time spent selling, underwriting or processing the issuance of new and renewal insurance business only with respect to actual policies acquired or renewed; . other essential direct costs that would not have been incurred had a policy not been acquired or renewed; and . in limited circumstances, the costs of direct-response advertising, the primary purpose of which is to elicit sales to customers who could be shown to have responded specifically to the advertising and that results in probable future benefits. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. DAC is amortized as follows: ----------------------------------------------------------------------------- Products: In proportion to the following over estimated lives of the contracts: ----------------------------------------------------------------------------- . Nonparticipating and Historic actual and expected future non-dividend-paying traditional gross premiums. contracts (primarily term insurance) ----------------------------------------------------------------------------- . Participating, dividend-paying Actual and expected future gross traditional contracts margins. ----------------------------------------------------------------------------- . Fixed and variable universal life Actual and expected future gross contracts profits. . Fixed and variable deferred annuity contracts ----------------------------------------------------------------------------- See Note 3 for additional information on DAC amortization. The recovery of DAC is dependent upon the future profitability of the related business. 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 potential recoverability issue exists, the Company reviews deferred sales inducements to determine the recoverability of the asset. 13 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Value of distribution agreements acquired ("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 business combinations 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 possible impairment exists, the Company reviews VODA to determine whether the asset is impaired. Reinsurance 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. Cessions under reinsurance agreements do not discharge the Company's obligations as the primary insurer. The Company reviews all contractual features, including 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 when there is a gain at inception on the ceding entity and to other liabilities when there is a loss at inception. The net cost of reinsurance is recognized as a component of other expenses when there is a gain at inception and as policyholder benefits and claims when there is a loss and is subsequently amortized on a basis consistent with the methodology used for amortizing DAC related to the underlying reinsured contracts. 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) premiums, reinsurance and other receivables (future policy benefits) are established. Amounts currently recoverable under reinsurance agreements are included in premiums, reinsurance and other receivables and amounts currently payable are included in other liabilities. 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 recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance. The funds withheld liability represents amounts withheld by the Company in accordance with the terms of the reinsurance agreements. The Company withholds the funds rather than transferring the underlying investments and, as a result, records funds withheld liability within other liabilities. The Company recognizes interest on funds withheld, included in other expenses, at rates defined by the terms of the agreement which may be contractually specified or directly related to the investment portfolio. 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. With respect to GMIBs, a portion of the directly written GMIBs are accounted for as insurance liabilities, but the associated reinsurance agreements contain embedded derivatives. These embedded derivatives are included in premiums, reinsurance and other receivables with changes in estimated fair value reported in net derivative gains (losses). 14 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) 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. Investments Net Investment Income Income on investments is reported within net investment income, unless otherwise stated herein. Fixed Maturity and Equity Securities The Company's fixed maturity and equity securities are classified as available-for-sale ("AFS") 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) ("OCI"), 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 are determined on a specific identification basis. Interest income on fixed maturity securities is recognized when earned using an effective yield method giving effect to amortization of premiums and accretion of discounts. Prepayment fees are recognized when earned. Dividends on equity securities are recognized when declared. 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, as well as an analysis of the gross unrealized losses by severity and/or age as described in Note 5 "-- Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities." For fixed maturity securities in an unrealized loss position, an other-than-temporary impairment ("OTTI") is recognized in earnings when it is anticipated that the amortized cost will not be recovered. When either: (i) the Company has the intent to sell the security; or (ii) it is more likely than not that the Company will be required to sell the security before recovery, the OTTI recognized in earnings is the entire difference between the security's amortized cost and estimated fair value. If neither of these conditions exist, the difference between the amortized cost of the 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 OCI. 15 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) 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 recovery to an amount at least equal to cost prior to the sale is not expected, the security will be deemed to be other-than-temporarily impaired in the period that the sale decision was made and an OTTI loss will be recorded in earnings. The OTTI loss recognized is the entire difference between the security's cost and its estimated fair value. Mortgage Loans The Company disaggregates its mortgage loan investments into two portfolio segments: commercial and agricultural. The accounting policies that are applicable to all portfolio segments are presented below and the accounting policies related to each of the portfolio segments are included in Note 5. Mortgage loans are stated at unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to amortization of premiums and accretion of discounts. Policy Loans Policy loans are stated at unpaid principal balances. Interest income on such loans is recorded as earned using the contractual interest rate. Generally, accrued interest is capitalized on the policy's anniversary date. Valuation allowances are not established for policy loans, as they 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 insurance policy. Real Estate Real estate held-for-investment is stated at cost less accumulated depreciation. Depreciation is provided on a straight-line basis over the estimated useful life of the asset (typically 20 to 55 years). Rental income associated with such real estate is recognized on a straight-line basis over the term of the respective leases. The Company periodically reviews its real estate held-for-investment for impairment and tests for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable and exceeds its estimated fair value. Properties whose carrying values are greater than their undiscounted cash flows are written down to their estimated fair value, which is generally computed using the present value of expected future cash flows discounted at a rate commensurate with the underlying risks. Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition for a reasonable price in comparison to its estimated fair value is classified as held for sale. Real estate held-for-sale is stated at the lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated. 16 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Real Estate Joint Ventures and Other Limited Partnership Interests The Company uses the equity method of accounting for investments in equity securities when it has significant influence or at least 20% interest and for investments in real estate joint ventures and other limited partnership interests ("investees") when it has more than a minor ownership interest or more than a minor influence over the investee's operations, but does not have a controlling financial interest. The Company generally recognizes its share of the investee's earnings on a three-month lag in instances where the investee's financial information is not sufficiently timely or when the investee's reporting period differs from the Company's reporting period. The Company uses the cost method of accounting for investments in which it has virtually no influence over the investee's operations. The Company recognizes distributions on cost method investments as earned or received. Because of the nature and structure of these cost method investments, they do not meet the characteristics of an equity security in accordance with applicable accounting standards. The Company routinely evaluates its equity method and cost method investments for impairment. 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. The Company considers its cost method investments for impairment when the carrying value of such investments exceeds the net asset value ("NAV"). The Company takes into consideration the severity and duration of this excess when determining whether the cost method investment is impaired. Short-term Investments Short-term investments include securities and other investments with remaining maturities of one year or less, but greater than three months, at the time of purchase and are stated at estimated fair value or amortized cost, which approximates estimated fair value. Short-term investments also include investments in affiliated money market pools. Other Invested Assets Other invested assets consist of the following: . Loans to affiliates are stated at unpaid principal balance, adjusted for any unamortized premium or discount. . Freestanding derivatives with positive estimated fair values are described in "-- Derivatives" below. . Tax credit and renewable energy partnerships derive their primary source of investment return in the form of income tax credits or other tax incentives. Where tax credits are guaranteed by a creditworthy third party, the investment is accounted for under the effective yield method. Otherwise, the investment is accounted for under the equity method. . Leveraged leases are recorded net of non-recourse debt. Income on leveraged leases is recognized by applying the leveraged lease's estimated rate of return to the net investment in the lease. The Company regularly reviews residual values for impairment. 17 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Securities Lending Program Securities lending transactions, whereby blocks of securities are loaned to third parties, primarily brokerage firms and commercial banks, are treated as financing arrangements and the associated liability is recorded at the amount of cash received. The Company obtains collateral at the inception of the loan, usually cash, in an amount generally 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 is liable to return to the counterparties the cash collateral received. Security collateral on deposit from counterparties in connection with the securities lending transactions may not be sold or repledged, unless the counterparty is in default, and is not reflected in the financial statements. The Company monitors the estimated fair value of the securities loaned on a daily basis and additional collateral is obtained as necessary. Income and expenses associated with securities lending transactions are reported as investment income and investment expense, respectively, within net investment income. Derivatives Freestanding Derivatives Freestanding derivatives are carried in the Company's balance sheets either as assets within other invested assets or as liabilities within other liabilities at estimated fair value. The Company does not offset the fair value amounts recognized for derivatives executed with the same counterparty under the same master netting agreement. Accruals on derivatives are generally recorded in accrued investment income or within other liabilities. However, accruals that are not scheduled to settle within one year are included with the derivatives carrying value in other invested assets or other liabilities. 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 reported in net derivative gains (losses) except as follows: ------------------------------------------------------------------------------- Statement of Operations Presentation: Derivative: ------------------------------------------------------------------------------- Net investment income . Economic hedges of equity method investments in joint ventures ------------------------------------------------------------------------------- Hedge Accounting 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. Hedge designation and financial statement presentation of changes in estimated fair value of the hedging derivatives are as follows: . Fair value hedge (a hedge of the estimated fair value of a recognized asset or liability) - in net derivative gains (losses), consistent with the change in fair value of the hedged item attributable to the designated risk being hedged. 18 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) . Cash flow hedge (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) - effectiveness in OCI (deferred gains or losses on the derivative are reclassified into the statement of operations when the Company's earnings are affected by the variability in cash flows of the hedged item); ineffectiveness in net derivative gains (losses). The changes in estimated fair values of the hedging derivatives are exclusive of any accruals that are separately reported in the statement of operations within interest income or interest expense to match the location of the hedged item. In its hedge 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 that 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 at least quarterly 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 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. 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 balance sheets at its estimated fair value, with changes in estimated fair value recognized 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 OCI related to discontinued cash flow hedges are released into the 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 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 OCI 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 balance sheets, with changes in its estimated fair value recognized in the current period as net derivative gains (losses). 19 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Embedded Derivatives The Company sells variable annuities and issues certain insurance products and investment contracts and is a party to certain reinsurance agreements that have embedded derivatives. The Company assesses each identified embedded derivative to determine whether it is required to be bifurcated. The embedded derivative is bifurcated from the host contract and accounted for as a freestanding derivative if: . the combined instrument is not accounted for in its entirety at fair value with changes in fair value recorded in earnings; . the terms of the embedded derivative are not clearly and closely related to the economic characteristics of the host contract; and . a separate instrument with the same terms as the embedded derivative would qualify as a derivative instrument. Such embedded derivatives are carried in the 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. At inception, 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. Fair Value Fair value is defined 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 most cases, the exit price and the transaction (or entry) price will be the same at initial recognition. Subsequent to initial recognition, fair values are based on unadjusted quoted prices for identical assets or liabilities in active markets that are readily and regularly obtainable. When such quoted prices are not available, fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical assets or liabilities, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value of assets and liabilities. Employee Benefit Plans Pension, postretirement and postemployment benefits are provided to associates under plans sponsored and administered by MLIC, an affiliate of the Company. The Company's obligation and expense related to these benefits is limited to the amount of associated expense allocated from MLIC. 20 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Income Tax MetLife Investors USA Insurance Company joined with MetLife and its includable subsidiaries in filing a consolidated U.S. life and non-life federal income tax return in accordance with the provisions of the Internal Revenue Code of 1986, as amended. Current taxes (and the benefits of tax attributes such as losses) are allocated to the Company under the consolidated tax return regulations and a tax sharing agreement. Under the consolidated tax return regulations, MetLife has elected the "percentage method" (and 100 percent under such method) of reimbursing companies for tax attributes such as losses. As a result, 100 percent of tax attributes such as losses are reimbursed by MetLife to the extent that consolidated federal income tax of the consolidated federal tax return group is reduced in a year by tax attributes such as losses. Profitable subsidiaries pay to MetLife each year the federal income tax which such profitable subsidiary would have paid that year based upon that year's taxable income. If the Company has current or prior deductions and credits (including but not limited to losses) which reduce the consolidated tax liability of the consolidated federal tax return group, the deductions and credits are characterized as realized (or realizable) by the Company when those tax attributes are realized (or realizable) by the consolidated federal tax return group, even if the Company would not have realized the attributes on a stand-alone basis under a "wait and see" method. 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. Factors in management's determination include the performance of the business and its ability to generate capital gains. 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: . future taxable income exclusive of reversing temporary differences and carryforwards; . future reversals of existing taxable temporary differences; . taxable income in prior carryback years; and . tax planning strategies. The Company may be required to change its provision for income taxes in certain circumstances. Examples of such circumstances include when estimates used in determining valuation allowances on deferred tax assets significantly change or when receipt of new information indicates the need for adjustment in valuation allowances. Additionally, future events, such as changes in tax laws, tax regulations, or interpretations of such laws or regulations, could have an impact on the provision for income tax and the effective tax rate. Any such changes could significantly affect the amounts reported in the financial statements in the year these changes occur. 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% likely of being 21 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) 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. Litigation Contingencies The Company is a party to a number of legal actions and is involved in a number of regulatory investigations. Given the inherent unpredictability of these matters, it is difficult to estimate the impact on the Company's financial position. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Legal costs are recognized as incurred. On an annual basis, the Company reviews relevant information with respect to liabilities for litigation, regulatory investigations and litigation-related contingencies to be reflected in the Company's financial statements. Other Accounting Policies Cash and Cash Equivalents The Company considers all highly liquid securities and other 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 $122 million and $109 million at December 31, 2013 and 2012, respectively. Accumulated amortization of capitalized software was $35 million and $32 million at December 31, 2013 and 2012, respectively. Related amortization expense was $3 million, $2 million and $12 million for the years ended December 31, 2013, 2012 and 2011, respectively. 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. Foreign Currency The results of foreign investments in other limited partnership interests are recorded based on the functional currency of each investment. Net assets of the foreign investments are translated from the functional currency to U.S. dollars at the exchange rates in effect at each year-end and the proportionate shares of net income from the foreign investments are translated at the average exchange rates during the year. The resulting translation adjustments are charged or credited directly to OCI, 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. 22 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) Adoption of New Accounting Pronouncements Effective July 17, 2013, the Company adopted new guidance regarding derivatives that permits the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the United States Treasury and London Interbank Offered Rate ("LIBOR"). Also, this new guidance removes the restriction on using different benchmark rates for similar hedges. The new guidance did not have a material impact on the financial statements upon adoption, but may impact the selection of benchmark interest rates for hedging relationships in the future. Effective January 1, 2013, the Company adopted new guidance regarding comprehensive income that requires an entity to provide information about the amounts reclassified out of accumulated OCI ("AOCI") by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. The adoption was prospectively applied and resulted in additional disclosures in Note 9. Effective January 1, 2013, the Company adopted new guidance regarding balance sheet offsetting disclosures which requires an entity to disclose information about offsetting and related arrangements for derivatives, including bifurcated embedded derivatives, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions, to enable users of its financial statements to understand the effects of those arrangements on its financial position. Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. The adoption was retrospectively applied and resulted in additional disclosures related to derivatives in Note 6. On January 1, 2012, the Company adopted new guidance regarding accounting for DAC, which was retrospectively applied. The guidance specifies that only costs related directly to successful acquisition of new or renewal contracts can be capitalized as DAC; all other acquisition-related costs must be expensed as incurred. As a result, certain sales manager compensation and administrative costs previously capitalized by the Company will no longer be deferred. On January 1, 2012, the Company adopted new guidance regarding comprehensive income, which was retrospectively applied, that provides companies with the option to present the total of comprehensive income, components of net income, and the components of OCI either in a single continuous statement of comprehensive income or in two separate but consecutive statements in annual financial statements. The standard eliminates the option to present components of OCI as part of the statement of changes in stockholder's equity. The Company adopted the two-statement approach for annual financial statements. Effective January 1, 2012, the Company adopted new guidance regarding fair value measurements that establishes common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with GAAP and International Financial Reporting Standards. Some of the amendments clarify the Financial Accounting Standards Board's ("FASB") intent on the application of existing 23 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 1. Business, Basis of Presentation and Summary of Significant Accounting Policies (continued) fair value measurement requirements. Other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The adoption did not have a material impact on the Company's financial statements other than the expanded disclosures in Note 7. Future Adoption of New Accounting Pronouncements In February 2013, the FASB issued new guidance regarding liabilities (Accounting Standards Update 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date), effective retrospectively for fiscal years beginning after December 15, 2013 and interim periods within those years. The amendments require an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. In addition, the amendments require an entity to disclose the nature and amount of the obligation, as well as other information about the obligation. The Company does not expect the adoption of this new guidance to have a material impact on its financial statements. 2. Insurance Insurance Liabilities Future policy benefits are measured as follows: Product Type: Measurement Assumptions: ------------------------------------------------------------------------- Participating life Aggregate of net level premium reserves for death and endowment policy benefits (calculated based upon the non-forfeiture interest rate of 4%, and mortality rates guaranteed in calculating the cash surrender values described in such contracts). ------------------------------------------------------------------------- Nonparticipating life 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 for the aggregate future policy benefit liabilities range from 3% to 7%. ------------------------------------------------------------------------- Traditional fixed annuities after Present value of expected future annuitization payments. Interest rate assumptions used in establishing such liabilities range from 4% to 8%. Participating business represented 3% and 2% of the Company's life insurance in-force at December 31, 2013 and 2012, respectively. Participating policies represented 35%, 27% and 12% of gross life insurance premiums for the years ended December 31, 2013, 2012 and 2011, respectively. PABs are equal to: (i) policy account values, which consist of an accumulation of gross premium payments; and (ii) credited interest, ranging from 1% to 8%, less expenses, mortality charges and withdrawals. 24 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 2. Insurance (continued) Guarantees The Company issues variable annuity products with guaranteed minimum benefits. The non-life contingent portion of GMWBs and the portion of certain GMIBs that does not require annuitization are accounted for as embedded derivatives in PABs and are further discussed in Note 6. Guarantees accounted for as insurance liabilities include: Guarantee: Measurement Assumptions: ------------------------------------------------------------------------------ GMDBs . A return of purchase . Present value of expected death payment upon death even if benefits in excess of the projected the account value is account balance recognizing the reduced to zero. excess ratably over the accumulation period based on the present value of total expected assessments. . An enhanced death benefit . Assumptions are consistent with may be available for an those used for amortizing DAC, and additional fee. are thus subject to the same variability and risk. . Investment performance and volatility assumptions are consistent with the historical experience of the appropriate underlying equity index, such as the S&P 500 Index. . Benefit assumptions are based on the average benefits payable over a range of scenarios. ------------------------------------------------------------------------------ GMIBs . After a specified period . Present value of expected income of time determined at the benefits in excess of the projected time of issuance of the account balance at any future date variable annuity contract, of annuitization and recognizing the a minimum accumulation of excess ratably over the accumulation purchase payments, even if period based on present value of the account value is total expected assessments. reduced to zero, that can be annuitized to receive a monthly income stream that is not less than a specified amount. . Certain contracts also . Assumptions are consistent with provide for a guaranteed those used for estimating GMDB lump sum return of liabilities. purchase premium in lieu of the annuitization benefit. . Calculation incorporates an assumption for the percentage of the potential annuitizations that may be elected by the contractholder. ------------------------------------------------------------------------------ GMWBs . A return of purchase . Expected value of the life payment via partial contingent payments and expected withdrawals, even if the assessments using assumptions account value is reduced consistent with those used for to zero, provided that estimating the GMDB liabilities. cumulative withdrawals in a contract year do not exceed a certain limit. . Certain contracts include guaranteed withdrawals that are life contingent. 25 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 2. Insurance (continued) Information regarding the liabilities for guarantees (excluding base policy liabilities and embedded derivatives) relating to annuity and universal and variable life contracts was as follows:
Universal and Variable Annuity Contracts Life Contracts ----------------- ---------------------- Secondary GMDBs GMIBs Guarantees Total ------- ------- ---------------------- ------- (In millions) Direct Balance at January 1, 2011... $ 73 $281 $ 470 $ 824 Incurred guaranteed benefits. 77 128 139 344 Paid guaranteed benefits..... (18) -- -- (18) ------- ------- ---------------------- ------- Balance at December 31, 2011. 132 409 609 1,150 Incurred guaranteed benefits. 102 402 269 773 Paid guaranteed benefits..... (21) -- -- (21) ------- ------- ---------------------- ------- Balance at December 31, 2012. 213 811 878 1,902 Incurred guaranteed benefits. 144 127 312 583 Paid guaranteed benefits..... (13) -- -- (13) ------- ------- ---------------------- ------- Balance at December 31, 2013. $ 344 $938 $1,190 $2,472 ======= ======= ====================== ======= Ceded Balance at January 1, 2011... $ 73 $ 97 $ 334 $ 504 Incurred guaranteed benefits. 77 44 123 244 Paid guaranteed benefits..... (18) -- -- (18) ------- ------- ---------------------- ------- Balance at December 31, 2011. 132 141 457 730 Incurred guaranteed benefits. 102 140 224 466 Paid guaranteed benefits..... (21) -- -- (21) ------- ------- ---------------------- ------- Balance at December 31, 2012. 213 281 681 1,175 Incurred guaranteed benefits. 144 44 260 448 Paid guaranteed benefits..... (13) -- -- (13) ------- ------- ---------------------- ------- Balance at December 31, 2013. $ 344 $325 $ 941 $1,610 ======= ======= ====================== ======= Net Balance at January 1, 2011... $ -- $184 $ 136 $ 320 Incurred guaranteed benefits. -- 84 16 100 Paid guaranteed benefits..... -- -- -- -- ------- ------- ---------------------- ------- Balance at December 31, 2011. -- 268 152 420 Incurred guaranteed benefits. -- 262 45 307 Paid guaranteed benefits..... -- -- -- -- ------- ------- ---------------------- ------- Balance at December 31, 2012. -- 530 197 727 Incurred guaranteed benefits. -- 83 52 135 Paid guaranteed benefits..... -- -- -- -- ------- ------- ---------------------- ------- Balance at December 31, 2013. $ -- $613 $ 249 $ 862 ======= ======= ====================== =======
26 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 2. Insurance (continued) Account balances of contracts with insurance guarantees were invested in separate account asset classes as follows at:
December 31, ------------------- 2013 2012 --------- --------- (In millions) Fund Groupings: Balanced........ $ 39,626 $ 35,569 Equity.......... 36,676 29,557 Bond............ 3,407 3,749 Money Market.... 448 527 --------- --------- Total.......... $ 80,157 $ 69,402 ========= =========
Based on the type of guarantee, the Company defines net amount at risk ("NAR") as listed below. Variable Annuity Guarantees In the Event of Death Defined as the death benefit less the total contract account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date and includes any additional contractual claims associated with riders purchased to assist with covering income taxes payable upon death. At Annuitization Defined as the amount (if any) that would be required to be added to the total contract account value to purchase a lifetime income stream, based on current annuity rates, equal to the minimum amount provided under the guaranteed benefit. This amount represents the Company's potential economic exposure to such guarantees in the event all contractholders were to annuitize on the balance sheet date, even though the contracts contain terms that allow annuitization of the guaranteed amount only after the 10th anniversary of the contract, which not all contractholders have achieved. Universal and Variable Life Contracts Defined as the guarantee amount less the account value, as of the balance sheet date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts on the balance sheet date. The amounts in the table below include direct business, but exclude offsets from hedging or reinsurance, if any. See Note 4 for a discussion of certain living and death benefit guarantees which have been reinsured. Therefore, the NARs presented below reflect the economic exposures of living and death benefit guarantees associated with variable annuities, but not necessarily their impact on the Company. 27 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 2. Insurance (continued) Information regarding the types of guarantees relating to annuity contracts and universal and variable life contracts was as follows at:
December 31, --------------------------------------------------------- 2013 2012 ---------------------------- ---------------------------- In the At In the At Event of Death Annuitization Event of Death Annuitization -------------- ------------- -------------- ------------- (In millions) Annuity Contracts (1) Variable Annuity Guarantees Total contract account value............ $ 84,964 $ 57,041 $ 74,156 $ 51,411 Separate account value.................. $ 82,428 $ 55,805 $ 71,446 $ 49,778 Net amount at risk...................... $ 1,324 $ 562 $ 1,976 $ 2,316 Average attained age of contractholders. 65 years 64 years 64 years 63 years
December 31, ----------------------- 2013 2012 ----------- ----------- Secondary Guarantees ----------------------- (In millions) Universal and Variable Life Contracts (1) Account value (general and separate account). $ 4,207 $ 3,659 Net amount at risk........................... $ 71,699 $ 65,938 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. Obligations Under Funding Agreements MLI-USA is a member of the Federal Home Loan Bank ("FHLB") of Pittsburgh. Holdings of the FHLB of Pittsburgh common stock, included in equity securities, were as follows at:
December 31, ------------ 2013 2012 ---- ---- (In millions) FHLB of Pittsburgh. $20 $11
The Company has also entered into funding agreements with the FHLB of Pittsburgh. The liability for such funding agreements is included in PABs. Information related to such funding agreements was as follows at:
Liability Collateral ----------------- ----------------- December 31, ----------------------------------- 2013 2012 2013 2012 -------- -------- -------- -------- (In millions) FHLB of Pittsburgh (1). $200 $-- $602 (2) $595 (2)
-------- (1)Represents funding agreements issued to the FHLB of Pittsburgh in exchange for cash and for which the FHLB of Pittsburgh has been granted a lien on certain assets, some of which are in the custody of the FHLB 28 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 2. Insurance (continued) of Pittsburgh, including residential mortgage-backed securities ("RMBS"), to collateralize obligations under advances evidenced by funding agreements. The Company is permitted to withdraw any portion of the collateral in the custody of the FHLB of Pittsburgh as long as there is no event of default and the remaining qualified collateral is sufficient to satisfy the collateral maintenance level. Upon any event of default by the Company, the FHLB of Pittsburgh's recovery on the collateral is limited to the amount of the Company's liability to the FHLB of Pittsburgh. (2)Advances are collateralized by mortgage-backed securities. The amount of collateral presented is at estimated fair value. Separate Accounts Separate account assets and liabilities primarily include pass-through separate accounts totaling $81.6 billion and $70.7 billion at December 31, 2013 and 2012, respectively, for which the policyholder assumes all investment risk. For the years ended December 31, 2013, 2012 and 2011, there were no investment gains (losses) on transfers of assets from the general account to the separate accounts. 3. Deferred Policy Acquisition Costs and Other Policy-Related Intangibles See Note 1 for a description of capitalized acquisition costs. Nonparticipating and Non-Dividend-Paying Traditional Contracts The Company amortizes DAC related to these contracts (primarily term insurance) over the appropriate premium paying period in proportion to the historic actual and expected future gross premiums that were set at contract issue. The expected premiums are based upon the premium requirement of each policy and assumptions for mortality, persistency and investment returns at policy issuance, or policy acquisition, 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 or acquisition unless the DAC balance is deemed to be unrecoverable from future expected profits. Absent a premium deficiency, variability in amortization after policy issuance or acquisition is caused only by variability in premium volumes. Participating, Dividend-Paying Traditional Contracts The Company amortizes DAC related to these contracts over the estimated lives of the contracts in proportion to actual and expected future gross margins. The amortization includes interest based on rates in effect at inception or acquisition of the contracts. The future gross margins are dependent principally on investment returns, policyholder dividend scales, mortality, persistency, expenses to administer the business, creditworthiness of reinsurance counterparties and certain economic variables, such as inflation. Of these factors, the Company anticipates that investment returns, expenses, persistency and other factor changes, as well as policyholder dividend scales are reasonably likely to impact significantly the rate of DAC amortization. Each reporting period, the Company updates the estimated gross margins with the actual gross margins for that period. When the actual gross margins change from previously estimated gross margins, the cumulative DAC amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. When actual 29 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 3. Deferred Policy Acquisition Costs and Other Policy-Related Intangibles (continued) gross margins 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 margins are below the previously estimated gross margins. Each reporting period, the Company also updates the actual amount of business in-force, which impacts expected future gross margins. When expected future gross margins 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 margins are above the previously estimated expected future gross margins. Each period, the Company also reviews the estimated gross margins for each block of business to determine the recoverability of DAC balances. Fixed and Variable Universal Life Contracts and Fixed and Variable Deferred Annuity Contracts The Company amortizes DAC related to these 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 or acquisition 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. Factors Impacting Amortization 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. 30 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 3. Deferred Policy Acquisition Costs and Other Policy-Related Intangibles (continued) The Company also periodically reviews other long-term assumptions underlying the projections of estimated gross margins and profits. These assumptions primarily relate to investment returns, policyholder dividend scales, interest crediting rates, mortality, persistency and expenses to administer business. Management annually updates assumptions used in the calculation of estimated gross margins and profits which may have significantly changed. If the update of assumptions causes expected future gross margins and 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 margins and 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. Amortization of DAC is attributed to net investment gains (losses) and net derivative gains (losses), and to other expenses for the amount of gross margins or 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. Information regarding DAC was as follows:
Years Ended December 31, -------------------------- 2013 2012 2011 -------- -------- -------- (In millions) DAC Balance at January 1,............................................ $ 2,906 $ 2,918 $ 2,346 Capitalizations.................................................. 476 821 1,274 Amortization related to: Net investment gains (losses) and net derivative gains (losses). 461 (366) (290) Other expenses.................................................. (391) (472) (411) -------- -------- -------- Total amortization............................................ 70 (838) (701) -------- -------- -------- Unrealized investment gains (losses)............................. 34 5 (1) Other (1)........................................................ 138 -- -- -------- -------- -------- Balance at December 31,.......................................... $ 3,624 $ 2,906 $ 2,918 ======== ======== ========
-------- (1)The year ended December 31, 2013 includes $138 million that was reclassified to DAC from premiums, reinsurance and other receivables. The amounts reclassified relate to an affiliated reinsurance agreement accounted for using the deposit method of accounting and represent the DAC amortization on the expense allowances ceded on the agreement from inception. These amounts were previously included in the calculated value of the deposit receivable on this agreement and recorded within premiums, reinsurance and other receivables. 31 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 3. Deferred Policy Acquisition Costs and Other Policy-Related Intangibles (continued) Information regarding other policy-related intangibles was as follows:
Years Ended December 31, ------------------------ 2013 2012 2011 ------ ------ ------ (In millions) Deferred Sales Inducements Balance at January 1,...... $ 478 $ 503 $ 497 Capitalization............. 5 20 79 Amortization............... (34) (45) (73) ------ ------ ------ Balance at December 31,.... $ 449 $ 478 $ 503 ====== ====== ====== VODA Balance at January 1,...... $ 130 $ 140 $ 148 Amortization............... (11) (10) (8) ------ ------ ------ Balance at December 31,.... $ 119 $ 130 $ 140 ====== ====== ====== Accumulated amortization... $ 48 $ 37 $ 27 ====== ====== ======
The estimated future amortization expense to be reported in other expenses for the next five years is as follows:
VODA ------------- (In millions) 2014. $ 12 2015. $ 12 2016. $ 12 2017. $ 11 2018. $ 9
4. Reinsurance The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its various insurance products and also as a provider of reinsurance for some insurance products issued by an affiliate. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth. 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 in Note 5. The Company currently reinsures 100% of the living and death benefit guarantees issued in connection with its variable annuities to affiliated reinsurers. 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 fixed annuities to an affiliated reinsurer. The value of the embedded 32 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 4. Reinsurance (continued) derivatives on the ceded risk is determined using a methodology consistent with the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. For its individual life insurance products, the Company has historically reinsured the mortality risk primarily on an excess of retention basis or on a quota share basis. The Company currently reinsures 100% of the mortality risk in excess of $100,000 per life for most new policies and reinsures up to 100% of the mortality risk for certain other policies. 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 specified characteristics. The Company also reinsures the risk associated with secondary death benefit guarantees on certain universal life insurance policies to affiliates. The Company evaluates its reinsurance programs routinely and may increase or decrease its retention at any time. 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 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, 2013 and 2012, were not significant. The Company has secured certain reinsurance recoverable balances with various forms of collateral, including secured trusts and funds withheld accounts. The Company had $475 million and $386 million of unsecured unaffiliated reinsurance recoverable balances at December 31, 2013 and 2012, respectively. At December 31, 2013, the Company had $635 million of net unaffiliated ceded reinsurance recoverables. Of this total, $559 million, or 88%, were with the Company's five largest unaffiliated ceded reinsurers, including $399 million of net unaffiliated ceded reinsurance recoverables which were unsecured. At December 31, 2012, the Company had $541 million of net unaffiliated ceded reinsurance recoverables. Of this total, $478 million, or 88%, were with the Company's five largest unaffiliated ceded reinsurers, including $323 million of net unaffiliated ceded reinsurance recoverables which were unsecured. 33 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 4. Reinsurance (continued) The amounts in the consolidated statements of operations include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows:
Years Ended December 31, -------------------------- 2013 2012 2011 -------- -------- -------- (In millions) Premiums Direct premiums............................................... $ 1,019 $ 941 $ 961 Reinsurance assumed........................................... 10 11 7 Reinsurance ceded............................................. (696) (524) (321) -------- -------- -------- Net premiums................................................. $ 333 $ 428 $ 647 ======== ======== ======== Universal life and investment-type product policy fees Direct universal life and investment-type product policy fees. $ 2,475 $ 2,167 $ 1,694 Reinsurance assumed........................................... 79 83 90 Reinsurance ceded............................................. (863) (665) (496) -------- -------- -------- Net universal life and investment-type product policy fees... $ 1,691 $ 1,585 $ 1,288 ======== ======== ======== Other revenues Direct other revenues......................................... $ 170 $ 137 $ 99 Reinsurance assumed........................................... -- -- -- Reinsurance ceded............................................. 252 190 215 -------- -------- -------- Net other revenues........................................... $ 422 $ 327 $ 314 ======== ======== ======== Policyholder benefits and claims Direct policyholder benefits and claims....................... $ 1,650 $ 1,799 $ 1,363 Reinsurance assumed........................................... 10 19 15 Reinsurance ceded............................................. (1,089) (1,016) (599) -------- -------- -------- Net policyholder benefits and claims......................... $ 571 $ 802 $ 779 ======== ======== ======== Interest credited to policyholder account balances Direct interest credited to policyholder account balances..... $ 465 $ 454 $ 436 Reinsurance assumed........................................... 73 71 68 Reinsurance ceded............................................. (119) (104) (80) -------- -------- -------- Net interest credited to policyholder account balances....... $ 419 $ 421 $ 424 ======== ======== ======== Other expenses Direct other expenses......................................... $ 974 $ 1,796 $ 1,495 Reinsurance assumed........................................... 28 33 48 Reinsurance ceded............................................. 37 99 145 -------- -------- -------- Net other expenses........................................... $ 1,039 $ 1,928 $ 1,688 ======== ======== ========
34 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 4. Reinsurance (continued) The amounts in the consolidated balance sheets include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at:
December 31, ----------------------------------------------------------------------- 2013 2012 ----------------------------------- ----------------------------------- Total Total Balance Balance Direct Assumed Ceded Sheet Direct Assumed Ceded Sheet -------- -------- -------- -------- -------- -------- -------- -------- (In millions) Assets Premiums, reinsurance and other receivables.................... $ (12) $ 27 $ 12,453 $ 12,468 $ 84 $ 35 $ 14,373 $ 14,492 Deferred policy acquisition costs.......................... 4,084 122 (582) 3,624 3,429 121 (644) 2,906 -------- -------- -------- -------- -------- -------- -------- -------- Total assets.................. $ 4,072 $ 149 $ 11,871 $ 16,092 $ 3,513 $ 156 $ 13,729 $ 17,398 ======== ======== ======== ======== ======== ======== ======== ======== Liabilities Other policy-related balances... $ 185 $ 1,653 $ 811 $ 2,649 $ 164 $ 1,588 $ 855 $ 2,607 Other liabilities............... 316 9 5,471 5,796 282 10 5,097 5,389 -------- -------- -------- -------- -------- -------- -------- -------- Total liabilities............. $ 501 $ 1,662 $ 6,282 $ 8,445 $ 446 $ 1,598 $ 5,952 $ 7,996 ======== ======== ======== ======== ======== ======== ======== ========
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 reinsurance were $4.0 billion and $4.2 billion at December 31, 2013 and 2012, respectively. There were no deposit liabilities on reinsurance at both December 31, 2013 and 2012. Related Party Reinsurance Transactions The Company has reinsurance agreements with certain MetLife subsidiaries, including Metropolitan Life Insurance Company ("MLIC"), Exeter, General American Life Insurance Company, MICC, MetLife Reinsurance Company of Vermont and MetLife Reinsurance Company of Delaware ("MRD"), all of which are related parties. 35 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 4. Reinsurance (continued) Information regarding the significant effects of affiliated reinsurance included in the consolidated statements of operations was as follows:
Years Ended December 31, ------------------------ 2013 2012 2011 ------ ------ ------ (In millions) Premiums Reinsurance assumed......................................... $ 10 $ 11 $ 7 Reinsurance ceded........................................... (637) (477) (284) ------ ------ ------ Net premiums............................................... $(627) $(466) $(277) ====== ====== ====== Universal life and investment-type product policy fees Reinsurance assumed......................................... $ 79 $ 83 $ 90 Reinsurance ceded........................................... (735) (555) (416) ------ ------ ------ Net universal life and investment-type product policy fees. $(656) $(472) $(326) ====== ====== ====== Other revenues Reinsurance assumed......................................... $ -- $ -- $ -- Reinsurance ceded........................................... 252 190 215 ------ ------ ------ Net other revenues......................................... $ 252 $ 190 $ 215 ====== ====== ====== Policyholder benefits and claims Reinsurance assumed......................................... $ 10 $ 19 $ 15 Reinsurance ceded........................................... (875) (833) (497) ------ ------ ------ Net policyholder benefits and claims....................... $(865) $(814) $(482) ====== ====== ====== Interest credited to policyholder account balances Reinsurance assumed......................................... $ 73 $ 71 $ 68 Reinsurance ceded........................................... (119) (104) (80) ------ ------ ------ Net interest credited to policyholder account balances..... $ (46) $ (33) $ (12) ====== ====== ====== Other expenses Reinsurance assumed......................................... $ 28 $ 33 $ 48 Reinsurance ceded........................................... 35 98 144 ------ ------ ------ Net other expenses......................................... $ 63 $ 131 $ 192 ====== ====== ======
36 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 4. Reinsurance (continued) Information regarding the significant effects of affiliated reinsurance included in the consolidated balance sheets was as follows at:
December 31, ------------------------------------- 2013 2012 ------------------ ------------------ Assumed Ceded Assumed Ceded -------- --------- -------- --------- (In millions) Assets Premiums, reinsurance and other receivables. $ 27 $ 11,792 $ 35 $ 13,801 Deferred policy acquisition costs........... 122 (579) 121 (642) -------- --------- -------- --------- Total assets............................... $ 149 $ 11,213 $ 156 $ 13,159 ======== ========= ======== ========= Liabilities Other policy-related balances............... $ 1,653 $ 811 $ 1,588 $ 855 Other liabilities........................... 9 5,284 10 4,910 -------- --------- -------- --------- Total liabilities.......................... $ 1,662 $ 6,095 $ 1,598 $ 5,765 ======== ========= ======== =========
Effective October 1, 2012, the Company entered into a reinsurance agreement to cede two blocks of business to MRD, on a 90% coinsurance with funds withheld basis. The agreement covers certain term and certain universal life policies issued in 2012 by the Company and was amended in 2013 to include certain term and universal life policies issued by the Company through December 31, 2013. The agreement transfers risk to MRD and, therefore, is accounted for as reinsurance. As a result of the agreement, affiliated reinsurance recoverables, included in premiums, reinsurance and other receivables, were $917 million and $407 million at December 31, 2013 and 2012, respectively. The Company also recorded a funds withheld liability and other reinsurance payables, included in other liabilities, which were $798 million and $438 million at December 31, 2013 and 2012, respectively. Certain contractual features of this agreement qualify as embedded derivatives, which are separately accounted for at fair value on the Company's consolidated balance sheets. The embedded derivative related to the funds withheld associated with this reinsurance agreement is included within other liabilities and was ($14) million and $6 million at December 31, 2013 and 2012, respectively. The Company's consolidated statements of operations reflected a loss for this agreement of $50 million and $37 million for the years ended December 31, 2013 and 2012, respectively, which included net derivative gains (losses) of $20 million and ($6) million for the years ended December 31, 2013 and 2012, respectively, related to the embedded derivative. The Company ceded risks to affiliates related to guaranteed minimum benefit guarantees written directly by the Company. These ceded reinsurance agreements contain embedded derivatives and changes in their fair value are included within net derivative gains (losses). The embedded derivatives associated with the cessions are included within premiums, reinsurance and other receivables and were assets of $642 million and $3.9 billion at December 31, 2013 and 2012, respectively. Net derivative gains (losses) associated with the embedded derivatives were ($3.8) billion, $439 million, and $1.7 billion for the years ended December 31, 2013, 2012 and 2011, respectively. The Company ceded 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 are 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 is included within other liabilities and increased the 37 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 4. Reinsurance (continued) funds withheld balance by $48 million and $546 million at December 31, 2013 and 2012, respectively. Net derivative gains (losses) associated with the embedded derivatives were $498 million, ($107) million and ($434) million for the years ended December 31, 2013, 2012 and 2011, respectively. 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 $5.4 billion and $6.1 billion of unsecured affiliated reinsurance recoverable balances at December 31, 2013 and 2012, respectively. 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 affiliated reinsurance were $3.9 billion and $4.0 billion, at December 31, 2013 and 2012, respectively. There were no deposit liabilities on affiliated reinsurance at both December 31, 2013 and 2012. 5. Investments See Note 7 for information about the fair value hierarchy for investments and the related valuation methodologies. Investment Risks and Uncertainties Investments are exposed to the following primary sources of risk: credit, interest rate, liquidity, market valuation, currency and real estate risk. 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 variable interest entities ("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. The determination of valuation allowances and impairments is highly subjective and is based upon periodic evaluations and assessments 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. structured securities, including mortgage-backed securities, asset-backed securities ("ABS") and certain structured investment transactions) is dependent upon certain factors such as prepayments and defaults, and changes in such factors could result in changes in amounts to be earned. 38 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) Fixed Maturity and Equity Securities AFS Fixed Maturity and Equity Securities AFS by Sector The following table presents the fixed maturity and equity securities AFS by sector. Redeemable preferred stock is reported within U.S. corporate and foreign corporate fixed maturity securities and non-redeemable preferred stock is reported within equity securities. Included within fixed maturity securities are structured securities including RMBS, ABS and commercial mortgage-backed securities ("CMBS").
December 31, 2013 December 31, 2012 ------------------------------------------ -------------------------------------------- Gross Unrealized Gross Unrealized Cost or ---------------------- Estimated Cost or ------------------------ Estimated Amortized Temporary OTTI Fair Amortized Temporary OTTI Fair Cost Gains Losses Losses Value Cost Gains Losses Losses Value --------- ----- --------- ------ --------- --------- ------- --------- ------ --------- (In millions) Fixed maturity securities U.S. corporate................... $ 4,318 $ 323 $ 70 $ -- $ 4,571 $ 4,130 $ 585 $ 7 $ -- $ 4,708 U.S. Treasury and agency......... 2,031 78 99 -- 2,010 1,004 287 -- -- 1,291 Foreign corporate................ 1,659 103 13 -- 1,749 1,747 188 5 -- 1,930 RMBS............................. 1,123 64 11 2 1,174 1,362 114 6 4 1,466 State and political subdivision.. 776 67 18 -- 825 766 160 2 -- 924 ABS.............................. 369 6 2 -- 373 348 15 3 -- 360 CMBS............................. 326 15 -- -- 341 494 34 1 -- 527 Foreign government............... 155 20 4 -- 171 136 45 -- -- 181 --------- ----- --------- ------ --------- --------- ------- --------- ------ --------- Total fixed maturity securities. $ 10,757 $ 676 $ 217 $ 2 $ 11,214 $ 9,987 $ 1,428 $ 24 $ 4 $ 11,387 ========= ===== ========= ====== ========= ========= ======= ========= ====== ========= Equity securities Non-redeemable preferred stock... $ 93 $ -- $ 14 $ -- $ 79 $ 22 $ 1 $ -- $ -- $ 23 Common stock..................... 20 -- -- -- 20 11 -- -- -- 11 --------- ----- --------- ------ --------- --------- ------- --------- ------ --------- Total equity securities......... $ 113 $ -- $ 14 $ -- $ 99 $ 33 $ 1 $ -- $ -- $ 34 ========= ===== ========= ====== ========= ========= ======= ========= ====== =========
The Company held non-income producing fixed maturity securities with an estimated fair value of $12 million and less than $1 million with unrealized gains (losses) of $2 million and less than $1 million at December 31, 2013 and 2012, respectively. Methodology for Amortization of Premium and Accretion of Discount on Structured Securities Amortization of premium and accretion of discount on structured 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 originally anticipated and the actual prepayments received and currently anticipated. Prepayment assumptions for single class and multi-class mortgage-backed and ABS are estimated using inputs obtained from third-party specialists 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. 39 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) Maturities of Fixed Maturity Securities The amortized cost and estimated fair value of fixed maturity securities, by contractual maturity date, were as follows at:
December 31, --------------------------------------- 2013 2012 ------------------- ------------------- Estimated Estimated Amortized Fair Amortized Fair Cost Value Cost Value --------- --------- --------- --------- (In millions) Due in one year or less........................... $ 298 $ 304 $ 234 $ 239 Due after one year through five years............. 1,610 1,700 1,417 1,531 Due after five years through ten years............ 2,095 2,255 2,137 2,430 Due after ten years............................... 4,936 5,067 3,995 4,834 --------- --------- -------- --------- Subtotal........................................ 8,939 9,326 7,783 9,034 Structured securities (RMBS, ABS and CMBS)........ 1,818 1,888 2,204 2,353 --------- --------- -------- --------- Total fixed maturity securities................ $ 10,757 $ 11,214 $ 9,987 $ 11,387 ========= ========= ======== =========
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 presented in the year of final contractual maturity. RMBS, ABS and CMBS are shown separately, as they are not due at a single maturity. 40 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) Continuous Gross Unrealized Losses for Fixed Maturity and Equity Securities AFS by Sector The following table presents the estimated fair value and gross unrealized losses of fixed maturity and equity securities AFS in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position.
December 31, 2013 December 31, 2012 ----------------------------------------- ----------------------------------------- Equal to or Greater Equal to or Greater Less than 12 Months than 12 Months Less than 12 Months than 12 Months -------------------- -------------------- -------------------- -------------------- Estimated Gross Estimated Gross Estimated Gross Estimated Gross Fair Unrealized Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses Value Losses --------- ---------- --------- ---------- --------- ---------- --------- ---------- (In millions, except number of securities) Fixed maturity securities U.S. corporate.................... $ 845 $ 63 $ 51 $ 7 $ 160 $ 2 $ 48 $ 5 U.S. Treasury and agency.......... 1,189 99 -- -- -- -- -- -- Foreign corporate................. 260 13 18 -- 26 1 14 4 RMBS.............................. 345 9 41 4 19 -- 105 10 State and political subdivision... 146 13 14 5 16 1 6 1 ABS............................... 148 1 14 1 14 -- 26 3 CMBS.............................. 6 -- -- -- 28 1 9 -- Foreign government................ 35 4 1 -- -- -- -- -- --------- ---------- --------- ---------- --------- ---------- --------- ---------- Total fixed maturity securities. $ 2,974 $ 202 $ 139 $ 17 $ 263 $ 5 $ 208 $ 23 ========= ========== ========= ========== ========= ========== ========= ========== Equity securities Non-redeemable preferred.......... $ 70 $ 14 $ -- $ -- $ -- $ -- $ 1 $ -- --------- ---------- --------- ---------- --------- ---------- --------- ---------- Total equity securities......... $ 70 $ 14 $ -- $ -- $ -- $ -- $ 1 $ -- ========= ========== ========= ========== ========= ========== ========= ========== Total number of securities in an unrealized loss position......... 372 63 64 72 ========= ========= ========= =========
Evaluation of AFS Securities for OTTI and Evaluating Temporarily Impaired AFS Securities Evaluation and Measurement Methodologies 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 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 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 where the issuer, series of issuers or industry has suffered a catastrophic 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 amortized cost recovers; (vii) with respect to structured securities, changes in forecasted cash flows 41 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) after considering 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; and (viii) other subjective factors, including concentrations and information obtained from regulators and rating agencies. The methodology and significant inputs used to determine the amount of credit loss on fixed maturity securities are as follows: . The Company calculates the recovery value by performing a discounted cash flow analysis based on the present value of future cash flows. The discount rate is generally the effective interest rate of the security prior to impairment. . When determining collectability and the period over which value is expected to recover, the Company applies 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: payment terms of the security; the likelihood that the issuer can service the 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. . Additional considerations are made when assessing the unique features that apply to certain structured securities including, but not limited to: the quality of underlying collateral, expected prepayment speeds, current and forecasted loss severity, consideration of the payment terms of the underlying loans or assets backing a particular security, and the payment priority within the tranche structure of the security. . When determining the amount of the credit loss for U.S. and foreign corporate securities, foreign government securities and state and political subdivision securities, the estimated fair value is considered 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 as described above, as well as any private and public sector programs to restructure such securities. With respect to securities that have attributes of debt and equity (perpetual hybrid securities), consideration is given in the OTTI analysis as to whether there has been any deterioration in the credit of the issuer and the likelihood of recovery in value of the securities that are in a severe and extended unrealized loss position. Consideration is also given as to 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. 42 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) The cost or amortized cost of fixed maturity and equity securities is adjusted for OTTI in the period in which the determination is made. 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 over the remaining term of the fixed maturity security in a prospective manner based on the amount and timing of estimated future cash flows. Current Period Evaluation Based on the Company's current evaluation of its AFS 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 at December 31, 2013. Future OTTI will depend primarily on economic fundamentals, issuer performance (including changes in the present value of future cash flows expected to be collected), and changes in credit ratings, collateral valuation, interest rates and credit spreads. If economic fundamentals deteriorate or if there are adverse changes in the above factors, OTTI may be incurred in upcoming periods. Gross unrealized losses on fixed maturity securities increased $191 million during the year ended December 31, 2013 from $28 million to $219 million. The increase in gross unrealized losses for the year ended December 31, 2013, was primarily attributable to an increase in interest rates, partially offset by narrowing credit spreads. At December 31, 2013, $2 million of the total $219 million of gross unrealized losses were from two fixed maturity securities with an unrealized loss position of 20% or more of amortized cost for six months or greater. Investment Grade Fixed Maturity Securities All of the $2 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater are related to gross unrealized losses on one investment grade fixed maturity security. Unrealized losses on investment grade fixed maturity securities are principally related to widening credit spreads and, with respect to fixed-rate fixed maturity securities, rising interest rates since purchase. Below Investment Grade Fixed Maturity Securities Less than $1 million of the $2 million of gross unrealized losses on fixed maturity securities with an unrealized loss of 20% or more of amortized cost for six months or greater, are related to gross unrealized losses on one below investment grade fixed maturity security. 43 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) Equity Securities Gross unrealized losses on equity securities increased $14 million during the year ended December 31, 2013 from $0 to $14 million. None of the $14 million of gross unrealized losses were from equity securities with gross unrealized losses of 20% or more of cost for 12 months or greater. Mortgage Loans Mortgage Loans by Portfolio Segment Mortgage loans are summarized as follows at:
December 31, ------------------------------------------- 2013 2012 --------------------- --------------------- Carrying % of Carrying % of Value Total Value Total ------------- ------- ------------- ------- (In millions) (In millions) Mortgage loans: Commercial...................... $ 1,607 88.0 % $ 1,478 88.1 % Agricultural.................... 227 12.4 208 12.4 -------- ------- -------- ------- Subtotal (1).................. 1,834 100.4 1,686 100.5 Valuation allowances............ (8) (0.4) (8) (0.5) -------- ------- -------- ------- Total mortgage loans, net... $ 1,826 100.0 % $ 1,678 100.0 % ======== ======= ======== =======
-------- (1)Purchases of mortgage loans were $2 million and $20 million for the years ended December 31, 2013 and 2012, respectively. See "-- Related Party Investment Transactions" for discussion of related party mortgage loans. Mortgage Loans and Valuation Allowance by Portfolio Segment All commercial and agricultural mortgage loans held at both December 31, 2013 and 2012 were evaluated collectively for credit losses. The valuation allowance for commercial mortgage loans was $7 million at both December 31, 2013 and 2012. The valuation allowance for agricultural mortgage loans was $1 million at both December 31, 2013 and 2012. 44 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) Valuation Allowance Rollforward by Portfolio Segment The changes in the valuation allowance, by portfolio segment, were as follows:
Commercial Agricultural Total ---------- ------------ ----- (In millions) Balance at January 1, 2011... $ 12 $ -- $ 12 Provision (release).......... (2) 1 (1) ----- ----- ----- Balance at December 31, 2011. 10 1 11 Provision (release).......... (3) -- (3) ----- ----- ----- Balance at December 31, 2012. 7 1 8 Provision (release).......... -- -- -- ----- ----- ----- Balance at December 31, 2013. $ 7 $ 1 $ 8 ===== ===== =====
Valuation Allowance Methodology 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 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 both 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. These evaluations are revised as conditions change and new information becomes available. Commercial and Agricultural Mortgage Loan Portfolio Segments The Company typically uses several years of historical experience in establishing non-specific valuation allowances which captures multiple economic cycles. For evaluations of commercial mortgage loans, in addition to historical experience, management considers factors that include the impact of a rapid change to the economy, which may not be reflected in the loan portfolio, and recent loss and recovery trend experience as compared to historical loss and recovery experience. For evaluations of agricultural mortgage loans, in addition to historical experience, management considers factors that include increased stress in certain sectors, which may be evidenced by higher delinquency rates, or a change in the number of higher risk loans. On a quarterly basis, management incorporates the impact of these current market events and conditions on historical experience in determining the non-specific valuation allowance established for commercial and agricultural mortgage loans. 45 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) All commercial mortgage loans are reviewed on an ongoing basis which 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. All agricultural mortgage loans are monitored on an ongoing basis. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, 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 mortgage loans is generally similar to the commercial mortgage loan monitoring process, with a focus on higher risk loans, including reviews on a geographic and property-type basis. Higher risk loans are reviewed individually on an ongoing basis for potential credit loss and specific valuation allowances are established using the methodology described above. 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. For commercial mortgage loans, the 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 Company also reviews the loan-to-value ratio of its commercial mortgage loan portfolio. Loan-to-value ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral. Generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss. The debt service coverage ratio and loan-to-value ratio, as well as the values utilized in calculating these ratios, are updated annually, on a rolling basis, with a portion of the loan portfolio updated each quarter. For agricultural mortgage loans, the Company's primary credit quality indicator is the loan-to-value ratio. The values utilized in calculating this ratio are developed in connection with the ongoing review of the agricultural mortgage loan portfolio and are routinely updated. 46 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) Credit Quality of Commercial Mortgage Loans The credit quality of commercial mortgage loans, were as follows:
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) December 31, 2013: Loan-to-value ratios: Less than 65%......... $ 1,403 $ 18 $ 26 $ 1,447 90.0% $ 1,542 90.5% 65% to 75%............ 100 -- 20 120 7.5 120 7.0 76% to 80%............ 28 12 -- 40 2.5 42 2.5 Greater than 80%...... -- -- -- -- -- -- -- -------- ----- ----- -------- ------ -------- ------ Total................ $ 1,531 $ 30 $ 46 $ 1,607 100.0% $ 1,704 100.0% ======== ===== ===== ======== ====== ======== ====== December 31, 2012: Loan-to-value ratios: Less than 65%......... $ 1,317 $ 16 $ 14 $ 1,347 91.1% $ 1,494 91.5% 65% to 75%............ 75 -- 20 95 6.4 100 6.1 76% to 80%............ -- 5 17 22 1.5 24 1.5 Greater than 80%...... -- 14 -- 14 1.0 14 0.9 -------- ----- ----- -------- ------ -------- ------ Total................ $ 1,392 $ 35 $ 51 $ 1,478 100.0% $ 1,632 100.0% ======== ===== ===== ======== ====== ======== ======
Credit Quality of Agricultural Mortgage Loans The credit quality of agricultural mortgage loans, were as follows at:
December 31, ----------------------------------------- 2013 2012 -------------------- -------------------- Recorded % of Recorded % of Investment Total Investment Total ------------- ------ ------------- ------ (In millions) (In millions) Loan-to-value ratios: Less than 65%......... $ 201 88.5% $ 208 100.0% 65% to 75%............ 26 11.5 -- -- ------ ------ ------ ------ Total................ $ 227 100.0% $ 208 100.0% ====== ====== ====== ======
Past Due and Interest Accrual Status of Mortgage Loans The Company has a high quality, well performing, mortgage loan portfolio, with all mortgage loans classified as performing at both December 31, 2013 and 2012. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial mortgage loans -- 60 days and agricultural mortgage loans -- 90 days. The Company had no mortgage loans past due and no mortgage loans in non-accrual status at both December 31, 2013 and 2012. 47 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) Impaired Mortgage Loans The Company had no impaired mortgage loans at both December 31, 2013 and 2012. The average investment on impaired mortgage loans was $0 and $1 million for the years ended December 31, 2013 and 2012, respectively. The Company did not recognize interest income on impaired mortgage loans during the years ended December 31, 2013, 2012 and 2011. Mortgage Loans Modified in a Troubled Debt Restructuring The Company may grant concessions related to borrowers experiencing financial difficulties which are classified as troubled debt restructurings. Generally, the types of concessions include: reduction of the contractual interest rate, extension of the maturity date at an interest rate lower than current market interest rates, and/or a reduction of accrued interest. The amount, timing and extent of the concession granted is considered in determining any impairment or changes in the specific valuation allowance recorded with the restructuring. Through the continuous monitoring process, a specific valuation allowance may have been recorded prior to the quarter when the mortgage loan is modified in a troubled debt restructuring. Accordingly, the carrying value (after specific valuation allowance) before and after modification through a troubled debt restructuring may not change significantly, or may increase if the expected recovery is higher than the pre-modification recovery assessment. There were no mortgage loans modified in a troubled debt restructuring during the years ended December 31, 2013 and 2012. Other Invested Assets Other invested assets is comprised of loans to affiliates (see "-- Related Party Investment Transactions"), freestanding derivatives with positive estimated fair values (see Note 6), tax credit and renewable energy partnerships and leveraged leases. Leveraged Leases Investment in leveraged leases consisted of the following at:
December 31, ------------- 2013 2012 ----- ----- (In millions) Rental receivables, net..................................... $ 92 $ 92 Estimated residual values................................... 14 14 ----- ----- Subtotal................................................... 106 106 Unearned income............................................. (35) (37) ----- ----- Investment in leveraged leases, net of non-recourse debt. $ 71 $ 69 ===== =====
Rental receivables are generally due in periodic installments. The payment periods range from two to 19 years. For rental receivables, the primary credit quality indicator is whether the rental receivable is performing or nonperforming, which is assessed monthly. The Company generally defines nonperforming rental receivables as those that are 90 days or more past due. At December 31, 2013 and 2012, all rental receivables were performing. 48 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) The deferred income tax liability related to leveraged leases was $63 million and $53 million at December 31, 2013 and 2012, respectively. The components of income from investment in leveraged leases, excluding net investment gains (losses), were as follows:
Years Ended December 31, --------------------------- 2013 2012 2011 ------ ------------- ------ (In millions) Income from investment in leveraged leases............................. $ 2 $ 5 $ 8 Less: Income tax expense on leveraged leases........................... 1 2 3 ------ ------------- ------ Investment income after income tax from investment in leveraged leases. $ 1 $ 3 $ 5 ====== ============= ======
Cash Equivalents The carrying value of cash equivalents, which includes securities and other investments with an original or remaining maturity of three months or less at the time of purchase, was $2 million and $23 million at December 31, 2013 and 2012, respectively. Net Unrealized Investment Gains (Losses) The components of net unrealized investment gains (losses), included in AOCI, were as follows:
Years Ended December 31, ----------------------------- 2013 2012 2011 ------ ------------- -------- (In millions) Fixed maturity securities.............................................. $ 459 $ 1,402 $ 1,057 Fixed maturity securities with noncredit OTTI losses in AOCI........... (2) (4) (6) ------ -------- -------- Total fixed maturity securities....................................... 457 1,398 1,051 Equity securities...................................................... (24) -- -- Derivatives............................................................ 4 142 126 Short-term investments................................................. -- (1) (1) Other.................................................................. (4) (3) -- ------ -------- -------- Subtotal.............................................................. 433 1,536 1,176 ------ -------- -------- Amounts allocated from: Insurance liability loss recognition.................................. -- (79) (61) DAC................................................................... (9) (43) (48) ------ -------- -------- Subtotal............................................................ (9) (122) (109) ------ -------- -------- Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI................................................... -- 1 2 Deferred income tax benefit (expense).................................. (149) (496) (376) ------ -------- -------- Net unrealized investment gains (losses)............................... $ 275 $ 919 $ 693 ====== ======== ========
49 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) The changes in fixed maturity securities with noncredit OTTI losses included in AOCI were as follows:
Years Ended December 31, ------------------------ 2013 2012 ---- ---- (In millions) Balance at January 1,....................................... $(4) $(6) Noncredit OTTI losses and subsequent changes recognized (1). -- (2) Securities sold with previous noncredit OTTI loss........... 1 2 Subsequent changes in estimated fair value.................. 1 2 ---- ---- Balance at December 31,..................................... $(2) $(4) ==== ====
-------- (1)Noncredit OTTI losses and subsequent changes recognized, net of DAC, were less than $1 million and ($2) million for the years ended December 31, 2013 and 2012, respectively. The changes in net unrealized investment gains (losses) were as follows:
Years Ended December 31, ------------------------------ 2013 2012 2011 -------- ------------- ------- (In millions) Balance at January 1,................................................... $ 919 $ 693 $ 110 Fixed maturity securities on which noncredit OTTI losses have been recognized............................................................ 2 2 -- Unrealized investment gains (losses) during the year.................... (1,105) 358 924 Unrealized investment gains (losses) relating to: Insurance liability gain (loss) recognition............................ 79 (18) (27) DAC related to noncredit OTTI losses recognized in AOCI................ -- -- (1) DAC.................................................................... 34 5 -- Deferred income tax benefit (expense) related to noncredit OTTI losses recognized in AOCI................................................... (1) (1) -- Deferred income tax benefit (expense).................................. 347 (120) (313) -------- ------- ------- Balance at December 31,................................................. $ 275 $ 919 $ 693 ======== ======= ======= Change in net unrealized investment gains (losses)...................... $ (644) $ 226 $ 583 ======== ======= =======
Concentrations of Credit Risk There were no investments in any counterparty that were greater than 10% of the Company's stockholder's equity, other than the U.S. government and its agencies, at both December 31, 2013 and 2012. 50 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) Securities Lending Elements of the securities lending program are presented below at:
December 31, ----------------- 2013 2012 -------- -------- (In millions) Securities on loan: (1) Amortized cost........................................ $ 1,443 $ 1,212 Estimated fair value.................................. $ 1,424 $ 1,534 Cash collateral on deposit from counterparties (2)..... $ 1,470 $ 1,574 Security collateral on deposit from counterparties (3). $ -- $ 11 Reinvestment portfolio -- estimated fair value......... $ 1,473 $ 1,591
-------- (1)Included within fixed maturity securities. (2)Included within payables for collateral under securities loaned and other transactions. (3)Security collateral on deposit from counterparties may not be sold or repledged, unless the counterparty is in default, and is not reflected in the consolidated financial statements. Invested Assets on Deposit and Pledged as Collateral Invested assets on deposit and pledged as collateral are presented below at estimated fair value for cash and cash equivalents, short-term investments and fixed maturity securities at:
December 31, ------------- 2013 2012 ----- ----- (In millions) Invested assets on deposit (regulatory deposits)............ $ 6 $ 6 Invested assets pledged as collateral (1)................... 665 698 ----- ----- Total invested assets on deposit and pledged as collateral. $ 671 $ 704 ===== =====
-------- (1)The Company has pledged invested assets in connection with various agreements and transactions, including funding agreements (see Note 2) and derivative transactions (see Note 6). See "-- Securities Lending" for securities on loan. Purchased Credit Impaired Investments Investments acquired with evidence of credit quality deterioration since origination and for which it is probable at the acquisition date that the Company will be unable to collect all contractually required payments are classified as purchased credit impaired ("PCI") investments. For each investment, the excess of the cash 51 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) flows expected to be collected as of the acquisition date over its acquisition date fair value is referred to as the accretable yield and is recognized as net investment income on an effective yield basis. If subsequently, based on current information and events, it is probable that there is a significant increase in cash flows previously expected to be collected or if actual cash flows are significantly greater than cash flows previously expected to be collected, the accretable yield is adjusted prospectively. The excess of the contractually required payments (including interest) as of the acquisition date over the cash flows expected to be collected as of the acquisition date is referred to as the nonaccretable difference, and this amount is not expected to be realized as net investment income. Decreases in cash flows expected to be collected can result in OTTI. The Company's PCI fixed maturity securities were as follows at:
December 31, ------------- 2013 2012 ------ ------ (In millions) Outstanding principal and interest balance (1). $ 312 $ 341 Carrying value (2)............................. $ 248 $ 277
-------- (1)Represents the contractually required payments, which is the sum of contractual principal, whether or not currently due, and accrued interest. (2)Estimated fair value plus accrued interest. The following table presents information about PCI fixed maturity securities acquired during the periods indicated:
Years Ended December 31, ------------------------ 2013 2012 ------ ------- (In millions) Contractually required payments (including interest). $ 46 $ 152 Cash flows expected to be collected (1).............. $ 37 $ 71 Fair value of investments acquired................... $ 25 $ 44
-------- (1)Represents undiscounted principal and interest cash flow expectations, at the date of acquisition. The following table presents activity for the accretable yield on PCI fixed maturity securities for:
Years Ended December 31, ------------------------ 2013 2012 ------- ------- (In millions) Accretable yield, January 1,........................ $ 189 $ 187 Investments purchased............................... 12 27 Accretion recognized in earnings.................... (12) (11) Disposals........................................... (4) -- Reclassification (to) from nonaccretable difference. (20) (14) ------- ------- Accretable yield, December 31,...................... $ 165 $ 189 ======= =======
52 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) 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 $972 million at December 31, 2013. 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 $472 million at December 31, 2013. 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 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. Aggregate net investment income from these equity method investments exceeded 10% of the Company's consolidated pre-tax income (loss) for one of the three most recent annual periods: 2013. The Company is providing the following aggregated summarized financial data for such equity method investments, for the most recent annual periods, in order to provide comparative information. This aggregated summarized financial data does not represent the Company's proportionate share of the assets, liabilities, or earnings of such entities. The aggregated summarized financial data presented below reflects the latest available financial information and is as of, and for the years ended December 31, 2013, 2012 and 2011. Aggregate total assets of these entities totaled $185.7 billion and $148.5 billion at December 31, 2013 and 2012, respectively. Aggregate total liabilities of these entities totaled $8.1 billion and $4.9 billion at December 31, 2013 and 2012, respectively. Aggregate net income (loss) of these entities totaled $18.5 billion, $11.8 billion and $5.0 billion for the years ended December 31, 2013, 2012 and 2011, respectively. Aggregate net income (loss) from the underlying entities in which the Company invests is primarily comprised of investment income, including recurring investment income and realized and unrealized investment gains (losses). Variable Interest Entities The Company has invested in certain structured transactions that are VIEs. In certain instances, the Company may hold both the power to direct the most significant activities of the entity, as well as an economic interest in the entity and, as such, it would be deemed the primary beneficiary or consolidator of the entity. 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. 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 a quarterly 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. 53 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) Consolidated VIEs There were no VIEs for which the Company has concluded that it is the primary beneficiary and which are consolidated at December 31, 2013 and 2012. Unconsolidated VIEs The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at:
December 31, ----------------------------------------- 2013 2012 -------------------- -------------------- Maximum Maximum Carrying Exposure Carrying Exposure Amount to Loss (1) Amount to Loss (1) -------- ----------- -------- ----------- (In millions) Fixed maturity securities AFS: Structured securities (RMBS, ABS and CMBS) (2). $ 1,888 $ 1,888 $ 2,353 $ 2,353 U.S. and foreign corporate..................... 133 133 149 149 Other limited partnership interests............. 593 828 516 780 Other invested assets........................... 9 44 -- -- -------- -------- -------- -------- Total.......................................... $ 2,623 $ 2,893 $ 3,018 $ 3,282 ======== ======== ======== ========
-------- (1)The maximum exposure to loss relating to fixed maturity securities AFS is equal to their carrying amounts or the carrying amounts of retained interests. The maximum exposure to loss relating to other limited partnership interests is equal to the carrying amounts plus any unfunded commitments of the Company. For its investments in other invested assets, the Company's return is in the form of income tax credits. For such investments, the maximum exposure to loss is equal to the carrying amounts plus any unfunded commitment. Such a maximum loss would be expected to occur only upon bankruptcy of the issuer or investee. (2)For these variable interests, the Company's involvement is limited to that of a passive investor. As described in Note 12, 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, 2013, 2012 and 2011. 54 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) Net Investment Income The components of net investment income were as follows:
Years Ended December 31, ------------------------ 2013 2012 2011 ------ ------ ------ (In millions) Investment income: Fixed maturity securities......................... $ 531 $ 525 $ 468 Equity securities................................. 4 -- -- Mortgage loans.................................... 95 87 76 Policy loans...................................... 6 5 4 Real estate and real estate joint ventures........ 6 1 -- Other limited partnership interests............... 105 54 42 Cash, cash equivalents and short-term investments. (1) 1 -- Other............................................. 4 7 9 ------ ------ ------ Subtotal........................................ 750 680 599 Less: Investment expenses......................... 24 19 13 ------ ------ ------ Net investment income......................... $ 726 $ 661 $ 586 ====== ====== ======
See "-- Related Party Investment Transactions" for discussion of affiliated net investment income and investment expenses. 55 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) Net Investment Gains (Losses) Components of Net Investment Gains (Losses) The components of net investment gains (losses) were as follows:
Years Ended December 31, -------------------------- 2013 2012 2011 ----- ----- ------ (In millions) Total gains (losses) on fixed maturity securities: Total OTTI losses recognized -- by sector and industry: U.S. and foreign corporate securities -- by industry: Finance............................................................ $ (3) $ (1) $ -- ----- ----- ------ Total U.S. and foreign corporate securities...................... (3) (1) -- RMBS................................................................. -- (1) (2) ----- ----- ------ OTTI losses on fixed maturity securities recognized in earnings........ (3) (2) (2) Fixed maturity securities -- net gains (losses) on sales and disposals. 5 23 (5) ----- ----- ------ Total gains (losses) on fixed maturity securities................ 2 21 (7) ----- ----- ------ Other net investment gains (losses): Equity securities...................................................... -- -- (1) Mortgage loans......................................................... -- 3 2 Other limited partnership interests.................................... -- 1 (1) Other investment portfolio gains (losses).............................. 4 -- -- ----- ----- ------ Total net investment gains (losses)............................. $ 6 $ 25 $ (7) ===== ===== ======
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 ($1) million, less than $1 million and $1 million for the years ended December 31, 2013, 2012 and 2011, respectively. 56 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) Sales or Disposals and Impairments of Fixed Maturity and Equity Securities Proceeds from sales or disposals of fixed maturity and equity securities and the components of fixed maturity and equity securities net investment gains (losses) are as shown in the table below. Investment gains and losses on sales of securities are determined on a specific identification basis.
Years Ended December 31, ------------------------------------------------------------------- 2013 2012 2011 2013 2012 2011 2013 2012 2011 -------- -------- ------- ----- ----- ----- ------- ------- ------- Fixed Maturity Securities Equity Securities Total ------------------------- ----------------- ----------------------- (In millions) Proceeds............................ $ 2,859 $ 2,021 $ 2,510 $ 7 $ 3 $ 5 $ 2,866 $ 2,024 $ 2,515 ======== ======== ======= ===== ===== ===== ======= ======= ======= Gross investment gains.............. $ 46 $ 32 $ 13 $ -- $ -- $ -- $ 46 $ 32 $ 13 -------- -------- ------- ----- ----- ----- ------- ------- ------- Gross investment losses............. (41) (9) (18) -- -- -- (41) (9) (18) -------- -------- ------- ----- ----- ----- ------- ------- ------- Total OTTI losses: Credit-related.................... -- (1) (2) -- -- -- -- (1) (2) Other (1)......................... (3) (1) -- -- -- (1) (3) (1) (1) -------- -------- ------- ----- ----- ----- ------- ------- ------- Total OTTI losses................ (3) (2) (2) -- -- (1) (3) (2) (3) -------- -------- ------- ----- ----- ----- ------- ------- ------- Net investment gains (losses)... $ 2 $ 21 $ (7) $ -- $ -- $ (1) $ 2 $ 21 $ (8) ======== ======== ======= ===== ===== ===== ======= ======= =======
-------- (1)Other OTTI losses recognized in earnings include impairments on (i) equity securities, (ii) 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 (iii) 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. Credit Loss Rollforward The table below presents a 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 OCI:
Years Ended December 31, ------------------------ 2013 2012 -------- -------- (In millions) Balance, at January 1,................................................ $ 1 $ 1 Additions: Initial impairments -- credit loss OTTI recognized on securities not previously impaired............................................ -- 1 Reductions: Sales (maturities, pay downs or prepayments) during the period of securities previously impaired as credit loss OTTI................. -- (1) -------- -------- Balance, at December 31,.............................................. $ 1 $ 1 ======== ========
57 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 5. Investments (continued) Related Party Investment Transactions The Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. Invested assets transferred to and from affiliates were as follows:
Years Ended December 31, ------------------------ 2013 2012 2011 ----- ----- ----- (In millions) Estimated fair value of invested assets transferred to affiliates... $ 33 $ -- $ -- Amortized cost of invested assets transferred to affiliates......... $ 31 $ -- $ -- Net investment gains (losses) recognized on transfers............... $ 2 $ -- $ -- Estimated fair value of invested assets transferred from affiliates. $ 77 $ -- $ --
The Company has affiliated loans outstanding to wholly-owned real estate subsidiaries of an affiliate, MLIC, which are included in mortgage loans, with a carrying value of $147 million and $117 million at December 31, 2013 and 2012, respectively. A loan issued in 2013 for $30 million bears interest at one-month LIBOR + 4.50% with quarterly interest only payments of less than $1 million through January 2017, when the principal balance is due. A loan with a carrying value of $77 million, at both December 31, 2013 and 2012, bears interest at 7.26% due in quarterly principal and interest payments of $2 million through January 2020, when the remaining principal balance is due. A loan with a carrying value of $40 million, at both December 31, 2013 and 2012, bears interest at 7.01% with quarterly interest only payments of $1 million through January 2020, when the principal balance is due. These affiliated loans 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 these affiliated loans was $8 million, $8 million and $9 million for the years ended December 31, 2013, 2012 and 2011, respectively. The Company has affiliated loans outstanding which are included in other invested assets, totaling $125 million at both December 31, 2013 and 2012. At December 31, 2011, the loans were outstanding with Exeter, an affiliate. During 2012, MetLife assumed this affiliated debt from Exeter. The loans are due on December 16, 2021, and bears interest, payable semi-annually, at 5.86%. Net investment income from these affiliated loans was $7 million, $7 million and less than $1 million for the years ended December 31, 2013, 2012 and 2011, respectively. In July 2013, the Company committed to lend up to $438 million to Exeter, an affiliate, pursuant to a note purchase agreement. Pursuant to the agreement, the notes will be due not later than three years after issuance. The repayment of any notes issued pursuant to this agreement is guaranteed by MetLife. In October 2013, pursuant to this agreement, the Company issued a loan to Exeter for $125 million, which is included in other invested assets, for the year ending December 31, 2013. The loan is due on October 15, 2015, and bears interest, payable semi-annually, at 2.47%. Net investment income from this loan was $1 million at December 31, 2013. The remaining total commitment to lend is $313 million at December 31, 2013. The Company receives investment administrative services from an affiliate. The related investment administrative service charges were $13 million, $11 million, and $10 million for the years ended December 31, 2013, 2012 and 2011, respectively. The Company also had additional affiliated net investment income (loss) of ($1) million for the year ended December 31, 2013 and less than $1 million for both years ended December 31, 2012 and 2011. 58 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 6. Derivatives Accounting for Derivatives See Note 1 for a description of the Company's accounting policies for derivatives and Note 7 for information about the fair value hierarchy for derivatives. Derivative Strategies The Company is exposed to various risks relating to its ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. The Company uses a variety of strategies to manage these risks, including the use of derivatives. Derivatives are financial instruments whose values are derived from interest rates, foreign currency exchange rates, credit spreads and/or other financial indices. Derivatives may be exchange-traded or contracted in the over-the-counter ("OTC") market. Certain of the Company's OTC derivatives are cleared and settled through central clearing counterparties ("OTC-cleared"), while others are bilateral contracts between two counterparties ("OTC-bilateral"). The types of derivatives the Company uses include swaps, forwards, futures and option contracts. To a lesser extent, the Company uses credit default swaps to synthetically replicate investment risks and returns which are not readily available in the cash market. Interest Rate Derivatives The Company uses a variety of interest rate derivatives to reduce its exposure to changes in interest rates, including interest rate swaps, caps, floors and forwards. 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 amount. 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, 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. 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 hedging relationships. To a lesser extent, the Company uses interest rate futures in non-qualifying hedging relationships. 59 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 6. Derivatives (continued) Foreign Currency Exchange Rate Derivatives The Company uses foreign currency swaps 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 notional amount. The notional 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. To a lesser extent, the Company uses foreign currency forwards in non-qualifying hedging relationships. Credit Derivatives The Company enters into purchased credit default swaps to hedge against credit-related changes in the value of its investments. In a credit default swap transaction, the Company agrees with another party to pay, at specified intervals, a premium to hedge credit risk. If a credit event occurs, as defined by the contract, the contract may be cash settled or it may be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. Credit events vary by type of issuer but typically include bankruptcy, failure to pay debt obligations, repudiation, moratorium, or involuntary restructuring. In each case, payout on a credit default swap is triggered only after the Credit Derivatives Determinations Committee of the International Swaps and Derivatives Association, Inc. ("ISDA") deems that a credit event has occurred. The Company utilizes credit default swaps in non-qualifying hedging relationships. The Company enters into written credit default swaps to synthetically create credit investments that are either more expensive to acquire or otherwise unavailable in the cash markets. These transactions are a combination of a derivative and one or more cash instruments, such as U.S. Treasury securities, agency securities or other fixed maturity securities. These credit default swaps are not designated as hedging instruments. Equity Derivatives The Company uses equity index options to reduce its exposure to equity market risk in non-qualifying hedging relationships. 60 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 6. Derivatives (continued) Primary Risks Managed by Derivatives The following table presents the gross notional amount, estimated fair value and primary underlying risk exposure of the Company's derivatives, excluding embedded derivatives, held at:
December 31, ------------------------------------------------------------- 2013 2012 ------------------------------ ------------------------------ Estimated Fair Value Estimated Fair Value -------------------- -------------------- Notional Notional Primary Underlying Risk Exposure Amount Assets Liabilities Amount Assets Liabilities -------------------------------- --------- ------ ----------- --------- ------ ----------- (In millions) Derivatives Designated as Hedging Instruments Fair value hedges: Interest rate swaps........... Interest rate.................... $ 112 $ 1 $ 1 $ 101 $ -- $ 2 --------- ------ ------ --------- ------ ------ Subtotal.................................................... 112 1 1 101 -- 2 --------- ------ ------ --------- ------ ------ Cash flow hedges: Interest rate swaps........... Interest rate.................... 377 3 29 483 59 -- Interest rate forwards........ Interest rate.................... 145 3 1 260 53 -- Foreign currency swaps........ Foreign currency exchange rate... 200 1 21 183 2 6 --------- ------ ------ --------- ------ ------ Subtotal.................................................... 722 7 51 926 114 6 --------- ------ ------ --------- ------ ------ Total qualifying hedges................................... $ 834 $ 8 $ 52 $ 1,027 $ 114 $ 8 --------- ------ ------ --------- ------ ------ Derivatives Not Designated or Not Qualifying as Hedging Instruments Interest rate swaps............. Interest rate.................... $ 2,975 $ 71 $ 38 $ 1,587 $ 96 $ 10 Interest rate floors............ Interest rate.................... 6,000 29 29 6,000 93 91 Interest rate caps.............. Interest rate.................... 2,000 5 -- 1,500 -- -- Interest rate futures........... Interest rate.................... -- -- -- 44 -- 1 Foreign currency swaps.......... Foreign currency exchange rate... 173 1 15 120 1 4 Foreign currency forwards....... Foreign currency exchange rate... 7 -- -- Credit default swaps -- purchased............. Credit........................... 24 -- -- 24 -- -- Credit default swaps -- written. Credit........................... 528 11 -- 624 5 -- Equity options.................. Equity market.................... 72 -- -- 36 -- -- --------- ------ ------ --------- ------ ------ Total non-designated or non-qualifying derivatives.......... 11,779 117 82 9,935 195 106 --------- ------ ------ --------- ------ ------ Total..................................................... $ 12,613 $ 125 $ 134 $ 10,962 $ 309 $ 114 ========= ====== ====== ========= ====== ======
Based on notional amounts, a substantial portion of the Company's derivatives was not designated or did not qualify as part of a hedging relationship at both December 31, 2013 and 2012. The Company's use of derivatives includes (i) derivatives that serve as macro hedges of the Company's exposure to various risks and that generally do not qualify for hedge accounting due to the criteria required under the portfolio hedging rules; (ii) derivatives that economically hedge insurance liabilities that contain mortality or morbidity risk and that generally do not qualify for hedge accounting because the lack of these risks in the derivatives cannot support an expectation of a highly effective hedging relationship; (iii) derivatives that economically hedge embedded derivatives that do not qualify for hedge accounting because the changes in estimated fair value of the embedded derivatives are already recorded in net income; and (iv) written credit default swaps that are used to synthetically create credit investments and that do not qualify for hedge accounting because they do not involve a hedging relationship. For these non-qualified derivatives, changes in market factors can lead to the recognition of fair value changes in the consolidated statement of operations without an offsetting gain or loss recognized in earnings for the item being hedged. 61 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 6. Derivatives (continued) Net Derivative Gains (Losses) The components of net derivative gains (losses) were as follows:
Years Ended December 31, --------------------------- 2013 2012 2011 ---------- --------- ------ (In millions) Derivatives and hedging gains (losses) (1). $ (82) $ 37 $ 191 Embedded derivatives....................... (923) 1,098 534 ---------- --------- ------ Total net derivative gains (losses)....... $ (1,005) $ 1,135 $ 725 ========== ========= ======
-------- (1)Includes foreign currency transaction gains (losses) on hedged items in cash flow and non-qualifying hedging relationships, which are not presented elsewhere in this note. The amount the Company recognized in net investment income from settlement payments related to qualifying hedges for the years ended December 31, 2013, 2012 and 2011 was not significant. The Company recognized $71 million, $60 million and $36 million of net derivative gains (losses) from settlement payments related to non-qualifying hedges for the years ended December 31, 2013, 2012 and 2011, respectively. Non-Qualifying Derivatives and Derivatives for Purposes Other Than Hedging The following table presents 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) Year Ended December 31, 2013: Interest rate derivatives.................. $ (162) $ -- Foreign currency exchange rate derivatives. (13) -- Credit derivatives -- purchased............ -- -- Credit derivatives -- written.............. 13 -- Equity derivatives......................... -- (1) ----------- -------- Total.................................... $ (162) $ (1) =========== ======== Year Ended December 31, 2012: Interest rate derivatives.................. $ (29) $ -- Foreign currency exchange rate derivatives. (3) -- Credit derivatives -- purchased............ (3) -- Credit derivatives -- written.............. 11 -- Equity derivatives......................... -- (1) ----------- -------- Total.................................... $ (24) $ (1) =========== ======== Year Ended December 31, 2011: Interest rate derivatives.................. $ 143 $ -- Foreign currency exchange rate derivatives. -- -- Credit derivatives -- purchased............ 2 -- Credit derivatives -- written.............. (1) -- Equity derivatives......................... -- (2) ----------- -------- Total.................................... $ 144 $ (2) =========== ========
-------- (1)Changes in estimated fair value related to economic hedges of equity method investments in joint ventures. 62 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 6. Derivatives (continued) Fair Value Hedges The Company designates and accounts for interest rate swaps to convert fixed rate assets to floating rate assets as fair value hedges when they have met the requirements of fair value hedging. The amount the Company recognized in net derivative gains (losses) representing the ineffective portion of all fair value hedges was not significant for both years ended December 31, 2013 and 2011, and was ($1) million for the year ended December 31, 2012. Changes in the fair value of the derivatives recognized in net derivative gains (losses) were $2 million and ($2) million for the years ended December 31, 2013 and 2012, respectively, and not significant for the year ended December 31, 2011. Changes in the fair value of the hedged items recognized in net derivative gains (losses) were ($2) million and $1 million for the years ended December 31, 2013 and 2012, respectively, and not significant for the year ended December 31, 2011. 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 assets 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. In certain instances, the Company discontinued cash flow hedge accounting because the forecasted transactions were no longer probable of occurring. Because certain of the forecasted transactions also were not probable of occurring within two months of the anticipated date, the Company reclassified certain amounts from AOCI into net derivative gains (losses). These amounts were $0, $0, and $1 million for the years ended December 31, 2013, 2012 and 2011, respectively. At December 31, 2013 and 2012, 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 and seven years, respectively. At December 31, 2013 and 2012, the balance in AOCI associated with cash flow hedges was $4 million and $142 million, respectively. 63 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 6. Derivatives (continued) 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:
Amount and Location Amount of Gains of Gains (Losses) Derivatives in Cash Flow (Losses) Deferred in Reclassified from Hedging Relationships AOCI on Derivatives AOCI into Income (Loss) ------------------------------ -------------------- ----------------------------- (Effective Portion) (Effective Portion) -------------------- ----------------------------- Net Derivative Net Investment Gains (Losses) Income -------------- -------------- (In millions) Year Ended December 31, 2013: Interest rate swaps........... $ (84) $ -- $ -- Interest rate forwards........ (33) 6 1 Foreign currency swaps........ (15) (1) -- ------------- ---------- --------- Total........................ $ (132) $ 5 $ 1 ============= ========== ========= Year Ended December 31, 2012: Interest rate swaps........... $ 27 $ -- $ -- Interest rate forwards........ (1) 1 -- Foreign currency swaps........ (9) -- -- ------------- ---------- --------- Total........................ $ 17 $ 1 $ -- ============= ========== ========= Year Ended December 31, 2011: Interest rate swaps........... $ 57 $ 1 $ -- Interest rate forwards........ 144 9 -- Foreign currency swaps........ 7 (1) -- ------------- ---------- --------- Total........................ $ 208 $ 9 $ -- ============= ========== =========
All components of each derivative's gain or loss were included in the assessment of hedge effectiveness. At December 31, 2013, ($1) million of deferred net gains (losses) on derivatives in AOCI was expected to be reclassified to earnings within the next 12 months. Credit Derivatives In connection with synthetically created credit 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, the contract may be cash settled or it may be settled gross by the Company paying 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 $528 million and $624 million at December 31, 2013 and 2012, 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 December 31, 2013 and 2012, the Company would have received $11 million and $5 million, respectively, to terminate all of these contracts. 64 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 6. Derivatives (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, --------------------------------------------------------------------------------- 2013 2012 ---------------------------------------- ---------------------------------------- Estimated Maximum Estimated Maximum Fair Value Amount of Future Weighted Fair Value Amount of Future Weighted of Credit Payments under Average of Credit Payments under Average Rating Agency Designation of Referenced Default Credit Default Years to Default Credit Default Years to Credit Obligations (1) Swaps Swaps (2) Maturity (3) Swaps Swaps (2) Maturity (3) --------------------------------------- ---------- ---------------- ------------ ---------- ---------------- ------------ (In millions) (In millions) Aaa/Aa/A Single name credit default swaps (corporate)........................ $ 1 $ 30 3.0 $ 1 $ 43 2.9 Credit default swaps referencing indices............................ -- 42 0.8 -- 42 1.8 ---------- ---------------- ---------- ---------------- Subtotal............................ 1 72 1.7 1 85 2.3 ---------- ---------------- ---------- ---------------- Baa Single name credit default swaps (corporate)........................ 2 110 2.7 1 80 3.6 Credit default swaps referencing indices............................ 5 310 5.0 3 423 4.5 ---------- ---------------- ---------- ---------------- Subtotal............................ 7 420 4.4 4 503 4.4 ---------- ---------------- ---------- ---------------- B Single name credit default swaps (corporate)........................ -- -- -- -- -- -- Credit default swaps referencing indices............................ 3 36 5.0 -- 36 5.0 ---------- ---------------- ---------- ---------------- Subtotal............................ 3 36 5.0 -- 36 5.0 ---------- ---------------- ---------- ---------------- Total............................. $ 11 $ 528 4.1 $ 5 $ 624 4.1 ========== ================ ========== ================
-------- (1)The rating agency designations are based on availability and the midpoint of the applicable ratings among Moody's Investors Service ("Moody's"), S&P and Fitch Ratings. 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. 65 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 6. Derivatives (continued) Credit Risk on Freestanding Derivatives The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to derivatives. Generally, the current credit exposure of the Company's derivatives is limited to the net positive estimated fair value of derivatives at the reporting date after taking into consideration the existence of master netting or similar agreements and any collateral received pursuant to such agreements. The Company manages its credit risk related to derivatives by entering into transactions with creditworthy counterparties and establishing and monitoring exposure limits. The Company's OTC-bilateral derivative transactions are generally governed by ISDA Master Agreements which provide for legally enforceable set-off and close-out netting of exposures to specific counterparties in the event of early termination of a transaction, which includes, but is not limited to, events of default and bankruptcy. In the event of an early termination, the Company is permitted to set off receivables from the counterparty against payables to the same counterparty arising out of all included transactions. Substantially all of the Company's ISDA Master Agreements also include Credit Support Annex provisions which require both the pledging and accepting of collateral in connection with its OTC-bilateral derivatives. The Company's OTC-cleared derivatives are effected through central clearing counterparties and its exchange-traded derivatives are effected through regulated exchanges. Such positions are marked to market and margined on a daily basis, and the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivatives. See Note 7 for a description of the impact of credit risk on the valuation of derivatives. 66 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 6. Derivatives (continued) The estimated fair value of the Company's net derivative assets and net derivative liabilities after the application of master netting agreements and collateral was as follows at:
December 31, 2013 December 31, 2012 ------------------ -------------------- Derivatives Subject to a Master Netting Arrangement or a Similar Arrangement Assets Liabilities Assets Liabilities ---------------------------------------------------------------------------- ------ ----------- -------- ----------- (In millions) Gross estimated fair value of derivatives: OTC-bilateral (1).......................................................... $ 119 $ 134 $ 323 $ 126 OTC-cleared (1)............................................................ 15 8 -- -- Exchange-traded............................................................ -- -- -- 1 ------ ------- -------- ------- Total gross estimated fair value of derivatives (1)...................... 134 142 323 127 Amounts offset in the consolidated balance sheets........................... -- -- -- -- ------ ------- -------- ------- Estimated fair value of derivatives presented in the consolidated balance sheets (1)................................................................ 134 142 323 127 Gross amounts not offset in the consolidated balance sheets: Gross estimated fair value of derivatives: (2) OTC-bilateral............................................................ (80) (80) (22) (22) OTC-cleared.............................................................. (6) (6) -- -- Exchange-traded.......................................................... -- -- -- -- Cash collateral: (3) OTC-bilateral............................................................ (39) -- (249) -- OTC-cleared.............................................................. (8) (1) -- -- Exchange-traded.......................................................... -- -- -- (1) Securities collateral: (4) OTC-bilateral............................................................ (1) (50) (52) (101) OTC-cleared.............................................................. -- -- -- -- Exchange-traded.......................................................... -- -- -- -- ------ ------- -------- ------- Net amount after application of master netting agreements and collateral.... $ -- $ 5 $ -- $ 3 ====== ======= ======== =======
-------- (1)At December 31, 2013 and 2012, derivative assets include income or expense accruals reported in accrued investment income or in other liabilities of $9 million and $14 million, respectively, and derivative liabilities include income or expense accruals reported in accrued investment income or in other liabilities of $8 million and $13 million, respectively. (2)Estimated fair value of derivatives is limited to the amount that is subject to set-off and includes income or expense accruals. (3)Cash collateral received is included in cash and cash equivalents, short-term investments, or in fixed maturity securities, and the obligation to return it is included in payables for collateral under securities loaned and other transactions in the consolidated balance sheets. The receivable for the return of cash collateral provided by the Company is inclusive of initial margin on exchange-traded and OTC-cleared derivatives and is included in premiums, reinsurance and other receivables in the consolidated balance 67 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 6. Derivatives (continued) sheets. The amount of cash collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements. At December 31, 2013 and 2012, the Company received excess cash collateral of $5 million and $0, respectively, and provided excess cash collateral of $1 million and $1 million, respectively, which is not included in the table above due to the foregoing limitation. (4)Securities collateral received by the Company is held in separate custodial accounts and is not recorded on the consolidated balance sheets. Subject to certain constraints, the Company is permitted by contract to sell or repledge this collateral, but at December 31, 2013 none of the collateral had been sold or repledged. Securities collateral pledged by the Company is reported in fixed maturity securities in the consolidated balance sheets. Subject to certain constraints, the counterparties are permitted by contract to sell or repledge this collateral. The amount of securities collateral offset in the table above is limited to the net estimated fair value of derivatives after application of netting agreements and cash collateral. At December 31, 2013 and 2012, the Company received excess securities collateral with an estimated fair value of $4 million and $12 million, respectively, for its OTC-bilateral derivatives, which are not included in the table above due to the foregoing limitation. At December 31, 2013 and 2012, the Company provided excess securities collateral with an estimated fair value of $0 and $0, respectively, for its OTC-bilateral derivatives and $12 million and $0, respectively, for its OTC-cleared derivatives, which are not included in the table above due to the foregoing limitation. At both December 31, 2013 and 2012, the Company did not pledge any securities collateral for its exchange-traded derivatives. The Company's collateral arrangements for its OTC-bilateral 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 arrangements also include financial strength-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 financial strength ratings of the Company and/or the credit rating of the counterparty. In addition, certain of the Company's netting agreements for derivatives contain provisions that require both the Company and the counterparty to maintain a specific investment grade financial strength or credit rating from each of Moody's and S&P. If a party's financial strength or credit ratings were to fall below that specific investment grade financial strength or credit rating, that party would be in violation of these provisions, and the other party to the derivatives could terminate the transactions and demand immediate settlement and payment based on such party's reasonable valuation of the derivatives. 68 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 6. Derivatives (continued) The following table presents the estimated fair value of the Company's OTC-bilateral 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 financial strength rating at the reporting date or if the Company's financial strength rating sustained a downgrade to a level that triggered full overnight collateralization or termination of the derivative position at the reporting date. OTC-bilateral derivatives that are not subject to collateral agreements are excluded from this table.
Estimated Fair Value of Fair Value of Incremental Collateral Provided: Collateral Provided Upon: ----------------------- ---------------------------------------- Downgrade in the Company's One Notch Financial Strength Rating Estimated Downgrade in to a Level that Fair Value of the Company's Triggers Full Overnight Derivatives in Financial Collateralization or Net Liability Fixed Maturity Strength Termination of Position (1) Securities Rating the Derivative Position -------------- ----------------------- ------------- -------------------------- (In millions) December 31, 2013. $ 54 $ 50 $ -- $ 2 December 31, 2012. $ 104 $ 101 $ -- $ 7
-------- (1)After taking into consideration the existence of netting agreements. Embedded Derivatives The Company issues certain products or purchases certain investments that contain embedded derivatives that are required to be separated from their host contracts and accounted for as freestanding derivatives. These host contracts principally include: variable annuities with guaranteed minimum benefits, including GMWBs, GMABs and certain GMIBs; affiliated ceded reinsurance of guaranteed minimum benefits related to GMWBs, GMABs and certain GMIBs; and funds withheld on ceded reinsurance. The following table presents the estimated fair value and balance sheet location of the Company's embedded derivatives that have been separated from their host contracts at:
December 31, ------------------- Balance Sheet Location 2013 2012 -------------------------- ---------- -------- (In millions) Net embedded derivatives within asset host contracts: Ceded guaranteed minimum benefits........................ Premiums, reinsurance and other receivables......... $ 642 $ 3,891 Options embedded in debt or equity securities............ Investments............... (16) (5) ---------- -------- Net embedded derivatives within asset host contracts........................... $ 626 $ 3,886 ========== ======== Net embedded derivatives within liability host contracts: Direct guaranteed minimum benefits....................... PABs...................... $ (1,248) $ 660 Funds withheld on ceded reinsurance...................... Other liabilities......... 34 552 ---------- -------- Net embedded derivatives within liability host contracts....................... $ (1,214) $ 1,212 ========== ========
69 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 6. Derivatives (continued) The following table presents changes in estimated fair value related to embedded derivatives:
Years Ended December 31, ------------------------ 2013 2012 2011 -------- -------- ------ (In millions) Net derivative gains (losses) (1), (2). $ (923) $ 1,098 $ 534
-------- (1)The valuation of direct guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment, were ($151) million, ($225) million and $346 million for the years ended December 31, 2013, 2012 and 2011, respectively. In addition, the valuation of ceded guaranteed minimum benefits includes a nonperformance risk adjustment. The amounts included in net derivative gains (losses) in connection with this adjustment, were $76 million, $124 million and ($476) million for the years ended December 31, 2013, 2012 and 2011, respectively. (2)See Note 4 for discussion of affiliated net derivative gains (losses) included in the table above. 7. Fair Value When developing estimated fair values, 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, giving priority to observable inputs. The Company categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: Level 1 Unadjusted 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 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can 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 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of 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. 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. 70 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) 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. Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy are presented below.
December 31, 2013 ------------------------------------------------- Fair Value Hierarchy --------------------------------- Total Estimated Level 1 Level 2 Level 3 Fair Value --------- ---------- ------------ --------------- (In millions) Assets Fixed maturity securities: U.S. corporate............................................. $ -- $ 4,397 $ 174 $ 4,571 U.S. Treasury and agency................................... 841 1,169 -- 2,010 Foreign corporate.......................................... -- 1,441 308 1,749 RMBS....................................................... -- 1,057 117 1,174 State and political subdivision............................ -- 825 -- 825 ABS........................................................ -- 278 95 373 CMBS....................................................... -- 306 35 341 Foreign government......................................... -- 171 -- 171 --------- ---------- ------------ --------------- Total fixed maturity securities........................... 841 9,644 729 11,214 --------- ---------- ------------ --------------- Equity securities: Non-redeemable preferred stock............................. -- 79 -- 79 Common stock............................................... -- 20 -- 20 --------- ---------- ------------ --------------- Total equity securities................................... -- 99 -- 99 --------- ---------- ------------ --------------- Short-term investments....................................... 3 501 -- 504 Derivative assets: (1) Interest rate.............................................. -- 108 4 112 Foreign currency exchange rate............................. -- 2 -- 2 Credit..................................................... -- 11 -- 11 --------- ---------- ------------ --------------- Total derivative assets................................... -- 121 4 125 Net embedded derivatives within asset host contracts (2)..... -- -- 642 642 Separate account assets (3).................................. 118 81,627 -- 81,745 --------- ---------- ------------ --------------- Total assets............................................. $ 962 $ 91,992 $ 1,375 $ 94,329 ========= ========== ============ =============== Liabilities Derivative liabilities: (1) Interest rate.............................................. $ -- $ 97 $ 1 $ 98 Foreign currency exchange rate............................. -- 36 -- 36 --------- ---------- ------------ --------------- Total derivative liabilities.............................. -- 133 1 134 Net embedded derivatives within liability host contracts (2). -- -- (1,214) (1,214) --------- ---------- ------------ --------------- Total liabilities........................................ $ -- $ 133 $ (1,213) $ (1,080) ========= ========== ============ ===============
71 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued)
December 31, 2012 ------------------------------------------------ Fair Value Hierarchy -------------------------------- Total Estimated Level 1 Level 2 Level 3 Fair Value ---------- ---------- ---------- --------------- (In millions) Assets Fixed maturity securities: U.S. corporate............................................. $ -- $ 4,475 $ 233 $ 4,708 U.S. Treasury and agency................................... 297 994 -- 1,291 Foreign corporate.......................................... -- 1,624 306 1,930 RMBS....................................................... -- 1,418 48 1,466 State and political subdivision............................ -- 924 -- 924 ABS........................................................ -- 288 72 360 CMBS....................................................... -- 516 11 527 Foreign government......................................... -- 179 2 181 ---------- ---------- ---------- --------------- Total fixed maturity securities........................... 297 10,418 672 11,387 ---------- ---------- ---------- --------------- Equity securities: Non-redeemable preferred stock............................. -- 22 1 23 Common stock............................................... -- 11 -- 11 ---------- ---------- ---------- --------------- Total equity securities................................... -- 33 1 34 ---------- ---------- ---------- --------------- Short-term investments....................................... 245 477 -- 722 Derivative assets: (1) Interest rate.............................................. -- 248 53 301 Foreign currency exchange rate............................. -- 3 -- 3 Credit..................................................... -- 4 1 5 ---------- ---------- ---------- --------------- Total derivative assets................................... -- 255 54 309 Net embedded derivatives within asset host contracts (2)..... -- -- 3,891 3,891 Separate account assets (3).................................. 75 70,801 -- 70,876 ---------- ---------- ---------- --------------- Total assets............................................. $ 617 $ 81,984 $ 4,618 $ 87,219 ========== ========== ========== =============== Liabilities Derivative liabilities: (1) Interest rate.............................................. $ 1 $ 103 $ -- $ 104 Foreign currency exchange rate............................. -- 10 -- 10 ---------- ---------- ---------- --------------- Total derivative liabilities.............................. 1 113 -- 114 Net embedded derivatives within liability host contracts (2). -- -- 1,212 1,212 ---------- ---------- ---------- --------------- Total liabilities........................................ $ 1 $ 113 $ 1,212 $ 1,326 ========== ========== ========== ===============
-------- (1)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. (2)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 primarily within PABs and other liabilities in the consolidated balance sheets. At December 31, 2013 and 2012, equity securities also included embedded derivatives of ($16) million and ($5) million, respectively. 72 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) (3)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. The following describes the valuation methodologies used to measure assets and liabilities at fair value. The description includes the valuation techniques and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy. Investments Valuation Controls and Procedures On behalf of the Company and MetLife, Inc.'s Chief Investment Officer and Chief Financial Officer, a pricing and valuation committee that is independent of the trading and investing functions and comprised of senior management, provides oversight of control systems and valuation policies for securities, mortgage loans and derivatives. On a quarterly basis, this committee reviews and approves new transaction types and markets, ensures that observable market prices and market-based parameters are used for valuation, wherever possible, and determines that judgmental valuation adjustments, when applied, are based upon established policies and are applied consistently over time. This committee also provides oversight of the selection of independent third party pricing providers and the controls and procedures to evaluate third party pricing. Periodically, the Chief Accounting Officer reports to MetLife Insurance Company of Connecticut's Audit Committee regarding compliance with fair value accounting standards. The Company reviews its valuation methodologies on an ongoing basis and revises those methodologies when necessary based on changing market conditions. Assurance is gained on the overall reasonableness and consistent application of input assumptions, valuation methodologies and compliance with fair value accounting standards through controls designed to ensure valuations represent an exit price. Several controls are utilized, including certain monthly controls, which include, but are not limited to, analysis of portfolio returns to corresponding benchmark returns, comparing a sample of executed prices of securities sold to the fair value estimates, comparing fair value estimates to management's knowledge of the current market, reviewing the bid/ask spreads to assess activity, comparing prices from multiple independent pricing services and ongoing due diligence to confirm that independent pricing services use market-based parameters. The process includes a determination of the observability of inputs used in estimated fair values received from independent pricing services or brokers by assessing whether these inputs can be corroborated by observable market data. The Company ensures that prices received from independent brokers, also referred to herein as "consensus pricing," represent a reasonable estimate of fair value by considering such pricing relative to the Company's knowledge of the current market dynamics and current pricing for similar financial instruments. While independent non-binding broker quotations are utilized, they are not used for a significant portion of the portfolio. For example, fixed maturity securities priced using independent non-binding broker quotations represent less than 1% of the total estimated fair value of fixed maturity securities and 9% of the total estimated fair value of Level 3 fixed maturity securities. The Company also applies a formal process to challenge any prices received from independent pricing services that are not considered representative of estimated fair value. If prices received from independent pricing services are not considered reflective of market activity or representative of estimated fair value, 73 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) independent non-binding broker quotations are obtained, or an internally developed valuation is prepared. Internally developed valuations of current estimated fair value, which reflect internal estimates of liquidity and nonperformance risks, compared with pricing received from the independent pricing services, did not produce material differences in the estimated fair values for the majority of the portfolio; accordingly, overrides were not material. This is, in part, because internal estimates of liquidity and nonperformance risks are generally based on available market evidence and estimates used by other market participants. In the absence of such market-based evidence, management's best estimate is used. Securities and Short-term Investments When available, the estimated fair value of these financial instruments is 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's judgment. When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, giving priority to observable inputs. 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. When observable inputs are not available, the market standard valuation methodologies 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's judgment or estimation and cannot be supported by reference to market activity. Even though these inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances. Level 2 Valuation Techniques and Key Inputs: This level includes 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 fixed maturity securities and equity securities. U.S. corporate and foreign corporate securities These securities are principally valued using the market and income approaches. Valuations are 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 benchmark yields, spreads off benchmark yields, new issuances, issuer rating, duration, and trades of identical or comparable securities. Privately-placed securities are valued using matrix pricing 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, and in certain cases, delta spread adjustments to reflect specific credit-related issues. 74 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) U.S. Treasury and agency securities These securities are principally valued using the market approach. Valuations are 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 a benchmark U.S. Treasury yield curve, the spread off the U.S. Treasury yield curve for the identical security and comparable securities that are actively traded. Structured securities comprised of RMBS, ABS and CMBS These securities are principally valued using the market and income approaches. Valuations are based primarily on matrix pricing, discounted cash flow methodologies 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. State and political subdivision and foreign government securities These securities are principally valued using the market approach. Valuations are based primarily on matrix pricing or other similar techniques using standard market observable inputs, including a benchmark U.S. Treasury yield 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. Non-redeemable preferred and common stock These securities are principally valued using the market approach. Valuations are based principally on observable inputs including quoted prices in markets that are not considered active. Level 3 Valuation Techniques and Key Inputs: In general, securities classified within Level 3 use many of the same valuation techniques and inputs as described previously for Level 2. 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 a lack of transparency in the process to develop the valuation estimates, generally causing these investments to be classified in Level 3. 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 approach. Valuations are based primarily on matrix pricing or other similar techniques that utilize unobservable inputs or inputs that cannot be derived principally from, or corroborated by, observable market data, including illiquidity premium, delta spread 75 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) adjustments to reflect specific credit-related issues, credit spreads; and 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. Certain valuations are based on independent non-binding broker quotations. Structured securities comprised of RMBS, ABS and CMBS These securities are principally valued using the market and income approaches. Valuations are based primarily on matrix pricing, discounted cash flow methodologies or other similar techniques that utilize inputs that are unobservable or cannot be derived principally from, or corroborated by, observable market data, including credit spreads. Below investment grade securities and sub-prime RMBS 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. Certain of these valuations are based on independent non-binding broker quotations. Foreign government securities These securities are principally valued using the market approach. Valuations are based primarily on independent non-binding broker quotations and 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. Certain valuations are based on matrix pricing that utilize inputs that are unobservable or cannot be derived principally from, or corroborated by, observable market data, including credit spreads. 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, discounted cash flow methodologies or other similar techniques using inputs such as comparable credit rating and issuance structure. Certain of these securities 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 independent non-binding broker quotations. 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. Separate account assets include: mutual funds, fixed maturity securities, equity securities, derivatives, short-term investments and cash and cash equivalents. Level 2 Valuation Techniques and Key Inputs: These assets are comprised of investments that are similar in nature to the instruments described under "-- Securities and Short-term Investments." Also included are certain mutual funds without readily determinable fair values, as prices are not published publicly. Valuation of the mutual funds is based upon quoted prices or reported NAV provided by the fund managers. 76 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) 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 OTC-bilateral and OTC-cleared derivatives. The determination of estimated fair value, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing such instruments. Derivative valuations can be affected by changes in interest rates, foreign currency exchange rates, financial indices, credit spreads, default risk, nonperformance risk, volatility, liquidity and changes in estimates and assumptions used in the pricing models. The valuation controls and procedures for derivatives are described in "-- Investments." The significant inputs to the pricing models for most OTC-bilateral and OTC-cleared 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 OTC-bilateral and OTC-cleared 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 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 involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and management believes they are consistent with what other market participants would use when pricing such instruments. Most inputs for OTC-bilateral and OTC-cleared derivatives are mid-market inputs but, in certain cases, liquidity adjustments are made 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. The credit risk of both the counterparty and the Company are considered in determining the estimated fair value for all OTC-bilateral and OTC-cleared 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 OTC-bilateral and OTC-cleared derivatives using standard swap curves which may include a spread to the risk free rate, depending upon specific collateral arrangements. This credit spread is appropriate for those parties that execute trades at pricing levels consistent with similar collateral arrangements. As the Company and its significant derivative counterparties generally execute trades at such pricing levels and hold sufficient collateral, 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. An evaluation of the requirement to make additional credit risk adjustments is performed by the Company each reporting period. 77 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) Freestanding Derivatives Level 2 Valuation Techniques and Key Inputs: This level includes all types of derivatives utilized by the Company with the exception of exchange-traded derivatives included within Level 1 and those derivatives with unobservable inputs as described in Level 3. These derivatives are principally valued using the income approach. Interest rate Non-option-based. Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve and basis curves. Option-based. Valuations are based on option pricing models, which utilize significant inputs that may include the swap yield curve, basis curves and interest rate volatility. Foreign currency exchange rate Non-option-based. Valuations are based on present value techniques, which utilize significant inputs that may include the swap yield curve, basis curves, currency spot rates and cross currency basis curves. Credit 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. Level 3 Valuation Techniques and Key Inputs: These derivatives are principally valued using the 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 Non-option-based. Significant unobservable inputs may include the extrapolation beyond observable limits of the swap yield curve and basis curves. Credit Non-option-based. Significant unobservable inputs may include credit spreads, repurchase rates and the extrapolation beyond observable limits of the swap yield curve and credit curves. 78 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) Embedded Derivatives 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 at estimated fair value with changes in estimated fair value reported in net income. The Company issues certain variable annuity products with guaranteed minimum benefits. GMWBs, GMABs and certain GMIBs contain 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 PABs in the consolidated balance sheets. The fair value of these embedded derivatives, estimated as the present value of projected future benefits minus the present value of projected future fees using actuarial and capital market assumptions including expectations concerning policyholder behavior, is calculated by the Company's actuarial department. The calculation is based on in-force business, and is performed using standard actuarial valuation software which projects future cash flows from the embedded derivative over multiple risk neutral stochastic scenarios using observable risk free rates. Capital market assumptions, such as risk free rates and implied volatilities, are based on market prices for publicly traded instruments to the extent that prices for such instruments are observable. Implied volatilities beyond the observable period are extrapolated based on observable implied volatilities and historical volatilities. Actuarial assumptions, including mortality, lapse, withdrawal and utilization, are unobservable and are reviewed at least annually based on actuarial studies of historical experience. The valuation of these guarantee liabilities includes nonperformance risk adjustments and adjustments for a risk margin related to 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, including assumptions of the 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, to an affiliated reinsurance company, the risk associated with certain of the GMIBs, GMABs and GMWBs described above 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 79 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) cedes, to the same affiliated reinsurance company, certain directly written GMIBs that are accounted for as insurance (i.e., not as embedded derivatives), but where the reinsurance agreement contains an embedded derivative. These embedded derivatives are included within 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 the ceded risk is determined using a methodology consistent with that described previously for the guarantees directly written by the Company with the exception of the input for nonperformance risk that reflects the credit of the reinsurer. 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 previously described in "-- Investments -- 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. Embedded Derivatives Within Asset and Liability Host Contracts Level 3 Valuation Techniques and Key Inputs: Direct guaranteed minimum benefits These embedded derivatives are principally valued using the 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 benefits These embedded derivatives are principally valued using the income approach. The valuation techniques and significant market standard unobservable inputs used in their valuation are similar to those described above in "-- Direct Guaranteed Minimum Benefits" and also include counterparty credit spreads. Transfers between Levels Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period. 80 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) Transfers between Levels 1 and 2: There were no transfers between Levels 1 and 2 for assets and liabilities measured at estimated fair value and still held at December 31, 2013 and 2012. Transfers into or out of Level 3: 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 Level 3 for fixed maturity securities were due primarily to a lack of trading activity, decreased liquidity and credit ratings downgrades (e.g., from investment grade to below investment grade) which have resulted in decreased transparency of valuations and an increased use of independent non-binding broker quotations and unobservable inputs, such as illiquidity premiums, delta spread adjustments, or credit spreads. Transfers out of Level 3 for fixed maturity securities 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 obtain pricing from, or corroborate pricing received from, independent pricing services with observable inputs (such as observable spreads used in pricing securities) or increases in market activity and upgraded credit ratings. 81 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) The following table presents certain quantitative information about the significant unobservable inputs used in the fair value measurement, and the sensitivity of the estimated fair value to changes in those inputs, for the more significant asset and liability classes measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at:
December 31, 2013 --------------------------- Valuation Significant Weighted Techniques Unobservable Inputs Range Average (1) ----------------------- --------------------------- -------------- ----------- Fixed maturity securities: (3) U.S. corporate and . Matrix pricing . Delta spread (10) - 240 23 foreign corporate adjustments (4) . Illiquidity premium (4) 30 - 30 30 . Credit spreads (4) (40) - 482 212 . Offered quotes (5) 99 - 99 99 . Consensus pricing . Offered quotes (5) ------------------------------------------------------------------------------------ RMBS . Matrix pricing and . Credit spreads (4) 97 - 1,225 385 discounted cash flow . Market pricing . Quoted prices (5) 93 - 100 93 . Consensus pricing . Offered quotes (5) 100 - 100 100 ------------------------------------------------------------------------------------ CMBS . Matrix pricing and . Credit spreads (4) 500 - 500 500 discounted cash flow . Market pricing . Quoted prices (5) 100 - 104 101 ------------------------------------------------------------------------------------ ABS . Matrix pricing and . Credit spreads (4) discounted cash flow . Market pricing . Quoted prices (5) 100 - 104 101 . Consensus pricing . Offered quotes (5) 77 - 106 99 ------------------------------------------------------------------------------------ Derivatives: Interest rate . Present value . Swap yield (7) 401 - 450 techniques ------------------------------------------------------------------------------------ Credit . Present value . Credit spreads (8) 99 - 100 techniques ------------------------------------------------------------------------------------ Embedded derivatives: Direct and ceded . Option pricing . Mortality rates: guaranteed techniques Ages 0 - 40 0% - 0.10% minimum benefits Ages 41 - 60 0.04% - 0.65% Ages 61 -115 0.26% - 100% . Lapse rates: Durations 1 -10 0.50% - 100% Durations 11 -20 3% - 100% Durations 21 -116 3% - 100% . Utilization rates 20% - 50% . Withdrawal rates 0.07% - 10% . Long-term equity 17.40% - 25% volatilities . Nonperformance 0.03% - 1.32% risk spread ------------------------------------------------------------------------------------
December 31, 2012 Impact of --------------------------- Increase in Input Valuation Significant Weighted on Estimated Techniques Unobservable Inputs Range Average (1) Fair Value (2) ----------------------- --------------------------- -------------- ----------- ----------------- Fixed maturity securities: (3) U.S. corporate and . Matrix pricing . Delta spread 9 - 240 60 Decrease foreign corporate adjustments (4) . Illiquidity premium (4) 30 - 30 30 Decrease . Credit spreads (4) 23 - 653 163 Decrease . Offered quotes (5) Increase . Consensus pricing . Offered quotes (5) 68 - 103 90 Increase ------------------------------------------------------------------------------------------------------ RMBS . Matrix pricing and . Credit spreads (4) 100 - 1,213 610 Decrease (6) discounted cash flow . Market pricing . Quoted prices (5) 100 - 100 100 Increase (6) . Consensus pricing . Offered quotes (5) Increase (6) ------------------------------------------------------------------------------------------------------ CMBS . Matrix pricing and . Credit spreads (4) 100 - 1,250 1,250 Decrease (6) discounted cash flow . Market pricing . Quoted prices (5) 100 - 104 104 Increase (6) ------------------------------------------------------------------------------------------------------ ABS . Matrix pricing and . Credit spreads (4) 101 - 102 101 Decrease (6) discounted cash flow . Market pricing . Quoted prices (5) 100 - 101 100 Increase (6) . Consensus pricing . Offered quotes (5) 111 - 111 111 Increase (6) ------------------------------------------------------------------------------------------------------ Derivatives: Interest rate . Present value . Swap yield (7) 296 - 340 Increase (9) techniques ------------------------------------------------------------------------------------------------------ Credit . Present value . Credit spreads (8) 100 - 100 Decrease (8) techniques ------------------------------------------------------------------------------------------------------ Embedded derivatives: Direct and ceded . Option pricing . Mortality rates: guaranteed techniques Ages 0 - 40 0% - 0.10% Decrease (10) minimum benefits Ages 41 - 60 0.05% - 0.64% Decrease (10) Ages 61 -115 0.32% - 100% Decrease (10) . Lapse rates: Durations 1 -10 0.50% - 100% Decrease (11) Durations 11 -20 3% - 100% Decrease (11) Durations 21 -116 3% - 100% Decrease (11) . Utilization rates 20% - 50% Increase (12) . Withdrawal rates 0.07% - 10% (13) . Long-term equity 17.40% - 25% Increase (14) volatilities . Nonperformance 0.10% - 0.67% Decrease (15) risk spread ------------------------------------------------------------------------------------------------------
-------- (1)The weighted average for fixed maturity securities is determined based on the estimated fair value of the securities. (2)The impact of a decrease in input would have the opposite impact on the estimated fair value. For embedded derivatives, changes to direct guaranteed minimum benefits are based on liability positions and changes to ceded guaranteed minimum benefits are based on asset positions. 82 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) (3)Significant increases (decreases) in expected default rates in isolation would result in substantially lower (higher) valuations. (4)Range and weighted average are presented in basis points. (5)Range and weighted average are presented in accordance with the market convention for fixed maturity securities of dollars per hundred dollars of par. (6)Changes in the assumptions used for the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumptions used for prepayment rates. (7)Ranges represent the rates across different yield curves and are presented in basis points. The swap yield curve is utilized among different types of derivatives to project cash flows, as well as to discount future cash flows to present value. Since this valuation methodology uses a range of inputs across a yield curve to value the derivative, presenting a range is more representative of the unobservable input used in the valuation. (8)Represents the risk quoted in basis points of a credit default event on the underlying instrument. The range being provided is a single quoted spread in the valuation model. Credit derivatives with significant unobservable inputs are primarily comprised of written credit default swaps. (9)Changes are based on long U.S. dollar net asset positions and will be inversely impacted for short U.S. dollar net asset positions. (10)Mortality rates vary by age and by demographic characteristics such as gender. Mortality rate assumptions are based on company experience. A mortality improvement assumption is also applied. For any given contract, mortality rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (11)Base lapse rates are adjusted at the contract level based on a comparison of the actuarially calculated guaranteed values and the current policyholder account value, as well as other factors, such as the applicability of any surrender charges. A dynamic lapse function reduces the base lapse rate when the guaranteed amount is greater than the account value as in the money contracts are less likely to lapse. Lapse rates are also generally assumed to be lower in periods when a surrender charge applies. For any given contract, lapse rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (12)The utilization rate assumption estimates the percentage of contract holders with a GMIB or lifetime withdrawal benefit who will elect to utilize the benefit upon becoming eligible. The rates may vary by the type of guarantee, the amount by which the guaranteed amount is greater than the account value, the contract's withdrawal history and by the age of the policyholder. For any given contract, utilization rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (13)The withdrawal rate represents the percentage of account balance that any given policyholder will elect to withdraw from the contract each year. The withdrawal rate assumption varies by age and duration of the contract, and also by other factors such as benefit type. For any given contract, withdrawal rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. For GMWBs, any increase (decrease) in withdrawal rates results in an increase (decrease) in the estimated fair value of the guarantees. For GMABs and GMIBs, any increase (decrease) in withdrawal rates results in a decrease (increase) in the estimated fair value. 83 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) (14)Long-term equity volatilities represent equity volatility beyond the period for which observable equity volatilities are available. For any given contract, long-term equity volatility rates vary throughout the period over which cash flows are projected for purposes of valuing the embedded derivative. (15)Nonperformance risk spread varies by duration and by currency. For any given contract, multiple nonperformance risk spreads will apply, depending on the duration of the cash flow being discounted for purposes of valuing the embedded derivative. The following is a summary of the valuation techniques and significant unobservable inputs used in the fair value measurement of assets and liabilities classified within Level 3 that are not included in the preceding table. Generally, all other classes of securities classified within Level 3, including those within separate account assets and embedded derivatives within funds withheld related to certain ceded reinsurance, use the same valuation techniques and significant unobservable inputs as previously described for Level 3 securities. This includes matrix pricing and discounted cash flow methodologies, inputs such as 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, as well as independent non-binding broker quotations. The sensitivity of the estimated fair value to changes in the significant unobservable inputs for these other assets and liabilities is similar in nature to that described in the preceding table. The valuation techniques and significant unobservable inputs used in the fair value measurement for the more significant assets measured at estimated fair value on a nonrecurring basis and determined using significant unobservable inputs (Level 3) are summarized in "-- Nonrecurring Fair Value Measurements." 84 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) The following tables summarize the change of all assets and (liabilities) measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3):
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ----------------------------------------------------------------------- Fixed Maturity Securities: ----------------------------------------------------------------------- U.S. Foreign Foreign Corporate Corporate RMBS ABS CMBS Government --------- --------- ------ ----- ----- ---------- (In millions) Year Ended December 31, 2013: Balance at January 1,......................... $ 233 $ 306 $ 48 $ 72 $ 11 $ 2 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2).................. Net investment income...................... (1) -- -- 1 -- -- Net investment gains (losses).............. -- (3) -- -- -- -- Net derivative gains (losses).............. -- -- -- -- -- -- OCI.......................................... (9) 6 3 (2) -- -- Purchases (3)................................. 36 38 72 46 27 -- Sales (3)..................................... (19) (28) (3) (9) (3) (2) Issuances (3)................................. -- -- -- -- -- -- Settlements (3)............................... -- -- -- -- -- -- Transfers into Level 3 (4).................... 26 11 1 -- -- -- Transfers out of Level 3 (4).................. (92) (22) (4) (13) -- -- ------ ------ ------ ----- ----- ------- Balance at December 31,....................... $ 174 $ 308 $ 117 $ 95 $ 35 $ -- ====== ====== ====== ===== ===== ======= Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income........................ $ (1) $ -- $ -- $ 1 $ -- $ -- Net investment gains (losses)................ $ -- $ -- $ -- $ -- $ -- $ -- Net derivative gains (losses)................ $ -- $ -- $ -- $ -- $ -- $ --
85 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ----------------------------------------------------------------------- Equity Securities: Net Derivatives: (6) ------------------ ------------------- Non- redeemable Net Preferred Short-term Interest Embedded Stock Investments Rate Credit Derivatives (7) ------------------ ----------- -------- ------ --------------- (In millions) Year Ended December 31, 2013: Balance at January 1,......................... $ 1 $ -- $ 53 $ 1 $ 2,679 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2).................. Net investment income...................... -- -- -- -- -- Net investment gains (losses).............. -- -- -- -- -- Net derivative gains (losses).............. -- -- (3) (1) (932) OCI.......................................... -- -- (34) -- -- Purchases (3)................................. -- -- -- -- -- Sales (3)..................................... (1) -- -- -- -- Issuances (3)................................. -- -- -- -- -- Settlements (3)............................... -- -- (13) -- 109 Transfers into Level 3 (4).................... -- -- -- -- -- Transfers out of Level 3 (4).................. -- -- -- -- -- --------- ------- ----- ----- ---------- Balance at December 31,....................... $ -- $ -- $ 3 $ -- $ 1,856 ========= ======= ===== ===== ========== Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income........................ $ -- $ -- $ -- $ -- $ -- Net investment gains (losses)................ $ -- $ -- $ -- $ -- $ -- Net derivative gains (losses)................ $ -- $ -- $ -- $ -- $ (900)
86 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ----------------------------------------------------------------------- Fixed Maturity Securities: ----------------------------------------------------------------------- U.S. Foreign Foreign Corporate Corporate RMBS ABS CMBS Government --------- --------- ----- ----- ----- ---------- (In millions) Year Ended December 31, 2012: Balance at January 1,............................ $ 141 $ 144 $ 33 $ 55 $ 12 $ 2 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2)..................... Net investment income......................... -- -- -- -- -- -- Net investment gains (losses)................. -- -- -- -- -- -- Net derivative gains (losses)................. -- -- -- -- -- -- OCI............................................. 9 16 3 2 -- -- Purchases (3).................................... 75 121 19 26 -- -- Sales (3)........................................ (11) (1) (7) (6) (11) -- Issuances (3).................................... -- -- -- -- -- -- Settlements (3).................................. -- -- -- -- -- -- Transfers into Level 3 (4)....................... 27 26 -- -- 10 -- Transfers out of Level 3 (4)..................... (8) -- -- (5) -- -- ------ ------ ----- ----- ----- ------- Balance at December 31,.......................... $ 233 $ 306 $ 48 $ 72 $ 11 $ 2 ====== ====== ===== ===== ===== ======= Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income........................... $ -- $ -- $ -- $ -- $ -- $ -- Net investment gains (losses)................... $ -- $ -- $ -- $ -- $ -- $ -- Net derivative gains (losses)................... $ -- $ -- $ -- $ -- $ -- $ --
87 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ----------------------------------------------------------------------- Equity Securities: Net Derivatives: (6) ------------------ ------------------- Non- redeemable Net Preferred Short-term Interest Embedded Stock Investments Rate Credit Derivatives (7) ------------------ ----------- -------- ------ --------------- (In millions) Year Ended December 31, 2012: Balance at January 1,......................... $ 1 $ -- $ 87 $ 1 $ 1,463 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2).................. Net investment income...................... -- -- -- -- -- Net investment gains (losses).............. -- -- -- -- -- Net derivative gains (losses).............. -- -- 2 -- 1,097 OCI.......................................... -- -- (1) -- -- Purchases (3)................................. -- -- -- -- -- Sales (3)..................................... -- -- -- -- -- Issuances (3)................................. -- -- -- -- -- Settlements (3)............................... -- -- (35) -- 119 Transfers into Level 3 (4).................... -- -- -- -- -- Transfers out of Level 3 (4).................. -- -- -- -- -- -------- ------- ----- ----- -------- Balance at December 31,....................... $ 1 $ -- $ 53 $ 1 $ 2,679 ======== ======= ===== ===== ======== Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income........................ $ -- $ -- $ -- $ -- $ -- Net investment gains (losses)................ $ -- $ -- $ -- $ -- $ -- Net derivative gains (losses)................ $ -- $ -- $ -- $ -- $ 1,114
88 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ----------------------------------------------------------------------- Fixed Maturity Securities: ----------------------------------------------------------------------- U.S. Foreign Foreign Corporate Corporate RMBS ABS CMBS Government --------- --------- ----- ----- ----- ---------- (In millions) Year Ended December 31, 2011: Balance at January 1,............................ $ 162 $ 91 $ 41 $ 55 $ 7 $ 4 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2)..................... Net investment income......................... -- -- -- -- -- -- Net investment gains (losses)................. -- -- -- -- 1 -- Net derivative gains (losses)................. -- -- -- -- -- -- OCI............................................. 11 (3) -- 1 -- -- Purchases (3).................................... 34 70 10 49 7 -- Sales (3)........................................ (7) (15) (8) (9) (3) (2) Issuances (3).................................... -- -- -- -- -- -- Settlements (3).................................. -- -- -- -- -- -- Transfers into Level 3 (4)....................... -- 3 -- -- -- -- Transfers out of Level 3 (4)..................... (59) (2) (10) (41) -- -- ------ ------ ----- ----- ----- ------- Balance at December 31,.......................... $ 141 $ 144 $ 33 $ 55 $ 12 $ 2 ====== ====== ===== ===== ===== ======= Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income........................... $ -- $ -- $ -- $ -- $ -- $ -- Net investment gains (losses)................... $ -- $ -- $ -- $ -- $ -- $ -- Net derivative gains (losses)................... $ -- $ -- $ -- $ -- $ -- $ --
89 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued)
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) ----------------------------------------------------------------------- Equity Securities: Net Derivatives: (6) ------------------ ------------------- Non- redeemable Net Preferred Short-term Interest Embedded Stock Investments Rate Credit Derivatives (7) ------------------ ----------- -------- ------ --------------- (In millions) Year Ended December 31, 2011: Balance at January 1,......................... $ 1 $ 6 $(48) $ 1 $ 786 Total realized/unrealized gains (losses) included in: Net income (loss): (1), (2).................. Net investment income...................... -- -- -- -- -- Net investment gains (losses).............. (1) -- -- -- -- Net derivative gains (losses).............. -- -- 9 -- 534 OCI.......................................... 1 -- 135 -- -- Purchases (3)................................. -- -- -- -- -- Sales (3)..................................... -- (6) -- -- -- Issuances (3)................................. -- -- -- -- -- Settlements (3)............................... -- -- (9) -- 143 Transfers into Level 3 (4).................... -- -- -- -- -- Transfers out of Level 3 (4).................. -- -- -- -- -- -------- ------- ----- ----- -------- Balance at December 31,....................... $ 1 $ -- $ 87 $ 1 $ 1,463 ======== ======= ===== ===== ======== Changes in unrealized gains (losses) included in net income (loss): (5) Net investment income........................ $ -- $ -- $ -- $ -- $ -- Net investment gains (losses)................ $ (1) $ -- $ -- $ -- $ -- Net derivative gains (losses)................ $ -- $ -- $ -- $ -- $ 544
-------- (1)Amortization of premium/accretion of discount is included within net investment income. Impairments charged to net income (loss) on securities are included in net investment gains (losses). Lapses associated with net embedded derivatives are included in net derivative gains (losses). (2)Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. (3)Items purchased/issued and then sold/settled in the same period are excluded from the rollforward. Fees attributed to embedded derivatives are included in settlements. (4)Gains and losses, in net income (loss) and OCI, are calculated assuming transfers into and/or out of Level 3 occurred at the beginning of the period. Items transferred into and then out of Level 3 in the same period are excluded from the rollforward. (5)Changes in unrealized gains (losses) included in net income (loss) relate to assets and liabilities still held at the end of the respective periods. (6)Freestanding derivative assets and liabilities are presented net for purposes of the rollforward. (7)Embedded derivative assets and liabilities are presented net for purposes of the rollforward. 90 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) Fair Value of Financial Instruments Carried at Other Than Fair Value The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude the following financial instruments: cash and cash equivalents, accrued investment income, payables for collateral under securities loaned and other transactions and those short-term investments that are not securities, such as time deposits, and therefore are not included in the three level hierarchy table disclosed in the "-- Recurring Fair Value Measurements" section. The estimated fair value of the excluded financial instruments, which are primarily classified in Level 2 and, to a lesser extent, in Level 1, approximates carrying value as they are short-term in nature such that the Company believes there is minimal risk of material changes in interest rates or credit quality. All remaining balance sheet amounts excluded from the table below are not considered financial instruments subject to this disclosure. The carrying values and estimated fair values for such financial instruments, and their corresponding placement in the fair value hierarchy, are summarized as follows at:
December 31, 2013 -------------------------------------------------- Fair Value Hierarchy ----------------------------- Total Carrying Estimated Value Level 1 Level 2 Level 3 Fair Value -------- --------- --------- --------- ----------- (In millions) Assets Mortgage loans.............................. $ 1,826 $ -- $ -- $ 1,940 $ 1,940 Policy loans................................ $ 151 $ -- $ 114 $ 39 $ 153 Real estate joint ventures.................. $ 8 $ -- $ -- $ 10 $ 10 Other limited partnership interests......... $ 11 $ -- $ -- $ 13 $ 13 Other invested assets....................... $ 250 $ -- $ 270 $ -- $ 270 Premiums, reinsurance and other receivables. $ 5,337 $ -- $ -- $ 5,744 $ 5,744 Liabilities PABs........................................ $ 6,203 $ -- $ -- $ 6,576 $ 6,576 Long-term debt.............................. $ 40 $ -- $ 46 $ -- $ 46 Other liabilities........................... $ 191 $ -- $ 30 $ 161 $ 191 Separate account liabilities................ $ 1,196 $ -- $ 1,196 $ -- $ 1,196
December 31, 2012 -------------------------------------------------- Fair Value Hierarchy ----------------------------- Total Carrying Estimated Value Level 1 Level 2 Level 3 Fair Value -------- --------- --------- --------- ----------- (In millions) Assets Mortgage loans.............................. $ 1,678 $ -- $ -- $ 1,855 $ 1,855 Policy loans................................ $ 130 $ -- $ 95 $ 38 $ 133 Real estate joint ventures.................. $ 7 $ -- $ -- $ 9 $ 9 Other limited partnership interests......... $ 12 $ -- $ -- $ 13 $ 13 Other invested assets....................... $ 126 $ -- $ 161 $ -- $ 161 Premiums, reinsurance and other receivables. $ 5,387 $ -- $ 2 $ 6,195 $ 6,197 Liabilities PABs........................................ $ 7,497 $ -- $ -- $ 8,237 $ 8,237 Long-term debt.............................. $ 41 $ -- $ 41 $ -- $ 41 Other liabilities........................... $ 169 $ -- $ 13 $ 156 $ 169 Separate account liabilities................ $ 1,030 $ -- $ 1,030 $ -- $ 1,030
91 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) The methods, assumptions and significant valuation techniques and inputs used to estimate the fair value of financial instruments are summarized as follows: Mortgage Loans For mortgage loans, estimated fair value is primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar mortgage loans with similar credit risk, or is determined from pricing for similar loans. Policy Loans Policy loans with fixed interest rates are classified within Level 3. The estimated fair values for these loans 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 by 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. Policy loans with variable interest rates are classified within Level 2 and the estimated fair value 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 The estimated fair values of these cost method investments 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. Other Invested Assets These other invested assets are principally comprised of loans to affiliates. The estimated fair value of loans to affiliates is determined by discounting the expected future cash flows using market interest rates currently available for instruments with similar terms and remaining maturities. Premiums, Reinsurance and Other Receivables Premiums, reinsurance and other receivables are principally comprised of certain amounts recoverable under reinsurance agreements, which the Company has determined do not transfer significant risk such that they are accounted for using the deposit method of accounting, have been classified as Level 3. The valuation is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using interest rates determined to reflect the appropriate credit standing of the assuming counterparty. 92 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 7. Fair Value (continued) PABs These PABs include investment contracts. Embedded derivatives on investment contracts and certain variable annuity guarantees accounted for as embedded derivatives are excluded from this caption in the preceding tables as they are separately presented in "-- Recurring Fair Value Measurements." The investment contracts primarily include fixed deferred annuities, fixed term payout annuities and total control accounts. The valuation of these investment contracts is based on discounted cash flow methodologies using significant unobservable inputs. The estimated fair value is determined using current market risk-free interest rates adding a spread to reflect the nonperformance risk in the liability. Long-term Debt The Company evaluates the specific terms, facts and circumstances of long-term debt to determine the appropriate estimated fair values, which are not materially different from the carrying values. Other Liabilities Other liabilities consist primarily of amounts due for securities purchased but not yet settled and funds withheld amounts payable, which are contractually withheld by the Company in accordance with the terms of the reinsurance agreements. The Company evaluates the specific terms, facts and circumstances of each instrument to determine the appropriate estimated fair values, which are not materially different from the carrying values. Separate Account Liabilities Separate account liabilities represent those balances due to policyholders under contracts that are classified as investment contracts. 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. 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 value of those assets approximates the estimated fair value of the related separate account liabilities. The valuation techniques and inputs for separate account liabilities are similar to those described for separate account assets. 8. Long-term Debt The Company's long-term debt includes senior notes, issued to a third party, maturing in 2030 with a fixed interest rate of 7.03%. Principal and interest on the notes is paid quarterly. The outstanding balance of the notes was $40 million and $41 million at December 31, 2013 and 2012, respectively. The aggregate maturities of long-term debt at December 31, 2013 are $1 million in each of 2014, 2015, 2016 and 2017, $2 million in 2018 and $34 million thereafter. 93 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 8. Long-term Debt (continued) Interest expense related to the Company's indebtedness included in other expenses was $3 million for each of the years ended December 31, 2013, 2012 and 2011. 9. Equity Statutory Equity and Income Each U.S. insurance company's state of domicile imposes risk-based capital ("RBC") requirements that were developed by the National Association of Insurance Commissioners ("NAIC"). Regulatory compliance is determined by a ratio of a company's total adjusted capital, calculated in the manner prescribed by the NAIC ("TAC") to its authorized control level RBC, calculated in the manner prescribed by the NAIC ("ACL RBC"). Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. The minimum level of TAC before corrective action commences is twice ACL RBC. The RBC ratio for MLI-USA was in excess of 600% for all periods presented. MLI-USA prepares statutory-basis financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile. 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. 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 of reinsurance agreements 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 $209 million, $84 million and $178 million for the years ended December 31, 2013, 2012 and 2011, respectively. Statutory capital and surplus was $1.9 billion and $1.7 billion at December 31, 2013 and 2012, respectively. All such amounts are derived from the statutory-basis financial statements as filed with the Delaware Department of Insurance. 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 net statutory 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 of Insurance (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 94 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 9. Equity (continued) "unassigned funds (surplus)") as of the immediately preceding calendar year requires insurance regulatory approval. Under Delaware State Insurance Law, the Delaware Commissioner has broad discretion in determining whether the financial condition of a stock life insurance company would support the payment of such dividends to its stockholders. During the years ended December 31, 2013, 2012 and 2011, MLI-USA did not pay dividends to MICC. Because MLI-USA's statutory unassigned funds (surplus) were negative at December 31, 2013, MLI-USA cannot pay any dividends in 2014 without prior regulatory approval. Accumulated Other Comprehensive Income (Loss) Information regarding changes in the balances of each component of AOCI, net of income tax, was as follows:
Unrealized Foreign Investment Gains Unrealized Currency (Losses), Net of Gains (Losses) Translation Related Offsets (1) on Derivatives Adjustments Total ------------------- -------------- ----------- -------- (In millions) Balance at December 31, 2010..................... $ 158 $ (48) $ -- $ 110 OCI before reclassifications..................... 695 208 (1) 902 Income tax expense (benefit)..................... (243) (73) -- (316) ------------------- -------------- ---------- -------- OCI before reclassifications, net of income tax. 610 87 (1) 696 Amounts reclassified from AOCI................... 2 (9) -- (7) Income tax expense (benefit)..................... (1) 4 -- 3 ------------------- -------------- ---------- -------- Amounts reclassified from AOCI, net of income tax........................................... 1 (5) -- (4) ------------------- -------------- ---------- -------- Balance at December 31, 2011..................... 611 82 (1) 692 OCI before reclassifications..................... 357 17 (1) 373 Income tax expense (benefit)..................... (124) (6) -- (130) ------------------- -------------- ---------- -------- OCI before reclassifications, net of income tax. 844 93 (2) 935 Amounts reclassified from AOCI................... (26) (1) -- (27) Income tax expense (benefit)..................... 9 -- -- 9 ------------------- -------------- ---------- -------- Amounts reclassified from AOCI, net of income tax........................................... (17) (1) -- (18) ------------------- -------------- ---------- -------- Balance at December 31, 2012..................... 827 92 (2) 917 OCI before reclassifications..................... (843) (132) 2 (973) Income tax expense (benefit)..................... 295 46 (1) 340 ------------------- -------------- ---------- -------- OCI before reclassifications, net of income tax. 279 6 (1) 284 Amounts reclassified from AOCI................... (9) (6) -- (15) Income tax expense (benefit)..................... 3 2 -- 5 ------------------- -------------- ---------- -------- Amounts reclassified from AOCI, net of income tax........................................... (6) (4) -- (10) ------------------- -------------- ---------- -------- Balance at December 31, 2013..................... $ 273 $ 2 $ (1) $ 274 =================== ============== ========== ========
-------- (1)See Note 5 for information on offsets to investments related to insurance liabilities and DAC. 95 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 9. Equity (continued) Information regarding amounts reclassified out of each component of AOCI, was as follows:
Statement of Operations and AOCI Components Amounts Reclassified from AOCI Comprehensive Income (Loss) Location ----------------------------------------------------- ---------------------------- ------------------------------------ Years Ended December 31, ---------------------------- 2013 2012 2011 --------- --------- -------- (In millions) Net unrealized investment gains (losses): Net unrealized investment gains (losses)............ $ 1 $ 22 $ (7) Other net investment gains (losses) Net unrealized investment gains (losses)............ 7 2 5 Net investment income Net unrealized investment gains (losses)............ 1 -- 2 Net derivative gains (losses) OTTI................................................ -- 2 (2) OTTI on fixed maturity securities --------- --------- -------- Net unrealized investment gains (losses), before income tax................................. 9 26 (2) Income tax (expense) benefit....................... (3) (9) 1 --------- --------- -------- Net unrealized investment gains (losses), net of income tax........................................ $ 6 $ 17 $ (1) ========= ========= ======== Unrealized gains (losses) on derivatives - cash flow hedges: Interest rate swaps................................. $ -- $ -- $ 1 Net derivative gains (losses) Interest rate forwards.............................. 6 1 9 Net derivative gains (losses) Interest rate forwards.............................. 1 -- -- Net investment income Foreign currency swaps.............................. (1) -- (1) Net derivative gains (losses) --------- --------- -------- Gains (losses) on cash flow hedges, before income tax........................................ 6 1 9 Income tax (expense) benefit....................... (2) -- (4) --------- --------- -------- Gains (losses) on cash flow hedges, net of income tax........................................ $ 4 $ 1 $ 5 ========= ========= ======== Total reclassifications, net of income tax............ $ 10 $ 18 $ 4 ========= ========= ========
96 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 10. Other Expenses Information on other expenses was as follows:
Years Ended December 31, ----------------------------- 2013 2012 2011 --------- --------- --------- (In millions) Compensation..................................... $ 306 $ 342 $ 293 Commissions...................................... 555 809 1,253 Volume-related costs............................. 129 149 162 Affiliated interest costs on ceded reinsurance... 155 211 211 Capitalization of DAC............................ (476) (821) (1,274) Amortization of DAC.............................. (70) 838 701 Interest expense on debt and debt issuance costs. 3 3 3 Premium taxes, licenses and fees................. 45 52 56 Professional services............................ 29 18 16 Rent and related expenses........................ 27 30 25 Other............................................ 336 297 242 --------- --------- --------- Total other expenses............................ $ 1,039 $ 1,928 $ 1,688 ========= ========= =========
Capitalization and Amortization of DAC See Note 3 for additional information on 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 4, 8 and 13 for discussion of affiliated expenses included in the table above. 11. Income Tax The provision for income tax was as follows:
Years Ended December 31, ----------------------- 2013 2012 2011 --------- ------ ------ (In millions) Current: Federal...................................... $ (89) $ (80) $ (44) Deferred: Federal...................................... 68 376 219 --------- ------ ------ Provision for income tax expense (benefit). $ (21) $ 296 $ 175 ========= ====== ======
97 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 11. Income Tax (continued) 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, --------------------------- 2013 2012 2011 --------- -------- -------- (In millions) Tax provision at U.S. statutory rate.......... $ 50 $ 353 $ 232 Tax effect of: Dividend received deduction.................. (59) (48) (45) Tax credits.................................. (9) (6) (7) Prior year tax............................... (3) (3) (5) Tax-exempt income............................ (1) -- -- Other, net................................... 1 -- -- --------- -------- -------- Provision for income tax expense (benefit). $ (21) $ 296 $ 175 ========= ======== ========
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 at:
December 31, --------------------- 2013 2012 ---------- ---------- (In millions) Deferred income tax assets: Policyholder liabilities and receivables........ $ 600 $ -- Tax credit carryforwards........................ 84 65 Net operating loss carryforwards................ 22 -- Investments, including derivatives.............. -- 52 ---------- ---------- Total deferred income tax assets.............. 706 117 Deferred income tax liabilities: DAC............................................. 1,051 782 Investments, including derivatives.............. 619 -- Net unrealized investment gains................. 149 495 Policyholder liabilities and receivables........ -- 223 ---------- ---------- Total deferred income tax liabilities......... 1,819 1,500 ---------- ---------- Net deferred income tax asset (liability)... $ (1,113) $ (1,383) ========== ==========
The following table sets forth the domestic net operating loss carryforwards for tax purposes at December 31, 2013.
Net Operating Loss Carryforwards ------------------------------- Amount Expiration ------------- ----------------- (In millions) Domestic. $64 Beginning in 2028
98 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 11. Income Tax (continued) Tax credit carryforwards of $84 million at December 31, 2013 will expire beginning in 2017. The Company participates in a tax sharing agreement with MetLife, as described in Note 1. Pursuant to this tax sharing agreement, the amounts due from affiliates included $105 million, $138 million and $92 million at December 31, 2013, 2012 and 2011, respectively. 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 Internal Revenue Service ("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 or local income tax examinations in major taxing jurisdictions for years prior to 2003. The IRS audit cycle for the years January 1, 2003 through October 11, 2006, which began in April 2010, is expected to conclude in 2014. In 2012, the Company and the IRS completed and substantially settled the audit period October 12, 2006 through December 31, 2006. One issue not settled is under review at the IRS Appeals Division. It is not expected that there will be a material change in the Company's liability for unrecognized tax benefits in the next 12 months. A reconciliation of the beginning and ending amount of unrecognized tax benefits was as follows:
Year Ended December 31, 2013 ---------------------------- (In millions) Balance at January 1,......................................................... $ -- Additions for tax positions of prior years.................................... 14 Reductions for tax positions of prior years................................... (1) Additions for tax positions of current year................................... 1 Reductions for tax positions of current year.................................. (1) ---------------------------- Balance at December 31,....................................................... $ 13 ============================ Unrecognized tax benefits that, if recognized would impact the effective rate. $ 13 ============================
There were no unrecognized tax benefits at December 31, 2012 and 2011. The Company classifies interest accrued related to unrecognized tax benefits in interest expense, included within other expenses, while penalties are included in income tax expense. Interest was as follows:
Year Ended December 31, 2013 ---------------------------- (In millions) Interest recognized in the consolidated statements of operations. $ 1
December 31, 2013 ----------------- (In millions) Interest included in other liabilities in the consolidated balance sheets. $ 1
99 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 11. Income Tax (continued) There was no interest recognized in the consolidated statements of operations for the years ended December 31, 2012 and 2011. There was no interest included in other liabilities in the consolidated balance sheets at December 31, 2012. The Company had no penalties for the years ended December 31, 2013, 2012 and 2011. 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 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, 2013 and 2012, the Company recognized an income tax benefit of $70 million and $52 million, respectively, related to the separate account DRD. The 2013 benefit included a benefit of $11 million related to a true-up of the 2012 tax return. The 2012 benefit included a benefit of $4 million related to a true-up of the 2011 tax return. 12. Contingencies, Commitments and Guarantees Contingencies Litigation Unclaimed Property Inquiries In April 2012, MetLife, for itself and on behalf of entities including MLI-USA, reached agreements with representatives of the U.S. jurisdictions that were conducting audits of MetLife and certain of its affiliates for compliance with unclaimed property laws, and with state insurance regulators directly involved in a multistate targeted market conduct examination relating to claim-payment practices and compliance with unclaimed property laws. On November 14, 2012, the West Virginia Treasurer filed an action against MLI-USA, alleging that MLI-USA violated the West Virginia Uniform Unclaimed Property Act, seeking to compel compliance with the Act, and seeking payment of unclaimed property, interest, and penalties West Virginia ex rel. John D. Perdue v. MetLife Investors USA Insurance Company, Circuit Court of Putnam County, Civil Action No. 12-C-363). On December 30, 2013, the court granted defendants' motion to dismiss the West Virginia Treasurer's action. The Treasurer has filed a notice to appeal the dismissal order. At least one other jurisdiction is pursuing a similar market conduct examination. It is possible that other jurisdictions may pursue similar examinations, audits, or lawsuits and that such actions may result in additional payments to beneficiaries, additional escheatment of funds deemed abandoned under state laws, administrative penalties, interest, and/or further changes to the Company's procedures. The Company is not currently able to estimate these additional possible costs. 100 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 12. Contingencies, Commitments and Guarantees (continued) Sales Practices Claims Over the past several years, the Company has faced claims and regulatory inquiries and investigations, 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 these matters. The Company believes adequate provision has been made in its consolidated financial statements for all probable and reasonably estimable losses for sales practices matters. Summary Various litigation, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company's consolidated financial statements, have arisen in the course of the Company's business, including, but not limited to, in connection with its activities as an insurer, employer, investor, investment advisor, and taxpayer. 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 of all pending investigations and legal proceedings. In some of the matters, very large and/or indeterminate amounts, including punitive and treble damages, are sought. Although, in light of these considerations it is possible that an adverse outcome in certain cases could have a material effect upon the Company's financial position, based on information currently known by the Company's management, in its opinion, the outcomes of such pending investigations and legal proceedings are not likely to have such an effect. However, given the large and/or indeterminate amounts sought in certain of these 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 effect on the Company's consolidated net income or cash flows in particular annual periods. Insolvency Assessments Most of the jurisdictions in which the Company is admitted to transact business require insurers doing business within the jurisdiction to participate in guaranty associations, which are organized to pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer engaged. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. 101 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 12. Contingencies, Commitments and Guarantees (continued) Assets and liabilities held for insolvency assessments were as follows:
December 31, ------------------ 2013 2012 -------- --------- (In millions) Other Assets: Premium tax offset for future undiscounted assessments....... $ 4 $ 6 Premium tax offsets currently available for paid assessments. 3 1 -------- --------- $ 7 $ 7 ======== ========= Other Liabilities: Insolvency assessments....................................... $ 5 $ 13 ======== =========
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 $483 million and $446 million at December 31, 2013 and 2012, 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 $61 million and $59 million at December 31, 2013 and 2012, 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 $38 million and $72 million at December 31, 2013 and 2012, respectively. Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties such that it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities, and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the 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 102 MetLife Investors USA Insurance Company (A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut) Notes to the Consolidated Financial Statements -- (Continued) 12. Contingencies, Commitments and Guarantees (continued) 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, 2013 and 2012. 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 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 incurred with affiliates related to these agreements, recorded in other expenses, were $1.4 billion, $1.5 billion and $1.7 billion for the years ended December 31, 2013, 2012 and 2011, respectively. Revenues received from affiliates related to these agreements, recorded in universal life and investment-type product policy fees, were $182 million, $150 million and $115 million for the years ended December 31, 2013, 2012 and 2011, respectively. Revenues received from affiliates related to these agreements, recorded in other revenues, were $153 million, $133 million and $97 million for the years ended December 31, 2013, 2012 and 2011, respectively. The Company had net payables to affiliates, related to the items discussed above, of $235 million and $129 million at December 31, 2013 and 2012, respectively. See Notes 4 and 5 for additional information on related party transactions. 14. Subsequent Event The Company has evaluated events subsequent to December 31, 2013, through April 8, 2014, which is the date these consolidated financial statements were available to be issued, and has determined there are no material subsequent events requiring adjustment to or disclosure in the financial statements. 103 PART C OTHER INFORMATION ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS a. Financial Statements The financial statements and financial highlights of each of the Sub-Accounts of the Separate Account are included in Part B hereof and include: 1. Report of Independent Registered Public Accounting Firm. 2. Statements of Assets and Liabilities as of December 31, 2013. 3. Statements of Operations for the year ended December 31, 2013. 4. Statements of Changes in Net Assets for the years ended December 31, 2013 and 2012. 5. Notes to the Financial Statements. The consolidated financial statements of the Company are included in Part B hereof and include: 1. Independent Auditors' Report. 2. Consolidated Balance Sheets as of December 31, 2013 and 2012. 3. Consolidated Statements of Operations for the years ended December 31, 2013, 2012 and 2011. 4. Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2013, 2012 and 2011. 5. Consolidated Statements of Stockholder's Equity for the years ended December 31, 2013, 2012 and 2011. 6. Consolidated Statements of Cash Flows for the years ended December 31, 2013, 2012 and 2011. 7. 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)(3) 2. Not Applicable. 3. (i) Principal Underwriter's and Selling Agreement (effective January 1, 2001)(3) (ii) Amendment to Principal Underwriter's and Selling Agreement (effective January 1, 2002)(3) (iii) Form of Retail Sales Agreement (MLIDC 7-1-05 (LTC))(5) (iv) Agreement and Plan of Merger (12-01-04) (MLIDC into GAD)(6) (v) Form of Enterprise Selling Agreement 09-12 (MetLife Investors Distribution Company Sales Agreement) (14) 4. (i) Draft Form of Individual Single Premium Deferred Variable Annuity Contract (10) (ii) Form of Contract Schedule (10) 5. Form of Variable Annuity Application (10) 6. (i) Copy of Restated Articles of Incorporation of the Company(3) (ii) Copy of the Bylaws of the Company(3) (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 (3) (v) Certificate of Amendment of Certification of Incorporation signed 4/26/83 and certified 2/12/85 (3) (vi) Certificate of Amendment of Certificate of Incorporation filed 10/22/84 and signed 10/19/84 (3) (vii) Certificate of Amendment of Certificate of Incorporation certified 8/31/94 and adopted 6/13/94 (3) (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 (3) 7 (i) Reinsurance Agreement between MetLife Investors USA Insurance Company and Exeter Reassurance Company, Ltd. (effective April 1, 2010) (MGGI) (13) (ii) (a) Automatic Reinsurance Agreement between MetLife Investors USA Insurance Company and MetLife Insurance Company of Connecticut (effective as of January 1, 2011) (12) (b) 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) amended as of April 29, 2011 (12) (c) Amendment No. 2 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) amended as of December 1, 2011 (13) (iii) (a) Automatic Reinsurance Agreement between MetLife Investors USA Insurance Company and Exeter Reassurance Company, Ltd. (effective January 1, 2012) (13) (b) Amendment No. 1 to Automatic Reinsurance Agreement effective as of January 1, 2012 (Agreement) between MetLife Investors USA Insurance Company (Cedent) and Exeter Reassurance Company, Ltd. (Reinsurer) (14) (iv) Automatic Reinsurance Agreement between MetLife Investors USA Insurance Company and MetLife Insurance Company of Connecticut (effective 1/1/13) (15) 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) (3) (ii) Participation Agreement Among Variable Insurance Products Funds, Fidelity Distribution Corporation and MetLife Investors USA Insurance Company (effective 11-01-05) and Sub-License Agreement between Fidelity Distributors Corporation and MetLife Investors USA Insurance Company (effective 11-01-05) (9) 9. Opinion of Counsel (10) 10. Consent of Independent Registered Public Accounting Firm (filed herewith) 11. Not Applicable. 12. Not Applicable. 13. (a) Powers of Attorney for Eric T. Steigerwalt, Susan A. Buffum, Elizabeth M. Forget, Lisa S. Kuklinski, Stephen M. Kessler, James J. Reilly and Peter M. Carlson. (14) (b) Powers of Attorney for Kumar Das Gupta and Dina R. Lumerman (15) (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. 4 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on April 30, 2003. (3) 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. (4) incorporated herein by reference to Registrant's Pre-Effective Amendment No. 1 to Form N-4/A (File Nos. 333-127553 and 811-03365) filed electronically on September 15, 2005. (5) incorporated herein by reference to Registrant's Post-Effective Amendment No. 19 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on April 24, 2006. (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. 31 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on April 15, 2008. (9) incorporated herein by reference to Registrant's Post-Effective Amendment No. 1 on Form N-4 (File Nos. 333-125756 and 811-03365) filed electronically on April 24, 2006. (10) incorporated herein by reference to Registrant's Pre-Effective Amendment No. 1 on Form N-4 (File Nos. 333-161443 and 811-03365) filed electronically on October 30, 2009. (11) incorporated herein by reference to Registrant's Post-Effective Amendment No. 2 to Form N-4 (File Nos. 333-161443 and 811-03365) filed electronically on April 21, 2011. (12) incorporated herein by reference to Registrant's Pre-Effective Amendment No. 1 to Form N-4 (Files Nos. 333-176374 and 811-03365) filed electronically on September 2, 2011. (13) incorporated herein by reference to Registrant's Post-Effective Amendment No. 4 to Form N-4 (File Nos. 333-176374 and 811-03365) filed electronically on April 11, 2012. (14) incorporated herein by reference to Registrant's Post-Effective Amendment No. 5 to Form N-4 (File Nos. 333-161443 and 811-03365) filed electronically on April 11, 2013. (15) incorporated herein by reference to Registrant's Post-Effective Amendment No. 6 to Form N-4 (File Nos. 333-161443 and 811-03365) filed electronically on April 9, 2014. 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 Eric T. Steigerwalt Director, Chairman of the Board, President, and Chief Gragg Building Executive Officer 11225 North Community House Road Charlotte, NC 28277 Peter M. Carlson Executive Vice President and Chief Accounting Officer 1095 Avenue of the Americas New York, NY 10036 Susan A. Buffum Director 10 Park Avenue Morristown, NJ 07962 James J. Reilly Vice President-Finance (principal financial officer) One Financial Center Center, 21st Floor Boston, MA 02111 Kieran R. Mullins Director Gragg Building 11225 North Community House Road Charlotte, NC 28277 Stephen M. Kessler Director 300 Davidson Avenue Somerset, NJ 08873 Elizabeth M. Forget Director and Executive Vice President 1095 Avenue of the Americas New York, NY 10036 Lisa S. Kuklinski Director and Vice President 1095 Avenue of the Americans New York, NY 10036 Kumar Das Gupta Director Gragg Building 11225 North Community House Road Charlotte, NC 28277 Dina R. Lumerman Director 1095 Avenue of the Americas New York, NY 10036 Tyla L. Reynolds Vice President and Secretary 600 North King Street Wilmington, DE 19801 John Peter Kyne III Vice President, Director of Compliance Gragg Building 11225 North Community House Road Charlotte, NC 28277 Jonathan L. Rosenthal Vice President, Chief Hedging Officer 10 Park Avenue Morristown, NJ 07962 Christopher A. Kremer Vice President One Financial Center, 21st Floor Boston, MA 02111 Marian J. Zeldin Vice President 501 Route 22 Bridgewater, NJ 08807 Karen A. Johnson Vice President One Financial Center, 21st Floor Boston, MA 02111
Name and Principal Business Address Positions and Offices with Depositor Roberto Baron Vice President 1095 Avenue of the Americas New York, NY 10036 Gregory E. Illson Vice President One Financial Center Boston, MA 02111 Jeffrey P. Halperin Vice President Gragg Building 11225 North Community House Road Charlotte, NC 28277 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 Gragg Building 11225 North Community House Road Charlotte, NC 28277 Robert L. Staffier, Jr. Vice President 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Scott E. Andrews Vice President 4700 Westown Pkwy., Suite 200 West Des Moines, IA 50266 Henry W. Blaylock Vice President 200 Park Avenue, 12th Floor New York, NY 10166 Cynthia Mallett Vice President One Financial Center, 20th Floor Boston, MA 02111 Sabrina K. Model Vice President 501 Route 22 Bridgewater, NJ 08807 John J. Iwanicki Vice President 18210 Crane Nest Drive Tampa, FL 33647 Nan D. Tecotzky Vice President 200 Park Avenue, 12th Floor New York, NY 10166 Andrew Kaniuk Vice President 501 Route 22 Bridgewater, NJ 08807 Jodi Anatole Vice President 1095 Avenue of the Americas New York, NY 10036 Geoffrey A. Fradkin Vice President 501 Route 22 Bridgewater, NJ 08807 Lynn A. Dumais Vice President 18210 Crane Nest Drive Tampa, FL 33647
Name and Principal Business Address Positions and Offices with Depositor Timothy J. McLinden Vice President 277 Park Avenue New York, NY 10172 Henryk Sulikowski, Jr. Vice President and Actuary 18210 Crane Nest Drive Tampa, FL Stewart M. Ashkenazy Vice President and Actuary, Illustration Actuary 1095 Avenue of the Americas New York, NY 10036 Enid M. Reichert Vice President and Appointed Actuary 501 Route 22 Bridgewater, NJ 08807
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 June 30, 2014 The following is a list of subsidiaries of MetLife, Inc. updated as of June 30, 2014. 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 Home Loans LLC (DE) C. Exeter Reassurance Company, Ltd. (DE) D. 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. d) 1320 Venture LLC (DE) i) 1320 Owner LP (DE) - a 99.9% limited partnership of 1320 Owner LP is held by 1320 Venture LLC and 0.1% general partnership is held by 1320 GP LLC. e) 1320 GP LLC (DE) E. MetLife Chile Inversiones Limitada (Chile) - 70.4345328853% of MetLife Chile Inversiones Limitada is owned by MetLife, Inc., 26.6071557459% by American Life Insurance Company ("ALICO"), 2.9583113284% is owned by Inversiones MetLife Holdco Dos Limitada and 0.0000000404% is owned by Natilportem Holdings, Inc. 1. MetLife Chile Seguros de Vida S.A. (Chile) - 99.9969% of MetLife Chile Seguros de Vida S.A. is held by MetLife Chile Inversiones Limitada and 0.0031% by International Technical and Advisory Services Limited ("ITAS"). a) MetLife Chile Administradora de Mutuos Hipotecarios S.A. (Chile) - 99.99% of MetLife Chile Administradora de Mutuos Hipotecarios S.A. is held by MetLife Chile Seguros de Vida S.A. and 0.01% is held by MetLife Chile Inversiones Limitada. 2. Legal Chile S.A. (Chile) - 51% of Legal Chile S.A. is owned by MetLife Chile Inversiones Limitada and the remaining interest is owned by a third party. a) Legagroup S.A. (Chile) - 99% of Legagroup S.A. is owned by Legal Chile S.A. and the remaining interest is owned by a third party. 3. Inversiones MetLife Holdco Tres Limitada (Chile) - 99.9% of Inversiones MetLife Holdco Tres Limitada is owned by MetLife Chile Inversiones Limitada and 0.1% is owned by Inversiones MetLife Holdco Dos Limitada. a) MetLife Chile Acquisition Co. S.A. (Chile) - 45% of MetLife Chile Acquisition Co. S.A. is owned by Inversiones MetLife Holdco Dos Limitada, 45% is owned by Inversiones MetLife Holdco Tres Limitada and 10% is owned by MetLife Chile Inversiones Limitada. i) Inversiones Previsionales S.A. (Chile) - 99.999% of Inversiones Previsionales S.A. is owned by MetLife Chile Acquisition Co. S.A. and 0.001% is owned by Inversiones MetLife Holdco Tres Limitada. aa) AFP Provida S.A. (Chile) - 51.62% of AFP Provida S.A. is owned by Inversiones Previsionales S.A., 21.97% is owned indirectly (by means of ADR) by MetLife Chile Acquisition Co. S.A., 17.79% is owned directly by MetLife Chile Acquisition Co. S.A. and the remainder is owned by third parties. 1) Provida Internacional S.A. (Chile) - 99.99% of Provida Internacional S.A. is owned by AFP Provida S.A. and 0.01% by Inversiones Previsionales S.A. ii) AFP Genesis Administradora de Fondos y Fidecomisos S.A. (Ecuador) - 99.9997% of AFP Genesis Administradora de Fondos y Fidecomisos S.A. is owned by Provida Internacional S.A. and 0.0003% is owned by Inversiones Previsionales S.A. 4. MetLife Chile Seguros Generales S.A. (Chile) - 99.9% of MetLife Chile Seguros Generales, S.A. is owned by MetLife Chile Inversiones Limitada and 0.1% is owned by ITAS. F. MetLife Securities, Inc. (DE) G. Enterprise General Insurance Agency, Inc. (DE) 1 H. 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. MetLife Auto & Home Insurance Agency, Inc. (RI) 5. Metropolitan Group Property and Casualty Insurance Company (RI) a) Metropolitan Reinsurance Company (U.K.) Limited (United Kingdom) 6. 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. 7. Economy Fire & Casualty Company (IL) a) Economy Preferred Insurance Company (IL) b) Economy Premier Assurance Company (IL) I. MetLife Investors Insurance Company (MO) J. First MetLife Investors Insurance Company (NY) K. Newbury Insurance Company, Limited (DE) L. MetLife Investors Group, Inc. (DE) 1. MetLife Investors Distribution Company (MO) 2. MetLife Advisers, LLC (MA) 2 M. 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) Excelencia Operativa y Tecnologica, S.A. de C.V. (Mexico) i) MLA Comercial, S.A. de C.V. (Mexico) 99% is owned by Excelencia Operativa y Tecnologica, 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 Excelencia Operativa y Tecnologica, S.A. de C.V. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. 3. PNB 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 S.A. (Argentina)- 79.3196% is owned by MetLife International Holdings, Inc., 2.6753% is owned by Natiloportem Holdings, Inc., 16.2046% by ALICO and 1.8005% by ITAS. 6. Metropolitan Life Seguros e Previdencia Privada S.A. (Brazil)- 66.662% is owned by MetLife International Holdings, Inc., 33.337% is owned by MetLife Worldwide Holdings, Inc. and 0.001% is owned by Natiloportem Holdings, Inc. 7. MetLife Global, Inc. (DE) 8. MetLife Administradora de Fundos Multipatrocinados Ltda. (Brazil) - 99.99998% of MetLife Administradora de Fundos Multipatrocinados Ltda. is owned by MetLife International Holdings, Inc. and 0.00002% by Natiloportem Holdings, Inc. 9. MetLife Services Limited (United Kingdom) 10. MetLife Seguros de Retiro S.A. (Argentina) - 95.5883% is owned by MetLife International Holdings, Inc., 3.1102% is owned by Natiloportem Holdings, Inc., 1.3014% by ALICO and 0.0001% by ITAS. 11. Best Market S.A. (Argentina) - 5% of the shares are held by Natiloportem Holdings, Inc. and 95% is owned by MetLife International Holdings Inc. 12. Compania Inversora MetLife S.A. (Argentina) - 95.46% is owned by MetLife International Holdings, Inc. and 4.54% is owned by Natiloportem Holdings, Inc. a) MetLife Servicios S.A. (Argentina) - 18.87% of the shares of MetLife Servicios S.A. are held by Compania Inversora MetLife S.A., 79.88% is owned by MetLife Seguros S.A., 0.99% is held by Natiloportem Holdings, Inc. and 0.26% is held by MetLife Seguros de Retiro S.A. 13. MetLife Worldwide Holdings, Inc. (DE) a) MetLife Direct Co., LTD. (Japan) b) MetLife Limited (Hong Kong) 14. MetLife International Limited, LLC (DE) 15. MetLife Planos Odontologicos Ltda. (Brazil) - 99.999% is owned by MetLife International Holdings, Inc. and 0.001% is owned by Natiloportem Holdings, Inc. 16. MetLife Ireland Holdings One Limited (Ireland) a) MetLife Global Holdings Corporation S.A. de C.V. (Mexico/Ireland) - 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) - 91.16468% of MetLife Insurance Limited (Australia) is owned by MetLife Ireland Treasury Limited and 8.83532% is owned by MetLife Global Holdings Corp. S.A. de C.V. 1) The Direct Call Centre PTY Limited (Australia) 2) 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/Ireland) - 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)- 99.050271% is owned by Metropolitan Global Management, LLC and 0.949729% 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. e) GlobalMKT S.A. (Uruguay) 17. MetLife Asia Limited (Hong Kong) 18. AmMetLife Insurance Berhad (Malaysia) - 50.000001% of AmMetLife Insurance Berhad is owned by MetLife International Holdings, Inc. and the remainder is owned by a third party. 19. AmMetLife Takaful Berhad (Malaysia) - 49.999999% of AmMetLife Takaful Berhad is owned by MetLife International Holdings, Inc. and the remainder is owned by a third party. N. Metropolitan Life Insurance Company ("MLIC") (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) aa) OMI MLIC Investments Limited (Cayman Islands) 3. CRB Co., Inc. (MA) 4. MLIC Asset Holdings II LLC (DE) a) El Conquistador MAH II LLC (DE) b) Mansell Office LLC (DE) - 73.0284% of Mansell Office LLC is owned by MLIC Asset Holdings II LLC and 26.9716% is owned by MLIC CB Holdings LLC. c) Mansell Retail LLC (DE) - 73.0284% of Mansell Retail LLC is owned by MLIC Asset Holdings II LLC and 26.9716% is owned by MLIC CB Holdings LLC. 3 5. CC Holdco Manager, 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, Inc. (Cayman Islands) 11. Metropolitan Tower Realty Company, Inc. (DE) a) Midtown Heights, LLC (DE) 12. MetLife Real Estate Cayman Company (Cayman Islands) 13. MetLife RC SF Member, LLC (DE) 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. i) Long Island Solar Farm, LLC ("LISF")(DE) - 9.61% membership interest is held by MetLife Renewables Holding, LLC and 90.39% membership interest is held by LISF Solar Trust in which MetLife Capital Limited Partnership has 100% beneficial interest. 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. General American Life Insurance Company (MO) a) 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) - 99% is owned by Metropolitan Life Insurance Company and 1% is owned by Headland-Pacific Palisades, LLC. 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 Mall Ventures Limited Partnership (DE) - 99% LP interest of MetLife Mall Ventures Limited Partnership is owned by MLIC and 1% GP interest is owned by Metropolitan Tower Realty Company, Inc. a) HMS Master Limited Partnership (DE) - 60% LP interest of HMS Master Limited Partnership is owned by MetLife Mall Ventures Limited Partnership. A 40% LP interest is owned by a third party. Metropolitan Tower Realty Company, Inc. is the GP. i) HMS Southpark Residential LLC (DE) 33. MetLife Retirement Services LLC (NJ) a) 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. ML Bridgeside Apartments LLC (DE) 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) 45. Met II Office Mezzanine LLC, (FL) - 10.4167% of the membership interest is owned by Metropolitan Tower Life Insurance Company and 89.5833% is owned by Metropolitan Life Insurance Company. a) Met II Office LLC (FL) 46. The Worthington Series Trust (DE) 47. MetLife CC Member, LLC (DE) - 63.415% of MetLife CC Member, LLC is held by Metropolitan Life Insurance Company, 17.073% by MetLife Investors USA Insurance Company, 14.634% by MetLife Insurance Company of Connecticut and 4.878% by General American Life Insurance Company. 48. Oconee Hotel Company, LLC (DE) 49. Oconee Land Company, LLC (DE) a) Oconee Land Development Company, LLC (DE) b) Oconee Golf Company, LLC (DE) c) Oconee Marina Company, LLC (DE) 50. 1201 TAB Manager, LLC (DE) 51. MetLife 1201 TAB Member, LLC (DE) - 69.66% of MetLife 1201 TAB Member, LLC is owned by Metropolitan Life Insurance Company, 12.07% is owned by MetLife Investors USA Insurance Company, 15.17% is owned by MetLife Insurance Company of Connecticut and 3.1% is owned by Metropolitan Property and Casualty Insurance Company. a) 1201 TAB Owner, LLC (DE) - 50% of 1201 TAB Owner, LLC is owned by Metlife 1201 TAB Member, LLC and the remainder is owned by a third party. Metlife 1201 TAB Manager, LLC is the manager of 1201 TAB Owner, LLC. 52. MetLife LHH Member, LLC (DE) - 69.23% of MetLife LHH Member, LLC is owned by Metropolitan Life Insurance Company, 19.78% is owned by MetLife Investors USA Insurance Company and 10.99% is owned by New England Life Insurance Company. 53. Ashton Southend GP, LLC (DE) 54. Tremont Partners, LP (DE) - 99.9% LP interest of Tremont Partners, LP is owned by Metropolitan Life Insurance Company and 0.1% GP interest is owned by Ashton Southend GP, LLC. 55. Riverway Residential, LP (DE) - 99.9% LP interest of Riverway Residential, LP is owned by Metropolitan Life Insurance Company and 0.1% GP interest is owned by Metropolitan Tower Realty Company, Inc. 56. 10420 McKinley Partners, LP (DE) - 99.9% LP interest of 10420 McKinley Partners, LP is owned by Metropolitan Life Insurance Company and 0.1% GP interest is owned by Metropolitan Tower Realty Company, Inc. 57. Ardrey Kell Townhomes, LLC (DE) 58. Boulevard Residential, LLC (DE) 59. 465 N. Park Drive, LLC (DE) 60. Ashton Judiciary Square, LLC (DE) 61. Sandpiper Cove Associates, LLC (DE) - 90.59% membership interest of Sandpiper Cove Associates, LLC is owned by MLIC and 9.41% is owned by Metropolitan Tower Realty Company. 62. 1900 McKinney Properties, LP (DE) - 99.9% LP interest of 1900 McKinney Properties, LP is owned by MLIC and 0.1% GP interest is owned by Metropolitan Tower Realty Company, Inc. 63. Marketplace Residences, LLC (DE) 64. ML Swan Mezz, LLC (DE) a) ML Swan GP, LLC (DE) 65. ML Dolphin Mezz, LLC (DE) a) ML Dolphin GP, LLC (DE) 66. Haskell East Village, LLC (DE) 67. MetLife Cabo Hilton Member, LLC (DE) - 54.129% of MetLife Cabo Hilton Member, LLC is owned by MLIC, 16.9% by General American Life Insurance Company, 16.9% by MetLife Investors USA Insurance Company and 12.071% by MetLife Insurance Company of Connecticut. 68. ML Terraces, LLC (DE) 69. Chestnut Flats Wind, LLC (DE) 70. MetLife 425 MKT Member, LLC (DE) a) 425 MKT, LLC (DE) - 52.5% of 425 MKT, LLC is owned by MetLife 425 MKT Member, LLC and 47.5% is owned by a third party. MetLife 425 MKT Member, LLC is the managing member of 425 MKT, LLC. i) 425 MKT REIT, LLC (DE) - 99.9% of 425 MKT REIT, LLC is owned by 425 MKT, LLC and the remaining 0.1% by third parties. 71. MetLife OFC Member, LLC (DE) a) OFC Boston, LLC (DE) - 52.5% of OFC Boston, LLC is owned by MetLife OFC Member, LLC and 47.5% is owned by a third party. i) OFC REIT, LLC (DE) - 99.9% of OFC REIT, LLC is owned by OFC Boston and the remaining 0.1% is owned by third parties. 1) Dewey Square Tower Associates, LLC (MA) 72. MetLife THR Investor, LLC (DE) - 85% of MetLife THR Investor, LLC is owned by MLIC and 15% is owned by MICC. 73. ML Southmore, LLC (DE) - 75.12% of ML Southmore, LLC is owned by MLIC and 24.88% is owned by MICC. 74. ML - AI MetLife Member 1, LLC (DE) - 83.675% of the membership interest is owned by MLIC, 5.762% by MICC, 5.762% by MLI USA and 4.801% by Metropolitan Property and Casualty Insurance Company. a) ML - AI Venture 1, LLC (DE) - 51% of ML-AI Venture 1, LLC is owned by ML-AI MetLife Member 1, LLC and 49% is owned by a third party. MetLife Investment Management, LLC is the asset manager. i) ML-AI 125 Wacker, LLC (DE) 75. MetLife CB W/A, LLC (DE) 76. MetLife Camino Ramon Member, LLC (DE) - 78.6% of MetLife Camino Ramon Member, LLC is owned by MLIC and 21.4% is owned by MICC. 77. 10700 Wilshire, LLC (DE) 78. Viridian Miracle Mile, LLC (DE) 79. MetLife Canada Solar ULC (Canada) 80. MetLife 555 12th Member, LLC (DE) - MetLife 555 12th Member, LLC is owned at 69.4% by MLIC, 20.2% by MICC, 5.4% by GALIC and 5% by MLI USA. a) 555 12th, LLC (DE) - 52.5% of 555 12th, LLC is owned by MetLife 555 12th Member, LLC and the remainder by a third party. i) 555 12 REIT, LLC (DE) O. MetLife Capital Trust IV (DE) P. MetLife Insurance Company of Connecticut ("MICC") (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 III Associates, LLC (CT) - 67% is owned by MICC and 33% is owned by third party. 3. Metropolitan Connecticut Properties Ventures, LLC (DE) 4. MetLife Canadian Property Ventures LLC (NY) 5. Euro TI Investments LLC (DE) 6. Greenwich Street Investments, L.L.C. (DE) a) Greenwich Street Capital Offshore Fund, Ltd. (Virgin Islands) b) Greenwich Street Investments, L.P. (DE) 7. One Financial Place Corporation (DE) - 100% is owned in the aggregate by MICC. 8. MetLife USA Assignment Company (CT) 9. TIC European Real Estate LP, LLC (DE) 10. MetLife European Holdings, LLC (DE) 11. Travelers International Investments Ltd. (Cayman Islands) 12. Euro TL Investments LLC (DE) 13. Corrigan TLP LLC (DE) 14. TLA Holdings LLC (DE) a) The Prospect Company (DE) 15. TRAL & Co. (CT) - TRAL & Co. is a general partnership. Its partners are MICC and Metropolitan Life Insurance Company. 16. MetLife Investors USA Insurance Company ("MLI USA") (DE) a) MetLife Renewables Holding, LLC (DE) i) Greater Sandhill I, LLC (DE) 17. TLA Holdings II LLC (DE) 18. TLA Holdings III LLC (DE) 19. MetLife Greenstone Southeast Venture, LLC (DE) - 95% of MetLife Greenstone Southeast Venture, LLC is owned by MICC and 5% is owned by Metropolitan Connecticut Properties Ventures, LLC. a) MLGP Lakeside, LLC (DE) 20. Sino-US United MetLife Insurance Co., Ltd. (China) - Sino-US United MetLife Insurance Co., Ltd. is owned at 27.8% by MICC, 22.2% by MLIC and 50% by a third party. Q. MetLife Reinsurance Company of South Carolina (SC) R. MetLife Investment Management, LLC (DE) 1. MetLife Alternatives GP, LLC (DE) a) MetLife International PE Fund I, LP (Cayman Islands) - 92.593% of the Limited Partnership interests of this entity is owned by MetLife Alico Life Insurance K.K., 4.115% is owned by MetLife Mexico S.A., 2.716% is owned by MetLife Limited (Hong Kong) and the remaining 0.576% is owned by Metropolitan Life Insurance Company of Hong Kong Limited. b) MetLife International PE Fund II, LP (Cayman Islands) c) MetLife International HF Partners, LP (Cayman Islands) - The General Partnership Interests of MetLife International HF Partners, LP is held by MetLife Alternatives GP, LLC; 91.49% of the Limited Partnership Interests is owned by MetLife Alico Life Insurance K.K. and 8.51% is owned by MetLife Insurance Company of Korea Limited. 2. MetLife Loan Asset Management LLC (DE) 3. MetLife Core Property Fund GP, LLC (DE) a) MetLife Core Property Fund, LP (DE) - MetLife Core Property Fund GP, LLC is the general partner of MetLife Core Property Fund, LP (the "Fund"). A substantial majority of the limited partnership interests in the Fund are held by third parties. The following affiliates hold a minority share of the limited partnership interests in the Fund: Metropolitan Life Insurance Company owns 23.7%, General American Life Insurance Company owns 0.1% and MetLife Insurance Company of Connecticut owns 0.2%. i) MetLife Core Property REIT, LLC (DE) aa) MetLife Core Property Holdings, LLC (DE) - MetLife Core Property Holdings, LLC holds the following single-property limited liability companies: MCP 7 Riverway, LLC; MCP SoCal Industrial-Redondo, LLC; MCP SoCal Industrial-Springdale, LLC; MCP SoCal Industrial-Concourse, LLC; MCP SoCal Industrial-Kellwood, LLC; MCP SoCal Industrial-Bernado, LLC; MCP SoCal Industrial-Canyon, LLC; MCP SoCal Industrial-Anaheim, LLC; MCP SoCal Industrial-LAX, LLC; MCP SoCal Industrial-Fullerton, LLC; MCP SoCal Industrial-Ontario, LLC; MCP SoCal Industrial-Loker, LLC; MCP Paragon Point, LLC; MCP 4600 South Syracuse, LLC; MCP The Palms Doral, LLC; MCP Waterford Atrium, LLC; MCP EnV Chicago, LLC; MCP 100 Congress, LLC; MCP 1900 McKinney, LLC; MCP 550 West Washington, LLC; MCP Main Street Village, LLC; MCP Lodge At Lakecrest, LLC; MCP Ashton South End, LLC and MCP 3040 Port Oak, LLC S. MetLife Standby I, LLC (DE) 1. MetLife Exchange Trust I (DE) T. 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. U. 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) V. MetLife Capital Trust X (DE) W. Cova Life Management Company (DE) X. MetLife Reinsurance Company of Charleston (SC) Y. MetLife Reinsurance Company of Vermont (VT) Z. Delaware American Life Insurance Company (DE) AA. Federal Flood Certification LLC (TX) AB. American Life Insurance Company (ALICO) (DE) 1. MetLife ALICO Life Insurance K.K. (Japan) a) Communication One Kabushiki Kaisha (Japan) b) Financial Learning Kabushiki Kaisha (Japan) 2. MetLife Global Holding Company I GmbH (Swiss I) (Switzerland) a) MetLife Global Holding Company II GmbH (Swiss II) (Switzerland) i) MetLife Emeklilik ve Hayat A.S. (Turkey) - 99.98% of MetLife Emeklilik ve Hayat A.S. is owned by Metlife Global Holding Company II GmbH (Swiss II) and the remainder by third parties. ii) ALICO European Holdings Limited (Ireland) aa) ZAO Master D (Russia) 1) Closed Joint Stock Company MetLife Insurance Company (Russia) - 51% of Closed Joint Stock Company MetLife Insurance Company is owned by ZAO Master D and 49% is owned by MetLife Global Holding Company II GmbH. iii) MetLife EU Holding Company Limited (Ireland) aa) MetLife Europe Limited (Ireland) - 93% of MetLife Europe Limited is owned by MetLife EU Holding Company Limited and 7% is owned by ALICO. 1. MetLife Pension Trustees Limited (United Kingdom) bb) Agenvita S.r.l. (Italy) cc) MetLife Europe Insurance Limited (Ireland)- 93% of MetLife Europe Insurance Limited is owned by MetLife EU Holding Company Limited and 7% is owned by ALICO. dd) MetLife Europe Services Limited (Ireland) ee) MetLife Insurance Limited (United Kingdom) ff) MetLife Limited (United Kingdom) gg) MetLife Services, Sociedad Limitada (Spain) hh) MetLife Insurance S.A./NV (Belgium) - 99.999% of MetLife Insurance S.A./NV is owned by MetLife EU Holding Company Limited and 0.001% is owned by Natilportem Holdings, Inc. ii) MetLife Solutions S.A.S. (France) jj) Metlife Biztosito Zrt. (Hungary) 1) First American-Hungarian Insurance Agency Limited (Hungary) kk) Metropolitan Life Asigurari S.A. (Romania) - 99.9982018% of Metropolitan Life Asigurari S.A. is owned by MetLife EU Holding Company Limited and the remaining 0.0017982% is owned by International Technical and Advisory Services Limited. 1) ALICO Societate de Administrare a unui Fond de Pensii Administrat Privat S.A. (Romania) - 99.9836% of ALICO Societate de Administrare a unui Fond de Pensii Administrat Privat S.A. is owned by Metropolitan Life Asigurari S.A. and 0.0164% is owned by MetLife Services Sp z.o.o. 2) Metropolitan Training and Consulting S.R.L. (Romania) 3) APF Societate de Administrare a Fondurilor De Pensii Facultative (APF) (Romania) - 99.99% of APF is owned by Metropolitan Life Asigurari S.A. and 0.01% is owned by ITAS. ll) MetLife AMSLICO poist'ovna, a.s. (Slovakia) 1) ALICO Services Central Europe s.r.o. (Slovakia) 2) ALICO Funds Central Europe sprav. spol., a.s. (Slovakia) mm) MetLife pojist'ovna a.s. (Czech Republic) nn) MetLife Towarzystwo Ubiezpieczen na Zycie I Reasekuracji S.A. (Poland) a) MetLife Services Sp z.o.o. (Poland) b) MetLife Towartzystwo Funduszy Inwestycyjnych, S.A. (Poland) c) AMPLICO Powszechne Towartzystwo Emerytalne S.A. (Poland) - 50% of AMPLICO Powszechne Towarzystwo Emerytalne S.A. is owned by MetLife Towarzystwo Ubiezpieczen na Zycie I Reasekuracji S.A. and the remaining 50% is owned by MetLife EU Holding Company Limited. oo) MetLife Holdings (Cyprus) Limited (Cyprus) a) American Life Insurance Company (Cyprus) Limited (Cyprus) pp) ALICO Bulgaria Zhivotozastrahovatelno Druzhestvo EAD (Bulgaria) qq) MetLife Alico Life Insurance Company S.A. (Greece) a) ALICO Mutual Fund Management Company (Greece) - 90% of ALICO Mutual Fund Management Company is owned by MetLife Alico Life Insurance Company S.A. (Greece) and the remaining interests are owned by third parties. 3. 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. 4. American Life Insurance Company (Pakistan) Ltd. (Pakistan) - 81.96% of American Life Insurance Company (Pakistan) Ltd. is owned by ALICO and the remaining interests are owned by third parties. 5. International Investment Holding Company Limited (Russia) 6. MetLife Akcionarsko Drustvo za Zivotno Osiguranje (Serbia) - 99.98% of MetLife Akcionarska Drustvoza za Zivotno Osiguranje is owned by ALICO and the remaining 0.02% is owned by ITAS. 7. ALICO Management Services Limited (United Kingdom) 8. ALICO Trustees U.K. Ltd. (United Kingdom) - 50% of ALICO Trustees U.K. Ltd. is owned by ALICO and the remaining interest is owned by ITAS. 9. PJSC MetLife (Ukraine) - 99.9988% of PJSC ALICO Ukraine is owned by ALICO 0.0006% is owned by ITAS and the remaining 0.0006% is owned by Borderland Investment Limited. 10. Borderland Investment Limited (USA-Delaware) a) ALICO Hellas Single Member Limited Liability Company (Greece) 11. International Technical and Advisory Services Limited ("ITAS") (USA-Delaware) 12. ALICO Operations Inc. (USA-Delaware) a) MetLife Asset Management Corp. (Japan) 13. MetLife Colombia Seguros de Vida S.A. (Colombia) - 94.9899823% of MetLife Colombia Seguros de Vida S.A. is owned by ALICO, 5.0100106% is owned by ITAS and the remaining interests are owned by third parties. 14. MetLife Mas, S.A. de C.V. (Mexico) - 99.9997546% of MetLife Mas, SA de CV is owned by ALICO and 0.0002454% is owned by ITAS. 15. MetLife Seguros S.A. (Uruguay) - 74.9187% of MetLife Seguros S.A. is owned by ALICO, 25.0798% by MetLife, Inc. and 0.0015% by a third party (Oscar Schmidt). 16. ALICO Properties, Inc. (USA-Delaware) - 51% of ALICO Properties, Inc. is owned by ALICO and the remaining interests are owned by third parties. a) Global Properties, Inc. (USA-Delaware) 17. Alpha Properties, Inc. (USA-Delaware) 18. Beta Properties, Inc. (USA-Delaware) 19. Delta Properties Japan, Inc. (USA-Delaware) 20. Epsilon Properties Japan, Inc. (USA-Delaware) 21. Iris Properties, Inc. (USA-Delaware) 22. Kappa Properties Japan, Inc. (USA-Delaware) AC. MetLife Global Benefits, Ltd. (Cayman Islands) AD. Inversiones Metlife Holdco Dos Limitada (Chile) - 99.999338695% of Inversiones MetLife Holdco Dos Limitada is owned by MetLife, Inc., 0.00065469% is owned by MetLife International Holdings, Inc. and 0.000006613% is owned by Natiloportem. AE. MetLife Consumer Services, Inc. (DE) AF. MetLife Reinsurance Company of Delaware (DE) 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. 4) MetLife Services EEIG is a cost-sharing mechanism used in the EU for EU- affiliated members. 6 ITEM 27. CONTRACT OWNERS As of September 30, 2014, there were 407,520 owners of qualified contracts and 182,116 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 Metropolitan Tower Life Separate Account One Metropolitan Tower Life Separate Account Two New England Life Retirement Investment Account New England Variable Annuity Fund I New England Variable Annuity Separate Account New England Variable Life Separate Account Separate Account No. 13S (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 1095 Avenue of the Americas, New York, NY 10036.
Name and Principal Business Address Positions and Offices with Underwriter ------------------------------------- -------------------------------------- Elizabeth M. Forget Director Gragg Building 11225 North Community House Road Charlotte, NC 28277 Paul A. LaPiana Director Gragg Building 11225 North Community House Road Charlotte, NC 28277 Gerard J. Nigro Director and Senior Vice President 1 MetLife Plaza 2701 Queens Plaza North Long Island City, NY 11101 Lance Carlson President 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Kieran R. Mullins Executive Vice President Gragg Building 11225 North Community House Road Charlotte, NC 28277 Barbara A. Dare Senior Vice President Gragg Building 11225 North Community House Road Charlotte, NC 28277 John P. Kyne, III Vice President and Chief Compliance Officer Gragg Building 11225 North Community House Road Charlotte, NC 28277 Donald Leintz Vice President Gragg Building 11225 North Community House Road Charlotte, NC 28277 John G. Martinez Vice President and Chief Financial Officer 18210 Crane Nest Drive Tampa, FL 33647 Tyla L. Reynolds Vice President and Secretary 600 North King Street Wilmington, DE 19801 Marlene B. Debel Treasurer 1095 Avenue of the Americas New York, NY 10036
(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 $456,083,088 $0 $0 $0
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS The following companies will maintain possession of the documents required by Section 31(a) of the Investment Company Act of 1940 and the Rules thereunder: (a) Registrant (b) MetLife Annuity Operations, 27000 Westown Parkway, Bldg. 4, Suite 200, West Des Moines, IA 50266 (c) State Street Bank & Trust Company, 225 Franklin Street, Boston, MA 02110 (d) MetLife Investors Distribution Company, 1095 Avenue of the Americas, New York, NY 10036 (e) MetLife Investors Insurance Company, 11225 North Community House Road, Charlotte, NC 28277 (f) MetLife, 18210 Crane Nest Dr., Tampa, FL 33647 (g) MetLife, One Financial Center, Boston, MA 02111 (h) MetLife, 200 Park Avenue, New York, NY 10166 (i) Fidelity 82 Devonshire Street, Boston, MA 02109 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. 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 New York, and state of New York, on this 14th day of November, 2014. METLIFE INVESTORS USA SEPARATE ACCOUNT A (Registrant) By: METLIFE INVESTORS USA INSURANCE COMPANY By: /s/ Elizabeth M. Forget ------------------------------ Elizabeth M. Forget Executive Vice President By: METLIFE INVESTORS USA INSURANCE COMPANY (Depositor) By: /s/ Elizabeth M. Forget ------------------------------ Elizabeth M. Forget Executive 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 14, 2014. /s/ Eric T. Steigerwalt* Director, Chairman of the Board, President ------------------------------ and Chief Executive Officer Eric T. Steigerwalt /s/ Peter M. Carlson* Executive Vice President and Chief ------------------------------ Accounting Officer Peter M. Carlson /s/ James J. Reilly* Vice President-Finance (principal financial ------------------------------ officer) James J. Reilly /s/ Susan A. Buffum* Director ------------------------------ Susan A. Buffum /s/ Elizabeth M. Forget* Director and Executive Vice President ------------------------------ Elizabeth M. Forget /s/ Kumar Das Gupta* Director ------------------------------ Kumar Das Gupta /s/ Stephen M. Kessler* Director ------------------------------ Stephen M. Kessler /s/ Lisa S. Kuklinski* Director and Vice President ------------------------------ Lisa S. Kuklinski /s/ Dina R. Lumerman* Director ------------------------------ Dina R. Lumerman Director ------------------------------ Kieran R. Mullins
*By: /s/ Michele H. Abate --------------------------------------- Michele H. Abate, Attorney-In-Fact November 14, 2014
* MetLife Investors USA Insurance Company. Executed by Michele H. Abate, Esquire on behalf of those indicated pursuant to powers of attorney incorporated herein by reference to Registrant's Post-Effective Amendment No. 5 to the Registration Statement on Form N-4 (File Nos. 333-161443/811-03365) filed as Exhibit 13 on April 12, 2013, except for the powers of attorney for Kumar Das Gupta and Dina R. Lumerman which are incorporated herein by reference to Registrant's Post-Effective Amendment No. 6 to the Registration Statement on Form N-4 (File Nos. 333-161443/811-03365) filed as Exhibit 13(b) on April 9, 2014. Index to Exhibits 10 Consent of the Independent Registered Public Accounting Firm (Deloitte & Touche LLP) EX-99.10 2 d728991dex9910.txt CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We consent to the use in this Post-Effective Amendment No. 9/Amendment No. 524 to Registration Statement File Nos. 333-161443/811-03365 on Form N-4 of our report dated March 27, 2014, relating to the financial statements and financial highlights comprising each of the Sub-Accounts of MetLife Investors USA Separate Account A and our report dated April 8, 2014, relating to the consolidated financial statements of MetLife Investors USA Insurance Company and subsidiaries (the "Company") (which report expresses an unmodified opinion and includes an other matter paragraph related to the Company being a member of a controlled group), both appearing in the Statement of Additional Information, which is a part of such Registration Statement, and to the reference to us under the heading "Independent Registered Public Accounting Firm" also in such Statement of Additional Information. /s/ DELOITTE & TOUCHE LLP Tampa, Florida November 14, 2014