Document/Exhibit Description Pages Size
1: 485BPOS Mli Usa Growth and Guaranteed Income Va 325 1.62M
Post-Effective Amendment No. 3
4: EX-99.10 Consent of Independent Registered Public 1 7K
Accounting Firm (Deloitte & Touche LLP)
2: EX-99.7(I)(A) Reinsurance Agreement 43 96K
3: EX-99.7(I)(B) Amendment 1 to the Reinsurance Agreement 2 9K
485BPOS — Mli Usa Growth and Guaranteed Income Va Post-Effective Amendment No. 3
Document Table of Contents
As filed with the Securities and Exchange Commission on April 13, 2012
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. 3
[x]
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 443
[x]
(Check Appropriate Box or Boxes)
MetLife Investors USA Separate Account A
(Exact Name of Registrant)
MetLife Investors USA Insurance Company
5 Park Plaza, Suite 1900 Irvine, California 92614
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code
(800) 989-3752
(Name and Address of Agent for Service)
Michael K. Farrell
President
MetLife Investors USA Insurance Company
c/o 10 Park Plaza
Morristown, NJ 07962
(973) 355-4000
COPIES TO:
Stephen E. Roth, Esquire
Sutherland Asbill & Brennan LLP
1275 Pennsylvania Avenue, NW
Washington, DC 20004-2415
(202) 383-0590
(Approximate Date of Proposed Public Offering)
It is proposed that this filing will become effective (check appropriate box):
[] immediately upon filing pursuant to paragraph (b) of Rule 485.
[x] on April 30, 2012 pursuant to paragraph (b) of Rule 485.
[] 60 days after filing pursuant to paragraph (a)(1) of Rule 485.
[] on (date) pursuant to paragraph (a)(1) of Rule 485.
If appropriate, check the following box:
[] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
Title of Securities Registered: Individual Variable Annuity Contracts
THE VARIABLE ANNUITY CONTRACT
ISSUED BY
METLIFE INVESTORS USA INSURANCE COMPANY
AND
METLIFE INVESTORS USA SEPARATE ACCOUNT A
METLIFE GROWTH AND GUARANTEED INCOME/SM/
APRIL 30, 2012
This prospectus describes the single premium deferred variable annuity contract
offered by MetLife Investors USA Insurance Company (MetLife Investors 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 annuitiant(s) provided that specified conditions
are met. This feature does not guarantee the net asset value of the underlying
investment option.
The annuity contract has a single investment choice. 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) 60% PORTFOLIO
Please read this prospectus before investing and keep it on file for future
reference. It contains important information about the MetLife Investors USA
Variable Annuity contract.
To learn more about the MetLife Investors USA Variable Annuity contract, you
can obtain a copy of the Statement of Additional Information (SAI) dated April
30, 2012. 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.
APRIL 30, 2012
2
TABLE OF CONTENTS
[Download Table]
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........................ 15
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........................ 21
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..................................... 25
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
[Download Table]
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 Investors USA............................ 39
The Variable Account............................. 39
Distributor...................................... 39
Selling Firm..................................... 40
Compensation Paid to Selling Firm................ 40
Additional Compensation.......................... 40
Requests and Elections........................... 40
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.
[Download Table]
Page
Accumulation Phase 11
Accumulation Unit 13
Annuitant 42
Annuity Date 19
Annuity Income Options 19
Annuity Payments 19
Beneficiary 42
Business Day 12
Contract Value 14
Contract Year 5
Good Order 41
GWB Amount 25
GWB Value 25
Income Phase 11
Investment Options 15
Joint Annuitants 42
Joint Owners 42
Owner 42
Purchase Payment 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 60% 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, 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 federal tax laws require that we return at least your purchase
payment for at least a portion of the Free Look Period.
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 60% Portfolio.
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 60% Portfolio 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
[Download 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.")
[Download Table]
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 Investors 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.
[Download Table]
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 minimum and maximum total operating expenses charged
by the investment options that you may pay periodically during the time that
you own the contract. 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.
[Download Table]
Minimum (1) Maximum (2)
----------- -----------
Total Annual Portfolio Expenses 0.28% 0.89%
(expenses that are deducted from investment option assets,
including management fees, 12b-1/service fees, and other
expenses)
Note 1. You may not choose to allocate purchase payment or exchange contract
value to the Fidelity VIP Money Market Portfolio. See "Purchase--Free Look" for
more information.
Note 2. 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 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. Net Total
Annual Operating Expenses do not reflect: (1) voluntary waivers of fees or
expenses; (2) contractual waivers that are in effect for less than one year
from the date of this Prospectus; or (3) expense reductions resulting from
custodial fee credits or directed brokerage arrangements.
[Enlarge/Download Table]
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
60% Portfolio 0.25% 0.00% 0.00% 0.64% 0.89% 0.05% 0.84%
Fidelity VIP Money Market
Portfolio 0.17% 0.00% 0.11% 0.00% 0.28% -- 0.28%
Notes:
The investment options provided the information on their expenses, and we have
not independently verified the information. Unless otherwise indicated the
information provided is for the year ended December 31, 2011. The Fidelity VIP
FundsManager 60% Portfolio is a "fund of funds" that invests substantially all
of its assets in other Fidelity funds. Because the Portfolio invests in other
Fidelity funds, the Portfolio will bear its pro rata portion of the operating
expenses of the underlying Fidelity funds in which it invests, including the
management fee. You may not choose to allocate purchase payment or exchange
contract value to the Fidelity VIP Money Market Portfolio. See "Purchase--Free
Look" for more information.
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. % for the Fidelity VIP FundsManager 60% 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:
[Download Table]
-------------------------------
TIME PERIODS
-------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
-------------------------------
$523 $1,165 $1,848 $3,477
-------------------------------
(2) If you do not surrender your contract or if you annuitize at the end of the
applicable time period:
[Download Table]
-------------------------------
TIME PERIODS
-------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
-------------------------------
$323 $985 $1,668 $3,477
-------------------------------
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 60% 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.
If you receive a fixed annuity payment option during the income phase, 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."
Under the Code, spousal continuation and certain distribution options are
available only to a person who is defined as a "spouse" under the Federal
Defense of Marriage Act or other applicable federal law. All contract
provisions will be interpreted and administered in accordance with the
requirements of the Code. Therefore, under current federal law, a purchaser who
has or is contemplating a civil union or same-sex marriage should note that the
favorable tax treatment afforded under federal law would not be available to
such same-sex partner or same-sex spouse. Same-sex partners or spouses who own
or are considering the purchase of annuity products that provide benefits based
upon status as a spouse should consult a tax advisor. Accordingly, a purchaser
who has or is contemplating a civil union or same-sex marriage should note that
such same-sex partner or same-sex spouse would not be able to receive continued
payments after the death of the contract owner under the joint annuitants
version of the GWB (see "Guaranteed Withdrawal Benefit for Life").
In addition, 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.
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 60%
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 60% 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 60% Portfolio. 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 60% Portfolio
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 60% Portfolio 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 offered. 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.
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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 payments received
after the close of the New York Stock Exchange, or on a day when the New York
Stock Exchange is open, 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 60% 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 60% 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.
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3. INVESTMENT OPTIONS
The contract offers two INVESTMENT OPTIONS, which are listed 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). Additional investment options may be available in the future.
YOU SHOULD READ THE PROSPECTUSES FOR THESE FUNDS CAREFULLY. COPIES OF THESE
PROSPECTUSES WILL ACCOMPANY OR PRECEDE THE DELIVERY OF YOUR CONTRACT. YOU CAN
OBTAIN COPIES OF THE FUND PROSPECTUSES BY CALLING 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 variable
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.
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.
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
you have chosen.
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 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.
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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.
Substitution may be made with respect to existing investments or the investment
of future purchase payments, or both. However, we will not make such
substitution without any necessary approval of the Securities and Exchange
Commission and applicable state insurance departments. Furthermore, we may
close investment 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.
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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.
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
(this may include amounts withdrawn pursuant to a divorce or separation
instrument, if permissible under tax law), except as described below.
The surrender charge is calculated at the time of each withdrawal in accordance
with the following:
[Download Table]
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.)
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PREMIUM AND OTHER TAXES
We reserve the right to deduct from purchase payments, account balances,
withdrawals, death benefits or income payments any taxes relating to the
contracts (including, but not limited to, premium taxes) paid by us to any
government entity. Examples of these taxes include, but are not limited to,
premium tax, generation-skipping transfer tax or a similar excise tax under
federal or state tax law which is imposed on payments we make to certain
persons and income tax withholdings on withdrawals and income payments to the
extent required by law. Premium taxes generally range from 0 to 3.5%, depending
on the state. We will, at our sole discretion, determine when taxes relate to
the contracts. We may, at our sole discretion, pay taxes when due and deduct
that amount from the account balance at a later date. Payment at an earlier
date does not waive any right we may have to deduct amounts at a later date. It
is our current practice not to charge premium taxes until annuity payments
begin.
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
account 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.
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5. ANNUITY PAYMENTS (THE INCOME PHASE)
ANNUITY DATE
Under the contract you can receive regular income payments (referred to as
ANNUITY PAYMENTS). You can choose the month and year in which those payments
begin. We call that date the ANNUITY DATE. Your annuity date must be 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 (this requirement may be changed by us).
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. At
contract issue, the adjusted purchase payment is equal to the purchase
payment. The adjusted purchase payment is reduced by withdrawals as follows:
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).
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. The result is the amount by
which the adjusted purchase payment is reduced.
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 by the amount of the GWB Amount for that contract year, then
further reduced for each such withdrawal 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.
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.
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Take the adjusted purchase payment prior to the excess withdrawal and reduce
it by the amount determined in (4).
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 income 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 income
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 income 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
income 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 contract is converted to an annuity income option 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.
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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
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.)
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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.
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 value upon
which the benefit is determined. (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.
Unless you instruct us otherwise, any partial withdrawal will be made pro rata
from the investment option(s) you selected. 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 15
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.)
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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.
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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.
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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 that 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, a 6% Withdrawal Percentage will be used to establish your
eligible GWB Amount on the latest possible annuity date.
[Download Table]
Youngest Annuitant's Age 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.
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.
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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.
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.
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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
contract to an annuity income option. 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 INCOME 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
income 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 income payments as long as each monthly annuity income payment is at
least $20. We reserve the right to pay the GWB Amount as an annual annuity
income payment or in any other payment method that is mutually agreeable to you
and us.
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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 income payments begin, the Return of Purchase Payment death benefit
will be reduced by the amount of each annuity income 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
Amounts have been converted to an annuity income option 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 Amounts have been
converted to an annuity income option 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)).
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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.
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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, equal to the
Purchase Payment reduced by withdrawals as described below.
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).
If you make withdrawals before the youngest annuitant reaches age 59 1/2, the
Return of Purchase Payment death benefit will be reduced 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 in 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. The result is
the amount by which the old Return of Purchase Payment death benefit is
reduced.
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 Return of Return of Purchase Payment death benefit will
be equal to the Return of Purchase Payment death benefit, reduced by the amount
of the GWB Amount for that contract year, then further reduced 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.
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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 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 excess
withdrawal and reduce it by the amount determined in (4). This will
result in a new Return of Purchase Payment death benefit.
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.")
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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.
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 the Federal Defense of Marriage Act or other applicable federal
law. All contract provisions will be interpreted and administered in accordance
with the requirements of the Code. Therefore, under current federal law, a
purchaser who has or is contemplating a civil union or same-sex marriage should
note that the favorable tax treatment afforded under federal law would not be
available to such same-sex partner or same-sex spouse. Same-sex partners or
spouses who own or are considering the purchase of annuity products that
provide benefits based upon status as a spouse should consult a tax advisor.
Accordingly, a purchaser who has or is contemplating a civil union or same-sex
marriage should note that such same-sex partner or same-sex spouse would not be
able to receive continued payments after the death of the contract owner under
the joint annuitants version of the GWB (see "Guaranteed Withdrawal Benefit for
Life").
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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, except as described below, 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
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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 income 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 2007, the five-year
period would end in 2013 instead of 2012. 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.
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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
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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 Income 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
income 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.
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.
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
36
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.
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.
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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.
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11. OTHER INFORMATION
METLIFE INVESTORS USA
MetLife Investors USA Insurance Company (MetLife Investors USA) is a stock life
insurance company founded on September 13, 1960, and organized under the laws
of the State of Delaware. Its principal executive offices are located at 5 Park
Plaza, Suite 1900, Irvine, CA 92614. MetLife Investors USA is authorized to
transact the business of life insurance, including annuities, and is currently
licensed to do business in all states (except New York), 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,
Inc., through its subsidiaries and affiliates, is a leading provider of
insurance and other financial services to individual and institutional
customers.
THE VARIABLE ACCOUNT
We have established a VARIABLE ACCOUNT, MetLife Investors USA Separate Account
A (the "variable account"), 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.
DISTRIBUTOR
We have entered into a distribution agreement with our affiliate, MetLife
Investors Distribution Company (Distributor), 5 Park Plaza, Suite 1900, Irvine,
CA 92614, for the distribution of the contracts. Distributor is a member of the
Financial Industry Regulatory Authority (FINRA). FINRA 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, 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.
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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 income payments (referred to as "annuity payments"). (See "Annuity
Payments--The Income Phase.") Distributor may also provide non-cash
compensation items that we may provide jointly with Distributor. Non-cash items
include expenses for conference or seminar trips and certain gifts.
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.
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
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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).
41
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.
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 Investors USA, similar to other
life insurance companies, is involved in lawsuits (including class action
lawsuits), arbitrations and other legal proceedings. Also, from time to time,
state and federal regulators or other officials conduct formal and informal
examinations or undertake other actions dealing with various aspects of the
financial services and insurance industries. In some legal proceedings
involving insurers, substantial damages have been sought and/or material
settlement payments have been made.
It is not possible to predict with certainty the ultimate outcome of any
pending legal proceeding or regulatory action. However, MetLife Investors USA
does not believe any such action or proceeding will have a material adverse
effect upon the variable account or upon the ability of MetLife Investors
Distribution Company to perform its contract with the variable account or of
MetLife Investors 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
[Download Table]
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 FUNDSMANAGER
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
2.05% SEPARATE ACCOUNT PRODUCT CHARGES
[Download Table]
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 FUNDSMANAGER
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
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 chosen. 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 chosen. 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 page 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 page 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 page 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 GUARANTEED
INCOME(SM) VARIABLE ANNUITY
THIS IS NOT A PROSPECTUS. THIS STATEMENT OF ADDITIONAL INFORMATION SHOULD BE
READ IN CONJUNCTION WITH THE PROSPECTUS DATED APRIL 30, 2012, 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 APRIL 30, 2012.
SAI-0412USAMGGI
TABLE OF CONTENTS
[Download Table]
Page
COMPANY............................................. 3
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM....... 3
CUSTODIAN........................................... 3
DISTRIBUTION........................................ 3
CALCULATION OF PERFORMANCE INFORMATION.............. 5
Total Return..................................... 5
Historical Unit Values........................... 5
Reporting Agencies............................... 6
ANNUITY PROVISIONS.................................. 6
Fixed Annuity.................................... 6
Mortality and Expense Guarantee.................. 6
Legal or Regulatory Restrictions on Transactions. 7
TAX STATUS OF THE CONTRACTS......................... 7
FINANCIAL STATEMENTS................................ 8
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 5 Park
Plaza, Suite 1900 Irvine, CA 92614. MetLife Investors USA is authorized to
transact the business of life insurance, including annuities, and is currently
licensed to do business in all states (except New York) and the District of
Columbia. On October 11, 2006, MetLife Investors USA became a wholly-owned
subsidiary of MetLife Insurance Company of Connecticut. We changed our name to
MetLife Investors USA Insurance Company on January 8, 2001. On December 31,
2002, MetLife Investors USA became an indirect subsidiary of MetLife, Inc., a
listed company on the New York Stock Exchange. MetLife, Inc., through its
subsidiaries and affiliates, is a leading provider of insurance and other
financial services to individual and institutional customers.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The financial statements and financial highlights comprising each of the
Sub-Accounts of MetLife Investors USA Separate Account A, included in this
Statement of Additional Information, have been audited by Deloitte & Touche
LLP, an independent registered public accounting firm, as stated in their
report appearing herein. Such financial statements and financial highlights
have been so included in reliance upon the report of such firm given upon their
authority as experts in accounting and auditing.
The consolidated financial statements of MetLife Investors USA Insurance
Company (the "Company"), included in this Statement of Additional Information,
have been audited by Deloitte & Touche LLP, independent auditors, as stated in
their report appearing herein (which report expresses an unqualified opinion
and includes an explanatory paragraph referring to changes in the Company's
method of accounting for the recognition and presentation of
other-than-temporary impairment losses for certain investments as required by
accounting guidance adopted on April 1, 2009). Such financial statements have
been so included in reliance upon the report of such firm given upon their
authority as experts in accounting and auditing.
The principal business address of Deloitte & Touche LLP is Two World Financial
Center, New York, New York 10281-1414.
CUSTODIAN
MetLife Investors USA Insurance Company, 5 Park Plaza, Suite 1900, Irvine, CA
92614, is the custodian of the assets of the Separate Account. The custodian
has custody of all cash of the Separate Account and handles the collection of
proceeds of shares of the underlying funds bought and sold by the Separate
Account.
DISTRIBUTION
Information about the distribution of the contracts is contained in the
prospectus. (See "Other Information.") Additional information is provided below.
The contracts are offered to the public on a continuous basis. We anticipate
continuing to offer the contracts, but reserve the right to discontinue the
offering.
MetLife Investors Distribution Company ("Distributor") serves as principal
underwriter for the contracts. Distributor is a Missouri corporation and its
home office is located at 5 Park Plaza, Suite 1900, Irvine, CA 92614. In
December 2004, MetLife Investors Distribution Company, which was then a
Delaware corporation, was merged into General American Distributors, Inc., and
the name of the surviving corporation was changed to
3
MetLife Investors Distribution Company. Distributor is an indirect,
wholly-owned subsidiary of MetLife, Inc. Distributor is registered as a
broker-dealer with the Securities and Exchange Commission under the Securities
Exchange Act of 1934 and is a member of the Financial Industry Regulatory
Authority ("FINRA"). Distributor is not a member of the Securities Investor
Protection Corporation. Distributor has entered into selling agreements with
other broker-dealers ("selling firms") and compensates them for their services.
Distributor (including its predecessor) received sales compensation with
respect to all contracts issued from the Separate Account in the following
amounts during the periods indicated:
[Download Table]
Underwriting
Commissions Paid Amount of
to Distributor By Underwriting Commissions
Fiscal year the Company Retained by Distributor
----------- ----------------- ------------------------
2009..... $ 444,678,204 $0
2010..... $ 619,025,695 $0
2011..... $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 2011 ranged from $0 to $25,311,993.* The
amount of commissions paid to selected selling firms during 2011 ranged from
$600 to $84,886,349. The amount of total compensation (includes non-commission
as well as commission amounts) paid to selected selling firms during 2011
ranged from $600 to $87,026,602.*
* For purposes of calculating this range, the additional compensation
(non-commission) amounts received by a selling firm includes additional
compensation received by the firm for the sale of insurance products issued
by our affiliates First MetLife Investors Insurance Company, MetLife
Investors Insurance Company and MetLife Insurance Company of Connecticut.
In view of the fact that the contracts are newly offered, none of the amounts
described herein were paid in connection with the contracts.
The following list sets forth the names of selling firms that received
additional compensation in 2011 in connection with the sale of our variable
annuity contracts, variable life policies and other insurance products. The
selling firms are listed in alphabetical order.
Ameriprise Financial Services, Inc., AXA Advisors, LLC, BBVA Compass Investment
Solutions, Inc., Capital Investments Group, Inc., CCO Investment Services
Corp., Centaurus Financial, Inc., Citigroup Global Markets, Inc., Commonwealth
Financial Network, CUSO Financial Services, L.P., Edward D. Jones & Co., L.P.,
Essex National Securities, Inc., FSC Securities Corporation, First Allied
Securities, Inc., First Tennessee Brokerage, Inc., Founders Financial
Securities, LLC, H. D. Vest Investment Securities, Inc., J.J.B. Hilliard, W.L.
Lyons, LLC, ING Financial Partners, Inc., Investment Professionals, Inc.,
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 Keegan & Company, Inc., Morgan Stanley Smith Barney, LLC,
National Planning Corporation, NEXT Financial Group, NFP Securities, Inc., PNC
Investments LLC, ProEquities, Inc., Raymond James & Associates, Inc.,
4
Raymond James Financial Services, Inc., RBC Wealth Management, Royal Alliance
Associates, Inc., SagePoint Financial, Inc., Sammons Securities Company, LLC,
Securities America, Inc., Sigma Financial Corporation, Stifel, Nicolaus &
Company, Incorporated, Tower Square Securities, Inc., Transamerica Financial
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., Walnut Street Securities, Inc., Wells Fargo
Advisors, LLC, Wells Fargo Advisors Financial Network, 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.
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
[Enlarge/Download Table]
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.
5
Owners should note that the investment results of each investment portfolio
will fluctuate over time, and any presentation of the investment portfolio's
total return for any period should not be considered as a representation of
what an investment may earn or what the total return may be in any future
period.
HISTORICAL UNIT VALUES
The Company may also show historical accumulation unit values in certain
advertisements containing illustrations. These illustrations will be based on
actual accumulation unit values.
In addition, the Company may distribute sales literature which compares the
percentage change in accumulation unit values for any of the investment
portfolios against established market indices such as the Standard & Poor's 500
Composite Stock Price Index, the Dow Jones Industrial Average or other
management investment companies which have investment objectives similar to the
investment portfolio being compared. The Standard & Poor's 500 Composite Stock
Price Index is an unmanaged, unweighted average of 500 stocks, the majority of
which are listed on the New York Stock Exchange. The Dow Jones Industrial
Average is an unmanaged, weighted average of thirty blue chip industrial
corporations listed on the New York Stock Exchange. Both the Standard & Poor's
500 Composite Stock Price Index and the Dow Jones Industrial Average assume
quarterly reinvestment of dividends.
REPORTING AGENCIES
The Company may also distribute sales literature which compares the performance
of the accumulation unit values of the Contracts with the unit values of
variable annuities issued by other insurance companies. Such information will
be derived from the Lipper Variable Insurance Products Performance Analysis
Service, the VARDS Report or from Morningstar.
The Lipper Variable Insurance Products Performance Analysis Service is
published by Lipper Analytical Services, Inc., a publisher of statistical data
which currently tracks the performance of thousands of investment companies.
The rankings compiled by Lipper may or may not reflect the deduction of
asset-based insurance charges. The Company's sales literature utilizing these
rankings will indicate whether or not such charges have been deducted. Where
the charges have not been deducted, the sales literature will indicate that if
the charges had been deducted, the ranking might have been lower.
The VARDS Report is a monthly variable annuity industry analysis compiled by
Variable Annuity Research & Data Service. The VARDS rankings may or may not
reflect the deduction of asset-based insurance charges. In addition, VARDS
prepares risk adjusted rankings, which consider the effects of market risk on
total return performance. This type of ranking may address the question as to
which funds provide the highest total return with the least amount of risk.
Other ranking services may be used as sources of performance comparison, such
as CDA/Weisenberger.
Morningstar rates a variable annuity against its peers with similar investment
objectives. Morningstar does not rate any variable annuity that has less than
three years of performance data.
ANNUITY PROVISIONS
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
6
less than those guaranteed in your contract at the time of purchase. If, as of
the annuity calculation date, the then current annuity option rates applicable
to this class of contracts provide an annuity payment greater than that which
is guaranteed under the same annuity option under this contract, the greater
payment will be made.
MORTALITY AND EXPENSE GUARANTEE
The Company guarantees that the dollar amount of each annuity payment after the
first annuity payment will not be affected by variations in mortality or
expense experience.
LEGAL OR REGULATORY RESTRICTIONS ON TRANSACTIONS
If mandated under applicable law, the Company may be required to reject a
premium payment. The Company may also be required to block a contract owner's
account and thereby refuse to pay any request for transfers, withdrawals,
surrenders, death benefits or continue making annuity payments until
instructions are received from the appropriate regulator.
TAX STATUS OF THE CONTRACTS
Tax law imposes several requirements that variable annuities must satisfy in
order to receive the tax treatment normally accorded to annuity contracts.
DIVERSIFICATION. In order for your Non-Qualified Contract to be considered an
annuity contract for federal income tax purposes, we must comply with certain
diversification standards with respect to the investments underlying the
contract. We believe that we satisfy and will continue to satisfy these
diversification standards. However, the tax law concerning these rules is
subject to change and to different interpretations. Inadvertent failure to meet
these standards may be correctable. Failure to meet these standards would
result in immediate taxation to contract owners of gains under their contracts.
Consult your tax adviser prior to purchase.
If underlying fund shares are sold directly to tax-qualified retirement plans
that later lose their tax-qualified status or to non-qualified plans, the
separate accounts investing in the underlying fund may fail the diversification
requirements of Section 817, which could have adverse tax consequences for
variable contract owners, including losing the benefit of tax deferral.
REQUIRED DISTRIBUTIONS. In order to be treated as an annuity contract for
federal income tax purposes, Section 72(s) of the Code generally requires any
Non-Qualified Contract to contain certain provisions specifying how your
interest in the contract will be distributed in the event of the death of an
owner of the contract (or on the death of, or change in, any primary annuitant
where the contract is owned by a non-natural person). Specifically,
Section 72(s) requires that: (a) if any owner dies on or after the annuity
starting date, but prior to the time the entire interest in the contract has
been distributed, the entire interest in the contract will be distributed at
least as rapidly as under the method of distribution being used as of the date
of such owner's death; and (b) if any owner dies prior to the annuity starting
date, the entire interest in the contract will be distributed within five years
after the date of such owner's death. These requirements will be considered
satisfied as to any portion of an owner's interest which is payable to or for
the benefit of a designated beneficiary and which is distributed over the life
of such designated beneficiary or over a period not extending beyond the life
expectancy of that beneficiary, provided that such distributions begin within
one year of the owner's death. The designated beneficiary refers to a natural
person designated by the owner as a beneficiary and to whom ownership of the
contract passes by reason of death. However, if the designated beneficiary is
the surviving spouse of the deceased owner, the contract may be continued with
the surviving spouse as the new owner.
The Non-Qualified Contracts contain provisions that are intended to comply with
these Code requirements, although no regulations interpreting these
requirements have yet been issued. We intend to review such provisions and
modify them if necessary to assure that they comply with the applicable
requirements when such requirements are clarified by regulation or otherwise.
7
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.
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 2007, the five year
period ends in 2013 instead of 2012. 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.
8
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, 2011, 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,
2011, 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, 2011, 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 29, 2012
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METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 2011
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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 $ 51,540,009 $ 116,697,302 $ 200,460,234 $ 76,801,933
Due from MetLife Investors
USA Insurance Company -- -- 15 1
---------------- -------------- -------------- --------------
Total Assets 51,540,009 116,697,302 200,460,249 76,801,934
---------------- -------------- -------------- --------------
LIABILITIES:
Accrued fees -- 33 64 46
Due to MetLife Investors
USA Insurance Company 2 2 -- --
---------------- -------------- -------------- --------------
Total Liabilities 2 35 64 46
---------------- -------------- -------------- --------------
NET ASSETS $ 51,540,007 $ 116,697,267 $ 200,460,185 $ 76,801,888
================ ============== ============== ==============
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 51,540,007 $ 116,690,095 $ 200,454,173 $ 76,801,888
Net assets from contracts in payout -- 7,172 6,012 --
---------------- -------------- -------------- --------------
Total Net Assets $ 51,540,007 $ 116,697,267 $ 200,460,185 $ 76,801,888
================ ============== ============== ==============
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, 2011
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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 $ 577,437,696 $ 272,388,987 $ 15,659,301 $ 30,585
Due from MetLife Investors
USA Insurance Company 12 2 -- --
-------------- -------------- ------------- --------------
Total Assets 577,437,708 272,388,989 15,659,301 30,585
-------------- -------------- ------------- --------------
LIABILITIES:
Accrued fees 78 80 6 8
Due to MetLife Investors
USA Insurance Company -- -- 10 5
-------------- -------------- ------------- --------------
Total Liabilities 78 80 16 13
-------------- -------------- ------------- --------------
NET ASSETS $ 577,437,630 $ 272,388,909 $ 15,659,285 $ 30,572
============== ============== ============= ==============
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 577,426,059 $ 272,380,413 $ 15,659,285 $ 30,572
Net assets from contracts in payout 11,571 8,496 -- --
-------------- -------------- ------------- --------------
Total Net Assets $ 577,437,630 $ 272,388,909 $ 15,659,285 $ 30,572
============== ============== ============= ==============
The accompanying notes are an integral part of these financial statements.
2
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FEDERATED FEDERATED MANAGED FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP
KAUFMAN VOLATILITY ASSET MANAGER CONTRAFUND EQUITY-INCOME FUNDSMANAGER 60%
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------- ----------------- ------------- ------------- ------------- ----------------
$ 58,463 $ 9,179 $ 87,071,351 $ 388,527,027 $ 5,489,918 $ 2,591,601,268
-- -- -- 8 -- --
----------- ----------------- ------------- ------------- ------------- ----------------
58,463 9,179 87,071,351 388,527,035 5,489,918 2,591,601,268
----------- ----------------- ------------- ------------- ------------- ----------------
7 7 8 70 -- --
2 2 6 -- -- 3
----------- ----------------- ------------- ------------- ------------- ----------------
9 9 14 70 -- 3
----------- ----------------- ------------- ------------- ------------- ----------------
$ 58,454 $ 9,170 $ 87,071,337 $ 388,526,965 $ 5,489,918 $ 2,591,601,265
=========== ================= ============= ============= ============= ================
$ 58,454 $ 9,170 $ 87,071,337 $ 388,526,965 $ 5,489,918 $ 2,591,601,265
-- -- -- -- -- --
----------- ----------------- ------------- ------------- ------------- ----------------
$ 58,454 $ 9,170 $ 87,071,337 $ 388,526,965 $ 5,489,918 $ 2,591,601,265
=========== ================= ============= ============= ============= ================
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, 2011
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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 $ 131,974,707 $ 60,061,923 $ 237,701,498 $ 73,068,657
Due from MetLife Investors
USA Insurance Company 7 4 11 --
------------- ------------ ------------- ------------
Total Assets 131,974,714 60,061,927 237,701,509 73,068,657
------------- ------------ ------------- ------------
LIABILITIES:
Accrued fees 5 10 8 16
Due to MetLife Investors
USA Insurance Company -- -- -- 9
------------- ------------ ------------- ------------
Total Liabilities 5 10 8 25
------------- ------------ ------------- ------------
NET ASSETS $ 131,974,709 $ 60,061,917 $ 237,701,501 $ 73,068,632
============= ============ ============= ============
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 131,974,709 $ 60,061,917 $ 237,701,501 $ 73,068,632
Net assets from contracts in payout -- -- -- --
------------- ------------ ------------- ------------
Total Net Assets $ 131,974,709 $ 60,061,917 $ 237,701,501 $ 73,068,632
============= ============ ============= ============
The accompanying notes are an integral part of these financial statements.
4
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FTVIPT FRANKLIN FTVIPT TEMPLETON
FIDELITY VIP FTVIPT FRANKLIN SMALL CAP VALUE FTVIPT MUTUAL FTVIPT TEMPLETON GLOBAL BOND
OVERSEAS INCOME SECURITIES SECURITIES SHARES SECURITIES FOREIGN SECURITIES SECURITIES
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ----------------- --------------- ----------------- ------------------ ----------------
$ 4,664,197 $ 206,611,208 $ 50,705,726 $ 118,532,891 $ 69,009,247 $ 139,986,060
-- 7 -- 2 5 --
------------ ----------------- --------------- ----------------- ------------------ ----------------
4,664,197 206,611,215 50,705,726 118,532,893 69,009,252 139,986,060
------------ ----------------- --------------- ----------------- ------------------ ----------------
-- 66 29 23 59 19
5 -- -- -- -- --
------------ ----------------- --------------- ----------------- ------------------ ----------------
5 66 29 23 59 19
------------ ----------------- --------------- ----------------- ------------------ ----------------
$ 4,664,192 $ 206,611,149 $ 50,705,697 $ 118,532,870 $ 69,009,193 $ 139,986,041
============ ================= =============== ================= ================== ================
$ 4,664,192 $ 206,607,597 $ 50,705,697 $ 118,532,870 $ 69,009,193 $ 139,986,041
-- 3,552 -- -- -- --
------------ ----------------- --------------- ----------------- ------------------ ----------------
$ 4,664,192 $ 206,611,149 $ 50,705,697 $ 118,532,870 $ 69,009,193 $ 139,986,041
============ ================= =============== ================= ================== ================
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, 2011
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INVESCO V.I. INVESCO V.I. INVESCO V.I. INVESCO V.I.
CAPITAL APPRECIATION CORE EQUITY GLOBAL REAL ESTATE INTERNATIONAL GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------- ------------ ------------------ --------------------
ASSETS:
Investments at fair value $ 101,087 $ 276,763 $ 13,467,314 $ 154,099,069
Due from MetLife Investors
USA Insurance Company -- -- -- --
-------------------- ------------ ------------------ --------------------
Total Assets 101,087 276,763 13,467,314 154,099,069
-------------------- ------------ ------------------ --------------------
LIABILITIES:
Accrued fees -- -- 50 13
Due to MetLife Investors
USA Insurance Company 4 2 -- 6
-------------------- ------------ ------------------ --------------------
Total Liabilities 4 2 50 19
-------------------- ------------ ------------------ --------------------
NET ASSETS $ 101,083 $ 276,761 $ 13,467,264 $ 154,099,050
==================== ============ ================== ====================
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 101,083 $ 276,761 $ 13,467,264 $ 154,099,050
Net assets from contracts in payout -- -- -- --
-------------------- ------------ ------------------ --------------------
Total Net Assets $ 101,083 $ 276,761 $ 13,467,264 $ 154,099,050
==================== ============ ================== ====================
The accompanying notes are an integral part of these financial statements.
6
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INVESCO V.I. INVESCO V.I. INVESCO V.I. INVESCO V.I. LMPVET
VAN KAMPEN VAN KAMPEN VAN KAMPEN VAN KAMPEN JANUS ASPEN CLEARBRIDGE VARIABLE
CAPITAL GROWTH EQUITY AND INCOME GROWTH AND INCOME MID CAP VALUE WORLDWIDE AGGRESSIVE GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- ----------------- ----------------- ------------- ----------- --------------------
$ 90,037 $ 414,357,267 $ 206,338,267 $ 47,014,140 $ 4,757 $ 160,839,361
-- 2 -- -- -- 11
-------------- ----------------- ----------------- ------------- ----------- --------------------
90,037 414,357,269 206,338,267 47,014,140 4,757 160,839,372
-------------- ----------------- ----------------- ------------- ----------- --------------------
-- 7 32 21 6 151
4 -- 4 2 1 --
-------------- ----------------- ----------------- ------------- ----------- --------------------
4 7 36 23 7 151
-------------- ----------------- ----------------- ------------- ----------- --------------------
$ 90,033 $ 414,357,262 $ 206,338,231 $ 47,014,117 $ 4,750 $ 160,839,221
============== ================= ================= ============= =========== ====================
$ 90,033 $ 414,357,262 $ 206,338,231 $ 47,014,117 $ 4,750 $ 160,832,653
-- -- -- -- -- 6,568
-------------- ----------------- ----------------- ------------- ----------- --------------------
$ 90,033 $ 414,357,262 $ 206,338,231 $ 47,014,117 $ 4,750 $ 160,839,221
============== ================= ================= ============= =========== ====================
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, 2011
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LMPVET LMPVET
LMPVET CLEARBRIDGE CLEARBRIDGE VARIABLE LMPVET
CLEARBRIDGE VARIABLE VARIABLE EQUITY FUNDAMENTAL CLEARBRIDGE VARIABLE
APPRECIATION INCOME BUILDER ALL CAP VALUE LARGE CAP GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------- --------------- -------------------- --------------------
ASSETS:
Investments at fair value $ 224,680,396 $ 103,322,939 $ 95,718,200 $ 4,673,857
Due from MetLife Investors
USA Insurance Company 12 -- 12 3
-------------------- --------------- -------------------- --------------------
Total Assets 224,680,408 103,322,939 95,718,212 4,673,860
-------------------- --------------- -------------------- --------------------
LIABILITIES:
Accrued fees 38 84 76 64
Due to MetLife Investors
USA Insurance Company -- -- -- --
-------------------- --------------- -------------------- --------------------
Total Liabilities 38 84 76 64
-------------------- --------------- -------------------- --------------------
NET ASSETS $ 224,680,370 $ 103,322,855 $ 95,718,136 $ 4,673,796
==================== =============== ==================== ====================
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 224,680,370 $ 103,322,855 $ 95,718,136 $ 4,673,796
Net assets from contracts in payout -- -- -- --
-------------------- --------------- -------------------- --------------------
Total Net Assets $ 224,680,370 $ 103,322,855 $ 95,718,136 $ 4,673,796
==================== =============== ==================== ====================
The accompanying notes are an integral part of these financial statements.
8
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LMPVET LMPVET LMPVET INVESTMENT LMPVET LMPVET LMPVET
CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE COUNSEL VARIABLE VARIABLE LIFESTYLE VARIABLE LIFESTYLE VARIABLE LIFESTYLE
LARGE CAP VALUE SMALL CAP GROWTH SOCIAL AWARENESS ALLOCATION 50% ALLOCATION 70% ALLOCATION 85%
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------- -------------------- ----------------- ------------------ ------------------ ------------------
$ 3,836,435 $ 42,564,883 $ 501,405 $ 24,265,725 $ 3,086,973 $ 65,879,503
1 4 -- -- -- 1
-------------------- -------------------- ----------------- ------------------ ------------------ ------------------
3,836,436 42,564,887 501,405 24,265,725 3,086,973 65,879,504
-------------------- -------------------- ----------------- ------------------ ------------------ ------------------
77 110 31 28 28 32
-- -- 1 2 2 --
-------------------- -------------------- ----------------- ------------------ ------------------ ------------------
77 110 32 30 30 32
-------------------- -------------------- ----------------- ------------------ ------------------ ------------------
$ 3,836,359 $ 42,564,777 $ 501,373 $ 24,265,695 $ 3,086,943 $ 65,879,472
==================== ==================== ================= ================== ================== ==================
$ 3,836,359 $ 42,564,777 $ 501,373 $ 24,265,695 $ 3,086,943 $ 65,879,472
-- -- -- -- -- --
-------------------- -------------------- ----------------- ------------------ ------------------ ------------------
$ 3,836,359 $ 42,564,777 $ 501,373 $ 24,265,695 $ 3,086,943 $ 65,879,472
==================== ==================== ================= ================== ================== ==================
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, 2011
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LMPVIT WESTERN
ASSET VARIABLE GLOBAL MFS VIT MFS VIT
HIGH YIELD BOND INVESTORS TRUST NEW DISCOVERY MFS VIT RESEARCH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------- --------------- ------------- ----------------
ASSETS:
Investments at fair value $ 69,717,995 $ 34,001 $ 41,383 $ 45,153
Due from MetLife Investors
USA Insurance Company 1 -- -- --
--------------------- --------------- ------------- ----------------
Total Assets 69,717,996 34,001 41,383 45,153
--------------------- --------------- ------------- ----------------
LIABILITIES:
Accrued fees 93 4 5 5
Due to MetLife Investors
USA Insurance Company -- 3 4 6
--------------------- --------------- ------------- ----------------
Total Liabilities 93 7 9 11
--------------------- --------------- ------------- ----------------
NET ASSETS $ 69,717,903 $ 33,994 $ 41,374 $ 45,142
===================== =============== ============= ================
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 69,715,222 $ 33,994 $ 41,374 $ 45,142
Net assets from contracts in payout 2,681 -- -- --
--------------------- --------------- ------------- ----------------
Total Net Assets $ 69,717,903 $ 33,994 $ 41,374 $ 45,142
===================== =============== ============= ================
The accompanying notes are an integral part of these financial statements.
10
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MIST
ALLIANCEBERNSTEIN MIST AMERICAN MIST AMERICAN
GLOBAL DYNAMIC FUNDS BALANCED MIST AMERICAN FUNDS GROWTH MIST AMERICAN MIST AMERICAN
ALLOCATION ALLOCATION FUNDS BOND ALLOCATION FUNDS GROWTH FUNDS INTERNATIONAL
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------- --------------- ------------- --------------- ------------- -------------------
$ 1,639,379,150 $ 2,914,777,216 $ 349,346,260 $ 1,398,390,786 $ 553,292,870 $ 296,765,134
-- 2 3 3 1 --
----------------- --------------- ------------- --------------- ------------- -------------------
1,639,379,150 2,914,777,218 349,346,263 1,398,390,789 553,292,871 296,765,134
----------------- --------------- ------------- --------------- ------------- -------------------
73 30 23 67 65 61
-- -- -- -- -- --
----------------- --------------- ------------- --------------- ------------- -------------------
73 30 23 67 65 61
----------------- --------------- ------------- --------------- ------------- -------------------
$ 1,639,379,077 $ 2,914,777,188 $ 349,346,240 $ 1,398,390,722 $ 553,292,806 $ 296,765,073
================= =============== ============= =============== ============= ===================
$ 1,639,379,077 $ 2,914,769,736 $ 349,346,240 $ 1,398,329,228 $ 553,292,806 $ 296,765,073
-- 7,452 -- 61,494 -- --
----------------- --------------- ------------- --------------- ------------- -------------------
$ 1,639,379,077 $ 2,914,777,188 $ 349,346,240 $ 1,398,390,722 $ 553,292,806 $ 296,765,073
================= =============== ============= =============== ============= ===================
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, 2011
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MIST AMERICAN MIST AQR MIST BLACKROCK
FUNDS MODERATE GLOBAL RISK GLOBAL TACTICAL MIST BLACKROCK
ALLOCATION BALANCED STRATEGIES HIGH YIELD
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------- --------------- --------------- --------------
ASSETS:
Investments at fair value $ 1,683,464,945 $ 1,898,124,108 $ 2,842,712,324 $ 221,624,957
Due from MetLife Investors
USA Insurance Company 2 -- -- --
--------------- --------------- --------------- --------------
Total Assets 1,683,464,947 1,898,124,108 2,842,712,324 221,624,957
--------------- --------------- --------------- --------------
LIABILITIES:
Accrued fees 51 24 39 115
Due to MetLife Investors
USA Insurance Company -- 1 -- 1
--------------- --------------- --------------- --------------
Total Liabilities 51 25 39 116
--------------- --------------- --------------- --------------
NET ASSETS $ 1,683,464,896 $ 1,898,124,083 $ 2,842,712,285 $ 221,624,841
=============== =============== =============== ==============
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 1,683,418,559 $ 1,898,124,083 $ 2,842,712,285 $ 221,619,314
Net assets from contracts in payout 46,337 -- -- 5,527
--------------- --------------- --------------- --------------
Total Net Assets $ 1,683,464,896 $ 1,898,124,083 $ 2,842,712,285 $ 221,624,841
=============== =============== =============== ==============
The accompanying notes are an integral part of these financial statements.
12
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MIST
MIST BLACKROCK MIST CLARION MIST DREMAN MIST GOLDMAN HARRIS OAKMARK MIST INVESCO SMALL
LARGE CAP CORE GLOBAL REAL ESTATE SMALL CAP VALUE SACHS MID CAP VALUE INTERNATIONAL CAP GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- ------------------ --------------- ------------------- -------------- ------------------
$ 12,849,938 $ 147,447,125 $ 21,224,479 $ 130,696,316 $ 461,860,609 $ 212,672,946
-- 7 1 9 8 12
-------------- ------------------ --------------- ------------------- -------------- ------------------
12,849,938 147,447,132 21,224,480 130,696,325 461,860,617 212,672,958
-------------- ------------------ --------------- ------------------- -------------- ------------------
88 76 199 53 79 163
1 -- -- -- -- --
-------------- ------------------ --------------- ------------------- -------------- ------------------
89 76 199 53 79 163
-------------- ------------------ --------------- ------------------- -------------- ------------------
$ 12,849,849 $ 147,447,056 $ 21,224,281 $ 130,696,272 $ 461,860,538 $ 212,672,795
============== ================== =============== =================== ============== ==================
$ 12,849,849 $ 147,424,177 $ 21,224,281 $ 130,668,028 $ 461,749,370 $ 212,625,580
-- 22,879 -- 28,244 111,168 47,215
-------------- ------------------ --------------- ------------------- -------------- ------------------
$ 12,849,849 $ 147,447,056 $ 21,224,281 $ 130,696,272 $ 461,860,538 $ 212,672,795
============== ================== =============== =================== ============== ==================
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, 2011
[Enlarge/Download Table]
MIST LEGG MASON
MIST LAZARD CLEARBRIDGE MIST LOOMIS SAYLES
MIST JANUS FORTY MID CAP AGGRESSIVE GROWTH GLOBAL MARKETS
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------- ------------- ----------------- ------------------
ASSETS:
Investments at fair value $ 68,769,211 $ 131,200,149 $ 265,479,131 $ 165,018,257
Due from MetLife Investors
USA Insurance Company 25 8 2 4
---------------- ------------- ----------------- ------------------
Total Assets 68,769,236 131,200,157 265,479,133 165,018,261
---------------- ------------- ----------------- ------------------
LIABILITIES:
Accrued fees 156 90 71 54
Due to MetLife Investors
USA Insurance Company -- -- -- --
---------------- ------------- ----------------- ------------------
Total Liabilities 156 90 71 54
---------------- ------------- ----------------- ------------------
NET ASSETS $ 68,769,080 $ 131,200,067 $ 265,479,062 $ 165,018,207
================ ============= ================= ==================
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 68,769,080 $ 131,163,131 $ 265,461,475 $ 165,018,207
Net assets from contracts in payout -- 36,936 17,587 --
---------------- ------------- ----------------- ------------------
Total Net Assets $ 68,769,080 $ 131,200,067 $ 265,479,062 $ 165,018,207
================ ============= ================= ==================
The accompanying notes are an integral part of these financial statements.
14
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MIST MET/FRANKLIN MIST MET/FRANKLIN
MIST LORD ABBETT MIST LORD ABBETT MIST MET/EATON LOW DURATION MIST MET/FRANKLIN TEMPLETON
BOND DEBENTURE MID CAP VALUE VANCE FLOATING RATE TOTAL RETURN MUTUAL SHARES FOUNDING STRATEGY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------- ---------------- ------------------- ----------------- ----------------- -----------------
$ 255,107,654 $ 127,004,791 $ 43,696,857 $ 27,661,931 $ 152,876,720 $ 592,611,819
6 6 -- -- -- 2
---------------- ---------------- ------------------- ----------------- ----------------- -----------------
255,107,660 127,004,797 43,696,857 27,661,931 152,876,720 592,611,821
---------------- ---------------- ------------------- ----------------- ----------------- -----------------
112 108 88 99 95 47
-- -- -- -- -- --
---------------- ---------------- ------------------- ----------------- ----------------- -----------------
112 108 88 99 95 47
---------------- ---------------- ------------------- ----------------- ----------------- -----------------
$ 255,107,548 $ 127,004,689 $ 43,696,769 $ 27,661,832 $ 152,876,625 $ 592,611,774
================ ================ =================== ================= ================= =================
$ 254,861,726 $ 127,000,221 $ 43,696,769 $ 27,661,832 $ 152,876,625 $ 592,597,041
245,822 4,468 -- -- -- 14,733
---------------- ---------------- ------------------- ----------------- ----------------- -----------------
$ 255,107,548 $ 127,004,689 $ 43,696,769 $ 27,661,832 $ 152,876,625 $ 592,611,774
================ ================ =================== ================= ================= =================
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, 2011
[Enlarge/Download Table]
MIST MET/TEMPLETON MIST MET/TEMPLETON MIST METLIFE MIST METLIFE
GROWTH INTERNATIONAL BOND AGGRESSIVE STRATEGY BALANCED PLUS
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------ ------------------ ------------------- ---------------
ASSETS:
Investments at fair value $ 49,144,229 $ 51,093,319 $ 524,691,888 $ 2,411,774,692
Due from MetLife Investors
USA Insurance Company -- -- 10 --
------------------ ------------------ ------------------- ---------------
Total Assets 49,144,229 51,093,319 524,691,898 2,411,774,692
------------------ ------------------ ------------------- ---------------
LIABILITIES:
Accrued fees 95 51 34 29
Due to MetLife Investors
USA Insurance Company -- -- -- 2
------------------ ------------------ ------------------- ---------------
Total Liabilities 95 51 34 31
------------------ ------------------ ------------------- ---------------
NET ASSETS $ 49,144,134 $ 51,093,268 $ 524,691,864 $ 2,411,774,661
================== ================== =================== ===============
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 49,144,134 $ 51,093,268 $ 524,635,464 $ 2,411,774,661
Net assets from contracts in payout -- -- 56,400 --
------------------ ------------------ ------------------- ---------------
Total Net Assets $ 49,144,134 $ 51,093,268 $ 524,691,864 $ 2,411,774,661
================== ================== =================== ===============
The accompanying notes are an integral part of these financial statements.
16
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MIST MFS
MIST METLIFE MIST METLIFE MIST METLIFE MIST METLIFE MIST MFS EMERGING RESEARCH
BALANCED STRATEGY DEFENSIVE STRATEGY GROWTH STRATEGY MODERATE STRATEGY MARKETS EQUITY INTERNATIONAL
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------- ------------------ --------------- ----------------- ----------------- -------------
$ 6,764,659,111 $ 2,228,739,705 $ 4,926,470,917 $ 3,324,311,722 $ 369,675,249 $ 285,814,917
9 9 11 3 5 13
----------------- ------------------ --------------- ----------------- ----------------- -------------
6,764,659,120 2,228,739,714 4,926,470,928 3,324,311,725 369,675,254 285,814,930
----------------- ------------------ --------------- ----------------- ----------------- -------------
34 49 47 70 91 103
-- -- -- -- -- --
----------------- ------------------ --------------- ----------------- ----------------- -------------
34 49 47 70 91 103
----------------- ------------------ --------------- ----------------- ----------------- -------------
$ 6,764,659,086 $ 2,228,739,665 $ 4,926,470,881 $ 3,324,311,655 $ 369,675,163 $ 285,814,827
================= ================== =============== ================= ================= =============
$ 6,763,669,694 $ 2,228,439,348 $ 4,926,338,486 $ 3,324,016,629 $ 369,673,342 $ 285,738,180
989,392 300,317 132,395 295,026 1,821 76,647
----------------- ------------------ --------------- ----------------- ----------------- -------------
$ 6,764,659,086 $ 2,228,739,665 $ 4,926,470,881 $ 3,324,311,655 $ 369,675,163 $ 285,814,827
================= ================== =============== ================= ================= =============
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, 2011
[Enlarge/Download Table]
MIST MORGAN STANLEY MIST OPPENHEIMER MIST PIMCO INFLATION MIST PIMCO
MID CAP GROWTH CAPITAL APPRECIATION PROTECTED BOND TOTAL RETURN
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------- -------------------- -------------------- ---------------
ASSETS:
Investments at fair value $ 109,412,500 $ 167,863,783 $ 936,595,922 $ 2,140,758,536
Due from MetLife Investors
USA Insurance Company -- 3 7 2
------------------- -------------------- -------------------- ---------------
Total Assets 109,412,500 167,863,786 936,595,929 2,140,758,538
------------------- -------------------- -------------------- ---------------
LIABILITIES:
Accrued fees 97 99 110 105
Due to MetLife Investors
USA Insurance Company -- -- -- --
------------------- -------------------- -------------------- ---------------
Total Liabilities 97 99 110 105
------------------- -------------------- -------------------- ---------------
NET ASSETS $ 109,412,403 $ 167,863,687 $ 936,595,819 $ 2,140,758,433
=================== ==================== ==================== ===============
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 109,412,403 $ 167,676,940 $ 936,425,553 $ 2,140,501,914
Net assets from contracts in payout -- 186,747 170,266 256,519
------------------- -------------------- -------------------- ---------------
Total Net Assets $ 109,412,403 $ 167,863,687 $ 936,595,819 $ 2,140,758,433
=================== ==================== ==================== ===============
The accompanying notes are an integral part of these financial statements.
18
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MIST MIST PIONEER MIST PYRAMIS MIST RAINIER MIST RCM MIST SSGA GROWTH
PIONEER FUND STRATEGIC INCOME GOVERNMENT INCOME LARGE CAP EQUITY TECHNOLOGY AND INCOME ETF
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ---------------- ----------------- ---------------- ------------- ----------------
$ 168,467,283 $ 600,261,697 $ 490,473,434 $ 57,997,357 $ 103,642,602 $ 1,390,741,080
5 2 -- -- -- 1
------------- ---------------- ----------------- ---------------- ------------- ----------------
168,467,288 600,261,699 490,473,434 57,997,357 103,642,602 1,390,741,081
------------- ---------------- ----------------- ---------------- ------------- ----------------
205 150 82 84 75 19
-- -- 1 -- 6 --
------------- ---------------- ----------------- ---------------- ------------- ----------------
205 150 83 84 81 19
------------- ---------------- ----------------- ---------------- ------------- ----------------
$ 168,467,083 $ 600,261,549 $ 490,473,351 $ 57,997,273 $ 103,642,521 $ 1,390,741,062
============= ================ ================= ================ ============= ================
$ 168,459,638 $ 600,261,549 $ 490,473,351 $ 57,997,273 $ 103,639,152 $ 1,390,741,062
7,445 -- -- -- 3,369 --
------------- ---------------- ----------------- ---------------- ------------- ----------------
$ 168,467,083 $ 600,261,549 $ 490,473,351 $ 57,997,273 $ 103,642,521 $ 1,390,741,062
============= ================ ================= ================ ============= ================
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, 2011
[Enlarge/Download Table]
MIST SSGA MIST T. ROWE PRICE MIST T. ROWE PRICE MIST THIRD AVENUE
GROWTH ETF LARGE CAP VALUE MID CAP GROWTH SMALL CAP VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------- ------------------ ------------------ -----------------
ASSETS:
Investments at fair value $ 409,132,874 $ 507,039,170 $ 439,146,386 $ 290,532,513
Due from MetLife Investors
USA Insurance Company 3 4 5 5
------------- ------------------ ------------------ -----------------
Total Assets 409,132,877 507,039,174 439,146,391 290,532,518
------------- ------------------ ------------------ -----------------
LIABILITIES:
Accrued fees 48 82 66 91
Due to MetLife Investors
USA Insurance Company -- -- -- --
------------- ------------------ ------------------ -----------------
Total Liabilities 48 82 66 91
------------- ------------------ ------------------ -----------------
NET ASSETS $ 409,132,829 $ 507,039,092 $ 439,146,325 $ 290,532,427
============= ================== ================== =================
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 409,132,829 $ 506,850,428 $ 439,117,230 $ 290,419,019
Net assets from contracts in payout -- 188,664 29,095 113,408
------------- ------------------ ------------------ -----------------
Total Net Assets $ 409,132,829 $ 507,039,092 $ 439,146,325 $ 290,532,427
============= ================== ================== =================
The accompanying notes are an integral part of these financial statements.
20
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MSF BARCLAYS
MIST TURNER MIST VAN MSF ARTIO CAPITAL AGGREGATE MSF BLACKROCK MSF BLACKROCK
MID CAP GROWTH KAMPEN COMSTOCK INTERNATIONAL STOCK BOND INDEX BOND INCOME LARGE CAP VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- --------------- ------------------- ----------------- ------------- ---------------
$ 83,512,513 $ 266,463,474 $ 2,803,573 $ 130,174,055 $ 49,539,053 $ 2,890,680
9 6 -- -- 19 --
-------------- --------------- ------------------- ----------------- ------------- ---------------
83,512,522 266,463,480 2,803,573 130,174,055 49,539,072 2,890,680
-------------- --------------- ------------------- ----------------- ------------- ---------------
72 72 23 73 87 12
-- -- 7 3 -- 4
-------------- --------------- ------------------- ----------------- ------------- ---------------
72 72 30 76 87 16
-------------- --------------- ------------------- ----------------- ------------- ---------------
$ 83,512,450 $ 266,463,408 $ 2,803,543 $ 130,173,979 $ 49,538,985 $ 2,890,664
============== =============== =================== ================= ============= ===============
$ 83,498,109 $ 266,441,266 $ 2,803,543 $ 130,173,979 $ 49,528,889 $ 2,890,664
14,341 22,142 -- -- 10,096 --
-------------- --------------- ------------------- ----------------- ------------- ---------------
$ 83,512,450 $ 266,463,408 $ 2,803,543 $ 130,173,979 $ 49,538,985 $ 2,890,664
============== =============== =================== ================= ============= ===============
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, 2011
[Enlarge/Download Table]
MSF BLACKROCK
LEGACY LARGE CAP MSF BLACKROCK MSF DAVIS MSF FI
GROWTH MONEY MARKET VENTURE VALUE VALUE LEADERS
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------- ------------- ------------- -------------
ASSETS:
Investments at fair value $ 11,348,843 $ 633,625,227 $ 599,153,843 $ 4,601,902
Due from MetLife Investors
USA Insurance Company 4 63 4 2
---------------- ------------- ------------- -------------
Total Assets 11,348,847 633,625,290 599,153,847 4,601,904
---------------- ------------- ------------- -------------
LIABILITIES:
Accrued fees 197 278 150 119
Due to MetLife Investors
USA Insurance Company -- -- -- --
---------------- ------------- ------------- -------------
Total Liabilities 197 278 150 119
---------------- ------------- ------------- -------------
NET ASSETS $ 11,348,650 $ 633,625,012 $ 599,153,697 $ 4,601,785
================ ============= ============= =============
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 11,348,650 $ 633,537,674 $ 598,937,686 $ 4,601,785
Net assets from contracts in payout -- 87,338 216,011 --
---------------- ------------- ------------- -------------
Total Net Assets $ 11,348,650 $ 633,625,012 $ 599,153,697 $ 4,601,785
================ ============= ============= =============
The accompanying notes are an integral part of these financial statements.
22
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MSF MSF MET/DIMENSIONAL MSF METLIFE MSF METLIFE
MSF LOOMIS SAYLES MSF MET/ARTISAN INTERNATIONAL SMALL CONSERVATIVE CONSERVATIVE TO
JENNISON GROWTH SMALL CAP CORE MID CAP VALUE COMPANY ALLOCATION MODERATE ALLOCATION
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------- -------------- --------------- ------------------- ------------ -------------------
$ 248,172,191 $ 10,317,352 $ 215,514,094 $ 47,225,268 $ 10,395,377 $ 7,143,988
2 4 15 3 1 1
--------------- -------------- --------------- ------------------- ------------ -------------------
248,172,193 10,317,356 215,514,109 47,225,271 10,395,378 7,143,989
--------------- -------------- --------------- ------------------- ------------ -------------------
83 109 89 107 30 44
-- -- -- -- -- --
--------------- -------------- --------------- ------------------- ------------ -------------------
83 109 89 107 30 44
--------------- -------------- --------------- ------------------- ------------ -------------------
$ 248,172,110 $ 10,317,247 $ 215,514,020 $ 47,225,164 $ 10,395,348 $ 7,143,945
=============== ============== =============== =================== ============ ===================
$ 248,096,596 $ 10,317,247 $ 215,403,616 $ 47,225,164 $ 10,395,348 $ 7,143,945
75,514 -- 110,404 -- -- --
--------------- -------------- --------------- ------------------- ------------ -------------------
$ 248,172,110 $ 10,317,247 $ 215,514,020 $ 47,225,164 $ 10,395,348 $ 7,143,945
=============== ============== =============== =================== ============ ===================
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, 2011
[Enlarge/Download Table]
MSF METLIFE
MSF METLIFE MSF METLIFE MODERATE TO MSF METLIFE
MID CAP STOCK INDEX MODERATE ALLOCATION AGGRESSIVE ALLOCATION STOCK INDEX
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------- ------------------- --------------------- -------------
ASSETS:
Investments at fair value $ 77,806,048 $ 44,282,767 $ 48,722,004 $ 355,993,836
Due from MetLife Investors
USA Insurance Company -- -- 1 --
------------------- ------------------- --------------------- -------------
Total Assets 77,806,048 44,282,767 48,722,005 355,993,836
------------------- ------------------- --------------------- -------------
LIABILITIES:
Accrued fees 116 36 31 52
Due to MetLife Investors
USA Insurance Company 3 1 -- 4
------------------- ------------------- --------------------- -------------
Total Liabilities 119 37 31 56
------------------- ------------------- --------------------- -------------
NET ASSETS $ 77,805,929 $ 44,282,730 $ 48,721,974 $ 355,993,780
=================== =================== ===================== =============
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 77,805,929 $ 44,282,730 $ 48,721,974 $ 355,894,486
Net assets from contracts in payout -- -- -- 99,294
------------------- ------------------- --------------------- -------------
Total Net Assets $ 77,805,929 $ 44,282,730 $ 48,721,974 $ 355,993,780
=================== =================== ===================== =============
The accompanying notes are an integral part of these financial statements.
24
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MSF NEUBERGER
MSF MFS MSF MSF MORGAN STANLEY MSF NEUBERGER BERMAN MSF OPPENHEIMER
TOTAL RETURN MFS VALUE EAFE INDEX BERMAN GENESIS MID CAP VALUE GLOBAL EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------ ------------ ------------------ -------------- ------------- ---------------
$ 36,390,976 $ 43,755,099 $ 69,159,329 $ 11,267,029 $ 3,882,146 $ 9,330,088
21 -- -- -- -- 2
------------ ------------ ------------------ -------------- ------------- ---------------
36,390,997 43,755,099 69,159,329 11,267,029 3,882,146 9,330,090
------------ ------------ ------------------ -------------- ------------- ---------------
179 179 117 29 102 89
-- 7 2 7 1 --
------------ ------------ ------------------ -------------- ------------- ---------------
179 186 119 36 103 89
------------ ------------ ------------------ -------------- ------------- ---------------
$ 36,390,818 $ 43,754,913 $ 69,159,210 $ 11,266,993 $ 3,882,043 $ 9,330,001
============ ============ ================== ============== ============= ===============
$ 36,390,818 $ 43,750,577 $ 69,159,210 $ 11,266,993 $ 3,882,043 $ 9,330,001
-- 4,336 -- -- -- --
------------ ------------ ------------------ -------------- ------------- ---------------
$ 36,390,818 $ 43,754,913 $ 69,159,210 $ 11,266,993 $ 3,882,043 $ 9,330,001
============ ============ ================== ============== ============= ===============
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, 2011
[Enlarge/Download Table]
MSF RUSSELL 2000 MSF T. ROWE PRICE MSF T. ROWE PRICE MSF VAN ECK GLOBAL
INDEX LARGE CAP GROWTH SMALL CAP GROWTH NATURAL RESOURCES
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------- ----------------- ----------------- ------------------
ASSETS:
Investments at fair value $ 64,081,583 $ 1,465,656 $ 7,500,207 $ 106,332,982
Due from MetLife Investors
USA Insurance Company -- -- -- 1
---------------- ----------------- ----------------- ------------------
Total Assets 64,081,583 1,465,656 7,500,207 106,332,983
---------------- ----------------- ----------------- ------------------
LIABILITIES:
Accrued fees 109 32 56 48
Due to MetLife Investors
USA Insurance Company 6 3 9 --
---------------- ----------------- ----------------- ------------------
Total Liabilities 115 35 65 48
---------------- ----------------- ----------------- ------------------
NET ASSETS $ 64,081,468 $ 1,465,621 $ 7,500,142 $ 106,332,935
================ ================= ================= ==================
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 64,081,468 $ 1,465,621 $ 7,500,142 $ 106,332,935
Net assets from contracts in payout -- -- -- --
---------------- ----------------- ----------------- ------------------
Total Net Assets $ 64,081,468 $ 1,465,621 $ 7,500,142 $ 106,332,935
================ ================= ================= ==================
The accompanying notes are an integral part of these financial statements.
26
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MSF WESTERN ASSET OPPENHEIMER VA OPPENHEIMER VA
MANAGEMENT NEUBERGER OPPENHEIMER VA GLOBAL STRATEGIC MAIN STREET OPPENHEIMER VA
U.S. GOVERNMENT BERMAN GENESIS CORE BOND INCOME SMALL- & MID-CAP MAIN STREET
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------- -------------- -------------- ---------------- ---------------- --------------
$ 285,530,076 $ 7,451 $ 10,162 $ 4,082 $ 81,494,335 $ 107,305
9 -- -- -- -- --
----------------- -------------- -------------- ---------------- ---------------- --------------
285,530,085 7,451 10,162 4,082 81,494,335 107,305
----------------- -------------- -------------- ---------------- ---------------- --------------
107 7 7 -- 7 --
-- 1 5 7 8 5
----------------- -------------- -------------- ---------------- ---------------- --------------
107 8 12 7 15 5
----------------- -------------- -------------- ---------------- ---------------- --------------
$ 285,529,978 $ 7,443 $ 10,150 $ 4,075 $ 81,494,321 $ 107,300
================= ============== ============== ================ ================ ==============
$ 285,508,417 $ 7,443 $ 10,150 $ 4,075 $ 81,494,321 $ 107,300
21,561 -- -- -- -- --
----------------- -------------- -------------- ---------------- ---------------- --------------
$ 285,529,978 $ 7,443 $ 10,150 $ 4,075 $ 81,494,321 $ 107,300
================= ============== ============== ================ ================ ==============
The accompanying notes are an integral part of these financial statements.
27
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES -- (CONTINUED)
DECEMBER 31, 2011
[Enlarge/Download Table]
OPPENHEIMER VA PIONEER VCT PIONEER VCT PIONEER VCT
MONEY CULLEN VALUE EMERGING MARKETS EQUITY INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------- ------------ ---------------- -------------
ASSETS:
Investments at fair value $ 114,709 $ 2,036,240 $ 705,787 $ 371,347
Due from MetLife Investors
USA Insurance Company -- -- 2 --
-------------- ------------ ---------------- -------------
Total Assets 114,709 2,036,240 705,789 371,347
-------------- ------------ ---------------- -------------
LIABILITIES:
Accrued fees -- 78 89 73
Due to MetLife Investors
USA Insurance Company -- 1 -- 2
-------------- ------------ ---------------- -------------
Total Liabilities -- 79 89 75
-------------- ------------ ---------------- -------------
NET ASSETS $ 114,709 $ 2,036,161 $ 705,700 $ 371,272
============== ============ ================ =============
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 114,709 $ 2,036,161 $ 705,700 $ 371,272
Net assets from contracts in payout -- -- -- --
-------------- ------------ ---------------- -------------
Total Net Assets $ 114,709 $ 2,036,161 $ 705,700 $ 371,272
============== ============ ================ =============
The accompanying notes are an integral part of these financial statements.
28
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PIONEER VCT IBBOTSON PIONEER VCT IBBOTSON PIONEER VCT PIONEER VCT T. ROWE PRICE T. ROWE PRICE
GROWTH ALLOCATION MODERATE ALLOCATION MID CAP VALUE REAL ESTATE SHARES GROWTH STOCK INTERNATIONAL STOCK
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------- -------------------- ------------- ------------------ ------------- -------------------
$ 17,736,413 $ 25,968,979 $ 49,145,121 $ 251,923 $ 6,015,940 $ 705,534
1 1 6 -- -- --
-------------------- -------------------- ------------- ------------------ ------------- -------------------
17,736,414 25,968,980 49,145,127 251,923 6,015,940 705,534
-------------------- -------------------- ------------- ------------------ ------------- -------------------
50 50 50 74 -- --
-- -- -- 2 3 5
-------------------- -------------------- ------------- ------------------ ------------- -------------------
50 50 50 76 3 5
-------------------- -------------------- ------------- ------------------ ------------- -------------------
$ 17,736,364 $ 25,968,930 $ 49,145,077 $ 251,847 $ 6,015,937 $ 705,529
==================== ==================== ============= ================== ============= ===================
$ 17,736,364 $ 25,968,930 $ 49,145,077 $ 251,847 $ 6,015,937 $ 705,529
-- -- -- -- -- --
-------------------- -------------------- ------------- ------------------ ------------- -------------------
$ 17,736,364 $ 25,968,930 $ 49,145,077 $ 251,847 $ 6,015,937 $ 705,529
==================== ==================== ============= ================== ============= ===================
The accompanying notes are an integral part of these financial statements.
29
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
STATEMENTS OF ASSETS AND LIABILITIES -- (CONCLUDED)
DECEMBER 31, 2011
[Download Table]
T. ROWE PRICE
PRIME RESERVE UIF U.S. REAL ESTATE
SUB-ACCOUNT SUB-ACCOUNT
------------- --------------------
ASSETS:
Investments at fair value $ 973,736 $ 76,564,928
Due from MetLife Investors
USA Insurance Company 20 3
------------- --------------------
Total Assets 973,756 76,564,931
------------- --------------------
LIABILITIES:
Accrued fees -- 26
Due to MetLife Investors
USA Insurance Company -- --
------------- --------------------
Total Liabilities -- 26
------------- --------------------
NET ASSETS $ 973,756 $ 76,564,905
============= ====================
CONTRACT OWNERS' EQUITY
Net assets from accumulation units $ 973,756 $ 76,564,905
Net assets from contracts in payout -- --
------------- --------------------
Total Net Assets $ 973,756 $ 76,564,905
============= ====================
The accompanying notes are an integral part of these financial statements.
30
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METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2011
[Enlarge/Download Table]
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 $ -- $ 3,398,106 $ 2,817,173 $ 1,100,462
----------------------- -------------- ----------------- -----------------
EXPENSES:
Mortality and expense risk and
other charges 758,722 1,103,598 2,565,719 959,479
Administrative charges -- 251,066 512,790 155,860
----------------------- -------------- ----------------- -----------------
Total expenses 758,722 1,354,664 3,078,509 1,115,339
----------------------- -------------- ----------------- -----------------
Net investment income (loss) (758,722) 2,043,442 (261,336) (14,877)
----------------------- -------------- ----------------- -----------------
NET REALIZED AND CHANGE IN
UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- -- --
Realized gains (losses) on sale of
investments 589,725 133,811 139,485 (139,499)
----------------------- -------------- ----------------- -----------------
Net realized gains (losses) 589,725 133,811 139,485 (139,499)
----------------------- -------------- ----------------- -----------------
Change in unrealized gains (losses)
on investments (2,252,972) 2,454,102 (21,700,254) (18,293,274)
----------------------- -------------- ----------------- -----------------
Net realized and change in
unrealized gains (losses)
on investments (1,663,247) 2,587,913 (21,560,769) (18,432,773)
----------------------- -------------- ----------------- -----------------
Net increase (decrease) in net assets
resulting from operations $ (2,421,969) $ 4,631,355 $ (21,822,105) $ (18,447,650)
======================= ============== ================= =================
(a) For the period May 2, 2011 to December 31, 2011.
The accompanying notes are an integral part of these financial statements.
32
[Enlarge/Download Table]
AMERICAN FUNDS AMERICAN FUNDS FEDERATED HIGH FEDERATED MANAGED
GROWTH GROWTH-INCOME DWS I INTERNATIONAL INCOME BOND FEDERATED KAUFMAN VOLATILITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------- ----------------- ---------------------- ----------------- -------------------- --------------------
$ 3,705,099 $ 4,361,375 $ 344,474 $ 2,613 $ 803 $ 542
----------------- ----------------- ---------------------- ----------------- -------------------- --------------------
7,318,578 3,486,198 253,144 422 1,003 148
1,397,096 614,119 -- -- -- --
----------------- ----------------- ---------------------- ----------------- -------------------- --------------------
8,715,674 4,100,317 253,144 422 1,003 148
----------------- ----------------- ---------------------- ----------------- -------------------- --------------------
(5,010,575) 261,058 91,330 2,191 (200) 394
----------------- ----------------- ---------------------- ----------------- -------------------- --------------------
-- -- -- -- -- --
744,451 (342,536) (869,544) (29) 289 506
----------------- ----------------- ---------------------- ----------------- -------------------- --------------------
744,451 (342,536) (869,544) (29) 289 506
----------------- ----------------- ---------------------- ----------------- -------------------- --------------------
(30,897,273) (9,057,767) (2,685,393) (1,062) (11,209) (338)
----------------- ----------------- ---------------------- ----------------- -------------------- --------------------
(30,152,822) (9,400,303) (3,554,937) (1,091) (10,920) 168
----------------- ----------------- ---------------------- ----------------- -------------------- --------------------
$ (35,163,397) $ (9,139,245) $ (3,463,607) $ 1,100 $ (11,120) $ 562
================= ================= ====================== ================= ==================== ====================
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, 2011
[Enlarge/Download Table]
FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP
ASSET MANAGER CONTRAFUND EQUITY-INCOME FUNDSMANAGER 60%
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------- ---------------- ---------------- -------------------
INVESTMENT INCOME:
Dividends $ 1,812,748 $ 3,972,322 $ 143,281 $ 37,133,654
-------------------- ---------------- ---------------- -------------------
EXPENSES:
Mortality and expense risk and
other charges 1,300,803 4,859,629 84,444 36,533,236
Administrative charges -- 408,771 -- --
-------------------- ---------------- ---------------- -------------------
Total expenses 1,300,803 5,268,400 84,444 36,533,236
-------------------- ---------------- ---------------- -------------------
Net investment income (loss) 511,945 (1,296,078) 58,837 600,418
-------------------- ---------------- ---------------- -------------------
NET REALIZED AND CHANGE IN
UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions 442,875 -- -- 5,610,120
Realized gains (losses) on sale of
investments (557,583) 324,914 (193,847) 56,341
-------------------- ---------------- ---------------- -------------------
Net realized gains (losses) (114,708) 324,914 (193,847) 5,666,461
-------------------- ---------------- ---------------- -------------------
Change in unrealized gains (losses)
on investments (3,867,894) (14,734,080) 111,818 (97,698,668)
-------------------- ---------------- ---------------- -------------------
Net realized and change in
unrealized gains (losses)
on investments (3,982,602) (14,409,166) (82,029) (92,032,207)
-------------------- ---------------- ---------------- -------------------
Net increase (decrease) in net assets
resulting from operations $ (3,470,657) $ (15,705,244) $ (23,192) $ (91,431,789)
==================== ================ ================ ===================
(a) For the period May 2, 2011 to December 31, 2011.
The accompanying notes are an integral part of these financial statements.
34
[Enlarge/Download Table]
FIDELITY VIP FIDELITY VIP FIDELITY VIP FIDELITY VIP FTVIPT FRANKLIN
FIDELITY VIP GROWTH INDEX 500 MID CAP MONEY MARKET OVERSEAS INCOME SECURITIES
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------------- --------------- ---------------- --------------- --------------- --------------------
$ 514,832 $ 1,211,407 $ 57,432 $ 88,909 $ 77,508 $ 11,234,415
---------------------- --------------- ---------------- --------------- --------------- --------------------
1,932,722 870,473 2,480,845 1,749,009 71,987 2,250,623
-- -- 547,927 -- -- 487,118
---------------------- --------------- ---------------- --------------- --------------- --------------------
1,932,722 870,473 3,028,772 1,749,009 71,987 2,737,741
---------------------- --------------- ---------------- --------------- --------------- --------------------
(1,417,890) 340,934 (2,971,340) (1,660,100) 5,521 8,496,674
---------------------- --------------- ---------------- --------------- --------------- --------------------
495,441 1,574,493 451,252 -- 11,176 --
388,586 404,341 150,111 -- (115,506) (590,708)
---------------------- --------------- ---------------- --------------- --------------- --------------------
884,027 1,978,834 601,363 -- (104,330) (590,708)
---------------------- --------------- ---------------- --------------- --------------- --------------------
(550,967) (1,800,840) (27,710,709) -- (960,730) (6,749,757)
---------------------- --------------- ---------------- --------------- --------------- --------------------
333,060 177,994 (27,109,346) -- (1,065,060) (7,340,465)
---------------------- --------------- ---------------- --------------- --------------- --------------------
$ (1,084,830) $ 518,928 $ (30,080,686) $ (1,660,100) $ (1,059,539) $ 1,156,209
====================== =============== ================ =============== =============== ====================
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, 2011
[Enlarge/Download Table]
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 $ 254,804 $ 2,833,347 $ 1,300,102 $ 6,401,702
---------------------- -------------------- --------------------- -------------------
EXPENSES:
Mortality and expense risk and
other charges 418,049 1,372,089 1,184,407 1,256,976
Administrative charges 96,510 291,649 190,048 291,894
---------------------- -------------------- --------------------- -------------------
Total expenses 514,559 1,663,738 1,374,455 1,548,870
---------------------- -------------------- --------------------- -------------------
Net investment income (loss) (259,755) 1,169,609 (74,353) 4,852,832
---------------------- -------------------- --------------------- -------------------
NET REALIZED AND CHANGE IN
UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- -- 744,465
Realized gains (losses) on sale of
investments 101,526 (500,071) (516,658) 375,796
---------------------- -------------------- --------------------- -------------------
Net realized gains (losses) 101,526 (500,071) (516,658) 1,120,261
---------------------- -------------------- --------------------- -------------------
Change in unrealized gains (losses)
on investments (1,417,162) (3,755,460) (8,701,781) (9,853,802)
---------------------- -------------------- --------------------- -------------------
Net realized and change in
unrealized gains (losses)
on investments (1,315,636) (4,255,531) (9,218,439) (8,733,541)
---------------------- -------------------- --------------------- -------------------
Net increase (decrease) in net assets
resulting from operations $ (1,575,391) $ (3,085,922) $ (9,292,792) $ (3,880,709)
====================== ==================== ===================== ===================
(a) For the period May 2, 2011 to December 31, 2011.
The accompanying notes are an integral part of these financial statements.
36
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INVESCO V.I. INVESCO V.I.
INVESCO V.I. CAPITAL INVESCO V.I. INVESCO V.I. GLOBAL INVESCO V.I. VAN KAMPEN VAN KAMPEN
APPRECIATION CORE EQUITY REAL ESTATE INTERNATIONAL GROWTH CAPITAL GROWTH EQUITY AND INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------- --------------- ---------------------- ----------------------- ----------------- --------------------
$ 205 $ 3,099 $ 503,386 $ 1,441,992 $ -- $ 6,488,128
----------------------- --------------- ---------------------- ----------------------- ----------------- --------------------
1,842 4,732 129,742 1,480,623 1,498 4,425,286
-- -- 29,702 336,873 -- 957,309
----------------------- --------------- ---------------------- ----------------------- ----------------- --------------------
1,842 4,732 159,444 1,817,496 1,498 5,382,595
----------------------- --------------- ---------------------- ----------------------- ----------------- --------------------
(1,637) (1,633) 343,942 (375,504) (1,498) 1,105,533
----------------------- --------------- ---------------------- ----------------------- ----------------- --------------------
-- -- -- -- -- --
(3,874) 11,751 (46,041) 32,969 3,562 165,761
----------------------- --------------- ---------------------- ----------------------- ----------------- --------------------
(3,874) 11,751 (46,041) 32,969 3,562 165,761
----------------------- --------------- ---------------------- ----------------------- ----------------- --------------------
(5,937) (11,037) (1,422,533) (12,319,548) (8,828) (12,908,159)
----------------------- --------------- ---------------------- ----------------------- ----------------- --------------------
(9,811) 714 (1,468,574) (12,286,579) (5,266) (12,742,398)
----------------------- --------------- ---------------------- ----------------------- ----------------- --------------------
$ (11,448) $ (919) $ (1,124,632) $ (12,662,083) $ (6,764) $ (11,636,865)
======================= =============== ====================== ======================= ================= ====================
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, 2011
[Enlarge/Download Table]
INVESCO V.I. INVESCO V.I. LMPVET
VAN KAMPEN VAN KAMPEN JANUS ASPEN CLEARBRIDGE VARIABLE
GROWTH AND INCOME MID CAP VALUE WORLDWIDE AGGRESSIVE GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------- ---------------- -------------- -----------------------
INVESTMENT INCOME:
Dividends $ 2,064,376 $ 270,540 $ 32 $ 318,738
-------------------- ---------------- -------------- -----------------------
EXPENSES:
Mortality and expense risk and
other charges 2,058,872 409,139 47 2,033,573
Administrative charges 454,114 93,101 -- 406,942
-------------------- ---------------- -------------- -----------------------
Total expenses 2,512,986 502,240 47 2,440,515
-------------------- ---------------- -------------- -----------------------
Net investment income (loss) (448,610) (231,700) (15) (2,121,777)
-------------------- ---------------- -------------- -----------------------
NET REALIZED AND CHANGE IN
UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- -- --
Realized gains (losses) on sale of
investments 52,684 49,468 228 1,220,007
-------------------- ---------------- -------------- -----------------------
Net realized gains (losses) 52,684 49,468 228 1,220,007
-------------------- ---------------- -------------- -----------------------
Change in unrealized gains (losses)
on investments (6,271,491) (11,067) (1,006) 2,212,582
-------------------- ---------------- -------------- -----------------------
Net realized and change in
unrealized gains (losses)
on investments (6,218,807) 38,401 (778) 3,432,589
-------------------- ---------------- -------------- -----------------------
Net increase (decrease) in net assets
resulting from operations $ (6,667,417) $ (193,299) $ (793) $ 1,310,812
==================== ================ ============== =======================
(a) For the period May 2, 2011 to December 31, 2011.
The accompanying notes are an integral part of these financial statements.
38
[Enlarge/Download Table]
LMPVET LMPVET
LMPVET CLEARBRIDGE CLEARBRIDGE VARIABLE LMPVET LMPVET LMPVET
CLEARBRIDGE VARIABLE VARIABLE EQUITY FUNDAMENTAL ALL CAP CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE CLEARBRIDGE VARIABLE
APPRECIATION INCOME BUILDER VALUE LARGE CAP GROWTH LARGE CAP VALUE SMALL CAP GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------- ------------------ ----------------------- --------------------- --------------------- ---------------------
$ 3,571,288 $ 3,148,219 $ 1,386,614 $ 22,035 $ 80,505 $ --
-------------------- ------------------ ----------------------- --------------------- --------------------- ---------------------
2,359,483 1,125,177 1,196,596 79,966 42,938 469,580
501,064 231,102 245,399 13,117 7,084 96,106
-------------------- ------------------ ----------------------- --------------------- --------------------- ---------------------
2,860,547 1,356,279 1,441,995 93,083 50,022 565,686
-------------------- ------------------ ----------------------- --------------------- --------------------- ---------------------
710,741 1,791,940 (55,381) (71,048) 30,483 (565,686)
-------------------- ------------------ ----------------------- --------------------- --------------------- ---------------------
-- -- -- -- -- 710,644
17,260 (2,420,420) (429,752) 111,313 (88,723) 372,410
-------------------- ------------------ ----------------------- --------------------- --------------------- ---------------------
17,260 (2,420,420) (429,752) 111,313 (88,723) 1,083,054
-------------------- ------------------ ----------------------- --------------------- --------------------- ---------------------
1,216,439 5,793,264 (7,192,709) (159,581) 181,309 (664,423)
-------------------- ------------------ ----------------------- --------------------- --------------------- ---------------------
1,233,699 3,372,844 (7,622,461) (48,268) 92,586 418,631
-------------------- ------------------ ----------------------- --------------------- --------------------- ---------------------
$ 1,944,440 $ 5,164,784 $ (7,677,842) $ (119,316) $ 123,069 $ (147,055)
==================== ================== ======================= ===================== ===================== =====================
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, 2011
[Enlarge/Download Table]
LMPVET INVESTMENT LMPVET LMPVET LMPVET
COUNSEL VARIABLE VARIABLE LIFESTYLE VARIABLE LIFESTYLE VARIABLE LIFESTYLE
SOCIAL AWARENESS ALLOCATION 50% ALLOCATION 70% ALLOCATION 85%
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------- --------------------- --------------------- ---------------------
INVESTMENT INCOME:
Dividends $ 5,808 $ 607,929 $ 61,784 $ 1,008,322
-------------------- --------------------- --------------------- ---------------------
EXPENSES:
Mortality and expense risk and
other charges 6,585 223,840 44,752 715,775
Administrative charges 1,204 47,409 8,206 161,869
-------------------- --------------------- --------------------- ---------------------
Total expenses 7,789 271,249 52,958 877,644
-------------------- --------------------- --------------------- ---------------------
Net investment income (loss) (1,981) 336,680 8,826 130,678
-------------------- --------------------- --------------------- ---------------------
NET REALIZED AND CHANGE IN
UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- -- --
Realized gains (losses) on sale of
investments (60) 400 5,813 528,464
-------------------- --------------------- --------------------- ---------------------
Net realized gains (losses) (60) 400 5,813 528,464
-------------------- --------------------- --------------------- ---------------------
Change in unrealized gains (losses)
on investments (4,843) (529,056) (70,666) (2,861,793)
-------------------- --------------------- --------------------- ---------------------
Net realized and change in
unrealized gains (losses)
on investments (4,903) (528,656) (64,853) (2,333,329)
-------------------- --------------------- --------------------- ---------------------
Net increase (decrease) in net assets
resulting from operations $ (6,884) $ (191,976) $ (56,027) $ (2,202,651)
==================== ===================== ===================== =====================
(a) For the period May 2, 2011 to December 31, 2011.
The accompanying notes are an integral part of these financial statements.
40
[Enlarge/Download Table]
MIST
LMPVIT WESTERN ALLIANCEBERNSTEIN MIST
ASSET VARIABLE GLOBAL MFS VIT MFS VIT GLOBAL DYNAMIC AMERICAN FUNDS
HIGH YIELD BOND INVESTORS TRUST NEW DISCOVERY MFS VIT RESEARCH ALLOCATION BALANCED ALLOCATION
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (a) SUB-ACCOUNT
------------------------ ------------------ ---------------- ------------------- --------------------- ----------------------
$ 5,570,626 $ 335 $ -- $ 448 $ 6,694,705 $ 35,915,716
------------------------ ------------------ ---------------- ------------------- --------------------- ----------------------
824,358 519 652 875 6,046,176 36,934,487
165,611 -- -- -- 1,259,511 7,129,657
------------------------ ------------------ ---------------- ------------------- --------------------- ----------------------
989,969 519 652 875 7,305,687 44,064,144
------------------------ ------------------ ---------------- ------------------- --------------------- ----------------------
4,580,657 (184) (652) (427) (610,982) (8,148,428)
------------------------ ------------------ ---------------- ------------------- --------------------- ----------------------
-- -- 5,639 -- 9,394,668 1,581,333
(143,505) 991 90 10,717 -- 3,444,529
------------------------ ------------------ ---------------- ------------------- --------------------- ----------------------
(143,505) 991 5,729 10,717 9,394,668 5,025,862
------------------------ ------------------ ---------------- ------------------- --------------------- ----------------------
(4,473,336) (1,906) (10,466) (10,338) 9,200,376 (116,302,276)
------------------------ ------------------ ---------------- ------------------- --------------------- ----------------------
(4,616,841) (915) (4,737) 379 18,595,044 (111,276,414)
------------------------ ------------------ ---------------- ------------------- --------------------- ----------------------
$ (36,184) $ (1,099) $ (5,389) $ (48) $ 17,984,062 $ (119,424,842)
======================== ================== ================ =================== ===================== ======================
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, 2011
[Enlarge/Download Table]
MIST
MIST AMERICAN AMERICAN FUNDS MIST AMERICAN MIST AMERICAN
FUNDS BOND GROWTH ALLOCATION FUNDS GROWTH FUNDS INTERNATIONAL
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------- -------------------- ---------------- -------------------
INVESTMENT INCOME:
Dividends $ 6,896,073 $ 16,279,703 $ 1,923,735 $ 4,511,360
----------------- -------------------- ---------------- -------------------
EXPENSES:
Mortality and expense risk and
other charges 4,303,359 19,459,404 7,224,680 4,079,989
Administrative charges 820,404 3,681,030 1,382,508 778,702
----------------- -------------------- ---------------- -------------------
Total expenses 5,123,763 23,140,434 8,607,188 4,858,691
----------------- -------------------- ---------------- -------------------
Net investment income (loss) 1,772,310 (6,860,731) (6,683,453) (347,331)
----------------- -------------------- ---------------- -------------------
NET REALIZED AND CHANGE IN
UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions 440 -- -- --
Realized gains (losses) on sale of
investments 1,617,499 12,437,663 2,655,999 2,344,997
----------------- -------------------- ---------------- -------------------
Net realized gains (losses) 1,617,939 12,437,663 2,655,999 2,344,997
----------------- -------------------- ---------------- -------------------
Change in unrealized gains (losses)
on investments 10,229,841 (101,766,516) (35,042,764) (54,813,728)
----------------- -------------------- ---------------- -------------------
Net realized and change in
unrealized gains (losses)
on investments 11,847,780 (89,328,853) (32,386,765) (52,468,731)
----------------- -------------------- ---------------- -------------------
Net increase (decrease) in net assets
resulting from operations $ 13,620,090 $ (96,189,584) $ (39,070,218) $ (52,816,062)
================= ==================== ================ ===================
(a) For the period May 2, 2011 to December 31, 2011.
The accompanying notes are an integral part of these financial statements.
42
[Enlarge/Download Table]
MIST MIST AQR MIST BLACKROCK
AMERICAN FUNDS GLOBAL RISK GLOBAL TACTICAL MIST BLACKROCK MIST BLACKROCK MIST CLARION
MODERATE ALLOCATION BALANCED STRATEGIES HIGH YIELD LARGE CAP CORE GLOBAL REAL ESTATE
SUB-ACCOUNT SUB-ACCOUNT (a) SUB-ACCOUNT (a) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------------- --------------- ------------------ ----------------- ----------------- ---------------------
$ 25,145,182 $ 25,590,118 $ 18,594,534 $ 13,271,662 $ 104,571 $ 5,745,197
---------------------- --------------- ------------------ ----------------- ----------------- ---------------------
21,095,478 6,713,536 10,715,163 2,761,895 171,020 2,095,360
4,078,275 1,397,323 2,222,611 507,421 28,281 377,134
---------------------- --------------- ------------------ ----------------- ----------------- ---------------------
25,173,753 8,110,859 12,937,774 3,269,316 199,301 2,472,494
---------------------- --------------- ------------------ ----------------- ----------------- ---------------------
(28,571) 17,479,259 5,656,760 10,002,346 (94,730) 3,272,703
---------------------- --------------- ------------------ ----------------- ----------------- ---------------------
7,882,185 5,634,878 21,591,062 -- -- --
2,728,544 -- -- 3,149,049 12,317 (1,143,990)
---------------------- --------------- ------------------ ----------------- ----------------- ---------------------
10,610,729 5,634,878 21,591,062 3,149,049 12,317 (1,143,990)
---------------------- --------------- ------------------ ----------------- ----------------- ---------------------
(37,218,522) 20,725,299 (29,115,315) (12,738,491) (244,145) (13,501,877)
---------------------- --------------- ------------------ ----------------- ----------------- ---------------------
(26,607,793) 26,360,177 (7,524,253) (9,589,442) (231,828) (14,645,867)
---------------------- --------------- ------------------ ----------------- ----------------- ---------------------
$ (26,636,364) $ 43,839,436 $ (1,867,493) $ 412,904 $ (326,558) $ (11,373,164)
====================== =============== ================== ================= ================= =====================
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, 2011
[Enlarge/Download Table]
MIST
MIST DREMAN MIST GOLDMAN SACHS HARRIS OAKMARK MIST INVESCO
SMALL CAP VALUE MID CAP VALUE INTERNATIONAL SMALL CAP GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------------- --------------------- ----------------- -------------------
INVESTMENT INCOME:
Dividends $ 383,323 $ 639,252 $ 6,415 $ --
---------------------- --------------------- ----------------- -------------------
EXPENSES:
Mortality and expense risk and
other charges 346,462 1,818,046 6,778,426 2,807,395
Administrative charges 56,541 331,467 1,245,666 519,454
---------------------- --------------------- ----------------- -------------------
Total expenses 403,003 2,149,513 8,024,092 3,326,849
---------------------- --------------------- ----------------- -------------------
Net investment income (loss) (19,680) (1,510,261) (8,017,677) (3,326,849)
---------------------- --------------------- ----------------- -------------------
NET REALIZED AND CHANGE IN
UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- -- --
Realized gains (losses) on sale of
investments 480,921 (437,036) (1,470,791) 1,704,023
---------------------- --------------------- ----------------- -------------------
Net realized gains (losses) 480,921 (437,036) (1,470,791) 1,704,023
---------------------- --------------------- ----------------- -------------------
Change in unrealized gains (losses)
on investments (3,142,931) (10,057,546) (75,842,892) (5,165,840)
---------------------- --------------------- ----------------- -------------------
Net realized and change in
unrealized gains (losses)
on investments (2,662,010) (10,494,582) (77,313,683) (3,461,817)
---------------------- --------------------- ----------------- -------------------
Net increase (decrease) in net assets
resulting from operations $ (2,681,690) $ (12,004,843) $ (85,331,360) $ (6,788,666)
====================== ===================== ================= ===================
(a) For the period May 2, 2011 to December 31, 2011.
The accompanying notes are an integral part of these financial statements.
44
[Enlarge/Download Table]
MIST LEGG MASON
MIST CLEARBRIDGE MIST LOOMIS SAYLES MIST LORD ABBETT MIST LORD ABBETT
MIST JANUS FORTY LAZARD MID CAP AGGRESSIVE GROWTH GLOBAL MARKETS BOND DEBENTURE MID CAP VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------- ----------------- -------------------- --------------------- ------------------- -------------------
$ 1,143,620 $ 991,555 $ -- $ 3,807,255 $ 15,837,776 $ 624,785
------------------- ----------------- -------------------- --------------------- ------------------- -------------------
937,928 1,901,905 2,810,461 2,198,483 3,700,880 1,683,021
168,957 341,389 528,209 408,080 647,660 307,950
------------------- ----------------- -------------------- --------------------- ------------------- -------------------
1,106,885 2,243,294 3,338,670 2,606,563 4,348,540 1,990,971
------------------- ----------------- -------------------- --------------------- ------------------- -------------------
36,735 (1,251,739) (3,338,670) 1,200,692 11,489,236 (1,366,186)
------------------- ----------------- -------------------- --------------------- ------------------- -------------------
-- -- -- -- -- --
332,745 (826,499) 428 955,422 2,277,388 1,059,026
------------------- ----------------- -------------------- --------------------- ------------------- -------------------
332,745 (826,499) 428 955,422 2,277,388 1,059,026
------------------- ----------------- -------------------- --------------------- ------------------- -------------------
(7,197,681) (7,687,971) (7,417,668) (8,402,666) (6,571,539) (6,908,432)
------------------- ----------------- -------------------- --------------------- ------------------- -------------------
(6,864,936) (8,514,470) (7,417,240) (7,447,244) (4,294,151) (5,849,406)
------------------- ----------------- -------------------- --------------------- ------------------- -------------------
$ (6,828,201) $ (9,766,209) $ (10,755,910) $ (6,246,552) $ 7,195,085 $ (7,215,592)
=================== ================= ==================== ===================== =================== ===================
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, 2011
[Enlarge/Download Table]
MIST
MIST MET/FRANKLIN MIST MET/FRANKLIN
MET/EATON VANCE LOW DURATION MIST MET/FRANKLIN TEMPLETON
FLOATING RATE TOTAL RETURN MUTUAL SHARES FOUNDING STRATEGY
SUB-ACCOUNT SUB-ACCOUNT (a) SUB-ACCOUNT SUB-ACCOUNT
-------------------- ------------------ -------------------- ------------------
INVESTMENT INCOME:
Dividends $ 778,159 $ -- $ 3,980,852 $ 10,437,120
-------------------- ------------------ -------------------- ------------------
EXPENSES:
Mortality and expense risk and
other charges 525,041 127,652 1,923,338 8,018,324
Administrative charges 97,108 24,388 360,957 1,514,501
-------------------- ------------------ -------------------- ------------------
Total expenses 622,149 152,040 2,284,295 9,532,825
-------------------- ------------------ -------------------- ------------------
Net investment income (loss) 156,010 (152,040) 1,696,557 904,295
-------------------- ------------------ -------------------- ------------------
NET REALIZED AND CHANGE IN
UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions 102,311 -- 7,895,629 593,283
Realized gains (losses) on sale of
investments (229,702) (24,333) 110,741 4,684,681
-------------------- ------------------ -------------------- ------------------
Net realized gains (losses) (127,391) (24,333) 8,006,370 5,277,964
-------------------- ------------------ -------------------- ------------------
Change in unrealized gains (losses)
on investments (317,893) (183,195) (13,800,582) (29,078,070)
-------------------- ------------------ -------------------- ------------------
Net realized and change in
unrealized gains (losses)
on investments (445,284) (207,528) (5,794,212) (23,800,106)
-------------------- ------------------ -------------------- ------------------
Net increase (decrease) in net assets
resulting from operations $ (289,274) $ (359,568) $ (4,097,655) $ (22,895,811)
==================== ================== ==================== ==================
(a) For the period May 2, 2011 to December 31, 2011.
The accompanying notes are an integral part of these financial statements.
46
[Enlarge/Download Table]
MIST MET/TEMPLETON MIST MET/TEMPLETON MIST METLIFE MIST METLIFE MIST METLIFE MIST METLIFE
GROWTH INTERNATIONAL BOND AGGRESSIVE STRATEGY BALANCED PLUS BALANCED STRATEGY DEFENSIVE STRATEGY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT (a) SUB-ACCOUNT SUB-ACCOUNT
--------------------- --------------------- ---------------------- ------------------ -------------------- ---------------------
$ 123,412 $ 3,264,056 $ 6,059,840 $ 3,109,214 $ 109,929,868 $ 46,202,640
--------------------- --------------------- ---------------------- ------------------ -------------------- ---------------------
450,145 610,928 7,474,066 8,889,859 92,925,166 27,932,833
93,450 118,546 1,371,589 1,876,489 17,326,688 5,191,502
--------------------- --------------------- ---------------------- ------------------ -------------------- ---------------------
543,595 729,474 8,845,655 10,766,348 110,251,854 33,124,335
--------------------- --------------------- ---------------------- ------------------ -------------------- ---------------------
(420,183) 2,534,582 (2,785,815) (7,657,134) (321,986) 13,078,305
--------------------- --------------------- ---------------------- ------------------ -------------------- ---------------------
-- 59,720 -- -- -- --
(250,304) 9,417 (3,089,096) -- (7,135,125) 14,867,735
--------------------- --------------------- ---------------------- ------------------ -------------------- ---------------------
(250,304) 69,137 (3,089,096) -- (7,135,125) 14,867,735
--------------------- --------------------- ---------------------- ------------------ -------------------- ---------------------
(8,626,650) (3,853,055) (36,571,916) (14,018,878) (245,352,817) (24,804,181)
--------------------- --------------------- ---------------------- ------------------ -------------------- ---------------------
(8,876,954) (3,783,918) (39,661,012) (14,018,878) (252,487,942) (9,936,446)
--------------------- --------------------- ---------------------- ------------------ -------------------- ---------------------
$ (9,297,137) $ (1,249,336) $ (42,446,827) $ (21,676,012) $ (252,809,928) $ 3,141,859
===================== ===================== ====================== ================== ==================== =====================
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, 2011
[Enlarge/Download Table]
MIST METLIFE MIST METLIFE MIST MFS EMERGING MIST MFS RESEARCH
GROWTH STRATEGY MODERATE STRATEGY MARKETS EQUITY INTERNATIONAL
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------ -------------------- -------------------- --------------------
INVESTMENT INCOME:
Dividends $ 82,693,229 $ 61,350,561 $ 5,336,714 $ 5,873,182
------------------ -------------------- -------------------- --------------------
EXPENSES:
Mortality and expense risk and
other charges 73,824,051 44,723,722 5,052,211 4,264,910
Administrative charges 13,424,100 8,366,083 955,535 754,977
------------------ -------------------- -------------------- --------------------
Total expenses 87,248,151 53,089,805 6,007,746 5,019,887
------------------ -------------------- -------------------- --------------------
Net investment income (loss) (4,554,922) 8,260,756 (671,032) 853,295
------------------ -------------------- -------------------- --------------------
NET REALIZED AND CHANGE IN
UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- -- --
Realized gains (losses) on sale of
investments (39,528,555) 4,489,424 2,261,367 (1,887,551)
------------------ -------------------- -------------------- --------------------
Net realized gains (losses) (39,528,555) 4,489,424 2,261,367 (1,887,551)
------------------ -------------------- -------------------- --------------------
Change in unrealized gains (losses)
on investments (246,366,960) (77,648,493) (86,014,482) (37,450,859)
------------------ -------------------- -------------------- --------------------
Net realized and change in
unrealized gains (losses)
on investments (285,895,515) (73,159,069) (83,753,115) (39,338,410)
------------------ -------------------- -------------------- --------------------
Net increase (decrease) in net assets
resulting from operations $ (290,450,437) $ (64,898,313) $ (84,424,147) $ (38,485,115)
================== ==================== ==================== ====================
(a) For the period May 2, 2011 to December 31, 2011.
The accompanying notes are an integral part of these financial statements.
48
[Enlarge/Download Table]
MIST
MIST MORGAN STANLEY MIST OPPENHEIMER PIMCO INFLATION MIST MIST PIONEER
MID CAP GROWTH CAPITAL APPRECIATION PROTECTED BOND PIMCO TOTAL RETURN MIST PIONEER FUND STRATEGIC INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------------- ----------------------- --------------- --------------------- -------------------- -------------------
$ 581,818 $ 215,460 $ 14,184,953 $ 53,195,033 $ 1,595,395 $ 22,813,221
---------------------- ----------------------- --------------- --------------------- -------------------- -------------------
1,276,964 2,500,114 11,755,082 26,947,647 1,642,500 6,009,671
248,218 439,740 2,180,955 4,902,489 357,469 1,303,696
---------------------- ----------------------- --------------- --------------------- -------------------- -------------------
1,525,182 2,939,854 13,936,037 31,850,136 1,999,969 7,313,367
---------------------- ----------------------- --------------- --------------------- -------------------- -------------------
(943,364) (2,724,394) 248,916 21,344,897 (404,574) 15,499,854
---------------------- ----------------------- --------------- --------------------- -------------------- -------------------
2,603,019 -- 40,424,584 61,428,406 -- 3,048,412
644,261 (7,215,537) 3,706,477 1,619,328 2,955 234,582
---------------------- ----------------------- --------------- --------------------- -------------------- -------------------
3,247,280 (7,215,537) 44,131,061 63,047,734 2,955 3,282,994
---------------------- ----------------------- --------------- --------------------- -------------------- -------------------
(12,429,566) 4,937,085 34,838,493 (55,437,622) (8,916,886) (9,616,858)
---------------------- ----------------------- --------------- --------------------- -------------------- -------------------
(9,182,286) (2,278,452) 78,969,554 7,610,112 (8,913,931) (6,333,864)
---------------------- ----------------------- --------------- --------------------- -------------------- -------------------
$ (10,125,650) $ (5,002,846) $ 79,218,470 $ 28,955,009 $ (9,318,505) $ 9,165,990
====================== ======================= =============== ===================== ==================== ===================
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, 2011
[Enlarge/Download Table]
MIST PYRAMIS MIST RAINIER MIST RCM MIST SSGA GROWTH
GOVERNMENT INCOME LARGE CAP EQUITY TECHNOLOGY AND INCOME ETF
SUB-ACCOUNT (a) SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------- ------------------- ---------------- -------------------
INVESTMENT INCOME:
Dividends $ 1,758,110 $ 198,102 $ -- $ 21,753,850
-------------------- ------------------- ---------------- -------------------
EXPENSES:
Mortality and expense risk and
other charges 1,567,365 693,861 1,602,654 16,222,879
Administrative charges 324,648 130,564 284,864 3,195,620
-------------------- ------------------- ---------------- -------------------
Total expenses 1,892,013 824,425 1,887,518 19,418,499
-------------------- ------------------- ---------------- -------------------
Net investment income (loss) (133,903) (626,323) (1,887,518) 2,335,351
-------------------- ------------------- ---------------- -------------------
NET REALIZED AND CHANGE IN
UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions 3,901,311 -- -- 23,371,511
Realized gains (losses) on sale of
investments (2,100) 506,257 2,692,086 3,797,614
-------------------- ------------------- ---------------- -------------------
Net realized gains (losses) 3,899,211 506,257 2,692,086 27,169,125
-------------------- ------------------- ---------------- -------------------
Change in unrealized gains (losses)
on investments 6,372,332 (2,839,226) (14,827,788) (43,866,906)
-------------------- ------------------- ---------------- -------------------
Net realized and change in
unrealized gains (losses)
on investments 10,271,543 (2,332,969) (12,135,702) (16,697,781)
-------------------- ------------------- ---------------- -------------------
Net increase (decrease) in net assets
resulting from operations $ 10,137,640 $ (2,959,292) $ (14,023,220) $ (14,362,430)
==================== =================== ================ ===================
(a) For the period May 2, 2011 to December 31, 2011.
The accompanying notes are an integral part of these financial statements.
50
[Enlarge/Download Table]
MIST SSGA MIST T. ROWE PRICE MIST T. ROWE PRICE MIST THIRD AVENUE MIST TURNER MIST VAN KAMPEN
GROWTH ETF LARGE CAP VALUE MID CAP GROWTH SMALL CAP VALUE MID CAP GROWTH COMSTOCK
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------- --------------------- --------------------- -------------------- ----------------- ------------------
$ 6,115,664 $ 3,767,843 $ -- $ 3,488,824 $ -- $ 2,811,648
---------------- --------------------- --------------------- -------------------- ----------------- ------------------
5,066,271 7,262,842 6,123,198 4,341,109 1,231,450 3,204,789
975,344 926,943 1,137,305 774,364 225,079 641,685
---------------- --------------------- --------------------- -------------------- ----------------- ------------------
6,041,615 8,189,785 7,260,503 5,115,473 1,456,529 3,846,474
---------------- --------------------- --------------------- -------------------- ----------------- ------------------
74,049 (4,421,942) (7,260,503) (1,626,649) (1,456,529) (1,034,826)
---------------- --------------------- --------------------- -------------------- ----------------- ------------------
-- -- 12,070,995 -- -- --
2,402,527 (7,384,308) 6,453,242 1,034,386 1,449,705 900,637
---------------- --------------------- --------------------- -------------------- ----------------- ------------------
2,402,527 (7,384,308) 18,524,237 1,034,386 1,449,705 900,637
---------------- --------------------- --------------------- -------------------- ----------------- ------------------
(19,223,624) (17,691,215) (28,498,595) (33,815,082) (8,573,460) (8,468,416)
---------------- --------------------- --------------------- -------------------- ----------------- ------------------
(16,821,097) (25,075,523) (9,974,358) (32,780,696) (7,123,755) (7,567,779)
---------------- --------------------- --------------------- -------------------- ----------------- ------------------
$ (16,747,048) $ (29,497,465) $ (17,234,861) $ (34,407,345) $ (8,580,284) $ (8,602,605)
================ ===================== ===================== ==================== ================= ==================
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, 2011
[Enlarge/Download Table]
MSF BARCLAYS
MSF ARTIO CAPITAL AGGREGATE MSF BLACKROCK MSF BLACKROCK
INTERNATIONAL STOCK BOND INDEX BOND INCOME LARGE CAP VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------------- ----------------- ------------- ------------------
INVESTMENT INCOME:
Dividends $ 55,506 $ 3,690,813 $ 1,911,718 $ 34,801
---------------------- ----------------- ------------- ------------------
EXPENSES:
Mortality and expense risk and
other charges 47,767 1,479,246 751,736 39,841
Administrative charges 8,206 263,622 109,750 --
---------------------- ----------------- ------------- ------------------
Total expenses 55,973 1,742,868 861,486 39,841
---------------------- ----------------- ------------- ------------------
Net investment income (loss) (467) 1,947,945 1,050,232 (5,040)
---------------------- ----------------- ------------- ------------------
NET REALIZED AND CHANGE IN
UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- -- --
Realized gains (losses) on sale of
investments (261,978) 315,491 209,734 (83,604)
---------------------- ----------------- ------------- ------------------
Net realized gains (losses) (261,978) 315,491 209,734 (83,604)
---------------------- ----------------- ------------- ------------------
Change in unrealized gains (losses)
on investments (504,227) 4,224,865 1,003,839 126,889
---------------------- ----------------- ------------- ------------------
Net realized and change in
unrealized gains (losses)
on investments (766,205) 4,540,356 1,213,573 43,285
---------------------- ----------------- ------------- ------------------
Net increase (decrease) in net assets
resulting from operations $ (766,672) $ 6,488,301 $ 2,263,805 $ 38,245
====================== ================= ============= ==================
(a) For the period May 2, 2011 to December 31, 2011.
The accompanying notes are an integral part of these financial statements.
52
[Enlarge/Download Table]
MSF BLACKROCK
LEGACY LARGE CAP MSF BLACKROCK MSF DAVIS MSF FI MSF JENNISON MSF LOOMIS SAYLES
GROWTH MONEY MARKET VENTURE VALUE VALUE LEADERS GROWTH SMALL CAP CORE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------- ---------------- ---------------- ---------------- --------------- --------------------
$ 19,452 $ -- $ 6,227,875 $ 49,540 $ 141,295 $ --
------------------- ---------------- ---------------- ---------------- --------------- --------------------
166,353 8,087,581 8,376,937 74,185 3,385,040 140,438
25,914 1,492,129 1,512,147 12,202 619,009 23,379
------------------- ---------------- ---------------- ---------------- --------------- --------------------
192,267 9,579,710 9,889,084 86,387 4,004,049 163,817
------------------- ---------------- ---------------- ---------------- --------------- --------------------
(172,815) (9,579,710) (3,661,209) (36,847) (3,862,754) (163,817)
------------------- ---------------- ---------------- ---------------- --------------- --------------------
-- -- -- -- -- --
528,200 -- 3,865,479 (166,827) 4,303,744 236,293
------------------- ---------------- ---------------- ---------------- --------------- --------------------
528,200 -- 3,865,479 (166,827) 4,303,744 236,293
------------------- ---------------- ---------------- ---------------- --------------- --------------------
(1,851,168) -- (37,130,418) (198,036) (4,175,864) (316,577)
------------------- ---------------- ---------------- ---------------- --------------- --------------------
(1,322,968) -- (33,264,939) (364,863) 127,880 (80,284)
------------------- ---------------- ---------------- ---------------- --------------- --------------------
$ (1,495,783) $ (9,579,710) $ (36,926,148) $ (401,710) $ (3,734,874) $ (244,101)
=================== ================ ================ ================ =============== ====================
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, 2011
[Enlarge/Download Table]
MSF MET/DIMENSIONAL MSF METLIFE MSF METLIFE
MSF MET/ARTISAN INTERNATIONAL SMALL CONSERVATIVE CONSERVATIVE TO
MID CAP VALUE COMPANY ALLOCATION MODERATE ALLOCATION
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------- ---------------------- --------------- ----------------------
INVESTMENT INCOME:
Dividends $ 1,741,269 $ 907,526 $ 236,324 $ 171,242
------------------- ---------------------- --------------- ----------------------
EXPENSES:
Mortality and expense risk and
other charges 3,029,553 627,146 143,834 120,041
Administrative charges 516,341 116,420 24,820 19,954
------------------- ---------------------- --------------- ----------------------
Total expenses 3,545,894 743,566 168,654 139,995
------------------- ---------------------- --------------- ----------------------
Net investment income (loss) (1,804,625) 163,960 67,670 31,247
------------------- ---------------------- --------------- ----------------------
NET REALIZED AND CHANGE IN
UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- 1,730,699 -- --
Realized gains (losses) on sale of
investments (4,721,063) 198,540 122,681 249,879
------------------- ---------------------- --------------- ----------------------
Net realized gains (losses) (4,721,063) 1,929,239 122,681 249,879
------------------- ---------------------- --------------- ----------------------
Change in unrealized gains (losses)
on investments 16,718,666 (11,314,641) (26,700) (318,879)
------------------- ---------------------- --------------- ----------------------
Net realized and change in
unrealized gains (losses)
on investments 11,997,603 (9,385,402) 95,981 (69,000)
------------------- ---------------------- --------------- ----------------------
Net increase (decrease) in net assets
resulting from operations $ 10,192,978 $ (9,221,442) $ 163,651 $ (37,753)
=================== ====================== =============== ======================
(a) For the period May 2, 2011 to December 31, 2011.
The accompanying notes are an integral part of these financial statements.
54
[Enlarge/Download Table]
MSF METLIFE
MSF METLIFE MSF METLIFE MODERATE TO MSF METLIFE MSF
MID CAP STOCK INDEX MODERATE ALLOCATION AGGRESSIVE ALLOCATION STOCK INDEX MFS TOTAL RETURN MSF MFS VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------------- ---------------------- ------------------------ --------------- ------------------- ----------------
$ 550,689 $ 721,556 $ 789,069 $ 5,548,456 $ 1,033,373 $ 709,258
---------------------- ---------------------- ------------------------ --------------- ------------------- ----------------
1,022,609 700,010 813,281 5,337,683 540,834 663,152
139,132 118,116 137,443 752,089 71,662 97,445
---------------------- ---------------------- ------------------------ --------------- ------------------- ----------------
1,161,741 818,126 950,724 6,089,772 612,496 760,597
---------------------- ---------------------- ------------------------ --------------- ------------------- ----------------
(611,052) (96,570) (161,655) (541,316) 420,877 (51,339)
---------------------- ---------------------- ------------------------ --------------- ------------------- ----------------
3,157,993 -- -- 2,271,145 -- --
518,373 92,206 (336,754) 3,950,861 (473,539) 110,867
---------------------- ---------------------- ------------------------ --------------- ------------------- ----------------
3,676,366 92,206 (336,754) 6,222,006 (473,539) 110,867
---------------------- ---------------------- ------------------------ --------------- ------------------- ----------------
(6,803,063) (1,412,843) (2,412,130) (6,858,838) 350,834 (361,758)
---------------------- ---------------------- ------------------------ --------------- ------------------- ----------------
(3,126,697) (1,320,637) (2,748,884) (636,832) (122,705) (250,891)
---------------------- ---------------------- ------------------------ --------------- ------------------- ----------------
$ (3,737,749) $ (1,417,207) $ (2,910,539) $ (1,178,148) $ 298,172 $ (302,230)
====================== ====================== ======================== =============== =================== ================
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, 2011
[Enlarge/Download Table]
MSF NEUBERGER
MSF MORGAN STANLEY MSF NEUBERGER BERMAN MSF OPPENHEIMER
EAFE INDEX BERMAN GENESIS MID CAP VALUE GLOBAL EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------- ----------------- ---------------- ------------------
INVESTMENT INCOME:
Dividends $ 1,548,769 $ 76,218 $ 17,362 $ 190,404
--------------------- ----------------- ---------------- ------------------
EXPENSES:
Mortality and expense risk and
other charges 900,193 140,992 47,877 130,087
Administrative charges 131,738 768 8,109 26,569
--------------------- ----------------- ---------------- ------------------
Total expenses 1,031,931 141,760 55,986 156,656
--------------------- ----------------- ---------------- ------------------
Net investment income (loss) 516,838 (65,542) (38,624) 33,748
--------------------- ----------------- ---------------- ------------------
NET REALIZED AND CHANGE IN
UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- -- --
Realized gains (losses) on sale of
investments (214,534) (367,718) 11,924 32,088
--------------------- ----------------- ---------------- ------------------
Net realized gains (losses) (214,534) (367,718) 11,924 32,088
--------------------- ----------------- ---------------- ------------------
Change in unrealized gains (losses)
on investments (11,175,105) 835,096 (341,843) (1,057,952)
--------------------- ----------------- ---------------- ------------------
Net realized and change in
unrealized gains (losses)
on investments (11,389,639) 467,378 (329,919) (1,025,864)
--------------------- ----------------- ---------------- ------------------
Net increase (decrease) in net assets
resulting from operations $ (10,872,801) $ 401,836 $ (368,543) $ (992,116)
===================== ================= ================ ==================
(a) For the period May 2, 2011 to December 31, 2011.
The accompanying notes are an integral part of these financial statements.
56
[Enlarge/Download Table]
MSF VAN ECK MSF WESTERN ASSET
MSF MSF T. ROWE PRICE MSF T. ROWE PRICE GLOBAL NATURAL MANAGEMENT NEUBERGER BERMAN
RUSSELL 2000 INDEX LARGE CAP GROWTH SMALL CAP GROWTH RESOURCES U.S. GOVERNMENT GENESIS
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------- -------------------- -------------------- ----------------- -------------------- -------------------
$ 517,942 $ -- $ -- $ 1,119,297 $ 2,915,549 $ 75
--------------------- -------------------- -------------------- ----------------- -------------------- -------------------
800,605 19,744 115,982 1,327,772 3,019,659 78
128,422 3,624 12,249 254,423 604,533 --
--------------------- -------------------- -------------------- ----------------- -------------------- -------------------
929,027 23,368 128,231 1,582,195 3,624,192 78
--------------------- -------------------- -------------------- ----------------- -------------------- -------------------
(411,085) (23,368) (128,231) (462,898) (708,643) (3)
--------------------- -------------------- -------------------- ----------------- -------------------- -------------------
-- -- -- 9,644,428 7,909,122 165
817,885 50,572 674,320 (27,071) 78,138 545
--------------------- -------------------- -------------------- ----------------- -------------------- -------------------
817,885 50,572 674,320 9,617,357 7,987,260 710
--------------------- -------------------- -------------------- ----------------- -------------------- -------------------
(4,414,923) (71,297) (496,604) (31,541,279) 1,445,269 (351)
--------------------- -------------------- -------------------- ----------------- -------------------- -------------------
(3,597,038) (20,725) 177,716 (21,923,922) 9,432,529 359
--------------------- -------------------- -------------------- ----------------- -------------------- -------------------
$ (4,008,123) $ (44,093) $ 49,485 $ (22,386,820) $ 8,723,886 $ 356
===================== ==================== ==================== ================= ==================== ===================
The accompanying notes are an integral part of these financial statements.
57
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 2011
[Enlarge/Download Table]
OPPENHEIMER VA OPPENHEIMER VA
OPPENHEIMER VA GLOBAL MAIN STREET OPPENHEIMER VA
CORE BOND STRATEGIC INCOME SMALL- & MID-CAP MAIN STREET
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------- ------------------- ------------------- -----------------
INVESTMENT INCOME:
Dividends $ 588 $ 133 $ 276,384 $ 1,404
------------------- ------------------- ------------------- -----------------
EXPENSES:
Mortality and expense risk and
other charges 141 57 851,220 1,539
Administrative charges -- -- 192,728 --
------------------- ------------------- ------------------- -----------------
Total expenses 141 57 1,043,948 1,539
------------------- ------------------- ------------------- -----------------
Net investment income (loss) 447 76 (767,564) (135)
------------------- ------------------- ------------------- -----------------
NET REALIZED AND CHANGE IN
UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- 51 -- --
Realized gains (losses) on sale of
investments (199) 7 203,212 433
------------------- ------------------- ------------------- -----------------
Net realized gains (losses) (199) 58 203,212 433
------------------- ------------------- ------------------- -----------------
Change in unrealized gains (losses)
on investments 420 (154) (2,478,847) (1,737)
------------------- ------------------- ------------------- -----------------
Net realized and change in
unrealized gains (losses)
on investments 221 (96) (2,275,635) (1,304)
------------------- ------------------- ------------------- -----------------
Net increase (decrease) in net assets
resulting from operations $ 668 $ (20) $ (3,043,199) $ (1,439)
=================== =================== =================== =================
(a) For the period May 2, 2011 to December 31, 2011.
The accompanying notes are an integral part of these financial statements.
58
[Enlarge/Download Table]
OPPENHEIMER VA PIONEER VCT PIONEER VCT PIONEER VCT PIONEER VCT IBBOTSON PIONEER VCT IBBOTSON
MONEY CULLEN VALUE EMERGING MARKETS EQUITY INCOME GROWTH ALLOCATION MODERATE ALLOCATION
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------- --------------- ------------------- ---------------- ----------------------- -----------------------
$ 11 $ 15,238 $ -- $ 7,468 $ 365,410 $ 676,566
----------------- --------------- ------------------- ---------------- ----------------------- -----------------------
1,612 26,199 12,074 5,131 263,900 350,218
-- 5,234 2,184 917 47,009 67,832
----------------- --------------- ------------------- ---------------- ----------------------- -----------------------
1,612 31,433 14,258 6,048 310,909 418,050
----------------- --------------- ------------------- ---------------- ----------------------- -----------------------
(1,601) (16,195) (14,258) 1,420 54,501 258,516
----------------- --------------- ------------------- ---------------- ----------------------- -----------------------
-- -- -- -- -- --
-- 66,099 130,082 25,366 570,575 478,836
----------------- --------------- ------------------- ---------------- ----------------------- -----------------------
-- 66,099 130,082 25,366 570,575 478,836
----------------- --------------- ------------------- ---------------- ----------------------- -----------------------
-- (151,331) (342,409) (8,175) (1,522,642) (1,687,092)
----------------- --------------- ------------------- ---------------- ----------------------- -----------------------
-- (85,232) (212,327) 17,191 (952,067) (1,208,256)
----------------- --------------- ------------------- ---------------- ----------------------- -----------------------
$ (1,601) $ (101,427) $ (226,585) $ 18,611 $ (897,566) $ (949,740)
================= =============== =================== ================ ======================= =======================
The accompanying notes are an integral part of these financial statements.
59
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
STATEMENTS OF OPERATIONS -- (CONCLUDED)
FOR THE YEAR ENDED DECEMBER 31, 2011
[Enlarge/Download Table]
PIONEER VCT PIONEER VCT T. ROWE PRICE T. ROWE PRICE
MID CAP VALUE REAL ESTATE SHARES GROWTH STOCK INTERNATIONAL STOCK
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------ --------------------- ---------------- ----------------------
INVESTMENT INCOME:
Dividends $ 314,721 $ 5,109 $ 1,350 $ 10,170
------------------ --------------------- ---------------- ----------------------
EXPENSES:
Mortality and expense risk and
other charges 574,581 3,029 60,632 7,506
Administrative charges 122,176 561 -- --
------------------ --------------------- ---------------- ----------------------
Total expenses 696,757 3,590 60,632 7,506
------------------ --------------------- ---------------- ----------------------
Net investment income (loss) (382,036) 1,519 (59,282) 2,664
------------------ --------------------- ---------------- ----------------------
NET REALIZED AND CHANGE IN
UNREALIZED GAINS (LOSSES)
ON INVESTMENTS:
Realized gain distributions -- -- -- --
Realized gains (losses) on sale of
investments (196,587) 38,424 190,162 7,435
------------------ --------------------- ---------------- ----------------------
Net realized gains (losses) (196,587) 38,424 190,162 7,435
------------------ --------------------- ---------------- ----------------------
Change in unrealized gains (losses)
on investments (3,104,961) (16,981) (236,045) (113,333)
------------------ --------------------- ---------------- ----------------------
Net realized and change in
unrealized gains (losses)
on investments (3,301,548) 21,443 (45,883) (105,898)
------------------ --------------------- ---------------- ----------------------
Net increase (decrease) in net assets
resulting from operations $ (3,683,584) $ 22,962 $ (105,165) $ (103,234)
================== ===================== ================ ======================
(a) For the period May 2, 2011 to December 31, 2011.
The accompanying notes are an integral part of these financial statements.
60
[Download Table]
T. ROWE PRICE
PRIME RESERVE UIF U.S. REAL ESTATE
SUB-ACCOUNT SUB-ACCOUNT
---------------- -----------------------
$ 138 $ 630,905
---------------- -----------------------
10,109 902,788
-- 185,328
---------------- -----------------------
10,109 1,088,116
---------------- -----------------------
(9,971) (457,211)
---------------- -----------------------
-- --
-- (1,101,621)
---------------- -----------------------
-- (1,101,621)
---------------- -----------------------
-- 4,597,096
---------------- -----------------------
-- 3,495,475
---------------- -----------------------
$ (9,971) $ 3,038,264
================ =======================
The accompanying notes are an integral part of these financial statements.
61
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
[Enlarge/Download Table]
ALGER SMALL CAP GROWTH AMERICAN FUNDS BOND AMERICAN FUNDS GLOBAL GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------- ------------------------------ -----------------------------
2011 2010 2011 2010 2011 2010
----------------- ------------- ---------------- ------------- ---------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (758,722) $ (711,530) $ 2,043,442 $ 1,503,647 $ (261,336) $ 62,593
Net realized gains (losses) 589,725 (350,422) 133,811 71,340 139,485 (242,233)
Change in unrealized gains
(losses) on investments (2,252,972) 12,464,995 2,454,102 1,549,414 (21,700,254) 18,852,792
----------------- ------------- ---------------- ------------- ---------------- ------------
Net increase (decrease)
in net assets resulting
from operations (2,421,969) 11,403,043 4,631,355 3,124,401 (21,822,105) 18,673,152
----------------- ------------- ---------------- ------------- ---------------- ------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 2,195,218 2,401,744 26,822,933 23,293,244 38,770,989 31,999,173
Net transfers (including fixed
account) (2,247,756) (1,760,881) 5,124,082 6,626,017 (3,648,129) 1,300,586
Contract charges (9,537) (11,016) (691,655) (386,206) (1,345,286) (988,637)
Transfers for contract benefits
and terminations (4,301,291) (5,259,755) (5,392,500) (3,667,017) (13,936,933) (9,981,482)
----------------- ------------- ---------------- ------------- ---------------- ------------
Net increase (decrease)
in net assets resulting
from contract transactions (4,363,366) (4,629,908) 25,862,860 25,866,038 19,840,641 22,329,640
----------------- ------------- ---------------- ------------- ---------------- ------------
Net increase (decrease)
in net assets (6,785,335) 6,773,135 30,494,215 28,990,439 (1,981,464) 41,002,792
NET ASSETS:
Beginning of year 58,325,342 51,552,207 86,203,052 57,212,613 202,441,649 161,438,857
----------------- ------------- ---------------- ------------- ---------------- ------------
End of year $ 51,540,007 $ 58,325,342 $ 116,697,267 $ 86,203,052 $ 200,460,185 $202,441,649
================= ============= ================ ============= ================ ============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
62
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AMERICAN FUNDS
GLOBAL SMALL CAPITALIZATION AMERICAN FUNDS GROWTH AMERICAN FUNDS GROWTH-INCOME DWS I INTERNATIONAL
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------------- --------------------------------- --------------------------------- -----------------------------
2011 2010 2011 2010 2011 2010 2011 2010
----------------- --------------- ---------------- ---------------- ---------------- ---------------- --------------- -------------
$ (14,877) $ 262,137 $ (5,010,575) $ (3,431,734) $ 261,058 $ 54,092 $ 91,330 $ 171,534
(139,499) (620,368) 744,451 (567,706) (342,536) (942,084) (869,544) (987,076)
(18,293,274) 13,607,870 (30,897,273) 84,253,153 (9,057,767) 24,414,298 (2,685,393) 751,044
----------------- --------------- ---------------- ---------------- ---------------- ---------------- --------------- -------------
(18,447,650) 13,249,639 (35,163,397) 80,253,713 (9,139,245) 23,526,306 (3,463,607) (64,498)
----------------- --------------- ---------------- ---------------- ---------------- ---------------- --------------- -------------
19,626,995 15,736,532 115,426,011 107,355,899 42,544,277 42,925,104 950,444 1,099,752
398,603 (1,915,026) (29,884,170) (6,071,807) (5,609,275) (1,498,795) (1,144,150) (923,121)
(427,554) (292,049) (4,084,418) (2,705,735) (1,707,745) (1,248,617) (2,577) (3,204)
(4,931,431) (4,804,773) (37,670,320) (29,767,957) (20,211,054) (16,881,959) (1,643,588) (1,991,327)
----------------- --------------- ---------------- ---------------- ---------------- ---------------- --------------- -------------
14,666,613 8,724,684 43,787,103 68,810,400 15,016,203 23,295,733 (1,839,871) (1,817,900)
----------------- --------------- ---------------- ---------------- ---------------- ---------------- --------------- -------------
(3,781,037) 21,974,323 8,623,706 149,064,113 5,876,958 46,822,039 (5,303,478) (1,882,398)
80,582,925 58,608,602 568,813,924 419,749,811 266,511,951 219,689,912 20,962,763 22,845,161
----------------- --------------- ---------------- ---------------- ---------------- ---------------- --------------- -------------
$ 76,801,888 $ 80,582,925 $ 577,437,630 $ 568,813,924 $ 272,388,909 $ 266,511,951 $ 15,659,285 $ 20,962,763
================= =============== ================ ================ ================ ================ =============== =============
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, 2011 AND 2010
[Enlarge/Download Table]
FEDERATED HIGH INCOME BOND FEDERATED KAUFMAN FEDERATED MANAGED VOLATILITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------------- ----------------------- -------------------------------
2011 2010 2011 2010 (a) 2011 2010 (a)
------------------ -------------- ----------- ----------- ---------- --------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 2,191 $ 1,812 $ (200) $ (834) $ 394 $ (139)
Net realized gains (losses) (29) (31) 289 (21) 506 (39)
Change in unrealized gains
(losses) on investments (1,062) 1,676 (11,209) 10,091 (338) 1,123
------------------ -------------- ----------- ----------- ---------- --------------------
Net increase (decrease)
in net assets resulting
from operations 1,100 3,457 (11,120) 9,236 562 945
------------------ -------------- ----------- ----------- ---------- --------------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners -- -- -- -- -- --
Net transfers (including fixed
account) -- -- -- 76,417 -- 18,638
Contract charges -- -- -- -- -- --
Transfers for contract benefits
and terminations (148) (137) (10,300) (5,779) (5,250) (5,725)
------------------ -------------- ----------- ----------- ---------- --------------------
Net increase (decrease)
in net assets resulting
from contract transactions (148) (137) (10,300) 70,638 (5,250) 12,913
------------------ -------------- ----------- ----------- ---------- --------------------
Net increase (decrease)
in net assets 952 3,320 (21,420) 79,874 (4,688) 13,858
NET ASSETS:
Beginning of year 29,620 26,300 79,874 -- 13,858 --
------------------ -------------- ----------- ----------- ---------- --------------------
End of year $ 30,572 $ 29,620 $ 58,454 $ 79,874 $ 9,170 $ 13,858
================== ============== =========== =========== ========== ====================
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
64
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FIDELITY VIP ASSET MANAGER FIDELITY VIP CONTRAFUND FIDELITY VIP EQUITY-INCOME FIDELITY VIP FUNDSMANAGER 60%
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------------------------- --------------------------------- ----------------------------- ---------------------------------
2011 2010 2011 2010 2011 2010 2011 2010
----------------- ---------------- ---------------- ---------------- -------------- -------------- ---------------- ----------------
$ 511,945 $ 303,216 $ (1,296,078) $ (350,918) $ 58,837 $ 21,440 $ 600,418 $ 3,900,321
(114,708) (1,337,144) 324,914 (2,817,261) (193,847) (368,831) 5,666,461 2,447,161
(3,867,894) 12,924,187 (14,734,080) 54,045,265 111,818 1,122,280 (97,698,668) 84,722,208
----------------- ---------------- ---------------- ---------------- -------------- -------------- ---------------- ----------------
(3,470,657) 11,890,259 (15,705,244) 50,877,086 (23,192) 774,889 (91,431,789) 91,069,690
----------------- ---------------- ---------------- ---------------- -------------- -------------- ---------------- ----------------
2,242,677 2,625,696 66,896,925 48,392,314 11,403 42,332 325,716 605,734
(2,633,327) (3,532,576) (11,240,997) (4,433,949) (133,527) (216,013) 1,556,302,089 1,058,443,175
(15,697) (17,088) (1,174,938) (680,969) -- -- -- --
(10,836,548) (11,293,877) (29,990,377) (27,989,530) (715,517) (789,438) (50,193,438) (9,735,236)
----------------- ---------------- ---------------- ---------------- -------------- -------------- ---------------- ----------------
(11,242,895) (12,217,845) 24,490,613 15,287,866 (837,641) (963,119) 1,506,434,367 1,049,313,673
----------------- ---------------- ---------------- ---------------- -------------- -------------- ---------------- ----------------
(14,713,552) (327,586) 8,785,369 66,164,952 (860,833) (188,230) 1,415,002,578 1,140,383,363
101,784,889 102,112,475 379,741,596 313,576,644 6,350,751 6,538,981 1,176,598,687 36,215,324
----------------- ---------------- ---------------- ---------------- -------------- -------------- ---------------- ----------------
$ 87,071,337 $101,784,889 $ 388,526,965 $ 379,741,596 $ 5,489,918 $ 6,350,751 $2,591,601,265 $1,176,598,687
================= ================ ================ ================ ============== ============== ================ ================
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, 2011 AND 2010
[Enlarge/Download Table]
FIDELITY VIP GROWTH FIDELITY VIP INDEX 500 FIDELITY VIP MID CAP
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------------------- ------------------------------- ----------------------------
2011 2010 2011 2010 2011 2010
------------------ ---------------- --------------- --------------- ------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ (1,417,890) $ (1,406,064) $ 340,934 $ 349,575 $ (2,971,340) $ (1,744,848)
Net realized gains (losses) 884,027 (2,035,626) 1,978,834 747,147 601,363 558,154
Change in unrealized gains
(losses) on investments (550,967) 30,948,642 (1,800,840) 7,212,312 (27,710,709) 36,279,089
------------------ ---------------- --------------- --------------- ------------- --------------
Net increase (decrease)
in net assets resulting
from operations (1,084,830) 27,506,952 518,928 8,309,034 (30,080,686) 35,092,395
------------------ ---------------- --------------- --------------- ------------- --------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 4,613,592 5,252,607 -- 1 84,544,039 56,263,722
Net transfers (including fixed
account) (5,842,980) (4,311,860) (2,671,332) (2,819,598) 8,245,925 (555,816)
Contract charges (26,150) (28,747) (26,798) (29,920) (1,401,929) (681,019)
Transfers for contract benefits
and terminations (13,070,427) (11,675,407) (6,260,083) (7,037,362) (10,852,385) (6,657,156)
------------------ ---------------- --------------- --------------- ------------- --------------
Net increase (decrease)
in net assets resulting
from contract transactions (14,325,965) (10,763,407) (8,958,213) (9,886,879) 80,535,650 48,369,731
------------------ ---------------- --------------- --------------- ------------- --------------
Net increase (decrease)
in net assets (15,410,795) 16,743,545 (8,439,285) (1,577,845) 50,454,964 83,462,126
NET ASSETS:
Beginning of year 147,385,504 130,641,959 68,501,202 70,079,047 187,246,537 103,784,411
------------------ ---------------- --------------- --------------- ------------- --------------
End of year $ 131,974,709 $147,385,504 $60,061,917 $68,501,202 $237,701,501 $187,246,537
================== ================ =============== =============== ============= ==============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
66
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FTVIPT FRANKLIN
FIDELITY VIP MONEY MARKET FIDELITY VIP OVERSEAS FTVIPT FRANKLIN INCOME SECURITIES SMALL CAP VALUE SECURITIES
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------------------- -------------------------------- --------------------------------- -----------------------------
2011 2010 2011 2010 2011 2010 2011 2010
------------------ ---------------- -------------- ----------------- ---------------- ---------------- --------------- -------------
$ (1,660,100) $ (1,226,178) $ 5,521 $ 7,515 $ 8,496,674 $ 7,805,972 $ (259,755) $ (118,159)
-- 49,334 (104,330) (210,565) (590,708) (465,020) 101,526 54,701
-- -- (960,730) 839,726 (6,749,757) 9,173,322 (1,417,162) 5,414,279
------------------ ---------------- -------------- ----------------- ---------------- ---------------- --------------- -------------
(1,660,100) (1,176,844) (1,059,539) 636,676 1,156,209 16,514,274 (1,575,391) 5,350,821
------------------ ---------------- -------------- ----------------- ---------------- ---------------- --------------- -------------
1,568,008,145 1,083,470,105 103,836 110,002 45,663,083 31,740,127 23,006,081 10,270,768
(1,556,656,184) (1,061,048,748) (87,158) (181,503) (2,184,733) 5,350,734 1,010,586 1,603,361
(4,824) (5,638) (67) (61) (1,049,154) (644,646) (256,017) (115,372)
(3,962,238) (4,468,030) (559,156) (581,613) (13,522,903) (10,503,367) (1,198,205) (596,198)
------------------ ---------------- -------------- ----------------- ---------------- ---------------- --------------- -------------
7,384,899 17,947,689 (542,545) (653,175) 28,906,293 25,942,848 22,562,445 11,162,559
------------------ ---------------- -------------- ----------------- ---------------- ---------------- --------------- -------------
5,724,799 16,770,845 (1,602,084) (16,499) 30,062,502 42,457,122 20,987,054 16,513,380
67,343,833 50,572,988 6,266,276 6,282,775 176,548,647 134,091,525 29,718,643 13,205,263
------------------ ---------------- -------------- ----------------- ---------------- ---------------- --------------- -------------
$ 73,068,632 $ 67,343,833 $ 4,664,192 $ 6,266,276 $ 206,611,149 $ 176,548,647 $ 50,705,697 $29,718,643
================== ================ ============== ================= ================ ================ =============== =============
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, 2011 AND 2010
[Enlarge/Download Table]
FTVIPT FTVIPT
FTVIPT MUTUAL SHARES SECURITIES TEMPLETON FOREIGN SECURITIES TEMPLETON GLOBAL BOND SECURITIES
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------------- ---------------------------- ---------------------------------
2011 2010 2011 2010 2011 2010
------------------ ------------- ------------- -------------- ---------------- ----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 1,169,609 $ 168,266 $ (74,353) $ 43,547 $ 4,852,832 $ 25,325
Net realized gains (losses) (500,071) (385,340) (516,658) (879,380) 1,120,261 228,957
Change in unrealized gains
(losses) on investments (3,755,460) 9,513,224 (8,701,781) 5,846,879 (9,853,802) 7,083,996
------------------ ------------- ------------- -------------- ---------------- ----------------
Net increase (decrease)
in net assets resulting
from operations (3,085,922) 9,296,150 (9,292,792) 5,011,046 (3,880,709) 7,338,278
------------------ ------------- ------------- -------------- ---------------- ----------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 20,541,859 16,708,584 9,125,144 10,323,305 61,416,989 32,227,307
Net transfers (including fixed
account) (667,238) 2,264,306 (2,125,671) (388,389) (886,838) 7,610,097
Contract charges (591,511) (388,319) (728,559) (619,064) (791,985) (359,384)
Transfers for contract benefits
and terminations (8,171,464) (5,928,025) (7,652,688) (5,158,694) (4,165,593) (3,158,181)
------------------ ------------- ------------- -------------- ---------------- ----------------
Net increase (decrease)
in net assets resulting
from contract transactions 11,111,646 12,656,546 (1,381,774) 4,157,158 55,572,573 36,319,839
------------------ ------------- ------------- -------------- ---------------- ----------------
Net increase (decrease)
in net assets 8,025,724 21,952,696 (10,674,566) 9,168,204 51,691,864 43,658,117
NET ASSETS:
Beginning of year 110,507,146 88,554,450 79,683,759 70,515,555 88,294,177 44,636,060
------------------ ------------- ------------- -------------- ---------------- ----------------
End of year $ 118,532,870 $ 110,507,146 $ 69,009,193 $79,683,759 $ 139,986,041 $ 88,294,177
================== ============= ============= ============== ================ ================
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
68
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INVESCO V.I. CAPITAL APPRECIATION INVESCO V.I. CORE EQUITY INVESCO V.I. GLOBAL REAL ESTATE INVESCO V.I. INTERNATIONAL GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------------------------- ------------------------- -------------------------------- ----------------------------------
2011 2010 2011 2010 2011 2010 2011 2010
-------------- ------------------- -------------- ---------- --------------- ---------------- ---------------- -----------------
$ (1,637) $ (951) $ (1,633) $ (1,724) $ 343,942 $ 262,267 $ (375,504) $ 562,475
(3,874) (6,842) 11,751 604 (46,041) (35,497) 32,969 41,708
(5,937) 26,623 (11,037) 31,231 (1,422,533) 795,938 (12,319,548) 10,609,535
-------------- ------------------- -------------- ---------- --------------- ---------------- ---------------- -----------------
(11,448) 18,830 (919) 30,111 (1,124,632) 1,022,708 (12,662,083) 11,213,718
-------------- ------------------- -------------- ---------- --------------- ---------------- ---------------- -----------------
-- -- -- -- 6,005,892 3,138,876 56,370,768 36,782,367
(20,997) (43) (39,898) (4,682) (12,840) 418,871 4,565,787 2,732,799
-- -- -- -- (81,075) (40,040) (970,089) (509,705)
(9,137) (33,542) (76,355) (39,341) (348,215) (298,589) (5,093,398) (3,646,505)
-------------- ------------------- -------------- ---------- --------------- ---------------- ---------------- -----------------
(30,134) (33,585) (116,253) (44,023) 5,563,762 3,219,118 54,873,068 35,358,956
-------------- ------------------- -------------- ---------- --------------- ---------------- ---------------- -----------------
(41,582) (14,755) (117,172) (13,912) 4,439,130 4,241,826 42,210,985 46,572,674
142,665 157,420 393,933 407,845 9,028,134 4,786,308 111,888,065 65,315,391
-------------- ------------------- -------------- ---------- --------------- ---------------- ---------------- -----------------
$ 101,083 $ 142,665 $ 276,761 $ 393,933 $ 13,467,264 $ 9,028,134 $ 154,099,050 $ 111,888,065
============== =================== ============== ========== =============== ================ ================ ==================
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, 2011 AND 2010
[Enlarge/Download Table]
INVESCO V.I. INVESCO V.I. INVESCO V.I.
VAN KAMPEN CAPITAL GROWTH VAN KAMPEN EQUITY AND INCOME VAN KAMPEN GROWTH AND INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------ -------------------------------- -----------------------------
2011 2010 2011 2010 2011 2010
--------------- -------------- ---------------- --------------- ---------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ (1,498) $ (1,663) $ 1,105,533 $ 1,428,806 $ (448,610) $ (1,665,286)
Net realized gains (losses) 3,562 (661) 165,761 (177,941) 52,684 5,754
Change in unrealized gains
(losses) on investments (8,828) 22,436 (12,908,159) 29,567,980 (6,271,491) 16,781,592
--------------- -------------- ---------------- --------------- ---------------- ------------
Net increase (decrease)
in net assets resulting
from operations (6,764) 20,112 (11,636,865) 30,818,845 (6,667,417) 15,122,060
--------------- -------------- ---------------- --------------- ---------------- ------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners -- -- 111,202,758 75,371,131 62,478,371 40,927,969
Net transfers (including fixed
account) (6,034) (50) (2,279,723) 7,697,762 1,514,669 4,412,046
Contract charges -- -- (2,133,106) (1,230,553) (1,166,088) (662,294)
Transfers for contract benefits
and terminations (27,933) (6,344) (25,920,610) (16,932,459) (10,258,582) (6,967,310)
--------------- -------------- ---------------- --------------- ---------------- ------------
Net increase (decrease)
in net assets resulting
from contract transactions (33,967) (6,394) 80,869,319 64,905,881 52,568,370 37,710,411
--------------- -------------- ---------------- --------------- ---------------- ------------
Net increase (decrease)
in net assets (40,731) 13,718 69,232,454 95,724,726 45,900,953 52,832,471
NET ASSETS:
Beginning of year 130,764 117,046 345,124,808 249,400,082 160,437,278 107,604,807
--------------- -------------- ---------------- --------------- ---------------- ------------
End of year $ 90,033 $ 130,764 $ 414,357,262 $ 345,124,808 $ 206,338,231 $160,437,278
=============== ============== ================ =============== ================ =============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
70
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INVESCO V.I. LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE
VAN KAMPEN MID CAP VALUE JANUS ASPEN WORLDWIDE VARIABLE AGGRESSIVE GROWTH VARIABLE APPRECIATION
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------------- -------------------------------- --------------------------------- -------------------------------
2011 2010 2011 2010 2011 2010 2011 2010
----------------- --------------- ---------------- --------------- ---------------- ---------------- ---------------- --------------
$ (231,700) $ (112,096) $ (15) $ (15) $ (2,121,777) $ (1,834,353) $ 710,741 $ 518,708
49,468 20,908 228 51 1,220,007 (729,737) 17,260 (46,528)
(11,067) 4,289,045 (1,006) 785 2,212,582 31,554,611 1,216,439 15,933,466
----------------- --------------- ---------------- --------------- ---------------- ---------------- ---------------- --------------
(193,299) 4,197,857 (793) 821 1,310,812 28,990,521 1,944,440 16,405,646
----------------- --------------- ---------------- --------------- ---------------- ---------------- ---------------- --------------
19,778,205 9,830,122 -- -- 31,433,565 18,895,526 66,280,713 46,471,592
867,671 (335,610) -- -- (12,545,454) (4,987,849) (3,565,680) 2,718,317
(246,886) (125,359) -- -- (735,665) (470,056) (1,155,731) (576,020)
(1,330,618) (829,616) (963) (600) (15,095,955) (9,662,148) (12,449,875) (8,050,441)
----------------- --------------- ---------------- --------------- ---------------- ---------------- ---------------- --------------
19,068,372 8,539,537 (963) (600) 3,056,491 3,775,473 49,109,427 40,563,448
----------------- --------------- ---------------- --------------- ---------------- ---------------- ---------------- --------------
18,875,073 12,737,394 (1,756) 221 4,367,303 32,765,994 51,053,867 56,969,094
28,139,044 15,401,650 6,506 6,285 156,471,918 123,705,924 173,626,503 116,657,409
----------------- --------------- ---------------- --------------- ---------------- ---------------- ---------------- --------------
$ 47,014,117 $28,139,044 $ 4,750 $ 6,506 $160,839,221 $156,471,918 $224,680,370 $173,626,503
================= =============== ================ =============== ================ ================ ================ ==============
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, 2011 AND 2010
[Enlarge/Download Table]
LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE
VARIABLE EQUITY INCOME BUILDER VARIABLE FUNDAMENTAL ALL CAP VALUE VARIABLE LARGE CAP GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------------- ----------------------------------- ---------------------------
2011 2010 2011 2010 2011 2010
------------------ ------------- --------------- ------------------- -------------- -----------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 1,791,940 $ 1,827,744 $ (55,381) $ 259,869 $ (71,048) $ (100,014)
Net realized gains (losses) (2,420,420) (2,284,460) (429,752) (692,388) 111,313 (67,178)
Change in unrealized gains
(losses) on investments 5,793,264 7,931,196 (7,192,709) 13,378,879 (159,581) 580,884
------------------ ------------- --------------- ------------------- -------------- -----------
Net increase (decrease)
in net assets resulting
from operations 5,164,784 7,474,480 (7,677,842) 12,946,360 (119,316) 413,692
------------------ ------------- --------------- ------------------- -------------- -----------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 23,221,888 12,770,354 13,848,959 10,634,359 6,049 14,446
Net transfers (including fixed
account) 2,286,092 1,171,468 (676,755) (810,612) (313,456) (431,047)
Contract charges (403,528) (217,562) (398,091) (285,426) (20,879) (23,150)
Transfers for contract benefits
and terminations (7,953,294) (5,138,178) (8,906,368) (6,214,856) (944,135) (727,111)
------------------ ------------- --------------- ------------------- -------------- -----------
Net increase (decrease)
in net assets resulting
from contract transactions 17,151,158 8,586,082 3,867,745 3,323,465 (1,272,421) (1,166,862)
------------------ ------------- --------------- ------------------- -------------- -----------
Net increase (decrease)
in net assets 22,315,942 16,060,562 (3,810,097) 16,269,825 (1,391,737) (753,170)
NET ASSETS:
Beginning of year 81,006,913 64,946,351 99,528,233 83,258,408 6,065,533 6,818,703
------------------ ------------- --------------- ------------------- -------------- -----------
End of year $ 103,322,855 $81,006,913 $ 95,718,136 $ 99,528,233 $4,673,796 $6,065,533
================== ============= =============== =================== ============== ===========
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
72
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LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE LMPVET INVESTMENT LMPVET
VARIABLE LARGE CAP VALUE VARIABLE SMALL CAP GROWTH COUNSEL VARIABLE SOCIAL AWARENESS VARIABLE LIFESTYLE ALLOCATION 50%
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------------- ----------------------------- ---------------------------------- -----------------------------------
2011 2010 2011 2010 2011 2010 2011 2010
---------------- ------------ --------------- ------------- -------------- ------------------- --------------- -------------------
$ 30,483 $ 31,244 $ (565,686) $ (391,996) $ (1,981) $ (1,958) $ 336,680 $ 217,581
(88,723) (95,704) 1,083,054 96,515 (60) (15,882) 400 (104,317)
181,309 249,108 (664,423) 6,313,023 (4,843) 67,430 (529,056) 1,061,494
---------------- ------------ --------------- ------------- -------------- ------------------- --------------- -------------------
123,069 184,648 (147,055) 6,017,542 (6,884) 49,590 (191,976) 1,174,758
---------------- ------------ --------------- ------------- -------------- ------------------- --------------- -------------------
700,135 182,389 13,481,149 8,292,377 -- 1,385 12,152,717 4,403,456
562,360 (27,094) (2,248,018) (778,616) 35,549 (15,771) 179,357 941,570
(12,473) (9,719) (264,709) (153,607) (226) (275) (59,683) (3,210)
(266,528) (159,882) (1,919,394) (1,681,734) (37,746) (39,961) (901,543) (661,319)
---------------- ------------ --------------- ------------- -------------- ------------------- --------------- -------------------
983,494 (14,306) 9,049,028 5,678,420 (2,423) (54,622) 11,370,848 4,680,497
---------------- ------------ --------------- ------------- -------------- ------------------- --------------- -------------------
1,106,563 170,342 8,901,973 11,695,962 (9,307) (5,032) 11,178,872 5,855,255
2,729,796 2,559,454 33,662,804 21,966,842 510,680 515,712 13,086,823 7,231,568
---------------- ------------ --------------- ------------- -------------- ------------------- --------------- -------------------
$ 3,836,359 $ 2,729,796 $42,564,777 $ 33,662,804 $ 501,373 $ 510,680 $ 24,265,695 $ 13,086,823
================ ============ =============== ============= ============== =================== =============== ===================
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, 2011 AND 2010
[Enlarge/Download Table]
LMPVET LMPVET LMPVIT WESTERN ASSET
VARIABLE LIFESTYLE ALLOCATION 70% VARIABLE LIFESTYLE ALLOCATION 85% VARIABLE GLOBAL HIGH YIELD BOND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------------- --------------------------------- -------------------------------
2011 2010 2011 2010 2011 2010
----------------- --------------- ---------------- ---------------- --------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 8,826 $ 14,214 $ 130,678 $ 197,005 $ 4,580,657 $ 4,279,019
Net realized gains (losses) 5,813 (75,321) 528,464 (47,518) (143,505) (257,958)
Change in unrealized gains
(losses) on investments (70,666) 464,939 (2,861,793) 7,347,126 (4,473,336) 2,633,790
----------------- --------------- ---------------- ---------------- --------------- ---------------
Net increase (decrease)
in net assets resulting
from operations (56,027) 403,832 (2,202,651) 7,496,613 (36,184) 6,654,851
----------------- --------------- ---------------- ---------------- --------------- ---------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 4,747 24,506 12,097,744 9,407,404 14,939,359 10,328,608
Net transfers (including fixed
account) 195,887 (205,680) (2,400,301) (238,943) (455,948) 685,318
Contract charges (898) (1,036) (471,294) (349,818) (310,782) (194,240)
Transfers for contract benefits
and terminations (452,053) (273,685) (3,179,175) (1,856,668) (5,511,049) (4,631,610)
----------------- --------------- ---------------- ---------------- --------------- ---------------
Net increase (decrease)
in net assets resulting
from contract transactions (252,317) (455,895) 6,046,974 6,961,975 8,661,580 6,188,076
----------------- --------------- ---------------- ---------------- --------------- ---------------
Net increase (decrease)
in net assets (308,344) (52,063) 3,844,323 14,458,588 8,625,396 12,842,927
NET ASSETS:
Beginning of year 3,395,287 3,447,350 62,035,149 47,576,561 61,092,507 48,249,580
----------------- --------------- ---------------- ---------------- --------------- ---------------
End of year $ 3,086,943 $ 3,395,287 $ 65,879,472 $ 62,035,149 $ 69,717,903 $ 61,092,507
================= =============== ================ ================ =============== ===============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
74
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MIST
ALLIANCEBERNSTEIN
MFS VIT MFS VIT GLOBAL DYNAMIC
INVESTORS TRUST NEW DISCOVERY MFS VIT RESEARCH ALLOCATION
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------ ---------------------------- ------------------------- -----------------
2011 2010 2011 2010 2011 2010 2011 (b)
------------------ ----------- ---------------- ----------- -------------- ---------- -----------------
$ (184) $ (45) $ (652) $ (676) $ (427) $ (531) $ (610,982)
991 (490) 5,729 1,723 10,717 1,434 9,394,668
(1,906) 3,782 (10,466) 13,838 (10,338) 14,248 9,200,376
------------------ ----------- ---------------- ----------- -------------- ---------- -----------------
(1,099) 3,247 (5,389) 14,885 (48) 15,151 17,984,062
------------------ ----------- ---------------- ----------- -------------- ---------- -----------------
-- -- -- -- -- -- 1,370,076,882
-- -- (100) (323) (5,113) -- 259,158,648
-- -- -- -- -- -- --
(8,311) (12,601) (2) (13,188) (62,085) (13,820) (7,840,515)
------------------ ----------- ---------------- ----------- -------------- ---------- -----------------
(8,311) (12,601) (102) (13,511) (67,198) (13,820) 1,621,395,015
------------------ ----------- ---------------- ----------- -------------- ---------- -----------------
(9,410) (9,354) (5,491) 1,374 (67,246) 1,331 1,639,379,077
43,404 52,758 46,865 45,491 112,388 111,057 --
------------------ ----------- ---------------- ----------- -------------- ---------- -----------------
$ 33,994 $ 43,404 $ 41,374 $ 46,865 $ 45,142 $112,388 $1,639,379,077
================== =========== ================ =========== ============== ========== =================
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, 2011 AND 2010
[Enlarge/Download Table]
MIST MIST MIST
AMERICAN FUNDS BALANCED ALLOCATION AMERICAN FUNDS BOND AMERICAN FUNDS GROWTH ALLOCATION
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------------------- --------------------------- --------------------------------
2011 2010 2011 2010 2011 2010
------------------ ---------------- ------------- ------------- ---------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ (8,148,428) $ (9,940,079) $ 1,772,310 $ 122,992 $ (6,860,731) $ (8,649,027)
Net realized gains (losses) 5,025,862 1,431,438 1,617,939 228,924 12,437,663 4,410,087
Change in unrealized gains
(losses) on investments (116,302,276) 218,397,822 10,229,841 6,583,360 (101,766,516) 148,410,760
------------------ ---------------- ------------- ------------- ---------------- ---------------
Net increase (decrease)
in net assets resulting
from operations (119,424,842) 209,889,181 13,620,090 6,935,276 (96,189,584) 144,171,820
------------------ ---------------- ------------- ------------- ---------------- ---------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 523,778,640 780,028,567 60,184,302 95,186,014 136,704,110 180,475,839
Net transfers (including fixed
account) 166,228,603 248,657,423 17,024,537 40,265,959 (25,932,866) 18,088,978
Contract charges (28,232,190) (14,036,590) (3,186,027) (1,541,781) (13,959,734) (11,094,760)
Transfers for contract benefits
and terminations (105,862,347) (61,424,966) (13,088,454) (7,200,361) (57,092,220) (41,629,664)
------------------ ---------------- ------------- ------------- ---------------- ---------------
Net increase (decrease)
in net assets resulting
from contract transactions 555,912,706 953,224,434 60,934,358 126,709,831 39,719,290 145,840,393
------------------ ---------------- ------------- ------------- ---------------- ---------------
Net increase (decrease)
in net assets 436,487,864 1,163,113,615 74,554,448 133,645,107 (56,470,294) 290,012,213
NET ASSETS:
Beginning of year 2,478,289,324 1,315,175,709 274,791,792 141,146,685 1,454,861,016 1,164,848,803
------------------ ---------------- ------------- ------------- ---------------- ---------------
End of year $2,914,777,188 $2,478,289,324 $349,346,240 $274,791,792 $1,398,390,722 $1,454,861,016
================== ================ ============= ============= ================ ===============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
76
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MIST AQR MIST BLACKROCK
MIST MIST MIST GLOBAL RISK GLOBAL TACTICAL
AMERICAN FUNDS GROWTH AMERICAN FUNDS INTERNATIONAL AMERICAN FUNDS MODERATE ALLOCATION BALANCED STRATEGIES
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------- ---------------------------- ----------------------------------- ---------------- ------------------
2011 2010 2011 2010 2011 2010 2011 (b) 2011 (b)
--------------- --------------- -------------- ------------- ---------------- ------------------ --------------- ------------------
$ (6,683,453) $ (4,592,485) $ (347,331) $ (1,838,588) $ (28,571) $ (1,746,826) $ 17,479,259 $ 5,656,760
2,655,999 791,765 2,344,997 590,124 10,610,729 442,079 5,634,878 21,591,062
(35,042,764) 65,409,390 (54,813,728) 18,687,175 (37,218,522) 99,071,297 20,725,299 (29,115,315)
--------------- --------------- -------------- ------------- ---------------- ------------------ --------------- ------------------
(39,070,218) 61,608,670 (52,816,062) 17,438,711 (26,636,364) 97,766,550 43,839,436 (1,867,493)
--------------- --------------- -------------- ------------- ---------------- ------------------ --------------- ------------------
118,207,908 154,860,118 58,161,459 99,256,032 278,554,313 427,726,570 1,541,397,716 2,424,219,934
16,817,001 38,314,169 3,640,815 24,122,092 57,081,088 133,946,313 321,377,493 434,392,897
(5,053,023) (2,420,201) (2,890,116) (1,627,834) (16,902,017) (9,314,240) -- --
(17,862,387) (10,207,058) (11,253,172) (6,247,664) (60,807,127) (37,039,718) (8,490,562) (14,033,053)
--------------- --------------- -------------- ------------- ---------------- ------------------ --------------- ------------------
112,109,499 180,547,028 47,658,986 115,502,626 257,926,257 515,318,925 1,854,284,647 2,844,579,778
--------------- --------------- -------------- ------------- ---------------- ------------------ --------------- ------------------
73,039,281 242,155,698 (5,157,076) 132,941,337 231,289,893 613,085,475 1,898,124,083 2,842,712,285
480,253,525 238,097,827 301,922,149 168,980,812 1,452,175,003 839,089,528 -- --
--------------- --------------- -------------- ------------- ---------------- ------------------ --------------- ------------------
$ 553,292,806 $ 480,253,525 $296,765,073 $301,922,149 $1,683,464,896 $1,452,175,003 $1,898,124,083 $ 2,842,712,285
=============== =============== ============== ============= ================ ================== =============== ==================
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, 2011 AND 2010
[Enlarge/Download Table]
MIST
BLACKROCK HIGH YIELD MIST BLACKROCK LARGE CAP CORE MIST CLARION GLOBAL REAL ESTATE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------------- -------------------------------- --------------------------------
2011 2010 2011 2010 2011 2010
----------------- -------------- --------------- ---------------- ---------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 10,002,346 $ 5,677,284 $ (94,730) $ (52,523) $ 3,272,703 $ 6,777,671
Net realized gains (losses) 3,149,049 7,521,614 12,317 (80,252) (1,143,990) (1,407,595)
Change in unrealized gains
(losses) on investments (12,738,491) 4,162,987 (244,145) 1,037,963 (13,501,877) 10,898,100
----------------- -------------- --------------- ---------------- ---------------- ---------------
Net increase (decrease)
in net assets resulting
from operations 412,904 17,361,885 (326,558) 905,188 (11,373,164) 16,268,176
----------------- -------------- --------------- ---------------- ---------------- ---------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 36,299,074 48,324,470 4,493,594 3,102,112 24,528,504 25,322,980
Net transfers (including fixed
account) 14,571,420 25,077,556 411,577 1,040,120 5,671,940 6,872,912
Contract charges (1,755,621) (890,146) (109,131) (53,878) (1,165,427) (743,161)
Transfers for contract benefits
and terminations (10,270,239) (7,785,000) (1,233,221) (458,682) (9,545,551) (6,511,048)
----------------- -------------- --------------- ---------------- ---------------- ---------------
Net increase (decrease)
in net assets resulting
from contract transactions 38,844,634 64,726,880 3,562,819 3,629,672 19,489,466 24,941,683
----------------- -------------- --------------- ---------------- ---------------- ---------------
Net increase (decrease)
in net assets 39,257,538 82,088,765 3,236,261 4,534,860 8,116,302 41,209,859
NET ASSETS:
Beginning of year 182,367,303 100,278,538 9,613,588 5,078,728 139,330,754 98,120,895
----------------- -------------- --------------- ---------------- ---------------- ---------------
End of year $ 221,624,841 $ 182,367,303 $ 12,849,849 $ 9,613,588 $ 147,447,056 $ 139,330,754
================= ============== =============== ================ ================ ===============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
78
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MIST MIST
MIST DREMAN SMALL CAP VALUE GOLDMAN SACHS MID CAP VALUE HARRIS OAKMARK INTERNATIONAL MIST INVESCO SMALL CAP GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------- ------------------------------- ------------------------------- ------------------------------
2011 2010 2011 2010 2011 2010 2011 2010
----------------- ------------- ---------------- -------------- ---------------- -------------- ---------------- -------------
$ (19,680) $ (203,405) $ (1,510,261) $ (611,735) $ (8,017,677) $ 702,155 $ (3,326,849) $ (2,468,565)
480,921 154,017 (437,036) (1,042,195) (1,470,791) (2,155,945) 1,704,023 (466,657)
(3,142,931) 3,630,265 (10,057,546) 20,162,482 (75,842,892) 54,275,769 (5,165,840) 37,724,319
----------------- ------------- ---------------- -------------- ---------------- -------------- ---------------- -------------
(2,681,690) 3,580,877 (12,004,843) 18,508,552 (85,331,360) 52,821,979 (6,788,666) 34,789,097
----------------- ------------- ---------------- -------------- ---------------- -------------- ---------------- -------------
3,084,816 4,622,090 27,311,392 16,294,780 89,132,376 82,957,906 39,397,856 22,455,325
(1,733,660) (1,986,526) 11,903,331 4,973,575 26,052,514 35,195,388 8,514,721 (1,342,715)
(214,643) (171,270) (760,047) (421,017) (3,519,874) (2,086,105) (1,291,800) (883,578)
(1,657,516) (1,193,285) (7,769,225) (4,968,579) (24,212,315) (18,631,233) (13,769,874) (8,881,497)
----------------- ------------- ---------------- -------------- ---------------- -------------- ---------------- -------------
(521,003) 1,271,009 30,685,451 15,878,759 87,452,701 97,435,956 32,850,903 11,347,535
----------------- ------------- ---------------- -------------- ---------------- -------------- ---------------- -------------
(3,202,693) 4,851,886 18,680,608 34,387,311 2,121,341 150,257,935 26,062,237 46,136,632
24,426,974 19,575,088 112,015,664 77,628,353 459,739,197 309,481,262 186,610,558 140,473,926
----------------- ------------- ---------------- -------------- ---------------- -------------- ---------------- -------------
$ 21,224,281 $ 24,426,974 $ 130,696,272 $ 112,015,664 $ 461,860,538 $459,739,197 $ 212,672,795 $186,610,558
================= ============= ================ ============== ================ ============== ================ =============
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, 2011 AND 2010
[Enlarge/Download Table]
MIST LEGG MASON
MIST JANUS FORTY MIST LAZARD MID CAP CLEARBRIDGE AGGRESSIVE GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------- ------------------------------- ------------------------------
2011 2010 2011 2010 2011 2010
----------------- ------------- ---------------- -------------- ---------------- -------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income $ 36,735 $ (133,826) $ (1,251,739) $ (891,874) $ (3,338,670) $ (1,332,850)
Net realized gains (losses) 332,745 36,628 (826,499) (1,471,607) 428 (927,201)
Change in unrealized gains
(losses) on investments (7,197,681) 3,912,856 (7,687,971) 24,676,618 (7,417,668) 19,271,527
----------------- ------------- ---------------- -------------- ---------------- -------------
Net increase (decrease)
in net assets resulting
from operations (6,828,201) 3,815,658 (9,766,209) 22,313,137 (10,755,910) 17,011,476
----------------- ------------- ---------------- -------------- ---------------- -------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 18,930,830 20,304,418 16,974,214 18,328,029 28,018,670 12,070,122
Net transfers (including fixed
account) 7,075,303 9,195,931 (485,393) 1,824,089 157,703,583 5,475,099
Contract charges (597,164) (235,237) (992,984) (711,764) (1,486,774) (468,260)
Transfers for contract benefits
and terminations (3,168,374) (1,589,721) (9,734,967) (7,455,077) (10,506,265) (4,991,971)
----------------- ------------- ---------------- -------------- ---------------- -------------
Net increase (decrease)
in net assets resulting
from contract transactions 22,240,595 27,675,391 5,760,870 11,985,277 173,729,214 12,084,990
----------------- ------------- ---------------- -------------- ---------------- -------------
Net increase (decrease)
in net assets 15,412,394 31,491,049 (4,005,339) 34,298,414 162,973,304 29,096,466
NET ASSETS:
Beginning of year 53,356,686 21,865,637 135,205,406 100,906,992 102,505,758 73,409,292
----------------- ------------- ---------------- -------------- ---------------- -------------
End of year $ 68,769,080 $ 53,356,686 $ 131,200,067 $ 135,205,406 $ 265,479,062 $102,505,758
================= ============= ================ ============== ================ =============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
80
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MIST LOOMIS SAYLES GLOBAL MARKETS MIST LORD ABBETT BOND DEBENTURE MIST LORD ABBETT MID CAP VALUE MIST MET/EATON VANCE FLOATING RATE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------------- -------------------------------- ------------------------------ ----------------------------------
2011 2010 2011 2010 2011 2010 2011 2010 (c)
---------------- ---------------- ---------------- --------------- --------------- -------------- --------------- ------------------
$ 1,200,692 $ 1,306,860 $ 11,489,236 $ 11,561,665 $ (1,366,186) $ (869,314) $ 156,010 $ (68,479)
955,422 (479,440) 2,277,388 655,266 1,059,026 114,776 (127,391) 3,564
(8,402,666) 17,346,226 (6,571,539) 14,381,461 (6,908,432) 19,290,624 (317,893) 384,248
---------------- ---------------- ---------------- --------------- --------------- -------------- --------------- ------------------
(6,246,552) 18,173,646 7,195,085 26,598,392 (7,215,592) 18,536,086 (289,274) 319,333
---------------- ---------------- ---------------- --------------- --------------- -------------- --------------- ------------------
28,466,597 23,179,133 12,172,985 19,319,664 26,492,453 27,767,987 14,887,687 6,853,875
14,620,858 23,135,238 (7,326,000) (2,789,729) 6,780,922 5,462,249 14,688,663 9,283,240
(1,269,950) (622,257) (1,500,648) (1,255,669) (1,095,984) (589,256) (259,305) (16,372)
(7,724,591) (4,077,382) (23,354,569) (19,865,961) (6,280,489) (3,756,372) (1,665,317) (105,761)
---------------- ---------------- ---------------- --------------- --------------- -------------- --------------- ------------------
34,092,914 41,614,732 (20,008,232) (4,591,695) 25,896,902 28,884,608 27,651,728 16,014,982
---------------- ---------------- ---------------- --------------- --------------- -------------- --------------- ------------------
27,846,362 59,788,378 (12,813,147) 22,006,697 18,681,310 47,420,694 27,362,454 16,334,315
137,171,845 77,383,467 267,920,695 245,913,998 108,323,379 60,902,685 16,334,315 --
---------------- ---------------- ---------------- --------------- --------------- -------------- --------------- ------------------
$ 165,018,207 $137,171,845 $255,107,548 $267,920,695 $127,004,689 $108,323,379 $ 43,696,769 $ 16,334,315
================ ================ ================ =============== =============== ============== =============== ==================
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, 2011 AND 2010
[Enlarge/Download Table]
MIST
MET/FRANKLIN
LOW DURATION MIST MET/FRANKLIN
TOTAL RETURN MIST MET/FRANKLIN MUTUAL SHARES TEMPLETON FOUNDING STRATEGY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------- --------------------------------- -------------------------------
2011 (b) 2011 2010 2011 2010
----------------------- ---------------- ---------------- ---------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (152,040) $ 1,696,557 $ (1,390,510) $ 904,295 $ (7,646,828)
Net realized gains (losses) (24,333) 8,006,370 1,266,548 5,277,964 2,432,686
Change in unrealized gains
(losses) on investments (183,195) (13,800,582) 9,275,276 (29,078,070) 46,152,780
----------------------- ---------------- ---------------- ---------------- --------------
Net increase (decrease)
in net assets resulting
from operations (359,568) (4,097,655) 9,151,314 (22,895,811) 40,938,638
----------------------- ---------------- ---------------- ---------------- --------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 7,119,990 27,023,399 35,685,384 78,960,326 90,556,345
Net transfers (including fixed
account) 21,368,111 14,917,346 17,119,197 (3,212,228) 24,451,171
Contract charges (85,814) (1,248,248) (611,489) (5,811,401) (4,270,744)
Transfers for contract benefits
and terminations (380,887) (4,834,052) (2,680,809) (25,647,259) (19,144,666)
----------------------- ---------------- ---------------- ---------------- --------------
Net increase (decrease)
in net assets resulting
from contract transactions 28,021,400 35,858,445 49,512,283 44,289,438 91,592,106
----------------------- ---------------- ---------------- ---------------- --------------
Net increase (decrease)
in net assets 27,661,832 31,760,790 58,663,597 21,393,627 132,530,744
NET ASSETS:
Beginning of year -- 121,115,835 62,452,238 571,218,147 438,687,403
----------------------- ---------------- ---------------- ---------------- --------------
End of year $ 27,661,832 $ 152,876,625 $ 121,115,835 $ 592,611,774 $571,218,147
======================= ================ ================ ================ ==============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
82
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MIST MIST METLIFE
MIST MET/TEMPLETON GROWTH MET/TEMPLETON INTERNATIONAL BOND MIST METLIFE AGGRESSIVE STRATEGY BALANCED PLUS
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------------- ----------------------------------- ----------------------------------- ----------------
2011 2010 (c) 2011 2010 2011 2010 2011 (b)
----------------- -------------- --------------- ------------------- ---------------- ------------------ ----------------
$ (420,183) $ (52,847) $ 2,534,582 $ (202,517) $ (2,785,815) $ (1,990,286) $ (7,657,134)
(250,304) (6,335) 69,137 44,288 (3,089,096) (7,464,595) --
(8,626,650) 499,282 (3,853,055) 2,042,343 (36,571,916) 73,777,886 (14,018,878)
----------------- -------------- --------------- ------------------- ---------------- ------------------ ----------------
(9,297,137) 440,100 (1,249,336) 1,884,114 (42,446,827) 64,323,005 (21,676,012)
----------------- -------------- --------------- ------------------- ---------------- ------------------ ----------------
6,130,737 2,919,536 10,795,935 17,534,053 57,342,894 73,554,766 2,050,869,939
47,976,839 4,153,672 7,240,507 9,043,816 17,733,773 (2,887,628) 395,600,753
(175,612) (5,446) (501,451) (128,805) (3,746,684) (2,698,799) --
(2,871,098) (127,457) (1,494,812) (469,277) (27,159,129) (21,726,238) (13,020,019)
----------------- -------------- --------------- ------------------- ---------------- ------------------ ----------------
51,060,866 6,940,305 16,040,179 25,979,787 44,170,854 46,242,101 2,433,450,673
----------------- -------------- --------------- ------------------- ---------------- ------------------ ----------------
41,763,729 7,380,405 14,790,843 27,863,901 1,724,027 110,565,106 2,411,774,661
7,380,405 -- 36,302,425 8,438,524 522,967,837 412,402,731 --
----------------- -------------- --------------- ------------------- ---------------- ------------------ ----------------
$ 49,144,134 $7,380,405 $51,093,268 $ 36,302,425 $ 524,691,864 $ 522,967,837 $2,411,774,661
================= ============== =============== =================== ================ ================== ================
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, 2011 AND 2010
[Enlarge/Download Table]
MIST METLIFE BALANCED STRATEGY MIST METLIFE DEFENSIVE STRATEGY MIST METLIFE GROWTH STRATEGY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------- -------------------------------- -------------------------------
2011 2010 2011 2010 2011 2010
--------------- --------------- ---------------- --------------- --------------- ---------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (321,986) $ 23,823,222 $ 13,078,305 $ 24,675,209 $ (4,554,922) $ 4,153,595
Net realized gains (losses) (7,135,125) (8,304,795) 14,867,735 6,974,977 (39,528,555) (69,645,465)
Change in unrealized gains
(losses) on investments (245,352,817) 615,445,203 (24,804,181) 129,661,482 (246,366,960) 719,869,373
--------------- --------------- ---------------- --------------- --------------- ---------------
Net increase (decrease)
in net assets resulting
from operations (252,809,928) 630,963,630 3,141,859 161,311,668 (290,450,437) 654,377,503
--------------- --------------- ---------------- --------------- --------------- ---------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 814,583,313 999,224,042 182,485,981 289,119,491 193,760,643 209,101,091
Net transfers (including fixed
account) 196,744,445 306,719,217 195,534,217 209,055,614 (151,802,510) (103,089,847)
Contract charges (57,236,656) (39,416,993) (18,564,973) (13,246,517) (47,370,881) (44,853,911)
Transfers for contract benefits
and terminations (373,915,527) (292,332,034) (137,707,918) (108,776,548) (290,038,140) (229,225,934)
--------------- --------------- ---------------- --------------- --------------- ---------------
Net increase (decrease)
in net assets resulting
from contract transactions 580,175,575 974,194,232 221,747,307 376,152,040 (295,450,888) (168,068,601)
--------------- --------------- ---------------- --------------- --------------- ---------------
Net increase (decrease)
in net assets 327,365,647 1,605,157,862 224,889,166 537,463,708 (585,901,325) 486,308,902
NET ASSETS:
Beginning of year 6,437,293,439 4,832,135,577 2,003,850,499 1,466,386,791 5,512,372,206 5,026,063,304
--------------- --------------- ---------------- --------------- --------------- ---------------
End of year $6,764,659,086 $6,437,293,439 $2,228,739,665 $2,003,850,499 $4,926,470,881 $5,512,372,206
=============== =============== ================ =============== =============== ===============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
84
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MIST
MIST METLIFE MODERATE STRATEGY MIST MFS EMERGING MARKETS EQUITY MIST MFS RESEARCH INTERNATIONAL MORGAN STANLEY MID CAP GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------------- -------------------------------- -------------------------------- ------------------------------
2011 2010 2011 2010 2011 2010 2011 2010
---------------- ---------------- ---------------- --------------- ---------------- --------------- ---------------- -------------
$ 8,260,756 $ 21,827,918 $ (671,032) $ (1,558,940) $ 853,295 $ 219,400 $ (943,364) $(1,024,509)
4,489,424 (1,300,604) 2,261,367 184,674 (1,887,551) (4,301,992) 3,247,280 249,855
(77,648,493) 249,479,440 (86,014,482) 57,796,915 (37,450,859) 32,018,558 (12,429,566) 19,404,837
---------------- ---------------- ---------------- --------------- ---------------- --------------- ---------------- -------------
(64,898,313) 270,006,754 (84,424,147) 56,422,649 (38,485,115) 27,935,966 (10,125,650) 18,630,183
---------------- ---------------- ---------------- --------------- ---------------- --------------- ---------------- -------------
403,616,625 566,634,946 90,838,512 98,823,178 29,751,782 33,595,278 42,198,117 20,931,300
95,648,790 221,642,130 17,483,888 33,608,948 717,053 (4,781,993) (5,096,769) (368,519)
(28,680,181) (18,256,739) (3,183,140) (1,721,209) (2,096,405) (1,690,651) (769,195) (484,810)
(175,664,925) (134,165,438) (16,209,205) (11,726,391) (22,594,114) (17,692,270) (5,809,772) (3,982,569)
---------------- ---------------- ---------------- --------------- ---------------- --------------- ---------------- -------------
294,920,309 635,854,899 88,930,055 118,984,526 5,778,316 9,430,364 30,522,381 16,095,402
---------------- ---------------- ---------------- --------------- ---------------- --------------- ---------------- -------------
230,021,996 905,861,653 4,505,908 175,407,175 (32,706,799) 37,366,330 20,396,731 34,725,585
3,094,289,659 2,188,428,006 365,169,255 189,762,080 318,521,626 281,155,296 89,015,672 54,290,087
---------------- ---------------- ---------------- --------------- ---------------- --------------- ---------------- -------------
$3,324,311,655 $ 3,094,289,659 $ 369,675,163 $365,169,255 $ 285,814,827 $ 318,521,626 $109,412,403 $89,015,672
================ ================ ================ =============== ================ =============== ================ =============
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, 2011 AND 2010
[Enlarge/Download Table]
MIST MIST PIMCO
OPPENHEIMER CAPITAL APPRECIATION INFLATION PROTECTED BOND MIST PIMCO TOTAL RETURN
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------------- ----------------------------- --------------------------------
2011 2010 2011 2010 2011 2010
------------------ -------------- -------------- -------------- --------------- ----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (2,724,394) $ (2,151,099) $ 248,916 $ 3,575,617 $ 21,344,897 $ 23,217,472
Net realized gains (losses) (7,215,537) (9,290,928) 44,131,061 15,232,778 63,047,734 11,470,536
Change in unrealized gains
(losses) on investments 4,937,085 25,130,998 34,838,493 12,409,725 (55,437,622) 43,519,330
------------------ -------------- -------------- -------------- --------------- ----------------
Net increase (decrease)
in net assets resulting
from operations (5,002,846) 13,688,971 79,218,470 31,218,120 28,955,009 78,207,338
------------------ -------------- -------------- -------------- --------------- ----------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 3,688,939 3,281,141 160,129,547 186,076,017 333,186,254 528,002,334
Net transfers (including fixed
account) (8,584,991) (7,070,024) 43,327,552 55,668,915 149,409,647 193,559,819
Contract charges (881,536) (906,090) (7,523,652) (3,960,123) (17,297,164) (9,123,029)
Transfers for contract benefits
and terminations (17,745,634) (14,069,318) (49,718,972) (36,501,799) (115,097,777) (84,494,300)
------------------ -------------- -------------- -------------- --------------- ----------------
Net increase (decrease)
in net assets resulting
from contract transactions (23,523,222) (18,764,291) 146,214,475 201,283,010 350,200,960 627,944,824
------------------ -------------- -------------- -------------- --------------- ----------------
Net increase (decrease)
in net assets (28,526,068) (5,075,320) 225,432,945 232,501,130 379,155,969 706,152,162
NET ASSETS:
Beginning of year 196,389,755 201,465,075 711,162,874 478,661,744 1,761,602,464 1,055,450,302
------------------ -------------- -------------- -------------- --------------- ----------------
End of year $ 167,863,687 $ 196,389,755 $ 936,595,819 $711,162,874 $2,140,758,433 $1,761,602,464
================== ============== ============== ============== =============== ================
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
86
[Enlarge/Download Table]
MIST PYRAMIS
GOVERNMENT MIST RAINIER
MIST PIONEER FUND MIST PIONEER STRATEGIC INCOME INCOME LARGE CAP EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------------------- --------------------------------- ---------------- -----------------------------
2011 2010 2011 2010 2011 (b) 2011 2010
------------------ ---------------- ---------------- ---------------- ---------------- --------------- -------------
$ (404,574) $ (478,869) $ 15,499,854 $ 10,372,053 $ (133,903) $ (626,323) $ (418,759)
2,955 88,907 3,282,994 393,452 3,899,211 506,257 (368,008)
(8,916,886) 13,686,623 (9,616,858) 20,915,857 6,372,332 (2,839,226) 5,878,677
------------------ ---------------- ---------------- ---------------- ---------------- --------------- -------------
(9,318,505) 13,296,661 9,165,990 31,681,362 10,137,640 (2,959,292) 5,091,910
------------------ ---------------- ---------------- ---------------- ---------------- --------------- -------------
61,189,474 43,813,736 177,819,764 122,502,926 409,917,993 10,685,807 8,349,710
10,727,039 6,452,572 26,591,363 35,965,663 74,096,298 6,717,153 (344,347)
(1,064,843) (405,987) (3,302,752) (1,532,681) -- (414,459) (271,652)
(5,980,748) (3,551,027) (29,614,683) (20,015,981) (3,678,580) (1,926,027) (1,335,546)
------------------ ---------------- ---------------- ---------------- ---------------- --------------- -------------
64,870,922 46,309,294 171,493,692 136,919,927 480,335,711 15,062,474 6,398,165
------------------ ---------------- ---------------- ---------------- ---------------- --------------- -------------
55,552,417 59,605,955 180,659,682 168,601,289 490,473,351 12,103,182 11,490,075
112,914,666 53,308,711 419,601,867 251,000,578 -- 45,894,091 34,404,016
------------------ ---------------- ---------------- ---------------- ---------------- --------------- -------------
$ 168,467,083 $112,914,666 $ 600,261,549 $ 419,601,867 $ 490,473,351 $ 57,997,273 $45,894,091
================== ================ ================ ================ ================ =============== =============
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, 2011 AND 2010
[Enlarge/Download Table]
MIST RCM TECHNOLOGY MIST SSGA GROWTH AND INCOME ETF MIST SSGA GROWTH ETF
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------------- ---------------------------------- ---------------------------
2011 2010 2011 2010 2011 2010
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (1,887,518) $ (1,373,160) $ 2,335,351 $ (2,837,549) $ 74,049 $ (475,732)
Net realized gains (losses) 2,692,086 (256,411) 27,169,125 133,539 2,402,527 1,702,495
Change in unrealized gains
(losses) on investments (14,827,788) 22,084,395 (43,866,906) 78,303,612 (19,223,624) 29,566,077
----------------- --------------- ---------------- ----------------- ------------- -------------
Net increase (decrease)
in net assets resulting
from operations (14,023,220) 20,454,824 (14,362,430) 75,599,602 (16,747,048) 30,792,840
----------------- --------------- ---------------- ----------------- ------------- -------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 15,171,516 15,191,832 322,792,892 380,468,433 77,623,019 80,239,314
Net transfers (including fixed
account) 1,760,386 4,638,445 135,843,318 246,936,681 39,485,865 59,618,400
Contract charges (785,114) (485,886) (12,290,454) (4,250,216) (3,529,118) (1,658,321)
Transfers for contract benefits
and terminations (8,210,063) (4,684,902) (37,015,016) (17,106,759) (13,153,235) (6,830,381)
----------------- --------------- ---------------- ----------------- ------------- -------------
Net increase (decrease)
in net assets resulting
from contract transactions 7,936,725 14,659,489 409,330,740 606,048,139 100,426,531 131,369,012
----------------- --------------- ---------------- ----------------- ------------- -------------
Net increase (decrease)
in net assets (6,086,495) 35,114,313 394,968,310 681,647,741 83,679,483 162,161,852
NET ASSETS:
Beginning of year 109,729,016 74,614,703 995,772,752 314,125,011 325,453,346 163,291,494
----------------- --------------- ---------------- ----------------- ------------- -------------
End of year $ 103,642,521 $ 109,729,016 $1,390,741,062 $ 995,772,752 $ 409,132,829 $325,453,346
================= =============== ================ ================= ============= =============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
88
[Enlarge/Download Table]
MIST MIST
MIST T. ROWE PRICE LARGE CAP VALUE T. ROWE PRICE MID CAP GROWTH THIRD AVENUE SMALL CAP VALUE MIST TURNER MID CAP GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------------- ------------------------------- ------------------------------- -----------------------------
2011 2010 2011 2010 2011 2010 2011 2010
------------------ ------------------ ---------------- -------------- ---------------- -------------- ---------------- ------------
$ (4,421,942) $ (2,179,634) $ (7,260,503) $ (4,952,884) $ (1,626,649) $ (1,246,284) $ (1,456,529) $(1,052,221)
(7,384,308) (11,738,174) 18,524,237 1,190,797 1,034,386 (801,208) 1,449,705 (238,041)
(17,691,215) 88,503,005 (28,498,595) 79,898,499 (33,815,082) 51,293,976 (8,573,460) 16,851,840
------------------ ------------------ ---------------- -------------- ---------------- -------------- ---------------- ------------
(29,497,465) 74,585,197 (17,234,861) 76,136,412 (34,407,345) 49,246,484 (8,580,284) 15,561,578
------------------ ------------------ ---------------- -------------- ---------------- -------------- ---------------- ------------
30,484,726 34,498,056 78,726,422 81,005,710 30,530,090 35,681,864 12,804,091 12,031,375
(3,998,104) (9,485,921) (8,433,758) 16,938,802 (9,772,257) (1,476,974) 911,995 4,219,138
(2,253,601) (1,907,565) (3,394,080) (1,874,240) (1,969,170) (1,539,921) (633,919) (401,167)
(46,120,070) (41,749,572) (25,367,529) (15,531,496) (21,369,368) (16,870,282) (4,678,174) (3,352,777)
------------------ ------------------ ---------------- -------------- ---------------- -------------- ---------------- ------------
(21,887,049) (18,645,002) 41,531,055 80,538,776 (2,580,705) 15,794,687 8,403,993 12,496,569
------------------ ------------------ ---------------- -------------- ---------------- -------------- ---------------- ------------
(51,384,514) 55,940,195 24,296,194 156,675,188 (36,988,050) 65,041,171 (176,291) 28,058,147
558,423,606 502,483,411 414,850,131 258,174,943 327,520,477 262,479,306 83,688,741 55,630,594
------------------ ------------------ ---------------- -------------- ---------------- -------------- ---------------- ------------
$ 507,039,092 $ 558,423,606 $439,146,325 $ 414,850,131 $ 290,532,427 $ 327,520,477 $ 83,512,450 $83,688,741
================== ================== ================ ============== ================ ============== ================ ============
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, 2011 AND 2010
[Enlarge/Download Table]
MSF BARCLAYS
MIST VAN KAMPEN COMSTOCK MSF ARTIO INTERNATIONAL STOCK CAPITAL AGGREGATE BOND INDEX
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------------- ------------------------------ -----------------------------
2011 2010 2011 2010 2011 2010
------------------ -------------- -------------- --------------- ---------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (1,034,826) $ (119,726) $ (467) $ (7,860) $ 1,947,945 $ 605,025
Net realized gains (losses) 900,637 104,490 (261,978) (397,491) 315,491 114,537
Change in unrealized gains
(losses) on investments (8,468,416) 25,565,625 (504,227) 580,114 4,224,865 572,374
------------------ -------------- -------------- --------------- ---------------- ------------
Net increase (decrease)
in net assets resulting
from operations (8,602,605) 25,550,389 (766,672) 174,763 6,488,301 1,291,936
------------------ -------------- -------------- --------------- ---------------- ------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 51,165,602 45,629,577 10,658 16,090 28,770,480 39,404,408
Net transfers (including fixed
account) 11,287,586 10,047,975 61,173 205,234 14,687,646 18,788,029
Contract charges (1,720,362) (973,881) (1,072) (1,253) (982,596) (281,641)
Transfers for contract benefits
and terminations (16,228,131) (10,735,249) (480,245) (370,265) (5,464,816) (2,421,734)
------------------ -------------- -------------- --------------- ---------------- ------------
Net increase (decrease)
in net assets resulting
from contract transactions 44,504,695 43,968,422 (409,486) (150,194) 37,010,714 55,489,062
------------------ -------------- -------------- --------------- ---------------- ------------
Net increase (decrease)
in net assets 35,902,090 69,518,811 (1,176,158) 24,569 43,499,015 56,780,998
NET ASSETS:
Beginning of year 230,561,318 161,042,507 3,979,701 3,955,132 86,674,964 29,893,966
------------------ -------------- -------------- --------------- ---------------- ------------
End of year $ 266,463,408 $ 230,561,318 $ 2,803,543 $ 3,979,701 $ 130,173,979 $86,674,964
================== ============== ============== =============== ================ ============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
90
[Enlarge/Download Table]
MSF BLACKROCK
MSF BLACKROCK BOND INCOME MSF BLACKROCK LARGE CAP VALUE LEGACY LARGE CAP GROWTH MSF BLACKROCK MONEY MARKET
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------------- -------------------------------- ------------------------------ --------------------------------
2011 2010 2011 2010 2011 2010 2011 2010
----------------- --------------- -------------- ----------------- --------------- -------------- ---------------- ---------------
$ 1,050,232 $ 946,236 $ (5,040) $ (6,964) $ (172,815) $ (117,547) $ (9,579,710) $ (9,500,601)
209,734 88,985 (83,604) (131,394) 528,200 313,167 -- --
1,003,839 1,711,245 126,889 334,187 (1,851,168) 1,246,529 -- --
----------------- --------------- -------------- ----------------- --------------- -------------- ---------------- ---------------
2,263,805 2,746,466 38,245 195,829 (1,495,783) 1,442,149 (9,579,710) (9,500,601)
----------------- --------------- -------------- ----------------- --------------- -------------- ---------------- ---------------
5,985,522 7,431,346 188,074 206,964 2,010,128 718,471 174,296,327 200,280,780
415,326 (24,972) 346,199 5,765 2,344,082 (103,953) 42,625,335 (102,198,285)
(455,472) (346,239) (212) (291) (76,170) (44,148) (5,507,909) (4,785,118)
(6,006,341) (5,107,032) (554,227) (319,095) (996,762) (868,449) (122,094,836) (106,443,255)
----------------- --------------- -------------- ----------------- --------------- -------------- ---------------- ---------------
(60,965) 1,953,103 (20,166) (106,657) 3,281,278 (298,079) 89,318,917 (13,145,878)
----------------- --------------- -------------- ----------------- --------------- -------------- ---------------- ---------------
2,202,840 4,699,569 18,079 89,172 1,785,495 1,144,070 79,739,207 (22,646,479)
47,336,145 42,636,576 2,872,585 2,783,413 9,563,155 8,419,085 553,885,805 576,532,284
----------------- --------------- -------------- ----------------- --------------- -------------- ---------------- ---------------
$ 49,538,985 $ 47,336,145 $ 2,890,664 $ 2,872,585 $ 11,348,650 $ 9,563,155 $ 633,625,012 $553,885,805
================= =============== ============== ================= =============== ============== ================ ===============
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, 2011 AND 2010
[Enlarge/Download Table]
MSF DAVIS VENTURE VALUE MSF FI VALUE LEADERS MSF JENNISON GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------------------- ----------------------------- ----------------------------
2011 2010 2011 2010 2011 2010
------------------ ---------------- -------------- -------------- -------------- -------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (3,661,209) $ (3,847,449) $ (36,847) $ (15,392) $ (3,862,754) $ (2,553,927)
Net realized gains (losses) 3,865,479 724,558 (166,827) (191,128) 4,303,744 113,415
Change in unrealized gains
(losses) on investments (37,130,418) 57,763,744 (198,036) 775,693 (4,175,864) 23,243,885
------------------ ---------------- -------------- -------------- -------------- -------------
Net increase (decrease)
in net assets resulting
from operations (36,926,148) 54,640,853 (401,710) 569,173 (3,734,874) 20,803,373
------------------ ---------------- -------------- -------------- -------------- -------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 68,707,355 88,556,952 502,756 930,358 28,373,571 37,818,417
Net transfers (including fixed
account) 1,728,239 8,497,558 339,769 234,046 (3,830,425) 6,868,212
Contract charges (4,208,506) (2,997,527) (40,341) (26,263) (1,729,006) (1,222,061)
Transfers for contract benefits
and terminations (36,932,443) (29,777,128) (1,066,219) (512,619) (14,724,813) (11,101,785)
------------------ ---------------- -------------- -------------- -------------- -------------
Net increase (decrease)
in net assets resulting
from contract transactions 29,294,645 64,279,855 (264,035) 625,522 8,089,327 32,362,783
------------------ ---------------- -------------- -------------- -------------- -------------
Net increase (decrease)
in net assets (7,631,503) 118,920,708 (665,745) 1,194,695 4,354,453 53,166,156
NET ASSETS:
Beginning of year 606,785,200 487,864,492 5,267,530 4,072,835 243,817,657 190,651,501
------------------ ---------------- -------------- -------------- -------------- -------------
End of year $ 599,153,697 $606,785,200 $ 4,601,785 $ 5,267,530 $ 248,172,110 $243,817,657
================== ================ ============== ============== ============== =============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
92
[Enlarge/Download Table]
MSF MET/DIMENSIONAL
MSF LOOMIS SAYLES SMALL CAP CORE MSF MET/ARTISAN MID CAP VALUE INTERNATIONAL SMALL COMPANY MSF METLIFE CONSERVATIVE ALLOCATION
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------------- ------------------------------- --------------------------- ------------------------------------
2011 2010 2011 2010 2011 2010 2011 2010
----------------- --------------- ---------------- -------------- --------------- ----------- --------------- --------------------
$ (163,817) $ (66,625) $ (1,804,625) $ (2,016,341) $ 163,960 $ (74,101) $ 67,670 $ 275,768
236,293 52,849 (4,721,063) (8,689,096) 1,929,239 1,440,494 122,681 354,562
(316,577) 1,146,011 16,718,666 35,137,677 (11,314,641) 4,020,489 (26,700) 307,150
----------------- --------------- ---------------- -------------- --------------- ----------- --------------- --------------------
(244,101) 1,132,235 10,192,978 24,432,240 (9,221,442) 5,386,882 163,651 937,480
----------------- --------------- ---------------- -------------- --------------- ----------- --------------- --------------------
3,145,758 3,008,912 14,435,287 15,548,005 12,367,561 11,080,864 9,587 74,196
790,442 1,307,578 (4,525,054) (7,453,544) 10,261,540 3,658,370 1,116,876 (1,366,604)
(97,951) (28,834) (1,217,992) (1,007,295) (349,341) (146,969) (77,051) (80,329)
(500,976) (186,487) (17,228,405) (13,585,886) (1,583,390) (1,665,871) (815,906) (337,980)
----------------- --------------- ---------------- -------------- --------------- ----------- --------------- --------------------
3,337,273 4,101,169 (8,536,164) (6,498,720) 20,696,370 12,926,394 233,506 (1,710,717)
----------------- --------------- ---------------- -------------- --------------- ----------- --------------- --------------------
3,093,172 5,233,404 1,656,814 17,933,520 11,474,928 18,313,276 397,157 (773,237)
7,224,075 1,990,671 213,857,206 195,923,686 35,750,236 17,436,960 9,998,191 10,771,428
----------------- --------------- ---------------- -------------- --------------- ----------- --------------- --------------------
$ 10,317,247 $ 7,224,075 $ 215,514,020 $ 213,857,206 $ 47,225,164 $35,750,236 $ 10,395,348 $ 9,998,191
================= =============== ================ ============== =============== ============ =============== ====================
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, 2011 AND 2010
[Enlarge/Download Table]
MSF METLIFE
CONSERVATIVE TO MODERATE ALLOCATION MSF METLIFE MID CAP STOCK INDEX MSF METLIFE MODERATE ALLOCATION
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------------------- ------------------------------- -------------------------------
2011 2010 2011 2010 2011 2010
------------------ ---------------- ------------- ------------------ --------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 31,247 $ 138,702 $ (611,052) $ (260,215) $ (96,570) $ 363,596
Net realized gains (losses) 249,879 107,507 3,676,366 (14,190) 92,206 (281,593)
Change in unrealized gains
(losses) on investments (318,879) 548,177 (6,803,063) 9,587,123 (1,412,843) 4,846,286
------------------ ---------------- ------------- ------------------ --------------- --------------
Net increase (decrease)
in net assets resulting
from operations (37,753) 794,386 (3,737,749) 9,312,718 (1,417,207) 4,928,289
------------------ ---------------- ------------- ------------------ --------------- --------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 27,147 69,146 21,214,056 19,332,219 529,488 416,630
Net transfers (including fixed
account) (917,334) (80,023) 4,811,816 8,788,748 755,597 941,258
Contract charges (63,552) (70,068) (495,418) (121,148) (401,703) (393,540)
Transfers for contract benefits
and terminations (1,122,419) (471,770) (3,459,711) (1,822,663) (3,899,306) (2,033,561)
------------------ ---------------- ------------- ------------------ --------------- --------------
Net increase (decrease)
in net assets resulting
from contract transactions (2,076,158) (552,715) 22,070,743 26,177,156 (3,015,924) (1,069,213)
------------------ ---------------- ------------- ------------------ --------------- --------------
Net increase (decrease)
in net assets (2,113,911) 241,671 18,332,994 35,489,874 (4,433,131) 3,859,076
NET ASSETS:
Beginning of year 9,257,856 9,016,185 59,472,935 23,983,061 48,715,861 44,856,785
------------------ ---------------- ------------- ------------------ --------------- --------------
End of year $ 7,143,945 $ 9,257,856 $ 77,805,929 $ 59,472,935 $ 44,282,730 $ 48,715,861
================== ================ ============= ================== =============== ==============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
94
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MSF METLIFE
MODERATE TO AGGRESSIVE ALLOCATION MSF METLIFE STOCK INDEX MSF MFS TOTAL RETURN MSF MFS VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------------ --------------------------------- ------------------------------- -----------------------------
2011 2010 2011 2010 2011 2010 2011 2010
----------------- ------------------ ---------------- ---------------- --------------- --------------- --------------- -------------
$ (161,655) $ 219,362 $ (541,316) $ (321,143) $ 420,877 $ 521,435 $ (51,339) $ (135,936)
(336,754) (651,563) 6,222,006 (1,255,570) (473,539) (860,808) 110,867 (310,701)
(2,412,130) 6,983,802 (6,858,838) 38,151,546 350,834 3,449,400 (361,758) 4,411,295
----------------- ------------------ ---------------- ---------------- --------------- --------------- --------------- -------------
(2,910,539) 6,551,601 (1,178,148) 36,574,833 298,172 3,110,027 (302,230) 3,964,658
----------------- ------------------ ---------------- ---------------- --------------- --------------- --------------- -------------
354,953 283,570 35,862,652 42,455,345 1,538,084 2,095,943 5,478,914 6,763,435
(692,805) 770,376 3,699,860 3,607,353 (917,347) (777,300) (3,242,915) 2,915,996
(534,363) (520,426) (1,876,090) (1,245,063) (94,916) (82,268) (342,572) (238,593)
(5,262,248) (1,880,898) (23,701,570) (19,449,033) (5,109,884) (4,441,917) (3,266,565) (1,959,275)
----------------- ------------------ ---------------- ---------------- --------------- --------------- --------------- -------------
(6,134,463) (1,347,378) 13,984,852 25,368,602 (4,584,063) (3,205,542) (1,373,138) 7,481,563
----------------- ------------------ ---------------- ---------------- --------------- --------------- --------------- -------------
(9,045,002) 5,204,223 12,806,704 61,943,435 (4,285,891) (95,515) (1,675,368) 11,446,221
57,766,976 52,562,753 343,187,076 281,243,641 40,676,709 40,772,224 45,430,281 33,984,060
----------------- ------------------ ---------------- ---------------- --------------- --------------- --------------- -------------
$ 48,721,974 $ 57,766,976 $ 355,993,780 $ 343,187,076 $ 36,390,818 $ 40,676,709 $ 43,754,913 $45,430,281
================= ================== ================ ================ =============== =============== =============== =============
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, 2011 AND 2010
[Enlarge/Download Table]
MSF
MSF MORGAN STANLEY EAFE INDEX MSF NEUBERGER BERMAN GENESIS NEUBERGER BERMAN MID CAP VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------------------------- ----------------------------- -------------------------------
2011 2010 2011 2010 2011 2010
------------------ --------------- --------------- ------------- -------------- ----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 516,838 $ 300,599 $ (65,542) $ (71,882) $ (38,624) $ (10,254)
Net realized gains (losses) (214,534) (373,439) (367,718) (650,477) 11,924 14,391
Change in unrealized gains
(losses) on investments (11,175,105) 3,884,414 835,096 2,336,728 (341,843) 277,374
------------------ --------------- --------------- ------------- -------------- ----------------
Net increase (decrease)
in net assets resulting
from operations (10,872,801) 3,811,574 401,836 1,614,369 (368,543) 281,511
------------------ --------------- --------------- ------------- -------------- ----------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 17,895,684 21,515,731 1,545,630 913,386 2,485,937 1,248,510
Net transfers (including fixed
account) 6,493,942 8,263,400 425,035 (369,832) (81,603) 245,962
Contract charges (482,401) (160,371) (1,915) (690) (25,178) (3,205)
Transfers for contract benefits
and terminations (2,709,903) (1,694,141) (833,642) (920,397) (113,206) (13,696)
------------------ --------------- --------------- ------------- -------------- ----------------
Net increase (decrease)
in net assets resulting
from contract transactions 21,197,322 27,924,619 1,135,108 (377,533) 2,265,950 1,477,571
------------------ --------------- --------------- ------------- -------------- ----------------
Net increase (decrease)
in net assets 10,324,521 31,736,193 1,536,944 1,236,836 1,897,407 1,759,082
NET ASSETS:
Beginning of year 58,834,689 27,098,496 9,730,049 8,493,213 1,984,636 225,554
------------------ --------------- --------------- ------------- -------------- ----------------
End of year $ 69,159,210 $ 58,834,689 $11,266,993 $ 9,730,049 $3,882,043 $ 1,984,636
================== =============== =============== ============= ============== ================
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
96
[Enlarge/Download Table]
MSF MSF
MSF OPPENHEIMER GLOBAL EQUITY MSF RUSSELL 2000 INDEX T. ROWE PRICE LARGE CAP GROWTH T. ROWE PRICE SMALL CAP GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------------- ------------------------------- --------------------------------- ---------------------------------
2011 2010 2011 2010 2011 2010 2011 2010
---------------- --------------- --------------- --------------- -------------- ------------------ -------------- ------------------
$ 33,748 $ (12,767) $ (411,085) $ (198,940) $ (23,368) $ (17,880) $ (128,231) $ (110,115)
32,088 (121,999) 817,885 84,268 50,572 4,288 674,320 262,986
(1,057,952) 1,598,724 (4,414,923) 7,422,690 (71,297) 174,952 (496,604) 1,841,343
---------------- --------------- --------------- --------------- -------------- ------------------ -------------- ------------------
(992,116) 1,463,958 (4,008,123) 7,308,018 (44,093) 161,360 49,485 1,994,214
---------------- --------------- --------------- --------------- -------------- ------------------ -------------- ------------------
14,604 45,146 17,451,216 17,061,843 10,423 4,645 164,091 153,649
(112,692) (349,931) 6,432,166 8,588,645 290,485 156,041 (107,084) 152,774
(48,035) (46,244) (418,129) (110,588) (525) (517) (64,784) (55,446)
(803,879) (744,464) (2,168,425) (1,392,164) (156,316) (117,700) (827,214) (366,307)
---------------- --------------- --------------- --------------- -------------- ------------------ -------------- ------------------
(950,002) (1,095,493) 21,296,828 24,147,736 144,067 42,469 (834,991) (115,330)
---------------- --------------- --------------- --------------- -------------- ------------------ -------------- ------------------
(1,942,118) 368,465 17,288,705 31,455,754 99,974 203,829 (785,506) 1,878,884
11,272,119 10,903,654 46,792,763 15,337,009 1,365,647 1,161,818 8,285,648 6,406,764
---------------- --------------- --------------- --------------- -------------- ------------------ -------------- ------------------
$ 9,330,001 $ 11,272,119 $ 64,081,468 $46,792,763 $1,465,621 $ 1,365,647 $7,500,142 $ 8,285,648
================ =============== =============== =============== ============== ================== ============== ==================
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, 2011 AND 2010
[Enlarge/Download Table]
MSF VAN ECK MSF WESTERN ASSET
GLOBAL NATURAL RESOURCES MANAGEMENT U.S. GOVERNMENT NEUBERGER BERMAN GENESIS
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------------------------- --------------------------------- ---------------------------
2011 2010 2011 2010 2011 2010
------------------ --------------- ---------------- ---------------- -------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (462,898) $ (514,602) $ (708,643) $ 1,314,477 $ (3) $ (79)
Net realized gains (losses) 9,617,357 2,100,435 7,987,260 693,982 710 463
Change in unrealized gains
(losses) on investments (31,541,279) 12,805,750 1,445,269 3,670,982 (351) 1,309
------------------ --------------- ---------------- ---------------- -------------- ------------
Net increase (decrease)
in net assets resulting
from operations (22,386,820) 14,391,583 8,723,886 5,679,441 356 1,693
------------------ --------------- ---------------- ---------------- -------------- ------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 34,219,632 29,380,798 59,541,185 59,447,399 -- --
Net transfers (including fixed
account) 23,949,431 13,938,995 18,969,886 20,021,970 -- --
Contract charges (935,611) (264,726) (1,915,584) (1,131,770) -- --
Transfers for contract benefits
and terminations (2,885,420) (710,853) (14,697,313) (10,034,988) (1,576) (1,815)
------------------ --------------- ---------------- ---------------- -------------- ------------
Net increase (decrease)
in net assets resulting
from contract transactions 54,348,032 42,344,214 61,898,174 68,302,611 (1,576) (1,815)
------------------ --------------- ---------------- ---------------- -------------- ------------
Net increase (decrease)
in net assets 31,961,212 56,735,797 70,622,060 73,982,052 (1,220) (122)
NET ASSETS:
Beginning of year 74,371,723 17,635,926 214,907,918 140,925,866 8,663 8,785
------------------ --------------- ---------------- ---------------- -------------- ------------
End of year $ 106,332,935 $ 74,371,723 $ 285,529,978 $ 214,907,918 $ 7,443 $ 8,663
================== =============== ================ ================ ============== ============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
98
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OPPENHEIMER VA OPPENHEIMER VA
OPPENHEIMER VA CORE BOND GLOBAL STRATEGIC INCOME MAIN STREET SMALL- & MID-CAP OPPENHEIMER VA MAIN STREET
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------- -------------------------- ------------------------------- -----------------------------
2011 2010 2011 2010 2011 2010 2011 2010
-------------- ------------ -------------- ----------- --------------- --------------- -------------- --------------
$ 447 $ 781 $ 76 $ 1,178 $ (767,564) $ (533,716) $ (135) $ (333)
(199) (25,321) 58 610 203,212 126,865 433 (1,607)
420 27,071 (154) (781) (2,478,847) 12,065,565 (1,737) 17,514
-------------- ------------ -------------- ----------- --------------- --------------- -------------- --------------
668 2,531 (20) 1,007 (3,043,199) 11,658,714 (1,439) 15,574
-------------- ------------ -------------- ----------- --------------- --------------- -------------- --------------
-- -- -- -- 19,198,573 18,693,771 -- --
-- -- -- -- (1,296,984) (1,159,906) -- --
-- -- -- -- (583,543) (343,300) -- --
(403) (50,402) (2) (11,485) (3,112,303) (2,399,412) (10,510) (17,151)
-------------- ------------ -------------- ----------- --------------- --------------- -------------- --------------
(403) (50,402) (2) (11,485) 14,205,743 14,791,153 (10,510) (17,151)
-------------- ------------ -------------- ----------- --------------- --------------- -------------- --------------
265 (47,871) (22) (10,478) 11,162,544 26,449,867 (11,949) (1,577)
9,885 57,756 4,097 14,575 70,331,777 43,881,910 119,249 120,826
-------------- ------------ -------------- ----------- --------------- --------------- -------------- --------------
$ 10,150 $ 9,885 $ 4,075 $ 4,097 $ 81,494,321 $ 70,331,777 $ 107,300 $ 119,249
============== ============ ============== =========== =============== =============== ============== ==============
The accompanying notes are an integral part of these financial statements.
99
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
[Enlarge/Download Table]
OPPENHEIMER VA MONEY PIONEER VCT CULLEN VALUE PIONEER VCT EMERGING MARKETS
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------- ----------------------------- -------------------------------
2011 2010 2011 2010 2011 2010
---------------- -------------- -------------- -------------- -------------- ----------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ (1,601) $ (1,605) $ (16,195) $ (18,476) $ (14,258) $ (14,019)
Net realized gains (losses) -- -- 66,099 22,967 130,082 51,198
Change in unrealized gains
(losses) on investments -- -- (151,331) 155,011 (342,409) 110,840
---------------- -------------- -------------- -------------- -------------- ----------------
Net increase (decrease)
in net assets resulting
from operations (1,601) (1,605) (101,427) 159,502 (226,585) 148,019
---------------- -------------- -------------- -------------- -------------- ----------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners -- -- 49,717 54,370 1,532 43,087
Net transfers (including fixed
account) -- -- (11,643) 197,796 (235,661) 45,142
Contract charges -- -- (22,314) (19,010) (7,667) (7,268)
Transfers for contract benefits
and terminations -- (2) (71,015) (67,707) (38,456) (37,357)
---------------- -------------- -------------- -------------- -------------- ----------------
Net increase (decrease)
in net assets resulting
from contract transactions -- (2) (55,255) 165,449 (280,252) 43,604
---------------- -------------- -------------- -------------- -------------- ----------------
Net increase (decrease)
in net assets (1,601) (1,607) (156,682) 324,951 (506,837) 191,623
NET ASSETS:
Beginning of year 116,310 117,917 2,192,843 1,867,892 1,212,537 1,020,914
---------------- -------------- -------------- -------------- -------------- ----------------
End of year $ 114,709 $ 116,310 $2,036,161 $2,192,843 $ 705,700 $ 1,212,537
================ ============== ============== ============== ============== ================
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
100
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PIONEER VCT PIONEER VCT
PIONEER VCT EQUITY INCOME IBBOTSON GROWTH ALLOCATION IBBOTSON MODERATE ALLOCATION PIONEER VCT MID CAP VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
---------------------------- ------------------------------- ------------------------------- -----------------------------
2011 2010 2011 2010 2011 2010 2011 2010
-------------- ------------- --------------- --------------- --------------- --------------- --------------- -------------
$ 1,420 $ 1,630 $ 54,501 $ 39,491 $ 258,516 $ 252,038 $ (382,036) $ (225,376)
25,366 17,928 570,575 360,330 478,836 221,662 (196,587) (237,712)
(8,175) 38,303 (1,522,642) 1,818,686 (1,687,092) 2,500,603 (3,104,961) 6,635,500
-------------- ------------- --------------- --------------- --------------- --------------- --------------- -------------
18,611 57,861 (897,566) 2,218,507 (949,740) 2,974,303 (3,683,584) 6,172,412
-------------- ------------- --------------- --------------- --------------- --------------- --------------- -------------
17,935 9,062 511,714 1,115,979 328,456 411,530 10,108,088 7,085,201
2,188 (9,014) 91,092 (327,776) (397,747) 225,730 93,726 950,970
(3,408) (2,995) (171,221) (126,183) (304,770) (244,941) (247,775) (158,947)
(39,808) (33,620) (1,184,076) (428,428) (224,335) (166,894) (3,747,196) (2,465,321)
-------------- ------------- --------------- --------------- --------------- --------------- --------------- -------------
(23,093) (36,567) (752,491) 233,592 (598,396) 225,425 6,206,843 5,411,903
-------------- ------------- --------------- --------------- --------------- --------------- --------------- -------------
(4,482) 21,294 (1,650,057) 2,452,099 (1,548,136) 3,199,728 2,523,259 11,584,315
375,754 354,460 19,386,421 16,934,322 27,517,066 24,317,338 46,621,818 35,037,503
-------------- ------------- --------------- --------------- --------------- --------------- --------------- -------------
$ 371,272 $ 375,754 $ 17,736,364 $ 19,386,421 $ 25,968,930 $ 27,517,066 $ 49,145,077 $46,621,818
============== ============= =============== =============== =============== =============== =============== =============
The accompanying notes are an integral part of these financial statements.
101
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS -- (CONCLUDED)
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
[Enlarge/Download Table]
PIONEER VCT REAL ESTATE SHARES T. ROWE PRICE GROWTH STOCK T. ROWE PRICE INTERNATIONAL STOCK
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------------- ---------------------------- ----------------------------------
2011 2010 2011 2010 2011 2010
---------------- --------------- -------------- ------------- -------------- -------------------
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) $ 1,519 $ 1,872 $ (59,282) $ (56,018) $ 2,664 $ 2,058
Net realized gains (losses) 38,424 28,087 190,162 12,135 7,435 (5,699)
Change in unrealized gains
(losses) on investments (16,981) 27,619 (236,045) 1,033,917 (113,333) 114,449
---------------- --------------- -------------- ------------- -------------- -------------------
Net increase (decrease)
in net assets resulting
from operations 22,962 57,578 (105,165) 990,034 (103,234) 110,808
---------------- --------------- -------------- ------------- -------------- -------------------
CONTRACT TRANSACTIONS:
Purchase payments received
from contract owners 5,618 5,951 216,607 203,128 41,333 38,671
Net transfers (including fixed
account) 32,428 (16,768) (663,078) (490,172) (34,802) (74,296)
Contract charges (2,402) (2,048) (1,812) (1,988) (248) (245)
Transfers for contract benefits
and terminations (40,967) (39,423) (601,473) (523,405) (129,646) (20,782)
---------------- --------------- -------------- ------------- -------------- -------------------
Net increase (decrease)
in net assets resulting
from contract transactions (5,323) (52,288) (1,049,756) (812,437) (123,363) (56,652)
---------------- --------------- -------------- ------------- -------------- -------------------
Net increase (decrease)
in net assets 17,639 5,290 (1,154,921) 177,597 (226,597) 54,156
NET ASSETS:
Beginning of year 234,208 228,918 7,170,858 6,993,261 932,126 877,970
---------------- --------------- -------------- ------------- -------------- -------------------
End of year $ 251,847 $ 234,208 $6,015,937 $7,170,858 $ 705,529 $ 932,126
================ =============== ============== ============= ============== ===================
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
The accompanying notes are an integral part of these financial statements.
102
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T. ROWE PRICE PRIME RESERVE UIF U.S. REAL ESTATE
SUB-ACCOUNT SUB-ACCOUNT
------------------------------ -----------------------------
2011 2010 2011 2010
-------------- --------------- --------------- -------------
$ (9,971) $ (12,183) $ (457,211) $ 402,580
-- -- (1,101,621) (3,793,020)
-- -- 4,597,096 18,634,695
-------------- --------------- --------------- -------------
(9,971) (12,183) 3,038,264 15,244,255
-------------- --------------- --------------- -------------
256 -- 14,746,373 7,881,010
(193,918) 27,384 (3,659,645) (6,001,729)
(252) (299) (314,694) (214,161)
(86,977) (150,759) (6,209,041) (4,411,829)
-------------- --------------- --------------- -------------
(280,891) (123,674) 4,562,993 (2,746,709)
-------------- --------------- --------------- -------------
(290,862) (135,857) 7,601,257 12,497,546
1,264,618 1,400,475 68,963,648 56,466,102
-------------- --------------- --------------- -------------
$ 973,756 $ 1,264,618 $ 76,564,905 $68,963,648
============== =============== =============== =============
The accompanying notes are an integral part of these financial statements.
103
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS
1. ORGANIZATION
MetLife Investors USA Separate Account A (the "Separate Account"), a separate
account of MetLife Investors USA Insurance Company (the "Company"), was
established by the Company's Board of Directors on May 29, 1980 to support
operations of the Company with respect to certain variable annuity contracts
(the "Contracts"). The Company is an indirect wholly-owned subsidiary of
MetLife, Inc., a Delaware corporation. The Separate Account is registered as a
unit investment trust under the Investment Company Act of 1940, as amended, and
exists in accordance with the regulations of the Delaware Department of
Insurance.
The Separate Account is divided into Sub-Accounts, each of which is treated as
an individual accounting entity for financial reporting purposes. Each
Sub-Account invests in shares of the corresponding portfolio, series, or fund
(with the same name) of registered investment management companies (the
"Trusts"), which are presented below:
AIM Variable Insurance Funds (Invesco Variable
Insurance Funds) ("Invesco V.I.")
American Funds Insurance Series ("American Funds")
DWS Variable Series I ("DWS I")
Federated Insurance Series ("Federated")
Fidelity Variable Insurance Products ("Fidelity VIP")
Franklin Templeton Variable Insurance Products Trust
("FTVIPT")
Janus Aspen Series ("Janus Aspen")
Legg Mason Partners Variable Equity Trust
("LMPVET")
Legg Mason Partners Variable Income Trust ("LMPVIT")
Met Investors Series Trust ("MIST")*
Metropolitan Series Fund, Inc. ("MSF")*
MFS Variable Insurance Trust ("MFS VIT")
Neuberger Berman Equity Funds ("Neuberger Berman")
Oppenheimer Variable Account Funds
("Oppenheimer VA")
Pioneer Variable Contracts Trust ("Pioneer VCT")
T. Rowe Price Growth Stock Fund, Inc.
T. Rowe Price International Funds, Inc.
T. Rowe Price Prime Reserve Fund, Inc.
The Alger Portfolios ("Alger")
The Universal Institutional Funds, Inc. ("UIF")
* 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.
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, 2011:
Alger Small Cap Growth Sub-Account
American Funds Bond Sub-Account
American Funds Global Growth Sub-Account
American Funds Global Small Capitalization
Sub-Account
American Funds Growth Sub-Account
American Funds Growth-Income Sub-Account
DWS I International Sub-Account
Federated High Income Bond Sub-Account
Federated Kaufman Sub-Account
Federated Managed Volatility Sub-Account
Fidelity VIP Asset Manager Sub-Account
Fidelity VIP Contrafund Sub-Account*
Fidelity VIP Equity-Income Sub-Account
Fidelity VIP FundsManager 60% Sub-Account
Fidelity VIP Growth Sub-Account
Fidelity VIP Index 500 Sub-Account
Fidelity VIP Mid Cap Sub-Account
Fidelity VIP Money Market Sub-Account*
Fidelity VIP Overseas Sub-Account
FTVIPT Franklin Income Securities Sub-Account
FTVIPT Franklin Small Cap Value Securities
Sub-Account
FTVIPT Mutual Shares Securities Sub-Account
104
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
2. LIST OF SUB-ACCOUNTS -- (CONTINUED)
FTVIPT Templeton Foreign Securities Sub-Account
FTVIPT Templeton Global Bond Securities Sub-Account
Invesco V.I. Capital Appreciation Sub-Account
Invesco V.I. Core Equity Sub-Account
Invesco V.I. Global Real Estate Sub-Account
Invesco V.I. International Growth Sub-Account*
Invesco V.I. Van Kampen Capital Growth Sub-Account
Invesco V.I. Van Kampen Equity and Income
Sub-Account*
Invesco V.I. Van Kampen Growth and Income
Sub-Account*
Invesco V.I. Van Kampen Mid Cap Value Sub-Account
Janus Aspen Worldwide Sub-Account
LMPVET ClearBridge Variable Aggressive Growth
Sub-Account*
LMPVET ClearBridge Variable Appreciation
Sub-Account
LMPVET ClearBridge Variable Equity Income Builder
Sub-Account*
LMPVET ClearBridge Variable Fundamental All Cap
Value Sub-Account
LMPVET ClearBridge Variable Large Cap Growth
Sub-Account
LMPVET ClearBridge Variable Large Cap Value
Sub-Account
LMPVET ClearBridge Variable Small Cap Growth
Sub-Account
LMPVET Investment Counsel Variable Social
Awareness Sub-Account
LMPVET Variable Lifestyle Allocation 50%
Sub-Account
LMPVET Variable Lifestyle Allocation 70%
Sub-Account
LMPVET Variable Lifestyle Allocation 85%
Sub-Account
LMPVIT Western Asset Variable Global High Yield
Bond Sub-Account
MFS VIT Investors Trust Sub-Account
MFS VIT New Discovery Sub-Account
MFS VIT Research Sub-Account
MIST AllianceBernstein Global Dynamic Allocation
Sub-Account**
MIST American Funds Balanced Allocation Sub-Account
MIST American Funds Bond Sub-Account
MIST American Funds Growth Allocation Sub-Account
MIST American Funds Growth Sub-Account
MIST American Funds International Sub-Account
MIST American Funds Moderate Allocation
Sub-Account
MIST AQR Global Risk Balanced Sub-Account**
MIST BlackRock Global Tactical Strategies
Sub-Account**
MIST BlackRock High Yield Sub-Account*
MIST BlackRock Large Cap Core Sub-Account
MIST Clarion Global Real Estate Sub-Account
MIST Dreman Small Cap Value Sub-Account*
MIST Goldman Sachs Mid Cap Value Sub-Account
MIST Harris Oakmark International Sub-Account*
MIST Invesco Small Cap Growth Sub-Account*
MIST Janus Forty Sub-Account*
MIST Lazard Mid Cap Sub-Account
MIST Legg Mason ClearBridge Aggressive Growth
Sub-Account
MIST Loomis Sayles Global Markets Sub-Account
MIST Lord Abbett Bond Debenture Sub-Account*
MIST Lord Abbett Mid Cap Value Sub-Account
MIST Met/Eaton Vance Floating Rate Sub-Account
MIST Met/Franklin Low Duration Total Return
Sub-Account**
MIST Met/Franklin Mutual Shares Sub-Account
MIST Met/Franklin Templeton Founding Strategy
Sub-Account
MIST Met/Templeton Growth Sub-Account
MIST Met/Templeton International Bond Sub-Account
MIST MetLife Aggressive Strategy Sub-Account
MIST MetLife Balanced Plus Sub-Account**
MIST MetLife Balanced Strategy Sub-Account
MIST MetLife Defensive Strategy Sub-Account
MIST MetLife Growth Strategy Sub-Account
MIST MetLife Moderate Strategy Sub-Account
MIST MFS Emerging Markets Equity Sub-Account
MIST MFS Research International Sub-Account*
MIST Morgan Stanley Mid Cap Growth Sub-Account*
MIST Oppenheimer Capital Appreciation
Sub-Account*
MIST PIMCO Inflation Protected Bond Sub-Account
MIST PIMCO Total Return Sub-Account*
MIST Pioneer Fund Sub-Account*
MIST Pioneer Strategic Income Sub-Account*
MIST Pyramis Government Income Sub-Account**
MIST Rainier Large Cap Equity Sub-Account
MIST RCM Technology Sub-Account*
MIST SSgA Growth and Income ETF Sub-Account
MIST SSgA Growth ETF Sub-Account
105
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 T. Rowe Price Large Cap Value Sub-Account*
MIST T. Rowe Price Mid Cap Growth Sub-Account
MIST Third Avenue Small Cap Value Sub-Account*
MIST Turner Mid Cap Growth Sub-Account
MIST Van Kampen Comstock Sub-Account
MSF Artio International Stock Sub-Account*
MSF Barclays Capital Aggregate Bond Index
Sub-Account*
MSF BlackRock Bond Income Sub-Account*
MSF BlackRock Large Cap Value Sub-Account
MSF BlackRock Legacy Large Cap Growth
Sub-Account*
MSF BlackRock Money Market Sub-Account*
MSF Davis Venture Value Sub-Account*
MSF FI Value Leaders Sub-Account
MSF Jennison Growth Sub-Account*
MSF Loomis Sayles Small Cap Core Sub-Account
MSF Met/Artisan Mid Cap Value Sub-Account*
MSF Met/Dimensional International Small Company
Sub-Account
MSF MetLife Conservative Allocation Sub-Account
MSF MetLife Conservative to Moderate Allocation
Sub-Account
MSF MetLife Mid Cap Stock Index Sub-Account*
MSF MetLife Moderate Allocation Sub-Account
MSF MetLife Moderate to Aggressive Allocation
Sub-Account
MSF MetLife Stock Index Sub-Account*
MSF MFS Total Return Sub-Account*
MSF MFS Value Sub-Account*
MSF Morgan Stanley EAFE Index Sub-Account*
MSF Neuberger Berman Genesis Sub-Account*
MSF Neuberger Berman Mid Cap Value Sub-Account
MSF Oppenheimer Global Equity Sub-Account
MSF Russell 2000 Index Sub-Account*
MSF T. Rowe Price Large Cap Growth Sub-Account
MSF T. Rowe Price Small Cap Growth Sub-Account*
MSF Van Eck Global Natural Resources Sub-Account
MSF Western Asset Management U.S. Government
Sub-Account*
Neuberger Berman Genesis Sub-Account
Oppenheimer VA Core Bond Sub-Account
Oppenheimer VA Global Strategic Income Sub-Account
Oppenheimer VA Main Street Small- & Mid-Cap
Sub-Account*
Oppenheimer VA Main Street Sub-Account
Oppenheimer VA Money Sub-Account
Pioneer VCT Cullen Value Sub-Account
Pioneer VCT Emerging Markets Sub-Account
Pioneer VCT Equity Income Sub-Account
Pioneer VCT Ibbotson Growth Allocation Sub-Account
Pioneer VCT Ibbotson Moderate Allocation Sub-Account
Pioneer VCT Mid Cap Value Sub-Account
Pioneer VCT Real Estate Shares Sub-Account
T. Rowe Price Growth Stock Sub-Account
T. Rowe Price International Stock Sub-Account
T. Rowe Price Prime Reserve Sub-Account
UIF U.S. Real Estate Sub-Account
* This Sub-Account invests in two or more share classes within the underlying
portfolio, series, or fund of the Trusts.
** This Sub-Account began operations during the year ended December 31, 2011.
3. PORTFOLIO CHANGES
The following Sub-Accounts ceased operations during the year ended December 31,
2011:
FTVIPT Templeton Growth Securities Sub-Account
Invesco V.I. Basic Balanced Sub-Account
LMPVET ClearBridge Variable Capital Sub-Account
LMPVET ClearBridge Variable Dividend Strategy
Sub-Account
LMPVIT Western Asset Variable Adjustable Rate
Income Sub-Account
MIST Legg Mason Value Equity Sub-Account
MSF MetLife Aggressive Allocation Sub-Account
Pioneer VCT Bond Sub-Account
Pioneer VCT Fund Sub-Account
106
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
3. PORTFOLIO CHANGES -- (CONTINUED)
The operations of the Sub-Accounts were affected by the following changes that
occurred during the year ended December 31, 2011:
[Enlarge/Download Table]
NAME CHANGES:
FORMER NAME NEW NAME
----------- --------
Federated Capital Income Fund II Federated Managed Volatility Fund II
(MIST) Lord Abbett Growth and Income Portfolio (MIST) T. Rowe Price Large Cap Value Portfolio
Oppenheimer Main Street Small Cap Fund/VA Oppenheimer Main Street Small- & Mid-Cap Fund/VA
MERGERS:
FORMER PORTFOLIO NEW PORTFOLIO
---------------- -------------
Invesco V.I. Basic Balanced Fund Invesco Van Kampen V.I. Equity and Income Fund
Legg Mason ClearBridge Variable Dividend Strategy Legg Mason ClearBridge Variable Equity Income
Portfolio Builder Portfolio
(MIST) Legg Mason Value Equity Portfolio (MIST) Legg Mason ClearBridge Aggressive Growth Portfolio
(MSF) MetLife Aggressive Allocation Portfolio (MIST) MetLife Aggressive Strategy Portfolio
SUBSTITUTIONS:
FORMER PORTFOLIO NEW PORTFOLIO
---------------- -------------
(FTVIPT) Templeton Growth Securities Fund (MIST) Met/Templeton Growth Portfolio
Pioneer Bond VCT Portfolio (MIST) PIMCO Total Return Portfolio
Pioneer Fund VCT Portfolio (MIST) Pioneer Fund Portfolio
Legg Mason ClearBridge Variable Capital Portfolio (MSF) Davis Venture Value Portfolio
LIQUIDATION:
Legg Mason Western Asset Variable Adjustable Rate Income Portfolio
4. SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America ("GAAP")
applicable for variable annuity separate accounts registered as unit investment
trusts.
SECURITY TRANSACTIONS
Security transactions are recorded on a trade date basis. Realized gains and
losses on the sales of investments are computed on the basis of the average
cost of the investment sold. Income from dividends and realized gain
distributions are recorded on the ex-distribution date.
SECURITY VALUATION
The Sub-Accounts' investment in shares of the portfolio, series, or fund of the
Trusts is valued at fair value based on the closing net asset value ("NAV") or
price per share as determined by the Trusts as of the end of the year. All
changes in fair value are recorded as changes in unrealized gains (losses) on
investments in the statements of operations of the applicable Sub-Accounts.
107
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
4. SIGNIFICANT ACCOUNTING POLICIES -- (CONTINUED)
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:
[Enlarge/Download Table]
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 4.0 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, and are reported as contract transactions on the
statements of changes in net assets of the applicable Sub-Accounts.
NET TRANSFERS
Funds transferred by the contract owner into or out of the Sub-Accounts within
the Separate Account or into or out of the fixed account (an investment option
in the Company's general account) are recorded on a net basis as net transfers
in the statements of changes in net assets of the applicable Sub-Accounts.
108
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
4. SIGNIFICANT ACCOUNTING POLICIES -- (CONCLUDED)
USE OF ESTIMATES
The preparation of financial statements in accordance with GAAP requires
management to make estimates and assumptions that affect amounts reported
herein. Actual results could differ from these estimates.
ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
Effective January 1, 2010, the Separate Account adopted new guidance that
requires new disclosures about significant transfers in and/or out of Levels 1
and 2 of the fair value hierarchy and activity in Level 3. In addition, this
guidance provides clarification of existing disclosure requirements about the
level of disaggregation and inputs and valuation techniques. The adoption of
this guidance did not have an impact on the Separate Account's financial
statements.
FUTURE ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
In May 2011, the Financial Accounting Standards Board ("FASB") issued new
guidance regarding fair value measurements (Accounting Standards Update ("ASU")
2011-04, FAIR VALUE MEASUREMENT (TOPIC 820): AMENDMENTS TO ACHIEVE COMMON FAIR
VALUE MEASUREMENT AND DISCLOSURE REQUIREMENTS IN U.S. GAAP AND IFRSS),
effective for the first interim or annual period beginning after December 15,
2011. The guidance should be applied prospectively. The amendments in this ASU
are intended to establish common requirements for measuring fair value and for
disclosing information about fair value measurements in accordance with GAAP
and International Financial Reporting Standards ("IFRS"). Some of the
amendments clarify the FASB's intent on the application of existing 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 Separate Account does not expect the adoption of this
new guidance to have a material impact on its financial statements.
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.
109
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
5. EXPENSES AND RELATED PARTY TRANSACTIONS -- (CONTINUED)
The table below represents the range of effective annual rates for each
respective charge for the year ended December 31, 2011:
[Download Table]
Mortality and Expense Risk 0.75% - 2.05%
Administrative 0.10% - 0.25%
Optional Death Benefit Rider 0.15% - 0.35%
Distribution Expense 0.10%
Guaranteed Minimum Accumulation Benefit 1.50%
Earnings Preservation Benefit 0.25%
The above referenced charges may not necessarily correspond to the costs
associated with providing the services or benefits indicated by the
designation of the charge or associated with a particular contract. The
range of effective rates disclosed above excludes any waivers granted to
certain Sub-Accounts.
The following optional rider charges paid to the Company are charged at
each contract anniversary date through the redemption of units and are
recorded as contract charges in the accompanying statements of changes in
net assets of the applicable Sub-Accounts:
GUARANTEED MINIMUM ACCUMULATION BENEFIT -- For an additional charge, the
Company will guarantee that the contract value will not be less than a
guaranteed minimum amount at the end of a specified number of years.
LIFETIME WITHDRAWAL GUARANTEE -- For an additional charge, the Company will
guarantee minimum withdrawals for life regardless of market conditions.
GUARANTEED WITHDRAWAL BENEFIT -- For an additional charge, the Company will
guarantee minimum withdrawals regardless of market conditions.
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, 2011:
[Download Table]
Guaranteed Minimum Accumulation Benefit 0.75%
Lifetime Withdrawal Guarantee 0.50% - 1.80%
Guaranteed Withdrawal Benefit 0.25% - 1.00%
Guaranteed Minimum Income Benefit 0.50% - 1.50%
Enhanced Death Benefit 0.60% - 1.50%
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.
110
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)
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 $40 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 $10 charge is assessed for annuitizations. For
those contract owners who choose optional living benefit riders or certain
optional death benefit riders, these charges range from 0.25% to 1.80% of the
benefit base and are charged at each contract anniversary date. These charges
are paid to the Company and recorded as contract charges in the accompanying
statements of changes in net assets of the applicable Sub-Accounts.
Certain portfolios of the MIST and MSF Trusts are managed by MetLife Advisers,
LLC, which acts in the capacity of investment advisor and is an affiliate of
the Company.
111
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
6. STATEMENTS OF INVESTMENTS
[Enlarge/Download Table]
FOR THE YEAR ENDED
AS OF DECEMBER 31, 2011 DECEMBER 31, 2011
------------------------- -------------------------
PROCEEDS
COST OF FROM
SHARES COST ($) PURCHASES ($) SALES ($)
----------- ------------- ------------- -----------
Alger Small Cap Growth Sub-Account 1,660,973 48,055,798 645,639 5,767,727
American Funds Bond Sub-Account 10,735,722 113,025,293 31,319,190 3,412,875
American Funds Global Growth Sub-Account 10,391,926 217,733,911 26,377,312 6,798,013
American Funds Global Small Capitalization Sub-Account 4,507,156 86,487,869 19,961,517 5,309,750
American Funds Growth Sub-Account 11,173,330 575,059,235 57,942,237 19,165,692
American Funds Growth-Income Sub-Account 8,236,740 290,517,120 25,881,774 10,604,458
DWS I International Sub-Account 2,323,337 24,255,812 774,900 2,523,433
Federated High Income Bond Sub-Account 4,524 32,017 2,613 565
Federated Kaufman Sub-Account 4,553 59,580 802 11,295
Federated Managed Volatility Sub-Account 995 8,394 543 5,399
Fidelity VIP Asset Manager Sub-Account 6,309,518 96,235,266 2,700,938 12,989,013
Fidelity VIP Contrafund Sub-Account 16,902,018 386,924,224 53,287,090 30,092,552
Fidelity VIP Equity-Income Sub-Account 293,736 6,719,413 200,940 979,743
Fidelity VIP FundsManager 60% Sub-Account 272,227,024 2,604,934,087 1,513,287,490 642,589
Fidelity VIP Growth Sub-Account 3,577,520 134,011,952 1,493,069 16,741,487
Fidelity VIP Index 500 Sub-Account 464,408 58,870,346 2,794,388 9,837,183
Fidelity VIP Mid Cap Sub-Account 8,317,058 230,027,363 79,447,840 1,432,280
Fidelity VIP Money Market Sub-Account 73,068,657 73,068,657 289,900,388 284,175,579
Fidelity VIP Overseas Sub-Account 342,200 6,268,678 251,368 777,216
FTVIPT Franklin Income Securities Sub-Account 14,428,157 217,123,868 48,507,661 11,104,683
FTVIPT Franklin Small Cap Value Securities Sub-Account 3,265,018 46,392,478 22,934,754 632,067
FTVIPT Mutual Shares Securities Sub-Account 7,706,950 132,294,374 17,142,439 4,861,170
FTVIPT Templeton Foreign Securities Sub-Account 5,494,367 83,043,103 7,194,440 8,650,565
FTVIPT Templeton Global Bond Securities Sub-Account 7,712,731 141,377,934 67,904,445 6,734,564
Invesco V.I. Capital Appreciation Sub-Account 4,719 119,650 226 31,997
Invesco V.I. Core Equity Sub-Account 10,358 260,550 3,098 120,984
Invesco V.I. Global Real Estate Sub-Account 1,134,567 14,903,967 6,859,714 951,980
Invesco V.I. International Growth Sub-Account 5,908,640 152,997,769 54,749,961 252,387
Invesco V.I. Van Kampen Capital Growth Sub-Account 2,822 87,965 2 35,469
Invesco V.I. Van Kampen Equity and Income Sub-Account 30,400,377 408,586,740 89,189,431 7,214,594
Invesco V.I. Van Kampen Growth and Income Sub-Account 11,631,243 200,314,881 52,664,129 544,345
Invesco V.I. Van Kampen Mid Cap Value Sub-Account 3,693,177 44,093,948 19,333,877 497,197
Janus Aspen Worldwide Sub-Account 184 4,335 33 1,004
LMPVET ClearBridge Variable Aggressive Growth
Sub-Account 9,631,240 144,632,561 12,254,101 11,319,358
LMPVET ClearBridge Variable Appreciation Sub-Account 9,500,229 221,490,106 51,831,585 2,011,448
LMPVET ClearBridge Variable Equity Income Builder
Sub-Account 9,866,387 107,437,886 28,429,566 9,486,418
LMPVET ClearBridge Variable Fundamental All Cap Value
Sub-Account 5,262,134 107,885,873 8,873,283 5,060,899
LMPVET ClearBridge Variable Large Cap Growth
Sub-Account 292,482 4,482,993 437,850 1,781,294
LMPVET ClearBridge Variable Large Cap Value
Sub-Account 283,341 4,033,024 1,981,978 967,995
LMPVET ClearBridge Variable Small Cap Growth
Sub-Account 2,762,160 36,945,323 11,380,540 2,186,499
LMPVET Investment Counsel Variable Social Awareness
Sub-Account 20,797 507,442 57,132 61,529
LMPVET Variable Lifestyle Allocation 50% Sub-Account 2,122,985 24,778,514 13,799,800 2,092,268
LMPVET Variable Lifestyle Allocation 70% Sub-Account 294,840 3,196,723 339,833 583,310
LMPVET Variable Lifestyle Allocation 85% Sub-Account 5,654,893 64,102,404 12,786,268 6,608,611
LMPVIT Western Asset Variable Global High Yield Bond
Sub-Account 9,446,883 78,121,690 16,840,878 3,598,591
MFS VIT Investors Trust Sub-Account 1,752 31,784 336 8,832
MFS VIT New Discovery Sub-Account 2,896 43,515 5,639 755
(a) For the period May 2, 2011 to December 31, 2011.
112
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
6. STATEMENTS OF INVESTMENTS -- (CONTINUED)
[Enlarge/Download Table]
FOR THE YEAR ENDED
AS OF DECEMBER 31, 2011 DECEMBER 31, 2011
------------------------- -------------------------
PROCEEDS
COST OF FROM
SHARES COST ($) PURCHASES ($) SALES ($)
----------- ------------- ------------- -----------
MFS VIT Research Sub-Account 2,404 39,161 448 68,071
MIST AllianceBernstein Global Dynamic Allocation
Sub-Account (a) 168,487,066 1,630,178,775 1,630,178,775 --
MIST American Funds Balanced Allocation
Sub-Account 308,442,034 2,672,981,294 590,268,016 40,922,380
MIST American Funds Bond Sub-Account 33,720,682 326,767,035 93,090,255 30,383,155
MIST American Funds Growth Allocation Sub-Account 160,182,221 1,239,711,641 118,699,853 85,841,270
MIST American Funds Growth Sub-Account 63,596,882 493,162,634 125,872,953 20,446,891
MIST American Funds International Sub-Account 40,764,442 311,502,773 79,137,470 31,825,781
MIST American Funds Moderate Allocation Sub-Account 171,607,028 1,546,705,133 297,602,283 31,822,390
MIST AQR Global Risk Balanced Sub-Account (a) 180,258,700 1,877,398,809 1,877,398,809 --
MIST BlackRock Global Tactical Strategies
Sub-Account (a) 298,604,236 2,871,827,639 2,871,827,639 --
MIST BlackRock High Yield Sub-Account 26,714,350 215,195,185 140,107,247 91,260,225
MIST BlackRock Large Cap Core Sub-Account 1,495,918 12,921,774 5,265,173 1,797,093
MIST Clarion Global Real Estate Sub-Account 15,888,700 179,919,214 30,014,229 7,252,055
MIST Dreman Small Cap Value Sub-Account 1,615,433 20,302,075 2,823,317 3,363,936
MIST Goldman Sachs Mid Cap Value Sub-Account 10,946,091 139,189,642 38,875,628 9,700,444
MIST Harris Oakmark International Sub-Account 39,548,588 527,072,920 114,086,644 34,651,617
MIST Invesco Small Cap Growth Sub-Account 15,464,939 192,869,573 42,166,808 12,642,688
MIST Janus Forty Sub-Account 1,112,678 72,024,297 32,051,625 9,774,293
MIST Lazard Mid Cap Sub-Account 12,307,707 145,680,082 15,098,212 10,589,052
MIST Legg Mason ClearBridge Aggressive Growth
Sub-Account 34,794,120 266,262,079 186,719,504 16,328,937
MIST Loomis Sayles Global Markets Sub-Account 14,564,719 161,903,308 51,977,029 16,683,409
MIST Lord Abbett Bond Debenture Sub-Account 20,128,718 240,705,893 31,893,290 40,412,257
MIST Lord Abbett Mid Cap Value Sub-Account 8,366,587 115,021,422 32,161,724 7,630,960
MIST Met/Eaton Vance Floating Rate Sub-Account 4,246,536 43,630,503 38,791,456 10,881,414
MIST Met/Franklin Low Duration Total Return
Sub-Account (a) 2,805,470 27,845,125 30,588,202 2,718,743
MIST Met/Franklin Mutual Shares Sub-Account 18,873,669 150,672,642 52,667,029 7,216,358
MIST Met/Franklin Templeton Founding Strategy
Sub-Account 62,249,141 528,338,385 84,358,870 38,571,857
MIST Met/Templeton Growth Sub-Account 5,734,449 57,271,597 53,908,309 3,267,628
MIST Met/Templeton International Bond Sub-Account 4,450,638 52,666,454 21,456,915 2,822,441
MIST MetLife Aggressive Strategy Sub-Account 58,363,949 594,695,835 81,811,256 40,426,215
MIST MetLife Balanced Plus Sub-Account (a) 254,944,471 2,425,793,569 2,425,793,569 --
MIST MetLife Balanced Strategy Sub-Account 673,100,410 6,960,699,308 852,140,313 272,286,729
MIST MetLife Defensive Strategy Sub-Account 207,131,944 2,108,773,015 436,797,109 201,971,497
MIST MetLife Growth Strategy Sub-Account 494,625,595 5,536,836,092 174,210,948 474,216,752
MIST MetLife Moderate Strategy Sub-Account 317,811,829 3,223,185,587 427,050,522 123,869,428
MIST MFS Emerging Markets Equity Sub-Account 39,878,668 381,448,729 108,099,472 19,840,389
MIST MFS Research International Sub-Account 31,925,355 348,218,323 25,690,769 19,059,124
MIST Morgan Stanley Mid Cap Growth Sub-Account 10,458,999 102,613,965 35,937,055 3,755,004
MIST Oppenheimer Capital Appreciation Sub-Account 27,958,540 218,337,537 414,209 26,661,781
MIST PIMCO Inflation Protected Bond Sub-Account 79,104,386 869,924,815 252,638,435 65,750,450
MIST PIMCO Total Return Sub-Account 178,920,499 2,111,157,160 566,952,142 133,977,824
MIST Pioneer Fund Sub-Account 12,635,098 158,674,926 69,574,316 5,107,919
MIST Pioneer Strategic Income Sub-Account 54,858,209 564,296,761 199,343,265 9,301,269
MIST Pyramis Government Income Sub-Account (a) 45,710,478 484,101,102 484,574,878 471,675
MIST Rainier Large Cap Equity Sub-Account 7,483,530 57,728,697 22,012,491 7,576,295
MIST RCM Technology Sub-Account 24,199,572 101,439,670 28,180,537 22,131,292
MIST SSgA Growth and Income ETF Sub-Account 124,730,142 1,321,849,538 500,942,945 65,905,338
MIST SSgA Growth ETF Sub-Account 38,344,225 372,282,724 123,731,144 23,230,556
MIST T. Rowe Price Large Cap Value Sub-Account 24,250,792 591,926,921 21,581,508 47,890,440
(a) For the period May 2, 2011 to December 31, 2011.
113
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
6. STATEMENTS OF INVESTMENTS -- (CONCLUDED)
[Enlarge/Download Table]
FOR THE YEAR ENDED
AS OF DECEMBER 31, 2011 DECEMBER 31, 2011
----------------------- -------------------------
PROCEEDS
COST OF FROM
SHARES COST ($) PURCHASES ($) SALES ($)
---------- ------------ ------------- -----------
MIST T. Rowe Price Mid Cap Growth Sub-Account 47,475,286 373,241,836 85,228,670 38,887,091
MIST Third Avenue Small Cap Value Sub-Account 21,503,006 295,610,100 22,659,409 26,866,728
MIST Turner Mid Cap Growth Sub-Account 6,670,329 78,730,642 17,935,803 10,988,325
MIST Van Kampen Comstock Sub-Account 28,713,737 237,739,246 50,642,915 7,173,062
MSF Artio International Stock Sub-Account 361,495 4,510,169 321,666 731,613
MSF Barclays Capital Aggregate Bond Index Sub-Account 11,453,928 125,061,239 51,295,804 12,337,120
MSF BlackRock Bond Income Sub-Account 449,869 47,377,641 9,043,053 8,053,796
MSF BlackRock Large Cap Value Sub-Account 279,023 3,171,905 855,325 880,528
MSF BlackRock Legacy Large Cap Growth Sub-Account 455,071 10,332,673 6,586,165 3,477,673
MSF BlackRock Money Market Sub-Account 6,336,253 633,625,227 359,781,243 280,041,982
MSF Davis Venture Value Sub-Account 20,296,553 542,973,281 60,549,031 34,915,482
MSF FI Value Leaders Sub-Account 35,027 5,432,505 1,002,686 1,303,538
MSF Jennison Growth Sub-Account 20,629,370 219,772,455 34,886,227 30,659,640
MSF Loomis Sayles Small Cap Core Sub-Account 47,124 9,221,706 4,642,550 1,469,051
MSF Met/Artisan Mid Cap Value Sub-Account 1,233,487 259,860,204 11,296,622 21,637,379
MSF Met/Dimensional International Small Company
Sub-Account 3,577,672 51,842,980 26,607,056 4,015,979
MSF MetLife Conservative Allocation Sub-Account 901,594 9,481,937 1,587,453 1,286,272
MSF MetLife Conservative to Moderate Allocation
Sub-Account 639,569 6,587,418 681,028 2,725,908
MSF MetLife Mid Cap Stock Index Sub-Account 6,060,310 76,476,820 36,793,754 12,176,015
MSF MetLife Moderate Allocation Sub-Account 4,104,056 44,968,929 2,895,426 6,007,908
MSF MetLife Moderate to Aggressive Allocation
Sub-Account 4,702,896 52,817,485 2,528,242 8,824,353
MSF MetLife Stock Index Sub-Account 12,290,275 328,161,001 67,046,465 51,331,756
MSF MFS Total Return Sub-Account 282,312 38,811,908 2,969,986 7,133,148
MSF MFS Value Sub-Account 3,577,836 43,804,401 4,819,044 6,243,465
MSF Morgan Stanley EAFE Index Sub-Account 6,878,906 78,470,106 26,955,554 5,241,324
MSF Neuberger Berman Genesis Sub-Account 936,841 13,329,768 2,748,782 1,679,194
MSF Neuberger Berman Mid Cap Value Sub-Account 210,872 3,896,452 2,886,458 659,113
MSF Oppenheimer Global Equity Sub-Account 674,140 10,047,251 672,303 1,588,531
MSF Russell 2000 Index Sub-Account 5,149,054 61,142,811 31,541,513 10,655,752
MSF T. Rowe Price Large Cap Growth Sub-Account 99,165 1,343,592 539,534 418,803
MSF T. Rowe Price Small Cap Growth Sub-Account 458,673 5,517,403 1,192,576 2,155,770
MSF Van Eck Global Natural Resources Sub-Account 7,894,060 123,617,436 68,031,411 4,501,856
MSF Western Asset Management U.S. Government
Sub-Account 23,494,248 281,442,393 95,471,252 26,372,570
Neuberger Berman Genesis Sub-Account 155 5,329 239 1,646
Oppenheimer VA Core Bond Sub-Account 1,289 13,659 588 543
Oppenheimer VA Global Strategic Income Sub-Account 757 3,689 184 62
Oppenheimer VA Main Street Small- & Mid-Cap
Sub-Account 4,788,103 68,812,284 14,527,338 1,089,166
Oppenheimer VA Main Street Sub-Account 5,181 105,549 1,404 12,054
Oppenheimer VA Money Sub-Account 114,709 114,709 11 1,616
Pioneer VCT Cullen Value Sub-Account 189,066 1,764,101 279,455 350,911
Pioneer VCT Emerging Markets Sub-Account 29,768 715,294 349,439 643,931
Pioneer VCT Equity Income Sub-Account 18,212 293,041 92,010 113,687
Pioneer VCT Ibbotson Growth Allocation Sub-Account 1,743,994 13,096,071 1,122,003 1,819,970
Pioneer VCT Ibbotson Moderate Allocation Sub-Account 2,550,980 21,045,118 1,755,671 2,095,530
Pioneer VCT Mid Cap Value Sub-Account 3,120,326 53,462,152 8,567,266 2,742,465
Pioneer VCT Real Estate Shares Sub-Account 14,363 183,230 108,096 111,886
T. Rowe Price Growth Stock Sub-Account 189,002 5,256,777 186,743 1,295,780
T. Rowe Price International Stock Sub-Account 57,407 789,713 72,526 193,224
T. Rowe Price Prime Reserve Sub-Account 973,736 973,736 359,466 650,310
UIF U.S. Real Estate Sub-Account 5,642,220 90,656,483 8,965,726 4,859,930
(a) For the period May 2, 2011 to December 31, 2011.
114
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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, 2011 AND 2010:
[Enlarge/Download Table]
ALGER SMALL CAP GROWTH AMERICAN FUNDS BOND AMERICAN FUNDS GLOBAL GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------- -------------------------- -------------------------------
2011 2010 2011 2010 2011 2010
------------ ------------ ------------- ------------ ------------- -----------------
Units beginning of year 5,634,931 6,156,883 5,183,483 3,608,245 7,470,107 6,579,263
Units issued and transferred
from other funding options 316,024 440,832 2,713,714 2,268,949 2,118,337 1,820,255
Units redeemed and transferred
to other funding options (738,294) (962,784) (1,194,003) (693,711) (1,383,115) (929,411)
------------ ------------ ------------- ------------ ------------- -----------------
Units end of year 5,212,661 5,634,931 6,703,194 5,183,483 8,205,329 7,470,107
============ ============ ============= ============ ============= =================
[Enlarge/Download Table]
DWS I INTERNATIONAL FEDERATED HIGH INCOME BOND FEDERATED KAUFMAN
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------- -------------- -------------- --------------------
2011 2010 2011 2010 2011 2010 (a)
------------ ------------ -------------- -------------- --------- ----------
Units beginning of year 2,471,385 2,700,348 3,566 3,582 14,184 --
Units issued and transferred
from other funding options 204,514 230,638 -- -- -- 15,991
Units redeemed and transferred
to other funding options (430,294) (459,601) (17) (16) (2,046) (1,807)
------------ ------------ -------------- -------------- --------- ----------
Units end of year 2,245,605 2,471,385 3,549 3,566 12,138 14,184
============ ============ ============== ============== ========= ==========
[Enlarge/Download Table]
FIDELITY VIP
FIDELITY VIP EQUITY-INCOME FUNDSMANAGER 60% FIDELITY VIP GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------------- ----------------------------- ---------------------------
2011 2010 2011 2010 2011 2010
-------------- -------------- -------------- -------------- ------------- -------------
Units beginning of year 530,175 619,856 118,824,451 4,074,373 10,951,340 11,893,241
Units issued and transferred
from other funding options 5,843 3,984 160,286,275 116,408,584 451,048 612,157
Units redeemed and transferred
to other funding options (75,729) (93,665) (6,646,535) (1,658,506) (1,484,001) (1,554,058)
-------------- -------------- -------------- -------------- ------------- -------------
Units end of year 460,289 530,175 272,464,191 118,824,451 9,918,387 10,951,340
============== ============== ============== ============== ============= =============
[Enlarge/Download Table]
FTVIPT FRANKLIN FTVIPT FRANKLIN
FIDELITY VIP OVERSEAS INCOME SECURITIES SMALL CAP VALUE SECURITIES
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------ ------------------------- -----------------------------
2011 2010 2011 2010 2011 2010
---------- ------------- ------------ ------------ ------------ ----------------
Units beginning of year 593,728 663,667 3,722,732 3,157,996 3,178,430 1,787,114
Units issued and transferred
from other funding options 23,085 39,152 1,395,405 1,073,134 3,372,394 1,819,181
Units redeemed and transferred
to other funding options (76,741) (109,091) (827,665) (508,398) (839,977) (427,865)
---------- ------------- ------------ ------------ ------------ ----------------
Units end of year 540,072 593,728 4,290,472 3,722,732 5,710,847 3,178,430
========== ============= ============ ============ ============ ================
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
116
[Enlarge/Download Table]
AMERICAN FUNDS
GLOBAL SMALL CAPITALIZATION AMERICAN FUNDS GROWTH AMERICAN FUNDS GROWTH-INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------ ------------------------- -------------------------------
2011 2010 2011 2010 2011 2010
------------ ----------------- ------------ ------------ ------------ ------------------
2,578,008 2,262,060 3,717,676 3,225,880 2,639,070 2,398,146
1,050,382 894,535 960,174 942,727 570,737 615,981
(547,716) (578,587) (701,638) (450,931) (435,882) (375,057)
------------ ----------------- ------------ ------------ ------------ ------------------
3,080,674 2,578,008 3,976,212 3,717,676 2,773,925 2,639,070
============ ================= ============ ============ ============ ==================
[Enlarge/Download Table]
FEDERATED MANAGED VOLATILITY FIDELITY VIP ASSET MANAGER FIDELITY VIP CONTRAFUND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------- ----------------------------- ---------------------------
2011 2010 (a) 2011 2010 2011 2010
--------- --------------------- ------------- --------------- ------------- -------------
2,848 -- 8,263,984 9,345,424 15,707,574 15,955,996
-- 4,805 312,726 344,604 2,315,662 2,046,178
(1,024) (1,957) (1,222,970) (1,426,044) (2,434,383) (2,294,600)
--------- --------------------- ------------- --------------- ------------- -------------
1,824 2,848 7,353,740 8,263,984 15,588,853 15,707,574
========= ===================== ============= =============== ============= =============
[Download Table]
FIDELITY VIP INDEX 500 FIDELITY VIP MID CAP FIDELITY VIP MONEY MARKET
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------- ---------------------- ----------------------------
2011 2010 2011 2010 2011 2010
------------ ------------ ------------ --------- ------------- --------------
4,565,389 5,300,313 4,364,581 3,075,278 7,492,405 6,126,543
13,022 20,873 2,636,656 1,773,206 142,314,946 96,878,440
(602,299) (755,797) (711,772) (483,903) (141,806,301) (95,512,578)
------------ ------------ ------------ ----------------------- --------------
3,976,112 4,565,389 6,289,465 4,364,581 8,001,050 7,492,405
============ ============ ============ ========= ============= ==============
[Download Table]
FTVIPT MUTUAL SHARES FTVIPT TEMPLETON FTVIPT TEMPLETON
SECURITIES FOREIGN GLOBAL BOND SECURITIES
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------- ------------------------- --------------------------
2011 2010 2011 2010 2011 2010
------------- ------------ ------------ ------------ ------------- ------------
5,431,435 4,784,657 2,782,005 2,655,441 4,997,591 2,853,081
1,448,728 1,283,480 517,182 583,518 4,530,568 2,640,993
(927,835) (636,702) (578,766) (456,954) (1,423,898) (496,483)
------------- ------------ ------------ ------------ ------------- ------------
5,952,328 5,431,435 2,720,421 2,782,005 8,104,261 4,997,591
============= ============ ============ ============ ============= ============
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, 2011 AND 2010:
[Enlarge/Download Table]
INVESCO V.I. CAPITAL APPRECIATION INVESCO V.I. CORE EQUITY INVESCO V.I. GLOBAL REAL ESTATE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------------ --------------------------- ----------------------------------
2011 2010 2011 2010 2011 2010
-------------- --------------------- -------------- ------------ ------------ ---------------------
Units beginning of year 33,129 41,631 88,640 99,143 1,148,943 704,385
Units issued and transferred
from other funding options 9 18 -- 21 1,049,840 606,861
Units redeemed and transferred
to other funding options (7,290) (8,520) (25,449) (10,524) (335,687) (162,303)
-------------- --------------------- -------------- ------------ ------------ ---------------------
Units end of year 25,848 33,129 63,191 88,640 1,863,096 1,148,943
============== ===================== ============== ============ ============ =====================
[Enlarge/Download Table]
INVESCO V.I. VAN KAMPEN INVESCO V.I. VAN KAMPEN
GROWTH AND INCOME MID CAP VALUE JANUS ASPEN WORLDWIDE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------- -------------------------- -----------------------------
2011 2010 2011 2010 2011 2010
------------- ------------ ------------ ------------- -------------- ----------------
Units beginning of year 9,061,763 6,896,039 2,673,648 1,763,519 901 999
Units issued and transferred
from other funding options 4,107,609 2,959,924 2,372,998 1,259,195 -- --
Units redeemed and transferred
to other funding options (1,391,990) (794,200) (556,176) (349,066) (132) (98)
------------- ------------ ------------ ------------- -------------- ----------------
Units end of year 11,777,382 9,061,763 4,490,470 2,673,648 769 901
============= ============ ============ ============= ============== ================
[Enlarge/Download Table]
LMPVET CLEARBRIDGE VARIABLE LMPVET CLEARBRIDGE VARIABLE LMPVET CLEARBRIDGE VARIABLE
FUNDAMENTAL ALL CAP VALUE LARGE CAP GROWTH LARGE CAP VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------ ------------------------------ ------------------------------
2011 2010 2011 2010 2011 2010
------------ ----------------- ----------- ------------------ -------------- ---------------
Units beginning of year 3,100,875 2,989,079 459,350 557,417 194,899 196,692
Units issued and transferred
from other funding options 664,276 524,162 39,883 46,697 149,986 29,654
Units redeemed and transferred
to other funding options (552,005) (412,366) (136,193) (144,764) (79,550) (31,447)
------------ ----------------- ----------- ------------------ -------------- ---------------
Units end of year 3,213,146 3,100,875 363,040 459,350 265,335 194,899
============ ================= =========== ================== ============== ===============
[Enlarge/Download Table]
LMPVET VARIABLE LMPVET VARIABLE LIFESTYLE LMPVIT WESTERN ASSET VARIABLE
LIFESTYLE ALLOCATION 70% ALLOCATION 85% GLOBAL HIGH YIELD BOND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------- ---------------------------- --------------------------------
2011 2010 2011 2010 2011 2010
-------------- ------------ ------------ --------------- ------------ -------------------
Units beginning of year 236,121 271,548 4,289,092 3,756,486 3,170,899 2,845,850
Units issued and transferred
from other funding options 23,150 11,385 1,172,315 981,734 1,165,713 1,008,282
Units redeemed and transferred
to other funding options (39,688) (46,812) (728,953) (449,128) (741,795) (683,233)
-------------- ------------ ------------ --------------- ------------ -------------------
Units end of year 219,583 236,121 4,732,454 4,289,092 3,594,817 3,170,899
============== ============ ============ =============== ============ ===================
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
118
[Enlarge/Download Table]
INVESCO V.I. VAN KAMPEN INVESCO V.I. VAN KAMPEN
INVESCO V.I. INTERNATIONAL GROWTH CAPITAL GROWTH EQUITY AND INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------------ -------------------------- ---------------------------
2011 2010 2011 2010 2011 2010
------------ ----------------------- --------- ---------------- ------------- -------------
4,327,573 2,818,925 25,363 26,829 22,199,448 17,747,381
2,701,345 1,870,709 -- 32,291 9,005,018 6,790,513
(547,850) (362,061) (6,489) (33,757) (3,834,330) (2,338,446)
------------ ----------------------- --------- ---------------- ------------- -------------
6,481,068 4,327,573 18,874 25,363 27,370,136 22,199,448
============ ======================= ========= ================ ============= =============
[Enlarge/Download Table]
LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE LMPVET CLEARBRIDGE
VARIABLE AGGRESSIVE GROWTH VARIABLE APPRECIATION VARIABLE EQUITY INCOME BUILDER
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------------- ------------------------- ---------------------------------
2011 2010 2011 2010 2011 2010
------------- --------------- ------------ ------------ ------------- -------------------
11,742,972 11,503,827 5,515,253 4,134,838 6,778,039 6,144,958
2,843,299 2,318,559 2,453,739 1,932,621 2,730,896 1,589,873
(2,730,657) (2,079,414) (947,455) (552,206) (1,495,480) (956,792)
------------- --------------- ------------ ------------ ------------- -------------------
11,855,614 11,742,972 7,021,537 5,515,253 8,013,455 6,778,039
============= =============== ============ ============ ============= ===================
[Enlarge/Download Table]
LMPVET CLEARBRIDGE VARIABLE LMPVET INVESTMENT COUNSEL LMPVET VARIABLE
SMALL CAP GROWTH VARIABLE SOCIAL AWARENESS LIFESTYLE ALLOCATION 50%
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------ ---------------------------- ---------------------------
2011 2010 2011 2010 2011 2010
------------ ----------------- -------------- ------------- ------------ --------------
2,149,625 1,757,714 17,424 19,412 769,522 487,451
1,125,372 888,650 1,964 3,746 885,922 386,123
(588,042) (496,739) (2,011) (5,734) (240,462) (104,052)
------------ ----------------- -------------- ------------- ------------ --------------
2,686,955 2,149,625 17,377 17,424 1,414,982 769,522
============ ================= ============== ============= ============ ==============
[Download Table]
MFS VIT INVESTORS TRUST MFS VIT NEW DISCOVERY MFS VIT RESEARCH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------- ------------------------ -------------- ---------
2011 2010 2011 2010 2011 2010
-------------- ----------- -------------- --------- -------------- ---------
8,683 11,563 4,951 6,461 21,202 23,944
-- -- -- -- -- --
(1,633) (2,880) (12) (1,510) (12,527) (2,742)
-------------- ----------- -------------- --------- -------------- ---------
7,050 8,683 4,939 4,951 8,675 21,202
============== =========== ============== ========= ============== =========
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, 2011 AND 2010:
[Enlarge/Download Table]
MIST
ALLIANCEBERNSTEIN
GLOBAL DYNAMIC MIST AMERICAN FUNDS
ALLOCATION BALANCED ALLOCATION MIST AMERICAN FUNDS BOND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------- ----------------------------- ---------------------------
2011 (b) 2011 2010 2011 2010
-------------------- -------------- -------------- ------------- -------------
Units beginning of year -- 251,644,506 147,529,141 26,655,400 14,305,838
Units issued and transferred
from other funding options 171,624,926 89,766,437 124,042,699 15,422,410 16,482,411
Units redeemed and transferred
to other funding options (3,190,245) (34,443,209) (19,927,334) (9,549,238) (4,132,849)
-------------------- -------------- -------------- ------------- -------------
Units end of year 168,434,681 306,967,734 251,644,506 32,528,572 26,655,400
==================== ============== ============== ============= =============
[Enlarge/Download Table]
MIST MIST
AQR GLOBAL BLACKROCK
MIST AMERICAN FUNDS RISK GLOBAL TACTICAL MIST BLACKROCK
MODERATE ALLOCATION BALANCED STRATEGIES HIGH YIELD
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------------- -------------- ------------------ ---------------------------
2011 2010 2011 (b) 2011 (b) 2011 2010
-------------- -------------- -------------- ------------------ ------------- -------------
Units beginning of year 143,876,667 89,994,728 -- -- 9,034,810 5,656,394
Units issued and transferred
from other funding options 47,194,350 65,794,039 182,389,813 303,340,901 9,640,893 8,972,443
Units redeemed and transferred
to other funding options (22,088,619) (11,912,100) (3,351,421) (6,151,186) (7,784,087) (5,594,027)
-------------- -------------- -------------- ------------------ ------------- -------------
Units end of year 168,982,398 143,876,667 179,038,392 297,189,715 10,891,616 9,034,810
============== ============== ============== ================== ============= =============
[Enlarge/Download Table]
MIST GOLDMAN SACHS MIST HARRIS OAKMARK MIST INVESCO
MID CAP VALUE INTERNATIONAL SMALL CAP GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------- --------------------------- ---------------------------
2011 2010 2011 2010 2011 2010
------------- ------------- ------------- ------------- ------------- -------------
Units beginning of year 7,332,195 6,218,018 23,589,953 18,176,767 11,943,258 11,180,366
Units issued and transferred
from other funding options 4,171,038 2,318,620 11,194,299 9,297,531 5,675,067 3,041,631
Units redeemed and transferred
to other funding options (2,239,962) (1,204,443) (6,751,214) (3,884,345) (3,675,545) (2,278,739)
------------- ------------- ------------- ------------- ------------- -------------
Units end of year 9,263,271 7,332,195 28,033,038 23,589,953 13,942,780 11,943,258
============= ============= ============= ============= ============= =============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
120
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MIST AMERICAN FUNDS MIST AMERICAN FUNDS
GROWTH ALLOCATION MIST AMERICAN FUNDS GROWTH INTERNATIONAL
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------------- ----------------------------- ---------------------------
2011 2010 2011 2010 2011 2010
-------------- -------------- -------------- -------------- ------------- -------------
155,386,301 139,002,030 52,406,611 30,278,080 33,804,542 19,914,429
31,607,811 40,270,626 26,126,126 29,340,669 15,378,100 18,617,289
(27,769,997) (23,886,355) (14,276,139) (7,212,138) (9,827,257) (4,727,176)
-------------- -------------- -------------- -------------- ------------- -------------
159,224,115 155,386,301 64,256,598 52,406,611 39,355,385 33,804,542
============== ============== ============== ============== ============= =============
[Download Table]
MIST BLACKROCK MIST CLARION
LARGE CAP CORE GLOBAL REAL ESTATE MIST DREMAN SMALL CAP VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------- --------------------------- ------------------------------
2011 2010 2011 2010 2011 2010
------------ ------------ ------------- ------------- ------------ -----------------
1,044,239 613,169 9,934,760 7,999,282 1,677,961 1,579,618
690,281 598,887 3,957,434 3,600,130 380,391 478,958
(319,799) (167,817) (2,587,328) (1,664,652) (407,528) (380,615)
------------ ------------ ------------- ------------- ------------ -----------------
1,414,721 1,044,239 11,304,866 9,934,760 1,650,824 1,677,961
============ ============ ============= ============= ============ =================
[Download Table]
MIST LEGG MASON CLEARBRIDGE
MIST JANUS FORTY MIST LAZARD MID CAP AGGRESSIVE GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------- --------------------------- ------------------------------
2011 2010 2011 2010 2011 2010
-------------- ---------- ------------- ------------- ------------- ----------------
397,905 192,470 8,873,534 8,013,598 13,863,499 12,110,468
307,018 273,072 2,534,397 2,475,756 29,743,803 4,529,477
(161,339) (67,637) (2,176,362) (1,615,820) (7,842,806) (2,776,446)
-------------- ---------- ------------- ------------- ------------- ----------------
543,584 397,905 9,231,569 8,873,534 35,764,496 13,863,499
============== ========== ============= ============= ============= ================
121
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, 2011 AND 2010:
[Enlarge/Download Table]
MIST LOOMIS SAYLES MIST LORD ABBETT MIST LORD ABBETT
GLOBAL MARKETS BOND DEBENTURE MID CAP VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------- --------------------------- --------------------------
2011 2010 2011 2010 2011 2010
------------- ------------- ------------- ------------- ------------- ------------
Units beginning of year 10,620,691 7,198,911 11,708,304 11,953,991 4,351,943 3,034,782
Units issued and transferred
from other funding options 6,932,197 5,309,769 2,202,739 2,137,545 2,425,601 2,103,106
Units redeemed and transferred
to other funding options (4,390,932) (1,887,989) (3,062,967) (2,383,232) (1,410,682) (785,945)
------------- ------------- ------------- ------------- ------------- ------------
Units end of year 13,161,956 10,620,691 10,848,076 11,708,304 5,366,862 4,351,943
============= ============= ============= ============= ============= ============
[Enlarge/Download Table]
MIST MET/FRANKLIN TEMPLETON MIST MET/TEMPLETON
FOUNDING STRATEGY MIST MET/TEMPLETON GROWTH INTERNATIONAL BOND
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------ ---------------------------- --------------------------
2011 2010 2011 2010 (c) 2011 2010
-------------- --------------- ------------ --------------- ------------- ------------
Units beginning of year 59,315,796 49,352,169 614,557 -- 2,982,596 775,327
Units issued and transferred
from other funding options 16,803,358 19,542,207 4,751,657 665,172 2,461,365 2,588,044
Units redeemed and transferred
to other funding options (12,494,356) (9,578,580) (678,787) (50,615) (1,167,888) (380,775)
-------------- --------------- ------------ --------------- ------------- ------------
Units end of year 63,624,798 59,315,796 4,687,427 614,557 4,276,073 2,982,596
============== =============== ============ =============== ============= ============
[Enlarge/Download Table]
MIST METLIFE MIST METLIFE MIST METLIFE
DEFENSIVE STRATEGY GROWTH STRATEGY MODERATE STRATEGY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------------- ----------------------------- -----------------------------
2011 2010 2011 2010 2011 2010
-------------- -------------- -------------- -------------- -------------- --------------
Units beginning of year 167,912,074 134,240,318 473,161,406 490,302,032 257,780,425 201,975,022
Units issued and transferred
from other funding options 76,067,194 70,407,244 45,446,076 37,570,947 71,989,252 86,984,304
Units redeemed and transferred
to other funding options (57,716,756) (36,735,488) (71,630,288) (54,711,573) (48,392,030) (31,178,901)
-------------- -------------- -------------- -------------- -------------- --------------
Units end of year 186,262,512 167,912,074 446,977,194 473,161,406 281,377,647 257,780,425
============== ============== ============== ============== ============== ==============
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MIST OPPENHEIMER MIST PIMCO
CAPITAL APPRECIATION INFLATION PROTECTED BOND MIST PIMCO TOTAL RETURN
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------- ---------------------------- -----------------------------
2011 2010 2011 2010 2011 2010
------------- ------------- -------------- ------------- -------------- --------------
Units beginning of year 23,613,830 26,093,951 52,467,468 37,506,865 111,149,390 71,654,403
Units issued and transferred
from other funding options 1,003,067 1,245,884 29,465,582 23,935,539 57,388,417 60,350,932
Units redeemed and transferred
to other funding options (3,844,169) (3,726,005) (18,845,173) (8,974,936) (36,225,860) (20,855,945)
------------- ------------- -------------- ------------- -------------- --------------
Units end of year 20,772,728 23,613,830 63,087,877 52,467,468 132,311,947 111,149,390
============= ============= ============== ============= ============== ==============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
122
[Download Table]
MIST MET/
FRANKLIN LOW MIST
MIST MET/EATON VANCE DURATION TOTAL MET/FRANKLIN
FLOATING RATE RETURN MUTUAL SHARES
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------- ----------------- ---------------------------
2011 2010 (c) 2011 (b) 2011 2010
------------- ------------ ----------------- ------------- -------------
1,600,145 -- -- 13,681,991 7,713,701
4,622,127 1,761,955 3,514,127 7,434,827 7,738,231
(1,959,096) (161,810) (678,613) (3,486,287) (1,769,941)
------------- ------------ ----------------- ------------- -------------
4,263,176 1,600,145 2,835,514 17,630,531 13,681,991
============= ============ ================= ============= =============
[Enlarge/Download Table]
MIST METLIFE
MIST METLIFE AGGRESSIVE STRATEGY BALANCED PLUS MIST METLIFE BALANCED STRATEGY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------------------- ---------------- ---------------------------------
2011 2010 2011 (b) 2011 2010
------------- --------------------- ---------------- -------------- ------------------
45,689,702 41,343,573 -- 546,381,907 458,932,798
12,995,065 12,038,416 262,253,386 131,695,393 141,354,473
(9,294,378) (7,692,287) (5,177,364) (85,252,697) (53,905,364)
------------- --------------------- ---------------- -------------- ------------------
49,390,389 45,689,702 257,076,022 592,824,603 546,381,907
============= ===================== ================ ============== ==================
[Download Table]
MIST MFS MIST MFS MIST MORGAN STANLEY
EMERGING MARKETS EQUITY RESEARCH INTERNATIONAL MID CAP GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------- --------------------------- ---------------------------
2011 2010 2011 2010 2011 2010
------------- ------------- ------------- ------------- ------------- -------------
29,287,659 18,534,256 22,399,698 21,694,779 6,606,286 5,166,934
16,833,846 15,900,566 4,990,746 4,866,440 3,983,667 2,834,922
(9,116,951) (5,147,163) (4,549,426) (4,161,521) (1,854,448) (1,395,570)
------------- ------------- ------------- ------------- ------------- -------------
37,004,554 29,287,659 22,841,018 22,399,698 8,735,505 6,606,286
============= ============= ============= ============= ============= =============
[Download Table]
MIST PYRAMIS
GOVERNMENT
MIST PIONEER FUND MIST PIONEER STRATEGIC INCOME INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------- -------------------------------- ---------------
2011 2010 2011 2010 2011 (b)
------------- ------------ ------------- ------------------ ---------------
5,977,317 3,239,380 17,115,149 10,957,582 --
4,740,977 3,338,408 11,816,114 8,203,544 50,016,569
(1,237,892) (600,471) (4,487,101) (2,045,977) (4,398,550)
------------- ------------ ------------- ------------------ ---------------
9,480,402 5,977,317 24,444,162 17,115,149 45,618,019
============= ============ ============= ================== ===============
123
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, 2011 AND 2010:
[Enlarge/Download Table]
MIST SSGA
MIST RAINIER LARGE CAP EQUITY MIST RCM TECHNOLOGY GROWTH AND INCOME ETF
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------------- --------------------------- ----------------------------
2011 2010 2011 2010 2011 2010
------------- ------------------ ------------- ------------- -------------- -------------
Units beginning of year 5,826,308 4,962,869 16,174,286 13,832,826 85,827,962 29,942,630
Units issued and transferred
from other funding options 4,146,884 2,614,493 8,188,940 7,800,959 55,359,660 60,995,275
Units redeemed and transferred
to other funding options (2,197,131) (1,751,054) (7,137,068) (5,459,499) (20,889,645) (5,109,943)
------------- ------------------ ------------- ------------- -------------- -------------
Units end of year 7,776,061 5,826,308 17,226,158 16,174,286 120,297,977 85,827,962
============= ================== ============= ============= ============== =============
[Enlarge/Download Table]
MIST THIRD AVENUE
SMALL CAP VALUE MIST TURNER MID CAP GROWTH MIST VAN KAMPEN COMSTOCK
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------- ----------------------------- ---------------------------
2011 2010 2011 2010 2011 2010
------------- ------------- ------------- --------------- ------------- -------------
Units beginning of year 18,793,984 17,777,766 5,858,465 4,875,425 21,172,822 16,791,760
Units issued and transferred
from other funding options 4,171,269 4,136,137 2,711,061 2,523,823 9,018,946 7,045,507
Units redeemed and transferred
to other funding options (4,353,554) (3,119,919) (2,154,391) (1,540,783) (5,053,971) (2,664,445)
------------- ------------- ------------- --------------- ------------- -------------
Units end of year 18,611,699 18,793,984 6,415,135 5,858,465 25,137,797 21,172,822
============= ============= ============= =============== ============= =============
[Enlarge/Download Table]
MSF BLACKROCK LEGACY
MSF BLACKROCK LARGE CAP VALUE LARGE CAP GROWTH MSF BLACKROCK MONEY MARKET
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------------- ----------------------- -----------------------------
2011 2010 2011 2010 2011 2010
-------------- ----------------- ----------- ----------- -------------- --------------
Units beginning of year 253,453 264,703 601,185 612,808 51,015,018 54,211,009
Units issued and transferred
from other funding options 92,234 48,171 499,439 130,372 82,525,547 56,918,244
Units redeemed and transferred
to other funding options (93,193) (59,421) (286,424) (141,995) (74,473,263) (60,114,235)
-------------- ----------------- ----------- ----------- -------------- --------------
Units end of year 252,494 253,453 814,200 601,185 59,067,302 51,015,018
============== ================= =========== =========== ============== ==============
[Enlarge/Download Table]
MSF LOOMIS SAYLES MSF MET/ARTISAN MSF MET/DIMENSIONAL
SMALL CAP CORE MID CAP VALUE INTERNATIONAL SMALL COMPANY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------- --------------------------- ------------------------------
2011 2010 2011 2010 2011 2010
-------------- ---------- ------------- ------------- ------------ -----------------
Units beginning of year 214,307 73,444 15,163,945 15,659,935 2,082,274 1,225,665
Units issued and transferred
from other funding options 183,188 177,229 2,591,966 2,242,180 2,109,614 1,504,214
Units redeemed and transferred
to other funding options (87,121) (36,366) (3,156,676) (2,738,170) (855,283) (647,605)
-------------- ---------- ------------- ------------- ------------ -----------------
Units end of year 310,374 214,307 14,599,235 15,163,945 3,336,605 2,082,274
============== ========== ============= ============= ============ =================
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
124
[Download Table]
MIST T. ROWE PRICE MIST T. ROWE PRICE
MIST SSGA GROWTH ETF LARGE CAP VALUE MID CAP GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------- --------------------------- ----------------------------
2011 2010 2011 2010 2011 2010
------------- ------------- ------------- ------------- -------------- -------------
29,136,066 16,443,398 14,212,118 14,942,501 40,356,445 31,597,201
17,254,725 17,578,371 1,831,906 1,536,657 16,646,841 15,342,005
(8,406,338) (4,885,703) (2,597,521) (2,267,040) (12,913,775) (6,582,761)
------------- ------------- ------------- ------------- -------------- -------------
37,984,453 29,136,066 13,446,503 14,212,118 44,089,511 40,356,445
============= ============= ============= ============= ============== =============
[Enlarge/Download Table]
MSF BARCLAYS
MSF ARTIO INTERNATIONAL STOCK CAPITAL AGGREGATE BOND INDEX MSF BLACKROCK BOND INCOME
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------------- ------------------------------- ----------------------------
2011 2010 2011 2010 2011 2010
-------------- ----------------- ------------- ----------------- ----------- ----------------
318,412 337,655 5,646,137 2,010,364 952,834 911,026
38,304 65,262 4,860,368 4,667,969 266,299 285,215
(74,688) (84,505) (2,423,139) (1,032,196) (266,058) (243,407)
-------------- ----------------- ------------- ----------------- ----------- ----------------
282,028 318,412 8,083,366 5,646,137 953,075 952,834
============== ================= ============= ================= =========== ================
[Download Table]
MSF DAVIS VENTURE VALUE MSF FI VALUE LEADERS MSF JENNISON GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------- ------------------------- ---------------------------
2011 2010 2011 2010 2011 2010
------------- ------------- -------------- ---------- ------------- -------------
46,415,423 41,123,511 305,583 265,682 20,230,170 17,375,446
11,133,438 11,167,451 68,199 99,348 6,830,564 6,571,017
(9,180,676) (5,875,539) (84,228) (59,447) (6,183,513) (3,716,293)
------------- ------------- -------------- ---------- ------------- -------------
48,368,185 46,415,423 289,554 305,583 20,877,221 20,230,170
============= ============= ============== ========== ============= =============
[Enlarge/Download Table]
MSF METLIFE CONSERVATIVE MSF METLIFE CONSERVATIVE TO MSF METLIFE
ALLOCATION MODERATE ALLOCATION MID CAP STOCK INDEX
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------- ------------------------------ --------------------------
2011 2010 2011 2010 2011 2010
------------- ------------- ----------- ------------------ ------------- ------------
830,223 967,744 782,775 836,071 3,443,301 1,692,693
121,935 250,831 51,439 117,347 2,827,133 2,366,351
(101,388) (388,352) (225,831) (170,643) (1,561,443) (615,743)
------------- ------------- ----------- ------------------ ------------- ------------
850,770 830,223 608,383 782,775 4,708,991 3,443,301
============= ============= =========== ================== ============= ============
125
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, 2011 AND 2010:
[Enlarge/Download Table]
MSF METLIFE MSF METLIFE
MODERATE ALLOCATION MODERATE TO AGGRESSIVE ALLOCATION MSF METLIFE STOCK INDEX
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------- ----------------------------------- ---------------------------
2011 2010 2011 2010 2011 2010
------------ ------------ ------------ ---------------------- ------------- -------------
Units beginning of year 4,192,524 4,293,013 5,194,016 5,328,120 23,801,960 21,150,594
Units issued and transferred
from other funding options 200,071 262,765 231,797 257,429 9,003,675 9,022,338
Units redeemed and transferred
to other funding options (461,682) (363,254) (793,634) (391,533) (7,457,721) (6,370,972)
------------ ------------ ------------ ---------------------- ------------- -------------
Units end of year 3,930,913 4,192,524 4,632,179 5,194,016 25,347,914 23,801,960
============ ============ ============ ====================== ============= =============
[Enlarge/Download Table]
MSF NEUBERGER BERMAN
MSF NEUBERGER BERMAN GENESIS MID CAP VALUE MSF OPPENHEIMER GLOBAL EQUITY
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------- ------------------------ --------------------------------
2011 2010 2011 2010 2011 2010
----------- ------------------- -------------- --------- ---------- ---------------------
Units beginning of year 578,563 605,787 82,451 11,335 608,969 672,213
Units issued and transferred
from other funding options 203,416 96,136 132,421 76,055 48,407 41,665
Units redeemed and transferred
to other funding options (134,168) (123,360) (38,744) (4,939) (97,845) (104,909)
----------- ------------------- -------------- --------- ---------- ---------------------
Units end of year 647,811 578,563 176,128 82,451 559,531 608,969
=========== =================== ============== ========= ========== =====================
[Enlarge/Download Table]
MSF VAN ECK MSF WESTERN ASSET MANAGEMENT
GLOBAL NATURAL RESOURCES U.S. GOVERNMENT NEUBERGER BERMAN GENESIS
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------- ------------------------------- -------------- ------------
2011 2010 2011 2010 2011 2010
------------- ------------- ------------- ----------------- -------------- ------------
Units beginning of year 3,967,225 1,195,095 12,558,586 8,573,371 571 697
Units issued and transferred
from other funding options 4,742,770 3,313,910 8,649,000 7,037,310 1 --
Units redeemed and transferred
to other funding options (1,799,312) (541,780) (5,169,345) (3,052,095) (98) (126)
------------- ------------- ------------- ----------------- -------------- ------------
Units end of year 6,910,683 3,967,225 16,038,241 12,558,586 474 571
============= ============= ============= ================= ============== ============
[Enlarge/Download Table]
OPPENHEIMER VA MAIN STREET OPPENHEIMER VA MONEY PIONEER VCT CULLEN VALUE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------------- -------------------- ---------------------------
2011 2010 2011 2010 2011 2010
-------------- -------------- ----------- -------- -------------- ------------
Units beginning of year 24,227 28,105 20,177 20,177 243,744 223,412
Units issued and transferred
from other funding options -- -- -- -- 33,606 44,706
Units redeemed and transferred
to other funding options (2,118) (3,878) -- -- (38,941) (24,374)
-------------- -------------- ----------- -------- -------------- ------------
Units end of year 22,109 24,227 20,177 20,177 238,409 243,744
============== ============== =========== ======== ============== ============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
126
[Download Table]
MSF MORGAN STANLEY
MSF MFS TOTAL RETURN MSF MFS VALUE EAFE INDEX
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------ ------------------------- --------------------------
2011 2010 2011 2010 2011 2010
----------- ------------ ------------ ------------ ------------- ------------
929,202 1,006,138 3,234,649 2,664,361 4,636,491 2,230,107
94,193 126,620 610,358 1,034,132 2,965,365 3,151,237
(197,183) (203,556) (699,601) (463,844) (1,210,886) (744,853)
----------- ------------ ------------ ------------ ------------- ------------
826,212 929,202 3,145,406 3,234,649 6,390,970 4,636,491
=========== ============ ============ ============ ============= ============
[Download Table]
MSF T. ROWE PRICE MSF T. ROWE PRICE
MSF RUSSELL 2000 INDEX LARGE CAP GROWTH SMALL CAP GROWTH
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
-------------------------- -------------- ---------- -----------------------
2011 2010 2011 2010 2011 2010
------------- ------------ -------------- ---------- ----------- -----------
2,703,578 1,108,328 40,496 39,614 465,332 481,022
2,808,291 2,273,866 18,754 18,052 84,456 99,207
(1,585,646) (678,616) (14,441) (17,170) (132,407) (114,897)
------------- ------------ -------------- ---------- ----------- -----------
3,926,223 2,703,578 44,809 40,496 417,381 465,332
============= ============ ============== ========== =========== ===========
[Enlarge/Download Table]
OPPENHEIMER VA OPPENHEIMER VA
OPPENHEIMER VA CORE BOND GLOBAL STRATEGIC INCOME MAIN STREET SMALL- & MID-CAP
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
--------------------------- -------------------------- -------------------------------
2011 2010 2011 2010 2011 2010
-------------- ------------ ----------- -------------- ------------ ------------------
1,952 12,533 443 1,786 4,127,208 3,126,840
-- -- -- -- 1,467,581 1,486,005
(74) (10,581) -- (1,343) (630,325) (485,637)
-------------- ------------ ----------- -------------- ------------ ------------------
1,878 1,952 443 443 4,964,464 4,127,208
============== ============ =========== ============== ============ ==================
[Enlarge/Download Table]
PIONEER VCT
PIONEER VCT EMERGING MARKETS PIONEER VCT EQUITY INCOME IBBOTSON GROWTH ALLOCATION
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------------- ---------------------------- -----------------------------
2011 2010 2011 2010 2011 2010
-------------- ---------------- -------------- ------------- ------------ ----------------
62,764 60,035 18,868 20,833 1,275,136 1,257,274
22,207 19,312 4,400 3,801 60,318 115,549
(36,544) (16,583) (5,406) (5,766) (109,882) (97,687)
-------------- ---------------- -------------- ------------- ------------ ----------------
48,427 62,764 17,862 18,868 1,225,572 1,275,136
============== ================ ============== ============= ============ ================
127
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, 2011 AND 2010:
[Enlarge/Download Table]
PIONEER VCT IBBOTSON
MODERATE ALLOCATION PIONEER VCT MID CAP VALUE PIONEER VCT REAL ESTATE SHARES
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
------------------------- ---------------------------- ---------------------------------
2011 2010 2011 2010 2011 2010
------------ ------------ ------------ --------------- -------------- ------------------
Units beginning of year 1,833,743 1,818,031 1,493,349 1,309,529 12,983 16,034
Units issued and transferred
from other funding options 83,107 101,045 478,874 378,519 5,796 1,992
Units redeemed and transferred
to other funding options (121,840) (85,333) (283,392) (194,699) (5,811) (5,043)
------------ ------------ ------------ --------------- -------------- ------------------
Units end of year 1,795,010 1,833,743 1,688,831 1,493,349 12,968 12,983
============ ============ ============ =============== ============== ==================
[Download Table]
UIF U.S. REAL ESTATE
SUB-ACCOUNT
-------------------------
2011 2010
------------ ------------
Units beginning of year 2,327,750 2,542,094
Units issued and transferred
from other funding options 586,753 385,013
Units redeemed and transferred
to other funding options (547,306) (599,357)
------------ ------------
Units end of year 2,367,197 2,327,750
============ ============
(a) For the period March 15, 2010 to December 31, 2010.
(b) For the period May 2, 2011 to December 31, 2011.
(c) For the period May 3, 2010 to December 31, 2010.
128
[Enlarge/Download Table]
T. ROWE PRICE GROWTH STOCK T. ROWE PRICE INTERNATIONAL STOCK T. ROWE PRICE PRIME RESERVE
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
----------------------------- ------------------------------------ ------------------------------
2011 2010 2011 2010 2011 2010
-------------- -------------- -------------- --------------------- -------------- ---------------
85,875 97,059 68,117 72,797 70,013 76,856
4,548 4,878 4,975 3,959 20,863 15,515
(17,022) (16,062) (13,755) (8,639) (36,492) (22,358)
-------------- -------------- -------------- --------------------- -------------- ---------------
73,401 85,875 59,337 68,117 54,384 70,013
============== ============== ============== ===================== ============== ===============
129
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, 2011:
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
--------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
--------- ----------------- ----------- ------------- ----------- -------------------
Alger Small Cap Growth 2011 5,212,661 9.82 - 9.98 51,540,007 -- 1.25 - 1.40 (4.52) - (4.38)
Sub-Account 2010 5,634,931 10.28 - 10.44 58,325,342 -- 1.25 - 1.40 23.54 - 23.73
2009 6,156,883 8.32 - 8.44 51,552,207 -- 1.25 - 1.40 43.49 - 43.70
2008 6,485,576 5.80 - 5.87 37,826,339 -- 1.25 - 1.40 (47.35) - (47.27)
2007 7,147,895 11.01 - 11.13 79,134,670 -- 1.25 - 1.40 15.60 - 15.78
American Funds Bond 2011 6,703,194 16.06 - 18.46 116,697,267 3.37 0.95 - 1.90 4.11 - 5.11
Sub-Account 2010 5,183,483 15.43 - 17.57 86,203,052 3.44 0.95 - 1.90 4.44 - 5.44
(Commenced 6/1/2007) 2009 3,608,245 14.77 - 16.66 57,212,613 3.86 0.95 - 1.90 10.49 - 11.54
2008 1,887,421 13.37 - 14.94 27,017,111 9.06 0.95 - 1.90 (11.06) - (10.21)
2007 413,860 15.27 - 16.64 6,639,941 8.01 0.95 - 1.75 0.28 - 2.19
American Funds Global 2011 8,205,329 21.69 - 26.44 200,460,185 1.37 0.95 - 2.30 (10.95) - (9.75)
Growth Sub-Account 2010 7,470,107 24.36 - 29.30 202,441,649 1.56 0.95 - 2.30 9.21 - 10.69
2009 6,579,263 22.30 - 26.47 161,438,857 1.51 0.95 - 2.30 39.07 - 40.96
2008 5,818,048 16.04 - 18.78 101,450,809 2.17 0.95 - 2.30 (39.80) - (38.97)
2007 3,676,314 26.64 - 30.77 104,847,881 3.27 0.95 - 2.30 12.22 - 13.76
American Funds Global Small 2011 3,080,674 23.15 - 26.58 76,801,888 1.34 0.89 - 1.90 (20.66) - (19.86)
Capitalization Sub-Account 2010 2,578,008 29.19 - 33.17 80,582,925 1.75 0.89 - 1.90 20.11 - 21.33
2009 2,262,060 24.30 - 27.34 58,608,602 0.31 0.89 - 1.90 58.26 - 59.86
2008 1,683,911 15.35 - 17.10 27,428,704 -- 0.89 - 1.90 (54.33) - (49.46)
2007 985,561 34.16 - 37.13 35,036,450 2.98 0.89 - 1.75 19.31 - 20.35
American Funds Growth 2011 3,976,212 115.27 - 170.85 577,437,630 0.63 0.89 - 2.30 (6.45) - (5.12)
Sub-Account 2010 3,717,676 123.22 - 180.08 568,813,924 0.77 0.89 - 2.30 15.98 - 17.63
2009 3,225,880 106.24 - 153.09 419,749,811 0.71 0.89 - 2.30 36.24 - 38.18
2008 2,453,157 77.98 - 110.79 231,101,074 1.04 0.89 - 2.30 (45.25) - (44.47)
2007 1,458,315 142.42 - 199.51 245,762,919 0.98 0.89 - 2.30 9.78 - 11.35
American Funds Growth-Income 2011 2,773,925 78.78 - 116.75 272,388,909 1.60 0.89 - 2.30 (4.06) - (2.70)
Sub-Account 2010 2,639,070 82.11 - 119.99 266,511,951 1.55 0.89 - 2.30 8.90 - 10.44
2009 2,398,146 75.40 - 108.65 219,689,912 1.74 0.89 - 2.30 28.26 - 30.08
2008 1,942,091 58.79 - 83.53 136,811,504 2.00 0.89 - 2.30 (39.27) - (38.40)
2007 1,369,874 96.80 - 135.60 156,224,069 1.92 0.89 - 2.30 2.64 - 4.11
DWS I International 2011 2,245,605 6.92 - 6.97 15,659,285 1.83 1.35 - 1.40 (17.83) - (17.79)
Sub-Account 2010 2,471,385 8.43 - 8.48 20,962,763 2.18 1.35 - 1.40 0.21 - 0.26
2009 2,700,348 8.41 - 8.46 22,845,161 4.39 1.35 - 1.40 31.67 - 31.73
2008 2,819,612 6.39 - 6.42 18,108,679 1.39 1.35 - 1.40 (48.94) - (48.91)
2007 3,119,351 12.50 - 12.57 39,213,025 2.39 1.35 - 1.40 12.99 - 13.04
130
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
--------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
----------- ------------- ------------- ------------- ----------- -------------------
Federated High Income Bond 2011 3,549 8.62 30,572 8.62 1.40 3.71
Sub-Account 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
2008 10,612 4.87 51,695 10.07 1.40 (27.03)
2007 18,999 6.68 126,835 7.93 1.40 1.98
Federated Kaufman Sub-Account 2011 12,138 4.82 58,454 1.12 1.40 (14.47)
(Commenced 3/15/2010) 2010 14,184 5.63 79,874 -- 1.40 13.09
Federated Managed 2011 1,824 5.03 9,170 5.07 1.40 3.33
Volatility Sub-Account 2010 2,848 4.87 13,858 0.22 1.40 7.87
(Commenced 3/15/2010)
Fidelity VIP Asset Manager 2011 7,353,740 11.75 - 12.28 87,071,337 1.88 0.89 - 1.40 (3.91) - (3.42)
Sub-Account 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
2008 10,322,631 8.51 - 8.77 88,545,973 2.51 0.89 - 1.40 (29.71) - (29.35)
2007 11,728,296 12.10 - 12.42 143,069,941 6.10 0.89 - 1.40 12.69 - 14.48
Fidelity VIP Contrafund 2011 15,588,853 10.76 - 43.00 388,526,965 1.01 0.89 - 2.25 (4.80) - (3.38)
Sub-Account 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
2008 16,114,037 7.13 - 28.60 222,674,108 1.01 0.89 - 2.25 (43.90) - (43.03)
2007 16,613,759 12.51 - 50.32 377,396,997 0.95 0.89 - 2.25 14.88 - 16.54
Fidelity VIP Equity-Income 2011 460,289 11.93 5,489,918 2.37 1.40 (0.43)
Sub-Account 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
2008 744,861 8.22 6,119,783 2.23 1.40 (43.46)
2007 942,455 14.53 13,694,030 1.64 1.40 0.11
Fidelity VIP FundsManager 2011 272,464,191 9.48 - 9.54 2,591,601,265 2.00 1.90 - 2.05 (4.01) - (3.87)
60% Sub-Account 2010 118,824,451 9.88 - 9.93 1,176,598,687 2.72 1.90 - 2.05 11.32 - 11.49
(Commenced 10/15/2009) 2009 4,074,373 8.87 - 8.90 36,215,324 3.35 1.90 - 2.05 0.07 - 0.09
Fidelity VIP Growth 2011 9,918,387 13.22 - 13.72 131,974,709 0.36 0.89 - 1.40 (1.19) - (0.68)
Sub-Account 2010 10,951,340 13.38 - 13.81 147,385,504 0.28 0.89 - 1.40 22.44 - 23.08
2009 11,893,241 10.93 - 11.22 130,641,959 0.45 0.89 - 1.40 26.51 - 27.14
2008 12,838,680 8.64 - 8.83 111,413,507 0.78 0.89 - 1.40 (47.91) - (47.64)
2007 14,370,091 16.58 - 16.86 239,237,615 0.83 0.89 - 1.40 24.72 - 25.83
Fidelity VIP Index 500 2011 3,976,112 15.10 - 15.76 60,061,917 1.87 0.89 - 1.35 0.67 - 1.14
Sub-Account 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
2008 6,061,847 10.58 - 10.89 64,164,439 2.01 0.89 - 1.35 (37.85) - (37.56)
2007 7,211,573 17.03 - 17.44 122,812,705 3.57 0.89 - 1.35 4.02 - 4.50
Fidelity VIP Mid Cap 2011 6,289,465 35.30 - 39.95 237,701,501 0.03 0.95 - 1.90 (12.53) - (11.70)
Sub-Account 2010 4,364,581 40.36 - 45.24 187,246,537 0.14 0.95 - 1.90 26.16 - 27.36
2009 3,075,278 31.99 - 35.52 103,784,411 0.54 0.95 - 1.90 37.12 - 38.43
2008 1,905,032 23.33 - 25.66 46,484,098 0.26 0.95 - 1.90 (40.75) - (40.18)
2007 997,653 39.38 - 42.90 40,496,316 0.51 0.95 - 1.90 13.16 - 14.24
131
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
--------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
--------- ----------------- ----------- ------------- ----------- -------------------
Fidelity VIP Money Market 2011 8,001,050 7.23 - 11.14 73,068,632 0.09 0.89 - 2.05 (1.94) - (0.77)
Sub-Account 2010 7,492,405 7.33 - 11.34 67,343,833 0.17 0.89 - 2.05 (1.82) - (0.65)
2009 6,126,543 7.41 - 11.53 50,572,988 0.71 0.89 - 2.05 (0.68) - (0.17)
2008 5,530,761 7.46 - 8.02 41,701,796 2.97 0.89 - 1.40 1.58 - 2.11
2007 5,148,515 7.35 - 7.86 38,182,657 5.08 0.89 - 1.40 3.69 - 4.22
Fidelity VIP Overseas 2011 540,072 8.06 - 9.24 4,664,192 1.35 1.15 - 1.40 (18.32) - (18.12)
Sub-Account 2010 593,728 9.85 - 11.30 6,266,276 1.39 1.15 - 1.40 11.54 - 11.82
2009 663,667 8.81 - 10.11 6,282,775 2.17 1.15 - 1.40 24.78 - 25.09
2008 713,199 7.04 - 8.09 5,413,449 2.46 1.15 - 1.40 (44.59) - (44.45)
2007 826,076 12.67 - 14.58 11,327,734 3.29 1.15 - 1.40 15.67 - 15.96
FTVIPT Franklin Income 2011 4,290,472 39.61 - 53.36 206,611,149 5.75 0.95 - 2.25 0.11 - 1.42
Securities Sub-Account 2010 3,722,732 39.56 - 52.61 176,548,647 6.60 0.95 - 2.25 10.17 - 11.61
2009 3,157,996 35.91 - 47.14 134,091,525 8.01 0.95 - 2.25 32.58 - 34.31
2008 2,613,572 27.09 - 35.10 82,449,457 5.48 0.95 - 2.25 (31.23) - (30.32)
2007 1,974,360 39.38 - 50.37 88,519,218 3.16 0.95 - 2.25 1.44 - 2.77
FTVIPT Franklin Small Cap 2011 5,710,847 8.71 - 9.04 50,705,697 0.66 0.95 - 1.75 (5.43) - (4.67)
Value Securities Sub-Account 2010 3,178,430 9.21 - 9.48 29,718,643 0.73 0.95 - 1.75 26.00 - 27.01
(Commenced 6/1/2007) 2009 1,787,114 7.31 - 7.46 13,205,263 1.66 0.95 - 1.75 26.91 - 27.94
2008 856,253 5.76 - 5.83 4,965,586 1.04 0.95 - 1.75 (34.18) - (33.65)
2007 251,664 8.75 - 8.79 2,208,487 -- 0.95 - 1.75 (14.60) - (3.45)
FTVIPT Mutual Shares 2011 5,952,328 18.51 - 21.38 118,532,870 2.42 0.95 - 1.90 (2.90) - (1.98)
Securities Sub-Account 2010 5,431,435 19.07 - 21.81 110,507,146 1.62 0.95 - 1.90 9.10 - 10.14
2009 4,784,657 17.47 - 19.80 88,554,450 2.02 0.95 - 1.90 23.67 - 24.86
2008 3,944,854 14.13 - 15.86 58,571,142 3.27 0.95 - 1.90 (38.30) - (37.71)
2007 3,006,411 22.90 - 25.46 71,392,728 1.37 0.95 - 1.90 1.52 - 2.50
FTVIPT Templeton Foreign 2011 2,720,421 11.59 - 27.19 69,009,193 1.71 1.55 - 2.30 (12.66) - (12.00)
Securities Sub-Account 2010 2,782,005 13.20 - 30.95 79,683,759 1.88 1.55 - 2.30 5.94 - 6.74
2009 2,655,441 12.40 - 29.04 70,515,555 3.05 1.55 - 2.30 33.93 - 34.94
2008 2,485,260 9.21 - 21.55 48,551,609 2.33 1.55 - 2.30 (41.74) - (41.30)
2007 1,778,828 15.73 - 36.77 56,498,732 1.81 1.55 - 2.30 12.82 - 13.67
FTVIPT Templeton Global 2011 8,104,261 16.36 - 18.15 139,986,041 5.46 0.95 - 1.75 (2.58) - (1.81)
Bond Securities Sub-Account 2010 4,997,591 16.79 - 18.48 88,294,177 1.36 0.95 - 1.75 12.46 - 13.36
(Commenced 6/1/2007) 2009 2,853,081 14.93 - 16.31 44,636,060 14.21 0.95 - 1.75 16.62 - 17.56
2008 1,462,599 12.80 - 13.87 19,575,877 3.50 0.95 - 1.75 4.36 - 5.20
2007 318,925 12.27 - 13.18 4,080,871 0.01 0.95 - 1.75 3.66 - 9.78
Invesco V.I. Capital 2011 25,848 3.91 101,083 0.16 1.40 (9.17)
Appreciation Sub-Account 2010 33,129 4.31 142,665 0.73 1.40 13.89
2009 41,631 3.78 157,420 0.62 1.40 19.39
2008 50,723 3.17 160,644 -- 1.40 (43.30)
2007 77,611 5.59 433,487 -- 1.40 10.45
Invesco V.I. Core Equity 2011 63,191 4.38 276,761 0.92 1.40 (1.44)
Sub-Account 2010 88,640 4.44 393,933 0.95 1.40 8.02
2009 99,143 4.11 407,845 1.76 1.40 26.51
2008 120,534 3.25 391,928 1.79 1.40 (31.12)
2007 181,999 4.72 859,118 0.99 1.40 6.61
132
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
---------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
---------- ----------------- ----------- ------------- ----------- -------------------
Invesco V.I. Global Real 2011 1,863,096 7.08 - 7.38 13,467,264 4.22 0.95 - 1.75 (8.34) - (7.62)
Estate Sub-Account 2010 1,148,943 7.73 - 7.98 9,028,134 5.55 0.95 - 1.75 15.19 - 16.13
(Commenced 6/1/2007) 2009 704,385 6.71 - 6.88 4,786,308 -- 0.95 - 1.75 28.83 - 29.86
2008 449,308 5.21 - 5.29 2,360,062 9.45 0.95 - 1.75 (45.68) - (45.25)
2007 156,912 9.58 - 9.67 1,510,684 9.59 0.95 - 1.75 (13.59) - (6.80)
Invesco V.I. International 2011 6,481,068 6.86 - 25.68 154,099,050 1.06 0.95 - 1.75 (8.60) - (7.87)
Growth Sub-Account 2010 4,327,573 7.46 - 27.87 111,888,065 2.01 0.95 - 1.75 10.66 - 11.55
2009 2,818,925 6.70 - 24.98 65,315,391 1.74 0.95 - 1.75 32.57 - 33.63
2008 1,618,515 5.02 - 18.70 27,961,110 0.80 0.95 - 1.75 (41.56) - (41.09)
2007 445,944 8.54 - 31.74 11,954,057 1.05 0.95 - 1.75 0.37 - 13.15
Invesco V.I. Van Kampen 2011 18,874 4.77 90,033 -- 1.40 (7.49)
Capital Growth Sub-Account 2010 25,363 5.16 130,764 -- 1.40 18.18
2009 26,829 4.36 117,046 0.11 1.40 63.78
2008 33,379 2.66 88,923 0.55 1.40 (49.70)
2007 1,659,770 5.28 - 5.59 9,156,031 -- 1.50 - 2.30 13.98 - 15.33
Invesco V.I. Van Kampen 2011 27,370,136 4.44 - 15.75 414,357,262 1.69 0.95 - 1.90 (8.77) - (2.23)
Equity and Income 2010 22,199,448 14.98 - 16.11 345,124,808 1.92 0.95 - 1.90 9.92 - 10.97
Sub-Account 2009 17,747,381 13.63 - 14.52 249,400,082 2.82 0.95 - 1.90 20.19 - 21.33
2008 13,625,412 11.34 - 11.97 158,238,412 2.44 0.95 - 1.90 (24.14) - (23.41)
2007 10,934,412 14.95 - 15.63 166,104,798 2.06 0.95 - 1.90 1.41 - 2.38
Invesco V.I. Van Kampen 2011 11,777,382 6.40 - 24.26 206,338,231 1.13 0.95 - 1.90 (4.10) - (3.18)
Growth and Income 2010 9,061,763 6.63 - 25.06 160,437,278 0.09 0.95 - 1.90 10.09 - 11.13
Sub-Account 2009 6,896,039 5.97 - 22.55 107,604,807 3.60 0.95 - 1.90 21.78 - 22.94
2008 4,699,178 4.87 - 18.34 57,517,543 1.50 0.95 - 1.90 (33.49) - (32.85)
2007 3,069,791 7.27 - 27.31 49,067,204 1.01 0.95 - 1.90 0.58 - 1.55
Invesco V.I. Van Kampen Mid 2011 4,490,470 10.26 - 10.68 47,014,117 0.72 0.95 - 1.75 (0.92) - (0.12)
Cap Value Sub-Account 2010 2,673,648 10.35 - 10.70 28,139,044 0.80 0.95 - 1.75 20.06 - 21.03
(Commenced 6/1/2007) 2009 1,763,519 8.62 - 8.84 15,401,650 1.18 0.95 - 1.75 36.75 - 37.84
2008 1,130,852 6.31 - 6.41 7,194,408 0.78 0.95 - 1.75 (42.44) - (41.98)
2007 257,428 10.95 - 11.05 2,833,669 0.17 0.95 - 1.75 (6.13) - (6.63)
Janus Aspen Worldwide 2011 769 6.17 4,750 0.58 0.89 (14.50)
Sub-Account 2010 901 7.22 6,506 0.61 0.89 14.80
2009 999 6.29 6,285 1.43 0.89 36.49
2008 1,089 4.61 5,018 1.21 0.89 (45.15)
2007 1,182 8.40 9,932 0.76 0.89 8.65
LMPVET ClearBridge Variable 2011 11,855,614 8.94 - 15.09 160,839,221 0.20 0.95 - 2.30 0.15 - 1.50
Aggressive Growth 2010 11,742,971 8.92 - 14.87 156,471,918 0.15 0.95 - 2.30 22.17 - 23.83
Sub-Account 2009 11,503,827 7.29 - 12.01 123,705,924 -- 0.95 - 2.30 31.51 - 33.30
2008 10,751,677 7.58 - 9.01 86,704,540 -- 0.95 - 2.30 (41.77) - (40.97)
2007 9,406,900 13.02 - 15.26 127,959,661 -- 0.95 - 2.30 (0.82) - 0.54
LMPVET ClearBridge Variable 2011 7,021,537 26.94 - 34.98 224,680,370 1.77 0.95 - 2.30 0.28 - 1.64
Appreciation Sub-Account 2010 5,515,253 26.87 - 34.42 173,626,503 1.83 0.95 - 2.30 10.07 - 11.56
2009 4,134,838 24.41 - 30.85 116,657,409 2.45 0.95 - 2.30 19.34 - 20.96
2008 3,070,482 11.00 - 25.50 70,122,225 1.44 0.95 - 2.30 (31.05) - (29.98)
2007 2,591,844 15.95 - 36.42 83,497,462 1.37 0.95 - 2.30 1.22 - 7.39
133
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
--------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
--------- ----------------- ----------- ------------- ----------- -------------------
LMPVET ClearBridge Variable 2011 8,013,455 9.06 - 14.28 103,322,855 3.39 0.95 - 2.30 (2.15) - 6.69
Equity Income Builder 2010 6,778,039 10.29 - 13.39 81,006,913 4.09 0.95 - 1.90 10.01 - 11.06
Sub-Account 2009 6,144,958 9.34 - 12.06 64,946,351 3.37 0.95 - 1.90 20.32 - 21.47
2008 5,136,303 7.74 - 9.92 43,322,014 1.13 0.95 - 1.90 (36.25) - (35.58)
2007 4,737,273 12.15 - 15.28 59,957,587 1.99 1.10 - 1.90 0.27 - 5.14
LMPVET ClearBridge Variable 2011 3,213,146 25.64 - 32.59 95,718,136 1.41 0.95 - 2.30 (8.32) - (7.08)
Fundamental All Cap Value 2010 3,100,875 27.97 - 35.07 99,528,233 1.79 0.95 - 2.30 13.96 - 15.50
Sub-Account 2009 2,989,079 24.54 - 30.36 83,258,408 1.44 0.95 - 2.30 26.41 - 28.14
2008 2,724,852 19.41 - 23.70 59,326,416 1.83 0.95 - 2.30 (38.03) - (37.18)
2007 2,440,021 31.33 - 37.72 84,463,307 1.55 0.95 - 2.30 (1.05) - (0.31)
LMPVET ClearBridge Variable 2011 363,040 11.99 - 13.38 4,673,796 0.42 1.50 - 2.30 (2.91) - (2.12)
Large Cap Growth 2010 459,350 12.35 - 13.67 6,065,533 0.11 1.50 - 2.30 7.34 - 8.19
Sub-Account 2009 557,417 11.50 - 12.63 6,818,703 0.27 1.50 - 2.30 39.14 - 40.27
2008 629,993 8.27 - 9.01 5,503,740 0.26 1.50 - 2.30 (38.72) - (38.23)
2007 699,543 13.49 - 14.58 9,921,012 0.05 1.50 - 2.30 2.90 - 3.73
LMPVET ClearBridge Variable 2011 265,335 13.42 - 15.00 3,836,359 2.82 1.50 - 2.30 2.57 - 3.39
Large Cap Value Sub-Account 2010 194,899 13.09 - 14.51 2,729,796 3.02 1.50 - 2.30 6.98 - 7.83
2009 196,692 12.23 - 13.45 2,559,454 1.95 1.50 - 2.30 21.66 - 22.65
2008 188,889 10.05 - 10.97 2,012,063 1.09 1.50 - 2.30 (37.09) - (36.59)
2007 279,645 15.98 - 17.30 4,699,165 1.52 1.50 - 2.30 1.53 - 2.35
LMPVET ClearBridge Variable 2011 2,686,955 13.50 - 18.35 42,564,777 -- 0.95 - 2.30 (0.91) - 0.43
Small Cap Growth 2010 2,149,625 13.62 - 18.28 33,662,804 -- 0.95 - 2.30 22.34 - 24.00
Sub-Account 2009 1,757,714 11.13 - 14.74 21,966,842 -- 0.95 - 2.30 39.53 - 41.42
2008 1,214,861 7.98 - 10.42 10,577,679 -- 0.95 - 2.30 (42.06) - (41.27)
2007 754,675 13.77 - 17.53 10,904,358 -- 1.10 - 2.30 7.50 - 8.80
LMPVET Investment Counsel 2011 17,377 27.28 - 29.51 501,373 1.20 1.50 - 1.90 (1.89) - (1.51)
Variable Social Awareness 2010 17,424 27.81 - 29.97 510,680 1.24 1.50 - 1.90 10.04 - 10.48
Sub-Account 2009 19,412 25.28 - 27.12 515,712 1.43 1.50 - 1.90 20.53 - 21.01
2008 25,775 20.97 - 22.41 567,901 2.05 1.50 - 1.90 (26.61) - (26.32)
2007 19,022 28.57 - 30.42 565,965 1.84 1.50 - 1.90 8.80 - 9.24
LMPVET Variable Lifestyle 2011 1,414,982 15.93 - 17.95 24,265,695 3.19 1.10 - 1.90 (0.73) - 0.07
Allocation 50% Sub-Account 2010 769,522 16.05 - 17.94 13,086,823 4.10 1.10 - 1.90 6.21 - 12.65
2009 487,451 14.30 - 15.06 7,231,568 5.06 1.50 - 1.90 29.83 - 30.35
2008 567,873 11.02 - 11.55 6,471,351 3.50 1.50 - 1.90 (28.71) - (28.42)
2007 590,437 15.45 - 16.14 9,409,255 5.14 1.50 - 1.90 1.26 - 1.67
LMPVET Variable Lifestyle 2011 219,583 13.47 - 14.30 3,086,943 1.88 1.50 - 1.90 (2.45) - (2.06)
Allocation 70% Sub-Account 2010 236,121 13.81 - 14.60 3,395,287 2.04 1.50 - 1.90 12.84 - 13.30
2009 271,548 12.24 - 12.89 3,447,350 3.60 1.50 - 1.90 30.41 - 30.93
2008 280,357 9.39 - 9.84 2,719,047 2.51 1.50 - 1.90 (34.04) - (33.77)
2007 250,067 14.23 - 14.86 3,668,950 4.65 1.50 - 1.90 1.87 - 2.28
LMPVET Variable Lifestyle 2011 4,732,454 12.85 - 14.81 65,879,472 1.55 0.95 - 1.90 (4.15) - (3.23)
Allocation 85% Sub-Account 2010 4,289,092 13.41 - 15.30 62,035,149 1.73 0.95 - 1.90 13.52 - 14.60
2009 3,756,486 11.81 - 13.35 47,576,561 2.64 0.95 - 1.90 29.99 - 31.22
2008 2,668,230 9.09 - 10.18 25,875,933 2.50 0.95 - 1.90 (38.60) - (38.01)
2007 1,057,927 14.80 - 16.41 16,581,727 5.12 0.95 - 1.90 1.41 - 2.38
134
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
--------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
----------- ------------- ------------- ------------- ----------- -------------------
LMPVIT Western Asset Variable 2011 3,594,817 17.34 - 20.85 69,717,903 8.38 0.95 - 2.30 (0.59) - 0.75
Global High Yield Bond 2010 3,170,899 17.44 - 20.70 61,092,507 9.47 0.95 - 2.30 12.31 - 13.83
Sub-Account 2009 2,845,850 15.53 - 18.18 48,249,580 11.34 0.95 - 2.30 52.02 - 54.08
2008 2,664,258 10.21 - 11.80 29,373,023 11.01 0.95 - 2.30 (32.40) - (31.48)
2007 2,527,054 15.11 - 16.97 40,738,484 9.95 1.10 - 2.30 (2.35) - (1.17)
MFS VIT Investors Trust 2011 7,050 4.82 33,994 0.90 1.40 (3.54)
Sub-Account 2010 8,683 5.00 43,404 1.30 1.40 9.56
2009 11,563 4.56 52,758 1.77 1.40 25.15
2008 13,271 3.65 48,391 0.96 1.40 (34.01)
2007 23,909 5.53 132,122 0.85 1.40 8.76
MFS VIT New Discovery 2011 4,939 8.38 41,374 -- 1.40 (11.51)
Sub-Account 2010 4,951 9.47 46,865 -- 1.40 34.44
2009 6,461 7.04 45,491 -- 1.40 60.90
2008 10,205 4.38 44,654 -- 1.40 (40.18)
2007 13,583 7.31 99,354 -- 1.40 1.08
MFS VIT Research Sub-Account 2011 8,675 5.20 45,142 0.72 1.40 (1.83)
2010 21,202 5.30 112,388 0.92 1.40 14.29
2009 23,944 4.64 111,057 1.44 1.40 28.73
2008 26,232 3.60 94,515 0.58 1.40 (36.98)
2007 34,862 5.72 199,317 0.70 1.40 11.62
MIST AllianceBernstein Global 2011 168,434,681 9.68 - 9.75 1,639,379,077 0.87 1.15 - 2.25 (3.18) - (2.47)
Dynamic Allocation
Sub-Account
(Commenced 5/2/2011)
MIST American Funds Balanced 2011 306,967,734 9.22 - 9.69 2,914,777,188 1.26 1.00 - 2.35 (4.39) - (3.10)
Allocation Sub-Account 2010 251,644,506 9.64 - 10.00 2,478,289,324 1.01 1.00 - 2.35 9.55 - 11.05
(Commenced 4/28/2008) 2009 147,529,141 8.80 - 9.00 1,315,175,709 -- 1.00 - 2.35 20.40 - 27.85
2008 47,541,825 6.97 - 7.02 332,865,017 6.67 1.15 - 2.35 (30.39) - (29.82)
MIST American Funds Bond 2011 32,528,572 10.43 - 10.84 349,346,240 2.09 1.30 - 2.35 3.34 - 4.42
Sub-Account 2010 26,655,400 10.10 - 10.38 274,791,792 1.64 1.30 - 2.35 3.63 - 4.73
(Commenced 4/28/2008) 2009 14,305,838 9.74 - 9.92 141,146,685 -- 1.30 - 2.35 9.52 - 10.67
2008 3,151,521 8.89 - 8.96 28,171,025 9.47 1.30 - 2.35 (11.39) - (10.76)
MIST American Funds Growth 2011 159,224,115 8.53 - 8.92 1,398,390,722 1.10 1.15 - 2.35 (6.95) - (5.82)
Allocation Sub-Account 2010 155,386,301 9.17 - 9.47 1,454,861,016 0.89 1.15 - 2.35 10.86 - 12.18
(Commenced 4/28/2008) 2009 139,002,030 8.27 - 8.44 1,164,848,803 -- 1.15 - 2.35 30.93 - 32.51
2008 74,827,606 6.32 - 6.37 475,226,821 6.95 1.15 - 2.35 (36.80) - (36.28)
MIST American Funds Growth 2011 64,256,598 8.36 - 8.69 553,292,806 0.35 1.30 - 2.35 (6.81) - (5.83)
Sub-Account 2010 52,406,611 8.97 - 9.23 480,253,525 0.20 1.30 - 2.35 15.57 - 16.79
(Commenced 4/28/2008) 2009 30,278,080 7.76 - 7.90 238,097,827 -- 1.30 - 2.35 35.67 - 37.09
2008 9,556,758 5.72 - 5.76 54,966,248 7.34 1.30 - 2.35 (42.71) - (42.30)
MIST American Funds 2011 39,355,385 7.35 - 7.61 296,765,073 1.44 1.30 - 2.25 (16.18) - (15.38)
International Sub-Account 2010 33,804,542 8.75 - 9.00 301,922,149 0.76 1.30 - 2.35 4.42 - 5.51
(Commenced 4/28/2008) 2009 19,914,429 8.38 - 8.53 168,980,812 -- 1.30 - 2.35 39.25 - 40.72
2008 7,576,246 6.02 - 6.06 45,810,468 11.18 1.30 - 2.20 (40.31) - (39.94)
135
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
--------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
----------- ------------- ------------- ------------- ----------- -------------------
MIST American Funds Moderate 2011 168,982,398 9.67 - 10.16 1,683,464,896 1.54 1.00 - 2.35 (2.14) - (0.81)
Allocation Sub-Account 2010 143,876,667 9.88 - 10.25 1,452,175,003 1.41 1.00 - 2.35 7.36 - 8.82
(Commenced 4/28/2008) 2009 89,994,728 9.20 - 9.42 839,089,528 -- 1.00 - 2.35 15.69 - 21.98
2008 29,162,701 7.64 - 7.70 223,820,453 6.96 1.15 - 2.35 (23.78) - (23.16)
MIST AQR Global Risk 2011 179,038,392 10.54 - 10.62 1,898,124,083 3.00 1.15 - 2.25 1.94 - 2.70
Balanced Sub-Account
(Commenced 5/2/2011)
MIST BlackRock Global Tactical 2011 297,189,715 9.51 - 9.58 2,842,712,285 1.37 1.15 - 2.25 (4.84) - (4.14)
Strategies Sub-Account
(Commenced 5/2/2011)
MIST BlackRock High Yield 2011 10,891,616 12.03 - 21.28 221,624,841 6.52 1.20 - 2.35 (0.03) - 1.12
Sub-Account 2010 9,034,810 11.92 - 21.07 182,367,303 5.88 1.20 - 2.35 5.99 - 14.28
2009 5,656,394 16.02 - 18.43 100,278,538 3.54 1.30 - 2.35 43.24 - 44.75
2008 1,114,960 11.47 - 12.73 13,709,683 5.00 1.30 - 2.30 (25.93) - (25.14)
2007 450,432 15.68 - 16.78 7,452,180 8.47 1.70 - 2.30 0.35 - 0.96
MIST BlackRock Large Cap 2011 1,414,721 8.42 - 9.34 12,849,849 0.92 1.55 - 2.30 (2.06) - (1.33)
Core Sub-Account 2010 1,044,239 8.60 - 9.47 9,613,588 1.06 1.55 - 2.30 10.01 - 10.85
2009 613,169 7.82 - 8.54 5,078,728 1.34 1.55 - 2.30 16.49 - 17.35
2008 508,491 6.71 - 7.28 3,599,088 0.57 1.55 - 2.30 (38.73) - (38.27)
2007 390,444 10.96 - 11.80 4,467,216 0.64 1.55 - 2.30 0.28 - 4.87
MIST Clarion Global Real 2011 11,304,866 12.34 - 13.38 147,447,056 3.80 1.30 - 2.35 (7.78) - (6.80)
Estate Sub-Account 2010 9,934,760 13.39 - 14.36 139,330,754 7.76 1.30 - 2.35 13.41 - 14.61
2009 7,999,282 11.80 - 12.53 98,120,895 3.11 1.30 - 2.35 31.61 - 33.00
2008 6,912,531 8.97 - 9.42 63,965,106 1.66 1.30 - 2.35 (43.03) - (42.43)
2007 6,238,930 15.74 - 16.36 100,668,094 0.98 1.30 - 2.35 (16.99) - (16.11)
MIST Dreman Small Cap Value 2011 1,650,824 12.42 - 13.17 21,224,281 1.69 1.20 - 2.30 (12.17) - (11.43)
Sub-Account 2010 1,677,961 14.14 - 14.87 24,426,974 0.82 1.20 - 2.30 16.82 - 17.83
2009 1,579,618 12.10 - 12.62 19,575,088 0.88 1.20 - 2.30 26.15 - 27.24
2008 1,254,915 9.59 - 9.92 12,261,677 0.72 1.20 - 2.30 (26.93) - (21.55)
2007 865,483 13.13 - 13.40 11,511,054 -- 1.55 - 2.30 (3.24) - (2.50)
MIST Goldman Sachs Mid Cap 2011 9,263,271 13.34 - 14.45 130,696,272 0.48 1.30 - 2.35 (8.46) - (7.50)
Value Sub-Account 2010 7,332,195 14.57 - 15.63 112,015,664 0.92 1.30 - 2.35 21.35 - 22.63
2009 6,218,018 12.01 - 12.74 77,628,353 1.25 1.30 - 2.35 29.24 - 30.59
2008 7,184,822 9.29 - 9.76 68,935,462 0.79 1.30 - 2.35 (37.57) - (36.90)
2007 9,178,387 14.88 - 15.47 140,073,719 0.49 1.30 - 2.35 0.69 - 1.76
MIST Harris Oakmark 2011 28,033,038 14.49 - 17.04 461,860,538 -- 1.30 - 2.35 (16.24) - (15.36)
International Sub-Account 2010 23,589,953 17.23 - 20.14 459,739,197 1.82 1.30 - 2.35 13.71 - 14.92
2009 18,176,767 15.11 - 17.52 309,481,262 7.66 1.30 - 2.35 43.46 - 53.06
2008 16,938,263 10.69 - 11.45 189,181,455 1.67 1.30 - 2.35 (42.26) - (41.65)
2007 20,013,713 18.49 - 19.62 384,273,575 0.80 1.30 - 2.35 (3.43) - (2.40)
MIST Invesco Small Cap 2011 13,942,780 14.22 - 16.69 212,672,795 -- 0.89 - 2.35 (3.37) - (1.73)
Growth Sub-Account 2010 11,943,258 14.70 - 16.99 186,610,558 -- 0.89 - 2.35 23.26 - 25.35
2009 11,180,366 11.92 - 13.55 140,473,926 -- 0.89 - 2.35 30.70 - 33.03
2008 10,535,898 9.11 - 10.19 100,447,225 -- 0.89 - 2.35 (40.16) - (39.15)
2007 11,452,863 15.20 - 16.74 181,044,517 -- 0.89 - 2.35 8.48 - 10.41
136
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
---------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
---------- ----------------- ----------- ------------- ----------- -------------------
MIST Janus Forty Sub-Account 2011 543,584 96.27 - 146.05 68,769,080 1.69 1.30 - 2.35 (9.69) - (8.74)
2010 397,905 106.29 - 160.04 53,356,686 1.30 1.30 - 2.35 3.20 - 8.00
2009 192,470 99.16 - 121.06 21,865,637 -- 1.55 - 2.30 39.96 - 41.01
2008 143,074 70.85 - 85.85 11,490,581 4.86 1.55 - 2.30 (43.18) - (42.75)
2007 62,044 124.70 - 149.97 8,715,091 0.08 1.55 - 2.30 27.48 - 28.45
MIST Lazard Mid Cap 2011 9,231,569 13.28 - 14.86 131,200,067 0.72 1.20 - 2.35 (7.47) - (6.40)
Sub-Account 2010 8,873,534 14.35 - 15.88 135,205,406 0.86 1.20 - 2.35 20.00 - 21.40
2009 8,013,598 11.95 - 13.08 100,906,992 1.16 1.20 - 2.35 33.58 - 35.13
2008 7,502,381 8.94 - 9.61 70,201,744 0.96 1.30 - 2.35 (39.74) - (39.10)
2007 7,858,992 14.83 - 15.78 121,255,292 0.34 1.30 - 2.35 (4.98) - (3.97)
MIST Legg Mason ClearBridge 2011 35,764,496 6.45 - 7.78 265,479,062 -- 0.95 - 2.35 (9.34) - 1.91
Aggressive Growth 2010 13,863,499 6.97 - 7.63 102,505,758 -- 1.30 - 2.35 20.92 - 22.20
Sub-Account 2009 12,110,468 5.76 - 6.24 73,409,292 -- 1.30 - 2.35 29.87 - 31.23
2008 12,239,079 4.43 - 4.76 56,694,512 -- 1.30 - 2.35 (40.47) - (39.84)
2007 13,488,538 7.44 - 7.91 104,186,821 -- 1.30 - 2.35 (0.12) - 0.94
MIST Loomis Sayles Global 2011 13,161,956 12.01 - 12.74 165,018,207 2.32 1.30 - 2.35 (3.77) - (2.75)
Markets Sub-Account 2010 10,620,691 12.48 - 13.10 137,171,845 2.99 1.30 - 2.35 19.18 - 20.43
2009 7,198,911 10.47 - 10.88 77,383,467 1.95 1.30 - 2.35 37.54 - 39.00
2008 5,848,580 7.61 - 7.83 45,350,255 4.63 1.30 - 2.35 (40.68) - (40.05)
2007 4,274,323 12.83 - 13.06 55,474,222 -- 1.30 - 2.35 24.87 - 26.19
MIST Lord Abbett Bond 2011 10,848,076 8.39 - 26.88 255,107,548 5.92 0.89 - 2.35 2.04 - 3.90
Debenture Sub-Account 2010 11,708,304 8.12 - 25.87 267,920,695 6.21 0.89 - 2.35 10.34 - 12.18
2009 11,953,991 7.27 - 23.06 245,913,998 7.17 0.89 - 2.35 33.60 - 35.91
2008 11,669,031 5.38 - 16.97 178,177,257 4.35 0.89 - 2.35 (20.50) - (19.12)
2007 15,162,946 6.68 - 20.98 288,948,614 5.32 0.89 - 2.35 4.06 - 5.90
MIST Lord Abbett Mid Cap 2011 5,366,862 21.23 - 24.69 127,004,689 0.51 1.30 - 2.35 (5.93) - (4.94)
Value Sub-Account 2010 4,351,943 22.57 - 25.97 108,323,379 0.55 1.30 - 2.35 22.62 - 23.91
2009 3,034,782 18.41 - 20.96 60,902,685 1.74 1.30 - 2.35 23.59 - 24.90
2008 1,489,703 14.89 - 16.78 23,899,560 0.41 1.30 - 2.35 (40.20) - (39.57)
2007 609,565 25.04 - 27.45 16,075,069 0.60 1.55 - 2.30 (1.70) - (0.96)
MIST Met/Eaton Vance 2011 4,263,176 10.13 - 10.30 43,696,769 1.99 1.30 - 2.30 (0.31) - 0.69
Floating Rate Sub-Account 2010 1,600,145 10.16 - 10.23 16,334,315 -- 1.30 - 2.30 1.64 - 2.31
(Commenced 5/3/2010)
MIST Met/Franklin Low 2011 2,835,514 9.70 - 9.78 27,661,832 -- 1.20 - 2.35 (2.83) - (2.08)
Duration Total Return
Sub-Account
(Commenced 5/2/2011)
MIST Met/Franklin Mutual 2011 17,630,531 8.43 - 8.76 152,876,625 2.75 1.30 - 2.35 (2.85) - (1.83)
Shares Sub-Account 2010 13,681,991 8.67 - 8.92 121,115,835 -- 1.30 - 2.35 8.44 - 9.58
(Commenced 4/28/2008) 2009 7,713,701 8.01 - 8.14 62,452,238 -- 1.30 - 2.30 22.05 - 23.27
2008 1,978,335 6.56 - 6.60 13,038,845 5.28 1.30 - 2.20 (34.35) - (33.94)
MIST Met/Franklin Templeton 2011 63,624,798 9.05 - 9.46 592,611,774 1.72 1.15 - 2.35 (4.04) - (2.88)
Founding Strategy 2010 59,315,798 9.43 - 9.74 571,218,147 -- 1.15 - 2.35 7.50 - 8.79
Sub-Account 2009 49,352,169 8.80 - 8.95 438,687,403 -- 1.15 - 2.20 25.75 - 27.08
(Commenced 4/28/2008) 2008 27,525,771 6.99 - 7.05 193,348,119 3.15 1.15 - 2.20 (30.03) - (29.53)
137
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
--------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
----------- ------------- ------------- ------------- ----------- -------------------
MIST Met/Templeton Growth 2011 4,687,427 8.18 - 14.06 49,144,134 0.33 0.95 - 2.15 (17.86) - (7.78)
Sub-Account 2010 614,557 8.96 - 14.25 7,380,405 -- 1.10 - 2.05 4.65 - 5.96
(Commenced 5/3/2010)
MIST Met/Templeton 2011 4,276,073 11.74 - 12.02 51,093,268 6.86 1.30 - 2.20 (2.49) - (1.61)
International Bond 2010 2,982,596 12.04 - 12.22 36,302,425 0.51 1.30 - 2.20 11.07 - 12.08
Sub-Account 2009 775,327 10.84 - 10.90 8,438,524 -- 1.30 - 2.20 8.40 - 9.00
(Commenced 5/4/2009)
MIST MetLife Aggressive 2011 49,390,389 10.07 - 10.98 524,691,864 1.10 1.15 - 2.35 (7.96) - (6.85)
Strategy Sub-Account 2010 45,689,702 10.94 - 11.78 522,967,837 1.18 1.15 - 2.35 13.80 - 15.17
2009 41,343,573 9.62 - 10.23 412,402,731 -- 1.15 - 2.35 29.56 - 31.13
2008 39,565,727 7.42 - 7.80 302,274,534 3.60 1.15 - 2.35 (42.19) - (41.49)
2007 46,258,233 12.84 - 13.34 607,023,915 1.29 1.15 - 2.35 0.48 - 1.70
MIST MetLife Balanced Plus 2011 257,076,022 9.33 - 9.40 2,411,774,661 0.27 1.15 - 2.25 (6.68) - (6.00)
Sub-Account
(Commenced 5/2/2011)
MIST MetLife Balanced 2011 592,824,603 10.80 - 11.77 6,764,659,086 1.58 1.15 - 2.35 (3.98) - (2.82)
Strategy Sub-Account 2010 546,381,907 11.25 - 12.12 6,437,293,439 2.05 1.15 - 2.35 10.96 - 12.28
2009 458,932,798 10.14 - 10.79 4,832,135,577 -- 1.15 - 2.35 25.35 - 26.87
2008 406,068,266 8.09 - 8.50 3,383,789,930 4.75 1.15 - 2.35 (33.52) - (32.72)
2007 407,763,369 12.17 - 12.64 5,073,218,651 1.64 1.15 - 2.35 2.43 - 3.68
MIST MetLife Defensive 2011 186,262,512 11.33 - 12.48 2,228,739,665 2.22 1.00 - 2.35 (0.59) - 0.76
Strategy Sub-Account 2010 167,912,074 11.40 - 12.39 2,003,850,499 3.05 1.00 - 2.35 8.32 - 9.80
2009 134,240,318 10.52 - 11.28 1,466,386,791 2.86 1.00 - 2.35 14.50 - 21.50
2008 98,361,064 8.77 - 9.21 887,719,339 1.41 1.15 - 2.35 (22.50) - (21.56)
2007 51,959,475 11.31 - 11.75 600,410,325 1.89 1.15 - 2.35 3.45 - 4.70
MIST MetLife Growth 2011 446,977,194 10.46 - 11.40 4,926,470,881 1.54 1.15 - 2.35 (6.10) - (4.98)
Strategy Sub-Account 2010 473,161,406 11.14 - 12.00 5,512,372,206 1.71 1.15 - 2.35 12.81 - 14.17
2009 490,302,032 9.88 - 10.51 5,026,063,304 -- 1.15 - 2.35 27.08 - 28.61
2008 494,438,103 7.77 - 8.17 3,958,612,323 3.49 1.15 - 2.35 (39.32) - (38.58)
2007 481,475,567 12.81 - 13.30 6,304,660,461 1.10 1.15 - 2.35 2.26 - 3.50
MIST MetLife Moderate 2011 281,377,647 11.18 - 12.19 3,324,311,655 1.83 1.15 - 2.35 (2.43) - (1.26)
Strategy Sub-Account 2010 257,780,425 11.46 - 12.34 3,094,289,659 2.46 1.15 - 2.35 9.79 - 11.12
2009 201,975,022 10.44 - 11.11 2,188,428,006 3.18 1.15 - 2.35 23.16 - 24.65
2008 157,147,909 8.48 - 8.91 1,371,420,955 1.75 1.15 - 2.35 (28.14) - (27.26)
2007 132,930,004 11.79 - 12.25 1,602,068,224 1.93 1.15 - 2.35 3.73 - 4.99
MIST MFS Emerging Markets 2011 37,004,554 9.55 - 11.54 369,675,163 1.39 0.95 - 2.35 (20.59) - (19.48)
Equity Sub-Account 2010 29,287,659 12.03 - 14.53 365,169,255 0.97 0.95 - 2.35 20.79 - 22.49
2009 18,534,256 9.96 - 12.02 189,762,080 1.45 0.95 - 2.35 65.01 - 67.34
2008 9,820,617 6.03 - 7.28 60,422,758 1.29 0.95 - 2.35 (56.57) - (52.63)
2007 4,415,597 13.89 - 14.22 62,075,247 0.04 0.95 - 2.35 33.43 - 35.32
MIST MFS Research 2011 22,841,018 11.58 - 13.42 285,814,827 1.88 0.95 - 2.35 (12.79) - (11.56)
International Sub-Account 2010 22,399,698 13.27 - 15.17 318,521,626 1.70 0.95 - 2.35 8.83 - 10.35
2009 21,694,779 12.19 - 13.75 281,155,296 3.12 0.95 - 2.35 28.50 - 30.32
2008 20,463,384 9.48 - 10.55 204,675,511 1.89 0.95 - 2.35 (43.71) - (42.91)
2007 19,606,367 16.84 - 18.48 345,568,972 1.22 0.95 - 2.35 10.65 - 12.21
138
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
--------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
----------- ------------- ------------- ------------- ----------- -------------------
MIST Morgan Stanley Mid Cap 2011 8,735,505 1.88 - 16.63 109,412,403 0.56 0.89 - 2.30 (9.04) - (7.49)
Growth Sub-Account 2010 6,606,286 2.04 - 17.98 89,015,672 0.01 0.89 - 2.30 17.15 - 30.84
2009 5,166,934 9.84 - 11.09 54,290,087 -- 0.95 - 2.30 53.69 - 55.79
2008 4,031,107 6.40 - 7.12 27,227,267 1.21 0.95 - 2.30 (47.97) - (47.26)
2007 1,845,571 12.30 - 13.50 23,676,085 -- 0.95 - 2.30 20.66 - 22.31
MIST Oppenheimer Capital 2011 20,772,728 7.48 - 10.45 167,863,687 0.12 0.95 - 2.35 (3.67) - (2.10)
Appreciation Sub-Account 2010 23,613,830 7.76 - 10.67 196,389,755 0.46 0.95 - 2.35 6.86 - 8.42
2009 26,093,951 7.26 - 9.84 201,465,075 -- 0.95 - 2.35 40.37 - 42.38
2008 29,172,000 5.16 - 6.91 159,163,585 3.52 0.95 - 2.35 (47.20) - (46.42)
2007 34,634,000 9.77 - 12.90 354,882,609 0.01 0.95 - 2.35 11.62 - 13.20
MIST PIMCO Inflation 2011 63,087,877 13.90 - 15.36 936,595,819 1.62 1.20 - 2.35 8.56 - 9.82
Protected Bond Sub-Account 2010 52,467,468 12.81 - 13.99 711,162,874 2.23 1.20 - 2.35 5.26 - 6.48
2009 37,506,865 12.17 - 13.14 478,661,744 3.18 1.20 - 2.35 15.31 - 16.64
2008 23,243,826 10.55 - 11.26 254,891,679 3.71 1.20 - 2.35 (9.22) - (8.17)
2007 21,340,808 11.60 - 12.19 255,623,164 2.14 1.30 - 2.35 8.21 - 9.36
MIST PIMCO Total Return 2011 132,311,947 11.50 - 18.11 2,140,758,433 2.62 0.89 - 2.35 (0.31) - 2.51
Sub-Account 2010 111,149,390 11.27 - 17.67 1,761,602,464 3.20 0.89 - 2.35 5.65 - 7.45
2009 71,654,403 10.54 - 16.44 1,055,450,302 6.39 0.89 - 2.35 15.29 - 17.35
2008 43,564,435 9.03 - 14.01 542,563,802 3.71 0.89 - 2.35 (1.93) - (0.26)
2007 37,539,072 9.10 - 14.05 469,985,360 3.32 0.89 - 2.35 5.05 - 6.89
MIST Pioneer Fund 2011 9,480,402 9.11 - 19.29 168,467,083 1.11 0.95 - 2.30 (11.94) - (5.45)
Sub-Account 2010 5,977,317 16.24 - 20.40 112,914,666 0.78 0.95 - 2.30 13.47 - 15.12
2009 3,239,380 14.30 - 17.72 53,308,711 1.52 0.95 - 2.30 21.07 - 27.31
2008 1,227,336 11.81 - 14.44 16,447,869 0.83 0.95 - 2.30 (34.37) - (33.47)
2007 441,310 17.99 - 21.26 8,679,759 0.78 1.10 - 2.30 2.60 - 3.85
MIST Pioneer Strategic 2011 24,444,162 12.25 - 27.99 600,261,549 4.36 0.95 - 2.35 1.06 - 2.65
Income Sub-Account 2010 17,115,149 12.17 - 27.26 419,601,867 4.58 0.95 - 2.20 5.21 - 11.12
2009 10,957,582 11.11 - 24.54 251,000,578 4.72 0.95 - 2.15 23.08 - 31.83
2008 7,373,489 16.54 - 18.61 129,051,542 6.27 0.95 - 1.90 (12.43) - (11.59)
2007 4,979,963 18.89 - 21.05 98,174,413 0.56 0.95 - 1.90 4.63 - 5.63
MIST Pyramis Government 2011 45,618,019 10.69 - 10.77 490,473,351 0.89 1.15 - 2.25 6.96 - 7.75
Income Sub-Account
(Commenced 5/2/2011)
MIST Rainier Large Cap 2011 7,776,061 7.22 - 7.54 57,997,273 0.38 1.30 - 2.35 (6.06) - (5.08)
Equity Sub-Account 2010 5,826,308 7.72 - 7.95 45,894,091 0.42 1.30 - 2.20 12.87 - 13.90
(Commenced 11/12/2007) 2009 4,962,869 6.82 - 6.98 34,404,016 0.82 1.30 - 2.35 20.41 - 21.65
2008 4,139,663 5.67 - 5.74 23,654,112 -- 1.30 - 2.35 (43.16) - (42.56)
2007 640,297 9.97 - 9.99 6,390,092 0.09 1.30 - 2.20 1.90 - 2.03
MIST RCM Technology 2011 17,226,158 5.63 - 6.66 103,642,521 -- 0.89 - 2.35 (12.00) - (10.59)
Sub-Account 2010 16,174,288 6.39 - 7.45 109,729,016 -- 0.89 - 2.35 24.73 - 27.12
2009 13,832,826 5.12 - 5.86 74,614,703 -- 0.89 - 2.35 55.30 - 57.75
2008 10,849,282 3.29 - 3.72 37,389,860 13.67 0.89 - 2.35 (45.75) - (44.75)
2007 12,386,524 6.06 - 6.72 78,045,995 -- 0.89 - 2.35 28.45 - 30.50
139
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
---------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
----------- -------------- ------------- ------------- ----------- -------------------
MIST SSgA Growth and Income 2011 120,297,977 10.97 - 11.83 1,390,741,062 1.70 1.15 - 2.35 (1.29) - (0.09)
ETF Sub-Account 2010 85,827,962 11.20 - 11.84 995,772,752 1.05 1.15 - 2.20 9.80 - 10.96
(Commenced 11/10/2008) 2009 29,942,630 10.20 - 10.67 314,125,011 0.78 1.15 - 2.20 22.17 - 23.97
2008 312,145 8.39 - 8.60 2,651,130 -- 1.30 - 2.05 1.88 - 1.99
MIST SSgA Growth ETF 2011 37,984,453 10.24 - 11.04 409,132,829 1.56 1.15 - 2.35 (4.40) - (3.24)
Sub-Account 2010 29,136,066 10.71 - 11.41 325,453,346 1.35 1.15 - 2.35 11.50 - 12.85
(Commenced 11/10/2008) 2009 16,443,398 9.67 - 10.11 163,291,494 0.93 1.15 - 2.20 26.29 - 28.66
2008 190,893 7.69 - 7.88 1,489,531 -- 1.30 - 2.05 0.88 - 0.99
MIST T. Rowe Price Large 2011 13,446,503 24.76 - 82.60 507,039,092 0.70 0.89 - 2.35 (6.24) - (4.62)
Cap Value Sub-Account 2010 14,212,118 26.09 - 86.60 558,423,606 1.11 0.89 - 2.35 14.30 - 16.29
2009 14,942,501 22.55 - 74.47 502,483,411 2.30 0.89 - 2.35 15.64 - 17.62
2008 15,718,013 19.27 - 63.32 447,266,597 1.65 0.89 - 2.35 (37.82) - (36.76)
2007 18,116,672 30.63 - 100.12 822,332,309 0.94 0.89 - 2.35 1.30 - 7.97
MIST T. Rowe Price Mid Cap 2011 44,089,511 9.22 - 10.28 439,146,325 -- 1.30 - 2.35 (3.93) - (2.92)
Growth Sub-Account 2010 40,356,445 9.67 - 10.58 414,850,131 -- 1.30 - 2.35 24.72 - 26.05
2009 31,597,201 7.75 - 8.40 258,174,943 -- 1.30 - 2.35 42.11 - 43.59
2008 24,389,138 5.45 - 5.85 139,067,651 -- 1.30 - 2.35 (41.15) - (40.53)
2007 25,165,985 9.25 - 9.83 242,043,730 -- 1.30 - 2.35 14.89 - 16.11
MIST Third Avenue Small Cap 2011 18,611,699 14.67 - 17.11 290,532,427 1.10 0.89 - 2.35 (11.09) - (9.50)
Value Sub-Account 2010 18,793,984 16.49 - 18.91 327,520,477 1.17 0.89 - 2.35 17.11 - 19.08
2009 17,777,766 14.06 - 15.88 262,479,306 1.15 0.89 - 2.35 23.51 - 25.70
2008 16,437,324 11.38 - 12.63 194,917,296 0.76 0.89 - 2.35 (31.46) - (30.31)
2007 18,432,805 16.58 - 18.13 316,501,402 1.00 0.89 - 2.35 (5.29) - (3.66)
MIST Turner Mid Cap Growth 2011 6,415,135 12.30 - 13.33 83,512,450 -- 1.30 - 2.35 (9.61) - (8.65)
Sub-Account 2010 5,858,465 13.61 - 14.60 83,688,741 -- 1.30 - 2.35 24.21 - 25.51
2009 4,875,425 10.96 - 11.63 55,630,594 -- 1.30 - 2.35 43.76 - 45.27
2008 4,470,347 7.62 - 8.01 35,217,413 -- 1.30 - 2.35 (49.50) - (48.97)
2007 4,472,333 15.09 - 15.69 69,239,590 -- 1.30 - 2.35 21.25 - 22.54
MIST Van Kampen Comstock 2011 25,137,797 9.39 - 14.24 266,463,408 1.09 0.95 - 2.35 (3.76) - (2.39)
Sub-Account 2010 21,172,822 9.76 - 14.59 230,561,318 1.45 0.95 - 2.35 12.19 - 13.80
2009 16,791,760 8.70 - 12.82 161,042,507 1.11 0.95 - 2.35 23.63 - 30.57
2008 5,638,201 7.03 - 7.31 40,651,730 1.74 1.30 - 2.35 (37.41) - (36.74)
2007 5,330,717 11.24 - 11.56 60,993,695 1.34 1.30 - 2.35 (4.77) - (3.76)
MSF Artio International 2011 282,028 3.36 - 11.37 2,803,543 1.60 1.40 - 1.90 (21.63) - (20.99)
Stock Sub-Account 2010 318,412 4.26 - 14.47 3,979,701 1.41 1.40 - 1.90 4.85 - 5.74
2009 337,655 4.02 - 13.77 3,955,132 0.42 1.40 - 1.90 19.59 - 20.44
2008 380,684 3.34 - 11.48 3,539,311 2.93 1.40 - 1.90 (45.29) - (44.91)
2007 398,333 6.06 - 20.94 6,422,071 0.76 1.40 - 1.90 7.99 - 8.79
MSF Barclays Capital Aggregate 2011 8,083,366 1.73 - 18.28 130,173,979 3.22 0.89 - 2.25 4.77 - 6.56
Bond Index Sub-Account 2010 5,646,137 14.02 - 17.15 86,674,964 2.64 0.89 - 2.25 3.30 - 5.11
2009 2,010,364 13.73 - 16.32 29,893,966 3.64 0.89 - 2.15 2.27 - 4.24
2008 527,803 14.94 - 15.65 7,896,020 4.75 0.89 - 1.35 4.56 - 5.05
2007 436,992 14.29 - 14.90 6,246,008 4.31 0.89 - 1.35 5.43 - 5.92
140
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
---------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
---------- ----------------- ----------- ------------- ----------- -------------------
MSF BlackRock Bond Income 2011 953,075 44.15 - 68.69 49,538,985 3.84 0.89 - 2.30 4.00 - 5.62
Sub-Account 2010 952,834 42.45 - 65.04 47,336,145 3.77 0.89 - 2.30 5.72 - 7.38
2009 911,026 40.15 - 60.57 42,636,576 6.49 0.89 - 2.30 6.81 - 8.50
2008 748,389 37.59 - 55.83 32,695,795 5.04 0.89 - 2.30 (5.77) - (4.29)
2007 654,278 39.89 - 58.33 30,160,113 2.44 0.89 - 2.30 3.70 - 5.35
MSF BlackRock Large Cap 2011 252,494 11.44 - 11.96 2,890,664 1.16 0.89 - 1.35 0.97 - 1.44
Value Sub-Account 2010 253,453 11.33 - 11.79 2,872,585 1.09 0.89 - 1.35 7.75 - 8.26
2009 264,703 10.51 - 10.89 2,783,413 1.58 0.89 - 1.35 9.73 - 10.22
2008 257,240 9.58 - 9.88 2,464,834 0.86 0.89 - 1.35 (35.78) - (35.48)
2007 251,656 14.92 - 15.31 3,754,451 0.91 0.89 - 1.35 2.00 - 2.47
MSF BlackRock Legacy Large 2011 814,200 10.75 - 32.23 11,348,650 0.17 0.89 - 2.30 (11.01) - (9.75)
Cap Growth Sub-Account 2010 601,185 12.06 - 35.71 9,563,155 0.22 0.89 - 2.30 17.10 - 18.76
2009 612,808 10.28 - 30.07 8,419,085 0.15 0.89 - 2.30 28.77 - 35.57
2008 49,555 20.78 - 22.18 1,031,800 0.43 0.89 - 1.35 (37.36) - (37.07)
2007 31,453 33.18 - 35.25 1,046,603 0.17 0.89 - 1.35 17.12 - 17.66
MSF BlackRock Money Market 2011 59,067,302 9.55 - 25.84 633,625,012 -- 0.95 - 2.35 (2.32) - (0.94)
Sub-Account 2010 51,015,018 9.77 - 26.15 553,885,805 -- 0.95 - 2.35 (2.32) - (0.64)
2009 54,211,009 9.99 - 26.46 576,532,284 0.25 1.00 - 2.35 (2.07) - (0.48)
2008 55,686,362 10.19 - 26.67 595,304,545 2.42 1.15 - 2.35 0.21 - 1.42
2007 22,951,175 10.16 - 25.09 241,601,183 4.74 1.15 - 2.35 2.37 - 3.61
MSF Davis Venture Value 2011 48,368,185 11.12 - 35.45 599,153,697 1.01 0.89 - 2.35 (11.86) - (4.88)
Sub-Account 2010 46,415,423 11.87 - 37.27 606,785,200 0.87 0.89 - 2.35 9.22 - 11.01
2009 41,123,511 10.86 - 33.58 487,864,492 1.37 0.89 - 2.35 28.77 - 30.82
2008 37,459,395 8.43 - 25.67 339,962,645 1.19 0.89 - 2.35 (40.87) - (38.31)
2007 39,936,774 14.23 - 42.70 599,873,294 0.67 0.89 - 2.35 1.99 - 3.65
MSF FI Value Leaders 2011 289,554 14.65 - 16.57 4,601,785 1.01 1.50 - 2.30 (8.38) - (7.64)
Sub-Account 2010 305,583 15.99 - 17.94 5,267,530 1.44 1.50 - 2.30 11.85 - 12.75
2009 265,682 14.30 - 15.91 4,072,835 2.66 1.50 - 2.30 18.94 - 19.90
2008 251,266 12.02 - 13.27 3,223,563 1.80 1.50 - 2.30 (40.40) - (39.92)
2007 211,868 20.17 - 22.08 4,542,761 0.69 1.50 - 2.30 1.71 - 2.53
MSF Jennison Growth 2011 20,877,221 2.55 - 12.29 248,172,110 0.06 1.30 - 2.35 (2.11) - (0.86)
Sub-Account 2010 20,230,170 2.57 - 12.42 243,817,657 0.38 1.30 - 2.35 8.74 - 10.07
2009 17,375,446 2.33 - 11.31 190,651,501 -- 1.30 - 2.35 36.32 - 38.02
2008 14,090,231 1.69 - 8.21 112,407,198 2.13 1.30 - 2.35 (38.03) - (37.13)
2007 14,275,390 2.70 - 13.10 182,244,421 0.19 1.30 - 2.35 8.79 - 10.11
MSF Loomis Sayles Small Cap 2011 310,374 30.16 - 36.63 10,317,247 -- 1.20 - 2.30 (1.94) - (0.86)
Core Sub-Account 2010 214,307 30.76 - 36.95 7,224,075 -- 1.20 - 2.30 24.32 - 25.69
(Commenced 07/14/2008) 2009 73,444 25.33 - 29.40 1,990,671 -- 1.20 - 2.15 27.16 - 28.38
2008 926 21.12 - 22.90 20,162 -- 1.20 - 1.75 (25.82) - (25.62)
MSF Met/Artisan Mid Cap 2011 14,599,235 13.33 - 36.59 215,514,020 0.79 0.89 - 2.35 4.02 - 5.81
Value Sub-Account 2010 15,163,945 12.80 - 34.58 213,857,206 0.59 0.89 - 2.35 12.09 - 14.02
2009 15,659,935 11.41 - 30.33 195,923,686 0.84 0.89 - 2.35 37.92 - 40.31
2008 16,302,851 8.27 - 21.61 146,716,944 0.06 0.89 - 2.35 (47.39) - (46.49)
2007 18,551,932 15.69 - 40.39 316,048,072 0.35 0.89 - 2.35 (9.25) - (7.67)
141
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
---------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
---------- ----------------- ----------- ------------- ----------- -------------------
MSF Met/Dimensional 2011 3,336,605 13.82 - 14.29 47,225,164 1.94 1.30 - 2.35 (18.19) - (17.33)
International Small Company 2010 2,082,274 16.89 - 17.28 35,750,236 1.30 1.30 - 2.35 19.74 - 21.01
Sub-Account 2009 1,225,665 14.11 - 14.28 17,436,960 -- 1.30 - 2.35 39.40 - 40.87
(Commenced 11/10/2008) 2008 12,651 10.12 - 10.14 128,139 -- 1.30 - 2.05 0.61 - 0.71
MSF MetLife Conservative 2011 850,770 11.86 - 12.35 10,395,348 2.37 1.55 - 2.15 1.06 - 1.66
Allocation Sub-Account 2010 830,223 11.74 - 12.15 9,998,191 4.06 1.55 - 2.15 7.71 - 8.36
2009 967,744 10.85 - 11.21 10,771,428 3.20 1.55 - 2.25 17.85 - 18.68
2008 602,771 9.24 - 9.44 5,653,460 0.85 1.55 - 2.15 (16.21) - (15.71)
2007 242,633 11.07 - 11.20 2,702,849 -- 1.55 - 2.00 3.47 - 3.94
MSF MetLife Conservative to 2011 608,383 11.48 - 11.91 7,143,945 2.14 1.55 - 2.10 (1.04) - (0.50)
Moderate Allocation 2010 782,775 11.60 - 11.97 9,257,856 3.38 1.55 - 2.10 9.21 - 9.81
Sub-Account 2009 836,071 10.62 - 10.90 9,016,185 3.07 1.55 - 2.10 21.11 - 21.78
2008 664,967 8.77 - 8.95 5,902,351 1.05 1.55 - 2.10 (23.23) - (22.81)
2007 392,909 11.42 - 11.59 4,529,792 -- 1.55 - 2.10 2.62 - 3.19
MSF MetLife Mid Cap Stock 2011 4,708,991 1.73 - 18.33 77,805,929 0.70 0.89 - 2.35 (4.50) - (2.76)
Index Sub-Account 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
2008 999,722 10.67 - 11.09 10,679,425 1.39 0.89 - 1.35 (37.03) - (36.74)
2007 886,564 16.94 - 17.54 15,036,423 0.79 0.89 - 1.35 6.33 - 6.82
MSF MetLife Moderate 2011 3,930,913 10.88 - 11.40 44,282,730 1.52 1.55 - 2.25 (3.55) - (2.89)
Allocation Sub-Account 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
2008 4,259,716 8.24 - 8.46 35,786,827 0.77 1.55 - 2.25 (30.23) - (29.73)
2007 3,351,654 11.81 - 12.04 40,157,114 0.01 1.55 - 2.25 2.01 - 2.73
MSF MetLife Moderate to 2011 4,632,179 10.23 - 10.65 48,721,974 1.43 1.55 - 2.15 (5.81) - (5.25)
Aggressive Allocation 2010 5,194,016 10.86 - 11.24 57,766,976 2.14 1.55 - 2.15 12.25 - 12.94
Sub-Account 2009 5,328,120 9.67 - 9.95 52,562,753 2.53 1.55 - 2.15 26.35 - 27.11
2008 5,745,796 7.65 - 7.83 44,674,622 0.61 1.55 - 2.25 (36.57) - (36.12)
2007 5,047,763 12.02 - 12.25 61,541,186 0.02 1.55 - 2.25 1.53 - 2.24
MSF MetLife Stock Index 2011 25,347,914 4.22 - 46.18 355,993,780 1.55 0.89 - 2.90 (1.15) - 0.94
Sub-Account 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
2008 15,678,062 8.00 - 32.13 164,166,647 1.80 0.89 - 2.35 (38.72) - (37.66)
2007 17,885,006 13.05 - 51.54 299,989,839 0.90 0.89 - 2.35 2.52 - 4.30
MSF MFS Total Return 2011 826,212 38.00 - 54.49 36,390,818 2.68 0.89 - 2.15 0.04 - 1.51
Sub-Account 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
2008 977,440 30.49 - 41.85 34,110,264 3.52 0.89 - 2.30 (24.08) - (15.13)
2007 1,100,140 38.88 - 54.24 50,198,332 1.84 0.89 - 2.30 1.79 - 3.45
MSF MFS Value Sub-Account 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
2008 2,080,451 9.41 - 11.38 22,207,620 1.81 0.89 - 2.30 (30.55) - (21.82)
2007 1,601,257 14.33 - 17.03 25,634,063 0.27 0.89 - 2.30 (5.09) - 6.03
142
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
---------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
---------- ----------------- ----------- ------------- ----------- -------------------
MSF Morgan Stanley EAFE 2011 6,390,970 1.15 - 12.29 69,159,210 2.23 0.89 - 2.15 (14.50) - (13.28)
Index Sub-Account 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
2008 1,129,559 9.89 - 10.36 11,178,515 2.94 0.89 - 1.35 (42.86) - (42.60)
2007 1,079,041 17.30 - 18.05 18,684,621 1.93 0.89 - 1.35 9.32 - 9.83
MSF Neuberger Berman 2011 647,811 15.96 - 18.50 11,266,993 0.73 0.89 - 1.95 (7.38) - 4.87
Genesis Sub-Account 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
2008 587,465 12.56 - 13.06 7,377,709 0.53 0.89 - 1.35 (39.23) - (38.95)
2007 625,394 20.66 - 21.39 12,924,658 0.30 0.89 - 1.35 (4.75) - (4.31)
MSF Neuberger Berman Mid 2011 176,128 20.45 - 23.63 3,882,043 0.53 1.20 - 2.30 (8.79) - (7.79)
Cap Value Sub-Account 2010 82,451 22.42 - 25.62 1,984,636 0.22 1.20 - 2.30 23.19 - 24.55
(Commenced 7/14/2008) 2009 11,335 18.92 - 20.57 225,554 0.60 1.20 - 1.95 44.89 - 45.97
2008 1,374 13.33 - 14.09 18,573 -- 1.20 - 1.75 (40.64) - (40.49)
MSF Oppenheimer Global 2011 559,531 15.55 - 17.64 9,330,001 1.79 0.95 - 1.95 (10.17) - (9.41)
Equity Sub-Account 2010 608,969 17.31 - 19.88 11,272,119 1.34 0.95 - 1.95 13.69 - 14.83
2009 672,213 15.23 - 17.32 10,903,654 2.29 0.95 - 1.95 37.10 - 38.48
2008 671,786 11.17 - 12.50 7,900,093 1.77 0.95 - 1.90 (41.68) - (41.12)
2007 501,067 19.16 - 21.24 9,987,034 0.71 0.95 - 1.90 4.25 - 5.25
MSF Russell 2000 Index 2011 3,926,223 1.75 - 18.93 64,081,468 0.84 0.89 - 2.35 (6.46) - (4.95)
Sub-Account 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
2008 478,053 4.57 - 12.68 5,298,056 1.35 0.89 - 1.40 (34.43) - (34.05)
2007 481,904 6.97 - 19.23 8,015,832 0.93 0.89 - 1.40 (2.89) - (2.39)
MSF T. Rowe Price Large Cap 2011 44,809 30.91 - 33.42 1,465,621 -- 1.50 - 1.90 (3.19) - (2.80)
Growth Sub-Account 2010 40,496 31.93 - 34.38 1,365,647 0.07 1.50 - 1.90 14.55 - 15.01
(Commenced 4/28/2008) 2009 39,614 27.87 - 29.90 1,161,818 0.32 1.50 - 1.90 40.35 - 40.91
2008 27,135 19.86 - 21.22 565,146 -- 1.50 - 1.90 (44.05) - (43.82)
MSF T. Rowe Price Small Cap 2011 417,381 16.23 - 21.67 7,500,142 -- 0.89 - 2.15 (0.70) - 0.87
Growth Sub-Account 2010 465,332 16.01 - 21.48 8,285,648 -- 0.89 - 2.30 31.60 - 33.71
2009 481,022 12.16 - 16.06 6,406,764 0.12 0.89 - 2.30 35.49 - 37.73
2008 332,266 8.98 - 11.66 3,243,702 -- 0.89 - 2.30 (37.08) - (34.32)
2007 77,656 16.25 - 18.44 1,279,290 -- 0.89 - 1.40 8.32 - 8.88
MSF Van Eck Global Natural 2011 6,910,683 15.07 - 15.51 106,332,935 1.10 1.30 - 2.20 (18.49) - (17.75)
Resources Sub-Account 2010 3,967,225 18.49 - 18.86 74,371,723 0.25 1.30 - 2.20 26.22 - 27.36
(Commenced 5/4/2009) 2009 1,195,095 14.65 - 14.80 17,635,926 -- 1.30 - 2.20 35.00 - 35.82
MSF Western Asset 2011 16,038,241 15.32 - 19.49 285,529,978 1.20 0.95 - 2.35 2.83 - 4.28
Management U.S. Government 2010 12,558,586 14.90 - 18.69 214,907,918 2.24 0.95 - 2.35 3.04 - 4.50
Sub-Account 2009 8,573,371 14.46 - 17.89 140,925,866 4.06 0.95 - 2.35 1.67 - 3.10
2008 5,356,593 14.23 - 17.35 85,351,962 3.54 0.95 - 2.35 (2.85) - (1.48)
2007 2,760,203 14.93 - 17.61 44,641,935 2.32 0.95 - 2.30 1.76 - 3.04
Neuberger Berman Genesis 2011 474 15.72 7,443 0.84 0.89 3.67
Sub-Account 2010 571 15.16 8,663 -- 0.89 20.30
2009 697 12.60 8,785 -- 0.89 25.13
2008 809 10.07 8,146 3.68 0.89 (33.45)
2007 927 15.13 14,022 0.14 0.89 20.72
143
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONTINUED)
8. FINANCIAL HIGHLIGHTS -- (CONTINUED)
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
-------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
--------- ----------------- ---------- ------------- ----------- -------------------
Oppenheimer VA Core Bond 2011 1,878 5.41 10,150 5.76 1.40 6.77
Sub-Account 2010 1,952 5.06 9,885 4.81 1.40 9.87
2009 12,533 4.61 57,756 -- 1.40 8.09
2008 22,518 4.26 96,005 4.53 1.40 (39.90)
2007 37,290 7.09 264,529 5.54 1.40 2.93
Oppenheimer VA Global 2011 443 9.20 4,075 3.19 1.40 (0.55)
Strategic Income Sub-Account 2010 443 9.25 4,097 16.19 1.40 13.38
2009 1,786 8.16 14,575 0.53 1.40 17.17
2008 1,903 6.97 13,254 5.21 1.40 (15.40)
2007 5,661 8.23 46,614 3.59 1.40 8.16
Oppenheimer VA Main Street 2011 4,964,464 9.98 - 17.13 81,494,321 0.36 0.95 - 1.75 (4.07) - (3.30)
Small- & Mid-Cap 2010 4,127,208 10.35 - 17.72 70,331,777 0.37 0.95 - 1.75 20.92 - 21.90
Sub-Account 2009 3,126,840 8.51 - 14.54 43,881,910 0.52 0.95 - 1.75 34.52 - 35.58
2008 1,863,546 6.29 - 10.72 19,372,328 0.18 0.95 - 1.75 (39.08) - (38.59)
2007 492,857 10.26 - 17.46 8,314,186 0.03 0.95 - 1.75 (13.41) - (2.47)
Oppenheimer VA Main Street 2011 22,109 4.85 107,300 1.27 1.40 (1.40)
Sub-Account 2010 24,227 4.92 119,249 1.11 1.40 14.49
2009 28,105 4.30 120,826 1.94 1.40 26.52
2008 31,897 3.40 108,399 1.52 1.40 (39.33)
2007 45,428 5.60 254,460 1.11 1.40 2.96
Oppenheimer VA Money 2011 20,177 5.69 114,709 0.01 1.40 (1.37)
Sub-Account 2010 20,177 5.76 116,310 0.03 1.40 (1.37)
2009 20,177 5.84 117,917 0.35 1.40 (1.07)
2008 25,333 5.91 149,653 2.83 1.40 1.34
2007 28,881 5.83 168,352 4.98 1.40 3.52
Pioneer VCT Cullen Value 2011 238,409 8.34 - 8.68 2,036,161 0.72 1.20 - 1.95 (5.53) - (4.82)
Sub-Account 2010 243,744 8.83 - 9.11 2,192,843 0.58 1.20 - 1.95 7.15 - 7.96
(Commenced 7/14/2008) 2009 223,412 8.19 - 8.44 1,867,892 0.70 1.20 - 2.15 13.26 - 14.34
2008 21,316 7.29 - 7.38 156,566 -- 1.20 - 1.75 (21.91) - (21.71)
Pioneer VCT Emerging 2011 48,427 14.01 - 15.29 705,700 -- 1.20 - 1.95 (25.09) - (24.53)
Markets Sub-Account 2010 62,764 18.70 - 20.26 1,212,537 0.32 1.20 - 1.95 13.38 - 14.23
(Commenced 7/14/2008) 2009 60,035 16.18 - 17.74 1,020,914 0.63 1.20 - 2.15 70.32 - 71.96
2008 4,387 9.83 - 10.32 43,804 -- 1.20 - 1.75 (50.82) - (50.69)
Pioneer VCT Equity Income 2011 17,862 19.96 - 21.90 371,272 2.00 1.20 - 1.95 3.73 - 4.51
Sub-Account 2010 18,868 19.24 - 20.95 375,754 2.07 1.20 - 1.95 16.93 - 17.81
(Commenced 7/14/2008) 2009 20,833 16.12 - 17.79 354,460 3.38 1.20 - 2.15 11.47 - 12.53
2008 2,134 15.01 - 15.22 32,445 0.69 1.60 - 1.75 (22.10) - (22.05)
Pioneer VCT Ibbotson Growth 2011 1,225,572 14.18 - 14.93 17,736,364 1.94 1.20 - 1.95 (5.14) - (4.42)
Allocation Sub-Account 2010 1,275,136 14.95 - 15.62 19,386,421 1.88 1.20 - 1.95 12.55 - 13.39
(Commenced 7/14/2008) 2009 1,257,274 13.28 - 13.78 16,934,322 2.87 1.20 - 1.95 30.11 - 31.09
2008 346,884 10.21 - 10.51 3,587,235 -- 1.20 - 1.95 (27.48) - (27.22)
Pioneer VCT Ibbotson Moderate 2011 1,795,010 13.82 - 14.81 25,968,930 2.49 1.20 - 2.20 (4.21) - (3.25)
Allocation Sub-Account 2010 1,833,743 14.43 - 15.31 27,517,066 2.53 1.20 - 2.20 11.44 - 12.56
(Commenced 7/14/2008) 2009 1,818,031 12.95 - 13.60 24,317,338 3.10 1.20 - 2.20 28.59 - 29.89
2008 109,195 10.23 - 10.47 1,127,161 -- 1.20 - 1.80 (24.71) - (24.50)
144
METLIFE INVESTORS USA SEPARATE ACCOUNT A
OF METLIFE INVESTORS USA INSURANCE COMPANY
NOTES TO THE FINANCIAL STATEMENTS -- (CONCLUDED)
8. FINANCIAL HIGHLIGHTS -- (CONCLUDED)
[Enlarge/Download Table]
AS OF DECEMBER 31 FOR THE YEAR ENDED DECEMBER 31
-------------------------------------- ---------------------------------------------
EXPENSE(2) TOTAL(3)
UNIT VALUE INVESTMENT(1) RATIO RETURN
LOWEST TO NET INCOME LOWEST TO LOWEST TO
UNITS HIGHEST ($) ASSETS ($) RATIO (%) HIGHEST (%) HIGHEST (%)
--------- ----------------- ---------- ------------- ----------- -------------------
Pioneer VCT Mid Cap Value 2011 1,688,831 26.60 - 31.48 49,145,077 0.64 0.95 - 1.95 (7.66) - (6.73)
Sub-Account 2010 1,493,349 28.81 - 33.76 46,621,818 0.87 0.95 - 1.95 15.62 - 16.78
2009 1,309,529 24.92 - 28.91 35,037,503 1.29 0.95 - 1.95 22.85 - 24.08
2008 1,105,223 20.42 - 23.30 23,891,796 0.87 0.95 - 1.90 (35.01) - (34.39)
2007 813,072 31.43 - 35.50 26,728,784 0.54 0.95 - 1.90 3.35 - 4.34
Pioneer VCT Real Estate 2011 12,968 18.70 - 20.38 251,847 2.24 1.20 - 1.95 7.64 - 8.45
Shares Sub-Account 2010 12,983 17.38 - 18.80 234,208 2.42 1.20 - 1.95 26.06 - 27.01
(Commenced 7/14/2008) 2009 16,034 13.78 - 14.80 228,918 4.81 1.20 - 1.95 29.02 - 29.98
2008 3,001 10.87 - 11.38 33,133 1.71 1.20 - 1.75 (32.64) - (32.47)
T. Rowe Price Growth Stock 2011 73,401 81.96 6,015,937 0.02 0.89 (1.85)
Sub-Account 2010 85,875 83.50 7,170,858 0.06 0.89 15.89
2009 97,059 72.05 6,993,261 0.21 0.89 41.98
2008 104,973 50.75 5,327,165 0.40 0.89 (42.77)
2007 118,255 88.67 10,486,221 0.60 0.89 9.38
T. Rowe Price International 2011 59,337 11.89 705,529 1.20 0.89 (13.11)
Stock Sub-Account 2010 68,117 13.68 932,126 1.13 0.89 13.46
2009 72,797 12.06 877,970 2.49 0.89 50.86
2008 76,425 7.99 610,995 1.51 0.89 (48.48)
2007 87,971 15.52 1,365,106 1.62 0.89 12.42
T. Rowe Price Prime Reserve 2011 54,384 17.91 973,756 0.01 0.89 (0.87)
Sub-Account 2010 70,013 18.06 1,264,618 0.01 0.89 (0.87)
2009 76,856 18.22 1,400,475 0.22 0.89 (0.70)
2008 120,897 18.35 2,218,473 2.47 0.89 1.64
2007 96,955 18.05 1,750,411 4.77 0.89 3.94
UIF U.S. Real Estate 2011 2,367,197 24.43 - 51.96 76,564,905 0.85 0.95 - 1.90 3.93 - 4.92
Sub-Account 2010 2,327,750 23.50 - 49.52 68,963,648 2.15 0.95 - 1.90 27.52 - 28.73
2009 2,542,094 18.43 - 38.47 56,466,102 3.31 0.95 - 1.90 25.93 - 27.14
2008 2,248,952 14.64 - 30.26 38,153,749 3.39 0.95 - 1.90 (39.07) - (38.49)
2007 2,043,530 24.02 - 49.19 52,908,525 2.27 0.95 - 1.90 (18.64) - (17.86)
(1) These amounts represent the dividends, excluding distributions of capital
gains, received by the Sub-Account from the underlying portfolio, series, or
fund, net of management fees assessed by the fund manager, divided by the
average net assets. These ratios exclude those expenses, such as mortality and
expense risk charges, that are assessed against contract owner accounts either
through reductions in the unit values or the redemption of units. The
recognition of investment income by the Sub-Account is affected by the timing
of the declaration of dividends by the underlying portfolio, series, or fund in
which the Sub-Account invests.
(2) These amounts represent annualized contract expenses of each of the
applicable Sub-Accounts, consisting primarily of mortality and expense risk
charges, for each period indicated. The ratios include only those expenses that
result in a direct reduction to unit values. Charges made directly to contract
owner accounts through the redemption of units and expenses of the underlying
portfolio, series, or fund have been excluded.
(3) These amounts represent the total return for the period indicated,
including changes in the value of the underlying portfolio, series, or fund,
and expenses assessed through the reduction of unit values. These ratios do
not include any expenses assessed through the redemption of units. The total
return is calculated for each period indicated or from the effective date
through the end of the reporting period. The total return is presented as a
range of minimum to maximum returns, based on minimum and maximum returns
within each product grouping of the applicable Sub-Account.
145
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METLIFE INVESTORS USA INSURANCE COMPANY
Consolidated Financial Statements
As of December 31, 2011 and 2010 and for the Years Ended December 31, 2011,
2010 and 2009 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 balance sheets of MetLife
Investors USA Insurance Company and its subsidiary (an indirect wholly-owned
subsidiary of MetLife, Inc.) (the "Company") as of December 31, 2011 and 2010,
and the related consolidated statements of operations, stockholder's equity,
and cash flows for each of the three years in the period ended December 31,
2011. These consolidated financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.
We conducted our audits in accordance with 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 of material misstatement. An audit
includes consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
Company's internal control over financial reporting. Accordingly, we express no
such opinion. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the consolidated financial
statements, assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such consolidated financial statements present fairly, in all
material respects, the financial position of MetLife Investors USA Insurance
Company and its subsidiary as of December 31, 2011 and 2010, and the results of
their operations and their cash flows for each of the three years in the period
ended December 31, 2011, in conformity with accounting principles generally
accepted in the United States of America.
As discussed in Note 1, the Company changed its method of accounting for the
recognition and presentation of other-than-temporary impairment losses for
certain investments as required by accounting guidance adopted on April 1, 2009.
/s/ DELOITTE & TOUCHE LLP
Certified Public Accountants
Tampa, Florida
April 5, 2012
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2011 AND 2010
(IN MILLIONS, EXCEPT SHARE AND PER SHARE DATA)
[Enlarge/Download Table]
2011 2010
-------- --------
ASSETS
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $9,405 and
$8,350, respectively)............................................................................. $ 10,457 $ 8,676
Equity securities available-for-sale, at estimated fair value (cost: $2 and $3, respectively)...... 2 3
Mortgage loans (net of valuation allowances of $11 and $12, respectively).......................... 1,508 1,175
Policy loans....................................................................................... 102 64
Real estate joint ventures......................................................................... 30 30
Other limited partnership interests................................................................ 535 456
Short-term investments, principally at estimated fair value........................................ 779 113
Other invested assets, principally at estimated fair value......................................... 606 215
-------- --------
Total investments................................................................................ 14,019 10,732
Cash and cash equivalents............................................................................ 108 240
Accrued investment income............................................................................ 120 105
Premiums, reinsurance and other receivables.......................................................... 12,679 9,778
Deferred policy acquisition costs.................................................................... 3,542 2,965
Current income tax recoverable....................................................................... 83 25
Other assets......................................................................................... 739 728
Separate account assets.............................................................................. 56,820 42,435
-------- --------
Total assets..................................................................................... $ 88,110 $ 67,008
======== ========
LIABILITIES AND STOCKHOLDER'S EQUITY
LIABILITIES
Future policy benefits............................................................................... $ 3,085 $ 2,092
Policyholder account balances........................................................................ 13,773 11,197
Other policy-related balances........................................................................ 2,449 2,120
Payables for collateral under securities loaned and other transactions............................... 1,672 1,246
Long-term debt....................................................................................... 42 45
Deferred income tax liability........................................................................ 1,140 580
Other liabilities.................................................................................... 4,314 3,601
Separate account liabilities......................................................................... 56,820 42,435
-------- --------
Total liabilities................................................................................ 83,295 63,316
-------- --------
CONTINGENCIES, COMMITMENTS AND GUARANTEES (NOTE 10)
STOCKHOLDER'S EQUITY
Preferred stock, par value $1.00 per share; 200,000 shares authorized, issued and outstanding........ -- --
Common stock, par value $200.00 per share; 15,000 shares authorized; 11,000 shares issued and
outstanding......................................................................................... 2 2
Additional paid-in capital........................................................................... 2,520 2,520
Retained earnings.................................................................................... 1,604 1,063
Accumulated other comprehensive income (loss)........................................................ 689 107
-------- --------
Total stockholder's equity....................................................................... 4,815 3,692
-------- --------
Total liabilities and stockholder's equity....................................................... $ 88,110 $ 67,008
======== ========
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, 2011, 2010 AND 2009
(IN MILLIONS)
[Enlarge/Download Table]
2011 2010 2009
------- ------- -------
REVENUES
Premiums...................................................................... $ 647 $ 357 $ 393
Universal life and investment-type product policy fees........................ 1,288 991 745
Net investment income......................................................... 586 520 349
Other revenues................................................................ 314 302 237
Net investment gains (losses):
Other-than-temporary impairments on fixed maturity securities................ -- (9) (18)
Other-than-temporary impairments on fixed maturity securities transferred to
other comprehensive income (loss).......................................... (2) 5 5
Other net investment gains (losses).......................................... (5) 19 (11)
------- ------- -------
Total net investment gains (losses)........................................ (7) 15 (24)
Net derivative gains (losses)................................................. 701 115 (603)
------- ------- -------
Total revenues........................................................... 3,529 2,300 1,097
------- ------- -------
EXPENSES
Policyholder benefits and claims.............................................. 779 486 457
Interest credited to policyholder account balances............................ 424 413 409
Other expenses................................................................ 1,582 1,024 613
------- ------- -------
Total expenses........................................................... 2,785 1,923 1,479
------- ------- -------
Income (loss) before provision for income tax................................. 744 377 (382)
Provision for income tax expense (benefit).................................... 203 85 (185)
------- ------- -------
Net income (loss)............................................................. $ 541 $ 292 $ (197)
======= ======= =======
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
3
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009
(IN MILLIONS)
[Enlarge/Download Table]
ACCUMULATED OTHER
COMPREHENSIVE INCOME (LOSS)
-------------------------------------
NET FOREIGN
ADDITIONAL UNREALIZED OTHER-THAN CURRENCY TOTAL
PREFERRED COMMON PAID-IN RETAINED INVESTMENT TEMPORARY TRANSLATION STOCKHOLDER'S
STOCK STOCK CAPITAL EARNINGS GAINS (LOSSES) IMPAIRMENTS ADJUSTMENTS EQUITY
--------- ------ ---------- -------- -------------- ----------- ----------- -------------
Balance at January 1, 2009.......... $ -- $ 2 $ 1,945 $ 968 $ (274) $ -- $ -- $ 2,641
Capital contribution from MetLife
Insurance Company of Connecticut... 575 575
Comprehensive income (loss):
Net income (loss).................. (197) (197)
Other comprehensive income (loss):
Unrealized gains (losses) on
derivative instruments, net of
income tax...................... 1 1
Unrealized investment gains
(losses), net of related
offsets and income tax.......... 240 (2) 238
----------
Other comprehensive income
(loss).......................... 239
----------
Comprehensive income (loss)........ 42
----- ---- -------- -------- ------- ----- ----- ----------
Balance at December 31, 2009........ -- 2 2,520 771 (33) (2) -- 3,258
Comprehensive income (loss):
Net income (loss).................. 292 292
Other comprehensive income (loss):
Unrealized gains (losses) on
derivative instruments, net of
income tax...................... (47) (47)
Unrealized investment gains
(losses), net of related
offsets and income tax.......... 190 (1) 189
----------
Other comprehensive income
(loss).......................... 142
----------
Comprehensive income (loss)........ 434
----- ---- -------- -------- ------- ----- ----- ----------
Balance at December 31, 2010........ -- 2 2,520 1,063 110 (3) -- 3,692
Comprehensive income (loss):
Net income (loss).................. 541 541
Other comprehensive income (loss):
Unrealized gains (losses) on
derivative instruments, net of
income tax...................... 129 129
Unrealized investment gains
(losses), net of related
offsets and income tax.......... 455 (1) 454
Foreign currency translation
adjustments, net of income tax.. (1) (1)
----------
Other comprehensive income
(loss).......................... 582
----------
Comprehensive income (loss)........ 1,123
----- ---- -------- -------- ------- ----- ----- ----------
Balance at December 31, 2011........ $ -- $ 2 $ 2,520 $ 1,604 $ 694 $ (4) $ (1) $ 4,815
===== ==== ======== ======== ======= ===== ===== ==========
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
4
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009
(IN MILLIONS)
[Enlarge/Download Table]
2011 2010 2009
-------- -------- --------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss).................................................................................. $ 541 $ 292 $ (197)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization expenses........................................................... 20 23 15
Amortization of premiums and accretion of discounts associated with investments, net............. (45) (28) (25)
(Gains) losses on investments and derivatives, net............................................... (802) (233) 627
(Income) loss from equity method investments, net of dividends or distributions.................. (2) (57) 3
Interest credited to policyholder account balances............................................... 424 413 409
Universal life and investment-type product policy fees........................................... (1,288) (991) (745)
Change in accrued investment income.............................................................. (14) (21) (30)
Change in premiums, reinsurance and other receivables............................................ (710) (2,560) (1,694)
Change in deferred policy acquisition costs, net................................................. (578) (457) (531)
Change in income tax recoverable (payable)....................................................... 188 61 (42)
Change in other assets........................................................................... 1,058 711 275
Change in insurance-related liabilities and policy-related balances.............................. 1,299 971 753
Change in other liabilities...................................................................... 363 2,079 (109)
Other, net....................................................................................... -- 1 --
-------- -------- --------
Net cash provided by (used in) operating activities................................................ 454 204 (1,291)
-------- -------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Sales, maturities and repayments of:
Fixed maturity securities........................................................................ 3,137 4,488 2,948
Equity securities................................................................................ 5 1 7
Mortgage loans................................................................................... 56 21 31
Other limited partnership interests.............................................................. 93 46 46
Purchases of:
Fixed maturity securities........................................................................ (4,274) (4,983) (6,059)
Equity securities................................................................................ (5) -- (2)
Mortgage loans................................................................................... (387) (600) (259)
Real estate joint ventures....................................................................... (1) (4) (5)
Other limited partnership interests.............................................................. (164) (161) (75)
Cash received in connection with freestanding derivatives.......................................... 22 2 5
Cash paid in connection with freestanding derivatives.............................................. (25) (48) (9)
Issuances of loans to affiliates................................................................... (125) -- --
Net change in policy loans......................................................................... (38) (14) (9)
Net change in short-term investments............................................................... (666) 732 837
Net change in other invested assets................................................................ 25 (80) (80)
-------- -------- --------
Net cash used in investing activities.............................................................. (2,347) (600) (2,624)
-------- -------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Policyholder account balances:
Deposits......................................................................................... 4,984 3,219 4,851
Withdrawals...................................................................................... (3,647) (2,634) (2,343)
Net change in payables for collateral under securities loaned and other transactions............... 426 (361) 719
Long-term debt repaid.............................................................................. (3) -- --
Financing element on certain derivative instruments................................................ 1 -- --
Capital contribution from MetLife Insurance Company of Connecticut................................. -- -- 575
-------- -------- --------
Net cash provided by financing activities.......................................................... 1,761 224 3,802
-------- -------- --------
Change in cash and cash equivalents................................................................ (132) (172) (113)
Cash and cash equivalents, beginning of year....................................................... 240 412 525
-------- -------- --------
CASH AND CASH EQUIVALENTS, END OF YEAR............................................................. $ 108 $ 240 $ 412
======== ======== ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Net cash paid (received) during the year for:
Interest......................................................................................... $ 2 $ -- $ --
======== ======== ========
Income tax....................................................................................... $ 16 $ 20 $ (142)
======== ======== ========
Non-cash transactions during the year:
Long-term debt issued in exchange for certain other invested assets.............................. $ -- $ 45 $ --
======== ======== ========
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
5
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
BUSINESS
MetLife Investors USA Insurance Company ("MLI-USA") and its subsidiary and
affiliate, (the "Company"), a Delaware domiciled life insurance company is a
wholly-owned subsidiary of MetLife Insurance Company of Connecticut ("MICC").
MICC is a subsidiary of MetLife, Inc. ("MetLife"). The Company markets,
administers and insures a broad range of term life and universal and variable
life insurance policies and variable and fixed annuity contracts.
BASIS OF PRESENTATION
The accompanying consolidated financial statements include the accounts of
MetLife Investors USA Insurance Company and its subsidiary, as well as a
partnership in which the Company has control. Intercompany accounts and
transactions have been eliminated.
Certain amounts in the prior years' consolidated financial statements and
related footnotes thereto have been reclassified to conform with the 2011
presentation as discussed throughout the Notes to the Consolidated Financial
Statements.
Since the Company is a member of a controlled group of affiliated companies,
its results may not be indicative of those of a stand-alone entity.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND CRITICAL ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America ("GAAP") requires
management to adopt accounting policies and make estimates and assumptions that
affect amounts reported in the consolidated financial statements.
A description of critical estimates is incorporated within the discussion of
the related accounting policies which follows. In applying these policies,
management makes subjective and complex judgments that frequently require
estimates about matters that are inherently uncertain. Many of these policies,
estimates and related judgments are common in the insurance and financial
services industries; others are specific to the Company's business and
operations. Actual results could differ from these estimates.
Investments
The accounting policies for the Company's principal investments are as
follows:
Fixed Maturity and Equity Securities. The Company's fixed maturity and
equity securities are classified as available-for-sale and are reported at
their estimated fair value.
Unrealized investment gains and losses on these securities are recorded as
a separate component of other comprehensive income (loss), net of
policyholder-related amounts and deferred income taxes. All security
transactions are recorded on a trade date basis. Investment gains and losses
on sales of securities are determined on a specific identification basis.
6
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Interest income on fixed maturity securities is recorded when earned using
an effective yield method giving effect to amortization of premiums and
accretion of discounts. Dividends on equity securities are recorded when
declared. Interest, dividends and prepayment fees are recorded in net
investment income.
Included within fixed maturity securities are structured securities
including mortgage-backed and asset-backed securities ("ABS"). Amortization
of the premium or discount 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 by management using inputs
obtained from third-party specialists, including broker-dealers, and based on
management's knowledge of the current market. For credit-sensitive
mortgage-backed and ABS and certain prepayment-sensitive securities, the
effective yield is recalculated on a prospective basis. For all other
mortgage-backed and ABS, the effective yield is recalculated on a
retrospective basis.
The Company periodically evaluates fixed maturity and equity securities for
impairment. The assessment of whether impairments have occurred is based on
management's case-by-case evaluation of the underlying reasons for the
decline in estimated fair value. The Company's review of its fixed maturity
and equity securities for impairments includes an analysis of the total gross
unrealized losses by three categories of severity and/or age of the gross
unrealized loss, as summarized in Note 2 "-- Aging of Gross Unrealized Losses
and OTTI Losses for Fixed Maturity and Equity Securities Available-for-Sale."
Management considers a wide range of factors about the security issuer and
uses its best judgment in evaluating the cause of the decline in the
estimated fair value of the security and in assessing the prospects for
near-term recovery. Inherent in management's evaluation of the security are
assumptions and estimates about the operations of the issuer and its future
earnings potential. Considerations used by the Company in the impairment
evaluation process include, but are not limited to: (i) the length of time
and the extent to which the estimated fair value has been below cost or
amortized cost; (ii) the potential for impairments of securities when the
issuer is experiencing significant financial difficulties; (iii) the
potential for impairments in an entire industry sector or sub-sector;
(iv) the potential for impairments in certain economically depressed
geographic locations; (v) the potential for impairments of securities where
the issuer, series of issuers or industry has suffered a catastrophic type of
loss or has exhausted natural resources; (vi) with respect to fixed maturity
securities, whether the Company has the intent to sell or will more likely
than not be required to sell a particular security before the decline in
estimated fair value below amortized cost recovers; (vii) with respect to
structured securities, changes in forecasted cash flows 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.
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. In such
situations, the OTTI recognized in earnings is the entire difference between
the fixed maturity security's amortized cost and its estimated fair value
only when either: (i) the Company has the intent to sell the fixed maturity
security; or (ii) it is more likely than not that the Company will be
required to sell the fixed maturity security before recovery of the decline
in estimated fair value below amortized cost. If neither of these two
conditions exist, the difference between the amortized cost of the fixed
maturity security and the present value of projected future cash flows
expected to be collected is recognized as an OTTI in earnings ("credit
loss"). If the estimated fair value is less than the present value of
projected future cash flows expected to be collected, this portion of OTTI
related to other-than credit factors ("noncredit loss") is recorded in other
comprehensive income (loss). Adjustments are not made for subsequent
recoveries in value.
7
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (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 it is not expected to recover to an amount at
least equal to cost prior to the expected time of the sale, the security will
be deemed other-than-temporarily impaired in the period that the sale
decision was made and an OTTI loss will be recorded in earnings. When an OTTI
loss has occurred, the OTTI loss is the entire difference between the equity
security's cost and its estimated fair value with a corresponding charge to
earnings.
Upon acquisition, the Company classifies perpetual securities that have
attributes of both debt and equity as fixed maturity securities if the
securities have an interest rate step-up feature which, when combined with
other qualitative factors, indicates that the securities have more debt-like
characteristics; while those with more equity-like characteristics are
classified as equity securities within non-redeemable preferred stock. Many
of such securities, commonly referred to as "perpetual hybrid securities,"
have been issued by non-U.S. financial institutions that are accorded the
highest two capital treatment categories by their respective regulatory
bodies (i.e. core capital, or "Tier 1 capital" and perpetual deferrable
securities, or "Upper Tier 2 capital"). With respect to perpetual hybrid
securities, the Company considers in its OTTI analysis whether there has been
any deterioration in credit of the issuer and the likelihood of recovery in
value of the securities that are in a severe and extended unrealized loss
position. The Company also considers whether any perpetual hybrid securities,
with an unrealized loss, regardless of credit rating, have deferred any
dividend payments. When an OTTI loss has occurred, the OTTI loss is the
entire difference between the perpetual hybrid security's cost and its
estimated fair value with a corresponding charge to earnings.
The Company's methodology and significant inputs used to determine the
amount of the credit loss on fixed maturity securities are as follows:
(i)The Company calculates the recovery value by performing a discounted
cash flow analysis based on the present value of future cash flows
expected to be received. The discount rate is generally the effective
interest rate of the fixed maturity security prior to impairment.
(ii)When determining the collectability and the period over which value is
expected to recover, the Company applies the same considerations
utilized in its overall impairment evaluation process which incorporates
information regarding the specific security, fundamentals of the
industry and geographic area in which the security issuer operates, and
overall macroeconomic conditions. Projected future cash flows are
estimated using assumptions derived from management's best estimates of
likely scenario-based outcomes after giving consideration to a variety
of variables that include, but are not limited to: general payment terms
of the security; the likelihood that the issuer can service the
scheduled interest and principal payments; the quality and amount of any
credit enhancements; the security's position within the capital
structure of the issuer; possible corporate restructurings or asset
sales by the issuer; and changes to the rating of the security or the
issuer by rating agencies.
(iii)Additional considerations are made when assessing the unique features
that apply to certain structured securities such as residential
mortgage-backed securities ("RMBS"), commercial mortgage-backed
securities ("CMBS") and ABS. These additional factors for structured
securities include, but are not limited to: the quality of underlying
collateral; expected prepayment speeds; current and forecasted loss
severity; consideration of the payment terms of the underlying assets
backing a particular security; and the payment priority within the
tranche structure of the security.
8
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
(iv)When determining the amount of the credit loss for U.S. and foreign
corporate securities, foreign government securities and state and
political subdivision securities, management considers the estimated
fair value as the recovery value when available information does not
indicate that another value is more appropriate. When information is
identified that indicates a recovery value other than estimated fair
value, management considers in the determination of recovery value the
same considerations utilized in its overall impairment evaluation
process as described in (ii) above.
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 into
net investment income over the remaining term of the fixed maturity security
in a prospective manner based on the amount and timing of estimated future
cash flows.
Securities Lending. Securities lending transactions, whereby blocks of
securities, which are included in fixed maturity securities and short-term
investments, are loaned to third parties, are treated as financing
arrangements and the associated liability is recorded at the amount of cash
received. At the inception of a loan, the Company obtains collateral, 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 monitors the estimated fair value
of the securities loaned on a daily basis with additional collateral obtained
as necessary. Income and expenses associated with securities lending
transactions are reported as investment income and investment expense,
respectively, within net investment income.
Mortgage Loans. For the purposes of determining valuation allowances the
Company disaggregates its mortgage loan investments into two portfolio
segments: commercial and agricultural.
Mortgage loans are stated at unpaid principal balance, adjusted for any
unamortized premium or discount, deferred fees or expenses, and net of
valuation allowances. Interest income is accrued on the principal amount of
the loan based on the loan's contractual interest rate. Amortization of
premiums and discounts is recorded using the effective yield method.
Interest income, amortization of premiums and discounts and prepayment fees
are reported in net investment income. Interest ceases to accrue when
collection of interest is not considered probable and/or when interest or
principal payments are past due as follows: commercial -- 60 days; and
agricultural -- 90 days. When a loan is placed on non-accrual status,
uncollected past due interest is charged-off against net investment income.
Generally, the accrual of interest income resumes after all delinquent
amounts are paid and management believes all future principal and interest
payments will be collected. Cash receipts on non-accruing loans are recorded
in accordance with the loan agreement as a reduction of principal and/or
interest income. Charge-offs occur upon the realization of a credit loss,
typically through foreclosure or after a decision is made to sell a loan.
Gain or loss upon charge-off is recorded, net of previously established
valuation allowances, in net investment gains (losses). Cash recoveries on
principal amounts previously charged-off are generally recorded as an
increase to the valuation allowance, unless the valuation allowance
adequately provides for expected credit losses; then the recovery is
recorded in net investment gains (losses). Gains and losses from sales of
loans and increases or decreases to valuation allowances are recorded in net
investment gains (losses).
Mortgage loans are considered to be impaired when it is probable that
based upon current information and events, the Company will be unable to
collect all amounts due under the contractual terms of the loan agreement.
9
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Specific valuation allowances are established using the same methodology for
both portfolio segments as the excess carrying value of a loan over either
(i) the present value of expected future cash flows discounted at the loan's
original effective interest rate, (ii) the estimated fair value of the
loan's underlying collateral if the loan is in the process of foreclosure or
otherwise collateral dependent, or (iii) the loan's observable market price.
A common evaluation framework is used for establishing non-specific
valuation allowances for all loan portfolio segments; however, a separate
non-specific valuation allowance is calculated and maintained for each loan
portfolio segment that is based on inputs unique to each loan portfolio
segment. Non-specific valuation allowances are established for pools of
loans with similar risk characteristics where a property-specific or
market-specific risk has not been identified, but for which the Company
expects to incur a credit loss. These evaluations are based upon several
loan portfolio segment-specific factors, including the Company's experience
for loan losses, defaults and loss severity, and loss expectations for loans
with similar risk characteristics. These evaluations are revised as
conditions change and new information becomes available.
For commercial and agricultural mortgage loans, the Company typically uses
10 years or more of historical experience in establishing non-specific
valuation allowances. For commercial mortgage loans, 20 years of historical
experience is used 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 agricultural mortgage loans, ten years of
historical experience is used which captures a full economic cycle. For
evaluations of agricultural 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. For commercial and agricultural mortgage
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 each portfolio segment
level.
All commercial 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 loans are monitored on an
ongoing basis. The monitoring process focuses on higher risk loans, which
include those that are classified as restructured, potentially delinquent,
delinquent or in foreclosure, as well as loans with higher loan-to-value
ratios and lower debt service coverage ratios. The monitoring process for
agricultural loans is generally similar, with a focus on higher risk loans,
including reviews on a geographic and property-type basis. Higher risk
commercial and agricultural loans are reviewed individually on an ongoing
basis for potential credit loss and specific valuation allowances are
established using the methodology described above for all loan portfolio
segments. Quarterly, the remaining loans are reviewed on a pool basis by
aggregating groups of loans that have similar risk characteristics for
potential credit loss, and non-specific valuation allowances are established
as described above using inputs that are unique to each segment of the loan
portfolio.
For commercial loans, the Company's primary credit quality indicator is
the debt service coverage ratio, which compares a property's net operating
income to amounts needed to service the principal and interest due under the
loan. Generally, the lower the debt service coverage ratio, the higher the
risk of experiencing a credit loss. The Company also reviews the
loan-to-value ratio of its commercial loan portfolio. Loan-to-value ratios
compare the unpaid principal balance of the loan to the estimated fair value
of the underlying collateral. A loan-to-value ratio greater than 100%
indicates that the loan's unpaid principal
10
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
balance is greater than the collateral value. A loan-to-value ratio of less
than 100% indicates an excess of collateral value over the loan's unpaid
principal balance. 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 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 loan
portfolio and are routinely updated.
Mortgage Loans Modified in a Troubled Debt Restructuring. For a small
portion of the portfolio, classified as troubled debt restructurings,
concessions are granted related to the borrowers' financial difficulties.
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 in connection with the troubled debt restructuring. Through the
continuous portfolio 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.
Policy Loans. Policy loans are stated at unpaid principal balances.
Interest income on such loans is recorded as earned in net investment income
using the contractually agreed upon interest rate. Generally, interest is
capitalized on the policy's anniversary date. Valuation allowances are not
established for policy loans, as these loans are fully collateralized by the
cash surrender value of the underlying insurance policies. Any unpaid
principal or interest on the loan is deducted from the cash surrender value
or the death benefit prior to settlement of the policy.
Real Estate Joint Ventures and Other Limited Partnership Interests. The
Company uses the equity method of accounting for investments in real estate
joint ventures and other limited partnership interests consisting of
leveraged buy-out funds, hedge funds and other private equity funds in which
it has more than a minor ownership interest or more than a minor influence
over the joint venture's or partnership's operations, but does not have a
controlling interest and is not the primary beneficiary. The equity method is
also used for such investments in which the Company has more than a minor
influence or more than a 20% interest. Generally, the Company records its
share of earnings using a three-month lag methodology for instances where the
timely financial information is not available and the contractual agreements
provide for the delivery of the investees' financial information after the
end of the Company's reporting period. The Company uses the cost method of
accounting for investments in real estate joint ventures and other limited
partnership interests in which it has a minor equity investment and virtually
no influence over the joint ventures' or the partnership's operations. Based
on the nature and structure of these investments, they do not meet the
characteristics of an equity security. The Company reports the distributions
from real estate joint ventures and other limited partnership interests
accounted for under the cost method and equity in earnings from real estate
joint ventures and other limited partnership interests accounted for under
the equity method in net investment income. In addition to the investees
performing regular evaluations for the impairment of underlying investments,
the Company routinely evaluates its investments in real estate joint ventures
and other limited partnerships for impairments. The Company considers its
cost method investments for OTTI when the carrying value of real estate joint
11
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
ventures and other limited partnership interests exceeds the net asset value
("NAV"). The Company takes into consideration the severity and duration of
this excess when deciding if the cost method investment is
other-than-temporarily impaired. For equity method investees, the Company
considers financial and other information provided by the investee, other
known information and inherent risks in the underlying investments, as well
as future capital commitments, in determining whether an impairment has
occurred. When an OTTI is deemed to have occurred, the Company records a
realized capital loss within net investment gains (losses) to record the
investment at its estimated fair value.
Short-term Investments. Short-term investments include 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 principally of
freestanding derivatives with positive estimated fair values, loans to
affiliates, leveraged leases and tax credit partnerships.
Freestanding derivatives with positive estimated fair values are described
in "-- Derivative Financial Instruments" below.
Loans to affiliates are stated at unpaid principal balance, adjusted for
amortization of any unamortized premium or discount.
Leveraged leases are recorded net of non-recourse debt. The Company
recognizes income on the leveraged leases by applying the leveraged lease's
estimated rate of return to the net investment in the lease. The Company
regularly reviews residual values and impairs them to expected values.
Tax credit partnerships are established for the purpose of investing in
low-income housing and other social causes, where the primary return on
investment is in the form of income tax credits and are accounted for under
the equity method or under the effective yield method. The Company reports
the equity in earnings of tax credit partnerships in net investment income.
Investments Risks and Uncertainties. The Company's investments are exposed
to four primary sources of risk: credit, interest rate, liquidity risk, and
market valuation. The financial statement risks, stemming from such
investment risks, are those associated with the determination of estimated
fair values, the diminished ability to sell certain investments in times of
strained market conditions, the recognition of impairments, the recognition
of income on certain investments and the potential consolidation of 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.
When available, the estimated fair value of the Company's fixed maturity
and equity securities are based on quoted prices in active markets that are
readily and regularly obtainable. Generally, these are the most liquid of the
Company's securities holdings and valuation of these securities does not
involve management judgment.
When quoted prices in active markets are not available, the determination
of estimated fair value is based on market standard valuation methodologies
as described in "-- Fair Value" below and in Note 4. Such estimated fair
values are based on available market information and management's judgments
about financial instruments. The observable and unobservable inputs used in
the standard market valuation methodologies are described in Note 4.
12
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Financial markets are susceptible to severe events evidenced by rapid
depreciation in asset values accompanied by a reduction in asset liquidity.
The Company's ability to sell securities, or the price ultimately realized
for these securities, depends upon the demand and liquidity in the market and
increases the use of judgment in determining the estimated fair value of
certain securities.
The determination of the amount of valuation allowances and impairments, as
applicable, is described previously by investment type. The determination of
such valuation allowances and impairments is highly subjective and is based
upon the Company's periodic evaluation and assessment of known and inherent
risks associated with the respective asset class. Such evaluations and
assessments are revised as conditions change and new information becomes
available.
The recognition of income on certain investments (e.g. structured
securities, including mortgage-backed and ABS, and certain structured
investment transactions) is dependent upon prepayments and defaults, which
could result in changes in amounts to be earned.
The Company has invested in certain structured transactions that are VIEs.
These structured transactions include asset-backed securitizations, hybrid
securities, real estate joint ventures, other limited partnership interests,
and limited liability companies. The Company consolidates those VIEs for
which it is deemed to be the primary beneficiary.
The accounting guidance for the determination of when an entity is a VIE
and when to consolidate a VIE is complex and requires significant management
judgment. The determination of the VIE's primary beneficiary requires an
evaluation of the contractual and implied rights and obligations associated
with each party's relationship with or involvement in the entity, an estimate
of the entity's expected losses and expected residual returns and the
allocation of such estimates to each party involved in the entity. The
Company generally uses a qualitative approach to determine whether it is the
primary beneficiary.
For most VIEs, the entity that has both the ability to direct the most
significant activities of the VIE and the obligation to absorb losses or
receive benefits that could be significant to the VIE is considered the
primary beneficiary. However, for VIEs that are investment companies or apply
measurement principles consistent with those utilized by investment
companies, the primary beneficiary is based on a risks and rewards model and
is defined as the entity that will absorb a majority of a VIE's expected
losses, receive a majority of a VIE's expected residual returns if no single
entity absorbs a majority of expected losses, or both. The Company reassesses
its involvement with VIEs on an annual basis. The use of different
methodologies, assumptions and inputs in the determination of the primary
beneficiary could have a material effect on the amounts presented within the
consolidated financial statements.
Derivative Financial Instruments
Derivatives are financial instruments whose values are derived from interest
rates, foreign currency exchange rates, credit spreads and/or other financial
indices. Derivatives may be exchange-traded or contracted in the
over-the-counter ("OTC") market. The Company uses a variety of derivatives,
including swaps, forwards, futures and option contracts, to manage various
risks relating to its ongoing business operations. To a lesser extent, the
Company uses credit derivatives, such as credit default swaps, to synthetically
replicate investment risks and returns which are not readily available in the
cash market. The Company also purchases certain securities, issues certain
insurance policies and investment contracts and engages in certain reinsurance
agreements that have embedded derivatives.
13
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Freestanding derivatives are carried in the Company's consolidated balance
sheets either as assets within other invested assets or as liabilities within
other liabilities at estimated fair value as determined through the use of
quoted market prices for exchange-traded derivatives or through the use of
pricing models for OTC derivatives. The determination of estimated fair value
of freestanding derivatives, 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 the 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.
Accruals on derivatives are generally recorded in accrued investment income
or within other liabilities in the consolidated balance sheets. However,
accruals that are not expected to settle within one year are included with the
derivative carrying value in other invested assets or other liabilities.
The Company does not offset the fair value amounts recognized for derivatives
executed with the same counterparty under the same master netting agreement.
If a derivative is not designated as an accounting hedge or its use in
managing risk does not qualify for hedge accounting, changes in the estimated
fair value of the derivative are generally reported in net derivative gains
(losses) except for those in net investment income for economic hedges of
equity method investments in joint ventures. The fluctuations in estimated fair
value of derivatives which have not been designated for hedge accounting can
result in significant volatility in net income.
To qualify for hedge accounting, at the inception of the hedging
relationship, the Company formally documents its risk management objective and
strategy for undertaking the hedging transaction, as well as its designation of
the hedge as either (i) a hedge of the estimated fair value of a recognized
asset or liability ("fair value hedge"); or (ii) a hedge of a forecasted
transaction or of the variability of cash flows to be received or paid related
to a recognized asset or liability ("cash flow hedge"). In this documentation,
the Company sets forth how the hedging instrument is expected to hedge the
designated risks related to the hedged item and sets forth the method that will
be used to retrospectively and prospectively assess the hedging instrument's
effectiveness and the method which will be used to measure ineffectiveness. A
derivative designated as a hedging instrument must be assessed as being highly
effective in offsetting the designated risk of the hedged item. Hedge
effectiveness is formally assessed at inception and periodically throughout the
life of the designated hedging relationship. Assessments of hedge effectiveness
and measurements of ineffectiveness are also subject to interpretation and
estimation and different interpretations or estimates may have a material
effect on the amount reported in net income.
The accounting for derivatives is complex and interpretations of the primary
accounting guidance continue to evolve in practice. Judgment is applied in
determining the availability and application of hedge accounting designations
and the appropriate accounting treatment under such accounting guidance. If it
was determined that hedge accounting designations were not appropriately
applied, reported net income could be materially affected.
Under a fair value hedge, changes in the estimated fair value of the hedging
derivative, including amounts measured as ineffectiveness, and changes in the
estimated fair value of the hedged item related to the designated risk being
hedged, are reported within net derivative gains (losses). The estimated fair
values of the hedging derivatives are exclusive of any accruals that are
separately reported in the consolidated statements of operations within
interest income or interest expense to match the location of the hedged item.
14
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Under a cash flow hedge, changes in the estimated fair value of the hedging
derivative measured as effective are reported within other comprehensive income
(loss), a separate component of stockholder's equity and the deferred gains or
losses on the derivative are reclassified into the consolidated statements of
operations when the Company's earnings are affected by the variability in cash
flows of the hedged item. Changes in the estimated fair value of the hedging
instrument measured as ineffectiveness are reported within net derivative gains
(losses). The estimated fair values of the hedging derivatives are exclusive of
any accruals that are separately reported in the consolidated statements of
operations within interest income or interest expense to match the location of
the hedged item.
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 consolidated balance sheets at its estimated fair value, with changes in
estimated fair value recognized currently in net derivative gains (losses). The
carrying value of the hedged recognized asset or liability under a fair value
hedge is no longer adjusted for changes in its estimated fair value due to the
hedged risk, and the cumulative adjustment to its carrying value is amortized
into income over the remaining life of the hedged item. Provided the hedged
forecasted transaction is still probable of occurrence, the changes in
estimated fair value of derivatives recorded in other comprehensive income
(loss) related to discontinued cash flow hedges are released into the
consolidated statements of operations when the Company's earnings are affected
by the variability in cash flows of the hedged item.
When hedge accounting is discontinued because it is no longer probable that
the forecasted transactions will occur on the anticipated date or within two
months of that date, the derivative continues to be carried in the consolidated
balance sheets at its estimated fair value, with changes in estimated fair
value recognized currently in net derivative gains (losses). Deferred gains and
losses of a derivative recorded in other comprehensive income (loss) pursuant
to the discontinued cash flow hedge of a forecasted transaction that is no
longer probable are recognized immediately in net derivative gains (losses).
In all other situations in which hedge accounting is discontinued, the
derivative is carried at its estimated fair value in the consolidated balance
sheets, with changes in its estimated fair value recognized in the current
period as net derivative gains (losses).
The Company issues certain products and purchases certain investments that
contain embedded derivatives. The Company assesses each identified embedded
derivative to determine whether it is required to be bifurcated. If the
instrument would not be accounted for in its entirety at estimated fair value
and it is determined that the terms of the embedded derivative are not clearly
and closely related to the economic characteristics of the host contract, and
that a separate instrument with the same terms would qualify as a derivative
instrument, the embedded derivative is bifurcated from the host contract and
accounted for as a freestanding derivative. Such embedded derivatives are
carried in the consolidated balance sheets at estimated fair value with the
host contract and changes in their estimated fair value are generally reported
in net derivative gains (losses). If the Company is unable to properly identify
and measure an embedded derivative for separation from its host contract, the
entire contract is carried on the balance sheet at estimated fair value, with
changes in estimated fair value recognized in the current period in net
investment gains (losses) or net investment income. Additionally, the Company
may
15
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
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.
Fair Value
As described below, certain assets and liabilities are measured at estimated
fair value in the Company's consolidated balance sheets. In addition, the notes
to these consolidated financial statements include further disclosures of
estimated fair values. The Company defines fair value as the price that would
be received to sell an asset or paid to transfer a liability (an exit price) in
the principal or most advantageous market for the asset or liability in an
orderly transaction between market participants on the measurement date. In
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
determinative, unobservable inputs and/or adjustments to observable inputs
requiring management judgment are used to determine the fair value of assets
and liabilities.
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:
[Enlarge/Download Table]
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 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.
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.
16
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
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 $84 million and $90 million at December 31, 2011
and 2010, respectively. Accumulated amortization of capitalized software was
$35 million and $41 million at December 31, 2011 and 2010, respectively.
Related amortization expense was $12 million, $16 million and $10 million for
the years ended December 31, 2011, 2010 and 2009, respectively.
Deferred Policy Acquisition Costs
The Company incurs significant costs in connection with acquiring new and
renewal insurance business. Costs that vary with and relate to the production
of new business are deferred as deferred policy acquisition costs ("DAC"). Such
costs consist principally of commissions, certain agency expenses and policy
issuance expenses. The recovery of DAC is dependent upon the future
profitability of the related business.
The Company amortizes DAC on life insurance or investment-type contracts in
proportion to gross premiums, gross margins or gross profits, depending on the
type of contract as described below.
The Company amortizes DAC related to non-participating and
non-dividend-paying traditional contracts (primarily term insurance) over the
appropriate premium paying period in proportion to the present value of actual
historic and expected future gross premiums. The present value of expected
premiums is based upon the premium requirement of each policy and assumptions
for mortality, persistency and investment returns at policy issuance, that
include provisions for adverse deviation that 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.
The Company amortizes DAC related to participating, dividend-paying
traditional 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 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 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.
17
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The Company amortizes DAC related to fixed and variable universal life
contracts and fixed and variable deferred annuity contracts over the estimated
lives of the contracts in proportion to actual and expected future gross
profits. The amortization includes interest based on rates in effect at
inception 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.
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.
The Company also periodically reviews other long-term assumptions underlying
the projections of estimated gross margins and profits. These include
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.
18
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Sales Inducements
The Company generally has two different types of sales inducements which are
included in other assets: (i) the policyholder receives a bonus whereby the
policyholder's initial account balance is increased by an amount equal to a
specified percentage of the customer's deposit; and (ii) the policyholder
receives a higher interest rate using a dollar cost averaging method than would
have been received based on the normal general account interest rate credited.
The Company defers sales inducements and amortizes them over the life of the
policy using the same methodology and assumptions used to amortize DAC. The
amortization of sales inducements is included in policyholder benefits and
claims. Each year, or more frequently if circumstances indicate a potentially
significant recoverability issue exists, the Company reviews the deferred sales
inducements to determine the recoverability of these balances.
Value of Distribution Agreements
Value of distribution agreements 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 acquisitions contributed to the Company by MetLife is
amortized over useful lives ranging from 10 to 30 years and such amortization
is included in other expenses. Each year, or more frequently if circumstances
indicate a potentially significant recoverability issue exists, the Company
reviews VODA to determine the recoverability of these balances.
Liability for Future Policy Benefits and Policyholder Account Balances
The Company establishes liabilities for amounts payable under insurance
policies, including traditional life insurance and traditional annuities.
Generally, amounts are payable over an extended period of time and related
liabilities are calculated as the present value of future expected benefits to
be paid reduced by the present value of future expected premiums. Such
liabilities are established based on methods and underlying assumptions in
accordance with GAAP and applicable actuarial standards. Principal assumptions
used in the establishment of liabilities for future policy benefits are
mortality, policy lapse, renewal, investment returns, inflation, expenses and
other contingent events as appropriate to the respective product type. These
assumptions are established at the time the policy is issued and are intended
to estimate the experience for the period the policy benefits are payable.
Utilizing these assumptions, liabilities are established on a block of business
basis. 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 us to
establish premium deficiency reserves. Such reserves are determined based on
assumptions at the time the premium deficiency reserve is established and do
not include a provision for adverse deviation.
The Company began selling participating traditional life insurance policies
in 2011. Such policies are 90% reinsured. Future policy benefit liabilities for
participating traditional life insurance policies are equal to the 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).
Participating business represented approximately 1% of the Company's life
insurance in-force at December 31, 2011. Participating policies represented
approximately 12% of gross life insurance premiums for the year ended
December 31, 2011.
Future policy benefit liabilities for non-participating traditional life
insurance policies are equal to the aggregate of the present value of expected
future benefit payments and related expenses less the present value of
19
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
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 4% to 7%.
Future policy benefit liabilities for traditional fixed annuities after
annuitization are equal to the present value of expected future payments.
Interest rate assumptions used in establishing such liabilities range from 4%
to 8%.
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. The assumptions of investment performance and volatility
for variable products are consistent with historical Standard & Poor's ("S&P")
experience of the appropriate underlying equity index, such as the S&P 500
Index. The benefits used in calculating the liabilities are based on the
average benefits payable over a range of scenarios.
Future policy benefit liabilities are established for certain variable
annuity products with guaranteed minimum benefits as described below under "--
Variable Annuity Guaranteed Minimum Benefits."
The Company regularly reviews its estimates of actuarial liabilities for
future policy benefits and compares them with its actual experience.
Differences between actual experience and the assumptions used in pricing these
policies and guarantees, and in the establishment of the related liabilities,
result in changes in the additional liability balances with related charges or
credits to benefit expenses in the period in which the changes occur.
Policyholder account balances ("PABs") relate to investment-type contracts,
universal life-type policies and certain guaranteed minimum benefits.
Investment-type contracts principally include traditional individual fixed
annuities in the accumulation phase and non-variable group annuity contracts.
PABs for these contracts are equal to policy account values, which consist of
an accumulation of gross premium payments and credited interest, ranging from
1% to 8%, less expenses, mortality charges and withdrawals.
Variable Annuity Guaranteed Minimum Benefits
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. In some cases the benefit
base may be increased by additional deposits, bonus amounts, accruals or
optional market value resets. 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 accounted for
under a split of the two models.
These guarantees include:
. Guaranteed minimum death benefit ("GMDB") that guarantees the
contractholder a return of their purchase payment upon death even if the
account value is reduced to zero. An enhanced death benefit may be
available for an additional fee.
20
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
. Guaranteed minimum income benefit ("GMIB") that provides the
contractholder, after a specified period of time determined at the time
of issuance of the variable annuity contract, with a minimum
accumulation of their purchase payments, even if the account value is
reduced to zero, that can be annuitized to receive a monthly income
stream that is not less than a specified amount. Certain of these
contracts also provide for a guaranteed lump sum return of purchase
premium in lieu of the annuitization benefit.
. Guaranteed minimum withdrawal benefit ("GMWB") that guarantees the
contractholder a return of their purchase payment via partial
withdrawals, even if the account value is reduced to zero, provided that
the contractholder's cumulative withdrawals in a contract year do not
exceed a certain limit. Certain of these contracts include guaranteed
withdrawals that are life contingent.
. Guaranteed minimum accumulation benefit ("GMAB") that provides the
contractholder, after a specified period of time determined at the time
of issuance of the variable annuity contract, with a minimum
accumulation of their purchase payments even if the account value is
reduced to zero.
Guarantees accounted for as insurance liabilities in future policy benefits
include GMDB, the portion of GMIB that require annuitization, and the
life-contingent portion of certain GMWB. These liabilities are established as
follows:
GMDB liabilities are determined by estimating the expected value of death
benefits in excess of the projected account balance and recognizing the excess
ratably over the accumulation period based on total expected assessments. The
assumptions used in estimating the GMDB liabilities are consistent with those
used for amortizing DAC, and are thus subject to the same variability and risk.
The assumptions of investment performance and volatility are consistent with
the historical experience of the appropriate underlying equity index, such as
the S&P 500 Index. The benefit assumptions used in calculating the liabilities
are based on the average benefits payable over a range of scenarios.
GMIB liabilities are determined by estimating the expected value of the
income benefits in excess of the projected account balance at any future date
of annuitization and recognizing the excess ratably over the accumulation
period based on total expected assessments. The assumptions used for estimating
the GMIB liabilities are consistent with those used for estimating the GMDB
liabilities. In addition, the calculation of guaranteed annuitization benefit
liabilities incorporates an assumption for the percentage of the potential
annuitizations that may be elected by the contractholder. Certain GMIB have
settlement features that result in a portion of that guarantee being accounted
for as an embedded derivative and are recorded in PABs as described below.
The liability for the life contingent portion of GMWB is determined based on
the expected value of the life contingent payments and expected assessments
using assumptions consistent with those used for estimating the GMDB
liabilities.
Guarantees accounted for as embedded derivatives in PABs include the non
life-contingent portion of GMWB, GMAB and the portion of certain GMIB that do
not require annuitization. These guarantees are recorded at estimated fair
value separately from the host variable annuity with changes in estimated fair
value reported in net derivative gains (losses). 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.
21
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The estimated fair values of these embedded derivatives are then determined
based on the present value of projected future benefits minus the present value
of projected future fees. The projections of future benefits and future fees
require capital market and actuarial assumptions including expectations
concerning policyholder behavior. A risk neutral valuation methodology is used
under which the cash flows from the guarantees are projected under multiple
capital market scenarios using observable risk free rates. The valuation of
these embedded derivatives also includes an adjustment for the Company's
nonperformance risk and risk margins related to non-capital market inputs. The
nonperformance adjustment, which is captured as a spread over the risk free
rate in determining the discount rate to discount the cash flows of the
liability, 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 in
certain actuarial assumptions. 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, variations in actuarial assumptions
regarding policyholder behavior, mortality and risk margins related to
non-capital market inputs may result in significant fluctuations in the
estimated fair value of the guarantees that could materially affect net income.
The Company ceded the risk associated with GMDB, GMIB, GMAB and GMWB
described in the preceding paragraphs. With respect to GMIB, a portion of the
directly written GMIB guarantees that are accounted for as insurance (i.e., not
as embedded derivatives) but where the reinsurance agreements contain embedded
derivatives. These embedded derivatives are included in premiums, reinsurance,
and other receivables in the consolidated balance sheet 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.
Other Policy-Related Balances
Other policy-related balances include policy and contract claims, unearned
revenue liabilities, and policyholder dividends due and unpaid.
The liability for policy and contract claims generally relates to incurred
but not reported death claims, as well as claims which have been reported but
not yet settled. The liability for these claims is based on the Company's
estimated ultimate cost of settling all claims. The Company derives estimates
for the development of incurred but not reported claims principally from
actuarial analyses of historical patterns of claims and claims development for
each line of business. The methods used to determine these estimates are
continually reviewed. Adjustments resulting from this continuous review process
and differences between estimates and payments for claims are recognized in
policyholder benefits and claims expense in the period in which the estimates
are changed or payments are made.
The unearned revenue liability relates to universal life-type and
investment-type products and represents policy charges for services to be
provided in future periods. The charges are deferred as unearned revenue and
22
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
amortized using the product's estimated gross profits, similar to DAC. Such
amortization is recorded in universal life and investment-type product policy
fees.
Also included in other policy-related balances are policyholder dividends due
and unpaid on participating policies. Such liability is presented at amounts
contractually due to policyholders.
Recognition of Insurance Revenue and Related Benefits
Premiums related to traditional life and annuity policies with life
contingencies are recognized as revenues when due from policyholders.
Policyholder benefits and expenses are provided against such revenues to
recognize profits over the estimated lives of the policies. When premiums are
due over a significantly shorter period than the period over which benefits are
provided, any excess profit is deferred and recognized into operations in a
constant relationship to insurance in-force or, for annuities, the amount of
expected future policy benefit payments.
Deposits related to universal life-type and investment-type products are
credited to PABs. Revenues from such contracts consist of amounts assessed
against PABs for mortality, policy administration and surrender charges and are
recorded in universal life and investment-type product policy fees in the
period in which services are provided. Amounts that are charged to operations
include interest credited and benefit claims incurred in excess of related PABs.
Premiums, policy fees, policyholder benefits and expenses are presented net
of reinsurance.
The portion of fees allocated to embedded derivatives described previously is
recognized within net derivative gains (losses) as part of the estimated fair
value of embedded derivatives.
Other Revenues
Other revenues include fees on reinsurance financing agreements and advisory
fees. Such fees are recognized in the period in which services are performed.
Income Taxes
The Company was excluded from MetLife's life/non-life consolidated federal
tax return since it became a subsidiary of MICC in 2006. In 2011, the Company
together with MICC and its subsidiaries were able to join the MetLife
life/non-life consolidated federal tax return and became a party to the MetLife
tax sharing agreement. Prior to 2011, the Company filed a consolidated tax
return with MICC.
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
23
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
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:
(i)future taxable income exclusive of reversing temporary differences and
carryforwards;
(ii)future reversals of existing taxable temporary differences;
(iii)taxable income in prior carryback years; and
(iv)tax planning strategies.
The Company may be required to change its provision for income taxes in
certain circumstances. Examples of such circumstances include when estimates
used in determining valuation allowances on deferred tax assets significantly
change or when receipt of new information indicates the need for adjustment in
valuation allowances. Additionally, future events, such as changes in tax laws,
tax regulations, or interpretations of such laws or regulations, could have an
impact on the provision for income tax and the effective tax rate. Any such
changes could significantly affect the amounts reported in the consolidated
financial statements in the year these changes occur.
The Company determines whether it is more likely than not that a tax position
will be sustained upon examination by the appropriate taxing authorities before
any part of the benefit can be recorded in the financial statements. A tax
position is measured at the largest amount of benefit that is greater than 50%
likely of being realized upon settlement. Unrecognized tax benefits due to tax
uncertainties that do not meet the threshold are included within other
liabilities and are charged to earnings in the period that such determination
is made.
The Company classifies interest recognized as interest expense and penalties
recognized as a component of income tax.
Reinsurance
The Company enters into reinsurance agreements primarily as a purchaser of
reinsurance for its life insurance products and also as a provider of
reinsurance for some insurance products issued by related parties.
For each of its reinsurance agreements, the Company determines whether the
agreement provides indemnification against loss or liability relating to
insurance risk in accordance with applicable accounting standards. The Company
reviews all contractual features, particularly those that may limit the amount
of insurance risk to which the reinsurer is subject or features that delay the
timely reimbursement of claims.
For reinsurance of existing in-force blocks of long-duration contracts that
transfer significant insurance risk, the difference, if any, between the
amounts paid (received), and the liabilities ceded (assumed) related to the
underlying contracts is considered the net cost of reinsurance at the inception
of the reinsurance agreement. The net cost of reinsurance is recorded as an
adjustment to DAC and recognized as a component of other expenses on a basis
consistent with the way the acquisition costs on the underlying reinsured
contracts would be recognized. Subsequent amounts paid (received) on the
reinsurance of in-force blocks, as well as amounts paid (received) related to
new business, are recorded as ceded (assumed) premiums and ceded (assumed)
future policy benefit liabilities are established.
24
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The assumptions used to account for long-duration reinsurance agreements are
consistent with those used for the underlying contracts. Ceded policyholder and
contract related liabilities, other than those currently due, are reported
gross on the balance sheet.
Amounts currently recoverable under reinsurance agreements are included in
premiums, reinsurance and other receivables and amounts currently payable are
included in other liabilities. Such assets and liabilities relating to
reinsurance agreements with the same reinsurer may be recorded net on the
balance sheet, if a right of offset exists within the reinsurance agreement. In
the event that reinsurers do not meet their obligations to the Company under
the terms of the reinsurance agreements, reinsurance balances recoverable could
become uncollectible. In such instances, reinsurance recoverable balances are
stated net of allowances for uncollectible reinsurance.
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.
If the Company determines that a reinsurance agreement does not expose the
reinsurer to a reasonable possibility of a significant loss from insurance
risk, the Company records the agreement using the deposit method of accounting.
Deposits received are included in other liabilities and deposits made are
included within premiums, reinsurance and other receivables. As amounts are
paid or received, consistent with the underlying contracts, the deposit assets
or liabilities are adjusted. Interest on such deposits is recorded as other
revenues or other expenses, as appropriate. Periodically, the Company evaluates
the adequacy of the expected payments or recoveries and adjusts the deposit
asset or liability through other revenues or other expenses, as appropriate.
Accounting for reinsurance requires extensive use of assumptions and
estimates, particularly related to the future performance of the underlying
business and the potential impact of counterparty credit risks. The Company
periodically reviews actual and anticipated experience compared to the
aforementioned assumptions used to establish assets and liabilities relating to
ceded and assumed reinsurance and evaluates the financial strength of
counterparties to its reinsurance agreements using criteria similar to that
evaluated in the security impairment process discussed previously.
Cessions under reinsurance agreements do not discharge the Company's
obligations as the primary insurer.
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 rates
of exchange prevailing during the year. The resulting translation adjustments
are charged or credited directly to other comprehensive income or loss, net of
applicable taxes. Gains and losses from foreign currency transactions,
including the effect of re-measurement of monetary assets and liabilities to
the appropriate functional currency, are reported as part of net investment
gains (losses) in the period in which they occur.
25
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
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 in other expenses as incurred. On a quarterly and annual
basis, the Company reviews relevant information with respect to liabilities for
litigation, regulatory investigations and litigation-related contingencies to
be reflected in the Company's consolidated financial statements. It is possible
that an adverse outcome in certain of the Company's litigation and regulatory
investigations, or the use of different assumptions in the determination of
amounts recorded, could have a material effect upon the Company's consolidated
net income or cash flows in particular annual periods.
Separate Accounts
Separate accounts are established in conformity with insurance laws and are
generally not chargeable with liabilities that arise from any other business of
the Company. Separate account assets are subject to general account claims only
to the extent the value of such assets exceeds the separate account
liabilities. Assets within the Company's separate accounts primarily include:
mutual funds, fixed maturity securities, derivatives, short-term investments
and cash and cash equivalents. The Company reports separately, as assets and
liabilities, investments held in separate accounts and liabilities of the
separate accounts if (i) such separate accounts are legally recognized;
(ii) assets supporting the contract liabilities are legally insulated from the
Company's general account liabilities; (iii) investments are directed by the
contractholder; and (iv) all investment performance, net of contract fees and
assessments, is passed through to the contractholder. The Company reports
separate account assets meeting such criteria at their fair value which is
based on the estimated fair values of the underlying assets comprising the
portfolios of an individual separate account. Investment performance (including
investment income, net investment gains (losses) and changes in unrealized
gains (losses)) and the corresponding amounts credited to contractholders of
such separate accounts are offset within the same line in the consolidated
statements of operations.
The Company's revenues reflect fees charged to the separate accounts,
including mortality charges, risk charges, policy administration fees,
investment management fees and surrender charges. Such fees are included in
universal life and investment -type product policy fees in the consolidated
statements of operations.
ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
Financial Instruments
Effective July 1, 2011, the Company adopted new guidance regarding accounting
for troubled debt restructurings. This guidance clarifies whether a creditor
has granted a concession and whether a debtor is experiencing financial
difficulties for the purpose of determining when a restructuring constitutes a
troubled debt restructuring. Additionally, the guidance prohibits creditors
from using the borrower's effective rate test to evaluate whether a concession
has been granted to the borrower. The adoption did not have a material impact
on the Company's consolidated financial statements. See also expanded
disclosures in Note 2.
Effective January 1, 2011, the Company adopted new guidance regarding
accounting for investment funds determined to be VIEs. Under this guidance, an
insurance entity would not be required to consolidate a voting-interest
investment fund when it holds the majority of the voting interests of the fund
through its separate
26
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
accounts. In addition, an insurance entity would not consider the interests
held through separate accounts for the benefit of policyholders in the
insurer's evaluation of its economic interest in a VIE, unless the separate
account contractholder is a related party. The adoption did not have a material
impact on the Company's consolidated financial statements.
Effective December 31, 2010, the Company adopted guidance regarding
disclosures about the credit quality of financing receivables and valuation
allowances for credit losses, including credit quality indicators. Such
disclosures must be disaggregated by portfolio segment or class based on how a
company develops its valuation allowances for credit losses and how it manages
its credit exposure. The Company has provided all material required disclosures
in its consolidated financial statements.
Effective July 1, 2010, the Company adopted guidance regarding accounting for
embedded credit derivatives within structured securities. This guidance
clarifies the type of embedded credit derivative that is exempt from embedded
derivative bifurcation requirements. Specifically, embedded credit derivatives
resulting only from subordination of one financial instrument to another
continue to qualify for the scope exception. Embedded credit derivative
features other than subordination must be analyzed to determine whether they
require bifurcation and separate accounting. The adoption of this guidance did
not have an impact on the Company's consolidated financial statements.
Effective January 1, 2010, the Company adopted guidance related to financial
instrument transfers and consolidation of VIEs. The financial instrument
transfer guidance eliminates the concept of a qualified special purpose entity,
eliminates the guaranteed mortgage securitization exception, changes the
criteria for achieving sale accounting when transferring a financial asset and
changes the initial recognition of retained beneficial interests. The new
consolidation guidance changes the definition of the primary beneficiary, as
well as the method of determining whether an entity is a primary beneficiary of
a VIE from a quantitative model to a qualitative model. Under the new
qualitative model, the entity that has both the ability to direct the most
significant activities of the VIE and the obligation to absorb losses or
receive benefits that could be significant to the VIE is considered to be the
primary beneficiary of the VIE. The guidance requires a quarterly reassessment,
as well as enhanced disclosures, including the effects of a company's
involvement with VIEs on its financial statements.
Also effective January 1, 2010, the Company adopted guidance that
indefinitely defers the above changes relating to the Company's interests in
entities that have all the attributes of an investment company or for which it
is industry practice to apply measurement principles for financial reporting
that are consistent with those applied by an investment company. As a result of
the deferral, the above guidance did not apply to certain real estate joint
ventures and other limited partnership interests held by the Company.
Effective April 1, 2009, the Company adopted OTTI guidance. This guidance
amends the previously used methodology for determining whether an OTTI exists
for fixed maturity securities, change the presentation of OTTI for fixed
maturity securities and requires additional disclosures for OTTI on fixed
maturity and equity securities. The Company had no net cumulative effect
adjustment related to the adoption of the OTTI guidance. As a result of the
adoption of the OTTI guidance, the Company's pre-tax earnings for the year
ended December 31, 2009 increased by $5 million, offset by an increase in other
comprehensive loss representing OTTI relating to noncredit losses recognized
during the year ended December 31, 2009.
Effective January 1, 2009, the Company adopted guidance on disclosures about
derivative instruments and hedging. This guidance requires enhanced qualitative
disclosures about objectives and strategies for using
27
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
derivatives, quantitative disclosures about fair value amounts of and gains and
losses on derivative instruments and disclosures about credit risk-related
contingent features in derivative agreements. The Company has provided all of
the material disclosures in its consolidated financial statements.
Effective January 1, 2009, the Company adopted prospectively an update on
accounting for transfers of financial assets and repurchase financing
transactions. This update provides guidance for evaluating whether to account
for a transfer of a financial asset and repurchase financing as a single
transaction or as two separate transactions. The adoption did not have a
material impact on the Company's consolidated financial statements.
Business Combinations and Noncontrolling Interests
Effective January 1, 2011, the Company adopted new guidance that addresses
when a business combination should be assumed to have occurred for the purpose
of providing pro forma disclosure. Under the new guidance, if an entity
presents comparative financial statements, the entity should disclose revenue
and earnings of the combined entity as though the business combination that
occurred during the current year had occurred as of the beginning of the
comparable prior annual reporting period. The guidance also expands the
supplemental pro forma disclosures to include additional narratives. The
adoption did not have an impact on the Company's consolidated financial
statements.
Effective January 1, 2009, the Company adopted revised guidance on business
combinations and accounting for noncontrolling interests in the consolidated
financial statements. Under this guidance:
. All business combinations (whether full, partial or "step" acquisitions)
result in all assets and liabilities of an acquired business being
recorded at fair value, with limited exceptions.
. Acquisition costs are generally expensed as incurred; restructuring
costs associated with a business combination are generally expensed as
incurred subsequent to the acquisition date.
. The fair value of the purchase price, including the issuance of equity
securities, is determined on the acquisition date.
. Assets acquired and liabilities assumed in a business combination that
arise from contingencies are recognized at fair value if the acquisition
date fair value can be reasonably determined. If the fair value is not
estimable, an asset or liability is recorded if existence or incurrence
at the acquisition date is probable and its amount is reasonably
estimable.
. Changes in deferred income tax asset valuation allowances and income tax
uncertainties after the acquisition date generally affect income tax
expense.
. Noncontrolling interests (formerly known as "minority interests") are
valued at fair value at the acquisition date and are presented as equity
rather than liabilities.
. Net income (loss) includes amounts attributable to noncontrolling
interests.
. When control is attained on previously noncontrolling interests, the
previously held equity interests are remeasured at fair value and a gain
or loss is recognized.
. Purchases or sales of equity interests that do not result in a change in
control are accounted for as equity transactions.
28
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
. When control is lost in a partial disposition, realized gains or losses
are recorded on equity ownership sold and the remaining ownership
interest is remeasured and holding gains or losses are recognized.
As the Company did not have a minority interest, the adoption of this
guidance did not have an impact on the Company's consolidated financial
statements.
Effective January 1, 2009, the Company adopted prospectively guidance on
determination of the useful life of intangible assets. This guidance amends the
factors that should be considered in developing renewal or extension
assumptions used to determine the useful life of a recognized intangible asset.
This change is intended to improve the consistency between the useful life of a
recognized intangible asset and the period of expected future cash flows used
to measure the fair value of the asset. The Company determines useful lives and
provides all of the material disclosures prospectively on intangible assets
acquired on or after January 1, 2009 in accordance with this guidance.
Fair Value
Effective January 1, 2010, the Company adopted guidance that requires
disclosures about significant transfers into and/or out of Levels 1 and 2 of
the fair value hierarchy and activity in Level 3. In addition, this guidance
provides clarification of existing disclosure requirements about level of
disaggregation and inputs and valuation techniques. The adoption of this
guidance did not have an impact on the Company's consolidated financial
statements.
The following pronouncements relating to fair value had no material impact on
the Company's consolidated financial statements:
. Effective January 1, 2009, the Company implemented fair value
measurements guidance for certain nonfinancial assets and liabilities
that are recorded at fair value on a non-recurring basis. This guidance
applies to such items as: (i) nonfinancial assets and nonfinancial
liabilities initially measured at estimated fair value in a business
combination; (ii) reporting units measured at estimated fair value in
the first step of a goodwill impairment test; and (iii) indefinite-lived
intangible assets measured at estimated fair value for impairment
assessment.
. Effective January 1, 2009, the Company adopted prospectively guidance on
issuer's accounting for liabilities measured at fair value with a
third-party credit enhancement. This guidance states that an issuer of a
liability with a third-party credit enhancement should not include the
effect of the credit enhancement in the fair value measurement of the
liability. In addition, it requires disclosures about the existence of
any third-party credit enhancement related to liabilities that are
measured at fair value.
. Effective April 1, 2009, the Company adopted guidance on: (i) estimating
the fair value of an asset or liability if there was a significant
decrease in the volume and level of trading activity for these assets or
liabilities; and (ii) identifying transactions that are not orderly. The
Company has provided all of the material disclosures in its consolidated
financial statements.
. Effective December 31, 2009, the Company adopted guidance on:
(i) measuring the fair value of investments in certain entities that
calculate NAV per share; (ii) how investments within its scope would be
classified in the fair value hierarchy; and (iii) enhanced disclosure
requirements for annual periods, about the nature and risks of
investments measured at fair value on a recurring or non-recurring basis.
29
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
. Effective December 31, 2009, the Company adopted guidance on measuring
liabilities at fair value. This guidance provides clarification for
measuring fair value in circumstances in which a quoted price in an
active market for the identical liability is not available. In such
circumstances a company is required to measure fair value using either a
valuation technique that uses: (i) the quoted price of the identical
liability when traded as an asset; or (ii) quoted prices for similar
liabilities or similar liabilities when traded as assets; or
(iii) another valuation technique that is consistent with the principles
of fair value measurement such as an income approach (e.g., present
value technique) or a market approach (e.g., "entry" value technique).
Other Pronouncements
Effective April 1, 2009, the Company adopted prospectively guidance which
establishes general standards for accounting and disclosures of events that
occur subsequent to the balance sheet date but before financial statements are
issued or available to be issued. The Company has provided all of the material
disclosures in its consolidated financial statements.
FUTURE ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
In December 2011, the Financial Accounting Standards Board ("FASB") issued
new guidance regarding comprehensive income (Accounting Standards Update
("ASU") 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective
Date for Amendments to the Presentation of Reclassifications of Items Out of
Accumulated Other Comprehensive Income in ASU No. 2011-05). The amendments in
ASU 2011-12 are effective for fiscal years and interim periods within those
years beginning after December 15, 2011. Consistent with the effective date of
the amendments in ASU 2011-05 discussed below, ASU 2011-12 defers the effective
date pertaining to reclassification adjustments out of accumulated other
comprehensive income in ASU 2011-05. The amendments are being made to allow the
FASB time to re-deliberate whether to present on the face of the financial
statements the effects of reclassifications out of accumulated other
comprehensive income on the components of net income and other comprehensive
income for all periods presented. All other requirements in ASU 2011-05 are not
affected by ASU 2011-12, including the requirement to report comprehensive
income either in a single continuous financial statement or in two separate but
consecutive financial statements. The Company is currently evaluating the
impact of this guidance on its consolidated financial statements.
In December 2011, the FASB issued new guidance regarding balance sheet
offsetting disclosures (ASU 2011-11, Balance Sheet (Topic 210): Disclosures
about Offsetting Assets and Liabilities), effective for annual reporting
periods beginning on or after January 1, 2013, and interim periods within those
annual periods. The guidance should be applied retrospectively for all
comparative periods presented. The amendments in ASU 2011-11 require an entity
to disclose information about offsetting and related arrangements 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 objective of ASU 2011-11 is to facilitate comparison between those entities
that prepare their financial statements on the basis of GAAP and those entities
that prepare their financial statements on the basis of International Financial
Reporting Standards ("IFRS"). The Company is currently evaluating the impact of
this guidance on its consolidated financial statements and related disclosures.
In June 2011, the FASB issued new guidance regarding comprehensive income
(ASU 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive
Income), effective for fiscal years, and
30
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
interim periods within those years, beginning after December 15, 2011. The
guidance should be applied retrospectively and early adoption is permitted. The
new guidance provides companies with the option to present the total of
comprehensive income, components of net income, and the components of other
comprehensive income either in a single continuous statement of comprehensive
income or in two separate but consecutive statements. The objective of the
standard is to increase the prominence of items reported in other comprehensive
income and to facilitate convergence of GAAP and IFRS. The standard eliminates
the option to present components of other comprehensive income as part of the
statement of changes in stockholder's equity. The amendments in ASU 2011-05 do
not change the items that must be reported in other comprehensive income or
when an item of other comprehensive income must be reclassified in net income.
The Company intends to adopt the two-statement approach in 2012.
In May 2011, the FASB issued new guidance regarding fair value measurements
(ASU 2011- 04, Fair Value Measurement (Topic 820): Amendments to Achieve Common
Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs),
effective for the first interim or annual period beginning after December 15,
2011. The guidance should be applied prospectively. The amendments in this ASU
are intended to establish common requirements for measuring fair value and for
disclosing information about fair value measurements in accordance with GAAP
and IFRS. Some of the amendments clarify the FASB's intent on the application
of existing 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 Company does not expect the
adoption of this new guidance to have a material impact on its consolidated
financial statements.
In April 2011, the FASB issued new guidance regarding effective control in
repurchase agreements (ASU 2011-03, Transfers and Servicing (Topic 860):
Reconsideration of Effective Control for Repurchase Agreements), effective for
the first interim or annual period beginning on or after December 15, 2011. The
guidance should be applied prospectively to transactions or modifications of
existing transactions that occur on or after the effective date. The amendments
in this ASU remove from the assessment of effective control the criterion
requiring the transferor to have the ability to repurchase or redeem the
financial assets. The Company does not expect the adoption of this new guidance
to have a material impact on its consolidated financial statements.
In October 2010, the FASB issued new guidance regarding accounting for
deferred acquisition costs (ASU 2010-26, Financial Services --Insurance (Topic
944): Accounting for Costs Associated with Acquiring or Renewing Insurance
Contracts) ("ASU 2010-26"), effective for fiscal years, and interim periods
within those fiscal years, beginning after December 15, 2011. ASU 2010-26
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 currently capitalized by the Company will
no longer be deferred. The Company will adopt ASU 2010-26 in 2012 and will
apply it retrospectively to all prior periods presented in its consolidated
financial statements for all insurance contracts. The Company estimates that
DAC will be reduced by approximately $600 million to $650 million and total
equity will be reduced by approximately $400 million to $450 million, net of
income tax, as of the date of adoption. Additionally, the Company estimates
that net income (loss) will be reduced by approximately $8 million to $9
million, $34 million to $38 million, and $67 million to $75 million in 2011,
2010, and 2009, respectively, as of the date of adoption.
31
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
2. INVESTMENTS
FIXED MATURITY AND EQUITY SECURITIES AVAILABLE-FOR-SALE
The following tables present the cost or amortized cost, gross unrealized
gains and losses, estimated fair value of fixed maturity and equity securities
and the percentage that each sector represents by the respective total holdings
for the periods shown. The unrealized loss amounts presented below include the
noncredit loss component of OTTI losses:
[Enlarge/Download Table]
DECEMBER 31, 2011
-------------------------------------------------
GROSS UNREALIZED
COST OR ----------------------- ESTIMATED
AMORTIZED TEMPORARY OTTI FAIR % OF
COST GAINS LOSSES LOSSES VALUE TOTAL
--------- ------ --------- ------ --------- -----
(IN MILLIONS)
FIXED MATURITY SECURITIES:
U.S. corporate securities.................. $3,545 $ 445 $ 24 $ -- $ 3,966 37.9%
Foreign corporate securities............... 1,634 152 14 -- 1,772 16.9
U.S. Treasury and agency securities........ 1,247 280 -- -- 1,527 14.6
RMBS....................................... 1,268 82 31 6 1,313 12.6
State and political subdivision securities. 675 110 4 -- 781 7.5
CMBS....................................... 539 30 2 -- 567 5.4
ABS........................................ 359 13 7 -- 365 3.5
Foreign government securities.............. 138 29 1 -- 166 1.6
------ ------ ------ ------ -------- -----
Total fixed maturity securities........... $9,405 $1,141 $ 83 $ 6 $ 10,457 100.0%
====== ====== ====== ====== ======== =====
EQUITY SECURITIES:
Common stock............................... $ 1 $ -- $ -- $ -- $ 1 50.0%
Non-redeemable preferred stock............. 1 -- -- -- 1 50.0
------ ------ ------ ------ -------- -----
Total equity securities................... $ 2 $ -- $ -- $ -- $ 2 100.0%
====== ====== ====== ====== ======== =====
32
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
[Enlarge/Download Table]
DECEMBER 31, 2010
------------------------------------------------
GROSS UNREALIZED
COST OR ---------------------- ESTIMATED
AMORTIZED TEMPORARY OTTI FAIR % OF
COST GAINS LOSSES LOSSES VALUE TOTAL
--------- ----- --------- ------ --------- -----
(IN MILLIONS)
FIXED MATURITY SECURITIES:
U.S. corporate securities.................. $3,186 $220 $ 34 $ -- $ 3,372 38.9%
Foreign corporate securities............... 1,394 103 7 -- 1,490 17.1
U.S. Treasury and agency securities........ 1,153 18 28 -- 1,143 13.2
RMBS....................................... 986 52 22 6 1,010 11.6
State and political subdivision securities. 643 10 23 -- 630 7.3
CMBS....................................... 490 26 3 -- 513 5.9
ABS........................................ 379 13 9 -- 383 4.4
Foreign government securities.............. 119 16 -- -- 135 1.6
------ ---- ----- ------ -------- -----
Total fixed maturity securities........... $8,350 $458 $ 126 $ 6 $ 8,676 100.0%
====== ==== ===== ====== ======== =====
EQUITY SECURITIES:
Common stock............................... $ 1 $ 1 $ -- $ -- $ 2 66.7%
Non-redeemable preferred stock............. 2 -- 1 -- 1 33.3
------ ---- ----- ------ -------- -----
Total equity securities................... $ 3 $ 1 $ 1 $ -- $ 3 100.0%
====== ==== ===== ====== ======== =====
Within fixed maturity securities, a reclassification from the ABS sector to
the RMBS sector has been made to the prior year amounts to conform to the
current year presentation for securities backed by sub-prime residential
mortgage loans to be consistent with market convention relating to the risks
inherent in such securities and the Company's management of its investments
within these asset sectors.
The Company held no non-income producing fixed maturity securities at
December 31, 2011 and 2010.
The Company held foreign currency derivatives with notional amounts of $177
million and $117 million to hedge the exchange rate risk associated with
foreign denominated fixed maturity securities at December 31, 2011 and 2010,
respectively.
Concentrations of Credit Risk (Fixed Maturity Securities) -- Summary. The
following section contains a summary of the concentrations of credit risk
related to fixed maturity securities holdings.
The Company was not exposed to any concentrations of credit risk of any
single issuer greater than 10% of the Company's stockholder's equity, other
than the government securities summarized in the table below.
33
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Concentrations of Credit Risk (Government and Agency Securities). The
following section contains a summary of the concentrations of credit risk
related to government and agency fixed maturity and fixed-income securities
holdings, which were greater than 10% of the Company's stockholder's equity at:
[Download Table]
DECEMBER 31,
-----------------
2011 2010
-------- --------
CARRYING VALUE (1)
-----------------
(IN MILLIONS)
U.S. Treasury and agency fixed maturity securities............ $ 1,527 $ 1,143
U.S. Treasury and agency fixed-income securities included in:
Short-term investments....................................... $ 629 $ 60
Cash equivalents............................................. $ 38 $ 221
--------
(1)Represents estimated fair value for fixed maturity securities and for
short-term investments and cash equivalents, estimated fair value or
amortized cost, which approximates estimated fair value.
Concentrations of Credit Risk (Equity Securities). The Company was not
exposed to any concentrations of credit risk in its equity securities holdings
of any single issuer greater than 10% of the Company's stockholder's equity or
1% of total investments at December 31, 2011 and 2010.
Maturities of Fixed Maturity Securities. The amortized cost and estimated
fair value of fixed maturity securities, by contractual maturity date
(excluding scheduled sinking funds), were as follows at:
[Download Table]
DECEMBER 31,
---------------------------------------
2011 2010
------------------- -------------------
ESTIMATED ESTIMATED
AMORTIZED FAIR AMORTIZED FAIR
COST VALUE COST VALUE
--------- --------- --------- ---------
(IN MILLIONS)
Due in one year or less................ $ 161 $ 162 $ 128 $ 132
Due after one year through five years.. 1,470 1,545 1,095 1,145
Due after five years through ten years. 2,112 2,345 2,264 2,432
Due after ten years.................... 3,496 4,160 3,008 3,061
------- -------- ------- -------
Subtotal.............................. 7,239 8,212 6,495 6,770
RMBS, CMBS and ABS..................... 2,166 2,245 1,855 1,906
------- -------- ------- -------
Total fixed maturity securities..... $ 9,405 $ 10,457 $ 8,350 $ 8,676
======= ======== ======= =======
Actual maturities may differ from contractual maturities due to the exercise
of call or prepayment options. Fixed maturity securities not due at a single
maturity date have been included in the above table in the year of final
contractual maturity. RMBS, CMBS and ABS are shown separately in the table, as
they are not due at a single maturity.
EVALUATING AVAILABLE-FOR-SALE SECURITIES FOR OTHER-THAN-TEMPORARY IMPAIRMENT
As described more fully in Note 1, the Company performs a regular evaluation,
on a security-by-security basis, of its available-for-sale securities holdings,
including fixed maturity securities, equity securities and perpetual hybrid
securities, in accordance with its impairment policy in order to evaluate
whether such investments are other-than-temporarily impaired.
34
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
NET UNREALIZED INVESTMENT GAINS (LOSSES)
The components of net unrealized investment gains (losses), included in
accumulated other comprehensive income (loss), were as follows:
[Enlarge/Download Table]
YEARS ENDED DECEMBER 31,
-----------------------
2011 2010 2009
------ ------ ------
(IN MILLIONS)
Fixed maturity securities................................................. $1,057 $ 331 $ (33)
Fixed maturity securities with noncredit OTTI losses in accumulated other
comprehensive income (loss)............................................. (6) (6) (4)
------ ----- -----
Total fixed maturity securities...................................... 1,051 325 (37)
Equity securities......................................................... -- -- (1)
Derivatives............................................................... 126 (73) --
Short-term investments.................................................... (1) -- (9)
------ ----- -----
Subtotal............................................................. 1,176 252 (47)
------ ----- -----
Amounts allocated from:
Insurance liability loss recognition..................................... (61) (34) --
DAC related to noncredit OTTI losses recognized in accumulated other
comprehensive income (loss)............................................ -- 1 --
DAC...................................................................... (54) (53) (6)
------ ----- -----
Subtotal............................................................. (115) (86) (6)
Deferred income tax benefit (expense) related to noncredit OTTI losses
recognized in accumulated other comprehensive income (loss)............. 2 2 2
Deferred income tax benefit (expense)..................................... (373) (61) 16
------ ----- -----
Net unrealized investment gains (losses).................................. $ 690 $ 107 $ (35)
====== ===== =====
The changes in fixed maturity securities with noncredit OTTI losses included
in accumulated other comprehensive income (loss), were as follows:
[Enlarge/Download Table]
DECEMBER 31,
--------------
2011 2010
------ ------
(IN MILLIONS)
Balance, beginning of period...................................................... $ (6) $ (4)
Noncredit OTTI losses recognized (1).............................................. 2 (5)
Securities sold with previous noncredit OTTI loss................................. 2 --
Subsequent changes in estimated fair value........................................ (4) 3
------ ------
Balance, end of period............................................................ $ (6) $ (6)
====== ======
--------
(1)Noncredit OTTI losses recognized, net of DAC, were $1 million and ($4)
million for the years ended December 31, 2011 and 2010, respectively.
35
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The changes in net unrealized investment gains (losses) were as follows:
[Enlarge/Download Table]
YEARS ENDED DECEMBER 31,
----------------------
2011 2010 2009
------ ------ ------
(IN MILLIONS)
Balance, beginning of period........................................... $ 107 $ (35) $ (274)
Fixed maturity securities on which noncredit OTTI losses have been
recognized........................................................... -- (2) (4)
Unrealized investment gains (losses) during the year................... 924 301 432
Unrealized investment gains (losses) relating to:
Insurance liability gain (loss) recognition........................... (27) (34) --
DAC related to noncredit OTTI losses recognized in accumulated other
comprehensive income (loss)......................................... (1) 1 --
DAC................................................................... (1) (47) (59)
Deferred income tax benefit (expense) related to noncredit OTTI losses
recognized in accumulated other comprehensive income (loss).......... -- -- 2
Deferred income tax benefit (expense).................................. (312) (77) (132)
------ ------ ------
Balance, end of period................................................. $ 690 $ 107 $ (35)
====== ====== ======
Change in net unrealized investment gains (losses)..................... $ 583 $ 142 $ 239
====== ====== ======
36
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
CONTINUOUS GROSS UNREALIZED LOSSES AND OTTI LOSSES FOR FIXED MATURITY AND
EQUITY SECURITIES AVAILABLE-FOR-SALE BY SECTOR
The following tables present the estimated fair value and gross unrealized
losses of fixed maturity and equity securities in an unrealized loss position,
aggregated by sector and by length of time that the securities have been in a
continuous unrealized loss position. The unrealized loss amounts presented
below include the noncredit component of OTTI loss. Fixed maturity securities
on which a noncredit OTTI loss has been recognized in accumulated other
comprehensive income (loss) are categorized by length of time as being "less
than 12 months" or "equal to or greater than 12 months" in a continuous
unrealized loss position based on the point in time that the estimated fair
value initially declined to below the amortized cost basis and not the period
of time since the unrealized loss was deemed a noncredit OTTI loss.
[Enlarge/Download Table]
DECEMBER 31, 2011
--------------------------------------------------------------
EQUAL TO OR GREATER
LESS THAN 12 MONTHS THAN 12 MONTHS TOTAL
-------------------- -------------------- --------------------
ESTIMATED GROSS ESTIMATED GROSS ESTIMATED GROSS
FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED
VALUE LOSSES VALUE LOSSES VALUE LOSSES
--------- ---------- --------- ---------- --------- ----------
(IN MILLIONS, EXCEPT NUMBER OF SECURITIES)
FIXED MATURITY SECURITIES:
U.S. corporate securities................... $ 136 $ 7 $ 84 $ 17 $ 220 $ 24
Foreign corporate securities................ 213 6 12 8 225 14
U.S. Treasury and agency securities......... 118 -- -- -- 118 --
RMBS........................................ 214 18 92 19 306 37
State and political subdivision securities.. -- -- 22 4 22 4
CMBS........................................ 9 1 15 1 24 2
ABS......................................... 95 1 26 6 121 7
Foreign government securities............... 15 1 -- -- 15 1
------ ----- ------ ----- ------- -----
Total fixed maturity securities............ $ 800 $ 34 $ 251 $ 55 $ 1,051 $ 89
====== ===== ====== ===== ======= =====
EQUITY SECURITIES:
Non-redeemable preferred stock.............. $ 1 $ -- $ -- $ -- $ 1 $ --
------ ----- ------ ----- ------- -----
Total equity securities.................... $ 1 $ -- $ -- $ -- $ 1 $ --
====== ===== ====== ===== ======= =====
Total number of securities in an unrealized
loss position............................. 142 91
====== ======
37
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
[Enlarge/Download Table]
DECEMBER 31, 2010
--------------------------------------------------------------
EQUAL TO OR GREATER
LESS THAN 12 MONTHS THAN 12 MONTHS TOTAL
-------------------- -------------------- --------------------
ESTIMATED GROSS ESTIMATED GROSS ESTIMATED GROSS
FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED
VALUE LOSSES VALUE LOSSES VALUE LOSSES
--------- ---------- --------- ---------- --------- ----------
(IN MILLIONS, EXCEPT NUMBER OF SECURITIES)
FIXED MATURITY SECURITIES:
U.S. corporate securities................... $ 275 $ 9 $ 164 $ 25 $ 439 $ 34
Foreign corporate securities................ 111 2 45 5 156 7
U.S. Treasury and agency securities......... 462 18 52 10 514 28
RMBS........................................ 88 2 167 26 255 28
State and political subdivision securities.. 350 15 17 8 367 23
CMBS........................................ 24 -- 27 3 51 3
ABS......................................... 5 -- 40 9 45 9
Foreign government securities............... 9 -- -- -- 9 --
-------- ----- ------ ----- ------- -----
Total fixed maturity securities............ $ 1,324 $ 46 $ 512 $ 86 $ 1,836 $ 132
======== ===== ====== ===== ======= =====
EQUITY SECURITIES:
Non-redeemable preferred stock.............. $ -- $ -- $ 1 $ 1 $ 1 $ 1
-------- ----- ------ ----- ------- -----
Total equity securities.................... $ -- $ -- $ 1 $ 1 $ 1 $ 1
======== ===== ====== ===== ======= =====
Total number of securities in an unrealized
loss position............................. 167 127
======== ======
AGING OF GROSS UNREALIZED LOSSES AND OTTI LOSSES FOR FIXED MATURITY AND EQUITY
SECURITIES AVAILABLE-FOR-SALE
The following tables present the cost or amortized cost, gross unrealized
losses, including the portion of OTTI loss on fixed maturity securities
recognized in accumulated other comprehensive income (loss), gross unrealized
losses as a percentage of cost or amortized cost and number of securities for
fixed maturity and equity securities where the estimated fair value had
declined and remained below cost or amortized cost by less than 20%, or 20% or
more at:
[Enlarge/Download Table]
DECEMBER 31, 2011
-------------------------------------------------------------------
COST OR AMORTIZED COST GROSS UNREALIZED LOSSES NUMBER OF SECURITIES
---------------------- ---------------------- --------------------
LESS THAN 20% OR LESS THAN 20% OR LESS THAN 20% OR
20% MORE 20% MORE 20% MORE
----------- -------- ----------- -------- ----------- --------
(IN MILLIONS, EXCEPT NUMBER OF SECURITIES)
FIXED MATURITY SECURITIES:
Less than six months..................... $ 657 $ 102 $ 14 $ 25 113 17
Six months or greater but less than nine
months................................. 122 19 13 6 17 5
Nine months or greater but less than
twelve months.......................... 38 -- 2 -- 6 --
Twelve months or greater................. 165 37 16 13 64 10
------ ------ ------ ------
Total................................... $ 982 $ 158 $ 45 $ 44
====== ====== ====== ======
Percentage of amortized cost............. 5% 28%
====== ======
38
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
[Enlarge/Download Table]
DECEMBER 31, 2010
-------------------------------------------------------------------
COST OR AMORTIZED COST GROSS UNREALIZED LOSSES NUMBER OF SECURITIES
---------------------- ---------------------- --------------------
LESS THAN 20% OR LESS THAN 20% OR LESS THAN 20% OR
20% MORE 20% MORE 20% MORE
----------- -------- ----------- -------- ----------- --------
(IN MILLIONS, EXCEPT NUMBER OF SECURITIES)
FIXED MATURITY SECURITIES:
Less than six months........................ $ 1,364 $ 42 $ 45 $ 10 164 7
Six months or greater but less than nine
months.................................... -- 14 -- 3 -- 3
Nine months or greater but less than twelve
months.................................... 4 3 -- 1 2 1
Twelve months or greater.................... 461 80 50 23 92 24
------- ------ ------ ------
Total...................................... $ 1,829 $ 139 $ 95 $ 37
======= ====== ====== ======
Percentage of amortized cost................ 5% 27%
====== ======
Equity securities with gross unrealized losses of 20% or more for twelve
months or greater decreased from $1 million at December 31, 2010 to $0 at
December 31, 2011.
CONCENTRATION OF GROSS UNREALIZED LOSSES AND OTTI LOSSES FOR FIXED MATURITY
AND EQUITY SECURITIES AVAILABLE-FOR-SALE
The gross unrealized losses related to fixed maturity and equity securities,
including the portion of OTTI losses on fixed maturity securities recognized in
accumulated other comprehensive income (loss) were $89 million and $133 million
at December 31, 2011 and 2010, respectively. The concentration, calculated as a
percentage of gross unrealized losses (including OTTI losses), by sector and
industry was as follows at:
[Download Table]
DECEMBER 31,
------------
2011 2010
------ ------
SECTOR:
RMBS....................................... 42% 21%
U.S. corporate securities.................. 27 26
Foreign corporate securities............... 16 6
ABS........................................ 8 7
State and political subdivision securities. 4 17
CMBS....................................... 2 2
Foreign government securities.............. 1 --
U.S. Treasury and agency securities........ -- 21
--- ---
Total..................................... 100% 100%
=== ===
INDUSTRY:
Mortgage-backed............................ 44% 23%
Finance.................................... 28 17
Asset-backed............................... 8 7
Consumer................................... 5 3
State and political subdivision securities. 4 17
Industrial................................. 2 1
U.S. Treasury and agency securities........ -- 21
Other...................................... 9 11
--- ---
Total..................................... 100% 100%
=== ===
39
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
EVALUATING TEMPORARILY IMPAIRED AVAILABLE-FOR-SALE SECURITIES
The Company held no fixed maturity securities or equity securities with a
gross unrealized loss greater than $10 million at both December 31, 2011 and
2010. The fixed maturity securities and equity securities with gross unrealized
losses decreased $44 million during the year ended December 31, 2011. The
decline in, or improvement in, gross unrealized losses for the year ended
December 31, 2011, was primarily attributable to a decrease in interest rates,
partially offset by widening credit spreads. These securities were included in
the Company's OTTI review process.
As of December 31, 2011, $19 million of unrealized losses were from fixed
maturity securities with an unrealized loss position of 20% or more of
amortized cost for six months or greater. Of the $19 million, $15 million, or
79%, are related to unrealized losses on investment grade securities.
Unrealized losses on investment grade securities are principally related to
widening credit spreads or rising interest rates since purchase. Of the $19
million, $4 million, or 21%, are related to unrealized losses on below
investment grade securities. Unrealized losses on below investment grade
securities are principally related to non-agency RMBS (primarily alternative
residential mortgage loans) and were the result of significantly wider credit
spreads resulting from higher risk premiums since purchase, largely due to
economic and market uncertainties including concerns over unemployment levels
and valuations of residential real estate supporting non-agency RMBS. As
explained further in Note 1, management evaluates these non-agency RMBS based
on actual and projected cash flows 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. See "-- Aging of Gross Unrealized Losses and OTTI Losses for
Fixed Maturity and Equity Securities Available-for-Sale" for a discussion of
equity securities with an unrealized loss position of 20% or more of cost for
12 months or greater.
In the Company's impairment review process, the duration and severity of an
unrealized loss position for equity securities are given greater weight and
consideration than for fixed maturity securities. An extended and severe
unrealized loss position on a fixed maturity security may not have any impact
on the ability of the issuer to service all scheduled interest and principal
payments and the Company's evaluation of recoverability of all contractual cash
flows or the ability to recover an amount at least equal to its amortized cost
based on the present value of the expected future cash flows to be collected.
In contrast, for an equity security, greater weight and consideration are given
by the Company to a decline in market value and the likelihood such market
value decline will recover.
With respect to common stock holdings, the Company considered the duration
and severity of the unrealized losses for securities in an unrealized loss
position of 20% or more; and the duration of unrealized losses for securities
in an unrealized loss position of less than 20% in an extended unrealized loss
position (i.e., 12 months or greater).
Based on the Company's current evaluation of available-for-sale securities in
an unrealized loss position in accordance with its impairment policy, and the
Company's current intentions and assessments (as applicable to the type of
security) about holding, selling and any requirements to sell these securities,
the Company has concluded that these securities are not other-than-temporarily
impaired.
Future OTTIs will depend primarily on economic fundamentals, issuer
performance (including changes in the present value of future cash flows
expected to be collected), changes in credit ratings, changes in collateral
valuation, changes in interest rates and changes in credit spreads. If economic
fundamentals or any of the above factors deteriorate, additional OTTIs may be
incurred in upcoming periods.
40
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
NET INVESTMENT GAINS (LOSSES)
The components of net investment gains (losses) were as follows:
[Enlarge/Download Table]
YEARS ENDED DECEMBER 31,
-----------------------
2011 2010 2009
------ ------ ------
(IN MILLIONS)
Total gains (losses) on fixed maturity securities:
Total OTTI losses recognized.................................................. $ -- $ (9) $ (18)
Less: Noncredit portion of OTTI losses transferred to and recognized in other
comprehensive income (loss)................................................. (2) 5 5
---- ---- -----
Net OTTI losses on fixed maturity securities recognized in earnings.......... (2) (4) (13)
Fixed maturity securities -- net gains (losses) on sales and disposals....... (5) 30 9
---- ---- -----
Total gains (losses) on fixed maturity securities.......................... (7) 26 (4)
---- ---- -----
Other net investment gains (losses):
Equity securities............................................................ (1) -- (2)
Mortgage loans............................................................... 2 (9) 1
Real estate joint ventures................................................... -- (1) (2)
Other limited partnership interests.......................................... (1) (1) (17)
---- ---- -----
Total net investment gains (losses)........................................ $ (7) $ 15 $ (24)
==== ==== =====
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 for the year ended December 31, 2011
and less than $1 million for the years ended December 31, 2010 and 2009,
respectively.
41
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Proceeds from sales or disposals of fixed maturity and equity securities and
the components of fixed maturity and equity securities net investment gains
(losses) were as shown in the table below. Investment gains and losses on sales
of securities are determined on a specific identification basis.
[Enlarge/Download Table]
YEARS ENDED DECEMBER 31, YEARS ENDED DECEMBER 31, YEARS ENDED DECEMBER 31,
------------------------- ----------------------- -------------------------
2011 2010 2009 2011 2010 2009 2011 2010 2009
------- ------- ------- ---- ---- ---- ------- ------- -------
FIXED MATURITY SECURITIES EQUITY SECURITIES TOTAL
------------------------- ----------------------- -------------------------
(IN MILLIONS)
Proceeds................................. $ 2,510 $ 3,329 $ 2,476 $ 5 $ 3 $ 7 $ 2,515 $ 3,332 $ 2,483
======= ======= ======= ==== ==== ==== ======= ======= =======
Gross investment gains................... $ 13 $ 52 $ 25 $ -- $ -- $ -- $ 13 $ 52 $ 25
------- ------- ------- ---- ---- ---- ------- ------- -------
Gross investment losses.................. (18) (22) (16) -- -- (2) (18) (22) (18)
------- ------- ------- ---- ---- ---- ------- ------- -------
Total OTTI losses recognized in
earnings:
Credit-related....................... (2) (4) (12) -- -- -- (2) (4) (12)
Other (1)............................ -- -- (1) (1) -- -- (1) -- (1)
------- ------- ------- ---- ---- ---- ------- ------- -------
Total OTTI losses recognized in
earnings........................... (2) (4) (13) (1) -- -- (3) (4) (13)
------- ------- ------- ---- ---- ---- ------- ------- -------
Net investment gains (losses)............ $ (7) $ 26 $ (4) $ (1) $ -- $ (2) $ (8) $ 26 $ (6)
======= ======= ======= ==== ==== ==== ======= ======= =======
--------
(1)Other OTTI losses recognized in earnings include impairments on equity
securities, impairments on perpetual hybrid securities classified within
fixed maturity securities where the primary reason for the impairment was
the severity and/or the duration of an unrealized loss position and fixed
maturity securities where there is an intent to sell or it is more likely
than not that the Company will be required to sell the security before
recovery of the decline in estimated fair value.
Fixed maturity security OTTI losses recognized in earnings related to the
following sectors and industries within the U.S. and foreign corporate
securities sector:
[Download Table]
YEARS ENDED DECEMBER 31,
------------------------
2011 2010 2009
------ ------ ------
(IN MILLIONS)
Sector:
U.S. and foreign corporate securities -- by industry:
Utility.............................................. $ -- $ 1 $ --
Finance.............................................. -- -- 10
Consumer............................................. -- -- 1
Communications....................................... -- -- 1
Other industries..................................... -- -- --
---- ---- ----
Total U.S. and foreign corporate securities........ -- 1 12
RMBS.................................................. 2 2 1
CMBS.................................................. -- 1 --
---- ---- ----
Total............................................ $ 2 $ 4 $ 13
==== ==== ====
The equity security OTTI losses recognized in earnings for the year ended
December 31, 2011 of $1 million related to financial services industry
perpetual hybrid securities classified within non-redeemable preferred stock.
42
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
CREDIT LOSS ROLLFORWARD -- ROLLFORWARD OF THE CUMULATIVE CREDIT LOSS COMPONENT
OF OTTI LOSS RECOGNIZED IN EARNINGS ON FIXED MATURITY SECURITIES STILL HELD
FOR WHICH A PORTION OF THE OTTI LOSS WAS RECOGNIZED IN OTHER COMPREHENSIVE
INCOME (LOSS)
The table below presents a rollforward of the cumulative credit loss
component of OTTI loss recognized in earnings on fixed maturity securities
still held for which a portion of the OTTI loss was recognized in other
comprehensive income (loss):
[Enlarge/Download Table]
YEARS ENDED DECEMBER 31,
---------------------------
2011 2010
---- ----
(IN MILLIONS)
Balance, at January 1,........................................................... $ 1 $ 1
Additions:
Initial impairments -- credit loss OTTI recognized on securities not previously
impaired...................................................................... -- 1
Additional impairments -- credit loss OTTI recognized on securities
previously impaired........................................................... 2 --
Reductions:
Sales (maturities, pay downs or prepayments) during the period of securities
previously impaired as credit loss OTTI....................................... (1) --
Securities impaired to net present value of expected future cash flows.......... (1) (1)
---- ----
Balance, at December 31,......................................................... $ 1 $ 1
==== ====
NET INVESTMENT INCOME
The components of net investment income were as follows:
[Download Table]
YEARS ENDED DECEMBER 31,
---------------------------
2011 2010 2009
------ ------ ------
(IN MILLIONS)
Investment income:
Fixed maturity securities......................... $ 468 $ 430 $ 332
Mortgage loans.................................... 76 53 25
Policy loans...................................... 4 4 3
Real estate joint ventures........................ -- (2) (3)
Other limited partnership interests............... 42 52 --
Cash, cash equivalents and short-term investments. -- (2) 3
Other............................................. 9 -- --
----- ----- -----
Subtotal....................................... 599 535 360
Less: Investment expenses........................ 13 15 11
----- ----- -----
Net investment income.......................... $ 586 $ 520 $ 349
===== ===== =====
See "-- Related Party Investment Transactions" for discussion of affiliated
net investment income and investment expenses included in the table above.
43
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
SECURITIES LENDING
As described more fully in Note 1, the Company participates in a securities
lending program whereby blocks of securities are loaned to third parties. These
transactions are treated as financing arrangements and the associated cash
collateral received is recorded as a liability. The Company is obligated to
return the cash collateral received to its counterparties.
Elements of the securities lending program are presented below at:
[Download Table]
DECEMBER 31,
-----------------
2011 2010
-------- --------
(IN MILLIONS)
Securities on loan: (1)
Amortized cost.................................... $ 1,153 $ 1,157
Estimated fair value.............................. $ 1,437 $ 1,175
Cash collateral on deposit from counterparties (2). $ 1,429 $ 1,192
Security collateral on deposit from counterparties. $ 37 $ --
Reinvestment portfolio -- estimated fair value..... $ 1,414 $ 1,180
--------
(1)Included within fixed maturity securities and short-term investments.
(2)Included within payables for collateral under securities loaned and other
transactions.
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 consolidated financial
statements.
INVESTED ASSETS ON DEPOSIT AND PLEDGED AS COLLATERAL
Invested assets on deposit and pledged as collateral are presented in the
table below at estimated fair value for cash and cash equivalents and fixed
maturity securities.
[Download Table]
DECEMBER 31,
---------------
2011 2010
------- -------
(IN MILLIONS)
Invested assets on deposit (1).............................. $ 7 $ 6
Invested assets pledged as collateral (2)................... 6 43
------- -------
Total invested assets on deposit and pledged as collateral. $ 13 $ 49
======= =======
--------
(1)The Company has invested assets on deposit with regulatory agencies
consisting primarily of fixed maturity securities.
(2)Certain of the Company's invested assets are pledged as collateral for
various derivative transactions. See Note 3.
44
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
MORTGAGE LOANS
Mortgage loans are summarized as follows at:
[Download Table]
DECEMBER 31,
----------------------------------------
2011 2010
------------------- -------------------
CARRYING % OF CARRYING % OF
VALUE TOTAL VALUE TOTAL
------------- ----- ------------- -----
(IN MILLIONS) (IN MILLIONS)
Mortgage loans:
Commercial...................... $ 1,314 87.1% $ 1,002 85.3%
Agricultural.................... 205 13.6 185 15.7
------- ----- ------- -----
Subtotal...................... 1,519 100.7 1,187 101.0
Valuation allowances............ (11) (0.7) (12) (1.0)
------- ----- ------- -----
Total mortgage loans, net... $ 1,508 100.0% $ 1,175 100.0%
======= ===== ======= =====
See "-- Related Party Investment Transactions" for discussion of affiliated
mortgage loans included in the table above.
The following tables present the recorded investment in mortgage loans, by
portfolio segment, by method of evaluation of credit loss, and the related
valuation allowances, by type of credit loss, at:
[Download Table]
COMMERCIAL AGRICULTURAL TOTAL
----------- ------------- -------
(IN MILLIONS)
DECEMBER 31, 2011:
Mortgage loans:
Evaluated individually for credit losses......... $ -- $ -- $ --
Evaluated collectively for credit losses......... 1,314 205 1,519
------- ----- -------
Total mortgage loans........................... 1,314 205 1,519
------- ----- -------
Valuation allowances:
Specific credit losses........................... -- -- --
Non-specifically identified credit losses........ 10 1 11
------- ----- -------
Total valuation allowances..................... 10 1 11
------- ----- -------
Mortgage loans, net of valuation allowance... $ 1,304 $ 204 $ 1,508
======= ===== =======
DECEMBER 31, 2010:
Mortgage loans:
Evaluated individually for credit losses......... $ -- $ -- $ --
Evaluated collectively for credit losses......... 1,002 185 1,187
------- ----- -------
Total mortgage loans........................... 1,002 185 1,187
------- ----- -------
Valuation allowances:
Specific credit losses........................... -- -- --
Non-specifically identified credit losses........ 12 -- 12
------- ----- -------
Total valuation allowances..................... 12 -- 12
------- ----- -------
Mortgage loans, net of valuation allowance... $ 990 $ 185 $ 1,175
======= ===== =======
45
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The following tables present the changes in the valuation allowance, by
portfolio segment:
[Download Table]
MORTGAGE LOAN VALUATION ALLOWANCES
--------------------------------
COMMERCIAL AGRICULTURAL TOTAL
----------- ------------- -------
(IN MILLIONS)
Balance at January 1, 2009..... $ 4 $ -- $ 4
Provision (release)............ 2 -- 2
Charge-offs, net of recoveries. (3) -- (3)
---- ---- ----
Balance at December 31, 2009... 3 -- 3
Provision (release)............ 9 -- 9
Charge-offs, net of recoveries. -- -- --
---- ---- ----
Balance at December 31, 2010... 12 -- 12
Provision (release)............ (2) 1 (1)
Charge-offs, net of recoveries. -- -- --
---- ---- ----
Balance at December 31, 2011... $ 10 $ 1 $ 11
==== ==== ====
Commercial Mortgage Loans -- by Credit Quality Indicators with Estimated Fair
Value. See Note 1 for a discussion of all credit quality indicators presented
herein. Presented below for the commercial mortgage loans is the recorded
investment, prior to valuation allowances, by the indicated loan-to-value ratio
categories and debt service coverage ratio categories and estimated fair value
of such mortgage loans by the indicated loan-to-value ratio categories at:
[Enlarge/Download Table]
COMMERCIAL
-------------------------------------------------------------
RECORDED INVESTMENT
-------------------------------------------
DEBT SERVICE COVERAGE RATIOS
----------------------------- % OF ESTIMATED % OF
> 1.20X 1.00X - 1.20X < 1.00X TOTAL TOTAL FAIR VALUE TOTAL
------- ------------- ------- ------- ----- ---------- -----
(IN MILLIONS) (IN MILLIONS)
DECEMBER 31, 2011:
Loan-to-value ratios:
Less than 65%......... $1,062 $ 15 $ 45 $ 1,122 85.4% $ 1,201 85.9%
65% to 75%............ 159 8 -- 167 12.7 173 12.4
76% to 80%............ 2 -- -- 2 0.2 2 0.1
Greater than 80%...... 13 8 2 23 1.7 22 1.6
------ ---- ---- ------- ----- ------- -----
Total................ $1,236 $ 31 $ 47 $ 1,314 100.0% $ 1,398 100.0%
====== ==== ==== ======= ===== ======= =====
DECEMBER 31, 2010:
Loan-to-value ratios:
Less than 65%......... $ 722 $ -- $ 30 $ 752 75.0% $ 797 75.5%
65% to 75%............ 142 10 25 177 17.7 186 17.6
76% to 80%............ 14 -- -- 14 1.4 15 1.4
Greater than 80%...... 32 27 -- 59 5.9 58 5.5
------ ---- ---- ------- ----- ------- -----
Total................ $ 910 $ 37 $ 55 $ 1,002 100.0% $ 1,056 100.0%
====== ==== ==== ======= ===== ======= =====
46
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Agricultural Mortgage Loans -- by Credit Quality Indicator. The recorded
investment in agricultural mortgage loans, prior to valuation allowances, by
credit quality indicator, is as shown below.
[Download Table]
AGRICULTURAL
----------------------------------------
DECEMBER 31,
----------------------------------------
2011 2010
------------------- -------------------
RECORDED % OF RECORDED % OF
INVESTMENT TOTAL INVESTMENT TOTAL
------------- ----- ------------- -----
(IN MILLIONS) (IN MILLIONS)
Loan-to-value ratios:
Less than 65%...................... $ 205 100.0% $ 185 100.0%
------- ----- ------ -----
Total............................ $ 205 100.0% $ 185 100.0%
======= ===== ====== =====
Past Due and Interest Accrual Status of Mortgage Loans. The Company has a
high quality, well performing, mortgage loan portfolio, with 100% of all
mortgage loans classified as performing at both December 31, 2011 and 2010. The
Company defines delinquent mortgage loans consistent with industry practice,
when interest and principal payments are past due, as follows: commercial
mortgage loans -- 60 days or more; and agricultural mortgage loans -- 90 days
or more. The Company had no loans past due and no loans in non-accrual status
at both December 31, 2011 and 2010.
Impaired Mortgage Loans. The Company had one impaired commercial mortgage
loan with an unpaid principal balance, recorded investment and carrying value,
which was modified in a troubled debt restructuring, of $2 million, at
December 31, 2011. The average investment on such mortgage loan was $1 million
for the year ended December 31, 2011. The Company had no impaired mortgage loan
at December 31, 2010. The Company did not recognize interest income on impaired
mortgage loans during the years ended December 31, 2011 and 2010.
Mortgage Loans Modified in a Troubled Debt Restructuring. See Note 1 for a
discussion of loan modifications that are classified as troubled debt
restructuring and the types of concessions typically granted. At December 31,
2011, the Company had one commercial mortgage loan modified during the period
in a troubled debt restructuring with a pre-modification and post-modification
carrying value of $2 million.
During the previous 12 months, the Company had no mortgage loans modified in
a troubled debt restructuring with a subsequent payment default at December 31,
2011. Payment default is determined in the same manner as delinquency status --
when interest and principal payments are past due as follows: commercial
mortgage loans -- 60 days or more; and agricultural mortgage loans -- 90 days
or more.
REAL ESTATE JOINT VENTURES
The carrying value of real estate joint ventures was $30 million at both
December 31, 2011 and 2010. There were no impairments of real estate joint
ventures for the year ended December 31, 2011. Impairments of real estate joint
ventures were $2 million for each of the years ended December 31, 2010 and 2009.
OTHER LIMITED PARTNERSHIP INTERESTS
The carrying value of other limited partnership interests (which primarily
represent ownership interests in pooled investment funds that principally make
private equity investments in companies in the United States and
47
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
overseas) was $535 million and $456 million at December 31, 2011 and 2010,
respectively. Included within other limited partnership interests were
$126 million and $105 million at December 31, 2011 and 2010, respectively, of
investments in hedge funds. There were no impairments of cost method other
limited partnership interests for the year ended December 31, 2011. Impairments
of other limited partnership interests, principally other limited partnership
interests accounted for under the cost method, were $1 million and $17 million
for the years ended December 31, 2010 and 2009, respectively.
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 $550 million as of December 31, 2011. 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 $473 million
as of December 31, 2011. Except for certain real estate joint ventures, the
Company's investments in real estate funds and other limited partnership
interests are generally of a passive nature in that the Company does not
participate in the management of the entities.
As further described in Note 1, the Company generally records its share of
earnings in its equity method investments using a three-month lag methodology
and within net investment income. Aggregate net investment income from these
equity method real estate joint ventures, real estate funds and other limited
partnership interests exceeded 10% of the Company's consolidated pre-tax income
(loss) for one of the three most recent annual periods: 2010. The Company is
providing the following aggregated summarized financial data for such equity
method investments, for the three most recent 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.
As of, and for the year ended December 31, 2011, the aggregated summarized
financial data presented below reflects the latest available financial
information. Aggregate total assets of these entities totaled $134.4 billion
and $103.1 billion as of December 31, 2011 and 2010, respectively. Aggregate
total liabilities of these entities totaled $7.3 billion and $7.4 billion as of
December 31, 2011 and 2010, respectively. Aggregate net income (loss) of these
entities totaled $5.0 billion, $11.0 billion and $12.1 billion for the years
ended December 31, 2011, 2010 and 2009, respectively. Aggregate net income
(loss) from real estate joint ventures, real estate funds and other limited
partnership interests is primarily comprised of investment income, including
recurring investment income and realized and unrealized investment gains
(losses).
OTHER INVESTED ASSETS
The following table presents the carrying value of the Company's other
invested assets by type at:
[Enlarge/Download Table]
DECEMBER 31,
----------------------------------------
2011 2010
------------------- -------------------
CARRYING % OF CARRYING % OF
VALUE TOTAL VALUE TOTAL
------------- ------ ------------- ------
(IN MILLIONS) (IN MILLIONS)
Freestanding derivatives with positive estimated fair values. $ 356 58.7% $ 68 31.6%
Loans to affiliates.......................................... 125 20.6 -- --
Leveraged leases, net of non-recourse debt................... 64 10.6 56 26.1
Tax credit partnerships...................................... 61 10.1 91 42.3
------ ----- ------ -----
Total....................................................... $ 606 100.0% $ 215 100.0%
====== ===== ====== =====
48
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
See Note 3 for information regarding the freestanding derivatives with
positive estimated fair values. Loans to affiliates, some of which are
regulated, are used by the affiliates to assist in meeting their capital
requirements. See "-- Related Party Investment Transactions" for information
regarding loans to affiliates. See "Leveraged Leases" for the composition of
leveraged leases. Tax credit partnerships are established for the purpose of
investing in low-income housing and other social causes, where the primary
return on investment is in the form of income tax credits, and are accounted
for under the equity method or under the effective yield method.
Leveraged Leases
Investment in leveraged leases, included in other invested assets, consisted
of the following:
[Enlarge/Download Table]
DECEMBER 31,
--------------
2011 2010
------ ------
(IN MILLIONS)
Rental receivables, net.............................................................. $ 92 $ 92
Estimated residual values............................................................ 14 14
------ ------
Subtotal........................................................................... 106 106
Unearned income...................................................................... (42) (50)
------ ------
Investment in leveraged leases..................................................... $ 64 $ 56
====== ======
Rental receivables are generally due in periodic installments. The remaining
payment periods were 21 years. For rental receivables, the primary credit
quality indicator is whether the rental receivable is performing or
non-performing, which is assessed monthly. The Company generally defines
non-performing rental receivables as those that are 90 days or more past due.
As of December 31, 2011 and 2010, all rental receivables were performing.
The deferred income tax liability related to leveraged leases was $35 million
and $4 million at December 31, 2011 and 2010, respectively.
The components of income from investment in leveraged leases, excluding
realized gains (losses) were as follows:
[Enlarge/Download Table]
YEARS ENDED DECEMBER 31,
----------------------------
2011 2010 2009
------ ------ ------
(IN MILLIONS)
Net income from investment in leveraged leases............................. $ 8 $ -- $ --
Less: Income tax expense on leveraged leases............................... (3) -- --
---- ----- -----
Net investment income after income tax from investment in leveraged leases. $ 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 $44 million and $221 million at December 31, 2011 and
2010, respectively.
49
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
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 investments. For each investment, the
excess of the cash 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 table below presents the purchased credit impaired fixed maturity
securities, held at:
[Download Table]
DECEMBER 31,
----------------
2011 2010
------ ------
(IN MILLIONS)
Outstanding principal and interest balance (1).............. $ 315 $ 20
Carrying value (2).......................................... $ 229 $ 19
--------
(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 purchased credit impaired
fixed maturity securities acquired during the periods, as of their respective
acquisition dates:
[Download Table]
DECEMBER 31,
----------------
2011 2010
------ ------
(IN MILLIONS)
Contractually required payments (including interest)........ $ 482 $ 24
Cash flows expected to be collected (1)..................... $ 421 $ 24
Fair value of investments acquired.......................... $ 238 $ 19
--------
(1)Represents undiscounted principal and interest cash flow expectations, at
the date of acquisition.
The following table presents activity for the accretable yield on purchased
credit impaired fixed maturity securities for:
[Download Table]
DECEMBER 31,
---------------
2011 2010
------- ------
(IN MILLIONS)
Accretable yield, January 1,................................ $ 5 $ --
Investments purchased....................................... 183 5
Accretion recognized in earnings............................ (7) --
Reclassification (to) from nonaccretable difference......... 6 --
------- ------
Accretable yield, December 31,.............................. $ 187 $ 5
======= ======
50
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
VARIABLE INTEREST ENTITIES
The Company holds investments in certain entities that are VIEs. The
following table presents the carrying amount and maximum exposure to loss
relating to VIEs for which the Company holds significant variable interests but
is not the primary beneficiary and which have not been consolidated at:
[Enlarge/Download Table]
DECEMBER 31,
-----------------------------------------
2011 2010
-------------------- --------------------
MAXIMUM MAXIMUM
CARRYING EXPOSURE CARRYING EXPOSURE
AMOUNT TO LOSS (1) AMOUNT TO LOSS (1)
-------- ----------- -------- -----------
(IN MILLIONS)
Fixed maturity securities available-for-sale:
RMBS (2)..................................... $ 1,313 $ 1,313 $ 984 $ 984
CMBS (2)..................................... 567 567 513 513
ABS (2)...................................... 365 365 409 409
Foreign corporate securities................. 79 79 56 56
U.S. corporate securities.................... 30 30 24 24
Other limited partnership interests........... 446 761 409 763
------- ------- ------- -------
Total...................................... $ 2,800 $ 3,115 $ 2,395 $ 2,749
======= ======= ======= =======
--------
(1)The maximum exposure to loss relating to the fixed maturity securities is
equal to the carrying amounts or carrying amounts of retained interests. The
maximum exposure to loss relating to the other limited partnership interests
is equal to the carrying amounts plus any unfunded commitments of the
Company. 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 10, the Company makes commitments to fund partnership
investments in the normal course of business. Excluding these commitments, the
Company did not provide financial or other support to investees designated as
VIEs during the years ended December 31, 2011, 2010 and 2009.
RELATED PARTY INVESTMENT TRANSACTIONS
In the normal course of business, the Company transfers invested assets,
primarily consisting of fixed maturity securities, to and from affiliates.
Invested assets transferred to and from affiliates were as follows:
[Enlarge/Download Table]
YEARS ENDED DECEMBER 31,
---------------------------
2011 2010 2009
------ ------ ------
(IN MILLIONS)
Estimated fair value of invested assets transferred to affiliates... $ -- $ 105 $ 9
Amortized cost of invested assets transferred to affiliates......... $ -- $ 97 $ 13
Net investment gains (losses) recognized on transfers............... $ -- $ 8 $ (4)
Estimated fair value of invested assets transferred from affiliates. $ -- $ 46 $ 155
During 2009, the Company loaned $120 million to wholly-owned real estate
subsidiaries of an affiliate, Metropolitan Life Insurance Company ("MLIC"),
which are included in mortgage loans. The carrying value of
51
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
these loans was $118 million and $119 million at December 31, 2011 and 2010,
respectively. A loan of $80 million bears interest at 7.26% and is due in
quarterly principal and interest payments of $2 million through January 2020,
when the principal balance is due. A loan of $40 million bears interest at
7.01% with quarterly interest only payments of $1 million through January 2020,
when the principal balance is due. The loans 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 loans was $9 million for
both years ended December 31, 2011 and 2010, and less than $1 million for the
year ended December 31, 2009.
During 2011, the Company loaned $125 million to Exeter Reassurance Company
Ltd. ("Exeter"), an affiliate. The loan was outstanding at December 31, 2011,
and is included in other invested assets. The loan is due on December 16, 2021,
and bears interest, payable semi-annually, at 5.86%. Both the principal and
interest payments have been guaranteed by MetLife. Net investment income from
this loan was less than $1 million for the year ended December 31, 2011.
The Company receives investment administrative services from an affiliate.
These investment expenses were $10 million, $8 million and $4 million for the
years ended December 31, 2011, 2010 and 2009, respectively. The Company also
had additional affiliated net investment income of less than $1 million, ($2)
million and $2 million for the years ended December 31, 2011, 2010 and 2009,
respectively.
3. DERIVATIVE FINANCIAL INSTRUMENTS
ACCOUNTING FOR DERIVATIVE FINANCIAL INSTRUMENTS
See Note 1 for a description of the Company's accounting policies for
derivative financial instruments.
See Note 4 for information about the fair value hierarchy for derivatives.
52
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
PRIMARY RISKS MANAGED BY DERIVATIVE FINANCIAL INSTRUMENTS
The Company is exposed to various risks relating to its ongoing business
operations, including interest rate risk, foreign currency risk, credit risk
and equity market risk. The Company uses a variety of strategies to manage
these risks, including the use of derivative instruments. The following table
presents the gross notional amount, estimated fair value and primary underlying
risk exposure of the Company's derivative financial instruments, excluding
embedded derivatives, held at:
[Enlarge/Download Table]
DECEMBER 31,
-------------------------------------------------------
2011 2010
--------------------------- ---------------------------
ESTIMATED FAIR ESTIMATED FAIR
VALUE (1) VALUE (1)
PRIMARY UNDERLYING NOTIONAL ------------------ NOTIONAL ------------------
RISK EXPOSURE INSTRUMENT TYPE AMOUNT ASSETS LIABILITIES AMOUNT ASSETS LIABILITIES
------------------ -------------------------- -------- ------ ----------- -------- ------ -----------
(IN MILLIONS)
Interest rate Interest rate swaps....... $ 1,029 $ 154 $ 13 $ 900 $ 15 $ 25
Interest rate floors...... 2,000 100 -- 2,000 45 --
Interest rate caps........ 2,000 1 -- 1,500 1 --
Interest rate futures..... 101 1 -- 780 2 3
Interest rate forwards.... 410 87 -- 485 -- 48
Foreign currency Foreign currency swaps.... 177 9 3 117 2 6
Foreign currency forwards. -- -- -- 34 -- --
Credit Credit default swaps...... 519 4 5 239 3 2
Equity market Equity options............ 23 -- -- 15 -- --
------- ----- ---- ------- ---- ----
Total................... $ 6,259 $ 356 $ 21 $ 6,070 $ 68 $ 84
======= ===== ==== ======= ==== ====
--------
(1)The estimated fair value of all derivatives in an asset position is reported
within other invested assets in the consolidated balance sheets and the
estimated fair value of all derivatives in a liability position is reported
within other liabilities in the consolidated balance sheets.
The following table presents the gross notional amount of derivative
financial instruments by maturity at December 31, 2011:
[Enlarge/Download Table]
REMAINING LIFE
-------------------------------------------------------------
AFTER ONE YEAR AFTER FIVE YEARS
ONE YEAR OR THROUGH FIVE THROUGH TEN AFTER TEN
LESS YEARS YEARS YEARS TOTAL
----------- -------------- ---------------- --------- -------
(IN MILLIONS)
Interest rate swaps....... $ -- $ 468 $ -- $ 561 $ 1,029
Interest rate floors...... -- 2,000 -- -- 2,000
Interest rate caps........ 500 1,500 -- -- 2,000
Interest rate futures..... 101 -- -- -- 101
Interest rate forwards.... 150 260 -- -- 410
Foreign currency swaps.... -- 21 88 68 177
Foreign currency forwards. -- -- -- -- --
Credit default swaps...... 1 518 -- -- 519
Equity options............ 23 -- -- -- 23
------ ------- ---- ----- -------
Total.................. $ 775 $ 4,767 $ 88 $ 629 $ 6,259
====== ======= ==== ===== =======
53
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Interest rate swaps are used by the Company primarily to reduce market risks
from changes in interest rates and to alter interest rate exposure arising from
mismatches between assets and liabilities (duration mismatches). In an interest
rate swap, the Company agrees with another party to exchange, at specified
intervals, the difference between fixed rate and floating rate interest amounts
as calculated by reference to an agreed notional principal amount. These
transactions are entered into pursuant to master agreements that provide for a
single net payment to be made by the counterparty at each due date. The Company
utilizes interest rate swaps in fair value, cash flow and non-qualifying
hedging relationships.
The Company purchases interest rate caps and floors primarily to protect its
floating rate liabilities against rises in interest rates above a specified
level, and against interest rate exposure arising from mismatches between
assets and liabilities (duration mismatches), as well as to protect its minimum
rate guarantee liabilities against declines in interest rates below a specified
level, respectively. In certain instances, the Company locks in the economic
impact of existing purchased caps and floors by entering into offsetting
written caps and floors. The Company utilizes interest rate caps and floors in
non-qualifying hedging relationships.
In exchange-traded interest rate (Treasury and swap) futures transactions,
the Company agrees to purchase or sell a specified number of contracts, the
value of which is determined by the different classes of interest rate
securities, and to post variation margin on a daily basis in an amount equal to
the difference in the daily market values of those contracts. The Company
enters into exchange-traded futures with regulated futures commission merchants
that are members of the exchange. Exchange-traded interest rate (Treasury and
swap) futures are used primarily to hedge mismatches between the duration of
assets in a portfolio and the duration of liabilities supported by those
assets, to hedge against changes in value of securities the Company owns or
anticipates acquiring and to hedge against changes in interest rates on
anticipated liability issuances by replicating Treasury or swap curve
performance. The Company utilizes exchange-traded interest rate futures in
non-qualifying hedging relationships.
The Company writes covered call options on its portfolio of U.S. Treasury
securities as an income generation strategy. In a covered call transaction, the
Company receives a premium at the inception of the contract in exchange for
giving the derivative counterparty the right to purchase the referenced
security from the Company at a predetermined price. The call option is
"covered" because the Company owns the referenced security over the term of the
option. Covered call options are included in interest rate options. The Company
utilizes covered call options in non-qualifying hedging relationships.
The Company enters into interest rate forwards to buy and sell securities.
The price is agreed upon at the time of the contract and payment for such a
contract is made at a specified future date. The Company utilizes interest rate
forwards in cash flow and non-qualifying hedging relationships.
Foreign currency derivatives, including foreign currency swaps and foreign
currency forwards, are used by the Company to reduce the risk from fluctuations
in foreign currency exchange rates associated with its assets and liabilities
denominated in foreign currencies.
In a foreign currency swap transaction, the Company agrees with another party
to exchange, at specified intervals, the difference between one currency and
another at a fixed exchange rate, generally set at inception, calculated by
reference to an agreed upon principal amount. The principal amount of each
currency is exchanged at the inception and termination of the currency swap by
each party. The Company utilizes foreign currency swaps in cash flow and
non-qualifying hedging relationships.
54
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
In a foreign currency forward transaction, the Company agrees with another
party to deliver a specified amount of an identified currency at a specified
future date. The price is agreed upon at the time of the contract and payment
for such a contract is made in a different currency at the specified future
date. The Company utilizes foreign currency forwards in non-qualifying hedging
relationships.
Certain credit default swaps are used by the Company to hedge against
credit-related changes in the value of its investments. In a credit default
swap transaction, the Company agrees with another party, at specified
intervals, to pay a premium to hedge credit risk. If a credit event, as defined
by the contract, occurs, 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. The Company
utilizes credit default swaps in non-qualifying hedging relationships.
Credit default swaps are also used to synthetically create investments that
are either more expensive to acquire or otherwise unavailable in the cash
markets. These transactions are a combination of a derivative and 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 index options are used by the Company primarily to hedge minimum
guarantees embedded in certain variable annuity products offered by the
Company. To hedge against adverse changes in equity indices, the Company enters
into contracts to sell the equity index within a limited time at a contracted
price. The contracts will be net settled in cash based on differentials in the
indices at the time of exercise and the strike price. Certain of these
contracts may also contain settlement provisions linked to interest rates. In
certain instances, the Company may enter into a combination of transactions to
hedge adverse changes in equity indices within a pre-determined range through
the purchase and sale of options. Equity index options are included in equity
options in the preceding table. The Company utilizes equity index options in
non-qualifying hedging relationships.
HEDGING
The following table presents the gross notional amount and estimated fair
value of derivatives designated as hedging instruments by type of hedge
designation at:
[Enlarge/Download Table]
DECEMBER 31,
-----------------------------------------------------------
2011 2010
----------------------------- -----------------------------
ESTIMATED FAIR VALUE ESTIMATED FAIR VALUE
NOTIONAL -------------------- NOTIONAL --------------------
DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS AMOUNT ASSETS LIABILITIES AMOUNT ASSETS LIABILITIES
--------------------------------------------- -------- ------ ----------- -------- ------ -----------
(IN MILLIONS)
Fair value hedges:
Interest rate swaps.................. $ 22 $ -- $ 1 $ 10 $ -- $ --
----- ----- ----- ----- ----- ----
Subtotal........................... 22 -- 1 10 -- --
----- ----- ----- ----- ----- ----
Cash flow hedges:
Foreign currency swaps............... 128 7 2 76 1 3
Interest rate swaps.................. 165 47 -- 295 1 22
Interest rate forwards............... 410 87 -- 485 -- 48
----- ----- ----- ----- ----- ----
Subtotal........................... 703 141 2 856 2 73
----- ----- ----- ----- ----- ----
Total qualifying hedges............ $ 725 $ 141 $ 3 $ 866 $ 2 $ 73
===== ===== ===== ===== ===== ====
55
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The following table presents the gross notional amount and estimated fair
value of derivatives that were not designated or do not qualify as hedging
instruments by derivative type at:
[Enlarge/Download Table]
DECEMBER 31,
-----------------------------------------------------------
2011 2010
----------------------------- -----------------------------
ESTIMATED FAIR VALUE ESTIMATED FAIR VALUE
DERIVATIVES NOT DESIGNATED OR NOT NOTIONAL -------------------- NOTIONAL --------------------
QUALIFYING AS HEDGING INSTRUMENTS AMOUNT ASSETS LIABILITIES AMOUNT ASSETS LIABILITIES
------------------------------------------ -------- ------ ----------- -------- ------ -----------
(IN MILLIONS)
Interest rate swaps........................ $ 842 $ 107 $ 12 $ 595 $ 14 $ 3
Interest rate floors....................... 2,000 100 -- 2,000 45 --
Interest rate caps......................... 2,000 1 -- 1,500 1 --
Interest rate futures...................... 101 1 -- 780 2 3
Foreign currency swaps..................... 49 2 1 41 1 3
Foreign currency forwards.................. -- -- -- 34 -- --
Credit default swaps....................... 519 4 5 239 3 2
Equity options............................. 23 -- -- 15 -- --
------- ----- ----- -------- ----- -----
Total non-designated or non-qualifying
derivatives........................... $ 5,534 $ 215 $ 18 $ 5,204 $ 66 $ 11
======= ===== ===== ======== ===== =====
NET DERIVATIVE GAINS (LOSSES)
The components of net derivative gains (losses) were as follows:
[Download Table]
YEARS ENDED DECEMBER 31,
-----------------------
2011 2010 2009
------ ------ ------
(IN MILLIONS)
Derivatives and hedging gains (losses) (1). $ 191 $ 3 $ (75)
Embedded derivatives....................... 510 112 (528)
----- ----- ------
Total net derivative gains (losses)..... $ 701 $ 115 $ (603)
===== ===== ======
--------
(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 Company recognized insignificant net investment income from settlement
payments related to qualifying hedges for the years ended December 31, 2011,
2010 and 2009.
The Company recognized $36 million, $20 million and $15 million of net
derivative gains (losses) from settlement payments related to non-qualifying
hedges for the years ended December 31, 2011, 2010 and 2009, respectively.
FAIR VALUE HEDGES
The Company designates and accounts for interest rate swaps to convert fixed
rate investments to floating rate investments as fair value hedges when they
have met the requirements of fair value hedging.
56
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The Company recognized insignificant amounts in net derivative gains (losses)
representing the ineffective portion of all fair value hedges for the years
ended December 31, 2011 and 2010. Changes in the fair value of the derivatives
and the hedged items were insignificant for the years ended December 31, 2011
and 2010. The Company did not have any fair value hedges during the year ended
December 31, 2009.
All components of each derivative's gain or loss were included in the
assessment of hedge effectiveness.
CASH FLOW HEDGES
The Company designates and accounts for the following as cash flow hedges
when they have met the requirements of cash flow hedging: (i) foreign currency
swaps to hedge the foreign currency cash flow exposure of foreign currency
denominated investments and liabilities; (ii) interest rate forwards to lock in
the price to be paid for forward purchases of investments; and (iii) interest
rate swaps and interest rate forwards to hedge the forecasted purchases of
fixed-rate investments.
For the years ended December 31, 2011 and 2010, the Company recognized
insignificant amounts of net derivative gains (losses) which represented the
ineffective portion of all cash flow hedges. For the year ended December 31,
2009, the Company did not recognize any net derivative gains (losses) which
represented the ineffective portion of all cash flow hedges. In certain
instances, the Company discontinued cash flow hedge accounting because the
forecasted transactions did not occur on the anticipated date, within two
months of that date, or were no longer probable of occurring. The net amount
reclassified into net derivative gains (losses) for the year ended December 31,
2011 related to such discontinued cash flow hedges was $1 million. For the
years ended December 31, 2010 and 2009, there were no instances in which the
Company discontinued cash flow hedge accounting because the forecasted
transactions did not occur on the anticipated date, within two months of that
date, or were no longer probable of occurring.
At December 31, 2011 and 2010, the maximum length of time over which the
Company was hedging its exposure to variability in future cash flows for
forecasted transactions did not exceed five years and six years, respectively.
The following table presents the components of accumulated other
comprehensive income (loss), before income tax, related to cash flow hedges:
[Enlarge/Download Table]
YEARS ENDED DECEMBER 31,
-----------------------
2011 2010 2009
------ ------ ------
(IN MILLIONS)
Accumulated other comprehensive income (loss), balance at January 1,.......... $ (73) $ (1) $ (2)
Gains (losses) deferred in other comprehensive income (loss) on the effective
portion of cash flow hedges................................................. 208 (70) 7
Amounts reclassified to net derivative gains (losses)......................... (9) (2) (6)
----- ----- ----
Accumulated other comprehensive income (loss), balance at December 31,........ $ 126 $ (73) $ (1)
===== ===== ====
At December 31, 2011, insignificant amounts of deferred net gains (losses) on
derivatives in accumulated other comprehensive income (loss) were expected to
be reclassified to earnings within the next 12 months.
57
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The following table presents the effects of derivatives in cash flow hedging
relationships on the consolidated statements of operations and the consolidated
statements of stockholder's equity:
[Enlarge/Download Table]
AMOUNT OF GAINS AMOUNT AND LOCATION
(LOSSES) DEFERRED OF GAINS (LOSSES)
IN ACCUMULATED OTHER RECLASSIFIED FROM
DERIVATIVES IN CASH FLOW COMPREHENSIVE INCOME ACCUMULATED OTHER COMPREHENSIVE
HEDGING RELATIONSHIPS (LOSS) ON DERIVATIVES INCOME (LOSS) INTO INCOME (LOSS)
-------------------------------------- --------------------- --------------------------------
NET DERIVATIVE
GAINS (LOSSES)
--------------------------------
(IN MILLIONS)
FOR THE YEAR ENDED DECEMBER 31, 2011:
Interest rate swaps.................. $ 57 $ 1
Foreign currency swaps............... 7 (1)
Interest rate forwards............... 144 9
---------- ---------
Total.............................. $ 208 $ 9
========== =========
FOR THE YEAR ENDED DECEMBER 31, 2010:
Interest rate swaps.................. $ (21) $ --
Foreign currency swaps............... (1) --
Interest rate forwards............... (48) 2
---------- ---------
Total.............................. $ (70) $ 2
========== =========
FOR THE YEAR ENDED DECEMBER 31, 2009:
Interest rate swaps.................. $ -- $ --
Foreign currency swaps............... (1) --
Interest rate forwards............... 8 6
---------- ---------
Total.............................. $ 7 $ 6
========== =========
All components of each derivative's gain or loss were included in the
assessment of hedge effectiveness.
NON-QUALIFYING DERIVATIVES AND DERIVATIVES FOR PURPOSES OTHER THAN HEDGING
The Company enters into the following derivatives that do not qualify for
hedge accounting or for purposes other than hedging: (i) interest rate swaps,
caps and floors and interest rate futures to economically hedge its exposure to
interest rates; (ii) foreign currency forwards and swaps to economically hedge
its exposure to adverse movements in exchange rates; (iii) interest rate
forwards to buy and sell securities to economically hedge its exposure to
interest rates; (iv) covered call options for income generation; (v) credit
default swaps to economically hedge exposure to adverse movements in credit;
(vi) credit default swaps to synthetically create investments; and (vii) equity
options to economically hedge certain invested assets against adverse changes
in equity indices.
58
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The following table presents the amount and location of gains (losses)
recognized in income for derivatives that were not designated or qualifying as
hedging instruments:
[Download Table]
NET NET
DERIVATIVE INVESTMENT
GAINS (LOSSES) INCOME (1)
-------------- ----------
(IN MILLIONS)
FOR THE YEAR ENDED DECEMBER 31, 2011:
Interest rate swaps................... $ 84 $ --
Interest rate floors.................. 55 --
Interest rate caps.................... (2) --
Interest rate futures................. 6 --
Foreign currency swaps................ 2 --
Foreign currency forwards............. (2) --
Equity options........................ -- (2)
Interest rate options................. 1 --
Interest rate forwards................ (1) --
Credit default swaps.................. 1 --
----- ----
Total................................ $ 144 $ (2)
===== ====
FOR THE YEAR ENDED DECEMBER 31, 2010:
Interest rate swaps................... $ (4) $ --
Interest rate floors.................. 17 --
Interest rate caps.................... (2) --
Interest rate futures................. (28) --
Foreign currency swaps................ (1) --
Foreign currency forwards............. (2) --
Equity options........................ -- (1)
Interest rate options................. -- --
Interest rate forwards................ 1 --
Credit default swaps.................. 1 --
----- ----
Total................................ $ (18) $ (1)
===== ====
FOR THE YEAR ENDED DECEMBER 31, 2009:
Interest rate swaps................... $ 1 $ --
Interest rate floors.................. (86) --
Interest rate caps.................... 1 --
Interest rate futures................. (1) --
Foreign currency swaps................ (9) --
Foreign currency forwards............. -- --
Equity options........................ -- --
Interest rate options................. -- --
Interest rate forwards................ -- --
Credit default swaps.................. (2) --
----- ----
Total................................ $ (96) $ --
===== ====
--------
(1)Changes in estimated fair value related to economic hedges of equity method
investments in joint ventures.
59
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
CREDIT DERIVATIVES
In connection with synthetically created investment transactions, the Company
writes credit default swaps for which it receives a premium to insure credit
risk. Such credit derivatives are included within the non-qualifying
derivatives and derivatives for purposes other than hedging table. If a credit
event occurs, as defined by the contract, 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 $469 million and
$185 million at December 31, 2011 and 2010, 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, 2011, the Company would have paid $2 million to
terminate all of these contracts, and at December 31, 2010, the Company would
have received $2 million to terminate all of these contracts.
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:
[Enlarge/Download Table]
DECEMBER 31,
-----------------------------------------------------------------------------
2011 2010
-------------------------------------- --------------------------------------
MAXIMUM MAXIMUM
ESTIMATED AMOUNT ESTIMATED AMOUNT OF
FAIR VALUE OF FUTURE WEIGHTED FAIR VALUE 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 $ 63 4.1 $ -- $ 23 4.1
Credit default swaps referencing
indices............................ 1 43 2.8 1 59 3.3
----- ----- ---- -----
Subtotal............................ 2 106 3.6 1 82 3.5
----- ----- ---- -----
Baa
Single name credit default swaps
(corporate)........................ (1) 85 4.6 -- -- --
Credit default swaps referencing
indices............................ (3) 278 4.7 1 103 5.0
----- ----- ---- -----
Subtotal............................ (4) 363 4.6 1 103 5.0
----- ----- ---- -----
Total............................. $ (2) $ 469 4.4 $ 2 $ 185 4.4
===== ===== ==== =====
--------
(1)The rating agency designations are based on availability and the midpoint of
the applicable ratings among Moody's Investors Service, 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.
60
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
CREDIT RISK ON FREESTANDING DERIVATIVES
The Company may be exposed to credit-related losses in the event of
nonperformance by counterparties to derivative financial instruments.
Generally, the current credit exposure of the Company's derivative contracts is
limited to the net positive estimated fair value of derivative contracts at the
reporting date after taking into consideration the existence of netting
agreements and any collateral received pursuant to credit support annexes.
The Company manages its credit risk related to OTC derivatives by entering
into transactions with creditworthy counterparties, maintaining collateral
arrangements and through the use of master agreements that provide for a single
net payment to be made by one counterparty to another at each due date and upon
termination. Because exchange-traded futures are effected through regulated
exchanges, and positions are marked to market on a daily basis, the Company has
minimal exposure to credit-related losses in the event of nonperformance by
counterparties to such derivative instruments. See Note 4 for a description of
the impact of credit risk on the valuation of derivative instruments.
The Company enters into various collateral arrangements, which require both
the pledging and accepting of collateral in connection with its OTC derivative
instruments. At December 31, 2011 and 2010, the Company was obligated to return
cash collateral under its control of $243 million and $54 million,
respectively. This cash collateral is included in cash and cash equivalents or
in short-term investments and the obligation to return it is included in
payables for collateral under securities loaned and other transactions in the
consolidated balance sheets. At December 31, 2011 and 2010, the Company had
received collateral consisting of various securities with a fair market value
of $66 million and $0, respectively, which were held in separate custodial
accounts. Subject to certain constraints, the Company is permitted by contract
to sell or repledge this collateral, but at December 31, 2011, none of the
collateral had been sold or repledged.
The Company's collateral arrangements for its OTC 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 credit-contingent provisions that provide for a
reduction of these thresholds (on a sliding scale that converges toward zero)
in the event of downgrades in the credit ratings of the Company and/or the
counterparty. In addition, certain of the Company's netting agreements for
derivative instruments contain provisions that require the Company to maintain
a specific investment grade credit rating from at least one of the major credit
rating agencies. If the Company's credit ratings were to fall below that
specific investment grade credit rating, it would be in violation of these
provisions, and the counterparties to the derivative instruments could request
immediate payment or demand immediate and ongoing full overnight
collateralization on derivative instruments that are in a net liability
position after considering the effect of netting agreements.
61
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The following table presents the estimated fair value of the Company's OTC
derivatives that are in a net liability position after considering the effect
of netting agreements, together with the estimated fair value and balance sheet
location of the collateral pledged. The table also presents the incremental
collateral that the Company would be required to provide if there was a one
notch downgrade in the Company's credit rating at the reporting date or if the
Company's credit rating sustained a downgrade to a level that triggered full
overnight collateralization or termination of the derivative position at the
reporting date. Derivatives that are not subject to collateral agreements are
not included in the scope of this table.
[Enlarge/Download Table]
ESTIMATED FAIR VALUE OF FAIR VALUE OF INCREMENTAL
COLLATERAL PROVIDED: COLLATERAL PROVIDED UPON:
----------------------- ----------------------------------
DOWNGRADE IN THE
ONE NOTCH COMPANY'S CREDIT RATING
DOWNGRADE TO A LEVEL THAT TRIGGERS
ESTIMATED IN THE FULL OVERNIGHT
FAIR VALUE (1) OF COMPANY'S COLLATERALIZATION OR
DERIVATIVES IN NET FIXED MATURITY CREDIT TERMINATION OF
LIABILITY POSITION SECURITIES (2) RATING THE DERIVATIVE POSITION
------------------ ----------------------- --------- ------------------------
(IN MILLIONS)
December 31, 2011. $ -- $ -- $ -- $ --
December 31, 2010. $ 69 $ 37 $ 11 $ 46
--------
(1)After taking into consideration the existence of netting agreements.
(2)Included 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. At both December 31, 2011 and 2010, the
Company did not provide any cash collateral.
The Company also has exchange-traded futures, which may require the pledging
of collateral. At both December 31, 2011 and 2010, the Company did not pledge
any securities collateral for exchange-traded futures. At both December 31,
2011 and 2010, the Company provided cash collateral for exchange-traded futures
of $6 million, which is included in premiums, reinsurance and other receivables.
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
ceded reinsurance written on a funds withheld basis.
The following table presents the estimated fair value of the Company's
embedded derivatives at:
[Download Table]
DECEMBER 31,
---------------
2011 2010
------- -------
(IN MILLIONS)
Net embedded derivatives within asset host contracts:
Ceded guaranteed minimum benefits.......................... $ 3,009 $ 930
Net embedded derivatives within liability host contracts:
Direct guaranteed minimum benefits......................... $ 1,189 $ 174
Other...................................................... 416 5
------- -------
Net embedded derivatives within liability host contracts. $ 1,605 $ 179
======= =======
62
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The following table presents changes in estimated fair value related to
embedded derivatives:
[Download Table]
YEARS ENDED DECEMBER 31,
-----------------------
2011 2010 2009
------ ------ ------
(IN MILLIONS)
Net derivative gains (losses) (1), (2). $ 510 $ 112 $ (528)
--------
(1)The valuation of direct guaranteed minimum benefits includes an adjustment
for nonperformance risk. The amounts included in net derivative gains
(losses), in connection with this adjustment, were $346 million,
($140) million and ($432) million for the years ended December 31, 2011,
2010 and 2009, respectively. In addition, the valuation of ceded guaranteed
minimum benefits includes an adjustment for nonperformance risk. The amounts
included in net derivative gains (losses), in connection with this
adjustment, were ($476) million, $210 million and $816 million for the years
ended December 31, 2011, 2010 and 2009, respectively.
(2)See Note 7 for discussion of affiliated net derivative gains (losses)
included in the table above.
4. FAIR VALUE
Considerable judgment is often required in interpreting market data to
develop estimates of fair value, and the use of different assumptions or
valuation methodologies may have a material effect on the estimated fair value
amounts.
63
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
ASSETS AND LIABILITIES MEASURED AT FAIR VALUE
RECURRING FAIR VALUE MEASUREMENTS
The assets and liabilities measured at estimated fair value on a recurring
basis were determined as described below. These estimated fair values and their
corresponding placement in the fair value hierarchy are summarized as follows:
[Enlarge/Download Table]
DECEMBER 31, 2011
-----------------------------------------------------------
FAIR VALUE MEASUREMENTS AT REPORTING DATE USING
-------------------------------------------------
QUOTED PRICES IN
ACTIVE MARKETS FOR SIGNIFICANT OTHER SIGNIFICANT TOTAL
IDENTICAL ASSETS OBSERVABLE UNOBSERVABLE ESTIMATED
AND LIABILITIES INPUTS INPUTS FAIR
(LEVEL 1) (LEVEL 2) (LEVEL 3) VALUE
------------------ ----------------- ------------ ---------
(IN MILLIONS)
ASSETS:
Fixed maturity securities:
U.S. corporate securities.................... $ -- $ 3,825 $ 141 $ 3,966
Foreign corporate securities................. -- 1,628 144 1,772
U.S. Treasury and agency securities.......... 625 902 -- 1,527
RMBS......................................... -- 1,280 33 1,313
State and political subdivision securities... -- 781 -- 781
CMBS......................................... -- 555 12 567
ABS.......................................... -- 310 55 365
Foreign government securities................ -- 164 2 166
------- --------- -------- ---------
Total fixed maturity securities............ 625 9,445 387 10,457
------- --------- -------- ---------
Equity securities:
Common stock................................. 1 -- -- 1
Non-redeemable preferred stock............... -- -- 1 1
------- --------- -------- ---------
Total equity securities.................... 1 -- 1 2
------- --------- -------- ---------
Short-term investments (1)..................... 233 546 -- 779
Derivative assets: (2)
Interest rate contracts...................... 1 255 87 343
Foreign currency contracts................... -- 9 -- 9
Credit contracts............................. -- 3 1 4
------- --------- -------- ---------
Total derivative assets.................... 1 267 88 356
Net embedded derivatives within asset host
contracts (3)................................. -- -- 3,009 3,009
Separate account assets (4).................... 96 56,724 -- 56,820
------- --------- -------- ---------
Total assets.............................. $ 956 $ 66,982 $ 3,485 $ 71,423
======= ========= ======== =========
LIABILITIES:
Derivative liabilities: (2)
Interest rate contracts...................... $ -- $ 13 $ -- $ 13
Foreign currency contracts................... -- 3 -- 3
Credit contracts............................. -- 5 -- 5
------- --------- -------- ---------
Total derivative liabilities............... -- 21 -- 21
Net embedded derivatives within liability host
contracts (3)................................. -- -- 1,605 1,605
------- --------- -------- ---------
Total liabilities......................... $ -- $ 21 $ 1,605 $ 1,626
======= ========= ======== =========
64
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
[Enlarge/Download Table]
DECEMBER 31, 2010
-----------------------------------------------------------
FAIR VALUE MEASUREMENTS AT REPORTING DATE USING
-------------------------------------------------
QUOTED PRICES IN
ACTIVE MARKETS FOR SIGNIFICANT OTHER SIGNIFICANT TOTAL
IDENTICAL ASSETS OBSERVABLE UNOBSERVABLE ESTIMATED
AND LIABILITIES INPUTS INPUTS FAIR
(LEVEL 1) (LEVEL 2) (LEVEL 3) VALUE
------------------ ----------------- ------------ ---------
(IN MILLIONS)
ASSETS:
Fixed maturity securities:
U.S. corporate securities.................................. $ -- $ 3,210 $ 162 $ 3,372
Foreign corporate securities............................... -- 1,399 91 1,490
U.S. Treasury and agency securities........................ 495 648 -- 1,143
RMBS....................................................... -- 969 41 1,010
State and political subdivision securities................. -- 630 -- 630
CMBS....................................................... -- 506 7 513
ABS........................................................ -- 328 55 383
Foreign government securities.............................. -- 131 4 135
----- --------- -------- ---------
Total fixed maturity securities.......................... 495 7,821 360 8,676
----- --------- -------- ---------
Equity securities:
Common stock............................................... 2 -- -- 2
Non-redeemable preferred stock............................. -- -- 1 1
----- --------- -------- ---------
Total equity securities.................................. 2 -- 1 3
----- --------- -------- ---------
Short-term investments (1)................................... 20 82 6 108
Derivative assets: (2)
Interest rate contracts...................................... 2 61 -- 63
Foreign currency contracts................................... -- 2 -- 2
Credit contracts............................................. -- 2 1 3
----- --------- -------- ---------
Total derivative assets.................................... 2 65 1 68
Net embedded derivatives within asset host contracts (3)..... -- -- 930 930
Separate account assets (4).................................. -- 42,435 -- 42,435
----- --------- -------- ---------
Total assets............................................... $ 519 $ 50,403 $ 1,298 $ 52,220
===== ========= ======== =========
LIABILITIES:
Derivative liabilities: (2)
Interest rate contracts...................................... $ 3 $ 25 $ 48 $ 76
Foreign currency contracts................................... -- 6 -- 6
Credit contracts............................................. -- 2 -- 2
----- --------- -------- ---------
Total derivative liabilities............................... 3 33 48 84
Net embedded derivatives within liability host contracts (3). -- -- 179 179
----- --------- -------- ---------
Total liabilities.......................................... $ 3 $ 33 $ 227 $ 263
===== ========= ======== =========
--------
(1)Short-term investments as presented in the tables above differ from the
amounts presented in the consolidated balance sheets because certain
short-term investments are not measured at estimated fair value (e.g., time
deposits, etc.), and therefore are excluded from the tables presented above.
(2)Derivative assets are presented within other invested assets in the
consolidated balance sheets and derivative liabilities are presented within
other liabilities in the consolidated balance sheets. The amounts are
presented
65
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
gross in the tables above to reflect the presentation in the consolidated
balance sheets, but are presented net for purposes of the rollforward in the
Fair Value Measurements Using Significant Unobservable Inputs
(Level 3) tables which follow.
(3)Net embedded derivatives within asset host contracts are presented within
premiums, reinsurance and other receivables in the consolidated balance
sheets. Net embedded derivatives within liability host contracts are
presented within PABs and other liabilities in the consolidated balance
sheets.
(4)Separate account assets are measured at estimated fair value. Investment
performance related to separate account assets is fully offset by
corresponding amounts credited to contractholders whose liability is
reflected within separate account liabilities. Separate account liabilities
are set equal to the estimated fair value of separate account assets.
See Note 2 for discussion of certain prior year amounts which have been
reclassified to conform with the 2011 presentation.
The methods and assumptions used to estimate the fair value of financial
instruments are summarized as follows:
Fixed Maturity Securities, Equity Securities and Short-term Investments
When available, the estimated fair value of the Company's fixed maturity
securities, equity securities and short-term investments are based on quoted
prices in active markets that are readily and regularly obtainable. Generally,
these are the most liquid of the Company's securities holdings and valuation of
these securities does not involve management'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 market standard valuation
methodologies utilized include: discounted cash flow methodologies, matrix
pricing or other similar techniques. The inputs in applying these market
standard valuation methodologies include, but are not limited to: interest
rates, credit standing of the issuer or counterparty, industry sector of the
issuer, coupon rate, call provisions, sinking fund requirements, maturity and
management's assumptions regarding estimated duration, liquidity and estimated
future cash flows. Accordingly, the estimated fair values are based on
available market information and management's judgments about financial
instruments.
The significant inputs to the market standard valuation methodologies for
certain types of securities with reasonable levels of price transparency are
inputs that are observable in the market or can be derived principally from or
corroborated by observable market data. Such observable inputs include
benchmarking prices for similar assets in active markets, quoted prices in
markets that are not active and observable yields and spreads in the market.
When observable inputs are not available, the market standard valuation
methodologies for determining the estimated fair value of certain types of
securities that trade infrequently, and therefore have little or no price
transparency, rely on inputs that are significant to the estimated fair value
that are not observable in the market or cannot be derived principally from or
corroborated by observable market data. These unobservable inputs can be based
in large part on management'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.
66
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The use of different methodologies, assumptions and inputs may have a
material effect on the estimated fair values of the Company's securities
holdings.
Derivatives
The estimated fair value of derivatives is determined through the use of
quoted market prices for exchange-traded derivatives or through the use of
pricing models for OTC 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 the 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 significant inputs to the pricing models for most OTC 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 derivatives may
rely on inputs that are significant to the estimated fair value that are not
observable in the market or cannot be derived principally from or corroborated
by observable market data. Significant inputs that are unobservable generally
include: independent broker quotes, 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.
The credit risk of both the counterparty and the Company are considered in
determining the estimated fair value for all OTC derivatives, and any potential
credit adjustment is based on the net exposure by counterparty after taking
into account the effects of netting agreements and collateral arrangements. The
Company values its derivative positions using the standard swap curve which
includes a spread to the risk free rate. This credit spread is appropriate for
those parties that execute trades at pricing levels consistent with the
standard swap curve. As the Company and its significant derivative
counterparties consistently execute trades at such pricing levels, additional
credit risk adjustments are not currently required in the valuation process.
The Company's ability to consistently execute at such pricing levels is in part
due to the netting agreements and collateral arrangements that are in place
with all of its significant derivative counterparties. The evaluation of the
requirement to make additional credit risk adjustments is performed by the
Company each reporting period.
Most inputs for OTC derivatives are mid market inputs but, in certain cases,
bid level inputs are used when they are deemed more representative of exit
value. Market liquidity, as well as the use of different methodologies,
assumptions and inputs, may have a material effect on the estimated fair values
of the Company's derivatives and could materially affect net income.
Embedded Derivatives Within Asset and Liability Host Contracts
Embedded derivatives principally include certain direct and ceded variable
annuity guarantees and embedded derivatives related to funds withheld on ceded
reinsurance. Embedded derivatives are recorded at estimated fair value with
changes in estimated fair value reported in net income.
67
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The Company issues certain variable annuity products with guaranteed minimum
benefits. GMWBs, GMABs and certain GMIBs are embedded derivatives, which are
measured at estimated fair value separately from the host variable annuity
contract, with changes in estimated fair value reported in net derivative gains
(losses). These embedded derivatives are classified within PABs in the
consolidated balance sheets.
The fair value of these guarantees is estimated using 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. A risk neutral valuation methodology is used
under which the cash flows from the guarantees are projected under multiple
capital market scenarios using observable risk free rates. The valuation of
these guarantee liabilities includes adjustments for nonperformance risk and
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 previously described. In addition to
ceding risks associated with guarantees that are accounted for as embedded
derivatives, the Company also ceded, 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 these ceded risks 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 "--
Fixed Maturity Securities, Equity Securities, Other 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.
68
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Separate Account Assets
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. Assets within the Company's separate accounts include:
mutual funds, fixed maturity securities, short-term investments and cash and
cash equivalents. See "-- Valuation Techniques and Inputs by Level Within the
Three-Level Fair Value Hierarchy by Major Classes of Assets and Liabilities"
below for a discussion of the methods and assumptions used to estimate the fair
value of these financial instruments.
VALUATION TECHNIQUES AND INPUTS BY LEVEL WITHIN THE THREE-LEVEL FAIR VALUE
HIERARCHY BY MAJOR CLASSES OF ASSETS AND LIABILITIES
A description of the significant valuation techniques and inputs to the
determination of estimated fair value for the more significant asset and
liability classes measured at fair value on a recurring basis is as follows:
The Company determines the estimated fair value of its investments using
primarily the market approach and the income approach. The use of quoted prices
for identical assets and matrix pricing or other similar techniques are
examples of market approaches, while the use of discounted cash flow
methodologies is an example of the income approach. The Company attempts to
maximize the use of observable inputs and minimize the use of unobservable
inputs in selecting whether the market or income approach is used.
While certain investments have been classified as Level 1 from the use of
unadjusted quoted prices for identical investments supported by high volumes of
trading activity and narrow bid/ask spreads, most investments have been
classified as Level 2 because the significant inputs used to measure the fair
value on a recurring basis of the same or similar investment are market
observable or can be corroborated using market observable information for the
full term of the investment. Level 3 investments include those where estimated
fair values are based on significant unobservable inputs that are supported by
little or no market activity and may reflect management's own assumptions about
what factors market participants would use in pricing these investments.
LEVEL 1 MEASUREMENTS:
Fixed Maturity Securities, Equity Securities and Short-term Investments
These securities are comprised of U.S. Treasury securities, exchange traded
common stock, and short-term money market securities, including U.S. Treasury
bills. Valuation of these securities is based on unadjusted quoted prices in
active markets that are readily and regularly available.
Derivative Assets and Derivative Liabilities
These assets and liabilities are comprised of exchange-traded derivatives.
Valuation of these assets and liabilities is based on unadjusted quoted prices
in active markets that are readily and regularly available.
Separate Account Assets
These assets are comprised of securities that are similar in nature to the
fixed maturity securities and short-term investments referred to above.
Valuation of these assets is based on unadjusted quoted prices in active
markets that are readily and regularly available.
69
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
LEVEL 2 MEASUREMENTS:
Fixed Maturity Securities and Short-term Investments
This level includes fixed maturity securities priced principally by
independent pricing services using observable inputs. Short-term investments
within this level are of a similar nature and class to the Level 2 securities
described below.
U.S. corporate and foreign corporate securities. These securities are
principally valued using the market and income approaches. Valuation is based
primarily on quoted prices in markets that are not active, or using matrix
pricing or other similar techniques that use standard market observable
inputs such as benchmark yields, spreads off benchmark yields, new issuances,
issuer rating, duration, and trades of identical or comparable securities.
Investment grade privately placed securities are valued using discounted cash
flow methodologies using standard market observable inputs, and inputs
derived from, or corroborated by, market observable data including market
yield curve, duration, call provisions, observable prices and spreads for
similar publicly traded or privately traded issues that incorporate the
credit quality and industry sector of the issuer. This level also includes
certain below investment grade privately placed fixed maturity securities
priced by independent pricing services that use observable inputs.
Structured securities comprised of RMBS, CMBS and ABS. These securities are
principally valued using the market approach. Valuation is based primarily on
matrix pricing or other similar techniques using standard market inputs
including spreads for actively traded securities, spreads off benchmark
yields, expected prepayment speeds and volumes, current and forecasted loss
severity, rating, weighted average coupon, weighted average maturity, average
delinquency rates, geographic region, debt-service coverage ratios and
issuance-specific information including, but not limited to: collateral type,
payment terms of the underlying assets, payment priority within the tranche,
structure of the security, deal performance and vintage of loans.
U.S. Treasury and agency securities. These securities are principally
valued using the market approach. Valuation is based primarily on quoted
prices in markets that are not active, or using matrix pricing or other
similar techniques using standard market observable inputs such as benchmark
U.S. Treasury yield curve, the spread off the U.S. Treasury curve for the
identical security and comparable securities that are actively traded.
Foreign government and state and political subdivision securities. These
securities are principally valued using the market approach. Valuation is
based primarily on matrix pricing or other similar techniques using standard
market observable inputs including benchmark U.S. Treasury or other yields,
issuer ratings, broker-dealer quotes, issuer spreads and reported trades of
similar securities, including those within the same sub-sector or with a
similar maturity or credit rating.
Derivative Assets and Derivative Liabilities
This level includes all types of derivative instruments utilized by the
Company with the exception of exchange-traded derivatives included within
Level 1 and those derivative instruments with unobservable inputs as described
in Level 3. These derivatives are principally valued using an income approach.
Interest rate contracts.
Non-option-based -- Valuations are based on present value techniques, which
utilize significant inputs that may include the swap yield curve and London
InterBank Offer Rate ("LIBOR") basis curves.
70
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Option-based -- Valuations are based on option pricing models, which utilize
significant inputs that may include the swap yield curve, LIBOR basis curves
and interest rate volatility.
Foreign currency contracts.
Non-option-based -- Valuations are based on present value techniques, which
utilize significant inputs that may include the swap yield curve, LIBOR basis
curves, currency spot rates and cross currency basis curves.
Credit contracts.
Non-option-based -- Valuations are based on present value techniques, which
utilize significant inputs that may include the swap yield curve, credit curves
and recovery rates.
Separate Account Assets
These assets are comprised of investments that are similar in nature to the
fixed maturity securities and short-term investments referred to above. Also
included are certain mutual funds without readily determinable fair values
given prices are not published publicly. Valuation of the mutual funds is based
upon quoted prices or reported NAV provided by the fund managers.
LEVEL 3 MEASUREMENTS:
In general, investments classified within Level 3 use many of the same
valuation techniques and inputs as described in Level 2 Measurements. 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.
Fixed Maturity Securities, Equity Securities and Short-term Investments
This level includes fixed maturity securities and equity securities priced
principally by independent broker quotations or market standard valuation
methodologies using inputs that are not market observable or cannot be derived
principally from or corroborated by observable market data. Short-term
investments within this level are of a similar nature and class to the Level 3
securities described below; accordingly, the valuation techniques and
significant market standard observable inputs used in their valuation are also
similar to those described below.
U.S. corporate and foreign corporate securities. These securities,
including financial services industry hybrid securities classified within
fixed maturity securities, are principally valued using the market and income
approaches. Valuations are based primarily on matrix pricing or other similar
techniques that utilize unobservable inputs or cannot be derived principally
from, or corroborated by, observable market data, including illiquidity
premiums and spread adjustments to reflect industry trends or specific
credit-related issues. Valuations may be based on independent non-binding
broker quotations. Generally, below investment grade privately placed or
distressed securities included in this level are valued using discounted cash
flow methodologies which rely upon significant, unobservable inputs and
inputs that cannot be derived principally from, or corroborated by,
observable market data.
Structured securities comprised of RMBS, CMBS and ABS. These securities are
principally valued using the market approach. Valuation is based primarily on
matrix pricing or other similar techniques that utilize inputs that are
unobservable or cannot be derived principally from, or corroborated by,
observable market data, or are based on independent non-binding broker
quotations. Below investment grade securities and RMBS supported by sub-prime
mortgage loans included in this level are valued based on inputs including
quoted prices
71
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
for identical or similar securities that are less liquid and based on lower
levels of trading activity than securities classified in Level 2, and certain
of these securities are valued based on independent non-binding broker
quotations.
Foreign government and state and political subdivision securities. These
securities are principally valued using the market approach. Valuation is
based primarily on matrix pricing or other similar techniques, however these
securities are less liquid and certain of the inputs are based on very
limited trading activity.
Non-redeemable preferred stock. These securities, including privately held
securities and financial services industry hybrid securities classified
within equity securities, are principally valued using the market and income
approaches. Valuations are based primarily on matrix pricing or other similar
techniques using inputs such as comparable credit rating and issuance
structure. Equity securities valuations determined with discounted cash flow
methodologies use inputs such as earnings multiples based on comparable
public companies, and industry-specific non-earnings based multiples. Certain
of these securities are valued based on independent non-binding broker
quotations.
Derivative Assets and Derivative Liabilities
These derivatives are principally valued using an income approach. Valuations
of non-option based derivatives utilize present value techniques, whereas
valuations of option based derivatives utilize option pricing models. These
valuation methodologies generally use the same inputs as described in the
corresponding sections above for Level 2 measurements of derivatives. However,
these derivatives result in Level 3 classification because one or more of the
significant inputs are not observable in the market or cannot be derived
principally from, or corroborated by, observable market data.
Interest rate contracts.
Non-option-based -- Significant unobservable inputs may include the
extrapolation beyond observable limits of the swap yield curve and LIBOR basis
curves.
Credit contracts.
Non-option-based -- Significant unobservable inputs may include credit
spreads and the extrapolation beyond observable limits of the swap yield curve
and credit curves. Certain of these derivatives are valued based on independent
non-binding broker quotations.
Direct Guaranteed Minimum Benefits
These embedded derivatives are principally valued using an income approach.
Valuations are based on option pricing techniques, which utilize significant
inputs that may include swap yield curve, currency exchange rates and implied
volatilities. These embedded derivatives result in Level 3 classification
because one or more of the significant inputs are not observable in the market
or cannot be derived principally from, or corroborated by, observable market
data. Significant unobservable inputs generally include: the extrapolation
beyond observable limits of the swap yield curve and implied volatilities,
actuarial assumptions for policyholder behavior and mortality and the potential
variability in policyholder behavior and mortality, nonperformance risk and
cost of capital for purposes of calculating the risk margin.
72
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Reinsurance Ceded on Certain Guaranteed Minimum Benefits
These embedded derivatives are principally valued using an income approach.
The valuation techniques and significant market standard unobservable inputs
used in their valuation are similar to those previously described under "Direct
Guaranteed Minimum Benefits" and also include counterparty credit spreads.
Embedded Derivatives Within Funds Withheld Related to Certain Ceded Reinsurance
These embedded derivatives are principally valued using an income approach.
Valuations are based on present value techniques, which utilize significant
inputs that may include the swap yield curve and the fair value of assets
within the reference portfolio. These embedded derivatives result in Level 3
classification because one or more of the significant inputs are not observable
in the market or cannot be derived principally from, or corroborated by,
observable market data. Significant unobservable inputs generally include: the
fair value of certain assets within the reference portfolio which are not
observable in the market and cannot be derived principally from, or
corroborated by, observable market data.
TRANSFERS BETWEEN LEVELS 1 AND 2:
During the years ended December 31, 2011 and 2010, transfers between Levels 1
and 2 were not significant.
TRANSFERS INTO OR OUT OF LEVEL 3:
Overall, transfers into and/or out of Level 3 are attributable to a change in
the observability of inputs. Assets and liabilities are transferred into
Level 3 when a significant input cannot be corroborated with market observable
data. This occurs when market activity decreases significantly and underlying
inputs cannot be observed, current prices are not available, and/or when there
are significant variances in quoted prices, thereby affecting transparency.
Assets and liabilities are transferred out of Level 3 when circumstances change
such that a significant input can be corroborated with market observable data.
This may be due to a significant increase in market activity, a specific event,
or one or more significant input(s) becoming observable. Transfers into and/or
out of any level are assumed to occur at the beginning of the period.
Significant transfers into and/or out of Level 3 assets and liabilities for the
years ended December 31, 2011 and 2010 are summarized below.
Transfers into Level 3 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 broker quotations and unobservable inputs to
determine estimated fair value.
During the year ended December 31, 2011, transfers into Level 3 for fixed
maturity securities of $3 million were comprised of certain foreign corporate
securities. During the year ended December 31, 2010, transfers into Level 3 for
fixed maturity securities of $39 million were comprised of certain U.S.
corporate securities and RMBS.
Transfers out of Level 3 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 or
increases in market activity and upgraded credit ratings.
73
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
During the year ended December 31, 2011, transfers out of Level 3 for fixed
maturity securities of $112 million were principally comprised of certain U.S.
corporate securities and ABS. During the year ended December 31, 2010,
transfers out of Level 3 for fixed maturity securities of $31 million were
comprised of certain foreign and U.S. corporate securities.
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), including realized and unrealized gains (losses)
of all assets and (liabilities) and realized and unrealized gains (losses) of
all assets and (liabilities) still held at the end of the respective time
periods:
[Enlarge/Download Table]
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
----------------------------------------------------------------------
FIXED MATURITY SECURITIES:
----------------------------------------------------------------------
STATE AND
U.S. FOREIGN POLITICAL FOREIGN
CORPORATE CORPORATE SUBDIVISION GOVERNMENT
SECURITIES SECURITIES RMBS SECURITIES CMBS ABS SECURITIES
---------- ---------- ------- ----------- ------- ------- ----------
(IN MILLIONS)
YEAR ENDED DECEMBER 31, 2011:
Balance, January 1,................................... $ 162 $ 91 $ 41 $ -- $ 7 $ 55 $ 4
Total realized/unrealized gains (losses) included in:
Earnings: (1), (2)
Net investment income.............................. -- -- -- -- -- -- --
Net investment gains (losses)...................... -- -- -- -- 1 -- --
Net derivative gains (losses)...................... -- -- -- -- -- -- --
Other comprehensive income (loss)................... 11 (3) -- -- -- 1 --
Purchases (3)......................................... 34 70 10 -- 7 49 --
Sales (3)............................................. (7) (15) (8) -- (3) (9) (2)
Issuances (3)......................................... -- -- -- -- -- -- --
Settlements (3)....................................... -- -- -- -- -- -- --
Transfers into Level 3 (4)............................ -- 3 -- -- -- -- --
Transfers out of Level 3 (4).......................... (59) (2) (10) -- -- (41) --
-------- -------- ------- ------- ------- ------- ------
Balance, December 31,................................. $ 141 $ 144 $ 33 $ -- $ 12 $ 55 $ 2
======== ======== ======= ======= ======= ======= ======
Changes in unrealized gains (losses) relating to
assets and liabilities still held at December 31,
2011 included in earnings:
Net investment income.............................. $ -- $ -- $ -- $ -- $ -- $ -- $ --
Net investment gains (losses)...................... $ -- $ -- $ -- $ -- $ -- $ -- $ --
Net derivative gains (losses)...................... $ -- $ -- $ -- $ -- $ -- $ -- $ --
74
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
[Enlarge/Download Table]
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
-----------------------------------------------------------------------------
EQUITY SECURITIES: NET DERIVATIVES: (5)
------------------ ------------------------------
NON-
REDEEMABLE INTEREST FOREIGN NET
PREFERRED SHORT-TERM RATE CURRENCY CREDIT EMBEDDED
STOCK INVESTMENTS CONTRACTS CONTRACTS CONTRACTS DERIVATIVES (6)
------------------ ----------- --------- --------- --------- ---------------
(IN MILLIONS)
YEAR ENDED DECEMBER 31, 2011:
Balance, January 1,............................... $ 1 $ 6 $ (48) $ -- $ 1 $ 751
Total realized/unrealized gains (losses) included
in:
Earnings: (1), (2)
Net investment income.......................... -- -- -- -- -- --
Net investment gains (losses).................. (1) -- -- -- -- --
Net derivative gains (losses).................. -- -- 9 -- -- 510
Other comprehensive income (loss)................ 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, December 31,............................. $ 1 $ -- $ 87 $ -- $ 1 $ 1,404
========= ========= ========= ========= ========= ==========
Changes in unrealized gains (losses) relating to
assets and liabilities still held at
December 31, 2011 included in earnings:
Net investment income.......................... $ -- $ -- $ -- $ -- $ -- $ --
Net investment gains (losses).................. $ (1) $ -- $ -- $ -- $ -- $ --
Net derivative gains (losses).................. $ -- $ -- $ -- $ -- $ -- $ 520
[Enlarge/Download Table]
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
---------------------------------------------------------------------
FIXED MATURITY SECURITIES:
---------------------------------------------------------------------
STATE AND
U.S. FOREIGN POLITICAL FOREIGN
CORPORATE CORPORATE SUBDIVISION GOVERNMENT
SECURITIES SECURITIES RMBS SECURITIES CMBS ABS SECURITIES
---------- ---------- ------- ----------- ------- ------- ----------
(IN MILLIONS)
YEAR ENDED DECEMBER 31, 2010:
Balance, January 1,................................... $ 139 $ 70 $ 30 $ 1 $ 1 $ 38 $ --
Total realized/unrealized gains (losses) included in:
Earnings: (1), (2)
Net investment income.............................. -- -- -- -- -- -- --
Net investment gains (losses)...................... -- 1 -- -- -- -- --
Net derivative gains (losses)...................... -- -- -- -- -- -- --
Other comprehensive income (loss)................... 4 7 7 -- 1 4 --
Purchases, sales, issuances and settlements (3)....... -- 38 (11) -- 5 13 4
Transfers into Level 3 (4)............................ 24 -- 15 -- -- -- --
Transfers out of Level 3 (4).......................... (5) (25) -- (1) -- -- --
-------- ------- ------- ------- ------- ------- -------
Balance, December 31,................................. $ 162 $ 91 $ 41 $ -- $ 7 $ 55 $ 4
======== ======= ======= ======= ======= ======= =======
Changes in unrealized gains (losses) relating to
assets and liabilities still held at December 31,
2010 included in earnings:
Net investment income.............................. $ -- $ -- $ 1 $ -- $ -- $ -- $ --
Net investment gains (losses)...................... $ -- $ -- $ -- $ -- $ -- $ -- $ --
Net derivative gains (losses)...................... $ -- $ -- $ -- $ -- $ -- $ -- $ --
75
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
[Enlarge/Download Table]
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
----------------------------------------------------------------------------
EQUITY SECURITIES: NET DERIVATIVES: (5)
------------------ ----------------------------
NON-
REDEEMABLE INTEREST FOREIGN NET
PREFERRED SHORT-TERM RATE CURRENCY CREDIT EMBEDDED
STOCK INVESTMENTS CONTRACTS CONTRACTS CONTRACTS DERIVATIVES (6)
------------------ ----------- --------- --------- --------- ---------------
(IN MILLIONS)
YEAR ENDED DECEMBER 31, 2010:
Balance, January 1,............................... $ 1 $ -- $ -- $ -- $ 3 $ 536
Total realized/unrealized gains (losses) included
in:
Earnings: (1), (2)
Net investment income.......................... -- -- -- -- -- --
Net investment gains (losses).................. -- -- -- -- -- --
Net derivative gains (losses).................. -- -- -- -- (1) 112
Other comprehensive income (loss)................ -- -- (48) -- -- --
Purchases, sales, issuances and settlements (3)... -- 6 -- -- (1) 103
Transfers into Level 3 (4)........................ -- -- -- -- -- --
Transfers out of Level 3 (4)...................... -- -- -- -- -- --
------- ------- ------- ------- -------- --------
Balance, December 31,............................. $ 1 $ 6 $ (48) $ -- $ 1 $ 751
======= ======= ======= ======= ======== ========
Changes in unrealized gains (losses) relating to
assets and liabilities still held at
December 31, 2010 included in earnings:
Net investment income.......................... $ -- $ -- $ -- $ -- $ -- $ --
Net investment gains (losses).................. $ -- $ -- $ -- $ -- $ -- $ --
Net derivative gains (losses).................. $ -- $ -- $ -- $ -- $ (1) $ 120
[Enlarge/Download Table]
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
------------------------------------------------------------------------
FIXED MATURITY SECURITIES:
------------------------------------------------------------------------
STATE AND
U.S. FOREIGN POLITICAL FOREIGN
CORPORATE CORPORATE SUBDIVISION GOVERNMENT
SECURITIES SECURITIES RMBS SECURITIES CMBS ABS SECURITIES
---------- ---------- -------- ----------- ------- -------- ----------
(IN MILLIONS)
YEAR ENDED DECEMBER 31, 2009:
Balance, January 1,................................... $ 65 $ 48 $ 24 $ -- $ -- $ 27 $ --
Total realized/unrealized gains (losses) included in:
Earnings: (1), (2)
Net investment income.............................. -- -- -- -- -- -- --
Net investment gains (losses)...................... (17) (1) -- -- (1) -- --
Net derivative gains (losses)...................... -- -- -- -- -- -- --
Other comprehensive income (loss)................... 18 11 1 -- 1 14 --
Purchases, sales, issuances and settlements (3)....... 10 12 5 1 -- (4) --
Transfers into and/or out of Level 3 (4).............. 63 -- -- -- 1 1 --
-------- -------- -------- ------- ======= -------- -------
Balance, December 31,................................. $ 139 $ 70 $ 30 $ 1 $ 1 $ 38 $ --
======== ======== ======== ======= ======= ======== =======
Changes in unrealized gains (losses) relating to
assets and liabilities still held at December 31,
2009 included in earnings:
Net investment income.............................. $ -- $ -- $ -- $ -- $ -- -- --
Net investment gains (losses)...................... $ (17) $ (1) $ -- $ -- $ (1) -- --
Net derivative gains (losses)...................... $ -- $ -- $ -- $ -- $ -- -- --
76
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
[Enlarge/Download Table]
FAIR VALUE MEASUREMENTS USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)
-------------------------------------------------------------------
EQUITY SECURITIES:
--------------------
NON-
REDEEMABLE NET
PREFERRED SHORT-TERM NET EMBEDDED
STOCK INVESTMENTS DERIVATIVES (5) DERIVATIVES (6)
-------------------- ------------ ---------------- -----------------
YEAR ENDED DECEMBER 31, 2009:
Balance, January 1,..................................... $ 7 $ -- $ -- $ 963
Total realized/unrealized gains (losses) included in:
Earnings: (1), (2)
Net investment income................................ -- -- -- --
Net investment gains (losses)........................ (2) -- -- --
Net derivative gains (losses)........................ -- -- 1 (516)
Other comprehensive income (loss)..................... 3 -- -- --
Purchases, sales, issuances and settlements (3)......... (7) -- 2 89
Transfers into and/or out of Level 3 (4)................ -- -- -- --
------- ------- ------- ---------
Balance, December 31,................................... $ 1 $ -- $ 3 $ 536
======= ======= ======= =========
Changes in unrealized gains (losses) relating to assets
and liabilities still held at December 31, 2009
included in earnings:
Net investment income................................ $ -- $ -- $ -- $ --
Net investment gains (losses)........................ $ -- $ -- $ -- $ --
Net derivative gains (losses)........................ $ -- $ -- $ 1 $ (510)
--------
(1)Amortization of premium/discount is included within net investment income.
Impairments charged to earnings on securities are included within net
investment gains (losses). Lapses associated with embedded derivatives are
included within net derivative gains (losses).
(2)Interest and dividend accruals, as well as cash interest coupons and
dividends received, are excluded from the rollforward.
(3)The amount reported within purchases, sales, issuances and settlements is
the purchase or issuance price and the sales or settlement proceeds based
upon the actual date purchased or issued and sold or settled, respectively.
Items purchased/issued and sold/settled in the same period are excluded from
the rollforward. For the year ended December 31, 2011, fees attributed to
net embedded derivatives are included within settlements. For the years
ended December 31, 2010 and 2009, fees attributed to net embedded
derivatives are included within purchases, sales, issuances and settlements.
(4)Total gains and losses (in earnings and other comprehensive income (loss))
are calculated assuming transfers into and/or out of Level 3 occurred at the
beginning of the period. Items transferred into and/or out of Level 3 in the
same period are excluded from the rollforward.
(5)Freestanding derivative assets and liabilities are presented net for
purposes of the rollforward.
(6)Embedded derivative assets and liabilities are presented net for purposes of
the rollforward.
77
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
NON-RECURRING FAIR VALUE MEASUREMENTS
Certain assets are measured at estimated fair value on a non-recurring basis
and are not included in the tables presented above. The amounts below relate to
certain investments measured at estimated fair value during the period and
still held at the reporting dates.
[Enlarge/Download Table]
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------------------------
2011 2010 2009
---------------------------------- --------------------------------- ---------------------------------
CARRYING ESTIMATED NET CARRYING ESTIMATED NET CARRYING ESTIMATED NET
VALUE FAIR INVESTMENT VALUE FAIR INVESTMENT VALUE FAIR INVESTMENT
PRIOR TO VALUE AFTER GAINS PRIOR TO VALUE AFTER GAINS PRIOR TO VALUE AFTER GAINS
MEASUREMENT MEASUREMENT (LOSSES) MEASUREMENT MEASUREMENT (LOSSES) MEASUREMENT MEASUREMENT (LOSSES)
----------- ----------- ---------- ----------- ----------- ---------- ----------- ----------- ----------
(IN MILLIONS)
Other limited
partnership
interests (1)... $ -- $ -- $ -- $ 4 $ 3 $ (1) $ 21 $ 4 $ (17)
Real estate joint
ventures (2).... $ -- $ -- $ -- $ 3 $ 1 $ (2) $ 7 $ 5 $ (2)
--------
(1)Other limited partnership interests -- The impaired investments presented
above were accounted for using the cost method. Impairments on these cost
method investments were recognized at estimated fair value determined from
information provided in the financial statements of the underlying entities
in the period in which the impairment was incurred. These impairments to
estimated fair value represent non-recurring fair value measurements that
have been classified as Level 3 due to the limited activity and price
transparency inherent in the market for such investments. This category
includes several private equity and debt funds that typically invest
primarily in international leveraged buyout funds. The estimated fair values
of these investments have been determined using the NAV of the Company's
ownership interest in the partners' capital. Distributions from these
investments will be generated from investment gains, from operating income
from the underlying investments of the funds and from liquidation of the
underlying assets of the funds. It is estimated that the underlying assets
of the funds will be liquidated over the next two to 10 years. There were no
unfunded commitments for these investments at December 31, 2011. Unfunded
commitments for these investments were $4 million at December 31, 2010.
(2)Real estate joint ventures -- The impaired investments presented above were
accounted for using the cost method. Impairments on these cost method
investments were recognized at estimated fair value determined from
information provided in the financial statements of the underlying entities
in the period in which the impairment was incurred. These impairments to
estimated fair value represent non-recurring fair value measurements that
have been classified as Level 3 due to the limited activity and price
transparency inherent in the market for such investments. This category
includes several real estate funds that typically invest primarily in
commercial real estate. The estimated fair values of these investments have
been determined using the NAV of the Company's ownership interest in the
partners' capital. Distributions from these investments will be generated
from investment gains, from operating income from the underlying investments
of the funds and from liquidation of the underlying assets of the funds. It
is estimated that the underlying assets of the funds will be liquidated over
the next two to 10 years. There were no unfunded commitments for these
investments at December 31, 2011. Unfunded commitments for these investments
were less than $1 million at December 31, 2010.
78
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
FAIR VALUE OF FINANCIAL INSTRUMENTS
Amounts related to the Company's financial instruments that were not measured
at fair value on a recurring basis, were as follows:
[Enlarge/Download Table]
DECEMBER 31,
------------------------------------------------------
2011 2010
--------------------------- --------------------------
ESTIMATED ESTIMATED
NOTIONAL CARRYING FAIR NOTIONAL CARRYING FAIR
AMOUNT VALUE VALUE AMOUNT VALUE VALUE
-------- -------- --------- -------- -------- ---------
(IN MILLIONS)
ASSETS:
Mortgage loans, net................................. $ 1,508 $ 1,617 $ 1,175 $ 1,249
Policy loans........................................ $ 102 $ 104 $ 64 $ 64
Real estate joint ventures (1)...................... $ 7 $ 8 $ 6 $ 5
Other limited partnership interests (1)............. $ 9 $ 11 $ 8 $ 7
Short-term investments (2).......................... $ -- $ -- $ 5 $ 5
Other invested assets (1)........................... $ 125 $ 139 $ -- $ --
Cash and cash equivalents........................... $ 108 $ 108 $ 240 $ 240
Accrued investment income........................... $ 120 $ 120 $ 105 $ 105
Premiums, reinsurance and other receivables (1)..... $ 5,379 $ 6,167 $ 5,526 $ 5,943
LIABILITIES:
PABs (1)............................................ $ 6,316 $ 6,954 $ 6,462 $ 7,001
Payables for collateral under securities loaned and
other transactions................................ $ 1,672 $ 1,672 $ 1,246 $ 1,246
Long-term debt...................................... $ 42 $ 50 $ 45 $ 45
Other liabilities (1)............................... $ 147 $ 147 $ 137 $ 137
Separate account liabilities (1).................... $ 985 $ 985 $ 1,125 $ 1,125
COMMITMENTS: (3)
Mortgage loan commitments........................... $ 3 $ -- $ -- $ 80 $ -- $ (1)
Commitments to fund private corporate bond
investments....................................... $64 $ -- $ 9 $ 66 $ -- $ 3
--------
(1)Carrying values presented herein differ from those presented in the
consolidated balance sheets because certain items within the respective
financial statement caption are not considered financial instruments.
Financial statement captions excluded from the table above are not
considered financial instruments.
(2)Short-term investments as presented in the table above differ from the
amounts presented in the consolidated balance sheets because this table does
not include short-term investments that meet the definition of a security,
which are measured at estimated fair value on a recurring basis.
(3)Commitments are off-balance sheet obligations. Negative estimated fair
values represent off-balance sheet liabilities.
79
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The methods and assumptions used to estimate the fair value of financial
instruments are summarized as follows:
The assets and liabilities measured at estimated fair value on a recurring
basis include: fixed maturity securities, equity securities, short-term
investments, derivative assets and liabilities, net embedded derivatives within
asset and liability host contracts and separate account assets. These assets
and liabilities are described in the section "-- Recurring Fair Value
Measurements" and, therefore, are excluded from the table above. The estimated
fair value for these financial instruments approximates carrying value.
Mortgage Loans
The Company originates mortgage loans principally for investment purposes.
These loans are principally carried at amortized cost. The estimated fair value
of mortgage loans is primarily determined by estimating expected future cash
flows and discounting them using current interest rates for similar mortgage
loans with similar credit risk.
Policy Loans
For policy loans with fixed interest rates, estimated fair values are
determined using a discounted cash flow model applied to groups of similar
policy loans determined by the nature of the underlying insurance liabilities.
Cash flow estimates are developed 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. The estimated fair
value for policy loans with variable interest rates approximates carrying value
due to the absence of borrower credit risk and the short time period between
interest rate resets, which presents minimal risk of a material change in
estimated fair value due to changes in market interest rates.
Real Estate Joint Ventures and Other Limited Partnership Interests
Real estate joint ventures and other limited partnership interests included
in the preceding table consist of those investments accounted for using the
cost method. The remaining carrying value recognized in the consolidated
balance sheets represents investments in real estate joint ventures and other
limited partnership interests accounted for using the equity method, which do
not meet the definition of financial instruments for which fair value is
required to be disclosed.
The estimated fair values for real estate joint ventures and other limited
partnership interests accounted for under the cost method are generally based
on the Company's share of the NAV as provided in the financial statements of
the investees. In certain circumstances, management may adjust the NAV by a
premium or discount when it has sufficient evidence to support applying such
adjustments.
Short-term Investments
Certain short-term investments do not qualify as securities and are
recognized at amortized cost in the consolidated balance sheets. For these
instruments, the Company believes that there is minimal risk of material
changes in interest rates or credit of the issuer such that estimated fair
value approximates carrying value. In light of recent market conditions,
short-term investments have been monitored to ensure there is sufficient demand
and maintenance of issuer credit quality and the Company has determined
additional adjustment is not required.
80
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Other Invested Assets
Other invested assets within the preceding table are 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.
Cash and Cash Equivalents
Due to the short-term maturities of cash and cash equivalents, the Company
believes there is minimal risk of material changes in interest rates or credit
of the issuer such that estimated fair value generally approximates carrying
value. In light of recent market conditions, cash and cash equivalent
instruments have been monitored to ensure there is sufficient demand and
maintenance of issuer credit quality, or sufficient solvency in the case of
depository institutions, and the Company has determined additional adjustment
is not required.
Accrued Investment Income
Due to the short term until settlement of accrued investment income, the
Company believes there is minimal risk of material changes in interest rates or
credit of the issuer such that estimated fair value approximates carrying
value. In light of recent market conditions, the Company has monitored the
credit quality of the issuers and has determined additional adjustment is not
required.
Premiums, Reinsurance and Other Receivables
Premiums, reinsurance and other receivables in the preceding table are
principally comprised of certain amounts recoverable under reinsurance
agreements and amounts receivable for securities sold but not yet settled.
Premiums receivable and those amounts recoverable under reinsurance
agreements determined to transfer significant risk are not financial
instruments subject to disclosure and thus have been excluded from the amounts
presented in the preceding table. Amounts recoverable under ceded 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 included in the preceding table. The estimated fair value is determined as
the present value of expected future cash flows, which were discounted using an
interest rate determined to reflect the appropriate credit standing of the
assuming counterparty.
PABs
PABs in the table above include investment contracts. Embedded derivatives on
investment contracts and certain variable annuity guarantees accounted for as
embedded derivatives are included in this caption in the consolidated financial
statements but excluded from this caption in the table above as they are
separately presented in "-- Recurring Fair Value Measurements." The remaining
difference between the amounts reflected as PABs in the preceding table and
those recognized in the consolidated balance sheets represents those amounts
due under contracts that satisfy the definition of insurance contracts and are
not considered financial instruments.
The investment contracts primarily include fixed deferred annuities, fixed
term payout annuities and total control accounts. The fair values for these
investment contracts are estimated by discounting best estimate future cash
flows using current market risk-free interest rates and adding a spread to
reflect the nonperformance risk in the liability.
81
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Payables for Collateral Under Securities Loaned and Other Transactions
The estimated fair value for payables for collateral under securities loaned
and other transactions approximates carrying value. The related agreements to
loan securities are short-term in nature such that the Company believes there
is limited risk of a material change in market interest rates. Additionally,
because borrowers are cross-collateralized by the borrowed securities, the
Company believes no additional consideration for changes in nonperformance risk
are necessary.
Long-term Debt
The estimated fair value of long-term debt is generally determined by
discounting expected future cash flows using market rates currently available
for debt with similar remaining maturities and reflecting the credit risk of
the Company, including inputs when available, from actively traded debt of
other companies with similar types of borrowing arrangements.
Other Liabilities
Other liabilities included in the table above reflect those other liabilities
that satisfy the definition of financial instruments subject to disclosure.
These items consist primarily of 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 included in the preceding table represent those
balances due to policyholders under contracts that are classified as investment
contracts. The remaining amounts presented in the consolidated balance sheets
represent those contracts classified as insurance contracts, which do not
satisfy the definition of financial instruments.
Separate account liabilities classified as investment contracts primarily
represent variable annuities with no significant mortality risk to the Company
such that the death benefit is equal to the account balance and certain
contracts that provide for benefit funding.
Separate account liabilities are recognized in the consolidated balance
sheets at an equivalent value of the related separate account assets. Separate
account assets, which equal net deposits, net investment income and realized
and unrealized investment gains and losses, are fully offset by corresponding
amounts credited to the contractholders' liability which is reflected in
separate account liabilities. Since separate account liabilities are fully
funded by cash flows from the separate account assets which are recognized at
estimated fair value as described in the section "-- Recurring Fair Value
Measurements," the Company believes the value of those assets approximates the
estimated fair value of the related separate account liabilities.
Mortgage Loan Commitments and Commitments to Fund Private Corporate Bond
Investments
The estimated fair values for mortgage loan commitments that will be held for
investment and commitments to fund private corporate bonds that will be held
for investment reflected in the above table represents the difference between
the discounted expected future cash flows using interest rates that incorporate
current credit risk for similar instruments on the reporting date and the
principal amounts of the commitments.
82
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
5. DEFERRED POLICY ACQUISITION COSTS
Information regarding DAC was as follows:
[Download Table]
DAC
-------------
(IN MILLIONS)
Balance at January 1, 2009....................................... $ 2,082
Capitalizations.................................................. 727
-------
Subtotal....................................................... 2,809
-------
Amortization related to:
Net investment gains (losses).................................. 136
Other expenses................................................. (332)
-------
Total amortization............................................ (196)
-------
Unrealized investment gains (losses)............................. (59)
-------
Balance at December 31, 2009..................................... 2,554
Capitalizations.................................................. 880
-------
Subtotal....................................................... 3,434
-------
Amortization related to:
Net investment gains (losses).................................. (59)
Other expenses................................................. (364)
-------
Total amortization............................................ (423)
-------
Unrealized investment gains (losses)............................. (46)
-------
Balance at December 31, 2010..................................... 2,965
Capitalizations.................................................. 1,367
-------
Subtotal....................................................... 4,332
-------
Amortization related to:
Net investment gains (losses).................................. (313)
Other expenses................................................. (475)
-------
Total amortization............................................ (788)
-------
Unrealized investment gains (losses)............................. (2)
-------
Balance at December 31, 2011..................................... $ 3,542
=======
Amortization of DAC is attributed to both investment gains and 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.
83
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
6. INSURANCE
VALUE OF DISTRIBUTION AGREEMENTS
Information regarding VODA, which was reported in other assets, was as
follows:
[Download Table]
AMOUNT
-------------
(IN MILLIONS)
Balance at January 1, 2009....................................... $ 160
Amortization..................................................... (5)
------
Balance at December 31, 2009..................................... 155
Amortization..................................................... (7)
------
Balance at December 31, 2010..................................... 148
Amortization..................................................... (8)
------
Balance at December 31, 2011..................................... $ 140
======
The estimated future amortization expense allocated to other expenses for the
next five years for VODA is $10 million in 2012, $11 million in 2013,
$12 million in 2014, $12 million in 2015 and $12 million in 2016.
SALES INDUCEMENTS
Information regarding deferred sales inducements, which are reported in other
assets, was as follows:
[Download Table]
AMOUNT
-------------
(IN MILLIONS)
Balance at January 1, 2009....................................... $ 378
Capitalization................................................... 122
Amortization..................................................... (50)
------
Balance at December 31, 2009..................................... 450
Capitalization................................................... 98
Amortization..................................................... (51)
------
Balance at December 31, 2010..................................... 497
Capitalization................................................... 79
Amortization..................................................... (73)
------
Balance at December 31, 2011..................................... $ 503
======
SEPARATE ACCOUNTS
Separate account assets and liabilities primarily include pass-through
separate accounts totaling $56.6 billion and $42.4 billion at December 31, 2011
and 2010, respectively, for which the policyholder assumes all investment risk.
For the years ended December 31, 2011, 2010 and 2009, there were no
investment gains (losses) on transfers of assets from the general account to
the separate accounts.
84
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
GUARANTEES
The Company issues annuity contracts which may include contractual guarantees
to the contractholder for: (i) return of no less than total deposits made to
the contract less any partial withdrawals ("return of net deposits"); and
(ii) the highest contract value on a specified anniversary date minus any
withdrawals following the contract anniversary, or total deposits made to the
contract less any partial withdrawals plus a minimum return ("anniversary
contract value" or "minimum return"). These guarantees include benefits that
are payable in the event of death or at annuitization.
The Company also issues universal and variable life contracts where the
Company contractually guarantees to the contractholder a secondary guarantee
benefit.
Information regarding the types of guarantees relating to annuity contracts
and universal and variable life contracts was as follows:
[Enlarge/Download Table]
DECEMBER 31,
-----------------------------------------------------------
2011 2010
---------------------------- ---------------------------
IN THE AT IN THE AT
EVENT OF DEATH ANNUITIZATION EVENT OF DEATH ANNUITIZATION
-------------- ------------- -------------- -------------
(IN MILLIONS)
ANNUITY CONTRACTS (1)
RETURN OF NET DEPOSITS
Separate account value.................. $ 27,161 N/A $ 21,840 N/A
Net amount at risk (2).................. $ 795 (3) N/A $ 415 (3) N/A
Average attained age of contractholders. 63 years N/A 62 years N/A
ANNIVERSARY CONTRACT VALUE OR MINIMUM
RETURN
Separate account value.................. $ 33,558 $ 41,713 $ 23,624 $ 30,613
Net amount at risk (2).................. $ 2,988 (3) $ 6,595 (4) $ 1,378 (3) $ 3,523 (4)
Average attained age of contractholders. 64 years 62 years 64 years 62 years
[Download Table]
DECEMBER 31,
-------------------------
2011 2010
------------ ---------
SECONDARY GUARANTEES
-------------------------
(IN MILLIONS)
UNIVERSAL AND VARIABLE LIFE CONTRACTS (1)
Account value (general and separate account). $ 3,019 $ 1,578
Net amount at risk (2)....................... $ 58,776 (3) $ 29,454 (3)
Average attained age of policyholders........ 55 years 56 years
--------
(1)The Company's annuity and life contracts with guarantees may offer more than
one type of guarantee in each contract. Therefore, the amounts listed above
may not be mutually exclusive.
(2)The net amount at risk is based on the direct and assumed amount at risk
(excluding ceded reinsurance).
(3)The net amount at risk for guarantees of amounts in the event of death is
defined as the current GMDB in excess of the current account balance at the
balance sheet date.
85
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
(4)The net amount at risk for guarantees of amounts at annuitization is defined
as the present value of the minimum guaranteed annuity payments available to
the contractholder determined in accordance with the terms of the contract
in excess of the current account balance.
Information regarding the liabilities for guarantees (excluding base policy
liabilities) relating to annuity and universal and variable life contracts was
as follows:
[Download Table]
ANNUITY CONTRACTS
-----------------------
UNIVERSAL AND
VARIABLE LIFE
CONTRACTS
GUARANTEED GUARANTEED -------------
DEATH ANNUITIZATION SECONDARY
BENEFITS BENEFITS GUARANTEES TOTAL
---------- ------------- ------------- ------
(IN MILLIONS)
DIRECT
Balance at January 1, 2009... $ 73 $ 221 $ 52 $ 346
Incurred guaranteed benefits. 27 (6) 172 193
Paid guaranteed benefits..... (45) -- -- (45)
------- ------- ------- ------
Balance at December 31, 2009. 55 215 224 494
Incurred guaranteed benefits. 23 66 246 335
Paid guaranteed benefits..... (5) -- -- (5)
------- ------- ------- ------
Balance at December 31, 2010. 73 281 470 824
Incurred guaranteed benefits. 77 128 139 344
Paid guaranteed benefits..... (18) -- -- (18)
------- ------- ------- ------
Balance at December 31, 2011. $ 132 $ 409 $ 609 $1,150
======= ======= ======= ======
CEDED
Balance at January 1, 2009... $ 73 $ 72 $ -- $ 145
Incurred guaranteed benefits. 27 2 142 171
Paid guaranteed benefits..... (45) -- -- (45)
------- ------- ------- ------
Balance at December 31, 2009. 55 74 142 271
Incurred guaranteed benefits. 23 23 192 238
Paid guaranteed benefits..... (5) -- -- (5)
------- ------- ------- ------
Balance at December 31, 2010. 73 97 334 504
Incurred guaranteed benefits. 77 44 123 244
Paid guaranteed benefits..... (18) -- -- (18)
------- ------- ------- ------
Balance at December 31, 2011. $ 132 $ 141 $ 457 $ 730
======= ======= ======= ======
NET
Balance at January 1, 2009... $ -- $ 149 $ 52 $ 201
Incurred guaranteed benefits. -- (8) 30 22
Paid guaranteed benefits..... -- -- -- --
------- ------- ------- ------
Balance at December 31, 2009. -- 141 82 223
Incurred guaranteed benefits. -- 43 54 97
Paid guaranteed benefits..... -- -- -- --
------- ------- ------- ------
Balance at December 31, 2010. -- 184 136 320
Incurred guaranteed benefits. -- 84 16 100
Paid guaranteed benefits..... -- -- -- --
------- ------- ------- ------
Balance at December 31, 2011. $ -- $ 268 $ 152 $ 420
======= ======= ======= ======
86
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Account balances of contracts with insurance guarantees were invested in
separate account asset classes as follows at:
[Download Table]
DECEMBER 31,
-----------------
2011 2010
-------- --------
(IN MILLIONS)
Fund Groupings:
Equity.................................................... $ 24,325 $ 21,558
Balanced.................................................. 26,785 16,456
Bond...................................................... 2,983 1,941
Specialty................................................. 727 705
Money Market.............................................. 587 521
-------- --------
Total................................................... $ 55,407 $ 41,181
======== ========
7. REINSURANCE
The Company participates in reinsurance activities in order to limit losses,
minimize exposure to significant risks and provide additional capacity for
future growth.
For its individual life insurance products, the Company has historically
reinsured the mortality risk primarily on an excess of retention basis or a
quota share basis. The Company retains up to $100,000 per life and reinsures
100% of amounts in excess of the Company's retention limits for most new
individual life insurance policies and for certain individual life insurance
policies the Company reinsures up to 90% of the mortality risk. In addition to
reinsuring mortality risk as described above, the Company reinsures other
risks, as well as specific coverages. Placement of reinsurance is done
primarily on an automatic basis and also on a facultative basis for risks with
specific characteristics.
The Company evaluates its reinsurance programs routinely and may increase or
decrease its retention at any time. The Company also reinsures the risk
associated with secondary death benefit guarantees on certain universal life
insurance policies to an affiliate.
The Company reinsures 100% of the living and death benefit guarantees
associated with its variable annuities issued since 2001 to 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 new production of fixed annuities to an affiliated reinsurer.
The Company has exposure to catastrophes, which could contribute to
significant fluctuations in the Company's results of operations. The Company
uses excess of retention and quota share reinsurance agreements to provide
greater diversification of risk and minimize exposure to larger risks.
The Company reinsures its business through a diversified group of
well-capitalized, highly rated reinsurers. The Company analyzes recent trends
in arbitration and litigation outcomes in disputes, if any, with its
reinsurers. The Company monitors ratings and evaluates the financial strength
of its reinsurers by analyzing their financial statements. In addition, the
reinsurance recoverable balance due from each reinsurer is evaluated as part of
the overall monitoring process. Recoverability of reinsurance recoverable
balances is evaluated based on these
87
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
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, 2011 and 2010, were
immaterial.
The Company has secured certain reinsurance recoverable balances with various
forms of collateral, including secured trusts and funds withheld accounts. The
Company had $283 million and $262 million of unsecured unaffiliated reinsurance
recoverable balances at December 31, 2011 and 2010, respectively.
At December 31, 2011, the Company had $427 million of net unaffiliated ceded
reinsurance recoverables. Of this total, $377 million, or 88%, were with the
Company's five largest unaffiliated ceded reinsurers, including $233 million of
which were unsecured. At December 31, 2010, the Company had $397 million of net
unaffiliated ceded reinsurance recoverables. Of this total, $337 million, or
85%, were with the Company's five largest unaffiliated ceded reinsurers,
including $201 million of which were unsecured.
88
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The amounts in the consolidated statements of operations include the impact
of reinsurance. Information regarding the effect of reinsurance was as follows:
[Enlarge/Download Table]
YEARS ENDED DECEMBER 31,
--------------------------
2011 2010 2009
-------- -------- ------
(IN MILLIONS)
PREMIUMS:
Direct premiums............................................... $ 961 $ 562 $ 564
Reinsurance assumed........................................... 7 13 14
Reinsurance ceded............................................. (321) (218) (185)
-------- -------- ------
Net premiums................................................ $ 647 $ 357 $ 393
======== ======== ======
UNIVERSAL LIFE AND INVESTMENT-TYPE PRODUCT POLICY FEES:
Direct universal life and investment-type product policy fees. $ 1,694 $ 1,224 $ 834
Reinsurance assumed........................................... 90 120 115
Reinsurance ceded............................................. (496) (353) (204)
-------- -------- ------
Net universal life and investment-type product policy fees.. $ 1,288 $ 991 $ 745
======== ======== ======
OTHER REVENUES:
Direct other revenues......................................... $ 99 $ 63 $ 39
Reinsurance assumed........................................... -- -- --
Reinsurance ceded............................................. 215 239 198
-------- -------- ------
Net other revenues.......................................... $ 314 $ 302 $ 237
======== ======== ======
POLICYHOLDER BENEFITS AND CLAIMS:
Direct policyholder benefits and claims....................... $ 1,363 $ 944 $ 807
Reinsurance assumed........................................... 15 29 8
Reinsurance ceded............................................. (599) (487) (358)
-------- -------- ------
Net policyholder benefits and claims........................ $ 779 $ 486 $ 457
======== ======== ======
INTEREST CREDITED TO POLICYHOLDER ACCOUNT BALANCES:
Direct interest credited to policyholder account balances..... $ 436 $ 404 $ 377
Reinsurance assumed........................................... 68 64 64
Reinsurance ceded............................................. (80) (55) (32)
-------- -------- ------
Net interest credited to policyholder account balances...... $ 424 $ 413 $ 409
======== ======== ======
OTHER EXPENSES:
Direct other expenses......................................... $ 1,389 $ 842 $ 465
Reinsurance assumed........................................... 48 90 105
Reinsurance ceded............................................. 145 92 43
-------- -------- ------
Net other expenses.......................................... $ 1,582 $ 1,024 $ 613
======== ======== ======
89
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The amounts in the consolidated balance sheets include the impact of
reinsurance. Information regarding the effect of reinsurance was as follows at:
[Download Table]
DECEMBER 31, 2011
-------------------------------------
TOTAL
BALANCE
DIRECT ASSUMED CEDED SHEET
-------- --------- -------- --------
(IN MILLIONS)
ASSETS:
Premiums, reinsurance and other receivables. $ 374 $ 34 $ 12,271 $ 12,679
Deferred policy acquisition costs........... 3,986 140 (584) 3,542
-------- -------- -------- --------
Total assets............................... $ 4,360 $ 174 $ 11,687 $ 16,221
======== ======== ======== ========
LIABILITIES:
Future policy benefits...................... $ 3,044 $ 41 $ -- $ 3,085
Other policy-related balances............... 181 1,510 758 2,449
Other liabilities........................... 211 10 4,093 4,314
-------- -------- -------- --------
Total liabilities.......................... $ 3,436 $ 1,561 $ 4,851 $ 9,848
======== ======== ======== ========
DECEMBER 31, 2010
-------------------------------------
TOTAL
BALANCE
DIRECT ASSUMED CEDED SHEET
-------- --------- -------- --------
(IN MILLIONS)
ASSETS:
Premiums, reinsurance and other receivables. $ 211 $ 40 $ 9,527 $ 9,778
Deferred policy acquisition costs........... 3,287 164 (486) 2,965
-------- -------- -------- --------
Total assets............................... $ 3,498 $ 204 $ 9,041 $ 12,743
======== ======== ======== ========
LIABILITIES:
Future policy benefits...................... $ 2,051 $ 41 $ -- $ 2,092
Other policy-related balances............... 177 1,435 508 2,120
Other liabilities........................... 246 12 3,343 3,601
-------- -------- -------- --------
Total liabilities.......................... $ 2,474 $ 1,488 $ 3,851 $ 7,813
======== ======== ======== ========
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 $4.2
billion and $4.3 billion at December 31, 2011 and 2010, respectively. There
were no deposit liabilities on reinsurance at both December 31, 2011 and 2010.
RELATED PARTY REINSURANCE TRANSACTIONS
The Company has reinsurance agreements with certain MetLife subsidiaries,
including MLIC, Exeter, General American Life Insurance Company, MICC and
MetLife Reinsurance Company of Vermont, all of which are related parties.
90
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Information regarding the effect of affiliated reinsurance included in the
consolidated statements of operations was as follows:
[Enlarge/Download Table]
YEARS ENDED DECEMBER 31,
---------------------------
2011 2010 2009
------ ------ ------
(IN MILLIONS)
PREMIUMS:
Reinsurance assumed.......................................... $ 7 $ 13 $ 14
Reinsurance ceded............................................ (284) (190) (164)
------ ------ ------
Net premiums............................................... $ (277) $ (177) $ (150)
====== ====== ======
UNIVERSAL LIFE AND INVESTMENT-TYPE PRODUCT POLICY FEES:
Reinsurance assumed.......................................... $ 90 $ 120 $ 115
Reinsurance ceded............................................ (416) (279) (151)
------ ------ ------
Net universal life and investment-type product policy fees. $ (326) $ (159) $ (36)
====== ====== ======
OTHER REVENUES:
Reinsurance assumed.......................................... $ -- $ -- $ --
Reinsurance ceded............................................ 215 239 198
------ ------ ------
Net other revenues......................................... $ 215 $ 239 $ 198
====== ====== ======
POLICYHOLDER BENEFITS AND CLAIMS:
Reinsurance assumed.......................................... $ 15 $ 29 $ 8
Reinsurance ceded............................................ (497) (323) (219)
------ ------ ------
Net policyholder benefits and claims....................... $ (482) $ (294) $ (211)
====== ====== ======
INTEREST CREDITED TO POLICYHOLDER ACCOUNT BALANCES:
Reinsurance assumed.......................................... $ 68 $ 64 $ 64
Reinsurance ceded............................................ (80) (55) (32)
------ ------ ------
Net interest credited to policyholder account balances..... $ (12) $ 9 $ 32
====== ====== ======
OTHER EXPENSES:
Reinsurance assumed.......................................... $ 48 $ 90 $ 105
Reinsurance ceded............................................ 144 92 42
------ ------ ------
Net other expenses......................................... $ 192 $ 182 $ 147
====== ====== ======
Information regarding the effect of affiliated reinsurance included in the
consolidated balance sheets was as follows at:
[Enlarge/Download Table]
DECEMBER 31,
------------------------------------
2011 2010
----------------- -----------------
ASSUMED CEDED ASSUMED CEDED
-------- -------- -------- --------
(IN MILLIONS)
ASSETS:
Premiums, reinsurance and other receivables.......... $ 34 $ 11,810 $ 40 $ 9,117
Deferred policy acquisition costs.................... 140 (583) 164 (484)
-------- -------- -------- --------
Total assets....................................... $ 174 $ 11,227 $ 204 $ 8,633
======== ======== ======== ========
LIABILITIES:
Future policy benefits............................... $ 41 $ -- $ 41 $ --
Other policy-related balances........................ 1,510 758 1,435 508
Other liabilities.................................... 10 3,913 12 3,195
-------- -------- -------- --------
Total liabilities.................................. $ 1,561 $ 4,671 $ 1,488 $ 3,703
======== ======== ======== ========
91
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
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 also 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 $3.0 billion and $930 million at December 31, 2011 and 2010,
respectively. For the years ended December 31, 2011, 2010 and 2009, net
derivative gains (losses) associated with the embedded derivatives included
$1.7 billion, ($7) million, and ($1.5) billion, respectively.
The Company cedes two blocks of business to an affiliate on a 90% coinsurance
with funds withheld basis. Certain contractual features of this agreement
qualify as embedded derivatives, which 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 funds withheld
balance by $416 million and $5 million at December 31, 2011 and 2010,
respectively. Net derivative gains (losses) associated with the embedded
derivatives were ($411) million, ($17) million and ($16) million at
December 31, 2011, 2010 and 2009, respectively. The reinsurance agreement also
includes an experience refund provision, whereby some or all of the profits on
the underlying reinsurance agreement are returned to the Company from the
affiliated reinsurer during the first several years of the reinsurance
agreement. The experience refund reduced the funds withheld by the Company from
the affiliated reinsurer by $337 million and $304 million at December 31, 2011
and 2010, respectively, and is considered unearned revenue, amortized over the
life of the contract using the same assumptions as used for the DAC associated
with the underlying policies. Amortization and interest of the unearned revenue
associated with the experience refund was $91 million, $81 million and
$36 million at December 31, 2011, 2010 and 2009, respectively, and is included
in premiums and universal life and investment-type product policy fees in the
consolidated statements of operations. At December 31, 2011 and 2010, unearned
revenue related to the experience refund was $806 million and $560 million,
respectively, and was included in other policy-related balances in the
consolidated balance sheets.
The Company has secured certain reinsurance recoverable balances with various
forms of collateral, including secured trusts, funds withheld accounts and
irrevocable letters of credit. The Company had $4.6 billion and $4.0 billion of
unsecured affiliated reinsurance recoverable balances at December 31, 2011 and
2010, 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 $4.1 billion and $4.2 billion, at December 31, 2011 and 2010,
respectively. There were no deposit liabilities on affiliated reinsurance at
both December 31, 2011 and 2010.
8. LONG-TERM DEBT
On December 23, 2010, Greater Sandhill I, LLC ("Greater Sandhill"), an
affiliate, issued to a third party, long-term notes for $45 million maturing in
2030 with an interest rate of 7.028%. The notes were issued in exchange for
certain investments included in other invested assets. During the year ended
December 31, 2011, Greater Sandhill repaid $3 million of the long term notes.
The outstanding balance of the notes was $42 million and $45 million at
December 31, 2011 and 2010, respectively.
The aggregate maturities of long-term debt at December 31, 2011 are $1
million in each of the years 2012, 2013, 2014, 2015 and 2016 and $37 million
thereafter.
92
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Interest expense related to the Company's indebtedness included in other
expenses was $3 million and less than $1 million for the years ended
December 31, 2011 and 2010, respectively. The Company had no interest expense
related to indebtedness for the year ended December 31, 2009.
9. INCOME TAX
The provision for income tax was as follows:
[Download Table]
YEARS ENDED DECEMBER 31,
---------------------------
2011 2010 2009
------ ------ ------
(IN MILLIONS)
Current:
Federal...................................... $ (44) $ (18) $ 8
Deferred:
Federal...................................... 247 103 (193)
----- ----- ------
Provision for income tax expense (benefit). $ 203 $ 85 $ (185)
===== ===== ======
The reconciliation of the income tax provision at the U.S. statutory rate to
the provision for income tax as reported was as follows:
[Download Table]
YEARS ENDED DECEMBER 31,
---------------------------
2011 2010 2009
------ ------ ------
(IN MILLIONS)
Tax provision at U.S. statutory rate.......... $ 260 $ 132 $ (134)
Tax effect of:
Tax-exempt investment income................. (45) (43) (33)
Prior year tax............................... (5) -- (18)
Tax credits.................................. (7) (4) --
----- ----- ------
Provision for income tax expense (benefit). $ 203 $ 85 $ (185)
===== ===== ======
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:
[Download Table]
DECEMBER 31,
--------------
2011 2010
------- ------
(IN MILLIONS)
Deferred income tax assets:
Policyholder liabilities and receivables.... $ -- $ 243
Investments, including derivatives.......... 283 21
Loss and credit carryforwards............... 96 106
Other....................................... -- 1
------- -----
379 371
------- -----
Deferred income tax liabilities:
DAC......................................... 1,024 892
Policyholder liabilities and receivables.... 120 --
Net unrealized investment gains............. 371 59
Other....................................... 4 --
------- -----
1,519 951
------- -----
Net deferred income tax asset (liability). $(1,140) $(580)
======= =====
93
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Domestic capital loss carryforwards of $6 million at December 31, 2011 will
expire beginning in 2013. Tax credit carryforwards of $93 million at
December 31, 2011 will expire beginning in 2016.
The Company participates in a tax sharing agreement with MetLife. Under this
agreement, current federal income tax expense (benefit) is computed on a
separate return basis and provides that members shall make payments or receive
reimbursements to the extent that their income (loss) contributes to or reduces
consolidated federal tax expense. Pursuant to this tax sharing agreement, the
amounts due from affiliates include $92 million for 2011.
Prior to 2011, the Company participated in a tax sharing agreement with MICC.
Under this agreement, current federal income tax expense (benefit) is computed
on a separate return basis and provides that members shall make payments or
receive reimbursements to the extent that their income (loss) contributes to or
reduces consolidated federal tax expense. Pursuant to this tax sharing
agreement, the amounts due from affiliates include $25 million for 2010 and the
amounts due to affiliates include $14 million for 2009.
Pursuant to Internal Revenue Service ("IRS") rules, MICC and its
subsidiaries, including the Company, was excluded from MetLife's life/non-life
consolidated federal tax return for the five years subsequent to MetLife's July
2005 acquisition of MICC. In 2011, MICC and its subsidiaries, including the
Company, joined the consolidated return and became a party to the MetLife tax
sharing agreement. Accordingly, the Company's losses will be eligible to be
included in the consolidated return and the resulting tax savings to MetLife
will generate a payment to the Company for the losses used.
The Company files income tax returns with the U.S. federal government and
various state and local jurisdictions. The Company is under continuous
examination by the IRS and other tax authorities in jurisdictions in which the
Company has significant business operations. The income tax years under
examination vary by jurisdiction. With a few exceptions, the Company is no
longer subject to U.S. federal, state and local income tax examinations by tax
authorities for years prior to 2003. The IRS exam of the current audit cycle,
years 2003 to 2006, began in April 2010.
The U.S. Treasury Department and the IRS have indicated that they intend to
address through regulations the methodology to be followed in determining the
dividends received deduction ("DRD"), related to variable life insurance and
annuity contracts. The DRD reduces the amount of dividend income subject to tax
and is a significant component of the difference between the actual tax expense
and expected amount determined using the federal statutory tax rate of 35%. Any
regulations that the IRS ultimately proposes for issuance in this area 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, 2011 and 2010, the Company
recognized an income tax benefit of $46 million and $28 million, respectively,
related to the separate account DRD. The 2011 benefit included a benefit of
$1 million related to a true-up of the 2010 tax return. The 2010 benefit
included an expense of $15 million related to a true-up of the 2009 tax return.
94
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
10. CONTINGENCIES, COMMITMENTS AND GUARANTEES
CONTINGENCIES
LITIGATION
Over the past several years, the Company has faced claims, including class
action lawsuits, alleging improper marketing or sales of individual life
insurance policies, annuities, mutual funds or other products. Some of the
current cases seek substantial damages, including punitive and treble damages
and attorneys' fees. The Company continues to vigorously defend against the
claims in all pending matters. The Company believes adequate provision has been
made in its financial statements for all probable and reasonably estimable
losses for sales practices matters.
Unclaimed Property Inquiries
More than 30 U.S. jurisdictions are auditing MetLife, Inc. and certain of its
affiliates for compliance with unclaimed property laws. Additionally,
Metropolitan Life Insurance Company and certain of its affiliates have received
subpoenas and other regulatory inquiries from certain regulators and other
officials relating to claims-payment practices and compliance with unclaimed
property laws. An examination of these practices by the Illinois Department of
Insurance has been converted into a multistate targeted market conduct exam. On
July 5, 2011, the New York Insurance Department issued a letter requiring life
insurers doing business in New York to use data available on the U.S. Social
Security Administration's Death Master File or a similar database to identify
instances where death benefits under life insurance policies, annuities, and
retained asset accounts are payable, to locate and pay beneficiaries under such
contracts, and to report the results of the use of the data. It is possible
that other jurisdictions may pursue similar investigations or inquiries, may
join the multistate market conduct exam, or issue directives similar to the New
York Insurance Department's letter. It is possible that the audits, market
conduct exam, and related activity may result in additional payments to
beneficiaries, additional escheatment of funds deemed abandoned under state
laws, administrative penalties, interest, and changes to the Company's
procedures for the identification and escheatment of abandoned property.
Various litigation, claims and assessments against the Company, in addition
to those discussed previously or 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.
95
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
INSOLVENCY ASSESSMENTS
Most of the jurisdictions in which the Company is admitted to transact
business require insurers doing business within the jurisdiction to participate
in guaranty associations, which are organized to pay contractual benefits owed
pursuant to insurance policies issued by impaired, insolvent or failed
insurers. These associations levy assessments, up to prescribed limits, on all
member insurers in a particular state on the basis of the proportionate share
of the premiums written by member insurers in the lines of business in which
the impaired, insolvent or failed insurer engaged. Some states permit member
insurers to recover assessments paid through full or partial premium tax
offsets. Assets and liabilities held for insolvency assessments were as follows:
[Download Table]
DECEMBER 31,
-------------
2011 2010
------ ------
(IN MILLIONS)
Other Assets:
Premium tax offset for future undiscounted assessments....... $ 4 $ 2
Premium tax offsets currently available for paid assessments. 1 --
---- ---
$ 5 $ 2
==== ===
Other Liabilities:
Insolvency assessments....................................... $ 11 $ 3
==== ===
On September 1, 2011, the New York State Department of Financial Services
filed a liquidation plan for Executive Life Insurance Company of New York
("ELNY"), which had been under rehabilitation by the Liquidation Bureau since
1991. The plan will involve the satisfaction of insurers' financial obligations
under a number of state life and health insurance guaranty associations and
also contemplates that additional industry support for certain ELNY
policyholders will be provided. The Company recorded a net charge of
$4 million, after tax, related to ELNY.
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 $489 million
and $435 million at December 31, 2011 and 2010, 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 $3 million and $80 million at
December 31, 2011 and 2010, 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 $64 million and $66 million at
December 31, 2011 and 2010, respectively.
96
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
GUARANTEES
In the normal course of its business, the Company has provided certain
indemnities, guarantees and commitments to third parties pursuant to which it
may be required to make payments now or in the future. In the context of
acquisition, disposition, investment and other transactions, the Company has
provided indemnities and guarantees, including those related to tax,
environmental and other specific liabilities, and other indemnities and
guarantees that are triggered by, among other things, breaches of
representations, warranties or covenants provided by the Company. In addition,
in the normal course of business, the Company provides indemnifications to
counterparties in contracts with triggers similar to the foregoing, as well as
for certain other liabilities, such as third-party lawsuits. These obligations
are often subject to time limitations that vary in duration, including
contractual limitations and those that arise by operation of law, such as
applicable statutes of limitation. In some cases, the maximum potential
obligation under the indemnities and guarantees is subject to a contractual
limitation, while in other cases such limitations are not specified or
applicable. Since certain of these obligations are not subject to limitations,
the Company does not believe that it is possible to determine the maximum
potential amount that could become due under these guarantees in the future.
Management believes that it is unlikely the Company will have to make any
material payments under these indemnities, guarantees, or commitments.
In addition, the Company indemnifies its directors and officers as provided
in its charters and by-laws. Also, the Company indemnifies its agents for
liabilities incurred as a result of their representation of the Company's
interests. Since these indemnities are generally not subject to limitation with
respect to duration or amount, the Company does not believe that it is possible
to determine the maximum potential amount that could become due under these
indemnities in the future.
The Company had no liability for indemnities, guarantees and commitments at
both December 31, 2011 and 2010.
11. EQUITY
CAPITAL CONTRIBUTIONS
The Company received no cash contributions from MICC during the years ended
December 31, 2011 and 2010. During the year ended December 31, 2009, the
Company received cash contributions of $575 million from MICC.
STATUTORY EQUITY AND INCOME
MLI-USA's state of domicile imposes minimum risk-based capital ("RBC")
requirements that were developed by the National Association of Insurance
Commissioners ("NAIC"). The formulas for determining the amount of RBC specify
various weighting factors that are applied to financial balances or various
levels of activity based on the perceived degree of risk. Regulatory compliance
is determined by a ratio of total adjusted capital, as defined by the NAIC, to
authorized control level RBC, as defined by the NAIC. Companies below specific
trigger points or ratios are classified within certain levels, each of which
requires specified corrective action. MLI-USA exceeded the minimum RBC
requirements for all periods presented herein.
The NAIC has adopted the Codification of Statutory Accounting Principles
("Statutory Codification"). Statutory Codification is intended to standardize
regulatory accounting and reporting to state insurance
97
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
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 surplus notes as
surplus instead of debt, 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) (unaudited) of MLI-USA, a Delaware domiciled
insurer, was $178 million, $2 million and ($24) million for the years ended
December 31, 2011, 2010 and 2009, respectively. Statutory capital and surplus
(unaudited), as filed with the Delaware Department of Insurance, was $1.7
billion and $1.5 billion at December 31, 2011 and 2010, respectively.
DIVIDEND RESTRICTIONS
Under Delaware State Insurance Law, MLI-USA is permitted, without prior
insurance regulatory clearance, to pay a stockholder dividend to MICC as long
as the amount of the dividend, when aggregated with all other dividends in the
preceding 12 months does not exceed the greater of: (i) 10% of its surplus to
policyholders as of the end of the immediately preceding calendar year; or
(ii) its statutory net gain from operations for the immediately preceding
calendar year (excluding realized capital gains). MLI-USA will be permitted to
pay a dividend to MICC in excess of the greater of such two amounts only if it
files notice of the declaration of such a dividend and the amount thereof with
the Delaware Commissioner of Insurance ("Delaware Commissioner") and the
Delaware Commissioner either approves the distribution of the dividend or does
not disapprove the distribution within 30 days of its filing. In addition, any
dividend that exceeds earned surplus (defined as unassigned funds) as of the
last filed annual statutory statement requires insurance regulatory approval.
Under Delaware State Insurance Law, the Delaware Commissioner has broad
discretion in determining whether the financial condition of a stock life
insurance company would support the payment of such dividends to its
shareholders. During the years ended December 31, 2011, 2010 and 2009, MLI-USA
did not pay dividends to MICC. Because MLI-USA's statutory unassigned funds was
negative at December 31, 2011, MLI-USA cannot pay any dividends in 2012 without
prior regulatory approval.
98
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
OTHER COMPREHENSIVE INCOME (LOSS)
The following table sets forth the balance and changes in accumulated other
comprehensive income (loss) including reclassification adjustments required for
the years ended December 31, 2011, 2010 and 2009 in other comprehensive income
(loss) that are included as part of net income for the current year that have
been reported as a part of other comprehensive income (loss) in the current or
prior year:
[Enlarge/Download Table]
YEARS ENDED DECEMBER 31,
---------------------------
2011 2010 2009
------ ------ ------
(IN MILLIONS)
Holding gains (losses) on investments arising during the year................... $ 933 $ 346 $ 433
Income tax effect of holding gains (losses)..................................... (326) (122) (153)
Reclassification adjustments for recognized holding (gains) losses included in
current year income........................................................... (9) (47) (5)
Income tax effect of reclassification adjustments............................... 4 17 2
Allocation of holding (gains) losses on investments relating to other
policyholder amounts.......................................................... (29) (80) (59)
Income tax effect of allocation of holding (gains) losses to other policyholder
amounts....................................................................... 10 28 21
----- ----- -----
Net unrealized investment gains (losses), net of income tax..................... 583 142 239
Foreign currency translation adjustments, net of income tax..................... (1) -- --
----- ----- -----
Other comprehensive income (loss).............................................. $ 582 $ 142 $ 239
===== ===== =====
12. OTHER EXPENSES
Information on other expenses was as follows:
[Enlarge/Download Table]
YEARS ENDED DECEMBER 31,
---------------------------
2011 2010 2009
------- ------- ------
(IN MILLIONS)
Compensation................................................................... $ 234 $ 221 $ 86
Commissions.................................................................... 1,253 774 626
Volume-related costs........................................................... 121 92 270
Affiliated interest costs on ceded reinsurance................................. 211 102 47
Capitalization of DAC.......................................................... (1,367) (880) (727)
Amortization of DAC............................................................ 788 423 196
Interest expense on debt and debt issuance costs............................... 3 -- --
Premium taxes, licenses & fees................................................. 56 34 29
Professional services.......................................................... 16 13 --
Rent........................................................................... 25 25 --
Other.......................................................................... 242 220 86
------- ------- -----
Total other expenses......................................................... $ 1,582 $ 1,024 $ 613
======= ======= =====
99
METLIFE INVESTORS USA INSURANCE COMPANY
(A Wholly-Owned Subsidiary of MetLife Insurance Company of Connecticut)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
CAPITALIZATION AND AMORTIZATION OF DAC
See Note 5 for a rollforward of DAC including impacts of capitalization and
amortization.
INTEREST EXPENSE ON DEBT AND DEBT ISSUANCE COSTS
Interest expense on debt and debt issuance costs includes interest expense on
debt (see Note 8).
AFFILIATED EXPENSES
Commissions, capitalization of DAC and amortization of DAC include the impact
of affiliated reinsurance transactions.
See Notes 7 and 13 for discussion of affiliated expenses included in the
table above.
13. RELATED PARTY TRANSACTIONS
SERVICE AGREEMENTS
The Company has entered into various agreements with affiliates for services
necessary to conduct its activities. Typical services provided under these
agreements include management, policy administrative functions, personnel,
investment advice and distribution services. For certain 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. The aforementioned expenses and fees
incurred with affiliates were comprised of the following:
[Enlarge/Download Table]
YEARS ENDED DECEMBER 31,
----------------------------
2011 2010 2009
------- ------- ------
(IN MILLIONS)
Compensation............................................. $ 233 $ 220 $ 86
Commissions.............................................. 951 507 400
Volume-related costs..................................... 177 134 249
Professional services.................................... 16 13 --
Rent..................................................... 24 25 --
Other.................................................... 245 224 80
------- ------- -----
Total other expenses................................... $ 1,646 $ 1,123 $ 815
======= ======= =====
Revenues received from affiliates related to these agreements were recorded
as follows:
[Download Table]
YEARS ENDED DECEMBER 31,
----------------------------
2011 2010 2009
------ ------ ------
(IN MILLIONS)
Universal life and investment-type product policy fees. $ 115 $ 83 $ 59
Other revenues......................................... $ 97 $ 63 $ 39
The Company had net receivables from affiliates of $149 million and $104
million at December 31, 2011 and 2010, respectively, related to the items
discussed above. These amounts exclude affiliated reinsurance balances
discussed in Note 7. See Notes 2 and 7 for additional related party
transactions.
14. SUBSEQUENT EVENT
The Company evaluated the recognition and disclosure of subsequent events for
its December 31, 2011 consolidated financial statements.
100
PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
a. Financial Statements
The following financial statements comprising each of the Sub-Accounts of the
Separate Account are included in Part B hereof:
1. Report of Independent Registered Public Accounting Firm.
2. Statements of Assets and Liabilities as of December 31, 2011.
3. Statements of Operations for the year ended December 31, 2011.
4. Statements of Changes in Net Assets for the years ended December 31, 2011
and 2010.
5. Notes to the Financial Statements.
The following consolidated financial statements of the Company are included in
Part B hereof:
1. Independent Auditors' Report.
2. Consolidated Balance Sheets as of December 31, 2011 and 2010.
3. Consolidated Statements of Operations for the years ended December 31, 2011,
2010 and 2009.
4. Consolidated Statements of Stockholder's Equity for the years ended December
31, 2011, 2010 and 2009.
5. Consolidated Statements of Cash Flows for the years ended December 31, 2011,
2010 and 2009.
6. Notes to the Consolidated Financial Statements.
b. Exhibits
1. Certification of Restated Resolution of Board of Directors of
the Company authorizing the establishment of the Separate
Account (adopted May 18, 2004)(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)
4. (i) Draft Form of Individual Single Premium Deferred Variable
Annuity Contract (10)
(ii) Draft 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) (a) Reinsurance Agreement between MetLife Investors USA Insurance
Company and Exeter Reassurance Company, Ltd. (effective
April 1, 2010) (MGGI) (filed herewith)
(b) Amendment No. 1 Effective October 1, 2010 between MetLife
Investors USA Insurance Company (hereinafter referred to as "the
Ceding Company") and Exeter Reassurance Company, Ltd.
(hereinafter referred to as "the Reinsurer") (MGGI) (filed
herewith)
7. (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)
7. (iii) Automatic Reinsurance Agreement between MetLife Investors USA
Insurance Company and Exeter Reassurance Company, Ltd.
(effective January 1, 2012) (13)
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 and Consent of Counsel (10)
10. Consent of Independent Registered Public Accounting Firm
(Deloitte & Touche LLP) (filed herewith)
11. Not Applicable.
12. Not Applicable.
13. Powers of Attorney for Michael K. Farrell, Jay S. Kaduson,
Susan A. Buffum, Elizabeth M. Forget, George Foulke,
Bennett D. Kleinberg, Paul A. Sylvester, James J. Reilly and
Jeffrey A. Tupper. (11)
(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.
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:
[Download Table]
Name and Principal Business Address Positions and Offices with Depositor
----------------------------------- -------------------------------------------
Michael K. Farrell Chairman of the Board, President,
10 Park Avenue Chief Executive Officer
Morristown, NJ 07962
Susan A. Buffum Director
10 Park Avenue
Morristown, NJ 07962
James J. Reilly Vice President-Finance (principal financial
501 Boylston Street officer and principal accounting officer)
Boston, MA 02116
Jay S. Kaduson Director and Vice President
10 Park Avenue
Morristown, NY 07962
Bennett D. Kleinberg Director and Vice President
1300 Hall Boulevard
Bloomfield, CT 06002-2910
Elizabeth M. Forget Director and Executive Vice President
1095 Avenue of the Americas
New York, NY 10036
George Foulke Director
300 Davidson Avenue
Somerset, NJ 08873
Paul A. Sylvester Director
10 Park Avenue
Morristown, NJ 07962
Jeffrey A. Tupper Director and Assistant Vice President
5 Park Plaza
Suite 1900
Irvine, CA 92614
Isaac Torres Secretary
1095 Avenue of the Americas
New York, NY 10036
Debora L. Buffington Vice President, Director of Compliance
5 Park Plaza
Suite 1900
Irvine, CA 92614
Thomas G. Hogan, Jr. Vice President
400 Atrium Drive
Somerset, NJ 08873
Enid M. Reichert Vice President, Appointed Actuary
501 Route 22
Bridgewater, NJ 08807
Jonathan L. Rosenthal Vice President, Chief Hedging Officer
10 Park Avenue
Morristown, NJ 07962
Christopher A. Kremer Vice President
501 Boylston Street
Boston, MA 02116
Marian J. Zeldin Vice President
501 Route 22
Bridgewater, NJ 08807
Karen A. Johnson Vice President
501 Boylston Street
Boston, MA 02116
Roberto Baron Vice President
1095 Avenue of the Americas
New York, NY 10036
[Download Table]
Gregory E. Illson Vice President
501 Boylston Street
Boston, MA 02116
Lisa S. Kuklinski Vice President
1095 Avenue of the Americas
New York, NY 10036
Jeffrey P. Halperin Vice President
334 Madison Avenue
P O Box 1949
Morristown, MJ 07960
Marlene B. Debel Treasurer
1095 Avenue of the Americas
New York, NY 10036
Mark S. Reilly Vice President
1300 Hall Boulevard
Bloomfield, CT 06002-2910
Gene L. Lunman Vice President
1300 Hall Boulevard
Bloomfield, CT 06002-2910
Robert L. Staffier Vice President
501 Boylston Street
Boston, MA 02116
Scott E. Andrews Vice President
4700 Westown Pkwy., Suite 200
West Des Moines, IA 50266
Rashid Ismail Vice President
5 Park Plaza, Suite 1900
Irvine, CA 92614
Manish P. Bhatt Vice President
501 Route 22
Bridgewater, NJ 08807
Michael F. Rogalski Vice President
501 Route 22
Bridgewater, NJ 08807
William D. Cammarata Vice President
18210 Crane Nest Drive
Tampa, FL 33647
Henry W. Blaylock Vice President
1095 Avenue of the Americas
New York, NY 10036
Cynthia Mallet Vice President
One Financial Center, 20th Floor
Boston, MA 02111
Sabrina K. Model Vice President
501 Route 22
Bridgewater, MJ 08807
John J. Iwanicki Vice President
18210 Crane Nest Drive
Tampa, FL 33647
Nan Tecotzky Vice President
200 Park Avenue, 12th Floor
New York, NY 10166
Andrew Kaniuk Vice President
501 Route 22
Bridgewater, NJ 08807
[Download Table]
ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR
REGISTRANT
The Registrant is a separate account of MetLife Investors USA Insurance
Company under Delaware insurance law. MetLife Investors USA Insurance Company
is a wholly-owned direct subsidiary of MetLife Insurance Company of Connecticut
which in turn is a direct subsidiary of MetLife, Inc., a publicly traded
company. The following outline indicates those entities that are controlled by
MetLife, Inc. or are under the common control of MetLife, Inc. No person is
controlled by the Registrant.
ORGANIZATIONAL STRUCTURE OF METLIFE, INC. AND SUBSIDIARIES
AS OF DECEMBER 31, 2011
The following is a list of subsidiaries of MetLife, Inc. updated as of
December 31, 2011. Those entities which are listed at the left margin
(labeled with capital letters) are direct subsidiaries of MetLife, Inc.
Unless otherwise indicated, each entity which is indented under another entity
is a subsidiary of that other entity and, therefore, an indirect subsidiary
of MetLife, Inc. Certain inactive subsidiaries have been omitted from
the MetLife, Inc. organizational listing. The voting securities (excluding
directors' qualifying shares, if any) of the subsidiaries listed are 100%
owned by their respective parent corporations, unless otherwise indicated. The
jurisdiction of domicile of each subsidiary listed is set forth in the
parenthetical following such subsidiary.
A. MetLife Group, Inc. (NY)
B. MetLife Bank, National Association (USA)
1. Federal Flood Certification Corp. (TX)
2. MetLife Home Loans LLC (DE)
C. Exeter Reassurance Company, Ltd. (Cayman Islands)
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 .01% general
partnership is held by 1320 GP LLC
e) 1320 GP LLC (DE)
E. MetLife Chile Inversiones Limitada (Chile)- 91.15% is owned by MetLife,
Inc., 8.84% is owned by Inversiones MetLife Holdco Dos Limitada and
0.01% is owned by Natiloportem Holdings, Inc.
1. MetLife Chile Seguros de Vida S.A. (Chile)- 68.6071% is held by
MetLife Chile Inversiones Limitada, 31.3898% is held by Inversiones
Interamericana S.A. and .0031% by International Technical & Advisory
Services.
a) MetLife Chile Administradora de Mutuos Hipotecarios S.A.
(Chile)- 99.99% is owned by MetLife Chile Seguros de Vida
S.A. and 0.01% is owned by MetLife Chile Inversiones
Limitada.
F. Metropolitan Life Seguros de Vida S.A. (Uruguay) - 99.9994% is owned by
MetLife, Inc. and 0.0006% is owned by Oscar Schmidt.
G. MetLife Securities, Inc. (DE)
H. Enterprise General Insurance Agency, Inc. (DE)
1
I. Metropolitan Property and Casualty Insurance Company (RI)
1. Metropolitan General Insurance Company (RI)
2. Metropolitan Casualty Insurance Company (RI)
3. Metropolitan Direct Property and Casualty Insurance Company (RI)
4. Met P&C Managing General Agency, Inc. (TX)
5. MetLife Auto & Home Insurance Agency, Inc. (RI)
6. Metropolitan Group Property and Casualty Insurance Company (RI)
a) Metropolitan Reinsurance Company (U.K.) Limited (United
Kingdom)
7. Metropolitan Lloyds, Inc. (TX)
a) Metropolitan Lloyds Insurance Company of Texas (TX)-
Metropolitan Lloyds Insurance Company of Texas, an affiliated
association, provides automobile, homeowner and related
insurance for the Texas market. It is an association of
individuals designated as underwriters. Metropolitan Lloyds,
Inc., a subsidiary of Metropolitan Property and Casualty
Insurance Company, serves as the attorney-in-fact and manages
the association.
8. Economy Fire & Casualty Company (IL)
a) Economy Preferred Insurance Company (IL)
b) Economy Premier Assurance Company (IL)
J. MetLife Investors Insurance Company (MO)
K. First MetLife Investors Insurance Company (NY)
L. Walnut Street Securities, Inc. (MO)
M. Newbury Insurance Company, Limited (Bermuda)
N. MetLife Investors Group, Inc. (DE)
1. MetLife Investors Distribution Company (MO)
2. MetLife Advisers, LLC (MA)
2
O. MetLife International Holdings, Inc. (DE)
1. MetLife Mexico Cares, S.A. de C.V. (Mexico)
a) Fundacion MetLife Mexico, A.C. (Mexico)
2. Natiloportem Holdings, Inc. (DE)
a) Servicios Administrativos Gen, S.A. de C.V. (Mexico)
i) MLA Comercial, S.A. de C.V. (Mexico) 99% is owned by
Servicios Administrativos Gen, S.A. de C.V. and 1% is
owned by MetLife Mexico Cares, S.A. de C.V.
ii) MLA Servicios, S.A. de C.V. (Mexico) 99% is owned by
Servicios Administrativos Gen, S.A. de C.V. and 1% is
owned by MetLife Mexico Cares, S.A. de C.V.
3. MetLife India Insurance Company Limited (India)- 26% is
owned by MetLife International Holdings, Inc. and 74% is owned by
third parties.
4. Metropolitan Life Insurance Company of Hong Kong Limited (Hong
Kong)- 99.99935% is owned by MetLife International Holdings, Inc.
and 0.00065% is owned by Natiloporterm Holdings, Inc.
5. MetLife Seguros de Vida S.A. (Argentina)- 96.7372% is
owned by MetLife International Holdings, Inc. and 3.2628% is owned
by Natiloportem Holdings, Inc.
6. Metropolitan Life Seguros e Previdencia Privada S.A. (Brazil)-
66.6617540% is owned by MetLife International Holdings, Inc.,
33.3382457% is owned by MetLife Worldwide Holdings, Inc. and
0.0000003% is owned by Natiloportem Holdings, Inc.
7. MetLife Global, Inc. (DE)
8. MetLife Administradora de Fundos Multipatrocinados Ltda. (Brazil) -
99.999998% of MetLife Administradora de Fundos Multipatrocinados
Ltda. is owned by MetLife International Holdings, Inc. and .000002%
by Natiloportem Holdings, Inc.
9. MetLife Insurance Limited (United Kingdom)
10. MetLife Limited (United Kingdom)
11. MetLife Insurance S.A./NV (Belgium) - 99.99999% of MetLife Insurance
S.A./NV is owned by MetLife International Holdings, Inc. and
0.00001% by Natiloportem Holdings, Inc.
12. MetLife Services Limited (United Kingdom)
13. MetLife Europe R Limited (Ireland)
14. MetLife Seguros de Retiro S.A. (Argentina) - 96.8488% is owned by
MetLife International Holdings, Inc. and 3.1512% is owned by
Natiloportem Holdings, Inc.
15. Best Market S.A. (Argentina) - 5% of the shares are held by
Natiloportem Holdings, Inc. and 95% is owned by MetLife
International Holdings Inc.
16. Compania Previsional MetLife S.A. (Brazil) - 95.46% is owned by
MetLife International Holdings, Inc. and 4.54% is owned by
Natiloportem Holdings, Inc.
a) Met AFJP S.A. (Argentina) - 75.41% of the shares of Met
AFJP S.A. are held by Compania Previsional MetLife S.A.,
19.59% is owned by MetLife Seguros de Vida S.A., 3.97% is
held by Natiloportem Holdings, Inc. and 1.03% is held by
MetLife Seguros de Retiro S.A.
17. MetLife Worldwide Holdings, Inc. (DE)
a) MetLife Direct Co., LTD. (Japan)
b) MetLife Limited (Hong Kong)
18. MetLife NC Limited (Ireland)
19. MetLife Europe Services Limited (Ireland)
20. MetLife International Limited, LLC (DE)
21. MetLife Planos Odontologicos Ltda. (Brazil) - 99.999% is owned by
MetLife International Holdings, Inc. and .001% is owned by
Natiloportem Holdings, Inc.
22. MetLife Ireland Holdings One Limited (Ireland)
a) MetLife Global Holdings Corporation S.A. de C.V. (Mexico) -
98.9% is owned by MetLife Ireland Holdings One Limited and
1.1% is owned by MetLife International Limited, LLC.
i) MetLife Ireland Treasury Limited (Ireland)
a) MetLife General Insurance Limited (Australia)
b) MetLife Insurance Limited (Australia)
1) MetLife Services (Singapore) PTE Limited
(Singapore)
2) The Direct Call Centre PTY Limited
(Australia)
3) MetLife Investments PTY Limited (Australia)
aa) MetLife Insurance and Investment Trust
(Australia) - MetLife Insurance and
Investment Trust is a trust vehicle,
the trustee of which is MetLife
Investments PTY Limited ("MIPL"). MIPL
is a wholly owned subsidiary of
MetLife Insurance Limited.
ii) Metropolitan Global Management, LLC (DE) - 99.7% is
owned by MetLife Global Holdings Corporation, S.A. de
C.V. and 0.3% is owned by MetLife International
Holdings, Inc.
a) MetLife Pensiones Mexico S.A. (Mexico)- 97.4738%
is owned by Metropolitan Global Management, LLC
and 2.5262% is owned by MetLife International
Holdings, Inc.
b) MetLife Mexico Servicios, S.A. de C.V. (Mexico) -
98% is owned by Metropolitan Global Management,
LLC and 2% is owned by MetLife International
Holdings, Inc.
c) MetLife Mexico S.A. (Mexico)- 98.70541% is owned
by Metropolitan Global Management, LLC and
1.29459% is owned by MetLife International
Holdings, Inc.
1) MetLife Afore, S.A. de C.V. (Mexico)- 99.99%
is owned by MetLife Mexico S.A. and 0.01% is
owned by MetLife Pensiones Mexico S.A.
aa) Met1 SIEFORE, S.A. de C.V. (Mexico)-
99.99% is owned by MetLife Afore,
S.A. de C.V. and 0.01% is owned by
MetLife Mexico S.A.
bb) Met2 SIEFORE, S.A. de C.V. (Mexico)-
99.99% is owned by MetLife Afore,
S.A. de C.V. and 0.01% is owned by
MetLife Mexico S.A.
cc) MetA SIEFORE Adicional, S.A. de C.V.
(Mexico)- 99.99% is owned by MetLife
Afore, S.A. de C.V. and 0.01% is
owned by MetLife Mexico S.A.
dd) Met3 SIEFORE Basica, S.A. de C.V.
(Mexico) - 99.99% is owned by MetLife
Afore, S.A. de C.V. and 0.01% is
owned by MetLife Mexico S.A.
ee) Met4 SIEFORE, S.A. de C.V. (Mexico) -
99.99% is owned by MetLife Afore,
S.A. de C.V. and 0.01% is owned by
MetLife Mexico S.A.
ff) Met5 SIEFORE, S.A. de C.V. (Mexico) -
99.99% is owned by MetLife Afore,
S.A. de C.V. and 0.01% is owned by
MetLife Mexico S.A.
2) ML Capacitacion Comercial S.A. de C.V.
(Mexico) - 99% is owned by MetLife Mexico
S.A. and 1% is owned by MetLife Mexico
Cares, S.A. de C.V.
d) MetLife Saengmyoung Insurance Co. Ltd. (also known
as MetLife Insurance Company of Korea Limited
(South Korea)- 14.64% is owned by MetLife Mexico,
S.A. and 85.36% is owned by Metropolitan Global
Management, LLC.
23. Inversiones Metlife Holdco Dos Limitada (Chile)- 99% is owned by
Metlife International Holdings, Inc. and 1% is owned by Natiloportem
Holdings, Inc.
24. MetLife Asia Pacific Limited (Hong Kong)
P. Metropolitan Life Insurance Company (NY)
1. 334 Madison Euro Investments, Inc. (DE)
2. St. James Fleet Investments Two Limited (Cayman Islands)
a) Park Twenty Three Investments Company (United Kingdom)
i) Convent Station Euro Investments Four Company (United
Kingdom)
a) One Madison Investments (Cayco) Limited (Cayman
Islands)- 99.99999% voting control of One Madison
Investments (Cayco) Limited is held by Convent
Station Euro Investments Four Company and 0.00001%
by St. James Fleet Investments Two Limited.
3. CRB Co., Inc. (MA)- AEW Real Estate Advisors, Inc. holds 49,000
preferred non-voting shares and AEW Advisors, Inc. holds 1,000
preferred non-voting shares of CRB, Co., Inc.
4. MLIC Asset Holdings II LLC (DE)
3
5. Thorngate, LLC (DE)
6. Alternative Fuel I, LLC (DE)
7. Transmountain Land & Livestock Company (MT)
8. MetPark Funding, Inc. (DE)
9. HPZ Assets LLC (DE)
10. Missouri Reinsurance (Barbados), Inc. (Barbados)
11. Metropolitan Tower Realty Company, Inc. (DE)
a) Midtown Heights, LLC (DE)
12. MetLife Real Estate Cayman Company (Cayman Islands)
13. MetCanada Investments Ltd. (Canada)
14. MetLife Private Equity Holdings, LLC (DE)
15. 23rd Street Investments, Inc. (DE)
a) MetLife Capital Credit L.P. (DE)- 1% General Partnership
interest is held by 23rd Street Investments, Inc. and 99%
Limited Partnership interest is held by Metropolitan Life
Insurance Company.
b) MetLife Capital Limited Partnership (DE)- 1% General
Partnership interest is held by 23rd Street Investments, Inc.
and 99% Limited Partnership interest is held by Metropolitan
Life Insurance Company.
16. Hyatt Legal Plans, Inc. (DE)
a) Hyatt Legal Plans of Florida, Inc. (FL)
17. MetLife Holdings, Inc. (DE)
a) MetLife Credit Corp. (DE)
b) MetLife Funding, Inc. (DE)
4
18. MetLife Investments Asia Limited (Hong Kong)
19. MetLife Investments Limited (United Kingdom)- 23rd Street
Investments, Inc. holds one share of MetLife Investments Limited.
20. MetLife Latin America Asesorias e Inversiones Limitada (Chile)- 23rd
Street Investments, Inc. holds 0.01% of MetLife Latin America
Asesorias e Inversiones Limitada.
21. New England Life Insurance Company (MA)
a) New England Securities Corporation (MA)
22. 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) - 1% is owned by Headland -
Pacific Palisades, LLC and 99% is owned by Metropolitan
Life Insurance Company.
28. WFP 1000 Holding Company GP, LLC (DE)
29. White Oak Royalty Company (OK)
30. 500 Grant Street GP LLC (DE)
31. 500 Grant Street Associates Limited Partnership (CT) - 99% of 500
Grant Street Associates Limited Partnership is held by Metropolitan
Life Insurance Company and 1% by 500 Grant Street GP LLC.
32. MetLife Canada/MetVie Canada (Canada)
33. MetLife Retirement Services LLC (NJ)
a) MetLife Investment Funds Services LLC (NJ)
i) MetLife Associates LLC (DE)
34. Euro CL Investments LLC (DE)
35. MEX DF Properties, LLC (DE)
36. MSV Irvine Property, LLC (DE) - 4% of MSV Irvine Property, LLC is
owned by Metropolitan Tower Realty Company, Inc. and 96% is owned
by Metropolitan Life Insurance Company
37. MetLife Properties Ventures, LLC (DE)
a) Citypoint Holdings II Limited (United Kingdom)
38. Housing Fund Manager, LLC (DE)
a) MTC Fund I, LLC (DE) 0.01% of MTC Fund I, LLC is held by
Housing Fund Manager, LLC. - Housing Fund Manager, LLC is the
managing member LLC and the remaining interests are held by a
third party member.
b) MTC Fund II, LLC (DE) - 0.01% of MTC Fund II, LLC is held by
Housing Fund Manager, LLC. - Housing Fund Manager, LLC is the
managing member LLC and the remaining interests are held by a
third party member.
c) MTC Fund III, LLC (DE) - 0.01% of MTC Fund III, LLC is held by
Housing Fund Manager, LLC. - Housing Fund Manager, LLC is the
managing member LLC and the remaining interests are held by a
third party member.
39. MLIC Asset Holdings, LLC (DE)
40. 85 Broad Street Mezzanine LLC (DE)
a) 85 Broad Street LLC (DE)
41. The Building at 575 Fifth Avenue Mezzanine LLC (DE)
a) The Building at 575 Fifth LLC (DE)
42. CML Columbia Park Fund I, LLC (DE)- 10% of membership interest is
held by MetLife Insurance Company of Connecticut and 90% membership
interest is held by Metropolitan Life Insurance Company.
43. Para-Met Plaza Associates (FL)- 75% of the General Partnership is
held by Metropolitan Life Insurance Company and 25% of the General
Partnership is held by Metropolitan Tower Realty Company, Inc.
44. MLIC CB Holdings LLC (DE)
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
Q. MetLife Capital Trust IV (DE)
R. MetLife Insurance Company of Connecticut (CT) - 86.72% is owned by
MetLife, Inc. and 13.28% by MetLife Investors Group, Inc.
1. MetLife Property Ventures Canada ULC (Canada)
2. Pilgrim Alternative Investments Opportunity Fund I, LLC (DE) - 67%
is owned by MetLife Insurance Company of Connecticut and 33% is
owned by third party.
3. Pilgrim Alternative Investments Opportunity Fund III Associates, LLC
(CT) - 67% is owned by MetLife Insurance Company of Connecticut and
33% is owned by third party.
4. Metropolitan Connecticut Properties Ventures, LLC (DE)
a) ML/VCC UT West Jordan, LLC (DE)
5. MetLife Canadian Property Ventures LLC (NY)
6. Euro TI Investments LLC (DE)
7. Greenwich Street Investments, L.L.C. (DE)
a) Greenwich Street Capital Offshore Fund, Ltd. (Virgin
Islands)
b) Greenwich Street Investments, L.P. (DE)
8. One Financial Place Corporation (DE) - 100% is owned in the
aggregate by MetLife Insurance Company of Connecticut.
9. Plaza LLC (CT)
a) Tower Square Securities, Inc. (CT)
10. TIC European Real Estate LP, LLC (DE)
11. MetLife European Holdings, LLC (DE)
a) MetLife Europe Limited (Ireland)
i) MetLife Pension Trustees Limited (United Kingdom)
b) MetLife Assurance Limited (United Kingdom)
12. Travelers International Investments Ltd. (Cayman Islands)
13. Euro TL Investments LLC (DE)
14. Corrigan TLP LLC (DE)
15. TLA Holdings LLC (DE)
a) The Prospect Company (DE)
i) Panther Valley, Inc. (NJ)
16. TRAL & Co. (CT) - TRAL & Co. is a general partnership. Its partners
are MetLife Insurance Company of Connecticut and Metropolitan Life
Insurance Company.
17. MetLife Investors USA Insurance Company (DE)
a) MetLife Renewables Holding, LLC (DE)
i) Greater Sandhill I, LLC (DE)
18. TLA Holdings II LLC (DE)
19. TLA Holdings III LLC (DE)
20. MetLife Greenstone Southeast Ventures, LLC (DE) - 95% of MetLife
Greenstone Southeast Ventures, LLC is owned by MetLife Insurance
Company of Connecticut and 5% is owned by Metropolitan Connecticut
Properties Ventures, LLC.
a) MLGP Lakeside, LLC (DE)
S. MetLife Reinsurance Company of South Carolina (SC)
T. MetLife Investment Advisors Company, LLC (DE)
U. MetLife Standby I, LLC (DE)
1. MetLife Exchange Trust I (DE)
V. 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.
W. 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)
X. MetLife Capital Trust X (DE)
Y. Cova Life Management Company (DE)
Z. MetLife Reinsurance Company of Charleston (SC)
AA. MetLife Reinsurance Company of Vermont (VT)
AB. Delaware American Life Insurance Company (DE)
1. GBN, LLC (DE)
AC. American Life Insurance Company (ALICO) (US)
1. ALICO Nagasaki Operation Yugen Kaisha (Japan)
2. Communication One Kabushiki Kaisha (Japan)
3. Financial Learning Kabushiki Kaisha (Japan)
4. Pharaonic American Life Insurance Company (Egypt) - 84.125% of
Pharaonic American Life Insurance Company is owned by ALICO and the
remaining interests are owned by third parties.
5. A.I.G. Limited (Nigeria)
6. ALICO Limited (Nigeria)
7. American Life Limited (Nigeria)
8. American Life Insurance Company (Pakistan) Ltd. (Pakistan) - 66.47%
of American Life Insurance Company (Pakistan) Ltd. is owned by ALICO
and the remaining interests are owned by third parties.
9. American Life Hayat Sigorta A.S. (Turkey)
a) Deniz Emeklilik ve Hayat A.S. (Turkey) - 99.86% of Deniz
Emeklilik ve Hayat A.S. is owned by American Life Hayat
Sigorta A.S., .0000000004% by ALICO and the remaining
interests are owned by third parties
10. ALICO (Bulgaria) Zhivotozastrahovatelno Druzestvo EAD (Bulgaria)
11. Amcico pojist'ovna a.s. (Czech Republic)
12. MetLife S.A. (France)
a) Hestis S.A.S. (France) - 66.06% of Hestis S.A.S. is owned by
ALICO and the remaining interests are owned by third parties.
b) MetLife Solutions S.A.S. (France)
13. ALICO Mutual Fund Management Company (Greece) - 90% of ALICO Mutual
Fund Management Company is owned by ALICO and the remaining
interests are owned by third parties.
14. AHICO First American Hungarian Insurance Company (Elso
Amerikai-Magyar Biztosito) Zrt (Hungary)
a) First Hungarian-American Insurance Agency Limited (Hungary)
15. ALICO Life International Limited (Ireland)
16. ALICO Italia S.p.A. (Italy)
a) Agenvita S.r.L. (Italy) - 95% of Agenvita S.r.L. is owned by
ALICO Italia S.p.A., the remaining 5% is owned by ALICO.
17. AMPLICO Life-First American Polish Life Insurance & Reinsurance
Company, S.A. (Poland) - 95.74% of AMPLICO Life-First American
Polish Life Insurance & Reinsurance Company, S.A. is owned by
ALICO and 4.26% by MetLife Worldwide Holdings, Inc.
a) Amplico Services Sp z.o.o. (Poland)
b) AMPLICO Towartzystwo Funduszky Inwestycyjnych, S.A. (Poland)
c) AMPLICO Powszechne Towartzystwo Emerytalne S.A. (Poland) - 50%
of AMPLICO Powszechne Towarzystwo Emerytalne S.A. is owned by
AMPLICO Life-First American Polish Life Insurance &
Reinsurance Company, S.A. and the remaining 50% is owned by
ALICO.
18. ALICO Asigurari Romania S.A. (Romania) - 99.99999726375% of ALICO
Asigurari Romania S.A. is owned by American Life Insurance Company
and the remaining .000001273625% is owned by International
Technical and Advisory Services Limited.
a) ALICO Societate de Administrare a unui Fond de Pensii
Administrat Privat S.A. (Romania) - 99.9748% of ALICO
Societate de Administrare a unui Fond de Pensii Administrat
Privat S.A. is owned by ALICO Asigurari Romania S.A. and
.0252% is owned by AMPLICO Services Sp z.o.o.
b) ALICO Training and Consulting S.R.L. (Romania)
19. International Investment Holding Company Limited (Russia)
20. ALICO European Holdings Limited (Ireland)
a) ZAO Master D (Russia)
i) ZAO ALICO Insurance Company (Russia) - 51% of ZAO ALICO
Insurance Company is owned by ZAO Master D and 49% is
owned by ALICO.
21. MetLife Akcionarska Drustvoza za Zivotno Osiguranje (Serbia)
- 99.96% of MetLife Akcionarska Drustvoza za Zivotno Osiguranje is
owned by American Life Insurance Company and the remaining .04% is
owned by International Technical and Advisory Services Limited.
22. AMSLICO poist'ovna ALICO a.s. (Slovakia)
a) ALICO Services Central Europe s.r.o. (Slovakia)
b) ALICO Funds Central Europe sprav.spol., a.s. (Slovakia)
23. ALICO Gestora de Fondos y Planos de Pensiones S.A. (Spain)
24. ALICO Management Services Limited (United Kingdom)
25. ZEUS Administration Services Limited (United Kingdom)
26. ALICO Trustees (UK) Ltd. (United Kingdom) - 50% of ALICO Trustees
(UK) Ltd. is owned by ALICO and the remaining interests are owned by
International Technical and Advisory Services Limited.
27. PJSC ALICO Ukraine (Ukraine) - 99.9990% of PJSC ALICO Ukraine is
owned by American Life Insurance Company, .0005% is owned by
International Technical and Advisory Services Limited and the
remaining .0005% is owned by Borderland Investment Limited.
28. Borderland Investments Limited (USA-Delaware)
a) ALICO Hellas Single Member Limited Liability Company (Greece)
29. International Technical and Advisory Services Limited (USA-Delaware)
30. International Services Incorporated (USA-Delaware)
31. ALICO Operations Inc. (USA-Delaware)
a) ALICO Asset Management Corp. (Japan)
32. ALICO Compania de Seguros de Retiro, S.A. (Argentina) - 90% of ALICO
Compania de Seguros de Retiro, S.A. is owned by ALICO and 10% by
International Technical & Advisory Services.
33. ALICO Compania de Seguros, S.A. (Argentina) - 90% of ALICO Compania
de Seguros, S.A. is owned by ALICO and 10% by International
Technical & Advisory Services.
34. MetLife Colombia Seguros de Vida S.A. (Colombia) - 94.989811% of
MetLife Colombia Seguros de Vida S.A. is owned by ALICO, 5.0100030%
is owned by International Technical and Advisory Services Limited
and the remaining interests are owned by third parties.
35. Inversiones Interamericana S.A. (Chile) 99.9850% of Inversiones
Interamericana S.A. is owned by ALICO and .0150% by International
Technical & Advisory Services.
a) ALICO Costa Rica S.A. (Costa Rica) - 99% of ALICO Costa Rica
S.A. is owned by Inversiones Interamericana S.A. and 1% by La
Interamericana Compania de Seguros de Vida S.A.
b) Legal Chile S.A. (Chile) - 51% of Legal Chile S.A. is owned by
Inversiones Interamericana S.A. and the remaining interests by
a third party.
i) Legagroup S.A. (Chile) - 99% is owned by Legal Chile and
1% is owned by a third party.
36. ALICO Mexico Compania de Seguros, S.A. de C.V. (Mexico) - 99.999998%
of ALICO Mexico Compania de Seguros de Vida, SA de CV is owned by
American Life Insurance Company and .000002% is owned by
International Technical and Advisory Services Limited.
37. ALICO Services, Inc. (Panama)
38. American Life and General Insurance Company (Trinidad & Tobago) Ltd.
(Trinidad and Tobago) - 80.92373% of American Life and General
Insurance Company (Trinidad & Tobago) Ltd. is owned by ALICO and the
remaining interests are owned by a third party.
a) ALGICO Properties, Ltd. (Trinidad & Tobago) - 99.99994% of
ALGICO Properties, Ltd. is owned by American Life and General
Insurance Company (Trinidad & Tobago), .00003% is owned by
American Life Insurance Company and the remaining .00003% is
owned by third parties.
b) Eleven Dee, LTD. (Trinidad & Tobago)
39. MetLife Seguros de Vida, S.A. (Uruguay)
40. ALICO Properties, Inc. (USA-Delaware) - 51% of ALICO Properties,
Inc. is owned by ALICO and the remaining interests are owned by
third parties.
41. Global Properties, Inc. (USA-Delaware)
42. Alpha Properties, Inc. (USA-Delaware)
43. Beta Properties, Inc. (USA-Delaware)
44. Delta Properties Japan, Inc. (USA-Delaware)
45. Epsilon Properties Japan, Inc. (USA)
46. Iris Properties, Inc. (USA-Delaware)
47. Kappa Properties Japan, Inc. (USA-Delaware)
48. MetLife Global Holding Company I GmbH (Swiss I) (Switzerland)
a) MetLife Global Holding Company II GmbH (Swiss II)
(Switzerland)
i) MetLife EU Holding Company Limited (Ireland)
49. MetLife ALICO Preparatory Company KK (Japan)
1) The voting securities (excluding directors' qualifying shares, if any) of
each subsidiary shown on the organizational chart are 100% owned by their
respective parent corporation, unless otherwise indicated.
2) The Metropolitan Money Market Pool and MetLife Intermediate Income Pool are
pass-through investment pools, of which Metropolitan Life Insurance Company
and/or its subsidiaries and/or affiliates are general partners.
3) The MetLife, Inc. organizational chart does not include real estate joint
ventures and partnerships of which MetLife, Inc. and/or its subsidiaries is an
investment partner. In addition, certain inactive subsidiaries have also been
omitted.
4) MetLife Services EEIG is a cost-sharing mechanism used in the EU for EU
affiliated members.
6
ITEM 27. NUMBER OF CONTRACT OWNERS
As of January 31, 2012, there were 384,474 owners of qualified contracts and
174,867 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 I
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
(b) MetLife Investors Distribution Company is the principal underwriter
for the Contracts. The following persons are the officers and
directors of MetLife Investors Distribution Company. The principal
business address for MetLife Investors Distribution Company is 5 Park
Plaza, Suite 1900, Irvine, CA 92614.
[Enlarge/Download Table]
NAME AND PRINCIPAL BUSINESS ADDRESS POSITIONS AND OFFICES WITH UNDERWRITER
----------------------------------- -----------------------------------------------------
Michael K. Farrell Director
10 Park Avenue
Morristown, NJ 07962
Craig W. Markham Director and Vice President
13045 Tesson Ferry Road
St. Louis, MO 63128
William J. Toppeta Director
1095 Avenue of the Americas
New York, NY 10036
Paul A. Sylvester President, National Sales
10 Park Avenue Manager-Annuities & LTC
Morristown, NJ 07962
Elizabeth M. Forget Executive Vice President
1095 Avenue of the Americas
New York, NY 10036
Paul A. LaPiana Executive Vice President,
5 Park Plaza, Suite 1900 National Sales Manager-Life
Irvine, CA 92614
Andrew G. Aiello Senior Vice President, Channel
5 Park Plaza, Suite 1900 Head-National Accounts
Irvine, CA 92614
Jeffrey A. Barker Senior Vice President, Channel
18210 Crane Nest Drive Head-Independent Accounts
Tampa, FL 33647
Curtis Wohlers Senior Vice President, National Sales
1300 Hall Boulevard Manager, Independent Planners and Insurance
Bloomfield, CT 06002 Advisors
Jay S. Kaduson Senior Vice President
10 Park Avenue
Morristown, NJ 07962
Isaac Torres Secretary
1095 Avenue of the Americas
New York, NY 10036
Marlene B. Debel Treasurer
1095 Avenue of the Americas
New York, NY 10036
John G. Martinez Vice President, Chief Financial Officer
18210 Crane Nest Dr.
Tampa, FL 33647
Debora L. Buffington Vice President, Director of Compliance
5 Park Plaza, Suite 1900
Irvine, CA 92614
[Download Table]
David DeCarlo Vice President
5 Park Plaza, Suite 1900
Irvine, CA 92614
Rashid Ismail Vice President
5 Park Plaza, Suite 1900
Irvine, CA 92614
Paul M. Kos Vice President
5 Park Plaza, Suite 1900
Irvine, CA 92614
Cathy A. Sturdivant Vice President
5 Park Plaza, Suite 1900
Irvine, CA 92614
Paulina Vakouros Vice President
200 Park Avenue, 40th Floor
New York, NY 10166
(c) Compensation from the Registrant. The following commissions and other
compensation were received by the Distributor, directly or indirectly,
from the Registrant during the Registrant's last fiscal year:
[Enlarge/Download Table]
(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 $1,101,222,893 $0 $0 $0
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
The following companies will maintain possession of the documents required
by Section 31(a) of the Investment Company Act of 1940 and the Rules thereunder:
(a) Registrant
(b) MetLife Annuity Operations, 27000 Westown Parkway, Bldg. 4, Suite 200,
West Des Moines, IA 50266
(c) State Street Bank & Trust Company, 225 Franklin Street, Boston, MA 02110
(d) MetLife Investors Distribution Company, 5 Park Plaza, Suite 1900,
Irvine, CA 92614
(e) MetLife Investors Insurance Company, 5 Park Plaza, Suite 1900, Irvine,
CA 92614
(f) MetLife, 18210 Crane Nest Dr., Tampa, FL 33647
(g) MetLife, 501 Boylston Street, Boston, MA 02116
(h) MetLife, 200 Park Avenue, New York, NY 10166
(i) MetLife, 1125 17th Street, Denver, CO 80202
(j) 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 certifies that it meets the requirements of Securities Act
Rule 485(b) for effectiveness of this Registration Statement and has caused
this Registration Statement to be signed on its behalf in the City of Boston
and Commonwealth of Massachusetts on this 13th day of April 2012.
METLIFE INVESTORS USA SEPARATE ACCOUNT A
(Registrant)
By: METLIFE INVESTORS USA INSURANCE COMPANY
/S/ Gregory E. Illson
----------------------------------------
By: Gregory E. Illson
Vice President
METLIFE INVESTORS USA INSURANCE COMPANY
(Depositor)
/S/ Gregory E. Illson
----------------------------------------
By: Gregory E. Illson
Vice President
As required by the Securities Act of 1933, this Registration Statement has been
signed by the following persons in the capacities indicated on April 13, 2012.
/s/ Michael K. Farrell* Chairman of the Board, President and
------------------------------- Chief Executive Officer
Michael K. Farrell
/s/ James J. Reilly* Vice President-Finance (principal
-------------------------------- financial officer and principal
James J. Reilly accounting officer)
/s/ Susan A. Buffum* Director
-------------------------------
Susan A. Buffum
/s/ Elizabeth M. Forget* Director and Executive Vice President
-------------------------------
Elizabeth M. Forget
/s/ George Foulke* Director
-------------------------------
George Foulke
/s/ Jay S. Kaduson* Director and Vice President
-------------------------------
Jay S. Kaduson
/s/ Bennett D. Kleinberg* Director and Vice President
-------------------------------
Bennett D. Kleinberg
/s/ Paul A. Sylvester* Director
-------------------------------
Paul A. Sylvester
/s/ Jeffrey A. Tupper* Director and Assistant Vice President
-------------------------------
Jeffrey A. Tupper
*By: /s/ Michele H. Abate
----------------------------------
Michele H. Abate, Attorney-In-Fact
April 13, 2012
*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. 2 to the Registration
Statement on Form N-4 (File Nos. 333-161443/811-03365) filed as Exhibit 13 on
April 21, 2011.
INDEX TO EXHIBITS
7(i)(a) Reinsurance Agreement between MetLife Investors USA Insurance Company
and Exeter Reassurance Company, Ltd.
7(i)(b) Amendment No. 1 Effective October 1, 2010 between MetLife Investors USA
Insurance Company (hereinafter referred to as "the Ceding Company") and
Exeter Reassurance Company, Ltd. (hereinafter referred to as "the
Reinsurer") (MGGI)
10 Consent of Independent Registered Public Accounting Firm (Deloitte &
Touche LLP)
Dates Referenced Herein and Documents Incorporated by Reference
| Referenced-On Page |
|---|
| This ‘485BPOS’ Filing | | Date | | First | | Last | | | Other Filings |
|---|
| |  |
| | 12/16/21 | | 256 |
| | 1/1/13 | | 234 |
| Effective on: | | 4/30/12 | | 1 | | 48 | | | 485BPOS, 497 |
| Filed on: | | 4/13/12 | | 1 | | 324 | | | 485BPOS, N-4/A |
| | 4/11/12 | | 307 | | | | | 485BPOS, N-4/A |
| | 4/5/12 | | 205 |
| | 3/29/12 | | 56 |
| | 1/31/12 | | 317 |
| | 1/1/12 | | 307 |
| | 12/31/11 | | 10 | | 311 | | | 24F-2NT, N-30D, NSAR-U |
| | 12/15/11 | | 166 | | 235 | | | 497J, N-4 |
| | 12/1/11 | | 306 |
| | 9/2/11 | | 307 | | | | | N-4, N-4/A |
| | 9/1/11 | | 300 |
| | 7/5/11 | | 299 | | | | | 497J |
| | 7/1/11 | | 230 | | | | | 485BPOS |
| | 5/2/11 | | 89 | | 185 |
| | 4/29/11 | | 306 | | | | | 497 |
| | 4/21/11 | | 307 | | 324 | | | 485BPOS |
| | 1/1/11 | | 230 | | 306 |
| | 12/31/10 | | 119 | | 305 | | | 24F-2NT, N-30D, NSAR-U |
| | 12/23/10 | | 296 |
| | 10/1/10 | | 306 | | 325 |
| | 7/1/10 | | 231 |
| | 5/3/10 | | 119 | | 185 |
| | 4/1/10 | | 306 |
| | 3/15/10 | | 119 | | 185 |
| | 1/1/10 | | 166 | | 233 |
| | 12/31/09 | | 204 | | 305 | | | 24F-2NT, N-30D, NSAR-U |
| | 10/30/09 | | 307 | | | | | N-4/A |
| | 4/1/09 | | 50 | | 234 |
| | 1/1/09 | | 208 | | 290 |
| | 4/15/08 | | 307 | | | | | 485APOS, 485BPOS |
| | 10/31/07 | | 307 | | | | | 485BPOS, 497 |
| | 4/16/07 | | 307 | | | | | 485BPOS |
| | 10/11/06 | | 40 | | 50 |
| | 4/24/06 | | 307 | | | | | 485BPOS |
| | 9/15/05 | | 307 | | | | | N-4/A |
| | 7/15/04 | | 307 | | | | | 485BPOS |
| | 5/18/04 | | 305 |
| | 4/30/03 | | 307 | | | | | 485BPOS |
| | 12/31/02 | | 40 | | 50 | | | 24F-2NT, NSAR-U |
| | 1/1/02 | | 305 |
| | 1/26/01 | | 307 | | | | | N-4 |
| | 1/8/01 | | 40 | | 50 |
| | 1/1/01 | | 305 |
| List all Filings |
5 Subsequent Filings that Reference this Filing
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Filing Submission 0001193125-12-162433 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)
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