N-4 1 dn4.txt INITIAL REGISTRATION STATEMENT - MLI USA PRIMELITE IV As filed with the Securities and Exchange Commission on October 12, 2006 File Nos. 333- 811-03365 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM N-4 ---------- REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [x] Pre-Effective Amendment No. [ ] Post-Effective Amendment No. [ ] and REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 Amendment No. 235 [x] (Check Appropriate Box or Boxes) ---------- MetLife Investors USA Separate Account A (Exact Name of Registrant) MetLife Investors USA Insurance Company (Name of Depositor) 5 Park Plaza, Suite 1900 Irvine, California 92614 (Address of Depositor's Principal Executive Offices) (Zip Code) Depositor's Telephone Number, including Area Code (800) 989-3752 ---------- (Name and Address of Agent for Service) Richard C. Pearson Executive Vice President MetLife Investors USA Insurance Company 5 Park Plaza, Suite 1900 Irvine, CA 92614 (949) 223-5680 ---------- COPIES TO: W. Thomas Conner Sutherland Asbill & Brennan LLP 1275 Pennsylvania Avenue, N.W. Washington, DC 20004-2415 (202) 383-0590 APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING As soon as possible after the effective date of this registration statement. The Registrant hereby amends this registration statement on such dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine. ---------- TITLE OF SECURITIES BEING REGISTERED Interest in a separate account under individual flexible premium deferred variable annuity contracts. THE VARIABLE ANNUITY CONTRACT ISSUED BY METLIFE INVESTORS USA INSURANCE COMPANY AND METLIFE INVESTORS USA SEPARATE ACCOUNT A PRIMELITE IV DECEMBER 31, 2006 This prospectus describes the flexible premium deferred variable annuity contract offered by MetLife Investors USA Insurance Company (MetLife Investors USA or we or us). The contracts are offered for individuals and some tax qualified and non-tax qualified retirement plans. The annuity contract has 51 investment choices - a fixed account which offers an interest rate guaranteed by us, and 50 investment portfolios listed below. You can put your money in the fixed account and/or any of these investment portfolios. ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC. (CLASS B): AllianceBernstein Large Cap Growth Portfolio AMERICAN FUNDS INSURANCE SERIES (CLASS 2): American Funds Global Growth Fund American Funds Growth Fund American Funds Growth-Income Fund FIDELITY (Reg. TM) VARIABLE INSURANCE PRODUCTS (SERVICE CLASS 2): VIP Mid Cap Portfolio FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST (CLASS 2): Franklin Income Securities Fund Mutual Shares Securities Fund Templeton Growth Securities Fund LEGG MASON PARTNERS INVESTMENT SERIES: Legg Mason Partners Variable Dividend Strategy Portfolio Legg Mason Partners Variable Growth and Income Portfolio Legg Mason Partners Variable Premier Selections All Cap Growth Portfolio LEGG MASON PARTNERS VARIABLE PORTFOLIOS I, INC. (CLASS I): Legg Mason Partners Variable High Yield Bond Portfolio Legg Mason Partners Variable Small Cap Growth Portfolio LEGG MASON PARTNERS VARIABLE PORTFOLIOS II: Legg Mason Partners Variable Appreciation Portfolio Legg Mason Partners Variable Capital and Income Portfolio Legg Mason Partners Variable Fundamental Value Portfolio LEGG MASON PARTNERS VARIABLE PORTFOLIOS III, INC.: Legg Mason Partners Variable Adjustable Rate Income Portfolio Legg Mason Partners Variable Aggressive Growth Portfolio Legg Mason Partners Variable Large Cap Growth Portfolio Legg Mason Partners Variable Large Cap Value Portfolio Legg Mason Partners Variable Money Market Portfolio Legg Mason Partners Variable Social Awareness Stock Portfolio LEGG MASON PARTNERS VARIABLE PORTFOLIOS IV: Legg Mason Partners Variable Multiple Discipline Portfolio - All Cap Growth and Value Legg Mason Partners Variable Multiple Discipline Portfolio - Balanced All Cap Growth and Value Legg Mason Partners Variable Multiple Discipline Portfolio - Global All Cap Growth and Value Legg Mason Partners Variable Multiple Discipline Portfolio - Large Cap Growth and Value 1 MET INVESTORS SERIES TRUST (CLASS B OR CLASS A, AS NOTED): Met/AIM Capital Appreciation Portfolio (Class A) Met/AIM Small Cap Growth Portfolio MFS (Reg. TM) Research International Portfolio MFS (Reg. TM) Value Portfolio (Class A) Oppenheimer Capital Appreciation Portfolio Pioneer Fund Portfolio (Class A) Pioneer Strategic Income Portfolio (Class A) Met/Putnam Capital Opportunities Portfolio METROPOLITAN SERIES FUND, INC.: FI International Stock Portfolio (Class B) FI Large Cap Portfolio (Class A) FI Value Leaders Portfolio (Class D) MFS (Reg. TM) Total Return Portfolio (Class F) Oppenheimer Global Equity Portfolio (Class B) Western Asset Management U.S. Government Portfolio (Class B) PIONEER VARIABLE CONTRACTS TRUST (CLASS II): Pioneer Mid Cap Value VCT Portfolio PUTNAM VARIABLE TRUST (CLASS IB): Putnam VT Small Cap Value Fund THE UNIVERSAL INSTITUTIONAL FUNDS, INC.* (CLASS I OR II, AS NOTED) Equity and Income Portfolio (Class II) U.S. Real Estate Securities Portfolio (Class I) * Morgan Stanley Investment Management Inc., the investment adviser to The Universal Institutional Funds, Inc., does business in certain instances as Van Kampen. VAN KAMPEN LIFE INVESTMENT TRUST (CLASS II): Van Kampen LIT Comstock Portfolio Van Kampen LIT Strategic Growth Portfolio Van Kampen LIT Growth and Income Portfolio LEGG MASON PARTNERS VARIABLE LIFESTYLE SERIES, INC.: Legg Mason Partners Variable Lifestyle Balanced Portfolio Legg Mason Partners Variable Lifestyle Growth Portfolio Legg Mason Partners Variable Lifestyle High Growth 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 December 31, 2006. 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 51 of this prospectus. For a free copy of the SAI, call us at (888) 556-5412, visit our website at WWW.METLIFEINVESTORS.COM, or write to us at: 5 Park Plaza, Suite 1900, Irvine, CA 92614. The contracts: o are not bank deposits o are not FDIC insured o are not insured by any federal government agency o are not guaranteed by any bank or credit union o may be subject to loss of principal THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. December 31, 2006 2 TABLE OF CONTENTS PAGE PAGE INDEX OF SPECIAL TERMS ................................... 4 HIGHLIGHTS ............................................... 5 FEE TABLES AND EXAMPLES .................................. 6 1. THE ANNUITY CONTRACT .................................. 12 Market Timing ....................................... 12 2. PURCHASE .............................................. 13 Purchase Payments ................................... 13 Termination for Low Account Value ................... 13 Allocation of Purchase Payments ..................... 13 Free Look ........................................... 14 Accumulation Units .................................. 14 Account Value ....................................... 14 Replacement of Contracts ............................ 14 3. INVESTMENT OPTIONS .................................... 15 Transfers ........................................... 18 Dollar Cost Averaging Program ....................... 21 Automatic Rebalancing Program ....................... 21 Voting Rights ....................................... 22 Substitution of Investment Options .................. 22 4. EXPENSES .............................................. 22 Product Charges ..................................... 22 Account Fee ......................................... 23 Guaranteed Withdrawal Benefit - Rider Charge ........ 23 Withdrawal Charge ................................... 24 Reduction or Elimination of the Withdrawal Charge ............................................ 25 Premium and Other Taxes ............................. 25 Transfer Fee ........................................ 25 Income Taxes ........................................ 26 Investment Portfolio Expenses ....................... 26 5. ANNUITY PAYMENTS (THE INCOME PHASE) .................................. 26 Annuity Date ........................................ 26 Annuity Payments .................................... 26 Annuity Options ..................................... 27 6. ACCESS TO YOUR MONEY .................................. 28 Systematic Withdrawal Program ....................... 28 Suspension of Payments or Transfers ................. 29 7. LIVING BENEFITS ....................................... 29 Description of GWB III .............................. 30
DESCRIPTION OF THE LIFETIME WITHDRAWAL GUARANTEE ................................................ 33 8. PERFORMANCE ........................................... 37 9. DEATH BENEFIT ......................................... 37 Upon Your Death ..................................... 37 Standard Death Benefit - Principal Protection ....... 38 Optional Death Benefit - Annual Step-Up ............. 38 Additional Death Benefit - Earnings Preservation Benefit ........................................... 38 General Death Benefit Provisions .................... 39 Spousal Continuation ................................ 40 Death of the Annuitant .............................. 40 Controlled Payout ................................... 40 10. FEDERAL INCOME TAX STATUS ............................ 40 Taxation of Non-Qualified Contracts ................. 40 Taxation of Qualified Contracts ..................... 42 Foreign Tax Credits ................................. 45 Possible Tax Law Changes ............................ 45 11. OTHER INFORMATION .................................... 45 MetLife Investors USA ............................... 45 The Separate Account ................................ 45 Distributor ......................................... 46 Selling Firms ....................................... 46 Requests and Elections .............................. 48 Ownership ........................................... 48 Legal Proceedings ................................... 49 Financial Statements ................................ 49 TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION ................................... 49 APPENDIX A ............................................... A-1 Participating Investment Portfolios ................. A-1 APPENDIX B ............................................... B-1 Investment Portfolios: Marketing Names and Prospectus Names .................................. B-1 APPENDIX C ............................................... C-1 Guaranteed Withdrawal Benefit Examples .............. C-1
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. PAGE Account Value..............................................................14 Accumulation Phase.........................................................12 Accumulation Unit..........................................................14 Annual Benefit Payment.....................................................34 Annuitant..................................................................49 Annuity Date...............................................................26 Annuity Options............................................................27 Annuity Payments...........................................................26 Annuity Units..............................................................26 Beneficiary................................................................49 Business Day...............................................................13 Fixed Account..............................................................12 Guaranteed Principal Adjustment............................................35 Guaranteed Withdrawal Amount...............................................31 GWB Withdrawal Rate........................................................30 Income Phase...............................................................12 Investment Portfolios......................................................15 Joint Owners...............................................................49 Owner......................................................................48 Purchase Payment...........................................................13 Remaining Guaranteed Withdrawal Amount.....................................33 Separate Account...........................................................45 Total Guaranteed Withdrawal Amount.........................................33 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 at least one purchase payment to us and we agree to make a series of annuity payments at a later date. The contract has a maximum issue age and you should consult with your registered representative. The contract provides a means for investing on a tax-deferred basis in our fixed account and the investment portfolios. The contract is intended for retirement savings or other long-term investment purposes. When you purchase the contract, you can choose an additional death benefit and fixed and variable income options. The contract, like all deferred annuity contracts, has two phases: the accumulation phase and the income phase. During the accumulation phase, earnings accumulate on a tax-deferred basis and are taxed as income when you make a withdrawal. If you make a withdrawal during the accumulation phase, we may assess a withdrawal charge of up to 8%. The income phase occurs when you or a designated payee begin receiving regular annuity payments from your contract. You and the annuitant (the person on whose life we base annuity payments) do not have to be the same, unless you purchase a tax qualified contract. You can have annuity payments made on a variable basis, a fixed basis, or a combination of both. If you choose variable annuity payments, the amount of the variable annuity payments will depend upon the investment performance of the investment portfolio(s) you select for the income phase. If you choose fixed annuity payments, the amount of each payment will not change during the income phase. TAX DEFERRAL AND QUALIFIED PLANS. The contracts are offered for individuals and some tax qualified and non-tax qualified retirement plans. For any tax qualified account (e.g., an IRA or 403(b) plan), the tax deferred accrual feature is provided by the tax qualified retirement plan. Therefore, there should be reasons other than tax deferral for acquiring the contract within a qualified plan. (See "Federal Income Tax Status.") STATE VARIATIONS. Contracts issued in your state may provide different features and benefits from, and impose different costs than, those described in this prospectus. This prospectus provides a general description of the contracts. Your actual contract and any endorsements are the controlling documents. If you would like to review a copy of the contract and endorsements, contact our Annuity Service Center. FREE LOOK. You may cancel the contract within 10 days after receiving it (or whatever period is required in your state). Unless otherwise required by state law, you will receive whatever your contract is worth on the day that we receive your cancellation request and we will not deduct a withdrawal charge. The amount you receive may be more or less than your payment depending upon the performance of the investment portfolios. You bear the risk of any decline in account value. We do not refund any charges or deductions assessed during the free look period. We will return your payment if required by law. TAX PENALTY. The earnings in your contract are not taxed until you take money out of your contract. If you take money out of a non-qualified contract during the accumulation phase, for tax purposes any earnings are deemed to come out first. If you are younger than 591/2 when you take money out, you may be charged a 10% federal tax penalty on those earnings. Payments during the income phase are considered partly a return of your original investment until your investment is returned. NON-NATURAL PERSONS AS OWNERS. If the owner of a non-qualified annuity contract is not a natural person (e.g., a corporation, partnership or certain trusts), gains under the contract are generally not eligible for tax deferral. INQUIRIES. If you need more information, please contact our Annuity Service Center at: MetLife Investors Distribution Company P.O. Box 10426 Des Moines, Iowa 50306-0426 (888) 556-5412 ELECTRONIC DELIVERY. As an owner you may elect to receive electronic delivery of current prospectuses related to this contract, prospectuses and annual and semi-annual reports for the investment portfolios and other contract related documents. Contact us at WWW.METLIFEINVESTORS.COM for more information and to enroll. 5 FEE TABLES AND EXAMPLES THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY WHEN BUYING, OWNING, AND SURRENDERING THE CONTRACT. THE FIRST TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY AT THE TIME THAT YOU BUY THE CONTRACT, SURRENDER THE CONTRACT, OR TRANSFER ACCOUNT VALUE BETWEEN INVESTMENT OPTIONS. STATE PREMIUM TAXES MAY ALSO BE DEDUCTED. -------------------------------------------------------------------------------- OWNER TRANSACTION EXPENSES TABLE WITHDRAWAL CHARGE (Note 1) 8% (as a percentage of purchase payments) TRANSFER FEE (Note 2) $0 (First 12 per year) $25 (Thereafter)
-------------------------------------------------------------------------------- Note 1. If an amount withdrawn is determined to include the withdrawal of prior purchase payments, a withdrawal charge may be assessed. Withdrawal charges are calculated in accordance with the following. (See "Expenses - Withdrawal Charge.")
Number of Complete Years from Withdrawal Charge Receipt of Purchase Payment (% of Purchase Payment) ------------------------------- ------------------------ 0 8 1 8 2 7 3 7 4 6 5 5 6 4 7 3 8 and thereafter 0
Note 2. There is no charge for the first 12 transfers in a contract year; thereafter the fee is $25 per transfer. MetLife Investors USA is currently waiving the transfer fee, but reserves the right to charge the fee in the future. THE NEXT TABLE DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT, NOT INCLUDING INVESTMENT PORTFOLIO FEES AND EXPENSES. -------------------------------------------------------------------------------- PERIODIC FEES AND EXPENSES TABLE* ACCOUNT FEE (Note 1) $30
GUARANTEED WITHDRAWAL BENEFIT RIDER CHARGE Guaranteed Withdrawal 0.25% of the Benefit (GWB III) Guaranteed Withdrawal Amount (Note 2) Lifetime Withdrawal 0.50% of the Guarantee (Single Life Total Guaranteed version) Prior to Automatic Withdrawal Amount Annual Step-Up (Note 2) Lifetime Withdrawal 0.95% of the Guarantee (Single Life Total Guaranteed version) Upon Automatic Withdrawal Amount Annual Step-Up (maximum) (Note 2) Lifetime Withdrawal 0.70% of the Guarantee (Joint Life Total Guaranteed version) Prior to Automatic Withdrawal Amount Annual Step-Up (Note 2) Lifetime Withdrawal 1.40% of the Guarantee (Joint Life Total Guaranteed version) Upon Automatic Withdrawal Amount Annual Step-Up (maximum) (Note 2)
-------------------------------------------------------------------------------- Note 1. An Account Fee of $30 is charged on the last day of each contract year if account value is less than $50,000. Note 2. See "Living Benefits - Guaranteed Withdrawal Benefit" for a definition of the term Guaranteed Withdrawal Amount. *Certain fees and expenses may not apply during the income phase of the contract. (See "Expenses.") 6 SEPARATE ACCOUNT ANNUAL EXPENSES (referred to as Separate Account Product Charges) (as a percentage of average account value in the Separate Account) Mortality and Expense Charge (maximum) (Note 1) 1.20% Administration Charge 0.15% Total Separate Account Annual Expenses (maximum) (Note 1) 1.35% Death Benefit Rider Charge (Optional) (as a percentage of average account value in the Separate Account) Optional Death Benefit - Annual Step-Up 0.15 % Additional Death Benefit - Earnings Preservation Benefit 0.25 %
-------------------------------------------------------------------------------- Note 1. The Mortality and Expense Charge may be reduced in certain circumstances. You are required to estimate on the application the total purchase payments you intend to make in the first contract year. This estimate will determine the Mortality and Expense charge you pay during the first contract year. At the first contract anniversary, the Mortality and Expense charge may be increased if you do not reach your purchase payment estimate. Also, additional purchase payments in excess of your estimate and additional purchase payments after the first contract year will not lower your Mortality and Expense charge. Please see "Expenses - Product Charges - How to Reduce the Mortality and Expense Charge" for more information. ESTIMATED/TOTAL PURCHASE PAYMENTS IN MORTALITY AND FIRST CONTRACT YEAR EXPENSE CHARGE $0 - 99,999 1.20% $100,000 - 249,999 1.05% $250,000 - 499,999 0.95% $500,000 or more 0.80%
-------------------------------------------------------------------------------- THE NEXT TABLE SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE INVESTMENT PORTFOLIOS THAT YOU MAY PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CONTRACT. MORE DETAIL CONCERNING EACH INVESTMENT PORTFOLIO'S FEES AND EXPENSES IS CONTAINED IN THE PROSPECTUSES FOR THE INVESTMENT PORTFOLIOS AND IN THE FOLLOWING TABLES. Total Annual Portfolio Minimum Maximum ---- ---- Expenses (expenses that are 0.47% 1.47% deducted from investment portfolio assets, including management fees, 12b-1/service fees, and other expenses)
-------------------------------------------------------------------------------- FOR INFORMATION CONCERNING COMPENSATION PAID FOR THE SALE OF THE CONTRACTS, SEE "OTHER INFORMATION - DISTRIBUTOR." 7 INVESTMENT PORTFOLIO EXPENSES (as a percentage of the average daily net assets of an investment portfolio) The following table is a summary. For more complete information on investment portfolio fees and expenses, please refer to the prospectus for each investment portfolio.
TOTAL CONTRACTUAL NET TOTAL ANNUAL EXPENSE ANNUAL MANAGEMENT 12B-1/SERVICE OTHER PORTFOLIO SUBSIDY OR PORTFOLIO FEES FEES EXPENSES(1) EXPENSES DEFERRAL EXPENSES ------------ --------------- ------------- ----------- ------------- ---------- ALLIANCEBERNSTEIN VARIABLE PRODUCT SERIES FUND, INC. AllianceBernstein Large Cap Growth Portfolio 0.75% 0.25% 0.06% 1.06% 0.00% 1.06% AMERICAN FUNDS INSURANCE SERIES American Funds Global Growth Fund 0.58% 0.25% 0.04% 0.87% 0.00% 0.87% American Funds Growth Fund 0.33% 0.25% 0.02% 0.60% 0.00% 0.60% American Funds Growth-Income Fund 0.28% 0.25% 0.01% 0.54% 0.00% 0.54% FIDELITY (Reg. TM) VARIABLE INSURANCE PRODUCTS VIP Mid Cap Portfolio 0.57% 0.25% 0.12% 0.94% 0.00% 0.94% FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST Franklin Income Securities Fund 0.46% 0.25% 0.02% 0.73% 0.00% 0.73% Mutual Shares Securities Fund 0.60% 0.25% 0.18% 1.03% 0.00% 1.03% Templeton Growth Securities Fund 0.75% 0.25% 0.07% 1.07% 0.00% 1.07% LEGG MASON PARTNERS INVESTMENT SERIES Legg Mason Partners Variable Dividend 0.65% 0.00% 0.21% 0.86% 0.00% 0.86% Strategy Portfolio(2) Legg Mason Partners Variable Growth and 0.65% 0.00% 0.13% 0.78% 0.00% 0.78% Income Portfolio(2) Legg Mason Partners Variable Premier 0.75% 0.00% 0.19% 0.94% 0.00% 0.94% Selections All Cap Growth Portfolio(2) LEGG MASON PARTNERS VARIABLE PORTFOLIOS I, INC. Legg Mason Partners Variable High Yield 0.80% 0.00% 0.30% 1.10% 0.00% 1.10% Bond Portfolio Legg Mason Partners Variable Small Cap 0.75% 0.00% 0.22% 0.97% 0.00% 0.97% Growth Portfolio LEGG MASON PARTNERS VARIABLE PORTFOLIOS II Legg Mason Partners Variable Appreciation 0.70% 0.00% 0.02% 0.72% 0.00% 0.72% Portfolio Legg Mason Partners Variable Capital and 0.75% 0.00% 0.39% 1.14% 0.00% 1.14% Income Portfolio Legg Mason Partners Variable Fundamental 0.75% 0.00% 0.03% 0.78% 0.00% 0.78% Value Portfolio
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MANAGEMENT 12B-1/SERVICE FEES FEES ------------ --------------- LEGG MASON PARTNERS VARIABLE PORTFOLIOS III, INC. Legg Mason Partners Variable Adjustable Rate 0.55% 0.25% Income Portfolio(2)(3) Legg Mason Partners Variable Aggressive 0.75% 0.00% Growth Portfolio(2)(3) Legg Mason Partners Variable Large Cap 0.75% 0.00% Growth Portfolio(2)(3) Legg Mason Partners Variable Large Cap 0.60% 0.00% Value Portfolio(2) Legg Mason Partners Variable Money Market 0.45% 0.00% Portfolio(2)(3) Legg Mason Partners Variable Social 0.71% 0.00% Awareness Stock Portfolio(2)(3) LEGG MASON PARTNERS VARIABLE PORTFOLIOS IV Legg Mason Partners Variable Multiple 0.75% 0.25% Discipline Portfolio - All Cap Growth and Value Legg Mason Partners Variable Multiple 0.75% 0.25% Discipline Portfolio - Balanced All Cap Growth and Value Legg Mason Partners Variable Multiple 0.75% 0.25% Discipline Portfolio - Global All Cap Growth and Value Legg Mason Partners Variable Multiple 0.75% 0.25% Discipline Portfolio - Large Cap Growth and Value MET INVESTORS SERIES TRUST Met/AIM Capital Appreciation Portfolio(4) 0.76% 0.00% Met/AIM Small Cap Growth Portfolio(1) 0.90% 0.25% MFS (Reg. TM) Research International Portfolio(1) 0.74% 0.25% MFS (Reg. TM) Value Portfolio(4) 0.73% 0.00% Oppenheimer Capital Appreciation 0.59% 0.25% Portfolio(1) Pioneer Fund Portfolio(4) 0.75% 0.00% Pioneer Strategic Income Portfolio(4) 0.73% 0.00% Met/Putnam Capital Opportunities Portfolio 0.85% 0.25% METROPOLITAN SERIES FUND, INC. FI International Stock Portfolio 0.86% 0.25% FI Large Cap Portfolio(4)(5) 0.80% 0.00% FI Value Leaders Portfolio 0.66% 0.10% MFS (Reg. TM) Total Return Portfolio 0.57% 0.20% Oppenheimer Global Equity Portfolio 0.60% 0.25% Western Asset Management U.S. Government 0.54% 0.25% Portfolio PIONEER VARIABLE CONTRACTS TRUST Pioneer Mid Cap Value VCT Portfolio 0.65% 0.25% PUTNAM VARIABLE TRUST Putnam VT Small Cap Value Fund 0.76% 0.25% TOTAL CONTRACTUAL NET TOTAL ANNUAL EXPENSE ANNUAL OTHER PORTFOLIO SUBSIDY OR PORTFOLIO EXPENSES(1) EXPENSES DEFERRAL EXPENSES ------------- ----------- ------------- ---------- LEGG MASON PARTNERS VARIABLE PORTFOLIOS III, INC. Legg Mason Partners Variable Adjustable Rate 0.28% 1.08% 0.00% 1.08% Income Portfolio(2)(3) Legg Mason Partners Variable Aggressive 0.02% 0.77% 0.00% 0.77% Growth Portfolio(2)(3) Legg Mason Partners Variable Large Cap 0.04% 0.79% 0.00% 0.79% Growth Portfolio(2)(3) Legg Mason Partners Variable Large Cap 0.05% 0.65% 0.00% 0.65% Value Portfolio(2) Legg Mason Partners Variable Money Market 0.02% 0.47% 0.00% 0.47% Portfolio(2)(3) Legg Mason Partners Variable Social 0.04% 0.75% 0.00% 0.75% Awareness Stock Portfolio(2)(3) LEGG MASON PARTNERS VARIABLE PORTFOLIOS IV Legg Mason Partners Variable Multiple 0.06% 1.06% 0.00% 1.06% Discipline Portfolio - All Cap Growth and Value Legg Mason Partners Variable Multiple 0.06% 1.06% 0.00% 1.06% Discipline Portfolio - Balanced All Cap Growth and Value Legg Mason Partners Variable Multiple 0.15% 1.15% 0.00% 1.15% Discipline Portfolio - Global All Cap Growth and Value Legg Mason Partners Variable Multiple 0.24% 1.24% 0.00% 1.24% Discipline Portfolio - Large Cap Growth and Value MET INVESTORS SERIES TRUST Met/AIM Capital Appreciation Portfolio(4) 0.05% 0.81% 0.00% 0.81% Met/AIM Small Cap Growth Portfolio(1) 0.11% 1.26% 0.00% 1.26% MFS (Reg. TM) Research International Portfolio(1) 0.23% 1.22% 0.00% 1.22% MFS (Reg. TM) Value Portfolio(4) 0.24% 0.97% 0.00% 0.97% Oppenheimer Capital Appreciation 0.10% 0.94% 0.00% 0.94% Portfolio(1) Pioneer Fund Portfolio(4) 0.28% 1.03% 0.03% 1.00% Pioneer Strategic Income Portfolio(4) 0.09% 0.82% 0.00% 0.82% Met/Putnam Capital Opportunities Portfolio 0.37% 1.47% 0.00% 1.47% METROPOLITAN SERIES FUND, INC. FI International Stock Portfolio 0.20% 1.31% 0.00% 1.31% FI Large Cap Portfolio(4)(5) 0.05% 0.85% 0.00% 0.85% FI Value Leaders Portfolio 0.07% 0.83% 0.00% 0.83% MFS (Reg. TM) Total Return Portfolio 0.16% 0.93% 0.00% 0.93% Oppenheimer Global Equity Portfolio 0.33% 1.18% 0.00% 1.18% Western Asset Management U.S. Government 0.07% 0.86% 0.00% 0.86% Portfolio PIONEER VARIABLE CONTRACTS TRUST Pioneer Mid Cap Value VCT Portfolio 0.05% 0.95% 0.00% 0.95% PUTNAM VARIABLE TRUST Putnam VT Small Cap Value Fund 0.08% 1.09% 0.00% 1.09%
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TOTAL CONTRACTUAL NET TOTAL ANNUAL EXPENSE ANNUAL MANAGEMENT 12B-1/SERVICE OTHER PORTFOLIO SUBSIDY OR PORTFOLIO FEES FEES EXPENSES(1) EXPENSES DEFERRAL EXPENSES ------------ --------------- ------------- ----------- ------------- ---------- THE UNIVERSAL INSTITUTIONAL FUNDS, INC. Equity and Income Portfolio 0.50% 0.35% 0.28% 1.13% 0.00% 1.13% U.S. Real Estate Securities Portfolio 0.75% 0.00% 0.28% 1.03% 0.00% 1.03% VAN KAMPEN LIFE INVESTMENT TRUST Van Kampen LIT Comstock Portfolio 0.56% 0.25% 0.03% 0.84% 0.00% 0.84% Van Kampen LIT Strategic Growth Portfolio 0.70% 0.25% 0.07% 1.02% 0.00% 1.02% Van Kampen LIT Growth and Income 0.57% 0.25% 0.04% 0.86% 0.00% 0.86% Portfolio
MANAGEMENT 12B-1/SERVICE OTHER FEES FEES EXPENSES ------------ --------------- ---------- LEGG MASON PARTNERS VARIABLE LIFESTYLE SERIES INC. Legg Mason Partners Variable Lifestyle 0.35% 0.00% 0.00% Balanced Portfolio(6) Legg Mason Partners Variable Lifestyle 0.35% 0.00% 0.00% Growth Portfolio(6) Legg Mason Partners Variable Lifestyle High 0.35% 0.00% 0.00% Growth Portfolio(6) NET TOTAL ANNUAL PORTFOLIO NET EXPENSES TOTAL CONTRACTUAL TOTAL INCLUDING ANNUAL EXPENSE ANNUAL EXPENSES OF PORTFOLIO SUBSIDY OR PORTFOLIO UNDERLYING EXPENSES DEFERRAL EXPENSES PORTFOLIOS(6) ----------- ------------- ----------- -------------- LEGG MASON PARTNERS VARIABLE LIFESTYLE SERIES INC. Legg Mason Partners Variable Lifestyle 0.35% 0.00% 0.35% 1.05% Balanced Portfolio(6) Legg Mason Partners Variable Lifestyle 0.35% 0.00% 0.35% 1.10% Growth Portfolio(6) Legg Mason Partners Variable Lifestyle High 0.35% 0.00% 0.35% 1.16% Growth Portfolio(6)
The Net Total Annual Portfolio Expenses have been restated to reflect contractual arrangements in effect as of May 1, 2006, under which investment advisers or managers of investment portfolios have agreed to waive and/or pay expenses of the portfolios. Each of these arrangements is in effect until at least April 30, 2007 (excluding optional extensions). Net Total Annual Portfolio Expenses have not been restated to reflect expense reductions that certain investment portfolios achieved as a result of voluntary expense subsidy or deferral arrangements or directed brokerage arrangements. The investment portfolios provided the information on their expenses, and we have not independently verified the information. Unless otherwise indicated the information provided is for the year ended December 31, 2005. (1) Other Expenses may include amounts repaid to investment advisers or managers pursuant to contractual arrangements for prior waivers or payments of portfolio expenses. The amounts repaid per portfolio are: 0.04% for the Met/AIM Small Cap Growth Portfolio; 0.05% for the MFS (Reg. TM) Research International Portfolio; and 0.05% for the Oppenheimer Capital Appreciation Portfolio. (2) The information provided is for the fiscal year ended October 31, 2005. (3) Management Fees in the fee table have been restated to reflect a new fee schedule that became effective November 1, 2005 (December 1, 2005 for the Legg Mason Partners Variable Social Awareness Stock Portfolio). (4) Portfolio expenses for this investment portfolio are estimated for the year ended December 31, 2006. (5) The FI Large Cap Portfolio's annual expenses have been restated to reflect the reorganization of another portfolio into the FI Large Cap Portfolio, which occurred as of the close of business on April 28, 2006. (6) Each portfolio of the Legg Mason Partners Variable Lifestyle Series Inc. (a "fund of funds") invests in the shares of other mutual funds ("underlying portfolios") and will bear its pro rata portion of the operating expenses of the underlying portfolios in which each fund of funds invests. The Net Total Annual Portfolio Expenses Including Expenses of the Underlying Portfolios includes a weighted average of the total expense ratios of the underlying portfolios as of January 31, 2006 (the fiscal year end of the funds of funds). These weighted averages of the total expense ratios of the underlying portfolios are: 0.70% for the Legg Mason Partners Variable Lifestyle Balanced Portfolio; 0.75% for the Legg Mason Partners Variable Lifestyle Growth Portfolio; and 0.81% for the Legg Mason Partners Variable Lifestyle High Growth Portfolio. 10 EXAMPLES THESE EXAMPLES ARE INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THE CONTRACT WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITY CONTRACTS. THESE COSTS INCLUDE CONTRACT OWNER TRANSACTION EXPENSES, CONTRACT FEES, SEPARATE ACCOUNT ANNUAL EXPENSES, AND INVESTMENT PORTFOLIO FEES AND EXPENSES. THE EXAMPLES ASSUME THAT YOU INVEST $10,000 IN THE CONTRACT FOR THE TIME PERIODS INDICATED. THE EXAMPLES ALSO ASSUME THAT YOUR INVESTMENT HAS A 5% RETURN EACH YEAR AND ASSUME: (A) MAXIMUM AND (B) MINIMUM FEES AND EXPENSES OF ANY OF THE INVESTMENT PORTFOLIOS (BEFORE SUBSIDY AND/OR DEFERRAL). ALTHOUGH YOUR ACTUAL COSTS MAY BE HIGHER OR LOWER, BASED ON THESE ASSUMPTIONS, YOUR COSTS WOULD BE: CHART 1. Chart 1 assumes you select the optional Annual Step-Up Death Benefit rider, the Additional Death Benefit - Earnings Preservation Benefit rider and the Lifetime Withdrawal Guarantee (Joint Life version) rider (assuming the maximum charge of 1.40%), which is the most expensive way to purchase the contract. (1) IF YOU SURRENDER YOUR CONTRACT AT THE END OF THE APPLICABLE TIME PERIOD:
Time Periods 1 year 3 years 5 years 10 years -------------- ------------ ------------ ------------ (a)$ (a)$ (a)$ (a)$ (b)$ (b)$ (b)$ (b)$
(2) IF YOU DO NOT SURRENDER YOUR CONTRACT OR IF YOU ANNUITIZE AT THE END OF THE APPLICABLE TIME PERIOD:
Time Periods 1 year 3 years 5 years 10 years -------------- ------------ ------------ ------------ (a)$ (a)$ (a)$ (a)$ (b)$ (b)$ (b)$ (b)$
CHART 2. Chart 2 below assumes that you do not select any optional death benefit riders, the GWB III or Lifetime Withdrawal Guarantee rider, which is the least expensive way to purchase the contract. (1) IF YOU SURRENDER YOUR CONTRACT AT THE END OF THE APPLICABLE TIME PERIOD:
Time Periods 1 year 3 years 5 years 10 years -------------- ------------ ------------ ------------ (a)$ (a)$ (a)$ (a)$ (b)$ (b)$ (b)$ (b)$
(2) IF YOU DO NOT SURRENDER YOUR CONTRACT OR IF YOU ANNUITIZE AT THE END OF THE APPLICABLE TIME PERIOD:
Time Periods 1 year 3 years 5 years 10 years -------------- ------------ ------------ ------------ (a)$ (a)$ (a)$ (a)$ (b)$ (b)$ (b)$ (b)$
The Examples should not be considered a representation of past or future expenses or annual rates of return of any investment portfolio. Actual expenses and annual rates of return may be more or less than those assumed for the purpose of the Examples. 11 1. THE ANNUITY CONTRACT This prospectus describes the Variable Annuity Contract offered by us. The variable annuity contract is a contract between you as the owner, and us, the insurance company, where we promise to pay an income to you, in the form of annuity payments, beginning on a designated date that you select. Until you decide to begin receiving annuity payments, your annuity is in the ACCUMULATION PHASE. Once you begin receiving annuity payments, your contract switches to the INCOME PHASE. The contract benefits from tax deferral. Tax deferral means that you are not taxed on earnings or appreciation on the assets in your contract until you take money out of your contract. For any tax qualified account (e.g. an IRA or 403(b) plan), the tax deferred accrual feature is provided by the tax qualified retirement plan. Therefore, there should be reasons other than tax deferral for acquiring the contract within a qualified plan. (See "Federal Tax Status.") The contract is called a variable annuity because you can choose among the investment portfolios and, depending upon market conditions, you can make or lose money in any of these portfolios. If you select the variable annuity portion of the contract, the amount of money you are able to accumulate in your contract during the accumulation phase depends upon the investment performance of the investment portfolio(s) you select. The amount of the annuity payments you receive during the income phase from the variable annuity portion of the contract also depends, in part, upon the investment performance of the investment portfolio(s) you select for the income phase. We do not guarantee the investment performance of the variable annuity portion. You bear the full investment risk for all amounts allocated to the variable annuity portion. However, prior to its termination, the Lifetime Withdrawal Guarantee rider offers the option, after a 15-year waiting period, to cancel the rider and increase your account value to your initial purchase payment, less reductions for any withdrawals (see Living Benefits - Lifetime Withdrawal Guarantee). In most states, the contract also contains a FIXED ACCOUNT (contact your registered representative regarding your state). The fixed account is not offered by this prospectus. The fixed account offers an interest rate that is guaranteed by us (the minimum rate on the fixed account is 1.5% but may be higher in your state). If you select the fixed account, your money will be placed with our other general account assets, and the amount of money you are able to accumulate in your contract during the accumulation phase depends upon the total interest credited to your contract. The fixed account is part of our general account. Our general account consists of all assets owned by us other than those in the Separate Account and our other separate accounts. We have sole discretion over the investment of assets in the general account. If you select a fixed annuity payment option during the income phase, payments are made from our general account assets. The amount of the annuity payments you receive during the income phase from a fixed annuity payment option of the contract will remain level for the entire income phase, provided that the payment may increase in the event you make a transfer from a variable annuity payment option to the fixed annuity payment. Please see the terms of your actual contract for more detailed information. As owner of the contract, you exercise all interests and rights under the contract. You can change the owner at any time by notifying us in writing. The contract may be owned generally by joint owners (limited to two natural persons). We provide more information on this under "Other Information." MARKET TIMING We have policies and procedures that attempt to detect transfer activity that may adversely affect other owners or investment portfolio shareholders in situations where there is potential for pricing inefficiencies or that involve certain other types of disruptive trading activity (I.E., market timing). We employ various means to try to detect such transfer activity, such as periodically examining the frequency and size of transfers into and out of particular investment portfolios made by owners within given periods of time and/or investigating transfer activity identified by the investment portfolios on a case-by-case basis. We may revise these policies and procedures in our sole discretion at any time without prior notice. 12 Our market timing policies and procedures are discussed in more detail in "Investment Options - Transfers - Market Timing." 2. PURCHASE PURCHASE PAYMENTS A PURCHASE PAYMENT is the money you give us to invest in the contract. The initial purchase payment is due on the date the contract is issued. Subject to the minimum and maximum payment requirements (see below), you may make additional purchase payments. o The minimum initial purchase payment we will accept is $5,000. o If you want to make an initial purchase payment of $1 million or more, or an additional purchase payment that would cause your total purchase payments to exceed $1 million, you will need our prior approval. o You can make additional purchase payments of $500 or more to either type of contract (qualified and non-qualified) unless you have elected an electronic funds transfer program approved by us, in which case the minimum additional purchase payment is $100 per month. o You are required to estimate on the application the total purchase payments you intend to make in the first contract year. This estimate will determine the Mortality and Expense charge you pay during the first contract year. At the first contract anniversary, the Mortality and Expense charge may be increased if you do not reach your purchase payment estimate. Also, additional purchase payments in excess of your estimate and additional purchase payments after the first contract year will not lower your Mortality and Expense charge. Please see 'Expenses-Product Charges-How to Reduce the Mortality and Expense Charge' for more information. o We will accept a different amount if required by federal tax law. We reserve the right to reject any application or purchase payment and to limit future purchase payments. TERMINATION FOR LOW ACCOUNT VALUE We may terminate your contract by paying you the account value in one sum if, prior to the annuity date, you do not make purchase payments for two consecutive contract years, the total amount of purchase payments made, less any partial withdrawals, is less than $2,000 or any lower amount required by federal tax laws, and the account value on or after the end of such two year period is less than $2,000. Accordingly, no contract will be terminated due solely to negative investment performance. ALLOCATION OF PURCHASE PAYMENTS When you purchase a contract, we will allocate your purchase payment to the fixed account and/or any of the investment portfolios you have selected. You may not choose more than 18 investment portfolios (including the fixed account) at the time your initial purchase payment is allocated. Each allocation must be at least $500 and must be in whole numbers. We have reserved the right to restrict payments to the fixed account if any of the following conditions exist: o the credited interest rate on the fixed account is equal to the guaranteed minimum rate; or o your account value in the fixed account equals or exceeds our published maximum for fixed account allocation (currently, there is no limit); or o a transfer was made out of the fixed account within the previous 180 days. If you make additional purchase payments, we will allocate them in the same way as your first purchase payment unless you tell us otherwise. However, if you make an additional purchase payment and you have a DCA program in effect, we will allocate your additional payments to the investment portfolios selected under the DCA program unless you tell us otherwise. You may change your allocation instructions at any time by notifying us in writing, by calling us or by Internet. You may not choose more than 18 investment portfolios (including the fixed account) at the time you submit a subsequent purchase payment. If you wish to allocate the payment to more than 18 investment portfolios (including the fixed account), you must notify us of your chosen allocation one or more days prior to submitting the payment. If there are joint owners, unless we are instructed to the contrary, we will accept allocation instructions from either joint owner. Once we receive your purchase payment and the necessary information, we will issue your contract and allocate your first purchase payment within 2 business days. A BUSINESS DAY is each day that the New York Stock Exchange is open for business. A business day closes at the close of normal 13 trading on the New York Stock Exchange, usually 4:00 p.m. Eastern Time. If you do not give us all of the information we need, we will contact you to get it before we make any allocation. If for some reason we are unable to complete this process within 5 business days, we will either send back your money or get your permission to keep it until we get all of the necessary information. (See "Other Information - Requests and Elections.") FREE LOOK If you change your mind about owning this contract, you can cancel it within 10 days after receiving it (or the period required in your state). We ask that you submit your request to cancel in writing, signed by you, to our Annuity Service Center. When you cancel the contract within this "free look" period, we will not assess a withdrawal charge. Unless otherwise required by state law, you will receive back whatever your contract is worth on the day we receive your request. This may be more or less than your payment depending upon the performance of the portfolios you allocated your purchase payment to during the free look period. This means that you bear the risk of any decline in the value of your contract during the free look period. We do not refund any charges or deductions assessed during the free look period. In certain states, we are required to give you back your purchase payment if you decide to cancel your contract during the free look period. ACCUMULATION UNITS The portion of your account value allocated to the Separate Account will go up or down depending upon the investment performance of the investment portfolio(s) you choose. In order to keep track of this portion of your account value, we use a unit of measure we call an ACCUMULATION UNIT. (An accumulation unit works like a share of a mutual fund.) Every business day we determine the value of an accumulation unit for each of the investment portfolios by multiplying the accumulation unit value for the immediately preceding business day by a factor for the current business day. The factor is determined by: 1) dividing the net asset value per share of the investment portfolio at the end of the current business day, plus any dividend or capital gains per share declared on behalf of the investment portfolio as of that day, by the net asset value per share of the investment portfolio for the previous business day, and 2) multiplying it by one minus the Separate Account product charges (including any death benefit rider charge) for each day since the last business day and any charges for taxes. The value of an accumulation unit may go up or down from day to day. When you make a purchase payment, we credit your contract with accumulation units. The number of accumulation units credited is determined by dividing the amount of the purchase payment allocated to an investment portfolio by the value of the accumulation unit for that investment portfolio. We calculate the value of an accumulation unit for each investment portfolio after the New York Stock Exchange closes each day (generally 4:00 p.m. Eastern Time) and then credit your contract. EXAMPLE: On Monday we receive an additional purchase payment of $5,000 from you before 4:00 p.m. Eastern Time. You have told us you want this to go to the MFS (Reg. TM) Research International Portfolio. When the New York Stock Exchange closes on that Monday, we determine that the value of an accumulation unit for the MFS (Reg. TM) Research International Portfolio is $13.90. We then divide $5,000 by $13.90 and credit your contract on Monday night with 359.71 accumulation units for the MFS (Reg. TM) Research International Portfolio. ACCOUNT VALUE ACCOUNT VALUE is equal to the sum of your interests in the investment portfolios and the fixed account. Your interest in each investment portfolio is determined by multiplying the number of accumulation units for that portfolio by the value of the accumulation unit. REPLACEMENT OF CONTRACTS 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. Remember that 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 and 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. 14 Generally, it is not advisable to purchase a contract as a replacement for an existing variable annuity contract. Before you exchange another annuity for our contract, ask your registered representative whether the exchange would be advantageous, given the contract features, benefits and charges. 3. INVESTMENT OPTIONS The contract offers 50 INVESTMENT PORTFOLIOS, which are listed below. Additional investment portfolios may be available in the future. YOU SHOULD READ THE PROSPECTUSES FOR THESE FUNDS CAREFULLY. COPIES OF THESE PROSPECTUSES WILL ACCOMPANY OR PRECEDE THE DELIVERY OF YOUR CONTRACT. YOU CAN OBTAIN COPIES OF THE FUND PROSPECTUSES BY CALLING OR WRITING TO US AT: METLIFE INVESTORS USA INSURANCE COMPANY, VARIABLE AND FIXED ANNUITY PRODUCTS, P.O. BOX 10426, DES MOINES, IOWA 50306-0426, (800) 842-9325. YOU CAN ALSO OBTAIN INFORMATION ABOUT THE FUNDS (INCLUDING A COPY OF THE STATEMENT OF ADDITIONAL INFORMATION) BY ACCESSING THE SECURITIES AND EXCHANGE COMMISSION'S WEBSITE AT HTTP://WWW.SEC.GOV. CERTAIN INVESTMENT PORTFOLIOS DESCRIBED IN THE FUND PROSPECTUSES MAY NOT BE AVAILABLE WITH YOUR CONTRACT. APPENDIX A CONTAINS A SUMMARY OF ADVISERS AND SUBADVISERS, AND INVESTMENT OBJECTIVES AND STRATEGIES FOR EACH INVESTMENT PORTFOLIO. The investment objectives and policies of certain of the investment portfolios may be similar to the investment objectives and policies of other mutual funds that certain of the portfolios' investment advisers manage. Although the objectives and policies may be similar, the investment results of the investment portfolios may be higher or lower than the results of such other mutual funds. The investment advisers cannot guarantee, and make no representation, that the investment results of similar funds will be comparable even though the funds may have the same investment advisers. Shares of the investment portfolios may be offered to insurance company separate accounts of both variable annuity and variable life insurance contracts and to qualified plans. Due to differences in tax treatment and other considerations, the interests of various owners participating in, and the interests of qualified plans investing in the investment portfolios may conflict. The investment portfolios will monitor events in order to identify the existence of any material irreconcilable conflicts and determine what action, if any, should be taken in response to any such conflict. CERTAIN PAYMENTS WE RECEIVE WITH REGARD TO THE INVESTMENT PORTFOLIOS. An investment adviser (other than our affiliates MetLife Advisers, LLC, and Met Investors Advisory, LLC) or subadviser of an investment portfolio, or its affiliates, may compensate us and/or certain of our affiliates for administrative or other services relating to the investment portfolios. The amount of the compensation is not deducted from portfolio assets and does not decrease the portfolio's investment return. The amount of the compensation is based on a percentage of assets of the investment portfolios attributable to the contracts and certain other variable insurance products that we and our affiliates issue. These percentages differ and some advisers or subadvisers (or other affiliates) may pay us more than others. These percentages currently range up to 0.50%. The agreement described below between MetLife, Inc. ("MetLife") and Legg Mason, Inc. ("Legg Mason") also obligates Legg Mason affiliates to continue on their current terms certain arrangements under which we receive payments in connection with our provision of administrative, marketing or other support services to the portfolios advised or subadvised by Legg Mason affiliates. Additionally, an investment adviser or subadviser of an investment portfolio or its affiliates may provide us with wholesaling services that assist in the distribution of the contracts and may pay us and/or certain of our affiliates amounts to participate in sales meetings. These amounts may be significant and may provide the adviser or subadviser (or its affiliate) with increased access to persons involved in the distribution of the contracts. We and/or certain of our affiliated insurance companies have membership interests in our affiliated investment advisers MetLife Advisers, LLC, and Met Investors Advisory, LLC, which are formed as "limited liability companies." Our membership interests entitle us to profit distributions if the adviser makes a profit with respect to the advisory fees it receives from the investment portfolio. We may benefit accordingly from assets allocated to the investment portfolios to the extent they result in profits to the advisers. (See "Fee Tables and Examples - Investment Portfolio Expenses" for information on the management fees paid by the investment portfolios and the Statement of Additional Information for the investment portfolios for 15 information on the management fees paid by the advisers to the subadvisers.) Certain investment portfolios have adopted a Distribution Plan under Rule 12b-1 of the Investment Company Act of 1940. The Distribution Plan is described in more detail in the investment portfolio's prospectus. (See "Fee Tables and Examples - Investment Portfolio Expenses" and "Other Information - Distributor.") The payments are deducted from assets of the investment portfolios and are paid to our distributor, MetLife Investors Distribution Company. These payments decrease the portfolio's investment return. We select the investment portfolios offered through this contract based on several criteria, including asset class coverage, the strength of the adviser's or subadviser's reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Another factor we consider during the selection process is whether the investment portfolio's adviser or subadviser is one of our affiliates or whether the investment portfolio, its adviser, its subadviser(s), or an affiliate will compensate us or our affiliates for providing certain administrative and other services, as described above. In some cases, we have included investment portfolios based on recommendations made by selling firms. We review the investment portfolios periodically and may remove an investment portfolio or limit its availability to new purchase payments and/or transfers of account value if we determine that the investment portfolio no longer meets one or more of the selection criteria, and/or if the investment portfolio has not attracted significant allocations from owners. In certain instances, our ability to remove or replace an investment portfolio may be limited by the terms of a five-year agreement between MetLife and Legg Mason relating to the use of certain investment portfolios advised by Legg Mason affiliates. The agreement sets forth the conditions under which we can remove an investment portfolio, which, in some cases, may differ from our own selection criteria. In addition, during the term of the agreement, subject to our fiduciary and other legal duties, we are generally obligated in the first instance to consider investment portfolios advised by Legg Mason affiliates in seeking to make a substitution for an investment portfolio advised by a Legg Mason affiliate. The agreement was originally entered into on July 1, 2005 by MetLife and certain affiliates of Citigroup Inc. ("Citigroup") as part of MetLife's acquisition of The Travelers Insurance Company and The Travelers Life and Annuity Company from Citigroup. Legg Mason replaced the Citigroup affiliates as a party to the agreement when Citigroup subsequently sold its asset management business to Legg Mason. We do not provide investment advice and do not recommend or endorse any particular investment portfolio. We make certain payments to American Funds Distributors, Inc., principal underwriter for the American Funds Insurance Series. (See "Other Information - Distributor.") ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC. (CLASS B) AllianceBernstein Variable Products Series Fund, Inc. is a mutual fund with multiple portfolios. Alliance Capital Management L.P. is the investment adviser to each portfolio. The following Class B portfolio is available under the contract: AllianceBernstein Large Cap Growth Portfolio AMERICAN FUNDS INSURANCE SERIES (CLASS 2) American Funds Insurance Series is a trust with multiple portfolios. Capital Research and Management Company is the investment adviser to each portfolio. The following Class 2 portfolios are available under the contract: American Funds Global Growth Fund American Funds Growth Fund American Funds Growth-Income Fund FIDELITY VARIABLE INSURANCE PRODUCTS (SERVICE CLASS 2) Fidelity Variable Insurance Products is a variable insurance product portfolio fund with multiple portfolios. Fidelity Management & Research Company is the investment manager and FMR Co., Inc. serves as the sub-adviser to each portfolio. The following Service Class 2 portfolio is available under the contract: VIP Mid Cap Portfolio FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST (CLASS 2) Franklin Templeton Variable Insurance Products Trust currently consists of 23 separate series (the Fund or Funds). Funds may be available in multiple classes: Class 1, Class 2 and Class 3. The portfolios available in connection with your contract are Class 2 shares. Franklin Advisers, Inc.is the investment advisor for the Franklin Income Securities Portfolio; Franklin Mutual Advisers, LLC is the investment advisor for Mutual Shares Securities Fund; and Templeton Global Advisors Limited is the investment adviser for the 16 Templeton Growth Securities Fund. The following Class 2 portfolios are available under the contract: Franklin Income Securities Fund Mutual Shares Securities Fund Templeton Growth Securities Fund LEGG MASON PARTNERS INVESTMENT SERIES Legg Mason Partners Investment Series is a mutual fund with multiple portfolios. Smith Barney Fund Management LLC is the investment adviser to each portfolio. The following portfolio is available under the contract: Legg Mason Partners Variable Dividend Strategy Portfolio Legg Mason Partners Variable Growth and Income Portfolio Legg Mason Partners Variable Premier Selections All Cap Growth Portfolio LEGG MASON PARTNERS VARIABLE PORTFOLIOS I, INC. (CLASS I) Legg Mason Partners Variable Portfolios I, Inc. is a mutual fund with multiple portfolios. Salomon Brothers Asset Management, Inc. is the investment adviser to each portfolio. The following Class I portfolios are available under the contract: Legg Mason Partners Variable High Yield Bond Portfolio Legg Mason Partners Variable Small Cap Growth Portfolio LEGG MASON PARTNERS VARIABLE PORTFOLIOS II Legg Mason Partners Variable Portfolios II is a trust that consists of multiple portfolios. Smith Barney Fund Management LLC is the investment adviser to each portfolio listed below. The following portfolios are available under the contract: Legg Mason Partners Variable Appreciation Portfolio Legg Mason Partners Variable Capital and Income Portfolio Legg Mason Partners Variable Fundamental Value Portfolio LEGG MASON PARTNERS VARIABLE PORTFOLIOS III, INC. Legg Mason Partners Variable Portfolios III, Inc. is a mutual fund with multiple portfolios. Salomon Brothers Asset Management, Inc. is the investment adviser to the Legg Mason Partners Variable Aggressive Growth Portfolio. Smith Barney Fund Management LLC is the investment adviser to the other portfolios listed below. The following portfolios are available under the contract: Legg Mason Partners Variable Adjustable Rate Income Portfolio Legg Mason Partners Variable Aggressive Growth Portfolio Legg Mason Partners Variable Large Cap Growth Portfolio Legg Mason Partners Variable Large Cap Value Portfolio Legg Mason Partners Variable Money Market Portfolio Legg Mason Partners Variable Social Awareness Stock Portfolio LEGG MASON PARTNERS VARIABLE PORTFOLIOS IV Legg Mason Partners Variable Portfolios IV is a trust with multiple portfolios. Smith Barney Fund Management LLC is the investment adviser for the portfolios. The following portfolios are available under the contract: Legg Mason Partners Variable Multiple Discipline Portfolio - All Cap Growth and Value Legg Mason Partners Variable Multiple Discipline Portfolio - Balanced All Cap Growth and Value Legg Mason Partners Variable Multiple Discipline Portfolio - Global All Cap Growth and Value Legg Mason Partners Variable Multiple Discipline Portfolio - Large Cap Growth and Value MET INVESTORS SERIES TRUST (CLASS B OR CLASS A, AS NOTED) Met Investors Series Trust is a mutual fund with multiple portfolios. Met Investors Advisory, LLC (Met Investors Advisory), an affiliate of MetLife Investors USA, is the investment manager of Met Investors Series Trust. Met Investors Advisory has engaged subadvisers to provide investment advice for the individual investment portfolios. (See Appendix A for the names of the subadvisers.) The following Class B or Class A, as noted, portfolios are available under the contract: Met/AIM Capital Appreciation Portfolio (Class A) Met/AIM Small Cap Growth Portfolio MFS (Reg. TM) Research International Portfolio MFS (Reg. TM) Value Portfolio (Class A) Oppenheimer Capital Appreciation Portfolio Pioneer Fund Portfolio (Class A) Pioneer Strategic Income Portfolio (Class A) Met/Putnam Capital Opportunities Portfolio METROPOLITAN SERIES FUND, INC. Metropolitan Series Fund, Inc. is a mutual fund with multiple portfolios. MetLife Advisers, LLC (MetLife Advisers), an affiliate of MetLife Investors USA, is the investment adviser to the portfolios. MetLife Advisers has 17 engaged subadvisers to provide investment advice for the individual investment portfolios. (See Appendix A for the names of the subadvisers.) The following portfolios are available under the contracts: FI International Stock Portfolio (Class B) FI Large Cap Portfolio (Class A) FI Value Leaders Portfolio (Class D) MFS (Reg. TM) Total Return Portfolio (Class F) Oppenheimer Global Equity Portfolio (Class B) Western Asset Management U.S. Government Portfolio (Class B) PIONEER VARIABLE CONTRACTS TRUST (CLASS II) Pioneer Variable Contracts Trust is a mutual fund with multiple portfolios. Pioneer Investment Management, Inc. is the investment adviser to each portfolio. The following Class II portfolio is available under the contract: Pioneer Mid Cap Value VCT Portfolio PUTNAM VARIABLE TRUST (CLASS IB) Putnam Variable Trust is a mutual fund with multiple portfolios. Putnam Investment Management, LLC is the investment adviser to each portfolio. The following Class IB portfolio is available under the contract: Putnam VT Small Cap Value Fund THE UNIVERSAL INSTITUTIONAL FUNDS, INC. (CLASS I OR II, AS NOTED) The Universal Institutional Funds, Inc. is a mutual fund with multiple portfolios. Morgan Stanley Investment Management Inc., doing business as Van Kampen, is the investment adviser to each portfolio. The following Class I or Class II, as noted, portfolios are available under the contract: Equity and Income Portfolio (Class II) U.S. Real Estate Securities Portfolio (Class I) VAN KAMPEN LIFE INVESTMENT TRUST (CLASS II) Van Kampen Life Investment Trust is a mutual fund with multiple portfolios. Van Kampen Asset Management Inc. is the investment adviser to each portfolio. The following Class II portfolios are available under the contract: Van Kampen LIT Comstock Portfolio Van Kampen LIT Strategic Growth Portfolio Van Kampen LIT Growth and Income Portfolio LEGG MASON PARTNERS VARIABLE LIFESTYLE SERIES, INC. Legg Mason Partners Variable Lifestyle Series, Inc. is a mutual fund with multiple portfolios. Smith Barney Fund Management LLC is the investment adviser to each portfolio. The following portfolios are available under the contract: Legg Mason Partners Variable Lifestyle Balanced Portfolio Legg Mason Partners Variable Lifestyle Growth Portfolio Legg Mason Partners Variable Lifestyle High Growth Portfolio -------------------------------------------------------------------------------- TRANSFERS GENERAL. You can transfer a portion of your account value among the fixed account and the investment portfolios. The contract provides that you can make a maximum of 12 transfers every year and that each transfer is made without charge. We measure a year from the anniversary of the day we issued your contract. We currently allow unlimited transfers but reserve the right to limit this in the future. We may also limit transfers in circumstances of market timing or other transfers we determine are or would be to the disadvantage of other contract owners. (See "Investment Options - Transfers - Market Timing.") We are not currently charging a transfer fee, but we reserve the right to charge such a fee in the future. If such a charge were to be imposed, it would be $25 for each transfer over 12 in a year. The transfer fee will be deducted from the investment portfolio or fixed account from which the transfer is made. However, if the entire interest in an account is being transferred, the transfer fee will be deducted from the amount which is transferred. You can make a transfer to or from the fixed account and to or from any investment portfolio, subject to the limitations below. All transfers made on the same business day will be treated as one transfer. Transfers received before the close of trading on the New York Stock Exchange will take effect as of the end of the business day. The following apply to any transfer: o Your request for transfer must clearly state which investment portfolio(s) or the fixed account are involved in the transfer. o Your request for transfer must clearly state how much the transfer is for. o The minimum amount you can transfer is $500 from an investment portfolio, or your entire interest in the investment portfolio, if less (this does not apply to pre-scheduled transfer programs). 18 o The minimum amount that may be transferred from the fixed account is $500, or your entire interest in the fixed account. Transfers out of the fixed account during the accumulation phase are limited to the greater of: (a) 25% of the fixed account value at the beginning of the contract year, or (b) the amount transferred out of the fixed account in the prior contract year. o You may not make a transfer to more than 18 investment portfolios (including the fixed account) at any time if the request is made by telephone to our voice response system or by Internet. A request to transfer to more than 18 investment portfolios (including the fixed account) may be made by calling or writing our Annuity Service Center. During the accumulation phase, to the extent permitted by applicable law, during times of drastic economic or market conditions, we may suspend the transfer privilege temporarily without notice and treat transfer requests based on their separate components (a redemption order with simultaneous request for purchase of another investment portfolio). In such a case, the redemption order would be processed at the source investment portfolio's next determined accumulation unit value. However, the purchase of the new investment portfolio would be effective at the next determined accumulation unit value for the new investment portfolio only after we receive the proceeds from the source investment portfolio, or we otherwise receive cash on behalf of the source investment portfolio. For transfers during the accumulation phase, we have reserved the right to restrict transfers to the fixed account if any one of the following conditions exist: o The credited interest rate is equal to the guaranteed minimum rate; o Your account value in the fixed account equals or exceeds our published maximum for fixed account contract values (currently, there is no limit); or o A transfer was made out of the fixed account within the previous 180 days. During the income phase, you cannot make transfers from a fixed annuity payment option to the investment portfolios. You can, however, make transfers during the income phase from the investment portfolios to a fixed annuity payment option and among the investment portfolios. TRANSFERS BY TELEPHONE OR OTHER MEANS. You may elect to make transfers by telephone, Internet or other means acceptable to us. To elect this option, you must first provide us with a notice or agreement in a form that we may require. If you own the contract with a joint owner, unless we are instructed otherwise, we will accept instructions from either you or the other owner. (See "Other Information - Requests and Elections.") All transfers made on the same day will be treated as one transfer. A transfer will be made as of the end of the business day when we receive a notice containing all the required information necessary to process the request. We will consider telephone and Internet requests received after 4:00 p.m. Eastern Time to be received the following business day. PRE-SCHEDULED TRANSFER PROGRAM. There are certain programs that involve transfers that are pre-scheduled. When a transfer is made as a result of such a program, we do not count the transfer in determining the applicability of any transfer fee and certain minimums do not apply. The current pre-scheduled transfers are made in conjunction with the following: Dollar Cost Averaging and Automatic Rebalancing Programs. MARKET TIMING. Frequent requests from contract owners to transfer account value may dilute the value of an investment portfolio's shares if the frequent trading involves an attempt to take advantage of pricing inefficiencies created by a lag between a change in the value of the securities held by the portfolio and the reflection of that change in the portfolio's share price ("arbitrage trading"). Regardless of the existence of pricing inefficiencies, frequent transfers may also increase brokerage and administrative costs of the underlying investment portfolios and may disrupt portfolio management strategy, requiring a portfolio to maintain a high cash position and possibly resulting in lost investment opportunities and forced liquidations ("disruptive trading"). Accordingly, arbitrage trading and disruptive trading activities (referred to collectively as "market timing") may adversely affect the long-term performance of the investment portfolios, which may in turn adversely affect contract owners and other persons who may have an interest in the contracts (E.G., annuitants and beneficiaries). We have policies and procedures that attempt to detect and deter frequent transfers in situations where we determine there is a potential for arbitrage trading. Currently, we 19 believe that such situations may be presented in the international, small-cap, and high-yield investment portfolios (i.e., the American Funds Global Growth Fund, the Legg Mason Partners Variable High Yield Bond Portfolio, the Legg Mason Partners Variable Small Cap Growth Portfolio, the Met/AIM Small Cap Growth Portfolio, the MFS (Reg. TM) Research International Portfolio, the FI International Stock Portfolio, the Oppenheimer Global Equity Portfolio, and the Putnam VT Small Cap Value Fund), and we monitor transfer activity in those portfolios (the "Monitored Portfolios"). We employ various means to monitor transfer activity, such as examining the frequency and size of transfers into and out of the Monitored Portfolios within given periods of time. For example, we currently monitor transfer activity to determine if, for each category of international, small-cap, and high-yield portfolios, in a 12-month period there were: (1) six or more transfers involving the given category; (2) cumulative gross transfers involving the given category that exceed the current account value; and (3) two or more "round-trips" involving the given category. A round-trip generally is defined as a transfer in followed by a transfer out within the next seven calendar days or a transfer out followed by a transfer in within the next seven calendar days, in either case subject to certain other criteria. We do not believe that other investment portfolios present a significant opportunity to engage in arbitrage trading and therefore do not monitor transfer activity in those portfolios. We may change the Monitored Portfolios at any time without notice in our sole discretion. In addition to monitoring transfer activity in certain investment portfolios, we rely on the underlying investment portfolios to bring any potential disruptive trading activity they identify to our attention for investigation on a case-by-case basis. We will also investigate any other harmful transfer activity that we identify from time to time. We may revise these policies and procedures in our sole discretion at any time without prior notice. Our policies and procedures may result in transfer restrictions being applied to deter market timing. Currently, when we detect transfer activity in the Monitored Portfolios that exceeds our current transfer limits, or other transfer activity that we believe may be harmful to other owners or other persons who have an interest in the contracts, we require all future transfer requests to or from any Monitored Portfolios or other identified investment portfolios under that contract to be submitted with an original signature. Transfers made under a Dollar Cost Averaging Program, a rebalancing program or, if applicable, any asset allocation program described in this prospectus are not treated as transfers when we evaluate trading patterns for market timing. The detection and deterrence of harmful transfer activity involves judgments that are inherently subjective, such as the decision to monitor only those investment portfolios that we believe are susceptible to arbitrage trading, or the determination of the transfer limits. Our ability to detect and/or restrict such transfer activity may be limited by operational and technological systems, as well as our ability to predict strategies employed by owners to avoid such detection. Our ability to restrict such transfer activity also may be limited by provisions of the contract. Accordingly, there is no assurance that we will prevent all transfer activity that may adversely affect owners and other persons with interests in the contracts. We do not accommodate market timing in any investment portfolios and there are no arrangements in place to permit any contract owner to engage in market timing; we apply our policies and procedures without exception, waiver, or special arrangement. The investment portfolios may have adopted their own policies and procedures with respect to frequent purchases and redemptions of their respective shares, and we reserve the right to enforce these policies and procedures. For example, investment portfolios may assess a redemption fee (which we reserve the right to collect) on shares held for a relatively short period. The prospectuses for the investment portfolios describe any such policies and procedures, which may be more or less restrictive than the policies and procedures we have adopted. Contract owners and other persons with interests in the contracts should be aware that we currently may not have the contractual obligation or the operational capacity to apply the frequent trading policies and procedures of the investment portfolios. However, under rules recently adopted by the Securities and Exchange Commission, effective April 16, 2007 we will be required to: (1) enter into a written agreement with each investment portfolio or its principal underwriter that will obligate us to provide to the investment portfolio promptly upon request certain information about the trading activity of individual contract owners, and (2) execute instructions from the investment portfolio to restrict or prohibit further purchases or transfers by specific contract owners who violate the frequent trading policies established by the investment portfolio. 20 In addition, contract owners and other persons with interests in the contracts should be aware that some investment portfolios may receive "omnibus" purchase and redemption orders from other insurance companies or intermediaries such as retirement plans. The omnibus orders reflect the aggregation and netting of multiple orders from individual owners of variable insurance contracts and/ or individual retirement plan participants. The omnibus nature of these orders may limit the investment portfolios in their ability to apply their frequent trading policies and procedures. In addition, the other insurance companies and/or retirement plans may have different policies and procedures or may not have any such policies and procedures because of contractual limitations. For these reasons, we cannot guarantee that the investment portfolios (and thus contract owners) will not be harmed by transfer activity relating to other insurance companies and/or retirement plans that may invest in the investment portfolios. In accordance with applicable law, we reserve the right to modify or terminate the transfer privilege at any time. We also reserve the right to defer or restrict the transfer privilege at any time that we are unable to purchase or redeem shares of any of the investment portfolios, including any refusal or restriction on purchases or redemptions of their shares as a result of their own policies and procedures on market timing activities (even if an entire omnibus order is rejected due to the market timing activity of a single contract owner). You should read the investment portfolio prospectuses for more details. DOLLAR COST AVERAGING PROGRAM We offer a dollar cost averaging program (DCA) as described below. By allocating amounts on a regular schedule as opposed to allocating the total amount at one particular time, you may be less susceptible to the impact of market fluctuations. The dollar cost averaging program is available only during the accumulation phase. We reserve the right to modify, terminate or suspend the dollar cost averaging program. There is no additional charge for participating in the dollar cost averaging program. If you participate in the dollar cost averaging program, the transfers made under the program are not taken into account in determining any transfer fee. We may, from time to time, offer other dollar cost averaging programs which have terms different from those described in this prospectus. This program allows you to systematically transfer a set amount each month from the fixed account (new purchase payments only) or from a money market investment portfolio to any of the other available investment portfolio(s) you select. We provide certain exceptions from our normal fixed account restrictions to accommodate the dollar cost averaging program. These transfers are made on a date you select or, if you do not select a date, on the date that a purchase payment or account value is allocated to the dollar cost averaging program. You can make subsequent purchase payments while you have an active DCA program in effect, provided, however, that no amount will be allocated to the DCA program without your express direction. (See "Purchase - Allocation of Purchase Payments.") If you make such an addition to your existing DCA program, the DCA transfer amount will not be increased; however, the number of months over which transfers are made is increased, unless otherwise elected in writing. You can terminate the program at any time, at which point transfers under the program will stop. AUTOMATIC REBALANCING PROGRAM Once your money has been allocated to the investment portfolios, the performance of each portfolio may cause your allocation to shift. You can direct us to automatically rebalance your contract to return to your original percentage allocations by selecting our Automatic Rebalancing Program. You can tell us whether to rebalance quarterly, semi-annually or annually. An automatic rebalancing program is intended to transfer account value from those portfolios that have increased in value to those that have declined or not increased as much in value. Over time, this method of investing may help you "buy low and sell high," although there can be no assurance that this objective will be achieved. Automatic rebalancing does not guarantee profits, nor does it assure that you will not have losses. We will measure the rebalancing periods from the anniversary of the date we issued your contract. If a dollar cost averaging program is in effect, rebalancing allocations will be based on your current DCA allocations. If you are not participating in a dollar cost averaging program, we will make allocations based upon your current purchase payment allocations, unless you tell us otherwise. 21 The Automatic Rebalancing Program is available only during the accumulation phase. There is no additional charge for participating in the Automatic Rebalancing Program. If you participate in the Automatic Rebalancing Program, the transfers made under the program are not taken into account in determining any transfer fee. EXAMPLE: Assume that you want your initial purchase payment split between two investment portfolios. You want 40% to be in the Western Asset Management U.S. Government Portfolio and 60% to be in the Met/AIM Small Cap Growth Portfolio. Over the next 21/2 months the bond market does very well while the stock market performs poorly. At the end of the first quarter, the Western Asset Management U.S. Government Portfolio now represents 50% of your holdings because of its increase in value. If you have chosen to have your holdings rebalanced quarterly, on the first day of the next quarter, we will sell some of your units in the Western Asset Management U.S. Government Portfolio to bring its value back to 40% and use the money to buy more units in the Met/AIM Small Cap Growth Portfolio to increase those holdings to 60%. VOTING RIGHTS We are the legal owner of the investment portfolio shares. However, we believe that when an investment portfolio solicits proxies in conjunction with a vote of shareholders, we are required to obtain from you and other affected owners instructions as to how to vote those shares. When we receive those instructions, we will vote all of the shares we own in proportion to those instructions. This will also include any shares that we own on our own behalf. The effect of this proportional voting is that a small number of contract owners may control the outcome of a vote. Should we determine that we are no longer required to comply with the above, we will vote the shares in our own right. SUBSTITUTION OF INVESTMENT OPTIONS If investment in the investment portfolios or a particular investment portfolio is no longer possible, in our judgment becomes inappropriate for purposes of the contract, or for any other reason in our sole discretion, we may substitute another investment portfolio or investment portfolios without your consent. The substituted investment portfolio may have different fees and expenses. Substitution may be made with respect to existing investments or the investment of future purchase payments, or both. However, we will not make such substitution without any necessary approval of the Securities and Exchange Commission and applicable state insurance departments. Furthermore, we may close investment portfolios to allocation of purchase payments or account value, or both, at any time in our sole discretion. 4. EXPENSES There are charges and other expenses associated with the contract that reduce the return on your investment in the contract. These charges and expenses are: PRODUCT CHARGES SEPARATE ACCOUNT PRODUCT CHARGES. Each day, we make a deduction for our Separate Account product charges (which consist of the mortality and expense charge, the administration charge and the charges related to any death benefit riders). We do this as part of our calculation of the value of the accumulation units and the annuity units. MORTALITY AND EXPENSE CHARGE. We assess a daily mortality and expense charge which is equal, on an annual basis, to a maximum of 1.20% of the average daily net asset value of each investment portfolio. This charge may be reduced based on the amount of your initial purchase payment or, as described below, the total amount of purchase payments made in the first contract year, as shown in the following table: Initial Mortality and Purchase Payment Expense Charge -------------------- ------------------ $0 - 99,999 1.20% $100,000 - 249,999 1.05% $250,000 - 499,999 0.95% $500,000 or more 0.80%
This charge compensates us for mortality risks we assume for the annuity payment and death benefit guarantees made under the contract. These guarantees include making annuity payments that will not change based on our actual mortality experience, and providing a guaranteed minimum death benefit under the contract. The charge also compensates us for expense risks we assume to cover contract maintenance expenses. These expenses may include issuing contracts, maintaining records, making and maintaining subaccounts available under the contract and performing accounting, regulatory compliance, and reporting functions. This charge also compensates us for costs associated with the establishment and administration of the contract, including programs like transfers and dollar cost averaging. If the mortality and expense charge is 22 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. HOW TO REDUCE THE MORTALITY AND EXPENSE CHARGE. If you anticipate making significant amounts of purchase payments after the initial purchase payment but during the first contract year, you may be able to lower the mortality and expense charge assessed by indicating to us on the application the total amount of purchase payments you intend to make during the first contract year. We will assess the daily mortality and expense charge during the first contract year based on the total amount of purchase payments you have indicated you intend to make during the first contract year. You are not obligated to reach your purchase payment goal. If you do not reach your purchase payment goal, at the first contract anniversary the mortality and expense charge will be adjusted to reflect the amount of purchase payments actually made during the first contract year as set forth in the table above, and the adjusted mortality and expense charge will remain in effect for the duration of your contract. We will not adjust the charge on a retroactive basis to recover any amount of the mortality and expense charge assessed during the first contract year. IT IS IMPORTANT TO UNDERSTAND THAT ADDITIONAL PURCHASE PAYMENTS MADE AFTER THE FIRST CONTRACT YEAR WILL NOT LOWER YOUR MORTALITY AND EXPENSE CHARGE. FURTHERMORE, WHILE WE MAY INCREASE YOUR MORTALITY AND EXPENSE CHARGE IF YOU DO NOT REACH YOUR PURCHASE PAYMENT GOAL, WE WILL NOT LOWER THE CHARGE IF YOUR ACTUAL PURCHASE PAYMENTS EXCEED THE AMOUNT YOU INDICATED. THEREFORE, YOU SHOULD CAREFULLY CONSIDER THE AMOUNT OF PURCHASE PAYMENTS YOU INTEND TO MAKE DURING THE FIRST CONTRACT YEAR AND ENTER THAT AMOUNT ON YOUR APPLICATION. BY UNDERESTIMATING THE AMOUNT OF YOUR PURCHASE PAYMENTS DURING THE FIRST CONTRACT YEAR, YOU MAY PAY A HIGHER MORTALITY AND EXPENSE CHARGE FOR THE DURATION OF YOUR CONTRACT THAN IF YOU ACCURATELY ESTIMATE THE AMOUNT OF YOUR PURCHASE PAYMENTS DURING THE FIRST CONTRACT YEAR. If you elect to apply your account value to an annuity option (see "Annuity Payments (The Income Phase)") prior to the first contract anniversary, the mortality and expense charge applied during the income phase will be determined according to the table above, based on total purchase payments received prior to the annuity date. ADMINISTRATION CHARGE. This charge is equal, on an annual basis, to 0.15% of the average daily net asset value of each investment portfolio. This charge, together with the account fee (see below), is for the expenses associated with the administration of the contract. Some of these expenses are: issuing contracts, maintaining records, providing accounting, valuation, regulatory and reporting services, as well as expenses associated with marketing, sale and distribution of the contracts. DEATH BENEFIT RIDER CHARGE. If you select one of the following death benefit riders, we assess a daily charge during the accumulation phase equal, on an annual basis, to the percentage below of the average daily net asset value of each investment portfolio. Annual Step-up Death Benefit 0.15% Additional Death Benefit - Earnings Preservation Benefit 0.25%
ACCOUNT FEE During the accumulation phase, every contract year on your contract anniversary (the anniversary of the date when your contract was issued), we will deduct $30 from your contract as an account fee for the prior contract year if your account value is less than $50,000. If you make a complete withdrawal from your contract, the full account fee will be deducted from the account value regardless of the amount of your account value. During the accumulation phase, the account fee is deducted pro rata from the investment portfolios. This charge is for administrative expenses (see above). This charge cannot be increased. A pro rata portion of the charge will be deducted from the account value on the annuity date if this date is other than a contract anniversary. If your account value on the annuity date is at least $50,000 then we will not deduct the account fee. After the annuity date, a pro rata monthly charge will be collected out of the annuity payment, regardless of the size of your contract. GUARANTEED WITHDRAWAL BENEFIT - RIDER CHARGE We offer an optional Guaranteed Withdrawal Benefit ("GWB") that you can select when you purchase the contract. There are two different versions of the GWB under this contract: GWB III and Lifetime Withdrawal Guarantee. If you elect either GWB rider, a charge is 23 deducted from your account value on each contract anniversary. The charge for the GWB III rider is equal to 0.25% of the Guaranteed Withdrawal Amount (see "Living Benefits - Guaranteed Withdrawal Benefit - Description of GWB III") on the applicable contract anniversary. The charge for the Lifetime Withdrawal Guarantee rider is equal to 0.50% (Single Life version) or 0.70% (Joint Life version) of the Total Guaranteed Withdrawal Amount (see "Living Benefits - Guaranteed Withdrawal Benefit - Description of Lifetime Withdrawal Guarantee") on the applicable contract anniversary prior to taking into account any Automatic Annual Step-Up occurring on such contract anniversary. The GWB rider charge is deducted from your account value pro rata from each investment portfolio and the fixed account in the ratio each account bears to your total account value. We take amounts from the investment options that are part of the Separate Account by canceling accumulation units from the Separate Account. If you make a full withdrawal (surrender) of your account value, you apply your account value to an annuity option, there is a change in owners, joint owners or annuitants (if the owner is a non-natural person), or the contract terminates (except for a termination due to death), a pro rata portion of the rider charge will be assessed based on the number of full months from the last contract anniversary to the date of the change. If the Lifetime Withdrawal Guarantee rider is cancelled following an eligible contract anniversary pursuant to the cancellation provisions of each rider, a pro rata portion of the rider charge will not be assessed based on the period from the contract anniversary to the date the cancellation takes effect. If an Automatic Annual Step-Up occurs under the Lifetime Withdrawal Guarantee, we may increase the rider charge to the Lifetime Withdrawal Guarantee charge applicable to current contract purchases at the time of the step-up, but to no more than a maximum of 0.95% (Single Life version) or 1.40% (Joint Life version) of the Total Guaranteed Withdrawal Amount. If the GWB III rider is in effect, the rider charge will not continue if your Benefit Base equals zero. If the Lifetime Withdrawal Guarantee rider is in effect, the rider charge will continue even if your Remaining Guaranteed Withdrawal Amount equals zero. WITHDRAWAL CHARGE During the accumulation phase, you can make a withdrawal from your contract (either a partial or a complete withdrawal). If the amount you withdraw is determined to include the withdrawal of any of your prior purchase payments, a withdrawal charge is assessed against the purchase payment withdrawn. To determine if your withdrawal includes prior purchase payments, amounts are withdrawn from your contract in the following order: 1. Earnings in your contract (earnings are equal to your account value, less purchase payments not previously withdrawn); then 2. The free withdrawal amount described below; then 3. Purchase payments not previously withdrawn, in the order such purchase payments were made: the oldest purchase payment first, the next purchase payment second, etc. until all purchase payments have been withdrawn. FREE WITHDRAWAL AMOUNT. The free withdrawal amount for each contract year after the first (there is no free withdrawal amount in the first contract year) is equal to 10% of your total purchase payments, less the total free withdrawal amount previously withdrawn in the same contract year. Also, we currently will not assess the withdrawal charge on amounts withdrawn during the first contract year under the Systematic Withdrawal Program. Any unused free withdrawal amount in one contract year does not carry over to the next contract year. The withdrawal charge is calculated at the time of each withdrawal in accordance with the following:
Number of Complete Years from Withdrawal Charge Receipt of Purchase Payment (% of Purchase Payment) ------------------------------- ------------------------ 0 8 1 8 2 7 3 7 4 6 5 5 6 4 7 3 8 and thereafter 0
For a partial withdrawal, the withdrawal charge is deducted from the remaining account value, if sufficient. If the remaining account value is not sufficient, the withdrawal charge is deducted from the amount withdrawn. If the account value is smaller than the total of all purchase payments, the withdrawal charge only applies up to the account value. 24 We do not assess the withdrawal charge on any payments paid out as annuity payments or as death benefits. In addition, we will not assess the withdrawal charge on required minimum distributions from qualified contracts but only as to amounts required to be distributed from this contract. We do not assess the withdrawal charge on earnings in your contract. NOTE: For tax purposes, earnings from non-qualified contracts are considered to come out first. REDUCTION OR ELIMINATION OF THE WITHDRAWAL CHARGE GENERAL. We may elect to reduce or eliminate the amount of the withdrawal charge when the contract is sold under circumstances which reduce our sales expenses. Some examples are: if there is a large group of individuals that will be purchasing the contract or a prospective purchaser already had a relationship with us. We may not deduct a withdrawal charge under a contract issued to an officer, director, employee, or a family member of an officer, director, or employee of ours or any of our affiliates and we may not deduct a withdrawal charge under a contract issued to an officer, director or employee or family member of an officer, director or employee of a broker-dealer which is participating in the offering of the contract. In lieu of a withdrawal charge waiver, we may provide an account value credit. NURSING HOME OR HOSPITAL CONFINEMENT RIDER. We will not impose a withdrawal charge if, after you have owned the contract for one year, you or your joint owner becomes confined to a nursing home and/or hospital for at least 90 consecutive days or confined for a total of at least 90 days if there is no more than a 6 month break in confinement and the confinements are for related causes. The confinement must begin after the first contract anniversary and you must have been the owner continuously since the contract was issued (or have become the owner as the spousal beneficiary who continues the contract). The confinement must be prescribed by a physician and be medically necessary. This waiver terminates on the annuity date. We will not accept additional payments once this waiver is used. TERMINAL ILLNESS RIDER. After the first contract anniversary, we will waive the withdrawal charge if you or your joint owner are terminally ill and not expected to live more than 12 months; a physician certifies to your illness and life expectancy; you were not diagnosed with the terminal illness as of the date we issued your contract; and you have been the owner continuously since the contract was issued (or have become the owner as the spousal beneficiary who continues the contract). This waiver terminates on the annuity date. We will not accept additional payments once this waiver is used. The Nursing Home or Hospital Confinement rider and/or Terminal Illness rider may not be available in your state. (Check with your registered representative regarding availability.) These riders are only available for owners who are age 80 or younger (on the contract issue date). Additional conditions and requirements apply to the Nursing Home or Hospital Confinement rider and the Terminal Illness rider. They are specified in the rider(s) that are part of your contract. PREMIUM AND OTHER TAXES We reserve the right to deduct from purchase payments, account balances, withdrawals, death benefits or income payments any taxes relating to the contracts (including, but not limited to, premium taxes) paid by us to any government entity. Examples of these taxes include, but are not limited to, premium tax, generation-skipping transfer tax or a similar excise tax under federal or state tax law which is imposed on payments we make to certain persons and income tax withholdings on withdrawals and income payments to the extent required by law. Premium taxes generally range from 0 to 3.5%, depending on the state. We will, at our sole discretion, determine when taxes relate to the contracts. We may, at our sole discretion, pay taxes when due and deduct that amount from the account balance at a later date. Payment at an earlier date does not waive any right we may have to deduct amounts at a later date. It is our current practice not to charge premium taxes until annuity payments begin. TRANSFER FEE We currently allow unlimited transfers without charge during the accumulation phase. However, we have reserved the right to limit the number of transfers to a maximum of 12 per year without charge and to charge a transfer fee of $25 for each transfer greater than 12 in any year. We are currently waiving the transfer fee, but reserve the right to charge it in the future. The transfer fee is deducted from the investment portfolio or the fixed account from which the transfer is made. However, if the entire interest in an account is being transferred, the transfer fee will be deducted from the amount which is transferred. 25 If the transfer is part of a pre-scheduled transfer program, it will not count in determining the transfer fee. INCOME TAXES We may make a deduction from the contract for any income taxes which we incur because of the contract. At the present time, we are not making any such deductions. INVESTMENT PORTFOLIO EXPENSES There are deductions from and expenses paid out of the assets of each investment portfolio, which are described in the fee table in this prospectus and the investment portfolio prospectuses. These deductions and expenses are not charges under the terms of the contract, but are represented in the share values of each investment portfolio. 5. ANNUITY PAYMENTS (THE INCOME PHASE) ANNUITY DATE Under the contract you can receive regular income payments (referred to as ANNUITY PAYMENTS). You can choose the month and year in which those payments begin. We call that date the ANNUITY DATE. Your annuity date must be the first day of a calendar month and must be at least 30 days after we issue the contract. Annuity payments must begin by the first day of the calendar month following the annuitant's 90th birthday or 10 years from the date we issue your contract, whichever is later (this requirement may be changed by us). When you purchase the contract, the annuity date will be the later of the first day of the calendar month after the annuitant's 90th birthday or ten (10) years from the date your contract was issued. You can change the annuity date at any time before the annuity date with 30 days prior notice to us. ANNUITY PAYMENTS You (unless another payee is named) will receive the annuity payments during the income phase. The annuitant is the natural person(s) whose life we look to in the determination of annuity payments. During the income phase, you have the same investment choices you had just before the start of the income phase. At the annuity date, you can choose whether payments will be: o fixed annuity payments, or o variable annuity payments, or o a combination of both. If you don't tell us otherwise, your annuity payments will be based on the investment allocations that were in place just before the start of the income phase. If you choose to have any portion of your annuity payments based on the investment portfolio(s), the dollar amount of your payment will vary and will depend upon 3 things: 1) the value of your contract in the investment portfolio(s) just before the start of the income phase, 2) the assumed investment return (AIR) (you select) used in the annuity table for the contract, and 3) the performance of the investment portfolios you selected. At the time you purchase the contract, you select the AIR, which must be acceptable to us. You can change the AIR with 30 days notice to us prior to the annuity date. If you do not select an AIR, we will use 3%. If the actual performance exceeds the AIR, your variable annuity payments will increase. Similarly, if the actual investment performance is less than the AIR, your variable annuity payments will decrease. Your variable annuity payment is based on ANNUITY UNITS. An annuity unit is an accounting device used to calculate the dollar amount of annuity payments. When selecting an AIR, you should keep in mind that a lower AIR will result in a lower initial variable annuity payment, but subsequent variable annuity payments will increase more rapidly or decline more slowly as changes occur in the investment experience of the investment portfolios. On the other hand, a higher AIR will result in a higher initial variable annuity payment than a lower AIR, but later variable annuity payments will rise more slowly or fall more rapidly. In the event of a transfer during the income phase from a variable annuity payment option to a fixed annuity payment option, this may result in a reduction in the amount of annuity payments. (You cannot, however, make transfers from a fixed annuity payment option to the investment portfolios.) 26 If you choose to have any portion of your annuity payments be a fixed annuity payment, the dollar amount of each fixed annuity payment will not change. Annuity payments are made monthly (or at any frequency permitted under the contract) unless you have less than $5,000 to apply toward an annuity option. In that case, we may provide your annuity payment in a single lump sum instead of annuity payments. Likewise, if your annuity payments would be or become less than $100 a month, we have the right to change the frequency of payments so that your annuity payments are at least $100. ANNUITY OPTIONS You can choose among income plans. We call those ANNUITY OPTIONS. We ask you to choose an annuity option when you purchase the contract. You can change it at any time before the annuity date with 30 days notice to us. If you do not choose an annuity option at the time you purchase the contract, Option 2 which provides a life annuity with 10 years of guaranteed annuity payments will automatically be applied. You can choose one of the following annuity options or any other annuity option acceptable to us. After annuity payments begin, you cannot change the annuity option. OPTION 1. LIFE ANNUITY. Under this option, we will make annuity payments so long as the annuitant is alive. We stop making annuity payments after the annuitant's death. It is possible under this option to receive only one annuity payment if the annuitant dies before the due date of the second payment or to receive only two annuity payments if the annuitant dies before the due date of the third payment, and so on. OPTION 2. LIFE ANNUITY WITH 10 YEARS OF ANNUITY PAYMENTS GUARANTEED. Under this option, we will make annuity payments so long as the annuitant is alive. If, when the annuitant dies, we have made annuity payments for less than ten years, we will then continue to make annuity payments for the rest of the 10 year period. When the annuitant dies, if you do not want to continue receiving annuity payments, you may elect to have the present value of the guaranteed variable annuity payments remaining (as of the date due proof of the annuitant's death is received at our Annuity Service Center) commuted at the AIR selected. We will require return of your contract and proof of death before we pay the commuted values. OPTION 3. JOINT AND LAST SURVIVOR ANNUITY. Under this option, we will make annuity payments so long as the annuitant and a second person (joint annuitant) are both alive. When either annuitant dies, we will continue to make annuity payments, so long as the survivor continues to live. We will stop making annuity payments after the last survivor's death. OPTION 4. JOINT AND LAST SURVIVOR ANNUITY WITH 10 YEARS OF ANNUITY PAYMENTS GUARANTEED. Under this option, we will make annuity payments so long as the annuitant and a second person (joint annuitant) are both alive. When either annuitant dies, we will continue to make annuity payments, so long as the survivor continues to live. If, at the last death of the annuitant and the joint annuitant, we have made annuity payments for less than ten years, we will then continue to make annuity payments for the rest of the 10 year period. However, if you do not want to continue receiving annuity payments at the last death of the annuitant and the joint annuitant, you may elect to have the present value of the guaranteed variable annuity payments remaining (as of the date due proof of the annuitant's death is received at our Annuity Service Center) commuted at the AIR selected. We will require return of your contract and proof of death before we pay the commuted values. OPTION 5. PAYMENTS FOR A DESIGNATED PERIOD. We currently offer an annuity option under which fixed or variable monthly annuity payments are made for a selected number of years as approved by us, currently not less than 10 years. This annuity option may be limited or withdrawn by us in our discretion. After commencement of this annuity payout, you may elect to receive the partial or full commuted value of the remaining guaranteed variable annuity payments, and the payments will be commuted at the AIR selected. There may be tax consequences resulting from the election of an annuity payment option containing a commutation feature (I.E., an annuity payment option that permits the withdrawal of a commuted value). (See "Federal Income Tax Status.") In addition to the annuity options described above, we may offer an additional payment option that would allow your beneficiary to take distribution of the account value over a period not extending beyond his or her life expectancy. Under this option, annual distributions would not be made in the form of an annuity, but would be calculated in a manner similar to the calculation of required minimum distributions from IRAs. (See "Federal Income Tax 27 Status.") We intend to make this payment option available to both tax qualified and non-tax qualified contracts. In the event that you purchased the contract as a tax qualified contract, you must take distribution of the account value in accordance with the minimum required distribution rules set forth in applicable tax law. (See "Federal Income Tax Status.") Under certain circumstances, you may satisfy those requirements by electing an annuity option. You may choose any death benefit available under the contract, but certain other contract provisions and programs will not be available. Upon your death, if annuity payments have already begun, the death benefit would be required to be distributed to your beneficiary at least as rapidly as under the method of distribution in effect at the time of your death. 6. ACCESS TO YOUR MONEY You (or in the case of a death benefit, your beneficiary) can have access to the money in your contract: (1) by making a withdrawal (either a partial or a complete withdrawal); (2) by electing to receive annuity payments; or (3) when a death benefit is paid to your beneficiary. Under most circumstances, withdrawals can only be made during the accumulation phase. You may establish a withdrawal plan under which you can receive substantially equal periodic payments in order to comply with the requirements of Sections 72(q) or (t) of the Code. Premature modification or termination of such payments may result in substantial penalty taxes. (See "Federal Income Tax Status.") When you make a complete withdrawal, you will receive the withdrawal value of the contract. The withdrawal value of the contract is the account value of the contract at the end of the business day when we receive a written request for a withdrawal: o less any applicable withdrawal charge; o less any applicable pro rata GWB charge; o less any premium or other tax; and o less any account fee. Unless you instruct us otherwise, any partial withdrawal will be made pro rata from the fixed account and the investment portfolio(s) you selected. Under most circumstances the amount of any partial withdrawal must be for at least $500, or your entire interest in the investment portfolio or fixed account. We require that after a partial withdrawal is made you keep at least $2,000 in the contract. If the withdrawal would result in the account value being less than $2,000 after a partial withdrawal, we will treat the withdrawal request as a request for a full withdrawal. We will pay the amount of any withdrawal from the Separate Account within seven days of when we receive the request in good order unless the suspension of payments or transfers provision is in effect. How to withdraw all or part of your account value: o You must submit a request to our Annuity Service Center. (See "Other Information - Requests and Elections.") o You must provide satisfactory evidence of terminal illness or confinement to a nursing home if you would like to have the withdrawal charge waived. (See "Expenses - Reduction or Elimination of the Withdrawal Charge.") o You must state in your request whether you would like to apply the proceeds to a payment option (otherwise you will receive the proceeds in a lump sum and may be taxed on them). o We have to receive your withdrawal request in our Annuity Service Center prior to the annuity date or owner's death. There are limits to the amount you can withdraw from certain qualified plans including Qualified and TSA plans. (See "Federal Income Tax Status.") INCOME TAXES, TAX PENALTIES AND CERTAIN RESTRICTIONS MAY APPLY TO ANY WITHDRAWAL YOU MAKE. SYSTEMATIC WITHDRAWAL PROGRAM You may elect the Systematic Withdrawal Program at any time. We do not assess a charge for this program. This program provides an automatic payment to you of up to 10% of your total purchase payments each year. You can receive payments monthly or quarterly provided that each payment must amount to at least $100 (unless we consent otherwise). We reserve the right to change the required minimum systematic withdrawal amount. If the New York Stock Exchange is closed on a day when the withdrawal is 28 to be made, we will process the withdrawal on the next business day. While the Systematic Withdrawal Program is in effect you can make additional withdrawals. However, such withdrawals plus the systematic withdrawals will be considered when determining the applicability of any withdrawal charge. (For a discussion of the withdrawal charge, see "Expenses" above.) INCOME TAXES, TAX PENALTIES AND CERTAIN RESTRICTIONS MAY APPLY TO SYSTEMATIC WITHDRAWALS. SUSPENSION OF PAYMENTS OR TRANSFERS We may be required to suspend or postpone payments for withdrawals or transfers for any period when: o the New York Stock Exchange is closed (other than customary weekend and holiday closings); o trading on the New York Stock Exchange is restricted; o an emergency exists, as determined by the Securities and Exchange Commission, as a result of which disposal of shares of the investment portfolios is not reasonably practicable or we cannot reasonably value the shares of the investment portfolios; or o during any other period when the Securities and Exchange Commission, by order, so permits for the protection of owners. We have reserved the right to defer payment for a withdrawal or transfer from the fixed account for the period permitted by law but not for more than six months. Federal laws designed to counter terrorism and prevent money laundering might, in certain circumstances, require us to block an owner's ability to make certain transactions and thereby refuse to accept any requests for transfers, withdrawals, surrenders, or death benefits until instructions are received from the appropriate regulator. We may also be required to provide additional information about you and your contract to government regulators. 7. LIVING BENEFITS GUARANTEED WITHDRAWAL BENEFIT We offer an optional Guaranteed Withdrawal Benefit rider ("GWB") for an additional charge. There are two versions of the GWB under this contract: o the GWB III and o the Lifetime Withdrawal Guarantee The version(s) available with your contract will depend on which version(s) have been approved in your state. If you purchase the GWB, you must elect one version at the time you purchase the contract, prior to age [86]. Once elected, the GWB cannot be terminated except as stated below in the description of each version of the GWB. Each version of the GWB guarantees that the entire amount of purchase payments you make during the period of time specified in your rider will be returned to you through a series of withdrawals which you may begin taking immediately or at a later time, provided withdrawals in any contract year do not exceed the maximum amount allowed. This means that, regardless of negative investment performance, you can take specified annual withdrawals until the entire amount of the purchase payments you made during the time period specified in your rider has been returned to you. Moreover, if you make your first withdrawal on or after the date you reach age 591/2, the Lifetime Withdrawal Guarantee Rider guarantees income for your life (and the life of your spouse, if the Joint Life version of the rider is elected), even after the entire amount of purchase payments has been returned. (See "Description of Lifetime Withdrawal Guarantee" below.) THE GWB GUARANTEE MAY BE REDUCED IF YOUR ANNUAL WITHDRAWALS ARE GREATER THAN THE MAXIMUM AMOUNT ALLOWED, CALLED THE ANNUAL BENEFIT PAYMENT, WHICH IS DESCRIBED IN MORE DETAIL BELOW. The GWB does not establish or guarantee an account value or minimum return for any investment portfolio. The Benefit Base (as described below) under the GWB III, the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount (both as described below) under the Lifetime Withdrawal Guarantee, cannot be taken as a lump sum. (However, if you cancel the Lifetime Withdrawal Guarantee rider after a waiting period of at least fifteen years, the Guaranteed Principal Adjustment will increase your account value to the purchase payments credited within the first 120 days of the date that we issue the contract, reduced proportionately for any withdrawals. See "Description of Lifetime Withdrawal Guarantee - Cancellation and Guaranteed Principal Adjustment" below.) Income taxes and penalties may apply to your withdrawals, and withdrawal charges may apply to withdrawals during the first contract year unless you take the necessary steps to elect such withdrawals under a Systematic Withdrawal Program. Withdrawal charges will also apply to withdrawals of purchase payments that exceed the free withdrawal 29 amount. (See "Expenses - Withdrawal Charge.") The withdrawal charge is deducted from the Benefit Base or Remaining Guaranteed Withdrawal Amount. IF IN ANY CONTRACT YEAR YOU TAKE CUMULATIVE WITHDRAWALS THAT EXCEED THE ANNUAL BENEFIT PAYMENT, THE TOTAL PAYMENTS THAT THE GWB GUARANTEES THAT YOU OR YOUR BENEFICIARY WILL RECEIVE FROM THE CONTRACT OVER TIME MAY BE LESS THAN THE INITIAL GUARANTEED WITHDRAWAL AMOUNT (TOTAL GUARANTEED WITHDRAWAL AMOUNT FOR LIFETIME WITHDRAWAL GUARANTEE). THIS REDUCTION MAY BE SIGNIFICANT AND MEANS THAT RETURN OF YOUR PREMIUM PAYMENTS MAY BE LOST. THE GWB RIDER CHARGE WILL CONTINUE TO BE DEDUCTED AND CALCULATED BASED ON THE GUARANTEED WITHDRAWAL AMOUNT (TOTAL GUARANTEED WITHDRAWAL AMOUNT FOR LIFETIME WITHDRAWAL GUARANTEE) UNTIL TERMINATION OF THE CONTRACT. o If the GWB III rider is in effect, the Guaranteed Withdrawal Amount will not decrease due to withdrawals. o If the Lifetime Withdrawal Guarantee is in effect, the Total Guaranteed Withdrawal Amount will not decrease due to withdrawals that do not exceed the maximum amount allowed in any contract year. Withdrawals that exceed the maximum amount allowed in any contract year will decrease the Total Guaranteed Withdrawal Amount. IF THE LIFETIME WITHDRAWAL GUARANTEE IS IN EFFECT, WE WILL CONTINUE TO ASSESS THE GWB RIDER CHARGE EVEN IN THE CASE WHERE YOUR REMAINING GUARANTEED WITHDRAWAL AMOUNT, AS DESCRIBED BELOW, EQUALS ZERO. HOWEVER, IF THE GWB III RIDER IS IN EFFECT, WE WILL NOT CONTINUE TO ASSESS THE GWB RIDER CHARGE IF YOUR BENEFIT BASE, AS DESCRIBED BELOW, EQUALS ZERO. The tax treatment of withdrawals under the GWB rider is uncertain. It is conceivable that the amount of potential gain could be determined based on the Benefit Base (for GWB III) or Remaining Guranteed Withdrawal Amount (for Lifetime Withdrawal Guarantee) at the time of the withdrawal, if the Benefit Base (for GWB III) or Remaining Guranteed Withdrawal Amount (for Lifetime Withdrawal Guarantee) is greater than the account value (prior to withdrawal charges). 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. DESCRIPTION OF GWB III In marketing or other materials, we may refer to the GWB III as the "GWB" or the "Guaranteed Withdrawal Benefit." BENEFIT BASE. At issue, the Guaranteed Withdrawal Amount is the maximum total amount of money that you are guaranteed to receive over time under the GWB rider. At issue, the Guaranteed Withdrawal Amount and the Benefit Base are both equal to your initial purchase payment. At any subsequent point in time, the Benefit Base is the remaining amount of money that you are guaranteed to receive through annual withdrawals under the GWB rider. Your initial Benefit Base is set at an amount equal to your initial purchase payment. Your Benefit Base will change with each purchase payment made. Also, each withdrawal will reduce your Benefit Base. If negative investment performance reduces your account value below the Benefit Base, you are still guaranteed to be able to withdraw the entire amount of your Benefit Base. The Benefit Base is equal to: o Your initial purchase payment; o Increased by each subsequent purchase payment made; o Less the amount of any withdrawals; provided, however, that if a withdrawal from your contract is not payable to the contract owner or contract owner's bank account (or to the annuitant or annuitant's bank account, if the owner is a non-natural person), or results in cumulative withdrawals (including any applicable withdrawal charge) for the current contract year exceeding the Annual Benefit Payment, and the resulting Benefit Base exceeds the account value, an additional reduction in the Benefit Base will be made. This additional reduction will be equal to the difference between the Benefit Base after the decrease for the withdrawal and your account value after the decrease for the withdrawal. ANNUAL BENEFIT PAYMENT. The Annual Benefit Payment is the maximum amount of your Benefit Base you may withdraw each contract year without adversely impacting the amount guaranteed to be available to you through withdrawals over time. The initial Annual Benefit Payment is equal to the initial Benefit Base multiplied by the GWB WITHDRAWAL RATE (5%). The Annual Benefit Payment is 30 reset after each subsequent purchase payment to the greater of: (1) the Annual Benefit Payment before the subsequent purchase payment and (2) the GWB Withdrawal Rate multiplied by the Benefit Base after the subsequent purchase payment. You can continue to receive annual withdrawals in an amount equal to or less than your Annual Benefit Payment until your Benefit Base is depleted. It is important that you carefully manage your annual withdrawals. To retain the GWB guarantees, your annual withdrawals (including any applicable withdrawal charge) cannot exceed the Annual Benefit Payment each contract year. If a withdrawal from your contract does result in annual withdrawals (including any applicable withdrawal charge) during a contract year exceeding the Annual Benefit Payment or is not payable to the contract owner or contract owner's bank account (or to the annuitant or annuitant's bank account, if the owner is a non-natural person), the Annual Benefit Payment will be recalculated and may be reduced. The new Annual Benefit Payment will equal the lower of: (1) the Annual Benefit Payment before the withdrawal and (2) your account value after the decrease for the withdrawal (including any applicable withdrawal charge) multiplied by the GWB Withdrawal Rate. This reduction may be significant. You can always take annual withdrawals less than the Annual Benefit Payment. However, if you choose to receive only a part of, or none of, your Annual Benefit Payment in any given contract year, your Annual Benefit Payment is not cumulative and your Benefit Base and Annual Benefit Payment will not increase. For example, if your Annual Benefit Payment is 5% of your Benefit Base and you withdraw 3% one year, you cannot then withdraw 7% the next year without exceeding your Annual Benefit Payment. For IRAs and other contracts subject to Section 401(a)(9) of the Internal Revenue Code, you may be required to take withdrawals to fulfill minimum distribution requirements generally beginning at age 701/2. A beneficiary under a decedent's IRA (or where otherwise offered, under any other contract that is being "continued" by a beneficiary after the death of the owner or after the death of the annuitant in certain cases) may be required to take such withdrawals which must commence, in accordance with tax regulations, by the end of the calendar year following the year of the owner's death. These required distributions may be larger than the Annual Benefit Payment. After the first contract year, we will increase your Annual Benefit Payment to equal your required minimum distribution amount for that year, if such amount is greater than your Annual Benefit Payment. YOU MUST BE ENROLLED IN THE AUTOMATED REQUIRED MINIMUM DISTRIBUTION PROGRAM TO QUALIFY FOR THIS INCREASE IN ANNUAL BENEFIT PAYMENT. THE FREQUENCY OF YOUR WITHDRAWALS MUST BE ANNUAL. THE AUTOMATED REQUIRED MINIMUM DISTRIBUTION PROGRAM IS BASED ON INFORMATION RELATING TO THIS CONTRACT ONLY. To enroll in the Automated Required Minimum Distribution program, please contact our Annuity Service Center. GUARANTEED WITHDRAWAL AMOUNT. We assess the GWB rider charge as a percentage of the GUARANTEED WITHDRAWAL AMOUNT, which is initially set at an amount equal to your initial purchase payment. The Guaranteed Withdrawal Amount may increase with additional purchase payments. In this case, the Guaranteed Withdrawal Amount will be reset equal to the greater of: (1) the Guaranteed Withdrawal Amount before the purchase payment and (2) the Benefit Base after the purchase payment. Withdrawals do not decrease the Guaranteed Withdrawal Amount. If your Guaranteed Withdrawal Amount increases, the amount of the GWB rider charge we deduct will increase since the charge is a percentage of your Guaranteed Withdrawal Amount. WITHDRAWAL CHARGE. We will apply a withdrawal charge to withdrawals from purchase payments of up to 8% of purchase payments taken in the first seven years following receipt of the applicable purchase payment. TAXES. Withdrawals of taxable amounts will be subject to ordinary income tax and, if made prior to age 591/2, a 10% federal tax penalty may apply. CANCELLATION. You (or your spouse, upon spousal continuation of the contract) may elect to cancel the GWB rider in accordance with our Administrative Procedures (currently we require you to submit your cancellation request in writing to our Annuity Service Center) during the 90-day period following the 5th contract anniversary. Such cancellation will take effect upon our receipt of the request. Otherwise, the rider may not be canceled. If the GWB rider is canceled, it may not be re-elected. TERMINATION. The GWB rider will terminate upon the earliest business day we: (1) process your request for a total withdrawal of your account value; 31 (2) process your request to apply your account value to an annuity option; (3) determine that your account value is not sufficient to pay the charge for the GWB rider (whatever account value is available will be applied to pay the annual GWB rider charge); (4) receive due proof of the owner's death and a beneficiary claim form, except where the beneficiary or joint owner is the spouse of the owner and the spouse elects to continue the contract and the spouse is less than 85 years old, or the annuitant dies if the owner is a non-natural person; note: (1) if the spouse elects to continue the contract (so long as the spouse is less than 85 years old and the GWB rider is in effect at the time of continuation), all terms and conditions of the GWB rider will apply to the surviving spouse; and (2) we will not terminate the rider until we receive both due proof of the owner's death and a beneficiary claim form (from certain beneficiaries, such as a trust, we may require additional information, such as the trust document), which means we will continue to deduct the GWB rider charge until we receive this information; (5) process a change in owners, joint owners, or annuitants (if the owner is a non-natural person); (6) process the termination of your contract; or (7) process your request for cancellation of the GWB rider. ADDITIONAL INFORMATION. If you take a full withdrawal of your account value and the withdrawal does not exceed the Annual Benefit Payment, or your account value is reduced to zero because you do not have a sufficient account value to pay the GWB rider charge and your Benefit Base after the withdrawal is more than zero, we will commence making payments to the owner or joint owner (or the annuitant if the owner is a non-natural person) on a monthly basis (or any mutually agreed upon frequency, but not less frequently than annually) until the Benefit Base is exhausted. The total annual payments cannot exceed the Annual Benefit Payment, except to the extent required under the Internal Revenue Code. If you or the joint owner (or the annuitant if the owner is a non-natural person) dies while these payments are being made, your beneficiary will receive these payments. No other death benefit will be paid. If you cancel the rider or apply your entire account value to an annuity option, we will not deduct the GWB rider charge from your account value after we deduct the charge on the effective date of the cancellation or the application of your account value to an annuity option. We will not pay any benefits as a result of the rider on or after the effective date of the cancellation or the application of your account value to an annuity option. If the owner or joint owner (or the annuitant if the owner is a non-natural person) should die while the GWB rider is in effect, your beneficiary may elect to receive the Benefit Base as a death benefit instead of the standard death benefit or the Annual Step-Up death benefit, if that benefit had been purchased by the owner(s). Otherwise, the provisions of those death benefits will determine the amount of the death benefit and no benefit shall be payable under the GWB rider. If the beneficiary elects the Benefit Base as a death benefit, we will pay the remaining Benefit Base on a monthly basis (or any mutually agreed upon frequency, but no less frequently than annually) until the Benefit Base is exhausted. Except as may be required by the Internal Revenue Code, an annual payment will not exceed the Annual Benefit Payment. If your beneficiary dies while such payments are made, we will continue making the payments to the beneficiary's estate unless we have agreed to another payee in writing. If the contract is a nonqualified contract, any death benefit must be paid out over a time period and in a manner that satisfies Section 72(s) of the Internal Revenue Code. If the owner (or the annuitant, where the owner is not a natural person) dies prior to the "annuity starting date" (as defined under the Internal Revenue Code and regulations thereunder), the period over which the Benefit Base is paid as a death benefit cannot exceed the remaining life expectancy of the payee under the appropriate IRS tables. For purposes of the preceding sentence, if the payee is a non-natural person, the Benefit Base must be paid out within 5 years from the date of death. Payments under this death benefit must begin within 12 months following the date of death. We reserve the right to accelerate any payment that is less than $500 or to comply with requirements under the Internal Revenue Code (including minimum distribution requirements for IRAs and other contracts subject to Section 401(a)(9) of the Internal Revenue Code and non-qualified contracts subject to Section 72(s)). If you terminate the GWB rider because: (1) you make a total withdrawal of your account value; (2) your account value is insufficient to pay the GWB rider charge; or (3) the contract owner or joint owner (or the annuitant if the owner is a non-natural person) dies, except where the beneficiary or joint owner is the spouse of the owner and 32 the spouse elects to continue the contract and the spouse is less than 85 years old, you may not make additional purchase payments under the contract. (See Appendix C for examples of the GWB.) DESCRIPTION OF THE LIFETIME WITHDRAWAL GUARANTEE In considering whether to purchase the Lifetime Withdrawal Guarantee rider, you must consider your desire for protection and the cost of the rider with the possibility had you not purchased the rider, your account value may be higher. In considering the benefit of lifetime withdrawals, you should consider the impact of inflation. Even relatively low levels of inflation may have a significant effect on purchasing power. The Automatic Annual Step-Up, as described below, may provide protection against inflation, if and when there are strong investment returns. As with any GWB rider, the Lifetime Withdrawal Guarantee rider, however, does not assure that you will receive strong, let alone any, return on your investments. TOTAL GUARANTEED WITHDRAWAL AMOUNT. The TOTAL GUARANTEED WITHDRAWAL AMOUNT is the minimum amount that you are guaranteed to receive over time while the Lifetime Withdrawal Guarantee rider is in effect. We assess the Lifetime Withdrawal Guarantee rider charge as a percentage of the Total Guaranteed Withdrawal Amount. The initial Total Guaranteed Withdrawal Amount is equal to your initial purchase payment. The Total Guaranteed Withdrawal Amount is increased (up to a maximum of $5,000,000) by additional purchase payments. Withdrawals that do not exceed the Annual Benefit Payment (see "Annual Benefit Payment" below) do not reduce the Total Guaranteed Withdrawal Amount. If, however, a withdrawal results in cumulative withdrawals for the current contract year that exceed the Annual Benefit Payment, the Total Guaranteed Withdrawal Amount will be reduced by an amount equal to the difference between the Total Guaranteed Withdrawal Amount after the withdrawal and the account value after the withdrawal (if such account value is lower than the Total Guaranteed Withdrawal Amount before the withdrawal). 5% COMPOUNDING INCOME AMOUNT. On each contract anniversary until the earlier of: (a) the date of the first withdrawal from the contract or (b) the tenth contract anniversary, the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount are each increased by an amount equal to 5% multiplied by the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount before such increase (up to a maximum of $5,000,000). The Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount may also be increased by the Automatic Annual Step-Up, if that would result in a higher Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount. REMAINING GUARANTEED WITHDRAWAL AMOUNT. The REMAINING GUARANTEED WITHDRAWAL AMOUNT is the remaining amount guaranteed to be received over time. The Remaining Guaranteed Withdrawal Amount is increased (up to a maximum of $5,000,000) by additional purchase payments, and decreased by the amount of each withdrawal (including any applicable withdrawal charges) regardless of whether or not the withdrawal exceeds the Annual Benefit Payment. The Remaining Guaranteed Withdrawal Amount is also increased by the 5% Compounding Income Amount, as described above. If a withdrawal results in cumulative withdrawals for the current contract year that exceed the Annual Benefit Payment, the Remaining Guaranteed Withdrawal Amount will also be reduced by an additional amount equal to the difference between the Remaining Guaranteed Withdrawal Amount after the withdrawal and the account value after the withdrawal (if such account value is lower than the Remaining Guaranteed Withdrawal Amount). o If you take your first withdrawal before the date you reach age 591/2, we will continue to pay the Annual Benefit Payment each year until the Remaining Guaranteed Withdrawal Amount is depleted, even if your account value declines to zero. o If you take your first withdrawal on or after the date you reach age 591/2, we will continue to pay the Annual Benefit Payment each year for the rest of your life (and the life of your spouse, if you have elected the Joint Life version of the Lifetime Withdrawal Guarantee rider and your spouse elects to continue the contract and is at least 591/2 at continuation), even if your Remaining Guaranteed Withdrawal Amount and/or account value declines to zero. You should carefully consider when to begin taking withdrawals if you have elected the Lifetime Withdrawal Guarantee. If you begin taking withdrawals too soon, you may limit the value of the Lifetime Withdrawal Guarantee. For example, your Total Guaranteed Withdrawal Amount is no longer increased by the 5% Compounding Income 33 Amount once you make your first withdrawal. If you delay taking withdrawals for too long, you may limit the number of years available for you to take withdrawals in the future (due to life expectancy) and you may be paying for a benefit you are not using. At any time during the accumulation phase, you can elect to annuitize under current annuity rates in lieu of continuing the Lifetime Withdrawal Guarantee rider. This may provide higher income amounts and/or different tax treatment than the payments received under the Lifetime Withdrawal Guarantee rider. ANNUAL BENEFIT PAYMENT. The initial ANNUAL BENEFIT PAYMENT is equal to the Total Guaranteed Withdrawal Amount immediately prior to the first withdrawal multiplied by the 5% Withdrawal Rate. If the Total Guaranteed Withdrawal Amount is later recalculated (for example, because of additional purchase payments, the 5% Compounding Income Amount, the Automatic Annual Step-Up, or withdrawals greater than the Annual Benefit Payment), the Annual Benefit Payment is reset equal to the new Total Guaranteed Withdrawal Amount multiplied by the 5% Withdrawal Rate. It is important that you carefully manage your annual withdrawals. To ensure that you retain the full guarantees of this rider, your annual withdrawals cannot exceed the Annual Benefit Payment each contract year. If a withdrawal charge does apply, the charge is not included in the amount withdrawn for the purpose of calculating whether annual withdrawals during a contract year exceed the Annual Benefit Payment. If a withdrawal from your contract does result in annual withdrawals during a contract year exceeding the Annual Benefit Payment, the Total Guaranteed Withdrawal Amount will be recalculated and the Annual Benefit Payment will be reduced to the new Total Guaranteed Withdrawal Amount multiplied by the 5% Withdrawal Rate. These reductions in the Total Guaranteed Withdrawal Amount and Annual Benefit Payment may be significant. You are still eligible to receive either lifetime payments or the remainder of the Remaining Guaranteed Withdrawal Amount so long as the excessive withdrawal did not cause your account value to drop to zero. You can always take annual withdrawals less than the Annual Benefit Payment. However, if you choose to receive only a part of your Annual Benefit Payment in any given contract year, your Annual Benefit Payment is not cumulative and your Remaining Guaranteed Withdrawal Amount and Annual Benefit Payment will not increase. For example, since your Annual Benefit Payment is 5% of your Total Guaranteed Withdrawal Amount, you cannot withdraw 3% in one year and then withdraw 7% the next year without exceeding your Annual Benefit Payment in the second year. AUTOMATIC ANNUAL STEP-UP. On each contract anniversary prior to the owner's 86th birthday, an Automatic Annual Step-Up will occur, provided that the account value exceeds the Total Guaranteed Withdrawal Amount immediately before the Step-Up (and provided that you have not chosen to decline the Step-Up as described below). The Automatic Annual Step-Up will: o reset the Total Guaranteed Withdrawal Amount and the Remaining Guaranteed Withdrawal Amount to the account value on the date of the Step-Up, up to a maximum of $5,000,000; o reset the Annual Benefit Payment equal to 5% of the Total Guaranteed Withdrawal Amount after the Step-Up; and o reset the Lifetime Withdrawal Guarantee rider charge to the charge applicable to contract purchases at the time of the Step-Up, up to a maximum of 0.95% (Single Life version) or 1.40% (Joint Life version). In the event that the charge applicable to contract purchases at the time of the Step-Up is higher than your current Lifetime Withdrawal Guarantee rider charge, you will be notified in writing a minimum of 30 days in advance of the applicable contract anniversary and be informed that you may choose to decline the Automatic Annual Step-Up. If you choose to decline the Automatic Annual Step-Up, you must notify us in accordance with our Administrative Procedures (currently we require you to submit your request in writing to our Annuity Service Center no less than seven calendar days prior to the applicable contract anniversary). Once you notify us of your decision to decline the Automatic Annual Step-Up, you will no longer be eligible for future Automatic Annual Step-Ups until you notify us in writing to our Annuity 34 Service Center that you wish to reinstate the Step-Ups. This reinstatement will take effect at the next contract anniversary after we receive your request for reinstatement. Please note that the Automatic Annual Step-Up may be of limited benefit if you intend to make purchase payments that would cause your account value to approach $5,000,000, since the Total Guaranteed Withdrawal Amount and Remaining Guaranteed Withdrawal Amount cannot exceed $5,000,000. REQUIRED MINIMUM DISTRIBUTIONS. For IRAs and other contracts subject to Section 401(a)(9) of the Internal Revenue Code, you may be required to take withdrawals to fulfill minimum distribution requirements generally beginning at age 701/2. These required distributions may be larger than your Annual Benefit Payment. After the first contract year, we will increase your Annual Benefit Payment to equal your required minimum distribution amount for that year, if such amounts are greater than your Annual Benefit Payment. YOU MUST BE ENROLLED IN THE AUTOMATED REQUIRED MINIMUM DISTRIBUTION PROGRAM TO QUALIFY FOR THIS INCREASE IN THE ANNUAL BENEFIT PAYMENT. THE FREQUENCY OF YOUR WITHDRAWALS MUST BE ANNUAL. THE AUTOMATED REQUIRED MINIMUM DISTRIBUTION PROGRAM IS BASED ON INFORMATION RELATING TO THIS CONTRACT ONLY. To enroll in the Automated Required Minimum Distribution program, please contact our Annuity Service Center. INVESTMENT ALLOCATION RESTRICTIONS. If you elect the Lifetime Withdrawal Guarantee rider, you are limited to allocating your purchase payments and account value among the fixed account and the following investment portfolios: (1) Legg Mason Partners Variable Money Market Portfolio (2) Legg Mason Partners Variable Lifestyle Balanced Portfolio (3) Legg Mason Partners Variable Lifestyle Growth Portfolio (4) Pioneer Strategic Income Portfolio (5) Western Asset Management U.S. Government Portfolio JOINT LIFE VERSION. A Joint Life version of the Lifetime Withdrawal Guarantee rider is available for a charge of 0.70% (which may increase upon an Automatic Annual Step-Up to a maximum of 1.40%). Like the Single Life version of the Lifetime Withdrawal Guarantee rider, the Joint Life version must be elected at the time you purchase the contract, and the owner (or oldest joint owner) must be age 80 or younger. Under the Joint Life version, when the owner of the contract dies (or when the first joint owner dies), the Lifetime Withdrawal Guarantee rider will automatically remain in effect only if the spouse is the primary beneficiary and elects to continue the contract under the spousal continuation provisions. (See "Death Benefit - Spousal Continuation.") If the spouse is younger than age 591/2 when he or she elects to continue the contract, the spouse will receive the Annual Benefit Payment each year until the Remaining Guaranteed Withdrawal Amount is depleted. If the spouse is age 591/2 or older when he or she elects to continue the contract, the spouse will receive the Annual Benefit Payment each year for the remainder of his or her life. CANCELLATION AND GUARANTEED PRINCIPAL ADJUSTMENT. You may elect to cancel the Lifetime Withdrawal Guarantee rider on the contract anniversary every five contract years for the first 15 contract years and annually thereafter. We must receive your cancellation request within 30 days following the eligible contract anniversary in accordance with our Administrative Procedures (currently we require you to submit your request in writing to our Annuity Service Center). The cancellation will take effect upon our receipt of your request. If cancelled, the Lifetime Withdrawal Guarantee rider will terminate, we will no longer deduct the Lifetime Withdrawal Guarantee rider charge, and the investment allocation restrictions described above will no longer apply. The variable annuity contract, however, will continue. If you cancel the Lifetime Withdrawal Guarantee rider on the fifteenth contract anniversary or any eligible contract anniversary thereafter, we will add a GUARANTEED PRINCIPAL ADJUSTMENT to your account value. The Guaranteed Principal Adjustment is intended to restore your initial investment in the contract in the case of poor investment performance. The Guaranteed Principal Adjustment is equal to (a) - (b) where: (a) is purchase payments credited within 120 days of the date that we issued the contract, reduced proportionately by the percentage reduction in account value attributable to any partial withdrawals taken (including any applicable withdrawal charges) and (b) is the account value on the date of cancellation. 35 The Guaranteed Principal Adjustment will be added to each applicable investment portfolio in the ratio the portion of the account value in such investment portfolio bears to the total account value in all investment portfolios. The Guaranteed Principal Adjustment will never be less than zero. Only purchase payments made during the first 120 days that you hold the contract are taken into consideration in determining the Guaranteed Principal Adjustment. Contract owners who anticipate making purchase payments after 120 days should understand that such payments will not increase the Guaranteed Principal Adjustment. Purchase payments made after 120 days are added to your account value and impact whether or not a benefit is due. Therefore, the Lifetime Withdrawal Guarantee may not be appropriate for you if you intend to make additional purchase payments after the 120-day period and are purchasing the Lifetime Withdrawal Guarantee for its Guaranteed Principal Adjustment feature. TERMINATION OF THE LIFETIME WITHDRAWAL GUARANTEE RIDER. The Lifetime Withdrawal Guarantee rider will terminate upon the earliest of: (1) the date of a full withdrawal of the account value (a pro rata portion of the rider charge will be assessed); (2) the date all of the account value is applied to an annuity option (a pro rata portion of the rider charge will be assessed); (3) the date there are insufficient funds to deduct the Lifetime Withdrawal Guarantee rider charge from the account value; (4) death of the owner or joint owner (or the annuitant if the owner is a non-natural person), except where the contract is issued under the Joint Life version of the Lifetime Withdrawal Guarantee, the primary beneficiary is the spouse, and the spouse elects to continue the contract under the spousal continuation provisions of the contract; (5) change of the owner or joint owner for any reason (a pro rata portion of the rider charge will be assessed), subject to our administrative procedures; (6) the effective date of the cancellation of the rider; or (7) termination of the contract to which the rider is attached (a pro rata portion of the rider charge will be assessed, except for a termination due to death). Once the rider is terminated, the Lifetime Withdrawal Guarantee rider charge will no longer be deducted and the Lifetime Withdrawal Guarantee investment allocation restrictions will no longer apply. ADDITIONAL INFORMATION. The Lifetime Withdrawal Guarantee rider may affect the death benefit available under your contract. If the owner or joint owner should die while the Lifetime Withdrawal Guarantee rider is in effect, an additional death benefit amount will be calculated under the Lifetime Withdrawal Guarantee rider which can be taken in a lump sum. The Lifetime Withdrawal Guarantee death benefit amount that may be taken as a lump sum will be equal to total purchase payments less any partial withdrawals. If this death benefit amount is greater than the death benefit provided by your contract, and if withdrawals in each contract year did not exceed the Annual Benefit Payment, then this death benefit amount will be paid instead of the death benefit provided by the contract. All other provisions of your contract's death benefit will apply. Alternatively, if the owner or joint owner should die while the Lifetime Withdrawal Guarantee rider is in effect, the beneficiary may elect to receive the Remaining Guaranteed Withdrawal Amount as a death benefit in which case we will pay the Remaining Guaranteed Withdrawal Amount on a monthly basis (or any mutually agreed upon frequency, but no less frequently than annually) until the Remaining Guaranteed Withdrawal Amount is exhausted. This death benefit will be paid instead of the applicable contractual death benefit (the standard death benefit or the additional death benefit amount calculated under the Lifetime Withdrawal Guarantee as described above or the Annual Step-Up death benefit, if that benefit had been purchased by the owner(s)). Otherwise, the provisions of those contractual death benefits will determine the amount of the death benefit. Except as may be required by the Internal Revenue Code, an annual payment will not exceed the Annual Benefit Payment. If your beneficiary dies while such payments are made, we will continue making the payments to the beneficiary's estate unless we have agreed to another payee in writing. We reserve the right to accelerate any payment 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 36 nonqualified contracts subject to Section 72(s)). If you terminate the Lifetime Withdrawal Guarantee rider because (1) you make a total withdrawal of your account value; (2) your account value is insufficient to pay the Lifetime Withdrawal Guarantee rider charge; or (3) the contract owner dies, except where the beneficiary or joint owner is the spouse of the owner and the spouse elects to continue the contract, you may not make additional purchase payments under the contract. (See Appendix C for examples of the GWB.) 8. PERFORMANCE We periodically advertise subaccount performance relating to the investment portfolios. We will calculate performance by determining the percentage change in the value of an accumulation unit by dividing the increase (decrease) for that unit by the value of the accumulation unit at the beginning of the period. This performance number reflects the deduction of the Separate Account product charges (including death benefit rider charges) and the investment portfolio expenses. It does not reflect the deduction of any applicable account fee, withdrawal charge and GWB rider charge. The deduction of these charges would reduce the percentage increase or make greater any percentage decrease. Any advertisement will also include total return figures which reflect the deduction of the Separate Account product charges (including death benefit rider charges), account fee, withdrawal charges or GWB rider charge and the investment portfolio expenses. For periods starting prior to the date the contract was first offered, the performance will be based on the historical performance of the corresponding investment portfolios for the periods commencing from the date on which the particular investment portfolio was made available through the Separate Account. In addition, the performance for the investment portfolios may be shown for the period commencing from the inception date of the investment portfolios. These figures should not be interpreted to reflect actual historical performance of the Separate Account. We may, from time to time, include in our advertising and sales materials performance information for funds or investment accounts related to the investment portfolios and/or their investment advisers or subadvisers. Such related performance information also may reflect the deduction of certain contract charges. We may also include in our advertising and sales materials tax deferred compounding charts and other hypothetical illustrations, which may include comparisons of currently taxable and tax deferred investment programs, based on selected tax brackets. We may advertise the guaranteed withdrawal benefit riders using illustrations showing how the benefit works with historical performance of specific investment portfolios or with a hypothetical rate of return (which rate will not exceed 12%) or a combination of historical and hypothetical returns. These illustrations will reflect the deduction of all applicable charges including the portfolio expenses of the underlying investment portfolios. You should know that for any performance we illustrate, future performance will vary and results shown are not necessarily representative of future results. 9. DEATH BENEFIT UPON YOUR DEATH If you die during the accumulation phase, we will pay a death benefit to your beneficiary(ies). The Prinicipal Protection is the standard death benefit for your contract. At the time you purchase the contract, you can select the optional Annual Step-Up death benefit and the Additional Death Benefit - Earnings Preservation Benefit. If you are 80 years old at the effective date of your contract, you are not eligible to select these optional death benefit riders. The death benefits are described below. Check your contract and riders for the specific provisions applicable. One or more of these optional death benefits may not be available in your state (check with your registered representative regarding availability). The death benefit is determined as of the end of the business day on which we receive both due proof of death and an election for the payment method. Where there are multiple beneficiaries, the death benefit will only be determined as of the time the first beneficiary submits the necessary documentation in good order. If you have a joint owner, the death benefit will be paid when the first owner dies. Upon the death of either owner, the surviving joint owner will be the primary beneficiary. Any other beneficiary designation will be treated as a contingent beneficiary, unless instructed otherwise. If a non-natural person owns the contract, the annuitant will be deemed to be the owner in determining the death 37 benefit. If there are joint owners, the age of the oldest owner will be used to determine the death benefit amount. STANDARD DEATH BENEFIT - PRINCIPAL PROTECTION The death benefit will be the greater of: (1) the account value; or (2) total purchase payments, reduced proportionately by the percentage reduction in account value attributable to each partial withdrawal. If the owner is a natural person and the owner is changed to someone other than a spouse, the death benefit amount will be determined as defined above; however, subsection (2) will be changed to provide as follows: "the account value as of the effective date of the change of owner, increased by purchase payments received after the date of the change of owner, reduced proportionately by the percentage reduction in account value attributable to each partial withdrawal made after such date." In the event that a beneficiary who is the spouse of the owner elects to continue the contract in his or her name after the owner dies, the death benefit amount will be determined in accordance with (1) or (2) above. OPTIONAL DEATH BENEFIT - ANNUAL STEP-UP If you select the Annual Step-Up death benefit rider, the death benefit will be the greatest of: (1) the account value; or (2) total purchase payments, reduced proportionately by the percentage reduction in account value attributable to each partial withdrawal; or (3) the highest anniversary value, as defined below. On the date we issue your contract, the highest anniversary value is equal to your initial purchase payment. Thereafter, the highest anniversary value (as recalculated) will be increased by subsequent purchase payments and reduced proportionately by the percentage reduction in account value attributable to each subsequent partial withdrawal. On each contract anniversary prior to your 81st birthday, the highest anniversary value will be recalculated and set equal to the greater of the highest anniversary value before the recalculation or the account value on the date of the recalculation. If the owner is a natural person and the owner is changed to someone other than a spouse, the death benefit is equal to the greatest of (1), (2) or (3); however, for purposes of calculating (2) and (3) above: o Subsection (2) is changed to provide: "The account value as of the effective date of the change of owner, increased by purchase payments received after the date of change of owner, and reduced proportionately by the percentage reduction in account value attributable to each partial withdrawal made after such date"; and o for subsection (3), the highest anniversary value will be recalculated to equal your account value as of the effective date of the change of owner. In the event that a beneficiary who is the spouse of the owner elects to continue the contract in his or her name after the owner dies, the death benefit is equal to the greatest of (1), (2) or (3). ADDITIONAL DEATH BENEFIT - EARNINGS PRESERVATION BENEFIT The Additional Death Benefit - Earnings Preservation Benefit pays an additional death benefit that is intended to help pay part of the income taxes due at the time of death of the owner or joint owner. The benefit is only available up through age 79 (on the contract issue date). In certain situations, this benefit may not be available for qualified plans (check with your registered representative for details). Before the contract anniversary immediately prior to your 81st birthday, the additional death benefit is equal to the "benefit percentage" (determined in accordance with the table below) times the result of (a) - (b), where: (a) is the death benefit under your contract; and (b) is total purchase payments not withdrawn. For purposes of calculating this value, partial withdrawals are first applied against earnings in the contract, and then against purchase payments not withdrawn. On or after the contract anniversary immediately prior to your 81st birthday, the additional death benefit is equal to the "benefit percentage" (determined in accordance with the table below) times the result of (a) - (b), where: (a) is the death benefit on the contract anniversary immediately prior to your 81st birthday, increased by subsequent purchase payments and reduced proportionately by the percentage reduction in account value attributable to each subsequent partial withdrawal; and (b) is total purchase payments not withdrawn. For purposes of calculating this value, partial withdrawals are first applied against earnings in the contract, and then against purchase payments not withdrawn. 38
Benefit Percentage Issue Age Percentage ----------------------------- ----------- Ages 69 or younger 40% Ages 70-79 25% Age 80 0%
If the owner is a natural person and the owner is changed to someone other than a spouse, the additional death benefit is as defined above; however, for the purposes of calculating subsection (b) above "total purchase payments not withdrawn" will be reset to equal the account value as of the effective date of the owner change, and purchase payments received and partial withdrawals taken prior to the change of owner will not be taken into account. In the event that a beneficiary who is the spouse of the owner elects to continue the contract in his or her name after the owner dies, the additional death benefit will be determined and payable upon receipt of due proof of death of the first spousal beneficiary. Alternatively, the spousal beneficiary may elect to have the additional death benefit determined and added to the account value upon the election, in which case the additional death benefit rider will terminate (and the corresponding death benefit rider charge will also terminate). GENERAL DEATH BENEFIT PROVISIONS The death benefit amount remains in the Separate Account until distribution begins. From the time the death benefit is determined until complete distribution is made, any amount in the Separate Account will continue to be subject to investment risk. This risk is borne by the beneficiary. Please check with your registered representative regarding the availability of the following in your state. If the beneficiary under a tax qualified contract is the annuitant's spouse, the tax law generally allows distributions to begin by the year in which the annuitant would have reached 701/2 (which may be more or less than five years after the annuitant's death). A beneficiary must elect the death benefit to be paid under one of the payment options (unless the owner has previously made the election). The entire death benefit must be paid within 5 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 death. For qualified contracts, payment must begin no later than the end of the calendar year immediately following the year of death. We may also offer a payment option, for both non-tax qualified contracts and certain tax qualified contracts, under which your beneficiary may receive payments, over a period not extending beyond his or her life expectancy, under a method of distribution similar to the distribution of required minimum distributions from Individual Retirement Accounts. If this option is elected, we will issue a new contract to your beneficiary in order to facilitate the distribution of payments. Your beneficiary may choose any optional death benefit available under the new contract. Upon the death of your beneficiary, the death benefit would be required to be distributed to your beneficiary's beneficiary at least as rapidly as under the method of distribution in effect at the time of your beneficiary's death. (See "Federal Income Tax Status.") To the extent permitted under the tax law, and in accordance with our procedures, your designated beneficiary is permitted under our procedures to make additional purchase payments consisting of monies which are direct transfers (as permitted under tax law) from other tax qualified or non-qualified contracts, depending on which type of contract you own, held in the name of the decedent. Any additional purchase payments would be subject to applicable withdrawal charges. Your beneficiary is also permitted to choose some of the optional benefits available under the contract, but certain contract provisions or programs may not be available. If a lump sum payment is elected and all the necessary requirements are met, the payment will be made within 7 days. Payment to the beneficiary under an annuity option may only be elected during the 60 day period beginning with the date we receive due proof of death. If we do not receive an election during such time, we will make a single sum payment to the beneficiary at the end of the 60 day period. If the owner or a joint owner, who is not the annuitant, dies during the income phase, any remaining payments under the annuity option elected will continue at least as rapidly as under the method of distribution in effect at the time of the owner's death. Upon the death of the owner or a joint owner during the income phase, the beneficiary becomes the owner. 39 SPOUSAL CONTINUATION If the primary beneficiary is the spouse of the owner, upon the owner's death, the beneficiary may elect to continue the contract in his or her own name. Upon such election, the account value will be adjusted upward (but not downward) to an amount equal to the death benefit amount determined upon such election and receipt of due proof of death of the owner. Any excess of the death benefit amount over the account value will be allocated to each applicable investment portfolio and/or the fixed account in the ratio that the account value in the investment portfolio and/or the fixed account bears to the total account value. Spousal continuation will not satisfy minimum required distribution rules for tax qualified contracts other than IRAs. DEATH OF THE ANNUITANT If the annuitant, not an owner or joint owner, dies during the accumulation phase, you automatically become the annuitant. You can select a new annuitant if you do not want to be the annuitant (subject to our then current underwriting standards). However, if the owner is a non- natural person (for example, a corporation), then the death of the primary annuitant will be treated as the death of the owner, and a new annuitant may not be named. Upon the death of the annuitant after annuity payments begin, the death benefit, if any, will be as provided for in the annuity option selected. Death benefits will be paid at least as rapidly as under the method of distribution in effect at the annuitant's death. CONTROLLED PAYOUT You may elect to have the death benefit proceeds paid to your beneficiary in the form of annuity payments for life or over a period of time that does not exceed your beneficiary's life expectancy. This election must be in writing in a form acceptable to us. You may revoke the election only in writing and only in a form acceptable to us. Upon your death, the beneficiary cannot revoke or modify your election. 10. FEDERAL INCOME TAX STATUS The following discussion is general in nature and is not intended as tax advice. Each person concerned should consult a competent tax adviser. No attempt is made to consider any applicable state tax or other tax laws, or to address any state and local estate, inheritance and other tax consequences of ownership or receipt of distributions under a contract. When you invest in an annuity contract, you usually do not pay taxes on your investment gains until you withdraw the money, generally for retirement purposes. If you invest in an annuity contract as part of an individual retirement plan, pension plan or employer-sponsored retirement program, your contract is called a "Qualified Contract." The tax rules applicable to Qualified Contracts vary according to the type of retirement plan and the terms and conditions of the plan. You should note that for any Qualified Contract, the tax deferred accrual feature is provided by the tax qualified retirement plan, and as a result there should be reasons other than tax deferral for acquiring the contract within a qualified plan. If your annuity is independent of any formal retirement or pension plan, it is termed a "Non-Qualified Contract." Under current federal income tax law, the taxable portion of distributions under variable annuity contracts and qualified plans (including IRAs) is not eligible for the reduced tax rate applicable to long-term capital gains and qualifying dividends. TAXATION OF NON-QUALIFIED CONTRACTS NON-NATURAL PERSON. If a non-natural person (e.g., a trust) owns a Non-Qualified Contract, the taxpayer generally must include in income any increase in the excess of the account value over the investment in the contract (generally, the premiums or other consideration paid for the contract) during the taxable year. There are some exceptions to this rule and a prospective owner that is not a natural person should discuss these with a tax adviser. The following discussion generally applies to Non-Qualified Contracts owned by natural persons. WITHDRAWALS. When a withdrawal from a Non-Qualified Contract occurs, the amount received will be treated as ordinary income subject to tax up to an amount equal to the excess (if any) of the account value immediately before the distribution over the owner's investment in the contract (generally, the premiums or other consideration paid for the contract, reduced by any amount previously distributed from the contract that was not subject to tax) at that time. In the case of a surrender under a Non-Qualified Contract, the amount received generally will be taxable only to the extent it exceeds the owner's investment in the contract. 40 In the case of a withdrawal under a Qualified Contract, a ratable portion of the amount received is taxable, generally based on the ratio of the "investment in the contract" to the individual's total account balance or accrued benefit under the retirement plan. The "investment in the contract" generally equals the amount of any non-deductible purchase payments paid by or on behalf of any individual. In many cases, the "investment in the contract" under a Qualified Contract can be zero. It is conceivable that charges for certain benefits under a variable contract, such as any of the guaranteed death benefits (including, but not limited to, the Earnings Preservation Benefit), may be considered as deemed distributions subject to immediate taxation. We currently intend to treat these charges as an intrinsic part of the annuity contract and we do not tax report these charges as taxable income. However, it is possible that this may change in the future if we determine that such reporting is required by the IRS. If so, the charge could also be subject to a 10% penalty tax if the taxpayer is under age 591/2. We reserve the right to change our tax reporting practices if we determine that they are not in accordance with IRS guidance (whether formal or informal). ADDITIONAL PENALTY TAX ON CERTAIN WITHDRAWALS. In the case of a distribution (or a deemed distribution) from a Non-Qualified Contract, there may be imposed a federal tax penalty equal to 10% of the amount treated as income. In general, however, there is no penalty on distributions: o made on or after the taxpayer reaches age 591/2; o made on or after the death of an owner; o attributable to the taxpayer's becoming disabled; o made as part of a series of substantially equal periodic payment (at least annually) for the life (or life expectancy) of the taxpayer or the joint lives (or joint life expectancies) of the taxpayer and his or her designated beneficiary; or o under certain immediate income annuities providing for substantially equal payments made at least annually. Other exceptions may be applicable under certain circumstances and special rules may be applicable in connection with the exceptions enumerated above. Also, additional exceptions apply to distributions from a Qualified Contract. You should consult a tax adviser with regard to exceptions from the penalty tax. ANNUITY PAYMENTS. Although tax consequences may vary depending on the payout option elected under an annuity contract, a portion of each annuity payment is generally not taxed and the remainder is taxed as ordinary income. The non-taxable portion of any annuity payment is generally determined in a manner that is designed to allow you to recover your investment in the contract ratably on a tax-free basis over the expected stream of annuity payments, as determined when annuity payments start. Once your investment in the contract has been fully recovered, however, the full amount of each annuity payment is subject to tax as ordinary income. In general, the amount of each payment under a variable annuity payment option that can be excluded from federal income tax is the remaining after-tax cost in the amount annuitized at the time such payments commence, divided by the number of expected payments, subject to certain adjustments. No deduction is permitted for any excess of such excludable amount for a year over the annuity payments actually received in that year. However, you may elect to increase the excludable amount attributable to future years by a ratable portion of such excess. Consult your tax advisor as to how to make such election and also as to how to treat the loss due to any unrecovered investment in the contract when the income stream is terminated. Once the investment in the contract has been recovered through the use of the excludable amount, the entire amount of all future payments are includable in taxable income. The IRS has not furnished explicit guidance as to how the excludable amount is to be determined each year under variable income annuities that permit transfers between the fixed account and variable investment portfolios, as well as transfers between investment portfolios after the annuity starting date. Consult your tax adviser. TAXATION OF DEATH BENEFIT PROCEEDS. Amounts may be distributed from a Non-Qualified Contract because of your death or the death of the annuitant. Generally, such amounts are includible in the income of the recipient as follows: (i) if distributed in a lump sum, they are taxed in the same manner as a surrender of the contract, or (ii) if distributed under a payout option, they are taxed in the same way as annuity payments. See the Statement of Additional Information as well as "Death Benefit - General Death Benefit Provisions" in this prospectus for a general discussion on the federal income 41 tax rules applicable to how death benefits must be distributed. TRANSFERS, ASSIGNMENTS OR EXCHANGES OF A CONTRACT. Where otherwise permitted under the terms of the contract, a transfer or assignment of ownership of a Non-Qualified Contract, the designation or change of an annuitant, the selection of certain maturity dates, or the exchange of a contract may result in certain adverse tax consequences to you that are not discussed herein. An owner contemplating any such transfer, assignment, exchange or event should consult a tax adviser as to the tax consequences. WITHHOLDING. Annuity distributions are generally subject to withholding for the recipient's federal income tax liability. Recipients can generally elect, however, not to have tax withheld from distributions. MULTIPLE CONTRACTS. All non-qualified deferred annuity contracts that are issued by us (or our affiliates) to the same owner during any calendar year are treated as one annuity contract for purposes of determining the amount includible in such owner's income when a taxable distribution occurs. 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. OWNERSHIP OF THE INVESTMENTS. In certain circumstances, owners of variable annuity contracts have been considered to be the owners of the assets of the underlying Separate Account for Federal income tax purposes due to their ability to exercise investment control over those assets. When this is the case, the contract owners have been currently taxed on income and gains attributable to the variable account assets. There is little guidance in this area, and some features of the contract, such as the number of funds available and the flexibility of the contract owner to allocate premium payments and transfer amounts among the funding options, have not been addressed in public rulings. While we believe that the contract does not give the contract owner investment control over Separate Account assets, we reserve the right to modify the contract as necessary to prevent a contract owner from being treated as the owner of the Separate Account assets supporting the contract. FURTHER INFORMATION. We believe that the contracts will qualify as annuity contracts for federal income tax purposes and the above discussion is based on that assumption. Further details can be found in the Statement of Additional Information under the heading "Tax Status of the Contracts." TAXATION OF QUALIFIED CONTRACTS The tax rules applicable to Qualified Contracts vary according to the type of retirement plan and the terms and conditions of the plan. Your rights under a Qualified Contract may be subject to the terms of the retirement plan itself, regardless of the terms of the Qualified Contract. Adverse tax consequences may result if you do not ensure that contributions, distributions and other transactions with respect to the contract comply with the law. INDIVIDUAL RETIREMENT ACCOUNTS (IRAS). IRAs, as defined in Section 408 of the Internal Revenue Code (Code), permit individuals to make annual contributions of up to the lesser of the applicable dollar amount for the year (for 2006, $4,000 plus, for an owner age 50 or older, $1,000) or the amount of compensation includible in the individual's gross income for the year. The contributions may be deductible in whole or in part, depending on the individual's income. Distributions from certain retirement plans may be "rolled over" into an IRA on a tax-deferred basis without regard to these limits. Amounts in the IRA (other than non-deductible contributions) are taxed when distributed from the IRA. A 10% penalty tax generally applies to distributions made before age 591/2, unless an exception applies. The contract (and appropriate IRA tax endorsements) have not yet been submitted to the IRS for review and approval as to form. Such approval is not required to constitute a valid Traditional IRA or SIMPLE IRA. Such approval does not constitute an IRS endorsement of the investment options and benefits offered under the contract. Traditional IRAs/SEPs, SIMPLE IRAs and Roth IRAs may not invest in life insurance. The contract may provide death benefits that could exceed the greater of premiums paid or the account balance. The final required minimum distribution income tax regulations generally treat such benefits as part of the annuity contract and not as life insurance and require the value of such 42 benefits to be included in the participant's interest that is subject to the required minimum distribution rules. SIMPLE IRA. A SIMPLE IRA permits certain small employers to establish SIMPLE plans as provided by Section 408(p) of the Code, under which employees may elect to defer to a SIMPLE IRA a percentage of compensation up to $10,000 for 2006. The sponsoring employer is generally required to make matching or non-elective contributions on behalf of employees. Distributions from SIMPLE IRA's are subject to the same restrictions that apply to IRA distributions and are taxed as ordinary income. Subject to certain exceptions, premature distributions prior to age 591/2 are subject to a 10% penalty tax, which is increased to 25% if the distribution occurs within the first two years after the commencement of the employee's participation in the plan. ROTH IRA. A Roth IRA, as described in Code section 408A, permits certain eligible individuals to make non-deductible contributions to a Roth IRA in cash or as a rollover or transfer from another Roth IRA or other IRA. A rollover from or conversion of an IRA to a Roth IRA is generally subject to tax, and other special rules apply. The owner may wish to consult a tax adviser before combining any converted amounts with any other Roth IRA contributions, including any other conversion amounts from other tax years. Distributions from a Roth IRA generally are not taxed, except that, once aggregate distributions exceed contributions to the Roth IRA, income tax and a 10% penalty tax may apply to distributions made (1) before age 591/2 (subject to certain exceptions) or (2) during the five taxable years starting with the year in which the first contribution is made to any Roth IRA. A 10% penalty tax may apply to amounts attributable to a conversion from an IRA if they are distributed during the five taxable years beginning with the year in which the conversion was made. TAX SHELTERED ANNUITIES. Tax Sheltered Annuities (TSA) that qualify under section 403(b) of the Code allow employees of certain Section 501(c)(3) organizations and public schools to exclude from their gross income the premium payments made, within certain limits, on a contract that will provide an annuity for the employee's retirement. These premium payments may be subject to FICA (social security) tax. Distributions of (1) salary reduction contributions made in years beginning after December 31, 1988; (2) earnings on those contributions; and (3) earnings on amounts held as of the close of the last year beginning before January 1, 1989, are not allowed prior to age 591/2, severance from employment, death or disability. Salary reduction contributions may also be distributed upon hardship, but would generally be subject to penalties. Proposed income tax regulations issued in November 2004, would require certain fundamental changes to these arrangements including (a) a requirement that there be a written plan document in addition to the annuity contract (or section 403(b)(7) custodial account), (b) significant restrictions on the ability of participants to direct proceeds between 403(b) annuity contracts and (c) new restrictions on withdrawals of amounts attributable to contributions other than elective deferrals. The proposed regulations will generally not be effective until taxable years beginning after December 31, 2005, at the earliest; and may not be relied on until issued in final form. However, certain aspects, including a proposed prohibition on use of life insurance under section 403(b) arrangements and rules affecting payroll taxes on certain types of contributions are currently effective unless revised or revoked in final form. SECTION 457(B) PLANS. An eligible 457(b) plan, while not actually a qualified plan as that term is normally used, provides for certain eligible deferred compensation plans with respect to service for state governments, local governments, political subdivisions, agencies, instrumentalities and certain affiliates of such entities, and tax exempt organizations. The contract can be used with such plans. Under such plans a participant may specify the form of investment in which his or her participation will be made. Under a non-governmental plan, which must be a tax-exempt entity under section 501(c) of the Code, all such investments, however, are owned by and are subject to, the claims of the general creditors of the sponsoring employer. In general, all amounts received under a non-governmental section 457(b) plan are taxable and are subject to federal income tax withholding as wages. SEPARATE ACCOUNT CHARGES FOR DEATH BENEFITS. For contracts purchased under section 403(b) plans, certain death benefits could conceivably be characterized as an incidental benefit, the amount of which is limited in any pension or profit-sharing plan. Because the death benefits, in certain cases, may exceed this limitation employers using the contract in connection with such plans should consult their tax adviser. Additionally, it is conceivable that the 43 explicit charges for, or the amount of the mortality and expense charges allocable to, such benefits may be considered taxable distributions. OTHER TAX ISSUES. Qualified Contracts (including contracts under section 457(b) plans) have minimum distribution rules that govern the timing and amount of distributions. You should refer to your retirement plan, adoption agreement, or consult a tax adviser for more information about these distribution rules. Failure to meet such rules generally results in the imposition of a 50% excise tax on the amount that should have been, but was not, distributed. Final income tax regulations regarding minimum distribution requirements were released in June 2004. These regulations affect both deferred and income annuities. Under these new rules, effective with respect to minimum distributions required for the 2006 distribution year, in general, the value of all benefits under a deferred annuity (including death benefits in excess of account value, as well as all living benefits) must be added to the account value in computing the amount required to be distributed over the applicable period. The final required minimum distribution regulations permit income payments to increase due to "actuarial gain" which includes the investment performance of the underlying assets, as well as changes in actuarial factors and assumptions under certain conditions. Additionally, withdrawals may also be permitted under certain conditions. The new rules are not entirely clear, and you should consult with your own tax adviser to determine whether your variable income annuity will satisfy these rules for your own situation. Distributions from Qualified Contracts generally are subject to withholding for the owner's federal income tax liability. The withholding rate varies according to the type of distribution and the owner's tax status. The owner will be provided the opportunity to elect not to have tax withheld from distributions. "Eligible rollover distributions" from section 401(a), 403(a), 403(b) and governmental section 457(b) plans are subject to a mandatory federal income tax withholding of 20%. An eligible rollover distribution is any distribution to an employee (or employee's spouse or former spouse as beneficiary or alternate payee) from such a plan, except certain distributions such as distributions required by the Code, distributions in a specified annuity form or hardship distributions. The 20% withholding does not apply, however, if the employee chooses a "direct rollover" from the plan to a tax-qualified plan, IRA or tax sheltered annuity or to a governmental 457(b) plan that agrees to separately account for rollover contributions. Effective March 28, 2005, certain mandatory distributions made to participants in an amount in excess of $1,000 must be rolled over to an IRA designated by the Plan, unless the participant elects to receive it in cash or roll it over to a different IRA or eligible retirement plan of his or her own choosing. General transitional rules apply as to when plans have to be amended. Special effective date rules apply for governmental plans and church plans. COMMUTATION FEATURES UNDER ANNUITY PAYMENT OPTIONS. Please be advised that the tax consquences resulting from the election of an annuity payment option containing a commutation feature is uncertain and the IRS may determine that the taxable amount of annuity payments and withdrawals received for any year could be greater than or less than the taxable amount reported by us. The exercise of the commutation feature also may result in adverse tax consequences including: o The imposition of a 10% penalty tax on the taxable amount of the commuted value, if the taxpayer has not attained age 591/2 at the time the withdrawal is made. This 10% penalty tax is in addition to the ordinary income tax on the taxable amount of the commuted value. o The retroactive imposition of the 10% penalty tax on annuity payments received prior to the taxpayer attaining age 591/2. o The possibility that the exercise of the commutation feature could adversely affect the amount excluded from federal income tax under any annuity payments made after such commutation. A payee should consult with his or her own tax advisor prior to electing to annuitize the contract and prior to exercising any commutation feature under an annuity payment option. FEDERAL ESTATE TAXES. While no attempt is being made to discuss the federal estate tax implications of the contract, you should keep in mind that the value of an annuity contract owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in the decedent's gross estate. Depending on the terms of the annuity contract, the value of the annuity included in the gross estate may be the value of the lump sum payment 44 payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning advisor 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. FOREIGN TAX CREDITS To the extent permitted under the federal income tax law, we may claim the benefit of certain foreign tax credits attributable to taxes paid by certain of the investment portfolios to foreign jurisdictions. POSSIBLE TAX LAW CHANGES Although the likelihood of legislative changes is uncertain, there is always the possibility that the tax treatment of the contract could change by legislation or otherwise. Consult a tax adviser with respect to legislative developments and their effect on the contract. We have the right to modify the contract in response to legislative changes that could otherwise diminish the favorable tax treatment that annuity contract owners currently receive. We make no guarantee regarding the tax status of the contract and do not intend the above discussion as tax advice. 11. OTHER INFORMATION METLIFE INVESTORS USA MetLife Investors USA Insurance Company (MetLife Investors USA) is a stock life insurance company founded on September 13, 1960, and organized under the laws of the State of Delaware. Its principal executive offices are located at 5 Park Plaza, Suite 1900, Irvine, CA 92614. MetLife Investors USA is authorized to transact the business of life insurance, including annuities, and is currently licensed to do business in all states (except New York), the District of Columbia and Puerto Rico. On [October 11, 2006] MetLife Investors USA became a wholly-owned subsidiary of MetLife Insurance Company of Connecticut. We changed our name to MetLife Investors USA Insurance Company on February 12, 2001. On December 31, 2002, MetLife Investors USA became an indirect subsidiary of MetLife, Inc., a listed company on the New York Stock Exchange. MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of insurance and other financial services to individual and institutional customers. We are a member of the Insurance Marketplace Standards Association ("IMSA"). Companies that belong to IMSA subscribe to a set of ethical standards covering the various aspects of sales and service for individually sold life insurance and annuities. PrimElite IV is a service mark of Citigroup Inc. or its Affiliates and is used by MetLife, Inc. and its Affiliates under license. THE SEPARATE ACCOUNT We have established a SEPARATE ACCOUNT, MetLife Investors USA Separate Account A (Separate Account), to hold the assets that underlie the contracts. Our Board of Directors adopted a resolution to establish the Separate Account under Delaware insurance law on May 29, 1980. We have registered the Separate Account with the Securities and Exchange Commission as a unit investment trust under the 45 Investment Company Act of 1940. The Separate Account is divided into subaccounts. The assets of the Separate Account are held in our name on behalf of the Separate Account and legally belong to us. However, those assets that underlie the contracts, are not chargeable with liabilities arising out of any other business we may conduct. All the income, gains and losses (realized or unrealized) resulting from these assets are credited to or charged against the contracts and not against any other contracts we may issue. We reserve the right to transfer assets of the Separate Account to another account, and to modify the structure or operation of the Separate Account, subject to necessary regulatory approvals. If we do so, we guarantee that the modification will not affect your account value. 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, and in certain cases, we, have entered into selling agreements with other selling firms for the sale of the contracts. We pay compensation to Distributor for sales of the contracts by selling firms. We also pay amounts to Distributor that may be used for its operating and other expenses, including the following sales expenses: compensation and bonuses for the Distributor's management team, advertising expenses, and other expenses of distributing the contracts. Distributor's management team also may be eligible for non-cash compensation items that we may provide jointly with Distributor. Non-cash items include conferences, seminars and trips (including travel, lodging and meals in connection therewith), entertainment, merchandise and other similar items. Certain investment portfolios make payments to Distributor under their distribution plans in consideration of services provided and expenses incurred by Distributor in distributing shares of the investment portfolios. (See "Fee Tables and Examples - Investment Portfolio Expenses" and the fund prospectuses.) These payments range up to 0.35% of Separate Account assets invested in the particular investment portfolio. We pay American Funds Distributors, Inc., principal underwriter for the American Funds Insurance Series, a percentage of purchase payments allocated to the American Funds Global Growth Fund, the American Funds Growth Fund, and the American Funds Growth-Income Fund, for the services it provides in marketing the Funds' shares in connection with the contract. SELLING FIRMS As noted above, Distributor, and in certain cases, we, have entered into selling agreements with selling firms for the sale of the contracts. All selling firms receive commissions, and they may also receive some form of non-cash compensation. Certain selected selling firms receive additional compensation (described below under "Additional Compensation for Selected Selling Firms"). These commissions and other incentives or payments are not charged directly to contract owners or the Separate Account. We intend to recoup commissions and other sales expenses through fees and charges deducted under the contract or from our general account. A portion of the payments made to selling firms may be passed on to their sales representatives in accordance with the selling firms' internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. COMPENSATION PAID TO SELLING FIRMS. We and Distributor pay compensation to all selling firms in the form of commissions and may also provide certain types of non-cash compensation. The maximum commission payable for contract sales and additional purchase payments to selling firms is 5.70% of purchase payments, along with annual trail commissions up to 0.20% of account value (less purchase payments received within the previous 12 months) for so long as the contract remains in effect or as agreed in the selling agreement. The commission rate paid to selling firms is determined by the mortality and expense charge you pay. The dollar amount of your initial purchase payment, or in certain circumstances total purchase payments made in the first contract year, will determine your mortality and expense charge for the duration of your contract (see "Expenses - Product Charges - Mortality and Expense Charge"). The higher the mortality and expense charge, the higher the commission rate the selling firm will receive. The compensation earned by your registered representative in connection with the sale of the contract will be higher if you do not qualify for a lower mortality and expense charge. As described in Expenses - Product Charges - Mortality and Expense Charge, the mortality and expense charge paid during the first contract year is determined at contract issue based on your estimate of the total purchase 46 payments to be made during the first contract year. If actual purchase payments made during the first contract year fall into a range of dollar amounts corresponding to a higher mortality and expense charge, you will pay that higher mortality and expense charge for all subsequent contract years. However, if actual purchase payments made during the first contract year fall into a range of dollar amounts corresponding to a lower mortality and expense charge than did your estimated purchase payments, no adjustment will be made. AS A RESULT, THE RATE OF COMPENSATION PAID ON PURCHASE PAYMENTS WILL BE HIGHEST WHEN YOUR ESTIMATE FALLS INTO THE RANGE OF DOLLAR AMOUNTS CORRESPONDING TO THE HIGHEST MORTALITY AND EXPENSE CHARGE, REGARDLESS OF ACTUAL PURCHASE PAYMENTS MADE. Please note that if your estimated total purchase payments during the first contract year are just below one of the threshold dollar amounts set out in the table under "Expenses-Product Charges-Mortality and Expense Charge," the rate of commission will be higher than if your initial purchase payment or your estimated purchase payments are at or just above the threshold dollar amount. For example, the rate of commission paid if your estimated total purchase payments in the first contract year are $99,999 is higher than if your estimated total purchase payments in the first contract year are $100,000. In addition, any purchase payments in excess of your estimated total purchase payments during the first contract year do not reduce your mortality and expense charge. For these reasons, your registered representative may have an incentive for you to underestimate the total purchase payments during the first contract year. Also, because purchase payments made after the first contract anniversary do not qualify you for a lower mortality and expense charge, the commission rate paid to selling firms, and therefore the total dollar amount of compensation, will be higher than if all purchase payments were made during the first contract year and the total amount of purchase payments qualified you for a lower mortality and expense charge. We also pay commissions when a contract owner elects to begin receiving regular income payments (referred to as "annuity payments"). (See "Annuity Payments (The Income Phase).") Distributor may also provide non-cash compensation items that we may provide jointly with Distributor. Non-cash items include expenses for conference or seminar trips and certain gifts. Ask your registered representative for further information about what payments your registered representative and the selling firm for which he or she works may receive in connection with your purchase of a contract. ADDITIONAL COMPENSATION FOR SELECTED SELLING FIRMS. We and Distributor have entered into distribution arrangements with certain selected selling firms. Under these arrangements we and Distributor may pay additional compensation to selected selling firms, including marketing allowances, introduction fees, persistency payments, preferred status fees and industry conference fees. Marketing allowances are periodic payments to certain selling firms based on cumulative periodic (usually quarterly) sales of our variable insurance contracts (including the contracts). Introduction fees are payments to selling firms in connection with the addition of our products to the selling firm's line of investment products, including expenses relating to establishing the data communications systems necessary for the selling firm to offer, sell and administer our products. Persistency payments are periodic payments based on account values of our variable insurance contracts (including account values of the contracts) or other persistency standards. Preferred status fees are paid to obtain preferred treatment of the contracts in selling firms' marketing programs, which may include marketing services, participation in marketing meetings, listings in data resources and increased access to their sales representatives. Industry conference fees are amounts paid to cover in part the costs associated with sales conferences and educational seminars for selling firms' sales representatives. We and Distributor have entered into such distribution agreements with selling firms identified in the Statement of Additional Information. The additional types of compensation discussed above are not offered to all selling firms. The terms of any particular agreement governing compensation may vary among selling firms and the amounts may be significant. The prospect of receiving, or the receipt of, additional compensation as described above may provide selling firms and/or their sales representatives with an incentive to favor sales of the contracts over other variable annuity contracts (or other investments) with respect to which selling firm does not receive additional compensation, or lower levels of additional compensation. You may wish to take such payment arrangements into account when considering and evaluating any recommendation relating to the contracts. For more information about any such additional 47 compensation arrangements, ask your registered representative. (See the Statement of Additional Information - "Distribution" for a list of selling firms that received compensation during 2005, as well as the range of additional compensation paid.) REQUESTS AND ELECTIONS We will treat your request for a contract transaction, or your submission of a purchase payment, as received by us if we receive a request conforming to our administrative procedures or a payment at our Annuity Service Center before the close of regular trading on the New York Stock Exchange on that day. We will treat your submission of a purchase payment as received by us if we receive a payment at our Annuity Service Center (or a designee receives a payment in accordance with the designee's administrative procedures) before the close of regular trading on the New York Stock Exchange on that day. If we receive the request, or if we (or our designee) receive the payment, after the close of trading on the New York Stock Exchange on that day, or if the New York Stock Exchange is not open that day, then the request or payment will be treated as received on the next day when the New York Stock Exchange is open. Our Annuity Service Center is located at P.O. Box 10426, Des Moines, IA 50306-0426. Requests for service may be made: o Through your registered representative o By telephone at (888) 556-5412, between the hours of 7:30AM and 5:30PM Central Time Monday through Thursday and 7:30AM and 5:00PM Central Time on Friday o In writing to our Annuity Service Center o By fax at (515) 273-4980 or o By Internet at www.metlifeinvestors.com All other requests must be in written form, satisfactory to us. We will use reasonable procedures such as requiring certain identifying information, tape recording the telephone instructions, and providing written confirmation of the transaction, in order to confirm that instructions communicated by telephone, fax, Internet or other means are genuine. Any telephone, fax or Internet instructions reasonably believed by us to be genuine will be your responsibility, including losses arising from any errors in the communication of instructions. As a result of this policy, you will bear the risk of loss. If we do not employ reasonable procedures to confirm that instructions communicated by telephone, fax or Internet are genuine, we may be liable for any losses due to unauthorized or fraudulent transactions. All other requests and elections under your contract must be in writing signed by the proper party, must include any necessary documentation and must be received at our Annuity Service Center to be effective. If acceptable to us, requests or elections relating to beneficiaries and ownership will take effect as of the date signed unless we have already acted in reliance on the prior status. We are not responsible for the validity of any written request or action. Telephone and computer systems may not always be available. Any telephone or computer system, whether it is yours, your service provider's, your agent's, or ours, can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may delay or prevent our processing of your request. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability under all circumstances. If you experience technical difficulties or problems, you should make your transaction request in writing to our Annuity Service Center. CONFIRMING TRANSACTIONS. We will send out written statements confirming that a transaction was recently completed. Unless you inform us of any errors within 60 days of receipt, we will consider these communications to be accurate and complete. OWNERSHIP OWNER. You, as the OWNER of the contract, have all the interest and rights under the contract. These rights include the right to: o change the beneficiary. o change the annuitant before the annuity date (subject to our underwriting and administrative rules). o assign the contract (subject to limitation). o change the payment option. o exercise all other rights, benefits, options and privileges allowed by the contract or us. The owner is as designated at the time the contract is issued, unless changed. 48 JOINT OWNER. The contract can be owned by JOINT OWNERS, limited to two natural persons. Upon the death of either owner, the surviving owner will be the primary beneficiary. Any other beneficiary designation will be treated as a contingent beneficiary unless otherwise indicated. BENEFICIARY. The BENEFICIARY is the person(s) or entity you name to receive any death benefit. The beneficiary is named at the time the contract is issued unless changed at a later date. Unless an irrevocable beneficiary has been named, you can change the beneficiary at any time before you die. If joint owners are named, unless you tell us otherwise, the surviving joint owner will be the primary beneficiary. Any other beneficiary designation will be treated as a contingent beneficiary (unless you tell us otherwise). ANNUITANT. The ANNUITANT is the natural person(s) on whose life we base annuity payments. You can change the annuitant at any time prior to the annuity date, unless an owner is not a natural person. Any reference to annuitant includes any joint annuitant under an annuity option. The owner and the annuitant do not have to be the same person except as required under certain sections of the Internal Revenue Code. ASSIGNMENT. You can assign a non-qualified contract at any time during your lifetime. We will not be bound by the assignment until the written notice of the assignment is recorded by us. We will not be liable for any payment or other action we take in accordance with the contract before we record the assignment. AN ASSIGNMENT MAY BE A TAXABLE EVENT. If the contract is issued pursuant to a qualified plan, there may be limitations on your ability to assign the contract. LEGAL PROCEEDINGS In the ordinary course of business, MetLife Investors USA, similar to other life insurance companies, is involved in lawsuits (including class action lawsuits), arbitrations and other legal proceedings. Also, from time to time, state and federal regulators or other officials conduct formal and informal examinations or undertake other actions dealing with various aspects of the financial services and insurance industries. In some legal proceedings involving insurers, substantial damages have been sought and/or material settlement payments have been made. It is not possible to predict with certainty the ultimate outcome of any pending legal proceeding or regulatory action. However, MetLife Investors USA does not believe any such action or proceeding will have a material adverse effect upon the Separate Account or upon the ability of MetLife Investors Distribution Company to perform its contract with the Separate Account or of MetLife Investors USA to meet its obligations under the contracts. FINANCIAL STATEMENTS Our financial statements and the financial statements of the Separate Account have been included in the SAI. TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION Company Experts Custodian Distribution Calculation of Performance Information Annuity Provisions Tax Status of the Contracts Financial Statements 49 APPENDIX A PARTICIPATING INVESTMENT PORTFOLIOS Below are the advisers and subadvisers and investment objectives of each investment portfolio available under the contract. The fund prospectuses contain more complete information, including a description of the investment objectives, policies, restrictions and risks. THERE CAN BE NO ASSURANCE THAT THE INVESTMENT OBJECTIVES WILL BE ACHIEVED. ALLIANCE BERNSTEIN VARIABLE PRODUCT SERIES FUNDS, INC. AllianceBernstein Variable Products Series Fund, Inc. is a mutual fund with multiple portfolios. Alliance Capital Management, L.P. is the investment adviser to each portfolio. The following Class B portfolio is available under the contract: ALLIANCEBERNSTEIN LARGE CAP GROWTH PORTFOLIO INVESTMENT OBJECTIVE: The AllianceBernstein Large Cap Growth Portfolio seeks growth of capital. AMERICAN FUNDS INSURANCE SERIES (CLASS 2) American Funds Insurance Series is a trust with multiple portfolios. Capital Research and Management Company is the investment adviser to each portfolio. The following Class 2 portfolios are available under the contract: AMERICAN FUNDS GLOBAL GROWTH FUND INVESTMENT OBJECTIVE: The American Funds Global Growth Fund seeks capital appreciation through stocks. AMERICAN FUNDS GROWTH FUND INVESTMENT OBJECTIVE: The American Funds Growth Fund seeks capital appreciation through stocks. AMERICAN FUNDS GROWTH-INCOME FUND INVESTMENT OBJECTIVE: The American Funds Growth-Income Fund seeks capital appreciation and income. FIDELITY (Reg. TM) VARIABLE INSURANCE PRODUCTS The Fidelity (Reg. TM) Variable Insurance Products is a variable insurance products fund with multiple portfolios. Fidelity Managment & Research Company is the investment manager and FMR Co., Inc. is the subadviser. The following Service Class 2 portfolio is available under the contract: VIP MID CAP PORTFOLIO INVESTMENT OBJECTIVE: The VIP Mid Cap Portfolio seeks long-term growth of capital. FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST (CLASS 2) Franklin Templeton Variable Insurance Products Trust currently consists of 22 separate series (the Fund or Funds). Funds may be available in multiple classes: Class 1, Class 2 and Class 3. The portfolios available in connection with your contract are Class 2 shares. Franklin Advisers, Inc. is the investment advisor for Franklin Income Securities Fund; Franklin Mutual Advisers, LLC is the investment advisor for Mutual Shares Securities Fund; and Templeton Global Advisors Limited is the investment adviser for the Templeton Growth Securities Fund. The following Class 2 portfolios are available under the contract: FRANKLIN INCOME SECURITIES FUND INVESTMENT OBJECTIVE: The Franklin Income Securities Fund seeks to maximize income while maintaining prospects for capital appreciation. MUTUAL SHARES SECURITIES FUND INVESTMENT OBJECTIVE: The Mutual Shares Securities Fund seeks capital appreciation. TEMPLETON GROWTH SECURITIES FUND INVESTMENT OBJECTIVE: The Templeton Growth Securities Fund seeks long-term capital growth. LEGG MASON PARTNERS INVESTMENT SERIES Legg Mason Partners Investment Series is a mutual fund with multiple portfolios. Smith Barney Fund Management LLC is the investment adviser to each portfolio. The following portfolios are available under the contract: A-1 LEGG MASON PARTNERS VARIABLE DIVIDEND STRATEGY PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Dividend Strategy Portfolio seeks capital appreciation, principally through investments in dividend-paying stocks. LEGG MASON PARTNERS VARIABLE GROWTH AND INCOME PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Growth and Income Portfolio seeks reasonable growth and income. LEGG MASON PARTNERS VARIABLE PREMIER SELECTIONS ALL CAP GROWTH PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Premier Selections All Cap Growth Portfolio seeks long-term capital growth. LEGG MASON PARTNERS VARIABLE PORTFOLIOS I, INC. (CLASS I) Legg Mason Partners Variable Portfolios, Inc. is a mutual fund with multiple portfolios. Salomon Brothers Asset Management, Inc. is the investment adviser to each portfolio. The following Class I portfolios are available under the contract: LEGG MASON PARTNERS VARIABLE HIGH YIELD BOND PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable High Yield Bond Portfolio seeks total return, consistent with the preservation of capital. LEGG MASON PARTNERS VARIABLE SMALL CAP GROWTH PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Small Cap Growth Portfolio seeks long-term growth of capital. LEGG MASON PARTNERS VARIABLE PORTFOLIOS II Legg Mason Partners Variable Portfolios II is a trust that consists of multiple portfolios. Smith Barney Fund Management LLC is the investment adviser to each portfolio. The following portfolios are available under the contract: LEGG MASON PARTNERS VARIABLE APPRECIATION PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Appreciation Portfolio seeks long-term appreciation of capital. LEGG MASON PARTNERS VARIABLE CAPITAL AND INCOME PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Capital and Income Portfolio seeks a combination of income and long-term capital appreciation. LEGG MASON PARTNERS VARIABLE FUNDAMENTAL VALUE PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Fundamental Value Portfolio seeks long-term capital growth. LEGG MASON PARTNERS VARIABLE PORTFOLIOS III, INC. Legg Mason Partners Variable Portfolios III, Inc. is a mutual fund with multiple portfolios. Salomon Brothers Asset Management, Inc. is the investment adviser to the Legg Mason Partners Variable Aggressive Growth Portfolio. Smith Barney Fund Management LLC is the investment adviser to the other portfolios listed below. The following portfolios are available under the contract: LEGG MASON PARTNERS VARIABLE ADJUSTABLE RATE INCOME PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Adjustable Rate Income Portfolio seeks high current income and to limit the degree of fluctuation of its net asset value resulting from movements in interest rates. LEGG MASON PARTNERS VARIABLE AGGRESSIVE GROWTH PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Aggressive Growth Portfolio seeks capital apprecation. LEGG MASON PARTNERS VARIABLE LARGE CAP GROWTH PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Large Cap Growth Portfolio seeks long-term growth of capital. LEGG MASON PARTNERS VARIABLE LARGE CAP VALUE PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Large Cap Value Portfolio seeks long-term growth of capital with current income as a secondary objective. LEGG MASON PARTNERS VARIABLE MONEY MARKET PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Money Market Portfolio seeks to maximize current income consistent with preservation of capital. A-2 LEGG MASON PARTNERS VARIABLE SOCIAL AWARENESS STOCK PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Social Awareness Stock Portfolio seeks long-term capital appreciation and retention of net investment income. LEGG MASON PARTNERS VARIABLE PORTFOLIOS IV Legg Mason Partners Variable Portfolios IV is a trust with multiple portfolios. Smith Barney Fund Management LLC is the investment adviser to each portfolio. The following portfolios are available under the contract: LEGG MASON PARTNERS VARIABLE MULTIPLE DISCIPLINE PORTFOLIO - ALL CAP GROWTH AND VALUE INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Multiple Discipline Portfolio - All Cap Growth and Value seeks long-term growth of capital. LEGG MASON PARTNERS VARIABLE MULTIPLE DISCIPLINE PORTFOLIO - BALANCED ALL CAP GROWTH AND VALUE INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Multiple Discipline Portfolio - Balanced All Cap Growth and Value seeks a balance between long-term growth of capital and principal preservation. LEGG MASON PARTNERS VARIABLE MULTIPLE DISCIPLINE PORTFOLIO - GLOBAL ALL CAP GROWTH AND VALUE INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Multiple Discipline Portfolio - Global All Cap Growth and Value seeks long-term growth of capital. LEGG MASON PARTNERS VARIABLE MULTIPLE DISCIPLINE PORTFOLIO - LARGE CAP GROWTH AND VALUE INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Multiple Discipline Portfolio - Large Cap Growth and Value seeks long-term growth of capital. MET INVESTORS SERIES TRUST (CLASS B OR CLASS A, AS NOTED) Met Investors Series Trust is managed by Met Investors Advisory, LLC, which is an affiliate of MetLife Investors USA. Met Investors Series Trust is a mutual fund with multiple portfolios. The following Class B portfolios are available under the contract: MET/AIM CAPITAL APPRECIATION PORTFOLIO (CLASS A) SUBADVISER: A I M Capital Management, Inc. INVESTMENT OBJECTIVE: The Met/AIM Capital Appreciation Portfolio seeks long-term growth of capital. MET/AIM SMALL CAP GROWTH PORTFOLIO SUBADVISER: A I M Capital Management, Inc. INVESTMENT OBJECTIVE: The Met/AIM Small Cap Growth Portfolio seeks long-term growth of capital. MFS (Reg. TM) RESEARCH INTERNATIONAL PORTFOLIO SUBADVISER: Massachusetts Financial Services Company INVESTMENT OBJECTIVE: The MFS (Reg. TM) Research International Portfolio seeks capital appreciation. MFS (Reg. TM) VALUE PORTFOLIO (CLASS A) SUBADVISER: Massachusetts Financial Services Company INVESTMENT OBJECTIVE: The MFS (Reg. TM) Value Portfolio seeks capital appreciation and reasonable income. OPPENHEIMER CAPITAL APPRECIATION PORTFOLIO SUBADVISER: OPPENHEIMERFUNDS, INC. INVESTMENT OBJECTIVE: The Oppenheimer Capital Appreciation Portfolio seeks capital appreciation. PIONEER FUND PORTFOLIO (CLASS A) SUBADVISER: Pioneer Investment Management, Inc. INVESTMENT OBJECTIVE: The Pioneer Fund Portfolio seeks reasonable income and capital growth. PIONEER STRATEGIC INCOME PORTFOLIO (CLASS A) SUBADVISER: Pioneer Investment Management, Inc. INVESTMENT OBJECTIVE: The Pioneer Strategic Income Portfolio seeks a high level of current income. MET/PUTNAM CAPITAL OPPORTUNITIES PORTFOLIO SUBADVISER: Putnam Investment Management, LLC INVESTMENT OBJECTIVE: The Met/Putnam Capital Opportunities Portfolio seeks to provide a high total return from a portfolio of equity securities of small and mid-sized companies. METROPOLITAN SERIES FUND, INC. Metropolitan Series Fund, Inc. is a mutual fund with multiple portfolios. MetLife Advisers, LLC, an affiliate of MetLife Investors USA, is the investment adviser to each portfolio. The following portfolios are available under the contract: FI INTERNATIONAL STOCK PORTFOLIO (CLASS B) SUBADVISER: Fidelity Management & Research Company INVESTMENT OBJECTIVE: The FI International Stock Portfolio seeks long-term growth of capital. A-3 FI LARGE CAP PORTFOLIO (CLASS A) SUBADVISER: Fidelity Management & Research Company INVESTMENT OBJECTIVE: The FI Large Cap Portfolio seeks long-term growth of capital. FI VALUE LEADERS PORTFOLIO (CLASS D) SUBADVISER: Fidelity Management & Research Company INVESTMENT OBJECTIVE: The FI Value Leaders Portfolio seeks long-term growth of capital. OPPENHEIMER GLOBAL EQUITY PORTFOLIO (CLASS B) SUBADVISOR: OppenheimerFunds, Inc. INVESTMENT OBJECTIVE: The Oppenheimer Global Equity Portfolio seeks capital appreciation. WESTERN ASSET MANAGEMENT U.S. GOVERNMENT PORTFOLIO (CLASS B) SUBADVISER: Western Asset Management Company INVESTMENT OBJECTIVE: The Western Asset Management U.S. Government Portfolio seeks to maximize total return consistent with preservation of capital and maintenance of liquidity. PIONEER VARIABLE CONTRACTS TRUST (CLASS II) Pioneer Variable Contracts Trust is a mutual fund with multiple portfolios. Pioneer Investment Management, Inc. is the investment adviser to each portfolio. The following Class II portfolio is available under the contract: PIONEER MID CAP VALUE VCT PORTFOLIO INVESTMENT OBJECTIVE: The Pioneer Mid Cap Value VCT Portfolio seeks capital appreciation. PUTNAM VARIABLE TRUST (CLASS IB) Putnam Variable Trust is a mutual fund with mulitple portfolios. Putnam Investment Management, LLC is the investment adviser to each portfolio. The following Class IB portfolio is available under the contract: PUTNAM VT SMALL CAP VALUE FUND INVESTMENT OBJECTIVE: The Putnam VT Small Cap Value Fund seeks capital appreciation. THE UNIVERSAL INSTITUTIONAL FUNDS, INC. (CLASS I OR II, AS NOTED) The Universal Institutional Funds, Inc. is a mutual fund with multiple portfolios. Morgan Stanley Investment Management Inc., doing business as Van Kampen, is the investment adviser to each portfolios. The following portfolios are available under the contract: EQUITY AND INCOME PORTFOLIO (CLASS II) INVESTMENT OBJECTIVE: The Equity and Income Portfolio seeks both capital appreciation and current income. U.S. REAL ESTATE SECURITIES PORTFOLIO (CLASS I) INVESTMENT OBJECTIVE: The U.S. Real Estate Securities Portfolio seeks above average current income and long-term capital appreciation. VAN KAMPEN LIFE INVESTMENT TRUST (CLASS II) Van Kampen Life Investment Trust is a mutual fund with multiple portfolios. Van Kampen Asset Management Inc. is the investment adviser to each portfolio. The following Class II portfolios are available under the contract: VAN KAMPEN LIT COMSTOCK PORTFOLIO INVESTMENT OBJECTIVE: The Van Kampen LIT Comstock Portfolio seeks capital growth and income. VAN KAMPEN LIT EMERGING GROWTH PORTFOLIO INVESTMENT OBJECTIVE: The Van Kampen LIT Emerging Growth Portfolio seeks capital appreciation. VAN KAMPEN LIT GROWTH AND INCOME PORTFOLIO INVESTMENT OBJECTIVE: The Van Kampen LIT Growth and Income Portfolio seeks long-term growth of capital and income. A-4 LEGG MASON PARTNERS VARIABLE LIFESTYLE SERIES, INC. The Legg Mason Partners Variable Lifestyle Series, Inc. is a mutual fund with multiple portfolios. Smith Barney Fund Management LLC is the investment adviser to each portfolio. The following portfolios are available under the contract: LEGG MASON PARTNERS VARIABLE LIFESTYLE BALANCED PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Lifestyle Balanced Portfolio seeks long-term growth of capital. LEGG MASON PARTNERS VARIABLE LIFESTYLE GROWTH PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Lifestyle Growth Portfolio seeks long-term growth of capital. LEGG MASON PARTNERS VARIABLE LIFESTYLE HIGH GROWTH PORTFOLIO INVESTMENT OBJECTIVE: The Legg Mason Partners Variable Lifestyle High Growth Portfolio seeks capital appreciation. -------------------------------------------------------------------------------- A-5 APPENDIX B INVESTMENT PORTFOLIOS: MARKETING NAMES AND PROSPECTUS NAMES In other written materials outside of this prospectus, we may market certain investment portfolios using different names. The following table lists the marketing names and the prospectus names for those investment portfolios that have marketing names.
MARKETING NAME PROSPECTUS NAME -------------------------------------------------- ---------------------------------------- Legg Mason Partners Adjustable Rate Legg Mason Partners Variable Adjustable Income Portfolio Rate Income Portfolio Legg Mason Partners Aggressive Growth Legg Mason Partners Variable Aggressive Portfolio Growth Portfolio Legg Mason Partners Appreciation Legg Mason Partners Variable Portfolio Appreciation Portfolio Legg Mason Partners Equity Index Legg Mason Partners Variable Equity Portfolio Index Portfolio Legg Mason Partners Fundamental Value Legg Mason Partners Variable Portfolio Fundamental Value Portfolio Legg Mason Partners High Yield Bond Legg Mason Partners Variable High Yield Portfolio Bond Portfolio Legg Mason Partners Investors Portfolio Legg Mason Partners Variable Investors Portfolio Legg Mason Partners Large Cap Growth Legg Mason Partners Variable Large Cap Portfolio Growth Portfolio Legg Mason Partners MDP - All Cap Legg Mason Partners Variable Multiple Growth and Value Discipline Portfolio - All Cap Growth and Value Legg Mason Partners MDP - Balanced Legg Mason Partners Variable Multiple All Cap Growth and Value Discipline Portfolio - Balanced All Cap Growth and Value Legg Mason Partners MDP - Global All Legg Mason Partners Variable Multiple Cap Growth and Value Discipline Portfolio - Global All Cap Growth and Value Legg Mason Partners MDP - Large Cap Legg Mason Partners Variable Multiple Growth and Value Discipline Portfolio - Large Cap Growth and Value Legg Mason Partners Money Market Legg Mason Partners Variable Money Portfolio Market Portfolio Legg Mason Partners Small Cap Growth Legg Mason Partners Variable Small Cap Portfolio Growth Portfolio
B-1 APPENDIX C GUARANTEED WITHDRAWAL BENEFIT EXAMPLES GUARANTEED WITHDRAWAL BENEFIT The purpose of these examples is to illustrate the operation of the Guaranteed Withdrawal Benefit. The investment results shown are hypothetical and are not representative of past or future performance. Actual investment results may be more or less than those shown and will depend upon a number of factors, including investment allocations and the investment experience of the investment portfolios chosen. The examples do not reflect the deduction of fees and charges, withdrawal charges and applicable income taxes and penalties. A. How Withdrawals Affect the Benefit Base 1. An initial purchase payment is made of $100,000. The initial Benefit Base would be $100,000. Assume that the account value grew to $110,000 because of market performance. If a subsequent withdrawal of $10,000 were made, the Benefit Base would be reduced to $100,000 - $10,000 = $90,000. Assume the withdrawal of $10,000 exceeded the Annual Benefit Payment. Since the account value of $100,000 exceeds the Benefit Base of $90,000, no further reduction to the Benefit Base is made. 2. An initial purchase payment is made of $100,000. The initial Benefit Base would be $100,000. Assume that the account value shrank to $90,000 because of market performance. If a subsequent withdrawal of $10,000 were made, the Benefit Base would be reduced to $90,000 and the account value would be reduced to $80,000. Assume the withdrawal of $10,000 exceeded the Annual Benefit Payment. Since the account value of $80,000 is less than the Benefit Base of $90,000, a further reduction of the $10,000 difference is made, bringing the Benefit Base to $80,000. B. How Withdrawals and Subsequent Purchase Payments Affect the Annual Benefit Payment An initial purchase payment is made of $100,000. The initial Benefit Base would be $100,000 and the initial Annual Benefit Payment would be $5,000. If $5,000 withdrawals were then made for each of the next five years, the Benefit Base would be decreased to $75,000. If a subsequent purchase payment of $10,000 were made the next day, the Benefit Base would be increased to $75,000 + $10,000 = $85,000. The Annual Benefit Payment would be reset to the greater of a) $5,000 (the Annual Benefit Payment before the second purchase payment) and b) $4,250 (5% multiplied by the Benefit Base after the second purchase payment). In this case, the Annual Benefit Payment would remain at $5,000. C. How Withdrawals Affect the Annual Benefit Payment 1. An initial purchase payment is made of $100,000. The initial Benefit Base would be $100,000 and the initial Annual Benefit Payment would be $5,000. If a withdrawal of $9,000 was made the next day, and negative market performance reduced the account value by an additional $1,000, the account value would be reduced to $100,000 - $9,000 - $1,000 = $90,000. Since the withdrawal of $9,000 exceeded the Annual Benefit Payment of $5,000, the Annual Benefit Payment would be reset to the lower of a) $5,000 (the Annual Benefit Payment before the withdrawal) and b) $4,500 (5% multiplied by the account value after the withdrawal). In this case the Annual Benefit Payment would be reset to $4,500. 2. An initial purchase payment is made of $100,000. The initial Benefit Base would be $100,000 and the initial Annual Benefit Payment would be $5,000. If a withdrawal of $10,000 was made two years later after the account value had increased to $150,000, the account value would be reduced to $140,000. Since the withdrawal of $10,000 exceeded the Annual Benefit Payment of $5,000, the Annual Benefit Payment would be reset to the lower of a) $5,000 (the Annual Benefit Payment before the withdrawal) and b) $7,000 (5% multiplied by the account value after the withdrawal). In this case the Annual Benefit Payment would remain at $5,000. D. How Withdrawals and Subsequent Purchase Payments Affect the Guaranteed Withdrawal Amount An initial purchase payment is made of $100,000 and the initial Guaranteed Withdrawal Amount and initial Benefit Base would both be $100,000. Assume that over the next five years, withdrawals reduced the Benefit Base to $75,000. If a C-1 subsequent purchase payment of $10,000 was made, the Benefit Base would be increased to $75,000 + $10,000 = $85,000. The Guaranteed Withdrawal Amount would be reset to the greater of a) $100,000 (the Guaranteed Withdrawal Amount before the second purchase payment) and b) $85,000 (the Benefit Base after the second purchase payment). In this case, the Guaranteed Withdrawal Amount would remain at $100,000. E. Putting It All Together 1. When Withdrawals Do Not Exceed the Annual Benefit Payment An initial purchase payment is made of $100,000. The initial Benefit Base would be $100,000, the Guaranteed Withdrawal Amount would be $100,000, and the Annual Benefit Payment would be $5,000. Assume that the Benefit Base was reduced to $85,000 due to 3 years of withdrawing $5,000 each year and assume that the account value was further reduced to $50,000 at year four due to poor market performance. If you withdrew $5,000 at this time, your account value would be reduced to $50,000 - $5,000 = $45,000. Your Benefit Base would be reduced to $85,000 - $5,000 = $80,000. Since the withdrawal of $5,000 did not exceed the Annual Benefit Payment, there would be no additional reduction to the Benefit Base. The Guaranteed Withdrawal Amount would remain at $100,000 and the Annual Benefit Payment would remain at $5,000. [GRAPHIC APPEARS HERE] C-2 2. When Withdrawals Do Exceed the Annual Benefit Payment An initial purchase payment is made of $100,000. The initial Benefit Base would be $100,000, the Guaranteed Withdrawal Amount would be $100,000, and the Annual Benefit Payment would be $5,000. Assume that the Benefit Base was reduced to $85,000 due to 3 years of withdrawing $5,000 each year. Assume the account value was further reduced to $50,000 at year four due to poor market performance. If you withdrew $10,000 at this time, your account value would be reduced to $50,000 - $10,000 = $40,000. Your Benefit Base would be reduced to $85,000 - $10,000 = $75,000. Since the withdrawal of $10,000 exceeded the Annual Benefit Payment of $5,000 and the resulting Benefit Base would be greater than the resulting account value, there would be an additional reduction to the Benefit Base. The Benefit Base after the withdrawal would be set equal to the account value after the withdrawal = $40,000. The Annual Benefit Payment would be set equal to the lesser of $5,000 and 5% x $40,000 = $2,000. The Guaranteed Withdrawal Amount would remain at $100,000, but this amount now no longer would be guaranteed to be received over time. The new Benefit Base of $40,000 would be now the amount guaranteed to be available to be withdrawn over time. [GRAPHIC APPEARS HERE] LIFETIME WITHDRAWAL GUARANTEE The purpose of these examples is to illustrate the operation of the Lifetime Withdrawal Guarantee. The investment results shown are hypothetical and are not representative of past or future performance. Actual investment results may be more or less than those shown and will depend upon a number of factors, including investment allocations and the investment experience of the investment portfolios chosen. The examples do not reflect the deduction of fees and charges, withdrawal charges and applicable income taxes and penalties. A. Lifetime Withdrawal Guarantee 1. When Withdrawals Do Not Exceed the Annual Benefit Payment Assume that a contract had an initial purchase payment of $100,000. The initial account value would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, the initial Remaining Guaranteed Withdrawal Amount would be $100,000 and the initial Annual Benefit Payment would be $5,000 ($100,000 x 5%). Assume that $5,000 is withdrawn each year, beginning before the contract owner attains age 591/2. The Remaining Guaranteed Withdrawal Amount is reduced by $5,000 each year as withdrawals are taken (the Total Guaranteed Withdrawal Amount is not reduced by these withdrawals). The Annual Benefit Payment of $5,000 is guaranteed to be received until the Remaining Guaranteed Withdrawal Amount is depleted, even if the account value is reduced to zero. C-3 If the first withdrawal is taken after age 591/2, then the Annual Benefit Payment of $5,000 is guaranteed to be received for the owner's lifetime, even if the Remaining Guaranteed Withdrawal Amount and the account value are reduced to zero. [GRAPHIC APPEARS HERE] 2. When Withdrawals Do Exceed the Annual Benefit Payment Assume that a contract had an initial purchase payment of $100,000. The initial account value would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, the initial Remaining Guaranteed Withdrawal Amount would be $100,000 and the initial Annual Benefit Payment would be $5,000 ($100,000 \x 5%). Assume that the Remaining Guaranteed Withdrawal Amount is reduced to $95,000 due to a withdrawal of $5,000 in the first year. Assume the account value was further reduced to $75,000 at year two due to poor market performance. If you withdrew $10,000 at this time, your account value would be reduced to $75,000 - $10,000 = $65,000. Your Remaining Guaranteed Withdrawal Amount would be reduced to $95,000 - $10,000 = $85,000. Since the withdrawal of $10,000 exceeded the Annual Benefit Payment of $5,000 and the resulting Remaining Guaranteed Withdrawal Amount would be greater than the resulting account value, there would be an additional reduction to the Remaining Guaranteed Withdrawal Amount. The Remaining Guaranteed Withdrawal Amount after the withdrawal would be set equal to the account value after the withdrawal ($65,000). This new Remaining Guaranteed Withdrawal Amount of $65,000 would now be the amount guaranteed to be available to be withdrawn over time. The Total Guaranteed Withdrawal Amount would also be reduced to $65,000. The Annual Benefit Payment would be set equal to 5% \x $65,000 = $3,250. B. 5% Compounding Income Amount Assume that a contract had an initial purchase payment of $100,000. The initial Remaining Guaranteed Withdrawal Amount would be $100,000, the Total Guaranteed Withdrawal Amount would be $100,000, and the Annual Benefit Payment would be $5,000 ($100,000 \x 5%). The Total Guaranteed Withdrawal Amount will increase by 5% of the previous year's Total Guaranteed Withdrawal Amount until the earlier of the first withdrawal or the 10th contract anniversary. The Annual Benefit Payment will be recalculated as 5% of the new Total Guaranteed Withdrawal Amount. If the first withdrawal is taken in the first contract year, then there would be no increase: the Total Guaranteed Withdrawal Amount would remain at $100,000 and the Annual Benefit Payment will remain at $5,000 ($100,000 \x 5%). If the first withdrawal is taken in the second contract year, then the Total Guaranteed Withdrawal Amount would increase to $105,000 ($100,000 \x 105%), and the Annual Benefit Payment would increase to $5,250 ($105,000 \x 5%). If the first withdrawal is taken in the third contract year, then the Total Guaranteed Withdrawal Amount would increase to $110,250 ($105,000 \x 105%), and the Annual Benefit Payment would increase to $5,513 ($110,250 \x 5%). C-4 If the first withdrawal is taken after the 10th contract year, then the Total Guaranteed Withdrawal Amount would increase to $162,890 (the initial $100,000, increased by 5% per year, compounded annually for 10 years), and the Annual Benefit Payment would increase to $8,144 ($162,890 \x 5%). [GRAPHIC APPEARS HERE] C. Automatic Annual Step-Ups and 5% Compounding Income Amount (No Withdrawals) Assume that a contract had an initial purchase payment of $100,000. Assume that no withdrawals are taken. At the first contract anniversary, provided that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $105,000 ($100,000 increased by 5%, compounded annually). Assume the account value has increased to $110,000 at the first contract anniversary due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $105,000 to $110,000 and reset the Annual Benefit Payment to $5,500 ($110,000 \x 5%). At the second contract anniversary, provided that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $115,500 ($110,000 increased by 5%, compounded annually). Assume the account value has increased to $120,000 at the second contract anniversary due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $115,500 to $120,000 and reset the Annual Benefit Payment to $6,000 ($120,000 \x 5%). Provided that no withdrawals are taken, each year the Total Guaranteed Withdrawal Amount would increase by 5%, compounded annually, from the second contract anniversary through the ninth contract anniversary, and at that point would be equal to $168,852. Assume that during these contract years the account value does not exceed the Total Guaranteed Withdrawal Amount due to poor market performance. Assume the account value at the ninth contract anniversary has increased to $180,000 due to good market performance. The Automatic Annual Step-Up will increase the Total Guaranteed Withdrawal Amount from $168,852 to $180,000 and reset the Annual Benefit Payment to $9,000 ($180,000 \x 5%). C-5 At the 10th contract anniversary, provided that no withdrawals are taken, the Total Guaranteed Withdrawal Amount is increased to $189,000 ($180,000 increased by 5%, compounded annually). Assume the account value is less than $189,000. There is no Automatic Annual Step-Up since the account value is below the Total Guaranteed Withdrawal Amount; however, due to the 5% increase in the Total Guaranteed Withdrawal Amount, the Annual Benefit Payment is increased to $9,450 ($189,000 \x 5%). [GRAPHIC APPEARS HERE] C-6 STATEMENT OF ADDITIONAL INFORMATION INDIVIDUAL VARIABLE DEFERRED ANNUITY CONTRACT ISSUED BY METLIFE INVESTORS USA SEPARATE ACCOUNT A AND METLIFE INVESTORS USA INSURANCE COMPANY PRIMELITE IV THIS IS NOT A PROSPECTUS. THIS STATEMENT OF ADDITIONAL INFORMATION SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS DATED DECEMBER 31, 2006, FOR THE FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT WHICH IS DESCRIBED HEREIN. THE PROSPECTUS CONCISELY SETS FORTH INFORMATION THAT A PROSPECTIVE INVESTOR OUGHT TO KNOW BEFORE INVESTING. FOR A COPY OF THE PROSPECTUS WRITE US AT: P.O. BOX 10426, DES MOINES, IOWA 50306-0426, OR CALL (888) 556-5412. THIS STATEMENT OF ADDITIONAL INFORMATION IS DATED DECEMBER 31, 2006. SAI-PRIMELITE-IV TABLE OF CONTENTS PAGE COMPANY ...................................................... 2 EXPERTS ...................................................... 2 CUSTODIAN .................................................... 2 DISTRIBUTION ................................................. 2 Reduction or Elimination of the Withdrawal Charge ....... 4 CALCULATION OF PERFORMANCE INFORMATION ....................... 4 Total Return ............................................ 4 Historical Unit Values .................................. 5 Reporting Agencies ...................................... 5 ANNUITY PROVISIONS ........................................... 5 Variable Annuity ........................................ 5 Fixed Annuity ........................................... 7 Mortality and Expense Guarantee ......................... 7 Legal or Regulatory Restrictions on Transactions ........ 7 TAX STATUS OF THE CONTRACTS .................................. 7 FINANCIAL STATEMENTS ......................................... 9
1 COMPANY MetLife Investors USA Insurance Company (MetLife Investors USA) is a stock life insurance company founded on September 13, 1960, and organized under the laws of the State of Delaware. Its principal executive offices are located at 5 Park Plaza, Suite 1900 Irvine, CA 92614. MetLife Investors USA is authorized to transact the business of life insurance, including annuities, and is currently licensed to do business in all states (except New York) and the District of Columbia. MetLife Investors USA is a wholly-owned subsidiary of MetLife Investors Group, Inc ("MLIG"). We changed our name to MetLife Investors USA Insurance Company on February 12, 2001. On December 31, 2002, MetLife Investors USA became an indirect subsidiary of MetLife, Inc., a listed company on the New York Stock Exchange. MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of insurance and other financial services to individual and institutional customers. We are a member of the Insurance Marketplace Standards Association ("IMSA"). Companies that belong to IMSA subscribe to a set of ethical standards covering the various aspects of sales and service for individually sold life insurance and annuities. EXPERTS The financial statements of the Company included in this Statement of Additional Information have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing herein (which report expresses an unqualified opinion and includes an explanatory paragraph referring to the change in method of accounting for certain non-traditional long duration contracts and separate accounts as required by new accounting guidance which became effective January 1, 2004), and are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The principal business address of Deloitte & Touche LLP is 201 E. Kennedy Boulevard, Tampa, Florida 33602. The financial statements of the sub-accounts of the Separate Account included in this Statement of Additional Information have been audited by Deloitte & Touche LLP, an independent registered public accounting firm, as stated in their report appearing herein, and are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The principal business address of Deloitte & Touche LLP is 100 South 4th Street, St. Louis, Missouri 63102. CUSTODIAN MetLife Investors USA Insurance Company, 5 Park Plaza, Suite 1900, Irvine, CA 92614, is the custodian of the assets of the Separate Account. The custodian has custody of all cash of the Separate Account and handles the collection of proceeds of shares of the underlying funds bought and sold by the Separate Account. DISTRIBUTION Information about the distribution of the contracts is contained in the prospectus. (See "Other Information.") Additional information is provided below. The contracts are offered to the public on a continuous basis. We anticipate continuing to offer the contracts, but reserve the right to discontinue the offering. MetLife Investors Distribution Company ("Distributor") serves as principal underwriter for the contracts. Distributor is a Missouri corporation and its home office is located at 5 Park Plaza, Suite 1900, Irvine, CA 92614. In December 2004, MetLife Investors Distribution Company, which was then a Delaware corporation, was merged into General American Distributors, Inc., and the name of the surviving corporation was changed to MetLife Investors Distribution Company. Distributor is an indirect, wholly-owned subsidiary of MetLife, Inc. Distributor is registered as a broker-dealer with the Securities and Exchange Commission under the Securities Exchange Act of 1934 and is a member of NASD, Inc. Distributor is not a member of the Securities Investor Protection Corporation. Distributor has entered into selling agreements with other broker-dealers ("selling firms") and compensates them for their services. Distributor (including its predecessor) received sales compensation with respect to all contracts issued from the Separate Account in the following amounts during the 2 periods indicated:
Aggregate Amount of Commissions Retained Aggregate Amount of by Distributor After Commissions Paid to Payments to Selling Fiscal year Distributor Firms ------------- --------------------- --------------------- 2003 $169,179,314 $0 2004 $183,550,302 $0 2005 $176,095,864 $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 2005 ranged from $963,145 to $0. The amount of commissions paid to selected selling firms during 2005 ranged from $22,553,575 to $0. The amount of total compensation (includes non-commission as well as commission amounts) paid to selected selling firms during 2005 ranged from $ 23,516,902 to $0. For purposes of calculating such amounts, the amount of compensation received by a selling firm may include additional compensation received by the firm for the sale of insurance products issued by our affiliates within the MetLife Investors group of companies (First MetLife Investors Insurance Company, MetLife Investors Insurance Company of California and MetLife Investors Insurance Company). 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 2005 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. AFS Brokerage, Inc. Ameritas Investment Corp. Associated Securities Corp. Brookstreet Securities Corporation Centaurus Financial, Inc. CUSO Financial Sevices, L.P. Davenport & Company Duerr Financial Essex National Securities, Inc. Ferris, Baker Watts Incorporated FFP Securities, Inc. First Financial Planners Futureshare Financial Great Southern Bank Greenpoint Financial Guaranty Insurance Services, Inc. Gunn Allen Financial Harbour Investments, Inc. H. Beck, Inc. Huntington Bank IFMG Securities, Inc. Infinex Investments, Inc. ING Intersecurities, Inc. Investacorp, Inc. Investment Planners, Inc. Investment Professionals, Inc. Janney Montgomery Scott LLC Jefferson Pilot LaSalle St. Securities, L.L.C. Legg Mason Wood Walker, Incorporated Lincoln Investment Planning Medallion Investment Services, Inc. Merrill Lynch, Pierce, Fenner & Smith Inc. Morgan Keegan & Company, Inc. Mutual Service Corporation National Planning Corporation North Island Financial Pan-America Financial Advisors Piper Jaffray & Company Planning Corp. of America PNC Investments Prime Capital Questar Capital Re-Direct Securities Corp. Scott & Stringfellow, Inc. Securities America, Inc. Securities Service Network, Inc. Sigma Financial Corporation 3 Standford Group The Leaders Group Transamerica Financial United Planners' Financial Services of America U.S. Bancorp Investment, Inc. UVEST Financial Services Group, Inc. Wallstreet Financial Walnut Street Securities, Inc. Waterstone Financial Group, Inc. Wilbanks Securities Workman Securities XCU Capital Corporation, 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. REDUCTION OR ELIMINATION OF THE WITHDRAWAL CHARGE The amount of the withdrawal charge on the contracts may be reduced or eliminated when sales of the contracts are made to individuals or to a group of individuals in a manner that results in savings of sales expenses. The entitlement to reduction of the withdrawal charge will be determined by the Company after examination of all the relevant factors such as: 1. The size and type of group to which sales are to be made will be considered. Generally, the sales expenses for a larger group are less than for a smaller group because of the ability to implement large numbers of contracts with fewer sales contacts. 2. The total amount of purchase payments to be received will be considered. Per contract sales expenses are likely to be less on larger purchase payments than on smaller ones. 3. Any prior or existing relationship with the Company will be considered. Per contract sales expenses are likely to be less when there is a prior existing relationship because of the likelihood of implementing the contract with fewer sales contacts. 4. There may be other circumstances, of which the Company is not presently aware, which could result in reduced sales expenses. If, after consideration of the foregoing factors, the Company determines that there will be a reduction in sales expenses, the Company may provide for a reduction or elimination of the withdrawal charge. The withdrawal charge may be eliminated when the contracts are issued to an officer, director or employee of the Company or any of its affiliates. In no event will any reduction or elimination of the withdrawal charge be permitted where the reduction or elimination will be unfairly discriminatory to any person. In lieu of a withdrawal charge waiver, we may provide an account value credit. CALCULATION OF PERFORMANCE INFORMATION TOTAL RETURN From time to time, the Company may advertise performance data. Such data will show the percentage change in the value of an accumulation unit based on the performance of an investment portfolio over a period of time, usually a calendar year, determined by dividing the increase (decrease) in value for that unit by the accumulation unit value at the beginning of the period. Any such advertisement will include total return figures for the time periods indicated in the advertisement. Such total return figures will reflect the deduction of the separate account product charges, the expenses for the underlying investment portfolio being advertised and any applicable account fee and withdrawal charges. 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 4 T = average annual total return n = number of years ERV = ending redeemable value at the end of the time periods used (or fractional portion thereof) of a hypothetical $1,000 payment made at the beginning of the 1, 5 or 10 year periods used. The Company may also advertise performance data which will be calculated in the same manner as described above but which will not reflect the deduction of a withdrawal charge. Premium taxes are not reflected. The deduction of such charges would reduce any percentage increase or make greater any percentage decrease. Owners should note that the investment results of each investment portfolio will fluctuate over time, and any presentation of the investment portfolio's total return for any period should not be considered as a representation of what an investment may earn or what the total return may be in any future period. HISTORICAL UNIT VALUES The Company may also show historical accumulation unit values in certain advertisements containing illustrations. These illustrations will be based on actual accumulation unit values. In addition, the Company may distribute sales literature which compares the percentage change in accumulation unit values for any of the investment portfolios against established market indices such as the Standard & Poor's 500 Composite Stock Price Index, the Dow Jones Industrial Average or other management investment companies which have investment objectives similar to the investment portfolio being compared. The Standard & Poor's 500 Composite Stock Price Index is an unmanaged, unweighted average of 500 stocks, the majority of which are listed on the New York Stock Exchange. The Dow Jones Industrial Average is an unmanaged, weighted average of thirty blue chip industrial corporations listed on the New York Stock Exchange. Both the Standard & Poor's 500 Composite Stock Price Index and the Dow Jones Industrial Average assume quarterly reinvestment of dividends. REPORTING AGENCIES The Company may also distribute sales literature which compares the performance of the accumulation unit values of the Contracts with the unit values of variable annuities issued by other insurance companies. Such information will be derived from the Lipper Variable Insurance Products Performance Analysis Service, the VARDS Report or from Morningstar. The Lipper Variable Insurance Products Performance Analysis Service is published by Lipper Analytical Services, Inc., a publisher of statistical data which currently tracks the performance of thousands of investment companies. The rankings compiled by Lipper may or may not reflect the deduction of asset-based insurance charges. The Company's sales literature utilizing these rankings will indicate whether or not such charges have been deducted. Where the charges have not been deducted, the sales literature will indicate that if the charges had been deducted, the ranking might have been lower. The VARDS Report is a monthly variable annuity industry analysis compiled by Variable Annuity Research & Data Service. The VARDS rankings may or may not reflect the deduction of asset-based insurance charges. In addition, VARDS prepares risk adjusted rankings, which consider the effects of market risk on total return performance. This type of ranking may address the question as to which funds provide the highest total return with the least amount of risk. Other ranking services may be used as sources of performance comparison, such as CDA/Weisenberger. Morningstar rates a variable annuity against its peers with similar investment objectives. Morningstar does not rate any variable annuity that has less than three years of performance data. ANNUITY PROVISIONS VARIABLE ANNUITY A variable annuity is an annuity with payments which: (1) are not predetermined as to dollar amount; and (2) will vary in amount in proportion to the amount that the net investment factor exceeds the assumed investment return selected. The Adjusted Contract Value (contract value, less any applicable premium taxes and account fee) will be applied to the applicable Annuity Table to determine the first annuity payment. The Adjusted Contract Value is determined on the annuity calculation date, which is a business day no more than five (5) business days before the annuity date. The dollar amount of the first variable annuity payment is determined as follows: The first variable annuity payment will be based upon the annuity option elected, the annuitant's age and sex, and the 5 appropriate variable annuity option table. If, as of the annuity calculation date, the then current variable annuity option rates applicable to this class of contracts provide a first annuity payment greater than that which is guaranteed under the same annuity option under this contract, the greater payment will be made. The dollar amount of variable annuity payments after the first payment is determined as follows: 1. the dollar amount of the first variable annuity payment is divided by the value of an annuity unit for each applicable investment portfolio as of the annuity calculation date. This establishes the number of annuity units for each monthly payment. The number of annuity units for each applicable investment portfolio remains fixed during the annuity period, unless you transfer values from the investment portfolio to another investment portfolio; 2. the fixed number of annuity units per payment in each investment portfolio is multiplied by the annuity unit value for that investment portfolio for the business day for which the annuity payment is being calculated. This result is the dollar amount of the payment for each applicable investment portfolio, less any account fee. The account fee will be deducted pro rata out of each annuity payment. The total dollar amount of each variable annuity payment is the sum of all investment portfolio variable annuity payments. ANNUITY UNIT - The initial annuity unit value for each investment portfolio of the Separate Account was set by us. The subsequent annuity unit value for each investment portfolio is determined by multiplying the annuity unit value for the immediately preceding business day by the net investment factor for the investment portfolio for the current business day and multiplying the result by a factor for each day since the last business day which offsets the assumed investment return used to develop the variable annuity tables. (1) the dollar amount of the first annuity payment is divided by the value of an annuity unit as of the annuity date. This establishes the number of annuity units for each monthly payment. The number of annuity units remains fixed during the annuity payment period. (2) the fixed number of annuity units is multiplied by the annuity unit value for the last valuation period of the month preceding the month for which the payment is due. This result is the dollar amount of the payment. NET INVESTMENT FACTOR - The net investment factor for each investment portfolio is determined by dividing A by B and multiplying by (1-C) where: A is (i) the net asset value per share of the portfolio at the end of the current business day; plus (ii) any dividend or capital gains per share declared on behalf of such portfolio that has an ex-dividend date as of the current business day. B is the net asset value per share of the portfolio for the immediately preceding business day. C is (i) the separate account product charges and for each day since the last business day. The daily charge is equal to the annual separate account product charges divided by 365; plus (ii) a charge factor, if any, for any taxes or any tax reserve we have established as a result of the operation of the Separate Account. Transfers During the Annuity Phase: . You may not make a transfer from the fixed account to the Separate Account; . Transfers among the subaccounts will be made by converting the number of annuity units being transferred to the number of annuity units of the subaccount to which the transfer is made, so that the next annuity payment if it were made at that time would be the same amount that it would have been without the transfer. Thereafter, annuity payments will reflect changes in the value of the new annuity units; and . You may make a transfer from the variable annuity option to the fixed annuity option. The amount transferred from a subaccount of the Separate Account will be equal to the product of "(a)" multiplied by "(b)" multiplied by "(c)", where (a) is the number of annuity units representing your interest in the subaccount per annuity payment; (b) is the annuity unit value for the subaccount; and (c) is the present value of $1.00 per payment period for the remaining annuity benefit period based on the attained age of the annuitant at the time of transfer, calculated using the same actuarial basis as the variable annuity rates applied on the annuity date for the annuity option 6 elected. Amounts transferred to the fixed annuity option will be applied under the annuity option elected at the attained age of the annuitant at the time of the transfer using the fixed annuity option table. If at the time of transfer, the then current fixed annuity option rates applicable to this class of contracts provide a greater payment, the greater payment will be made. All amounts and annuity unit values will be determined as of the end of the business day on which the Company receives a notice. FIXED ANNUITY A fixed annuity is a series of payments made during the annuity phase which are guaranteed as to dollar amount by the Company and do not vary with the investment 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 first monthly annuity payment will be based upon the annuity option elected and the appropriate annuity option table. 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. REQUIRED DISTRIBUTIONS. In order to be treated as an annuity contract for Federal income tax purposes, Section 72(s) of the Code generally requires any Non-Qualified Contract to contain certain provisions specifying how your interest in the contract will be distributed in the event of the death of an owner of the contract (or on the death of, or change in, any primary annuitant where the contract is owned by a non-natural person). Specifically, Section 72(s) requires that: (a) if any owner dies on or after the annuity starting date, but prior to the time the entire interest in the contract has been distributed, the entire interest in the contract will be distributed at least as rapidly as under the method of distribution being used as of the date of such owner's death; and (b) if any owner dies prior to the annuity starting date, the entire interest in the contract will be distributed within five years after the date of such owner's death. These requirements will be considered satisfied as to any portion of an owner's interest which is payable to or for the benefit of a designated beneficiary and which is distributed over the life of such designated beneficiary or over a period not extending beyond the life expectancy of that beneficiary, provided that such distributions begin within one year of the owner's death. The designated beneficiary refers to a natural person designated by the owner as a beneficiary and to whom ownership of the contract passes by reason of death. However, if the designated beneficiary is the surviving spouse of the deceased owner, the contract may be continued with the surviving spouse as the new owner. The Non-Qualified Contracts contain provisions that are intended to comply with these Code requirements, although no regulations interpreting these requirements have yet been issued. We intend to review such provisions and modify them if necessary to assure that they comply with the applicable requirements when such requirements are clarified by regulation or otherwise. Other rules may apply to Qualified Contracts. MANDATORY DISTRIBUTIONS FOR QUALIFIED PLANS. Federal tax law requires that minimum annual distributions begin by April 1st of the calendar year following the calendar year in which an IRA owner attains age 70 1/2. Participants in qualified plans and 403(b) annuities may defer minimum distributions until the later of April 1st of the calendar year following the calendar year in which they attain age 70 1/2 or the year of retirement (except for 5% or more owners). If you own more than one individual retirement annuity and/or account, you may satisfy the minimum distribution rules on an aggregate basis (i.e., determine the total amount of required distributions from all IRAs and take the required amount from any one or more IRAs). A similar aggregate approach is available to meet your 403(b) minimum distribution requirements if you have multiple 403(b) annuities. Recently promulgated Treasury regulations changed the distribution requirements; 7 therefore, it is important that you consult your tax adviser as to the impact of these regulations on your personal situation. Final income tax regulations regarding minimum distribution requirements were released in June 2004. These regulations affect both deferred and income annuities. Under these new rules, effective with respect to minimum distributions required for the 2006 distribution year, in general, the value of all benefits under a deferred annuity (including death benefits in excess of cash value) must be added to the account value in computing the amount required to be distributed over the applicable period. We will provide you with additional information as to the amount of your interest in the contract that is subject to required minimum distributions under this new rule and either compute the required amount for you or offer to do so at your request. The new rules are not entirely clear and you should consult your tax adviser as to how these rules affect your contract. MINIMUM DISTRIBUTIONS FOR BENEFICIARIES UPON THE CONTRACT OWNER'S DEATH. Upon the death of the contract owner and/or annuitant of a Qualified Contract, the funds remaining in the contract must be completely withdrawn within 5 years from the date of death (including in a single lump sum) or minimum distributions may be taken over the life expectancy of the individual beneficiaries (and in certain situations, trusts for individuals), provided such distributions are payable at least annually and begin within one year from the date of death. Special rules apply in the case of an IRA where the beneficiary is the surviving spouse which allow the spouse to assume the contract as owner. Alternative rules permit a spousal beneficiary under a qualified contract, including an IRA, to defer the minimum distribution requirements until the end of the year in which the deceased spouse would have attained age 70 1/2 or to rollover the death proceeds to his or her own IRA or to another eligible retirement plan in which he or she participates. 8 FINANCIAL STATEMENTS The financial statements of the Separate Account and the Company are to be filed by amendment. The financial statements of the Company included herein should be considered only as bearing upon the ability of the Company to meet its obligations under the contract. 9 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of MetLife Investors USA Insurance Company and Contract Owners of MetLife Investors USA Separate Account A: We have audited the accompanying statement of assets and liabilities of each of the sub-accounts (as disclosed in Note 1 to the financial statements) comprising MetLife Investors USA Separate Account A (the Separate Account) of MetLife Investors USA Insurance Company as of December 31, 2005, the related statement of operations for each of the periods in the year then ended, the statements of changes in net assets for each of the periods in the two-year period then ended, and the financial highlights for each of the periods in the five-year period 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 sub-accounts' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2005, by correspondence with the custodian and brokers. 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 of MetLife Investors USA Separate Account A of MetLife Investors USA Insurance Company as of December 31, 2005, the results of their operations for each of the periods in the year then ended, the changes in their net assets for each of the periods in the two-year period then ended, and their financial highlights for each of the periods in the five-year period then ended, in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP St. Louis, Missouri March 31, 2006 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
Met Investors ----------------------------------------------------------------------------------------- Lord Abbett Lord Abbett Lord Abbett Lord Abbett Lord Abbett Growth and Growth and Bond Bond Growth Lord Abbett Income Income Debenture Debenture Opportunities Mid-Cap Value Portfolio Portfolio B Portfolio Portfolio B Portfolio B Portfolio B ------------- ------------- ------------- ------------- ------------- ------------- ASSETS: Investments at Fair Value: Met Investors Series Trust (Met Investors): Met Investors Lord Abbett Growth and Income Portfolio $ 301,796,868 $ - $ - $ - $ - $ - 10,938,632 shares; cost $276,375,754 Met Investors Lord Abbett Growth and Income Portfolio B - 522,233,353 - - - - 19,045,709 shares; cost $456,836,258 Met Investors Lord Abbett Bond Debenture Portfolio - - 3,406,944 - - - 277,439 shares; cost $3,448,506 Met Investors Lord Abbett Bond Debenture Portfolio B - - - 299,607,650 - - 24,578,150 shares; cost $297,203,663 Met Investors Lord Abbett Growth Opportunities Portfolio B - - - - 299,624 - 29,843 shares; cost $319,252 Met Investors Lord Abbett Mid-Cap Value Portfolio B - - - - - 344,122 15,445 shares; cost $356,531 Met Investors Lazard Mid-Cap Portfolio B - - - - - - 9,124,613 shares; cost $112,968,973 Met Investors Met/AIM Small-Cap Growth Portfolio - - - - - - 51,550 shares; cost $674,473 ------------- ------------- ------------- ------------- ------------- ------------- Total Investments 301,796,868 522,233,353 3,406,944 299,607,650 299,624 344,122 Due From MetLife Investors Insurance Company - - - - - - Cash and Accounts Receivable - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- Total Assets 301,796,868 522,233,353 3,406,944 299,607,650 299,624 344,122 LIABILITIES: Due to MetLife Investors Insurance Company 1 32 - 28 72 221 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS $ 301,796,867 $ 522,233,321 $ 3,406,944 $ 299,607,622 $ 299,552 $ 343,901 ============= ============= ============= ============= ============= ============= Outstanding Units 10,810,129 10,828,479 265,814 17,636,059 30,352 14,110 Unit Fair Values $ 25.66 $ 40.97 $ 5.88 $ 16.56 $ 9.63 $ 23.23 to to to to to to $ 83.02 $ 49.03 $ 18.28 $ 17.27 $ 10.06 $ 25.27
---------------------- Met/AIM Lazard Small-Cap Mid-Cap Growth Portfolio B Portfolio ------------- ------------- ASSETS: Investments at Fair Value: Met Investors Series Trust (Met Investors): Met Investors Lord Abbett Growth and Income Portfolio $ - $ - 10,938,632 shares; cost $276,375,754 Met Investors Lord Abbett Growth and Income Portfolio B - - 19,045,709 shares; cost $456,836,258 Met Investors Lord Abbett Bond Debenture Portfolio - - 277,439 shares; cost $3,448,506 Met Investors Lord Abbett Bond Debenture Portfolio B - - 24,578,150 shares; cost $297,203,663 Met Investors Lord Abbett Growth Opportunities Portfolio B - - 29,843 shares; cost $319,252 Met Investors Lord Abbett Mid-Cap Value Portfolio B - - 15,445 shares; cost $356,531 Met Investors Lazard Mid-Cap Portfolio B 123,820,993 - 9,124,613 shares; cost $112,968,973 Met Investors Met/AIM Small-Cap Growth Portfolio - 704,177 51,550 shares; cost $674,473 ------------- ------------- Total Investments 123,820,993 704,177 Due From MetLife Investors Insurance Company - - Cash and Accounts Receivable - - ------------- ------------- Total Assets 123,820,993 704,177 LIABILITIES: Due to MetLife Investors Insurance Company 2 - ------------- ------------- NET ASSETS $ 123,820,991 $ 704,177 ============= ============= Outstanding Units 8,655,654 53,445 Unit Fair Values $ 13.95 $ 13.17 to to $ 14.52 $ 13.43
See accompanying notes to financial statements. (Continued) 2 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
Met Investors ----------------------------------------------------------------------------------------- Met/AIM Harris Third Avenue Third Avenue Oppenheimer Oppenheimer Small-Cap Oakmark Small-Cap Small-Cap Capital Capital Growth International Value Value Appreciation Appreciation Portfolio B Portfolio B Portfolio Portfolio B Portfolio Portfolio B ------------- ------------- ------------- ------------- ------------- ------------- ASSETS: Investments at Fair Value: Met Investors Series Trust (Met Investors), continued: Met Investors Met/AIM Small-Cap Growth Portfolio B $ 169,765,152 $ - $ - $ - $ - $ - 12,565,888 shares; cost $146,181,508 Met Investors Harris Oakmark International Portfolio B - 295,833,827 - - - - 18,363,366 shares; cost $233,388,418 Met Investors Third Ave Small-Cap Value Portfolio - - 6,154,634 - - - 370,538 shares; cost $5,337,981 Met Investors Third Ave Small-Cap Value Portfolio B - - - 318,676,274 - - 19,255,364 shares; cost $236,490,450 Met Investors Oppenheimer Capital Appreciation Portfolio - - - - 16,229,734 - 1,867,633 shares; cost $15,166,451 Met Investors Oppenheimer Capital Appreciation Portfolio B - - - - - 354,118,356 41,081,016 shares; cost $338,461,862 Met Investors Janus Aggressive Growth Portfolio B - - - - - - 14,861,667 shares; cost $104,222,472 Met Investors PIMCO Total Return Bond Portfolio - - - - - - 4,593,747 shares; cost $51,682,566 ------------- ------------- ------------- ------------- ------------- ------------- Total Investments 169,765,152 295,833,827 6,154,634 318,676,274 16,229,734 354,118,356 Due From MetLife Investors Insurance Company - - - - - - Cash and Accounts Receivable - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- Total Assets 169,765,152 295,833,827 6,154,634 318,676,274 16,229,734 354,118,356 LIABILITIES: Due to MetLife Investors Insurance Company - 38 3 29 1 36 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS $ 169,765,152 $ 295,833,789 $ 6,154,631 $ 318,676,245 $ 16,229,733 $ 354,118,320 ============= ============= ============= ============= ============= ============= Outstanding Units 13,192,731 18,995,708 373,791 19,722,318 1,520,722 41,507,591 Unit Fair Values $ 12.54 $ 15.18 $ 16.46 $ 15.81 $ 8.81 $ 8.31 to to to to to to $ 13.06 $ 15.81 $ 16.74 $ 16.37 $ 10.70 $ 8.67
---------------------- Janus PIMCO Aggressive Total Return Growth Bond Portfolio B Portfolio ------------- ------------- ASSETS: Investments at Fair Value: Met Investors Series Trust (Met Investors), continued: Met Investors Met/AIM Small-Cap Growth Portfolio B $ - $ - 12,565,888 shares; cost $146,181,508 Met Investors Harris Oakmark International Portfolio B - - 18,363,366 shares; cost $233,388,418 Met Investors Third Ave Small-Cap Value Portfolio - - 370,538 shares; cost $5,337,981 Met Investors Third Ave Small-Cap Value Portfolio B - - 19,255,364 shares; cost $236,490,450 Met Investors Oppenheimer Capital Appreciation Portfolio - - 1,867,633 shares; cost $15,166,451 Met Investors Oppenheimer Capital Appreciation Portfolio B - - 41,081,016 shares; cost $338,461,862 Met Investors Janus Aggressive Growth Portfolio B 127,810,337 - 14,861,667 shares; cost $104,222,472 Met Investors PIMCO Total Return Bond Portfolio - 53,287,472 4,593,747 shares; cost $51,682,566 ------------- ------------- Total Investments 127,810,337 53,287,472 Due From MetLife Investors Insurance Company - - Cash and Accounts Receivable - - ------------- ------------- Total Assets 127,810,337 53,287,472 LIABILITIES: Due to MetLife Investors Insurance Company 3 - ------------- ------------- NET ASSETS $ 127,810,334 $ 53,287,472 ============= ============= Outstanding Units 16,090,265 6,296,278 Unit Fair Values $ 7.74 $ 8.28 to to $ 8.08 $ 12.65
See accompanying notes to financial statements. (Continued) 3 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
Met Investors --------------------------------------------------------------------------------------------- PIMCO PIMCO T. Rowe Price MFS Total Return RCM Global RCM Global Inflation Mid-Cap Research Bond Technology Technology Protected Bond Growth International Portfolio B Portfolio Portfolio B Portfolio B Portfolio B Portfolio ------------- ------------- ------------- -------------- ------------- ------------- ASSETS: Investments at Fair Value: Met Investors Series Trust (Met Investors), continued: Met Investors PIMCO Total Return Bond Portfolio B $ 365,465,639 $ - $ - $ - $ - $ - 31,779,621 shares; cost $364,316,860 Met Investors RCM Global Technology Portfolio - 763,445 - - - - 149,402 shares; cost $691,875 Met Investors RCM Global Technology Portfolio B - - 48,291,164 - - - 9,562,607 shares; cost $41,114,939 Met Investors PIMCO Inflation Protected Bond Portfolio B - - - 276,160,800 - - 25,665,502 shares; cost $273,683,242 Met Investors T. Rowe Price Mid-Cap Growth Portfolio B - - - - 216,790,508 - 25,869,989 shares; cost $165,933,579 Met Investors MFS Research International Portfolio - - - - - 1,855,211 142,709 shares; cost $1,697,153 Met Investors MFS Research International Portfolio B - - - - - - 15,698,178 shares; cost $158,048,951 Met Investors Neuberger Berman Real Estate Portfolio B - - - - - - 5,119,325 shares; cost $57,628,981 ------------- ------------- ------------- ------------- ------------- ------------- Total Investments 365,465,639 763,445 48,291,164 276,160,800 216,790,508 1,855,211 Due From MetLife Investors Insurance Company - 1 - - - 1 Cash and Accounts Receivable - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- Total Assets 365,465,639 763,446 48,291,164 276,160,800 216,790,508 1,855,212 LIABILITIES: Due to MetLife Investors Insurance Company 43 - 116 48 31 - ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS $ 365,465,596 $ 763,446 $ 48,291,048 $ 276,160,752 $ 216,790,477 $ 1,855,212 ============= ============= ============= ============= ============= ============= Outstanding Units 30,322,007 158,398 10,285,555 24,805,097 27,249,715 142,641 Unit Fair Values $ 11.67 $ 4.82 $ 4.58 $ 10.93 $ 7.75 $ 12.97 to to to to to to $ 12.25 $ 4.93 $ 4.77 $ 11.25 $ 8.08 $ 13.79
------------------- MFS Neuberger Research Berman International Real Estate Portfolio B Portfolio B ------------- ------------- ASSETS: Investments at Fair Value: Met Investors Series Trust (Met Investors), continued: Met Investors PIMCO Total Return Bond Portfolio B $ - $ - 31,779,621 shares; cost $364,316,860 Met Investors RCM Global Technology Portfolio - - 149,402 shares; cost $691,875 Met Investors RCM Global Technology Portfolio B - - 9,562,607 shares; cost $41,114,939 Met Investors PIMCO Inflation Protected Bond Portfolio B - - 25,665,502 shares; cost $273,683,242 Met Investors T. Rowe Price Mid-Cap Growth Portfolio B - - 25,869,989 shares; cost $165,933,579 Met Investors MFS Research International Portfolio - - 142,709 shares; cost $1,697,153 Met Investors MFS Research International Portfolio B 203,134,422 - 15,698,178 shares; cost $158,048,951 Met Investors Neuberger Berman Real Estate Portfolio B - 72,233,678 5,119,325 shares; cost $57,628,981 ------------- ------------- Total Investments 203,134,422 72,233,678 Due From MetLife Investors Insurance Company - - Cash and Accounts Receivable - - ------------- ------------- Total Assets 203,134,422 72,233,678 LIABILITIES: Due to MetLife Investors Insurance Company 67 180 ------------- ------------- NET ASSETS $ 203,134,355 $ 72,233,498 ============= ============= Outstanding Units 15,996,541 5,060,098 Unit Fair Values $ 12.30 $ 14.11 to to $ 12.91 $ 14.36
See accompanying notes to financial statements. (Continued) 4 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
Met Investors ------------------------------------------------------------------------------- Turner Goldman Sachs Defensive Moderate Balanced Mid-Cap Mid-Cap Strategy Strategy Strategy Growth Value Fund of Fund of Fund of Portfolio B Portfolio B Fund B Fund B Fund B ------------- ------------- ------------- ------------- -------------- ASSETS: Investments at Fair Value: Met Investors Series Trust (Met Investors), continued: Met Investors Turner Mid-Cap Growth Portfolio B $ 39,253,803 $ - $ - $ - $ - 3,246,799 shares; cost $32,545,755 Met Investors Goldman Sachs Mid-Cap Value Portfolio B - 96,097,106 - - - 7,657,140 shares; cost $87,865,729 Met Investors Defensive Strategy Fund of Fund B - - 270,290,217 - - 26,267,271 shares; cost $263,311,304 Met Investors Moderate Strategy Fund of Fund B - - - 866,351,414 - 81,963,237 shares; cost $829,685,272 Met Investors Balanced Strategy Fund of Fund B - - - - 2,673,665,829 244,841,193 shares; cost $2,523,847,550 Met Investors Growth Strategy Fund of Fund B - - - - - 203,289,127 shares; cost $2,143,466,431 Met Investors Aggressive Strategy Fund of Fund B - - - - - 42,042,747 shares; cost $446,542,242 Met Investors Van Kampen Comstock Portfolio B - - - - - 1,615,625 shares; cost $16,565,245 ------------- ------------- ------------- ------------- -------------- Total Investments 39,253,803 96,097,106 270,290,217 866,351,414 2,673,665,829 Due From MetLife Investors Insurance Company - - - - - Cash and Accounts Receivable - - - - - ------------- ------------- ------------- ------------- -------------- Total Assets 39,253,803 96,097,106 270,290,217 866,351,414 2,673,665,829 LIABILITIES: Due to MetLife Investors Insurance Company 205 115 15 40 9 ------------- ------------- ------------- ------------- -------------- NET ASSETS $ 39,253,598 $ 96,096,991 $ 270,290,202 $ 866,351,374 $2,673,665,820 ============= ============= ============= ============= ============== Outstanding Units 3,230,076 7,266,539 26,019,030 81,402,093 244,234,395 Unit Fair Values $ 12.01 $ 13.08 $ 10.30 $ 10.56 $ 10.86 to to to to to $ 12.23 $ 13.31 $ 10.43 $ 10.69 $ 10.99
---------------------------------- Growth Aggressive Strategy Strategy Van Kampen Fund of Fund of Comstock Fund B Fund B Portfolio B -------------- ------------- ------------- ASSETS: Investments at Fair Value: Met Investors Series Trust (Met Investors), continued: Met Investors Turner Mid-Cap Growth Portfolio B $ - $ - $ - 3,246,799 shares; cost $32,545,755 Met Investors Goldman Sachs Mid-Cap Value Portfolio B - - - 7,657,140 shares; cost $87,865,729 Met Investors Defensive Strategy Fund of Fund B - - - 26,267,271 shares; cost $263,311,304 Met Investors Moderate Strategy Fund of Fund B - - - 81,963,237 shares; cost $829,685,272 Met Investors Balanced Strategy Fund of Fund B - - - 244,841,193 shares; cost $2,523,847,550 Met Investors Growth Strategy Fund of Fund B 2,317,496,053 - - 203,289,127 shares; cost $2,143,466,431 Met Investors Aggressive Strategy Fund of Fund B - 491,059,280 - 42,042,747 shares; cost $446,542,242 Met Investors Van Kampen Comstock Portfolio B - - 16,786,341 1,615,625 shares; cost $16,565,245 -------------- ------------- ------------- Total Investments 2,317,496,053 491,059,280 16,786,341 Due From MetLife Investors Insurance Company - - - Cash and Accounts Receivable - - - -------------- ------------- ------------- Total Assets 2,317,496,053 491,059,280 16,786,341 LIABILITIES: Due to MetLife Investors Insurance Company 31 41 290 -------------- ------------- ------------- NET ASSETS $2,317,496,022 $ 491,059,239 $ 16,786,051 ============== ============= ============= Outstanding Units 203,679,869 42,330,798 1,605,458 Unit Fair Values $ 11.29 $ 11.51 $ 10.41 to to to $ 11.43 $ 11.65 $ 10.48
See accompanying notes to financial statements. (Continued) 5 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
Met Investors AIM --------------------------- ------------------------------------------------------- Legg Mason Met/Putnam Value Capital Premier Capital International Basic Equity Opportunities Equity Appreciation Growth Balanced Portfolio B Portfolio B Fund Fund Fund Fund ------------- ------------- ------------- ------------- ------------- ------------- ASSETS: Investments at Fair Value: Met Investors Series Trust (Met Investors), continued: Met Investors Legg Mason Value Equity Portfolio B $ 1,335,844 $ - $ - $ - $ - $ - 125,431 shares; cost $1,344,569 Met Investors Met/Putnam Capital Opportunities Portfolio B - - - - - - 0 shares; cost $0 AIM Variable Insurance Funds, Inc. (AIM): AIM Premier Equity Fund - - 1,236,131 - - - 55,382 shares; cost $1,441,793 AIM Capital Appreciation Fund - - - 708,492 - - 28,707 shares; cost $743,140 AIM International Growth Fund - - - - 839,473 - 36,231 shares; cost $730,183 AIM Basic Balanced Fund - - - - - 1,025,137 93,279 shares; cost $1,051,377 MFS Variable Insurance Trust (MFS): MFS Research Series - - - - - - 20,524 shares; cost $337,448 MFS Investors Trust Series - - - - - - 8,537 shares; cost $148,751 ------------- ------------- ------------- ------------- ------------- ------------- Total Investments 1,335,844 - 1,236,131 708,492 839,473 1,025,137 Due From MetLife Investors Insurance Company - - - - 1 - Cash and Accounts Receivable - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- Total Assets 1,335,844 - 1,236,131 708,492 839,474 1,025,137 LIABILITIES: Due to MetLife Investors Insurance Company 134 - 19 1 - 2 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS $ 1,335,710 $ - $ 1,236,112 $ 708,491 $ 839,474 $ 1,025,135 ============= ============= ============= ============= ============= ============= Outstanding Units 125,789 - 317,256 146,864 140,508 210,112 Unit Fair Values $ 10.61 $ 14.65 $ 3.90 $ 4.82 $ 5.97 $ 4.88 to to $ 10.63 $ 17.71
MFS --------------------------- Investors Research Trust Series Series ------------- ------------- ASSETS: Investments at Fair Value: Met Investors Series Trust (Met Investors), continued: Met Investors Legg Mason Value Equity Portfolio B $ - $ - 125,431 shares; cost $1,344,569 Met Investors Met/Putnam Capital Opportunities Portfolio B - - 0 shares; cost $0 AIM Variable Insurance Funds, Inc. (AIM): AIM Premier Equity Fund - - 55,382 shares; cost $1,441,793 AIM Capital Appreciation Fund - - 28,707 shares; cost $743,140 AIM International Growth Fund - - 36,231 shares; cost $730,183 AIM Basic Balanced Fund - - 93,279 shares; cost $1,051,377 MFS Variable Insurance Trust (MFS): MFS Research Series 336,792 - 20,524 shares; cost $337,448 MFS Investors Trust Series - 164,684 8,537 shares; cost $148,751 ------------- ------------- Total Investments 336,792 164,684 Due From MetLife Investors Insurance Company 1 1 Cash and Accounts Receivable - - ------------- ------------- Total Assets 336,793 164,685 LIABILITIES: Due to MetLife Investors Insurance Company - - ------------- ------------- NET ASSETS $ 336,793 $ 164,685 ============= ============= Outstanding Units 71,636 36,118 Unit Fair Values $ 4.70 $ 4.56
See accompanying notes to financial statements. (Continued) 6 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
MFS Oppenheimer ------------- ----------------------------------------------------------------------------- Main Street New Main Street Strategic Small-Cap Discovery Growth & Income Bond Bond Growth Money Series Fund Fund Fund Fund Fund ------------- --------------- ------------- ------------- ------------- ------------- ASSETS: Investments at Fair Value: MFS Variable Insurance Trust (MFS), continued: MFS New Discovery Series $ 208,682 $ - $ - $ - $ - $ - 13,334 shares; cost $199,551 Oppenheimer Variable Account Funds (Oppenheimer): Oppenheimer Main Street Growth & Income Fund - 295,227 - - - - 13,549 shares; cost $278,740 Oppenheimer Bond Fund - - 372,458 - - - 33,285 shares; cost $363,885 Oppenheimer Strategic Bond Fund - - - 48,415 - - 9,474 shares; cost $44,809 Oppenheimer Main Street Small- Cap Growth Fund - - - - 190,081 - 11,064 shares; cost $134,156 Oppenheimer Money Fund - - - - - 195,114 195,114 shares; cost $195,114 Oppenheimer Capital Appreciation Fund - - - - - - 0 shares; cost $0 Variable Insurance Products Fund, Fund II, and Fund III (Fidelity): Fidelity Asset Manager Portfolio - - - - - - 9,971,060 shares; cost $157,706,288 ------------- ------------- ------------- ------------- ------------- ------------- Total Investments 208,682 295,227 372,458 48,415 190,081 195,114 Due From MetLife Investors Insurance Company - 1 1 - - 264 Cash and Accounts Receivable - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- Total Assets 208,682 295,228 372,459 48,415 190,081 195,378 LIABILITIES: Due to MetLife Investors Insurance Company - - - 1 1 - ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS $ 208,682 $ 295,228 $ 372,459 $ 48,414 $ 190,080 $ 195,378 ============= ============= ============= ============= ============= ============= Outstanding Units 32,199 61,558 56,108 6,741 20,466 35,829 Unit Fair Values $ 6.48 $ 4.80 $ 6.64 $ 7.18 $ 9.29 $ 5.45
Fidelity -------- ------------- Capital Asset Appreciation Manager Fund Portfolio ------------- ------------- ASSETS: Investments at Fair Value: MFS Variable Insurance Trust (MFS), continued: MFS New Discovery Series $ - $ - 13,334 shares; cost $199,551 Oppenheimer Variable Account Funds (Oppenheimer): Oppenheimer Main Street Growth & Income Fund - - 13,549 shares; cost $278,740 Oppenheimer Bond Fund - - 33,285 shares; cost $363,885 Oppenheimer Strategic Bond Fund - - 9,474 shares; cost $44,809 Oppenheimer Main Street Small- Cap Growth Fund - - 11,064 shares; cost $134,156 Oppenheimer Money Fund - - 195,114 shares; cost $195,114 Oppenheimer Capital Appreciation Fund - - 0 shares; cost $0 Variable Insurance Products Fund, Fund II, and Fund III (Fidelity): Fidelity Asset Manager Portfolio - 149,964,736 9,971,060 shares; cost $157,706,288 ------------- ------------- Total Investments - 149,964,736 Due From MetLife Investors Insurance Company - - Cash and Accounts Receivable - - ------------- ------------- Total Assets - 149,964,736 LIABILITIES: Due to MetLife Investors Insurance Company - 1 ------------- ------------- NET ASSETS $ - $ 149,964,735 ============= ============= Outstanding Units - 14,833,146 Unit Fair Values $ 66.58 $ 10.03 to to $ 72.34 $ 10.20
See accompanying notes to financial statements. (Continued) 7 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
Fidelity -------------------------------------------------------------------------------------- Money Growth Contrafund Overseas Equity-Income Index 500 Market Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio ------------- ------------- ------------- ------------- ------------- ------------- ASSETS: Investments at Fair Value: Variable Insurance Products Fund, Fund II, and Fund III (Fidelity), continued: Fidelity Growth Portfolio $ 231,030,572 $ - $ - $ - $ - $ - 6,855,507 shares; cost $260,154,771 Fidelity Contrafund Portfolio - 315,980,963 - - - - 10,183,080 shares; cost $218,142,803 Fidelity Overseas Portfolio - - 11,307,290 - - - 548,631 shares; cost $10,117,095 Fidelity Equity-Income Portfolio - - - 20,594,608 - - 807,949 shares; cost $18,737,832 Fidelity Index 500 Portfolio - - - - 139,624,436 - 984,102 shares; cost $125,077,273 Fidelity Money Market Portfolio - - - - - 31,496,481 31,496,481 shares; cost $31,496,481 Fidelity Mid-Cap Portfolio B - - - - - - 0 shares; cost $0 Fidelity Contrafund Portfolio B - - - - - - 2,814 shares; cost $87,425 ------------- ------------- ------------- ------------- ------------- ------------- Total Investments 231,030,572 315,980,963 11,307,290 20,594,608 139,624,436 31,496,481 Due From MetLife Investors Insurance Company 4 - 1 - 10 33 Cash and Accounts Receivable - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- Total Assets 231,030,576 315,980,963 11,307,291 20,594,608 139,624,446 31,496,514 LIABILITIES: Due to MetLife Investors Insurance Company - 4 - 1 - - ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS $ 231,030,576 $ 315,980,959 $ 11,307,291 $ 20,594,607 $ 139,624,446 $ 31,496,514 ============= ============= ============= ============= ============= ============= Outstanding Units 18,327,783 18,306,992 1,115,424 1,681,844 9,738,122 4,560,029 Unit Fair Values $ 12.57 $ 9.69 $ 9.36 $ 12.25 $ 14.28 $ 6.85 to to to to to $ 12.66 $ 17.32 $ 10.79 $ 14.55 $ 7.25
------------------------- Mid-Cap Contrafund Portfolio B Portfolio B ------------- ------------- ASSETS: Investments at Fair Value: Variable Insurance Products Fund, Fund II, and Fund III (Fidelity), continued: Fidelity Growth Portfolio $ - $ - 6,855,507 shares; cost $260,154,771 Fidelity Contrafund Portfolio - - 10,183,080 shares; cost $218,142,803 Fidelity Overseas Portfolio - - 548,631 shares; cost $10,117,095 Fidelity Equity-Income Portfolio - - 807,949 shares; cost $18,737,832 Fidelity Index 500 Portfolio - - 984,102 shares; cost $125,077,273 Fidelity Money Market Portfolio - - 31,496,481 shares; cost $31,496,481 Fidelity Mid-Cap Portfolio B - - 0 shares; cost $0 Fidelity Contrafund Portfolio B - 87,046 2,814 shares; cost $87,425 ------------- ------------- Total Investments - 87,046 Due From MetLife Investors Insurance Company - - Cash and Accounts Receivable - - ------------- ------------- Total Assets - 87,046 LIABILITIES: Due to MetLife Investors Insurance Company - 32 ------------- ------------- NET ASSETS $ - $ 87,014 ============= ============= Outstanding Units - 2,419 Unit Fair Values $ 31.55 $ 33.90 to to $ 32.45 $ 37.22
See accompanying notes to financial statements. (Continued) 8 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
Scudder I MetLife ------------- --------------------------------------------------------------------------- FI FI FI Russell 2000 International International Stock International Mid-Cap Index Stock Stock Index Portfolio Portfolio Portfolio Portfolio Portfolio B Portfolio ------------- ------------- ------------- ------------- ------------- ------------- ASSETS: Investments at Fair Value: Scudder I: Scudder International Portfolio $ 27,740,667 $ - $ - $ - $ - $ - 2,556,744 shares; cost $26,975,145 Metropolitan Series Funds, Inc. (MetLife): MetLife FI Mid-Cap Portfolio - 4,104,053 - - - - 234,920 shares; cost $3,754,852 MetLife Russell 2000 Index Portfolio - - 7,123,561 - - - 511,750 shares; cost $6,788,674 MetLife FI International Stock Portfolio - - - 683,054 - - 50,672 shares; cost $538,598 MetLife FI International Stock Portfolio B - - - - - - 0 shares; cost $0 MetLife Stock Index Portfolio - - - - - 79,692,276 2,400,370 shares; cost $65,329,758 MetLife Stock Index Portfolio B - - - - - - 6,849,690 shares; cost $187,742,475 MetLife BlackRock Legacy Large- Cap Growth - - - - - - 20,423 shares; cost $409,301 ------------- ------------- ------------- ------------- ------------- ------------- Total Investments 27,740,667 4,104,053 7,123,561 683,054 - 79,692,276 Due From MetLife Investors Insurance Company 1 - - 1 - 6 Cash and Accounts Receivable - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- Total Assets 27,740,668 4,104,053 7,123,561 683,055 - 79,692,282 LIABILITIES: Due to MetLife Investors Insurance Company - 3 - - - - ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS $ 27,740,668 $ 4,104,050 $ 7,123,561 $ 683,055 $ - $ 79,692,282 ============= ============= ============= ============= ============= ============= Outstanding Units 3,098,930 579,118 508,847 140,779 - 1,986,282 Unit Fair Values $ 8.91 $ 2.34 $ 6.17 $ 4.85 $ 14.55 $ 39.91 to to to to to $ 8.95 $ 20.09 $ 16.85 $ 16.91 $ 43.18
---------------------- BlackRock Stock Legacy Index Large-Cap Portfolio B Growth ------------- ------------- ASSETS: Investments at Fair Value: Scudder I: Scudder International Portfolio $ - $ - 2,556,744 shares; cost $26,975,145 Metropolitan Series Funds, Inc. (MetLife): MetLife FI Mid-Cap Portfolio - - 234,920 shares; cost $3,754,852 MetLife Russell 2000 Index Portfolio - - 511,750 shares; cost $6,788,674 MetLife FI International Stock Portfolio - - 50,672 shares; cost $538,598 MetLife FI International Stock Portfolio B - - 0 shares; cost $0 MetLife Stock Index Portfolio - - 2,400,370 shares; cost $65,329,758 MetLife Stock Index Portfolio B 221,998,445 - 6,849,690 shares; cost $187,742,475 MetLife BlackRock Legacy Large- Cap Growth - 443,191 20,423 shares; cost $409,301 ------------- ------------- Total Investments 221,998,445 443,191 Due From MetLife Investors Insurance Company - - Cash and Accounts Receivable - - ------------- ------------- Total Assets 221,998,445 443,191 LIABILITIES: Due to MetLife Investors Insurance Company 28 2 ------------- ------------- NET ASSETS $ 221,998,417 $ 443,189 ============= ============= Outstanding Units 19,154,664 16,067 Unit Fair Values $ 11.29 $ 27.57 to to $ 11.75 $ 29.03
See accompanying notes to financial statements. (Continued) 9 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
MetLife -------------------------------------------------------------------------------------- BlackRock BlackRock BlackRock Lehman Brothers Harris Oakmark Morgan Strategic Bond Large-Cap Aggregate Large-Cap Stanley Value Income Value Bond Index Value EAFE Index Class A Class A Class A Class A Class A Class A ------------- ------------- ------------- --------------- -------------- ------------- ASSETS: Investments at Fair Value: Metropolitan Series Funds, Inc. (MetLife), continued: MetLife BlackRock Strategic Value Class A $ 11,283,337 $ - $ - $ - $ - $ - 607,938 shares; cost $10,420,772 MetLife BlackRock Bond Income Class A - 3,363,790 - - - - 30,444 shares; cost $3,395,104 MetLife BlackRock Large-Cap Value Class A - - 959,194 - - - 76,369 shares; cost $890,801 MetLife Lehman Brothers Aggregate Bond Index Class A - - - 3,972,358 - - 367,471 shares; cost $3,990,604 MetLife Harris Oakmark Large Cap Value Class A - - - - 5,483,921 - 418,940 shares; cost $5,197,115 MetLife Morgan Stanley EAFE Index Class A - - - - - 8,127,890 627,636 shares; cost $6,780,836 MetLife MFS Total Return Class A - - - - - - 53,607 shares; cost $7,669,745 MetLife Mid-Cap Stock Index Class A - - - - - - 547,429 shares; cost $6,905,917 ------------- ------------- ------------- ------------- ------------- ------------- Total Investments 11,283,337 3,363,790 959,194 3,972,358 5,483,921 8,127,890 Due From MetLife Investors Insurance Company - - 1 - - - Cash and Accounts Receivable - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- Total Assets 11,283,337 3,363,790 959,195 3,972,358 5,483,921 8,127,890 LIABILITIES: Due to MetLife Investors Insurance Company 1 8 - - - - ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS $ 11,283,336 $ 3,363,782 $ 959,195 $ 3,972,358 $ 5,483,921 $ 8,127,890 ============= ============= ============= ============= ============= ============= Outstanding Units 598,942 69,533 77,212 300,648 423,013 636,754 Unit Fair Values $ 18.84 $ 47.73 $ 12.42 $ 13.19 $ 12.96 $ 12.76 to to to to to to $ 19.32 $ 53.50 $ 12.63 $ 13.63 $ 13.39 $ 13.19
---------------------------- MFS Total Mid-Cap Return Stock Index Class A Class A ------------- ------------- ASSETS: Investments at Fair Value: Metropolitan Series Funds, Inc. (MetLife), continued: MetLife BlackRock Strategic Value Class A $ - $ - 607,938 shares; cost $10,420,772 MetLife BlackRock Bond Income Class A - - 30,444 shares; cost $3,395,104 MetLife BlackRock Large-Cap Value Class A - - 76,369 shares; cost $890,801 MetLife Lehman Brothers Aggregate Bond Index Class A - - 367,471 shares; cost $3,990,604 MetLife Harris Oakmark Large Cap Value Class A - - 418,940 shares; cost $5,197,115 MetLife Morgan Stanley EAFE Index Class A - - 627,636 shares; cost $6,780,836 MetLife MFS Total Return Class A 7,938,023 - 53,607 shares; cost $7,669,745 MetLife Mid-Cap Stock Index Class A - 7,899,399 547,429 shares; cost $6,905,917 ------------- ------------- Total Investments 7,938,023 7,899,399 Due From MetLife Investors Insurance Company 34 - Cash and Accounts Receivable - - ------------- ------------- Total Assets 7,938,057 7,899,399 LIABILITIES: Due to MetLife Investors Insurance Company - 1 ------------- ------------- NET ASSETS $ 7,938,057 $ 7,899,398 ============= ============= Outstanding Units 183,329 538,128 Unit Fair Values $ 42.86 $ 14.67 to to $ 47.15 $ 15.04
See accompanying notes to financial statements. (Continued) 10 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
MetLife ----------------------------------------------------------------------------------- Davis Davis Harris Harris Venture Venture Oakmark Oakmark Jennison Jennison Value Value Focused Value Focused Value Growth Growth Fund Fund E Fund A Fund B Portfolio A Portfolio B ------------- ------------- ------------- ------------- ------------- ------------- ASSETS: Investments at Fair Value: Metropolitan Series Funds, Inc. (MetLife), continued: MetLife Davis Venture Value Fund $ 6,133,833 $ - $ - $ - $ - $ - 198,442 shares; cost $5,484,118 MetLife Davis Venture Value Fund E - 568,639,391 - - - - 18,486,326 shares; cost $470,259,091 MetLife Harris Oakmark Focused Value Fund A - - 21,448,400 - - - 80,885 shares; cost $18,973,153 MetLife Harris Oakmark Focused Value Fund B - - - 377,617,919 - - 1,450,480 shares; cost $302,747,185 MetLife Jennison Growth Portfolio A - - - - 368,071 - 29,731 shares; cost $302,993 MetLife Jennison Growth Portfolio B - - - - - 183,756,013 14,903,164 shares; cost $150,238,115 MetLife BlackRock Money Market Portfolio A - - - - - - 426 shares; cost $42,532 MetLife BlackRock Money Market Portfolio B - - - - - - 1,237,430 shares; cost $123,743,018 ------------- ------------- ------------- ------------- ------------- ------------- Total Investments 6,133,833 568,639,391 21,448,400 377,617,919 368,071 183,756,013 Due From MetLife Investors Insurance Company 1 - - - - - Cash and Accounts Receivable - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- Total Assets 6,133,834 568,639,391 21,448,400 377,617,919 368,071 183,756,013 LIABILITIES: Due to MetLife Investors Insurance Company - 31 17 39 1 41 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS $ 6,133,834 $ 568,639,360 $ 21,448,383 $ 377,617,880 $ 368,070 $ 183,755,972 ============= ============= ============= ============= ============= ============= Outstanding Units 177,847 44,430,046 579,120 23,363,834 152,268 15,807,330 Unit Fair Values $ 34.46 $ 12.46 $ 37.02 $ 15.75 $ 2.42 $ 11.37 to to to to to $ 36.27 $ 13.00 $ 39.25 $ 16.43 $ 11.78
---------------------------- BlackRock BlackRock Money Money Market Market Portfolio A Portfolio B ------------- ------------- ASSETS: Investments at Fair Value: Metropolitan Series Funds, Inc. (MetLife), continued: MetLife Davis Venture Value Fund $ - $ - 198,442 shares; cost $5,484,118 MetLife Davis Venture Value Fund E - - 18,486,326 shares; cost $470,259,091 MetLife Harris Oakmark Focused Value Fund A - - 80,885 shares; cost $18,973,153 MetLife Harris Oakmark Focused Value Fund B - - 1,450,480 shares; cost $302,747,185 MetLife Jennison Growth Portfolio A - - 29,731 shares; cost $302,993 MetLife Jennison Growth Portfolio B - - 14,903,164 shares; cost $150,238,115 MetLife BlackRock Money Market Portfolio A 42,532 - 426 shares; cost $42,532 MetLife BlackRock Money Market Portfolio B - 123,743,018 1,237,430 shares; cost $123,743,018 ------------- ------------- Total Investments 42,532 123,743,018 Due From MetLife Investors Insurance Company 86 21 Cash and Accounts Receivable - - ------------- ------------- Total Assets 42,618 123,743,039 LIABILITIES: Due to MetLife Investors Insurance Company - - ------------- ------------- NET ASSETS $ 42,618 $ 123,743,039 ============= ============= Outstanding Units 1,819 12,429,599 Unit Fair Values $ 23.43 $ 9.70 to $ 10.12
See accompanying notes to financial statements. (Continued) 11 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
MetLife Van Kampen ------------------------------------------- ----------------------------------------------- T. Rowe Price Salomon Oppenheimer Small-Cap Brothers Global Emerging Emerging Growth U.S. Government Equity Growth Growth Enterprise Class A Class B Portfolio B Fund Fund B Fund ------------- --------------- ------------- ------------- ------------- ------------- ASSETS: Investments at Fair Value: Metropolitan Series Funds, Inc. (MetLife), continued: MetLife T. Rowe Price Small-Cap Growth Class A $ 932,544 $ - $ - $ - $ - $ - 61,635 shares; cost $821,413 MetLife Salomon Brothers U.S. Government Class B - 6,041,051 - - - - 496,797 shares; cost $6,033,196 MetLife Oppenheimer Global Equity Portfolio B - - - - - - 0 shares; cost $0 VanKampen LIT Funds (VanKampen): Van Kampen Emerging Growth Fund - - - 402,323 - - 14,364 shares; cost $458,910 Van Kampen Emerging Growth Fund B - - - - - - 0 shares; cost $0 Van Kampen Enterprise Fund - - - - - 160,314 10,980 shares; cost $164,914 Van Kampen Growth & Income Fund - - - - - - 13,322 shares; cost $206,578 Van Kampen Growth & Income Fund B - - - - - - 0 shares; cost $0 ------------- ------------- ------------- ------------- ------------- ------------- Total Investments 932,544 6,041,051 - 402,323 - 160,314 Due From MetLife Investors Insurance Company 1 - - 1 - - Cash and Accounts Receivable - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- Total Assets 932,545 6,041,051 - 402,324 - 160,314 LIABILITIES: Due to MetLife Investors Insurance Company - 268 - - - 1 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS $ 932,545 $ 6,040,783 $ - $ 402,324 $ - $ 160,313 ============= ============= ============= ============= ============= ============= Outstanding Units 63,311 391,235 - 88,859 - 43,297 Unit Fair Values $ 14.64 $ 14.20 $ 16.10 $ 4.53 $ 4.61 $ 3.70 to to to to $ 16.45 $ 15.96 $ 16.68 $ 4.81
---------------------- Growth & Growth & Income Income Fund Fund B ------------- ------------- ASSETS: Investments at Fair Value: Metropolitan Series Funds, Inc. (MetLife), continued: MetLife T. Rowe Price Small-Cap Growth Class A $ - $ - 61,635 shares; cost $821,413 MetLife Salomon Brothers U.S. Government Class B - - 496,797 shares; cost $6,033,196 MetLife Oppenheimer Global Equity Portfolio B - - 0 shares; cost $0 VanKampen LIT Funds (VanKampen): Van Kampen Emerging Growth Fund - - 14,364 shares; cost $458,910 Van Kampen Emerging Growth Fund B - - 0 shares; cost $0 Van Kampen Enterprise Fund - - 10,980 shares; cost $164,914 Van Kampen Growth & Income Fund 272,973 - 13,322 shares; cost $206,578 Van Kampen Growth & Income Fund B - - 0 shares; cost $0 ------------- ------------- Total Investments 272,973 - Due From MetLife Investors Insurance Company - - Cash and Accounts Receivable - - ------------- ------------- Total Assets 272,973 - LIABILITIES: Due to MetLife Investors Insurance Company - - ------------- ------------- NET ASSETS $ 272,973 $ - ============= ============= Outstanding Units 43,633 - Unit Fair Values $ 6.26 $ 12.16 to $ 12.42
See accompanying notes to financial statements. (Continued) 12 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
Van Kampen Federated Neuberger ----------- ----------------------------------- ------------- Equity High Income Growth Comstock Income Bond Strategic Genesis Trust Fund B Fund Fund Fund Class A ----------- ----------- ----------- ----------- ------------- ASSETS: Investments at Fair Value: Van Kampen LIT Funds (Van Kampen), continued: Van Kampen LIT Comstock Fund B $ - $ - $ - $ - $ - 0 shares; cost $0 Federated Investors Insurance Company (Federated): Federated Equity Income Fund - 86,265 - - - 6,357 shares; cost $81,057 Federated High Income Bond Fund - - 132,651 - - 17,138 shares; cost $133,610 Federated Growth Strategic Fund - - - 188,802 - 7,970 shares; cost $223,545 Neuberger: Neuberger Genesis Trust Class A - - - - 14,019 287 shares; cost $8,519 The Alger American Fund (Alger): Alger American Small-Capitalization Fund - - - - - 2,835,408 shares; cost $83,722,375 T. Rowe Price Funds (T. Rowe): T. Rowe Price Growth Fund - - - - - 359,117 shares; cost $9,801,986 T. Rowe Price International Fund - - - - - 81,103 shares; cost $1,096,348 ----------- ----------- ----------- ----------- ----------- Total Investments - 86,265 132,651 188,802 14,019 Due From MetLife Investors Insurance Company - - 1 - - Cash and Accounts Receivable - - - - - ----------- ----------- ----------- ----------- ----------- Total Assets - 86,265 132,652 188,802 14,019 LIABILITIES: Due to MetLife Investors Insurance Company - 1 - 1 66 ----------- ----------- ----------- ----------- ----------- NET ASSETS $ - $ 86,264 $ 132,652 $ 188,801 $ 13,953 =========== =========== =========== =========== =========== Outstanding Units - 18,507 22,143 35,001 1,183 Unit Fair Values $ 13.26 $ 4.66 $ 5.99 $ 5.39 $ 11.79 to $ 13.54
Alger T. Rowe -------------- ------------------------- American Small Capitalization Growth International Fund Fund Fund -------------- ----------- ------------- ASSETS: Investments at Fair Value: Van Kampen LIT Funds (Van Kampen), continued: Van Kampen LIT Comstock Fund B $ - $ - $ - 0 shares; cost $0 Federated Investors Insurance Company (Federated): Federated Equity Income Fund - - - 6,357 shares; cost $81,057 Federated High Income Bond Fund - - - 17,138 shares; cost $133,610 Federated Growth Strategic Fund - - - 7,970 shares; cost $223,545 Neuberger: Neuberger Genesis Trust Class A - - - 287 shares; cost $8,519 The Alger American Fund (Alger): Alger American Small-Capitalization Fund 67,142,469 - - 2,835,408 shares; cost $83,722,375 T. Rowe Price Funds (T. Rowe): T. Rowe Price Growth Fund - 10,198,927 - 359,117 shares; cost $9,801,986 T. Rowe Price International Fund - - 1,199,508 81,103 shares; cost $1,096,348 ----------- ----------- ----------- Total Investments 67,142,469 10,198,927 1,199,508 Due From MetLife Investors Insurance Company 1 1 - Cash and Accounts Receivable - - - ----------- ----------- ----------- Total Assets 67,142,470 10,198,928 1,199,508 LIABILITIES: Due to MetLife Investors Insurance Company - - 1 ----------- ----------- ----------- NET ASSETS $67,142,470 $10,198,928 $ 1,199,507 =========== =========== =========== Outstanding Units 8,307,133 142,212 102,719 Unit Fair Values $ 8.05 $ 71.72 $ 11.68 to $ 8.11
See accompanying notes to financial statements. (Continued) 13 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
T. Rowe Janus American ------------- ------------- ------------------------------------------------------- Aspen Worldwide Global Growth & Global Prime Reserve Growth Small-Cap Growth Income Growth Fund Class A Fund Fund Fund Fund B ------------- ------------- ------------- ------------- ------------- ------------- ASSETS: Investments at Fair Value: T. Rowe Price Funds (T. Rowe), continued: T. Rowe Price Prime Reserve Fund $ 1,387,503 $ - $ - $ - $ - $ - 1,387,503 shares; cost $1,387,503 Janus Capital Funds Corp. (Janus): Janus Aspen Worldwide Growth Class A - 9,069 - - - - 325 shares; cost $7,520 American Funds Corp. (American): American Global Small-Cap Fund - - 11,408,823 - - - 540,191 shares; cost $9,312,359 American Growth Fund - - - 30,740,599 - - 521,204 shares; cost $25,079,857 American Growth & Income Fund - - - - 20,563,508 - 539,441 shares; cost $18,547,591 American Global Growth Fund B - - - - - 473,628 24,264 shares; cost $471,201 Alliance Variable Products Series Fund, Inc. (Alliance): Alliance Bernstein Large-Cap Growth Fund B - - - - - - 0 shares; cost $0 Franklin Templeton Variable Insurance Products Trust (Templeton): Templeton Developing Markets Fund B - - - - - - 21,136 shares; cost $225,086 ------------- ------------- ------------- ------------- ------------- ------------- Total Investments 1,387,503 9,069 11,408,823 30,740,599 20,563,508 473,628 Due From MetLife Investors Insurance Company 2 6 1 - - - Cash and Accounts Receivable - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- Total Assets 1,387,505 9,075 11,408,824 30,740,599 20,563,508 473,628 LIABILITIES: Due to MetLife Investors Insurance Company - - - 192 162 169 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS $ 1,387,505 $ 9,075 $ 11,408,824 $ 30,740,407 $ 20,563,346 $473,459 ============= ============= ============= ============= ============= ============= Outstanding Units 82,793 1,375 470,780 208,063 199,680 22,386 Unit Fair Values $ 16.76 $ 6.60 $ 24.22 $ 120.44 $ 83.76 $ 20.17 to to to to $ 25.09 $ 164.02 $ 114.07 $ 21.81
Alliance Templeton ------------- ------------- Bernstein Large-Cap Developing Growth Markets Fund B Fund B ------------- ------------- ASSETS: Investments at Fair Value: T. Rowe Price Funds (T. Rowe), continued: T. Rowe Price Prime Reserve Fund $ - $ - 1,387,503 shares; cost $1,387,503 Janus Capital Funds Corp. (Janus): Janus Aspen Worldwide Growth Class A - - 325 shares; cost $7,520 American Funds Corp. (American): American Global Small-Cap Fund - - 540,191 shares; cost $9,312,359 American Growth Fund - - 521,204 shares; cost $25,079,857 American Growth & Income Fund - - 539,441 shares; cost $18,547,591 American Global Growth Fund B - - 24,264 shares; cost $471,201 Alliance Variable Products Series Fund, Inc. (Alliance): Alliance Bernstein Large-Cap Growth Fund B - - 0 shares; cost $0 Franklin Templeton Variable Insurance Products Trust (Templeton): Templeton Developing Markets Fund B - 230,380 21,136 shares; cost $225,086 ------------- ------------- Total Investments - 230,380 Due From MetLife Investors Insurance Company - - Cash and Accounts Receivable - - ------------- ------------- Total Assets - 230,380 LIABILITIES: Due to MetLife Investors Insurance Company - 148 ------------- ------------- NET ASSETS $ - $ 230,232 ============= ============= Outstanding Units - 21,537 Unit Fair Values $ 32.67 $ 9.76 to to $ 34.49 $ 16.02
See accompanying notes to financial statements. (Continued) 14 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
Templeton Lazard ------------------------------------------------------- ------------- VIP Foreign Growth Mutual Shares Income Retirement Securities Securities Securities Securities Small-Cap Fund B Fund B Fund B Fund B Portfolio ------------- ------------- ------------- ------------- ------------- ASSETS: Investments at Fair Value: Franklin Templeton Variable Insurance Products Trust (Templeton), continued: Templeton Foreign Securities Fund B $ 813,909 $ - $ - $ - $ - 52,107 shares; cost $802,356 Templeton Growth Securities Fund B - - - - - 0 shares; cost $0 Templeton Mutual Shares Securities Fund B - - 217,567 - - 11,974 shares; cost $214,110 Templeton VIP Income Securities Fund B - - - 150,988 - 9,856 shares; cost $150,767 Lazard: Lazard Retirement Small-Cap Portfolio - - - - 23,238 1,425 shares; cost $23,530 Morgan Stanley: Morgan Stanley UIF Equity and Income Portfolio B - - - - - 0 shares; cost $0 Morgan Stanley UIF U.S. Real Estate Portfolio - - - - - 0 shares; cost $0 Pioneer: Pioneer VCT Mid-Cap Portfolio B - - - - - 0 shares; cost $0 ------------- ------------- ------------- ------------- ------------- Total Investments 813,909 - 217,567 150,988 23,238 Due From MetLife Investors Insurance Company - - - - - Cash and Accounts Receivable - - - - - ------------- ------------- ------------- ------------- ------------- Total Assets 813,909 - 217,567 150,988 23,238 LIABILITIES: Due to MetLife Investors Insurance Company 158 - 54 63 6 ------------- ------------- ------------- ------------- ------------- NET ASSETS $ 813,751 $ - $ 217,513 $ 150,925 $ 23,232 ============= ============= ============= ============= ============= Outstanding Units 33,847 - 11,181 4,136 1,373 Unit Fair Values $ 11.63 $ 15.41 $ 18.72 $ 33.58 $ 16.11 to to to to to $ 27.51 $ 16.46 $ 20.33 $ 38.78 $ 16.92
Morgan Stanley Pioneer --------------------------- ------------- UIF Equity UIF U.S. VCT and Income Real Estate Mid-Cap Portfolio B Portfolio Portfolio B ------------- ------------- ------------- ASSETS: Investments at Fair Value: Franklin Templeton Variable Insurance Products Trust (Templeton), continued: Templeton Foreign Securities Fund B $ - $ - $ - 52,107 shares; cost $802,356 Templeton Growth Securities Fund B - - - 0 shares; cost $0 Templeton Mutual Shares Securities Fund B - - - 11,974 shares; cost $214,110 Templeton VIP Income Securities Fund B - - - 9,856 shares; cost $150,767 Lazard: Lazard Retirement Small-Cap Portfolio - - - 1,425 shares; cost $23,530 Morgan Stanley: Morgan Stanley UIF Equity and Income Portfolio B - - - 0 shares; cost $0 Morgan Stanley UIF U.S. Real Estate Portfolio - - - 0 shares; cost $0 Pioneer: Pioneer VCT Mid-Cap Portfolio B - - - 0 shares; cost $0 ------------- ------------- ------------- Total Investments - - - Due From MetLife Investors Insurance Company - - - Cash and Accounts Receivable - - - ------------- ------------- ------------- Total Assets - - - LIABILITIES: Due to MetLife Investors Insurance Company - - - ------------- ------------- ------------- NET ASSETS $ - $ - $ - ============= ============= ============= Outstanding Units - - - Unit Fair Values $ 13.34 $ 21.80 $ 27.60 to to to $ 13.49 $ 22.20 $ 28.83
See accompanying notes to financial statements. (Continued) 15 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
Putnam Salomon Brothers ------------- ----------------------------------------- --------------- VT Variable Greenwich Small-Cap High Yield Variable VSF Investors Street Value Bond Small-Cap Fund Appreciation Fund B Portfolio Portfolio Portfolio Portfolio ------------- ------------- ------------- ------------- ------------- ASSETS: Investments at Fair Value: Putnam Variable Trust (Putnam): Putnam VT Small-Cap Value Fund B $ - $ - $ - $ - $ - 0 shares; cost $0 Salomon Brothers: Salomon Brothers Variable High Yield Bond Portfolio - 51,579 - - - 5,441 shares; cost $55,196 Salomon Brothers Variable Small- Cap Portfolio - - 185,668 - - 13,608 shares; cost $195,944 Salomon Brothers VSF Investors Fund Portfolio - - - 95,560 - 6,572 shares; cost $97,021 Smith Barney: Smith Barney Greenwich Street Appreciation Portfolio - - - - 47,025 1,941 shares; cost $47,713 Smith Barney Equity Index Fund Portfolio B - - - - - 651 shares; cost $20,241 Smith Barney Greenwich Fundamental Value Portfolio - - - - - 1,668 shares; cost $36,770 Smith Barney Multi-Discipline Balanced All Cap Growth and Value Portfolio - - - - - 2,609 shares; cost $35,667 ------------- ------------- ------------- ------------- ------------- Total Investments - 51,579 185,668 95,560 47,025 Due From MetLife Investors Insurance Company - - 1,471 56 - Cash and Accounts Receivable - - - - - ------------- ------------- ------------- ------------- ------------- Total Assets - 51,579 187,139 95,616 47,025 LIABILITIES: Due to MetLife Investors Insurance Company - 63 78 22 18 ------------- ------------- ------------- ------------- ------------- NET ASSETS $ - $ 51,516 $ 187,061 $ 95,594 $ 47,007 ============= ============= ============= ============= ============= Outstanding Units - 3,458 15,787 6,750 1,722 Unit Fair Values $ 22.12 $ 14.31 $ 11.63 $ 13.62 $ 24.91 to to to to to $ 22.72 $ 15.33 $ 12.01 $ 14.62 $ 28.31
Smith Barney ------------------------------------------- Greenwich Multi-Discipline Equity Index Fundamental Balanced All Cap Fund Value Growth & Value Portfolio B Portfolio Portfolio ------------- ------------- ---------------- ASSETS: Investments at Fair Value: Putnam Variable Trust (Putnam): Putnam VT Small-Cap Value Fund B $ - $ - $ - 0 shares; cost $0 Salomon Brothers: Salomon Brothers Variable High Yield Bond Portfolio - - - 5,441 shares; cost $55,196 Salomon Brothers Variable Small- Cap Portfolio - - - 13,608 shares; cost $195,944 Salomon Brothers VSF Investors Fund Portfolio - - - 6,572 shares; cost $97,021 Smith Barney: Smith Barney Greenwich Street Appreciation Portfolio - - - 1,941 shares; cost $47,713 Smith Barney Equity Index Fund Portfolio B 19,795 - - 651 shares; cost $20,241 Smith Barney Greenwich Fundamental Value Portfolio - 34,431 - 1,668 shares; cost $36,770 Smith Barney Multi-Discipline Balanced All Cap Growth and Value Portfolio - - 35,096 2,609 shares; cost $35,667 ------------- ------------- ------------- Total Investments 19,795 34,431 35,096 Due From MetLife Investors Insurance Company - - - Cash and Accounts Receivable - - - ------------- ------------- ------------- Total Assets 19,795 34,431 35,096 LIABILITIES: Due to MetLife Investors Insurance Company 22 55 28 ------------- ------------- ------------- NET ASSETS $ 19,773 $ 34,376 $ 35,068 ============= ============= ============= Outstanding Units 2,224 1,160 2,660 Unit Fair Values $ 8.54 $ 27.73 $ 12.93 to to to $ 9.03 $ 30.92 $ 13.29
See accompanying notes to financial statements. (Continued) 16 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
Smith Barney -------------------------------------------------------------------------------------------- Multi-Discipline Multi-Discipline Multi-Discipline Allocation Allocation Allocation Large-Cap All Cap Global All Cap Select Select Select Growth & Value Growth Value Growth & Value Balanced Growth High Growth Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio ---------------- ---------------- ---------------- ------------- ------------- ------------- ASSETS: Investments at Fair Value: Smith Barney, continued: Smith Barney Multi-Discipline Large-Cap Growth and Value Portfolio $ 30,962 $ - $ - $ - $ - $ - 2,116 shares; cost $31,912 Smith Barney Multi-Discipline All Cap Growth Value Portfolio - 142,627 - - - - 9,359 shares; cost $146,793 Smith Barney Multi-Discipline Global All Cap Growth and Value Portfolio - - 159,052 - - - 9,836 shares; cost $161,202 Smith Barney Allocation Select Balanced Portfolio - - - - - - 0 shares; cost $0 Smith Barney Allocation Select Growth Portfolio - - - - - - 0 shares; cost $0 Smith Barney Allocation Select High Growth Portfolio - - - - - - 0 shares; cost $0 Smith Barney Capital and Income Portfolio - - - - - - 0 shares; cost $0 Smith Barney IS Dividend Strategy Portfolio - - - - - - 3,683 shares; cost $32,722 ------------- ------------- ------------- ------------- ------------- ------------- Total Investments 30,962 142,627 159,052 - - - Due From MetLife Investors Insurance Company - - - - - - Cash and Accounts Receivable - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- Total Assets 30,962 142,627 159,052 - - - LIABILITIES: Due to MetLife Investors Insurance Company 31 76 - - - - ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS $ 30,931 $ 142,551 $ 159,052 $ - $ - $ - ============= ============= ============= ============= ============= ============= Outstanding Units 2,136 9,633 10,041 - - - Unit Fair Values $ 14.20 $ 14.58 $ 15.46 $ 14.37 $ 13.08 $ 13.59 to to to to to to $ 14.62 $ 15.01 $ 15.92 $ 14.89 $ 13.55 $ 14.08
---------------------------- Capital and IS Dividend Income Strategy Portfolio Portfolio ------------- ------------- ASSETS: Investments at Fair Value: Smith Barney, continued: Smith Barney Multi-Discipline Large-Cap Growth and Value Portfolio $ - $ - 2,116 shares; cost $31,912 Smith Barney Multi-Discipline All Cap Growth Value Portfolio - - 9,359 shares; cost $146,793 Smith Barney Multi-Discipline Global All Cap Growth and Value Portfolio - - 9,836 shares; cost $161,202 Smith Barney Allocation Select Balanced Portfolio - - 0 shares; cost $0 Smith Barney Allocation Select Growth Portfolio - - 0 shares; cost $0 Smith Barney Allocation Select High Growth Portfolio - - 0 shares; cost $0 Smith Barney Capital and Income Portfolio - - 0 shares; cost $0 Smith Barney IS Dividend Strategy Portfolio - 32,008 3,683 shares; cost $32,722 ------------- ------------- Total Investments - 32,008 Due From MetLife Investors Insurance Company - - Cash and Accounts Receivable - - ------------- ------------- Total Assets - 32,008 LIABILITIES: Due to MetLife Investors Insurance Company - 12 ------------- ------------- NET ASSETS $ - $31,996 ============= ============= Outstanding Units - 3,967 Unit Fair Values $ 10.61 $ 7.85 to to $ 10.64 $ 8.25
See accompanying notes to financial statements. (Continued) 17 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
Smith Barney ------------------------------------------ ---------------- Premier Greenwich Salomon Brothers Selections All IS Growth Street Equity Adjustable Cap Growth and Income Index Rate Income Portfolio Portfolio Portfolio Portfolio -------------- ------------- ------------- ---------------- ASSETS: Investments at Fair Value: Smith Barney, continued: Smith Barney Premier Selections All Cap Growth Portfolio $ - $ - $ - $ - 0 shares; cost $0 Smith Barney IS Growth and Income Portfolio - - - - 0 shares; cost $0 Smith Barney Greenwich Street Equity Index Portfolio - - - - 0 shares; cost $0 Travelers Series Fund: Travelers Series Fund Salomon Brothers Adjustable Rate Income Portfolio - - - 3,506 353 shares; cost $3,605 Travelers Series Fund Smith Barney Aggressive Growth Portfolio - - - - 13,470 shares; cost $201,607 Travelers Series Fund Smith Barney Large-Cap Growth Portfolio - - - - 13,320 shares; cost $204,537 Travelers Series Fund Smith Barney Large-Cap Value Portfolio - - - - 0 shares; cost $0 Travelers Series Fund Smith Barney Money Market Portfolio - - - - 190,257 shares; cost $190,257 ------------- ------------- ------------- ------------- Total Investments - - - 3,506 Due From MetLife Investors Insurance Company - - - - Cash and Accounts Receivable - - - - ------------- ------------- ------------- ------------- Total Assets - - - 3,506 LIABILITIES: Due to MetLife Investors Insurance Company - - - 2 ------------- ------------- ------------- ------------- NET ASSETS $ - $ - $ - $ 3,504 ============= ============= ============= ============= Outstanding Units - - - 351 Unit Fair Values $ 11.53 $ 9.11 $ 25.69 $ 9.87 to to to $ 11.83 $ 9.34 $ 10.06
Travelers Series Fund -------------------------------------------------------- Smith Barney Smith Barney Smith Barney Aggressive Large-Cap Large-Cap Smith Barney Growth Growth Value Money Market Portfolio Portfolio Portfolio Portfolio ------------- ------------- ------------- ------------- ASSETS: Investments at Fair Value: Smith Barney, continued: Smith Barney Premier Selections All Cap Growth Portfolio $ - $ - $ - $ - 0 shares; cost $0 Smith Barney IS Growth and Income Portfolio - - - - 0 shares; cost $0 Smith Barney Greenwich Street Equity Index Portfolio - - - - 0 shares; cost $0 Travelers Series Fund: Travelers Series Fund Salomon Brothers Adjustable Rate Income Portfolio - - - - 353 shares; cost $3,605 Travelers Series Fund Smith Barney Aggressive Growth Portfolio 200,287 - - - 13,470 shares; cost $201,607 Travelers Series Fund Smith Barney Large-Cap Growth Portfolio - 201,129 - - 13,320 shares; cost $204,537 Travelers Series Fund Smith Barney Large-Cap Value Portfolio - - - - 0 shares; cost $0 Travelers Series Fund Smith Barney Money Market Portfolio - - - 190,257 190,257 shares; cost $190,257 ------------- ------------- ------------- ------------- Total Investments 200,287 201,129 - 190,257 Due From MetLife Investors Insurance Company - - - - Cash and Accounts Receivable - - - ------------- ------------- ------------- ------------- Total Assets 200,287 201,129 - 190,257 LIABILITIES: Due to MetLife Investors Insurance Company 101 35 - 55 ------------- ------------- ------------- ------------- NET ASSETS $ 200,186 $ 201,094 $ - $ 190,202 ============= ============= ============= ============= Outstanding Units 15,934 15,016 - 15,276 Unit Fair Values $ 12.34 $ 12.83 $ 20.51 $ 11.66 to to to to $ 12.75 $ 13.74 $ 21.48 $ 12.94
See accompanying notes to financial statements. (Continued) 18 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
Travelers Series Fund Trav --------------------- --------------------------------------------------- Smith Barney Managed Social Janus Allocation Series Awareness Stock Appreciation Large-Cap Aggressive Portfolio Portfolio Portfolio Portfolio --------------------- ------------- ------------- ----------------- ASSETS: Investments at Fair Value: Travelers Series Fund, continued: Travelers Series Fund Smith Barney Social Awareness Stock Portfolio $ - $ - $ - $ - 0 shares; cost $0 Travelers Series Trust: Travelers Series Trust Janus Appreciation Portfolio - 25,925 - - 331 shares; cost $26,200 Travelers Series Trust Large-Cap Portfolio - - 107,146 - 7,077 shares; cost $107,173 Travelers Series Trust Managed Allocation Series Aggressive Portfolio - - - 49,915 4,441 shares; cost $50,004 Travelers Series Trust Managed Allocation Series Conservative Portfolio - - - - 0 shares; cost $0 Travelers Series Trust Managed Allocation Series Moderate Portfolio - - - - 97,900 shares; cost $1,062,332 Travelers Series Trust Managed Allocation Series Mod Aggressive Portfolio - - - - 50,671 shares; cost $556,229 Travelers Series Trust Managed Allocation Series Mod Conservative Portfolio - - - - 0 shares; cost $0 ------------- ------------- ------------- ------------- Total Investments - 25,925 107,146 49,915 Due From MetLife Investors Insurance Company - - - - Cash and Accounts Receivable - - - - ------------- ------------- ------------- ------------- Total Assets - 25,925 107,146 49,915 LIABILITIES: Due to MetLife Investors Insurance Company - 14 24 8 ------------- ------------- ------------- ------------- NET ASSETS $ - $ 25,911 $ 107,122 $ 49,907 ============= ============= ============= ============= Outstanding Units - 239 6,503 4,493 Unit Fair Values $ 24.85 $ 97.10 $ 15.58 $ 11.08 to to to to $ 26.25 $ 119.00 $ 16.95 $ 11.14
elers Series Trust ------------------------------------------------------------------ Managed Managed Managed Managed Allocation Series Allocation Series Allocation Series Allocation Series Conservative Moderate Mod Aggressive Mod Conservative Portfolio Portfolio Portfolio Portfolio ----------------- ----------------- ----------------- ----------------- ASSETS: Investments at Fair Value: Travelers Series Fund, continued: Travelers Series Fund Smith Barney Social Awareness Stock Portfolio $ - $ - $ - $ - 0 shares; cost $0 Travelers Series Trust: Travelers Series Trust Janus Appreciation Portfolio - - - - 331 shares; cost $26,200 Travelers Series Trust Large-Cap Portfolio - - - - 7,077 shares; cost $107,173 Travelers Series Trust Managed Allocation Series Aggressive Portfolio - - - - 4,441 shares; cost $50,004 Travelers Series Trust Managed Allocation Series Conservative Portfolio - - - - 0 shares; cost $0 Travelers Series Trust Managed Allocation Series Moderate Portfolio - 1,057,319 - - 97,900 shares; cost $1,062,332 Travelers Series Trust Managed Allocation Series Mod Aggressive Portfolio - - 553,329 - 50,671 shares; cost $556,229 Travelers Series Trust Managed Allocation Series Mod Conservative Portfolio - - - - 0 shares; cost $0 ------------- ------------- ------------- ------------- Total Investments - 1,057,319 553,329 - Due From MetLife Investors Insurance Company - - - - Cash and Accounts Receivable - - - - ------------- ------------- ------------- ------------- Total Assets - 1,057,319 553,329 - LIABILITIES: Due to MetLife Investors Insurance Company - 98 35 - ------------- ------------- ------------- ------------- NET ASSETS $ - $ 1,057,221 $ 553,294 $ - ============= ============= ============= ============= Outstanding Units - 98,524 51,045 - Unit Fair Values $ 10.25 $ 10.69 $ 10.81 $ 10.47 to to to to $ 10.32 $ 10.75 $ 10.87 $ 10.53
See accompanying notes to financial statements. (Continued) 19 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
Travelers Series Trust ---------------------------------------------------------------------------------------- Style Focus Series Style Focus Travelers Pioneer Small-Cap Series Managed Mid-Cap MFS ++Value Growth Small-Cap Income Pioneer Fund Value Portfolio Portfolio Value Portfolio Portfolio Portfolio Portfolio ------------- ------------- --------------- ------------- ------------- ------------- ASSETS: Investments at Fair Value: Travelers Series Trust, continued: Travelers Series Trust MFS Value Portfolio $ 21,686 $ - $ - $ - $ - $ - 1,743 shares; cost $22,487 Travelers Series Trust Style Focus Series Small-Cap Growth Portfolio - 52,223 - - - - 4,613 shares; cost $53,326 Travelers Series Trust Style Focus Series Small-Cap Value Portfolio - - 86,825 - - - 7,759 shares; cost $87,900 Travelers Series Trust Travelers Managed Income Portfolio - - - 161,462 - - 14,638 shares; cost $165,108 Travelers Series Trust Pioneer Fund Portfolio - - - - 46,619 - 3,656 shares; cost $46,839 Travelers Series Trust Pioneer Mid- Cap Value Portfolio - - - - - 131,891 12,235 shares; cost $133,039 Travelers Series Trust Pioneer Strategic Income Portfolio - - - - - - 1,019 shares; cost $9,454 Travelers Series Trust Convertible Securities Portfolio - - - - - - 0 shares; cost $0 ------------- ------------- ------------- ------------- ------------- ------------- Total Investments 21,686 52,223 86,825 161,462 46,619 131,891 Due From MetLife Investors Insurance Company - - - - - - Cash and Accounts Receivable - - - - - - ------------- ------------- ------------- ------------- ------------- ------------- Total Assets 21,686 52,223 86,825 161,462 46,619 131,891 LIABILITIES: Due to MetLife Investors Insurance Company 13 39 38 77 42 43 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS $ 21,673 $ 52,184 $ 86,787 $ 161,385 $ 46,577 $ 131,848 ============= ============= ============= ============= ============= ============= Outstanding Units 1,651 4,581 7,734 10,658 2,811 12,149 Unit Fair Values $ 12.66 $ 11.35 $ 11.18 $ 14.22 $ 15.48 $ 10.81 to to to to to to $ 13.54 $ 11.43 $ 11.25 $ 15.77 $ 17.23 $ 10.88
------------------------- Pioneer Strategic Convertible Income Securities Portfolio Portfolio ------------- ------------- ASSETS: Investments at Fair Value: Travelers Series Trust, continued: Travelers Series Trust MFS Value Portfolio $ - $ - 1,743 shares; cost $22,487 Travelers Series Trust Style Focus Series Small-Cap Growth Portfolio - - 4,613 shares; cost $53,326 Travelers Series Trust Style Focus Series Small-Cap Value Portfolio - - 7,759 shares; cost $87,900 Travelers Series Trust Travelers Managed Income Portfolio - - 14,638 shares; cost $165,108 Travelers Series Trust Pioneer Fund Portfolio - - 3,656 shares; cost $46,839 Travelers Series Trust Pioneer Mid- Cap Value Portfolio - - 12,235 shares; cost $133,039 Travelers Series Trust Pioneer Strategic Income Portfolio 9,505 - 1,019 shares; cost $9,454 Travelers Series Trust Convertible Securities Portfolio - - 0 shares; cost $0 ------------- ------------- Total Investments 9,505 - Due From MetLife Investors Insurance Company - - Cash and Accounts Receivable - - ------------- ------------- Total Assets 9,505 - LIABILITIES: Due to MetLife Investors Insurance Company 4 - ------------- ------------- NET ASSETS $ 9,501 $ - ============= ============= Outstanding Units 546 - Unit Fair Values $ 16.62 $ 14.48 to to $ 18.33 $ 14.93
See accompanying notes to financial statements. (Continued) 20 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Assets and Liabilities December 31, 2005
Travelers Series Trust -------------------------------------------------------- MFS Total Federated Mercury Equity Return High Yield Large-Cap Income Portfolio Portfolio Core Portfolio Portfolio ------------- ------------- -------------- ------------- ASSETS: Investments at Fair Value: Travelers Series Trust, continued: Travelers Series Trust MFS Total Return Portfolio $ 95,767 $ - $ - $ - 5,825 shares; cost $98,868 Travelers Series Trust Federated High Yield Portfolio - 80,370 - - 9,092 shares; cost $79,839 Travelers Series Trust Mercury Large-Cap Core Portfolio - - 29,128 - 2,873 shares; cost $28,954 Travelers Series Trust Equity Income Portfolio - - - 127,020 7,184 shares; cost $127,793 Travelers Series Trust AIM Capital Appreciation Portfolio - - - - 0 shares; cost $0 Travelers Series Trust U.S. Government Securities Portfolio - - - - 260 shares; cost $3,427 ------------- ------------- ------------- ------------- Total Investments 95,767 80,370 29,128 127,020 Due From MetLife Investors Insurance Company - - - - Cash and Accounts Receivable - - - - ------------- ------------- ------------- ------------- Total Assets 95,767 80,370 29,128 127,020 LIABILITIES: Due to MetLife Investors Insurance Company 53 76 56 65 ------------- ------------- ------------- ------------- NET ASSETS $ 95,714 $ 80,294 $ 29,072 $ 126,955 ============= ============= ============= ============= Outstanding Units 4,031 5,243 2,961 6,546 Unit Fair Values $ 22.17 $ 14.56 $ 9.43 $ 18.53 to to to to $ 24.60 $ 15.40 $ 10.12 $ 20.15
---------------------------- U.S. AIM Capital Government Appreciation Securities Portfolio Portfolio ------------- ------------- ASSETS: Investments at Fair Value: Travelers Series Trust, continued: Travelers Series Trust MFS Total Return Portfolio $ - $ - 5,825 shares; cost $98,868 Travelers Series Trust Federated High Yield Portfolio - - 9,092 shares; cost $79,839 Travelers Series Trust Mercury Large-Cap Core Portfolio - - 2,873 shares; cost $28,954 Travelers Series Trust Equity Income Portfolio - - 7,184 shares; cost $127,793 Travelers Series Trust AIM Capital Appreciation Portfolio - - 0 shares; cost $0 Travelers Series Trust U.S. Government Securities Portfolio - 3,458 260 shares; cost $3,427 ------------- ------------- Total Investments - 3,458 Due From MetLife Investors Insurance Company - - Cash and Accounts Receivable - - ------------- ------------- Total Assets - 3,458 LIABILITIES: Due to MetLife Investors Insurance Company - 1 ------------- ------------- NET ASSETS $ - $ 3,457 ============= ============= Outstanding Units - 167 Unit Fair Values $ 12.78 $ 19.02 to to $ 14.01 $ 20.68
See accompanying notes to financial statements. (Concluded) 21 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
Met Investors ------------------------------------------------------------------------------------------- Lord Abbett Lord Abbett Lord Abbett Lord Abbett Lord Abbett Lord Abbett Growth and Growth and Bond Bond Growth Mid-Cap Income Income Debenture Debenture Opportunities Value Portfolio Portfolio B Portfolio Portfolio B Portfolio B (d) Portfolio B (d) ------------- ------------- ------------- ------------- --------------- --------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 9,174,487 $ 14,487,021 $ 153,251 $ 12,664,347 $ 18,441 $ 11,179 Expenses: Mortality and expense charges 3,898,275 7,377,951 36,672 4,502,324 276 318 Administrative fee 61,354 1,308,214 1,006 795,500 19 8 ------------- ------------- ------------- ------------- ------------- ------------- Total expenses 3,959,629 8,686,165 37,678 5,297,824 295 326 ------------- ------------- ------------- ------------- ------------- ------------- Net investment income (loss) 5,214,858 5,800,856 115,573 7,366,523 18,146 10,853 ------------- ------------- ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 2,104,692 35,503,350 37,201 18,275,995 2 2 Change in unrealized appreciation (depreciation) of investments (873,049) (36,549,563) (128,424) (27,365,887) (19,628) (12,409) ------------- ------------- ------------- ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments 1,231,643 (1,046,213) (91,223) (9,089,892) (19,626) (12,407) ------------- ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 6,446,501 $ 4,754,643 $ 24,350 $ (1,723,369) $ (1,480) $ (1,554) ============= ============= ============= ============= ============= =============
----------------------------- Lazard Met/AIM Large-Cap Small-Cap Value Growth Portfolio B Portfolio ------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 13,311,498 $ 14,402 Expenses: Mortality and expense charges 1,708,912 6,361 Administrative fee 302,804 - ------------- ------------- Total expenses 2,011,716 6,361 ------------- ------------- Net investment income (loss) 11,299,782 8,041 ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 6,501,495 31,683 Change in unrealized appreciation (depreciation) of investments (10,784,556) (5,623) ------------- ------------- Net realized and unrealized gains (losses) on investments (4,283,061) 26,060 ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 7,016,721 $ 34,101 ============= =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 22 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
Met Investors ---------------------------------------------------------------------------------------- Met/AIM Harris Third Avenue Third Avenue Oppenheimer Oppenheimer Small-Cap Oakmark Small-Cap Small-Cap Capital Capital Growth International Value Value Appreciation Appreciation Portfolio B Portfolio B Portfolio Portfolio B Portfolio Portfolio B ------------- ------------- ------------- ------------- ------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 3,522,578 $ 3,472,197 $ 16,469 $ 851,968 $ 163,638 $ 3,365,272 Expenses: Mortality and expense charges 2,366,423 3,633,052 57,548 3,977,945 178,866 4,997,424 Administrative Fee 421,569 644,463 - 705,386 25,091 890,977 ------------- ------------- ------------- ------------- ------------- ------------- Total Expenses 2,787,992 4,277,515 57,548 4,683,331 203,957 5,888,401 ------------- ------------- ------------- ------------- ------------- ------------- Net investment income (loss) 734,586 (805,318) (41,079) (3,831,363) (40,319) (2,523,129) ------------- ------------- ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 6,604,031 19,012,472 166,476 23,219,251 117,726 13,495,875 Change in unrealized appreciation (depreciation) of investments 1,249,607 11,761,014 477,735 15,602,308 472,333 (3,364,101) ------------- ------------- ------------- ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments 7,853,638 30,773,486 644,211 38,821,559 590,059 10,131,774 ------------- ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 8,588,224 $ 29,968,168 $ 603,132 $ 34,990,196 $ 549,740 $ 7,608,645 ============= ============= ============= ============= ============= =============
------------------------------ Janus Money Aggressive Market Growth Portfolio B (a) Portfolio B --------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 649,130 $ 134,958 Expenses: Mortality and expense charges 505,430 1,761,971 Administrative Fee 89,128 310,007 ------------- ------------- Total Expenses 594,558 2,071,978 ------------- ------------- Net investment income (loss) 54,572 (1,937,020) ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - 9,155,692 Change in unrealized appreciation (depreciation) of investments - 4,199,581 ------------- ------------- Net realized and unrealized gains (losses) on investments - 13,355,273 ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 54,572 $ 11,418,253 ============= =============
(a) For the period from January 1, 2005 to April 29, 2005 See accompanying notes to financial statements. (Continued) 23 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
Met Investors ------------------------------------------------------------------------------------------ PIMCO PIMCO PIMCO T. Rowe Price Total Return Total Return RCM Global RCM Global Inflation Mid-Cap Bond Bond Technology Technology Protected Bond Growth Portfolio Portfolio B Portfolio Portfolio B Portfolio B Portfolio B ------------- ------------- ------------- ------------- -------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 368,860 $ 2,355,424 $ 5,165 $ 334,776 $ 447,579 $ 4,647,091 Expenses: Mortality and expense charges 670,378 5,161,518 8,782 655,545 4,004,721 2,625,858 Administrative fee 34,640 922,344 - 115,258 701,814 470,590 ------------- ------------- ------------- ------------- ------------- ------------- Total expenses 705,018 6,083,862 8,782 770,803 4,706,535 3,096,448 ------------- ------------- ------------- ------------- ------------- ------------- Net investment income (loss) (336,158) (3,728,438) (3,617) (436,027) (4,258,956) 1,550,643 ------------- ------------- ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 472,440 858,004 (43,850) (1,418,442) 3,481,462 5,797,023 Change in unrealized appreciation (depreciation) of investments 453,612 4,913,289 112,221 4,834,351 (451,994) 15,711,237 ------------- ------------- ------------- ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments 926,052 5,771,293 68,371 3,415,909 3,029,468 21,508,260 ------------- ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 589,894 $ 2,042,855 $ 64,754 $ 2,979,882 $ (1,229,488) $ 23,058,903 ============= ============= ============= ============= ============= =============
-------------------------- MFS MFS Research Research International International Portfolio Portfolio B ------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 92,254 $ 9,876,395 Expenses: Mortality and expense charges 16,498 2,596,167 Administrative fee - 461,731 ------------- ------------- Total expenses 16,498 3,057,898 ------------- ------------- Net investment income (loss) 75,756 6,818,497 ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 33,648 13,061,321 Change in unrealized appreciation (depreciation) of investments 119,538 5,038,033 ------------- ------------- Net realized and unrealized gains (losses) on investments 153,186 18,099,354 ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 228,942 $ 24,917,851 ============= =============
See accompanying notes to financial statements. (Continued) 24 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
Met Investors ----------------------------------------------------------------------------------------- Neuberger Turner Goldman Sachs Defensive Moderate Balanced Berman Mid-Cap Mid-Cap Strategy Strategy Strategy Real Estate Growth Value Fund of Fund of Fund of Portfolio B Portfolio B Portfolio B Fund B Fund B Fund B ------------- ------------- ------------- ------------- ------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 85,710 $ 1,280,062 $ 6,435,143 $ 2,758,151 $ 10,348,544 $ 30,157,573 Expenses: Mortality and expense charges 871,974 521,848 1,015,641 2,862,605 9,996,114 29,465,982 Administrative fee 155,316 92,183 178,571 506,902 1,756,411 5,183,814 ------------- ------------- ------------- ------------- ------------- ------------- Total expenses 1,027,290 614,031 1,194,212 3,369,507 11,752,525 34,649,796 ------------- ------------- ------------- ------------- ------------- ------------- Net investment income (loss) (941,580) 666,031 5,240,931 (611,356) (1,403,981) (4,492,223) ------------- ------------- ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 6,286,475 2,931,951 4,435,533 902,896 2,318,404 667,945 Change in unrealized appreciation (depreciation) of investments (174,297) (958,525) (2,769,221) 7,272,970 35,770,238 139,053,277 ------------- ------------- ------------- ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments 6,112,178 1,973,426 1,666,312 8,175,866 38,088,642 139,721,222 ------------- ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 5,170,598 $ 2,639,457 $ 6,907,243 $ 7,564,510 $ 36,684,661 $ 135,228,999 ============= ============= ============= ============= ============= =============
----------------------------- Growth Aggressive Strategy Strategy Fund of Fund of Fund B Fund B ------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 24,901,907 $ 4,990,197 Expenses: Mortality and expense charges 24,686,461 5,487,982 Administrative fee 4,343,084 960,810 ------------- ------------- Total expenses 29,029,545 6,448,792 ------------- ------------- Net investment income (loss) (4,127,638) (1,458,595) ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 100,990 333,979 Change in unrealized appreciation (depreciation) of investments 158,330,857 39,921,987 ------------- ------------- Net realized and unrealized gains (losses) on investments 158,431,847 40,255,966 ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 154,304,209 $ 38,797,371 ============= =============
See accompanying notes to financial statements. (Continued) 25 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
Met Investors ----------------------------------------------- --------------- Legg Mason Met/Putnam Van Kampen Value Capital Premier Comstock Equity Opportunities Equity Portfolio B (b) Portfolio B (d) Portfolio B (d) Fund --------------- --------------- --------------- -------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 290,079 $ - $ - $ 10,341 Expenses: Mortality and expense charges 64,373 812 - 16,453 Administrative Fee 11,091 62 - 1,974 -------------- -------------- -------------- -------------- Total Expenses 75,464 874 - 18,427 -------------- -------------- -------------- -------------- Net investment income (loss) 214,615 (874) - (8,086) -------------- -------------- -------------- -------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions (66) 4 - (56,891) Change in unrealized appreciation (depreciation) of investments 221,096 (8,725) - 114,334 -------------- -------------- -------------- -------------- Net realized and unrealized gains (losses) on investments 221,030 (8,721) - 57,443 -------------- -------------- -------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 435,645 $ (9,595) $ - $ 49,357 ============== ============== ============== ==============
AIM MFS ----------------------------------------------- -------------- Capital International Basic Appreciation Growth Balanced Research Fund Fund Fund Series -------------- -------------- -------------- -------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 435 $ 5,207 $ 15,160 $ 1,607 Expenses: Mortality and expense charges 8,532 9,755 13,804 4,175 Administrative Fee 1,024 1,171 1,657 501 -------------- -------------- -------------- -------------- Total Expenses 9,556 10,926 15,461 4,676 -------------- -------------- -------------- -------------- Net investment income (loss) (9,121) (5,719) (301) (3,069) -------------- -------------- -------------- -------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions (10,715) 1,383 (11,929) (2,744) Change in unrealized appreciation (depreciation) of investments 67,960 124,742 51,224 26,000 -------------- -------------- -------------- -------------- Net realized and unrealized gains (losses) on investments 57,245 126,125 39,295 23,256 -------------- -------------- -------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 48,124 $ 120,406 $ 38,994 $ 20,187 ============== ============== ============== ==============
(b) For the period from May 2, 2005 to December 31, 2005 (d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 26 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
MFS Oppenheimer ------------------------------ ---------------------------------------------------------------- Main Street Main Street Investors New Growth & Strategic Small-Cap Trust Discovery Income Bond Bond Growth Series Series Fund Fund Fund Fund -------------- -------------- -------------- -------------- -------------- -------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 927 $ - $ 4,105 $ 20,208 $ 4,994 $ 5,013 Expenses: Mortality and expense charges 2,067 2,628 3,680 4,830 1,325 2,302 Administrative Fee 248 315 442 580 159 276 -------------- -------------- -------------- -------------- -------------- -------------- Total Expenses 2,315 2,943 4,122 5,410 1,484 2,578 -------------- -------------- -------------- -------------- -------------- -------------- Net investment income (loss) (1,388) (2,943) (17) 14,798 3,510 2,435 -------------- -------------- -------------- -------------- -------------- -------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 1,107 (2,079) (440) 1,157 6,425 6,067 Change in unrealized appreciation (depreciation) of investments 9,733 10,671 13,076 (11,332) (9,004) 5,659 -------------- -------------- -------------- -------------- -------------- -------------- Net realized and unrealized gains (losses) on investments 10,840 8,592 12,636 (10,175) (2,579) 11,726 -------------- -------------- -------------- -------------- -------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 9,452 $ 5,649 $ 12,619 $ 4,623 $ 931 $ 14,161 ============== ============== ============== ============== ============== ==============
----------------------------- Capital Money Appreciation Portfolio Portfolio B (d) -------------- --------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 6,789 $ - Expenses: Mortality and expense charges 3,131 - Administrative Fee 376 - -------------- -------------- Total Expenses 3,507 - -------------- -------------- Net investment income (loss) 3,282 - -------------- -------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - - Change in unrealized appreciation (depreciation) of investments - - -------------- -------------- Net realized and unrealized gains (losses) on investments - - -------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 3,282 $ - ============== ==============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 27 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
Fidelity ---------------------------------------------------------------------------------------------- Asset Manager Growth Contrafund Overseas Equity-Income Index 500 Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio -------------- -------------- -------------- -------------- -------------- -------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 4,334,413 $ 1,199,256 $ 888,032 $ 129,340 $ 1,188,328 $ 2,679,984 Expenses: Mortality and expense charges 2,058,452 3,082,241 3,871,474 121,482 269,758 1,952,198 Administrative Fee 33,417 51,729 42,968 13,907 32,371 8 -------------- -------------- -------------- -------------- -------------- -------------- Total Expenses 2,091,869 3,133,970 3,914,442 135,389 302,129 1,952,206 -------------- -------------- -------------- -------------- -------------- -------------- Net investment income (loss) 2,242,544 (1,934,714) (3,026,410) (6,049) 886,199 727,778 -------------- -------------- -------------- -------------- -------------- -------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions (2,110,546) (7,095,149) 3,877,670 (159,567) 225,830 1,609,808 Change in unrealized appreciation (depreciation) of investments 3,606,847 18,387,197 41,502,913 1,878,817 (282,062) 2,214,439 -------------- -------------- -------------- -------------- -------------- -------------- Net realized and unrealized gains (losses) on investments 1,496,301 11,292,048 45,380,583 1,719,250 (56,232) 3,824,247 -------------- -------------- -------------- -------------- -------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 3,738,845 $ 9,357,334 $ 42,354,173 $ 1,713,201 $ 829,967 $ 4,552,025 ============== ============== ============== ============== ============== ==============
------------------------------- Money Market Mid-Cap Portfolio Portfolio B (d) -------------- --------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 918,116 $ - Expenses: Mortality and expense charges 403,499 - Administrative Fee 6,333 - -------------- -------------- Total Expenses 409,832 - -------------- -------------- Net investment income (loss) 508,284 - -------------- -------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - - Change in unrealized appreciation (depreciation) of investments - - -------------- -------------- Net realized and unrealized gains (losses) on investments - - -------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 508,284 $ - ============== ==============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 28 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
Fidelity Scudder I MetLife --------------- ------------- ------------------------------------------------------------ FI FI FI Russell 2000 International International Contrafund International Mid-Cap Index Stock Stock Portfolio B (d) Portfolio Portfolio Portfolio Portfolio Portfolio B (d) --------------- ------------- ------------- ------------- ------------- --------------- INVESTMENT INCOME (LOSS): Income: Dividends $ - $ 394,585 $ - $ 245,548 $ 4,064 $ - Expenses: Mortality and expense charges 31 335,990 47,410 79,840 7,592 - Administrative fee - 595 1,436 1,161 911 - ------------- ------------- ------------- ------------- ------------- ------------- Total expenses 31 336,585 48,846 81,001 8,503 - ------------- ------------- ------------- ------------- ------------- ------------- Net investment income (loss) (31) 58,000 (48,846) 164,547 (4,439) - ------------- ------------- ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - (197,126) (12,734) 330,827 17,991 - Change in unrealized appreciation (depreciation) of investments (379) 3,662,606 295,898 (275,880) 84,277 - ------------- ------------- ------------- ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments (379) 3,465,480 283,164 54,947 102,268 - ------------- ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (410) $ 3,523,480 $ 234,318 $ 219,494 $ 97,829 $ - ============= ============= ============= ============= ============= =============
----------------------------- Met/Putnam Stock Voyager Index Portfolio A(a) Portfolio -------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 1,878 $ 1,250,190 Expenses: Mortality and expense charges 1,548 992,118 Administrative fee 186 44,085 ------------- ------------- Total expenses 1,734 1,036,203 ------------- ------------- Net investment income (loss) 144 213,987 ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions (141,089) 1,570,677 Change in unrealized appreciation (depreciation) of investments 109,175 740,389 ------------- ------------- Net realized and unrealized gains (losses) on investments (31,914) 2,311,066 ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (31,770) $ 2,525,053 ============= =============
(a) For the period from January 1, 2005 to April 29, 2005 (d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 29 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
MetLife ------------------------------------------------------------------------------------------ BlackRock BlackRock BlackRock BlackRock Lehman Brothers Stock Legacy Strategic Bond Large-Cap Aggregate Index Large-Cap Value Income Value Bond Index Portfolio B Growth Class A Class A Class A Class A ------------- ------------- ------------- ------------- ------------- --------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 2,967,623 $ 1,334 $ 675,088 $ 117,826 $ 13,320 $ 109,953 Expenses: Mortality and expense charges 2,956,442 4,623 138,468 36,029 10,154 42,521 Administrative fee 533,379 - - - - - ------------- ------------- ------------- ------------- ------------- -------------- Total expenses 3,489,821 4,623 138,468 36,029 10,154 42,521 ------------- ------------- ------------- ------------- ------------- -------------- Net investment income (loss) (522,198) (3,289) 536,620 81,797 3,166 67,432 ------------- ------------- ------------- ------------- ------------- -------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 5,665,464 21,191 188,690 (7,303) 38,642 (580) Change in unrealized appreciation (depreciation) of investments 896,649 4,508 (377,877) (48,894) (3,542) (44,909) ------------- ------------- ------------- ------------- ------------- -------------- Net realized and unrealized gains (losses) on investments 6,562,113 25,699 (189,187) (56,197) 35,100 (45,489) ------------- ------------- ------------- ------------- ------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 6,039,915 $ 22,410 $ 347,433 $ 25,600 $ 38,266 $ 21,943 ============= ============= ============= ============= ============= ==============
------------------------------ Harris Morgan Oakmark Stanley Large-Cap Value EAFE Index Class A Class A --------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 34,515 $ 86,930 Expenses: Mortality and expense charges 68,653 77,785 Administrative fee - - -------------- ------------- Total expenses 68,653 77,785 -------------- ------------- Net investment income (loss) (34,138) 9,145 -------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 100,980 44,220 Change in unrealized appreciation (depreciation) of investments (190,418) 741,422 -------------- ------------- Net realized and unrealized gains (losses) on investments (89,438) 785,642 -------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (123,576) $ 794,787 ============== =============
See accompanying notes to financial statements. (Continued) 30 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
MetLife ---------------------------------------------------------------------------------- MFS Davis Davis Harris Total Mid-Cap Venture Venture Oakmark Return Stock Index Value Value Focused Value Class A Class A Fund Fund E Fund A ------------- ------------- ------------- ------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 163,197 $ 332,202 $ 23,044 $ 2,859,828 $ 161,891 Expenses: Mortality and expense charges 83,664 82,557 53,647 7,489,953 225,780 Administrative fee 289 - - 1,337,765 - ------------- ------------- ------------- ------------- ------------- Total expenses 83,953 82,557 53,647 8,827,718 225,780 ------------- ------------- ------------- ------------- ------------- Net investment income (loss) 79,244 249,645 (30,603) (5,967,890) (63,889) ------------- ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 24,033 90,225 50,867 34,479,658 177,938 Change in unrealized appreciation (depreciation) of investments 33,936 346,192 376,187 13,897,692 1,226,931 ------------- ------------- ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments 57,969 436,417 427,054 48,377,350 1,404,869 ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 137,213 $ 686,062 $ 396,451 $ 42,409,460 $ 1,340,980 ============= ============= ============= ============= =============
----------------------------------- Harris Oakmark Jennison Jennison Focused Value Growth Growth Fund B Portfolio A (b) Portfolio B ------------- --------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 3,839,432 $ - $ - Expenses: Mortality and expense charges 5,187,316 3,201 2,378,659 Administrative fee 920,414 384 421,379 ------------- ------------- ------------- Total expenses 6,107,730 3,585 2,800,038 ------------- ------------- ------------- Net investment income (loss) (2,268,298) (3,585) (2,800,038) ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 20,484,547 11,145 10,582,752 Change in unrealized appreciation (depreciation) of investments 8,816,916 65,078 8,034,770 ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments 29,301,463 76,223 18,617,522 ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 27,033,165 $ 72,638 $ 15,817,484 ============= ============= =============
(b) For the period from May 2, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 31 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
MetLife ---------------------------------------------------------------------------- -------------- BlackRock BlackRock T. Rowe Price Salomon Oppenheimer T. Rowe Price Money Money Small-Cap Brothers Global Emerging Market Market Growth U.S. Government Equity Growth Portfolio A Portfolio B (b) Class A Class B (b) Portfolio B (d) Fund ------------- --------------- ------------- --------------- --------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 1,247 $ 2,507,848 $ - $ - $ - $ 1,162 Expenses: Mortality and expense charges 544 1,182,062 8,487 25,307 - 5,372 Administrative Fee 65 210,978 237 4,666 - 645 ------------- ------------- ------------- -------------- ------------- ------------- Total Expenses 609 1,393,040 8,724 29,973 - 6,017 ------------- ------------- ------------- -------------- ------------- ------------- Net investment income (loss) 638 1,114,808 (8,724) (29,973) - (4,855) ------------- ------------- ------------- -------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - - 11,710 (2,529) - (25,226) Change in unrealized appreciation (depreciation) of investments - - 71,200 7,855 - 55,406 ------------- ------------- ------------- -------------- ------------- ------------- Net realized and unrealized gains (losses) on investments - - 82,910 5,326 - 30,180 ------------- ------------- ------------- -------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 638 $ 1,114,808 $ 74,186 $ (24,647) $ - $ 25,325 ============= ============= ============= ============== ============= =============
Van Kampen ---------------------------- Emerging Growth Enterprise Fund B (d) Fund ------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ - $ 1,113 Expenses: Mortality and expense charges - 1,922 Administrative Fee - 231 ------------- ------------- Total Expenses - 2,153 ------------- ------------- Net investment income (loss) - (1,040) ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - (1,785) Change in unrealized appreciation (depreciation) of investments - 12,802 ------------- ------------- Net realized and unrealized gains (losses) on investments - 11,017 ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ - $ 9,977 ============= =============
(b) For the period from May 2, 2005 to December 31, 2005 (d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 32 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
Van Kampen Federated ----------------------------------------- ------------------------------------------ Growth & Growth & Equity High Income Growth Income Income Comstock Income Bond Strategic Fund Fund B (d) Fund B (d) Fund Fund Fund ------------- ------------- ------------- ------------- ------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 11,032 $ - $ - $ 1,974 $ 14,873 $ - Expenses: Mortality and expense charges 3,724 - - 1,088 2,093 2,314 Administrative Fee 447 - - 131 251 278 ------------- ------------- ------------- ------------- ------------- ------------- Total Expenses 4,171 - - 1,219 2,344 2,592 ------------- ------------- ------------- ------------- ------------- ------------- Net investment income (loss) 6,861 - - 755 12,529 (2,592) ------------- ------------- ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 15,310 - - 107 (2,215) (7,387) Change in unrealized appreciation (depreciation) of investments 1,796 - - 538 (9,083) 29,360 ------------- ------------- ------------- ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments 17,106 - - 645 (11,298) 21,973 ------------- ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 23,967 $ - $ - $ 1,400 $ 1,231 $ 19,381 ============= ============= ============= ============= ============= =============
Neuberger Alger ------------- -------------- American Small Genesis Trust Capitalization Class A Fund ------------- -------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 309 $ - Expenses: Mortality and expense charges 132 833,132 Administrative Fee - 12,057 ------------- ------------- Total Expenses 132 845,189 ------------- ------------- Net investment income (loss) 177 (845,189) ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 1,071 (3,642,356) Change in unrealized appreciation (depreciation) of investments 977 13,519,296 ------------- ------------- Net realized and unrealized gains (losses) on investments 2,048 9,876,940 ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 2,225 $ 9,031,751 ============= =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 33 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
T. Rowe Janus ------------------------------------------- ------------- ---------------- Aspen Worldwide Global Growth International Prime Reserve Growth Small-Cap Fund Fund Fund Class A Fund ------------- ------------- ------------- ------------- ------------- INVESTMENT INCOME (LOSS) : Income: Dividends $ 7,239 $ 19,229 $ 33,290 $ 120 $ 74,442 Expenses: Mortality and expense charges 91,966 9,713 10,902 77 107,988 Administrative fee - - - - - ------------- ------------- ------------- ------------- ------------- Total expenses 91,966 9,713 10,902 77 107,988 ------------- ------------- ------------- ------------- ------------- Net investment income (loss) (84,727) 9,516 22,388 43 (33,546) ------------- ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions (77,402) (4,503) - 103 545,651 Change in unrealized appreciation (depreciation) of investments 703,720 156,433 - 255 1,280,910 ------------- ------------- ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments 626,318 151,930 - 358 1,826,561 ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 541,591 $ 161,446 $ 22,388 $ 401 $ 1,793,015 ============= ============= ============= ============= =============
American ----------------------------------------- U.S. Growth & Global Growth Income Growth| Fund Fund Fund B (d) ------------- ------------- ------------- INVESTMENT INCOME (LOSS) : Income: Dividends $ 179,200 $ 317,461 $ - Expenses: Mortality and expense charges 304,147 222,554 272 Administrative fee 64 16 10 ------------- ------------- ------------- Total expenses 304,211 222,570 282 ------------- ------------- ------------- Net investment income (loss) (125,011) 94,891 (282) ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 102,918 95,477 2 Change in unrealized appreciation (depreciation) of investments 3,485,539 669,431 2,427 ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments 3,588,457 764,908 2,429 ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 3,463,446 $ 859,799 $ 2,147 ============= ============= =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 34 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
Alliance Templeton ------------- ------------------------------------------------------------------------ Bernstein Large-Cap Developing Foreign Growth Mutual Shares VIP Income Growth Markets Securities Securities Securities Securities Fund B (d) Fund B (d) Fund B (d) Fund B (d) Fund B (d) Fund B (d) ------------- ------------- ------------- ------------- ------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ - $ - $ - $ - $ - $ - Expenses: Mortality and expense charges - 196 694 - 308 64 Administrative Fee - 5 50 - 21 - ------------- ------------- ------------- ------------- ------------- ------------- Total Expenses - 201 744 - 329 64 ------------- ------------- ------------- ------------- ------------- ------------- Net investment income (loss) - (201) (744) - (329) (64) ------------- ------------- ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - - - - 5 - Change in unrealized appreciation (depreciation) of investments - 5,294 11,553 - 3,457 221 ------------- ------------- ------------- ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments - 5,294 11,553 - 3,462 221 ------------- ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ - $ 5,093 $ 10,809 $ - $ 3,133 $ 157 ============= ============= ============= ============= ============= =============
Lazard Morgan Stanley ------------- --------------- Retirement UIF Equity Small-Cap and Income Portfolio (d) Portfolio B (d) ------------- --------------- INVESTMENT INCOME (LOSS): Income: Dividends $ - $ - Expenses: Mortality and expense charges 7 - Administrative Fee - - ------------- ------------- Total Expenses 7 - ------------- ------------- Net investment income (loss) (7) - ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - - Change in unrealized appreciation (depreciation) of investments (292) - ------------- ------------- Net realized and unrealized gains (losses) on investments (292) - ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (299) $ - ============= =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 35 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
Morgan Stanley Pioneer Putnam Salomon Brothers -------------- --------------- ------------- ------------------------------------------- VT UIF U.S. VCT Small-Cap Variable High Variable VSF Investors Real Estate Mid-Cap Value Yield Bond Small-Cap Fund Portfolio (d) Portfolio B (d) Fund B (d) Portfolio (d) Portfolio (d) Portfolio (d) -------------- --------------- ------------- ------------- ------------- ------------- INVESTMENT INCOME (LOSS) : Income: Dividends $ - $ - $ - $ 3,906 $ 9,565 $ 1,058 Expenses: Mortality and expense charges - - - 62 179 69 Administrative fee - - - - 10 4 ------------- ------------- ------------- ------------- ------------- ------------- Total expenses - - - 62 189 73 ------------- ------------- ------------- ------------- ------------- ------------- Net investment income (loss) - - - 3,844 9,376 985 ------------- ------------- ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - - - - 2 - Change in unrealized appreciation (depreciation) of investments - - - (3,617) (10,276) (1,461) ------------- ------------- ------------- ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments - - - (3,617) (10,274) (1,461) ------------- ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ - $ - $ - $ 227 $ (898) $ (476) ============= ============= ============= ============= ============= =============
Smith Barney ----------------------------- Greenwich Street Equity Index Appreciation Fund Portfolio (d) Portfolio B (d) ------------- --------------- INVESTMENT INCOME (LOSS) : Income: Dividends $ 226 $ 241 Expenses: Mortality and expense charges 18 22 Administrative fee - - ------------- ------------- Total expenses 18 22 ------------- ------------- Net investment income (loss) 208 219 ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - - Change in unrealized appreciation (depreciation) of investments (688) (446) ------------- ------------- Net realized and unrealized gains (losses) on investments (688) (446) ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (480) $ (227) ============= =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 36 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
Smith Barney ---------------------------------------------------------------------------------- Greenwich Multi-Discipline Multi-Discipline Multi-Discipline Multi-Discipline Fundamental Balanced All Cap Large-Cap All Cap Global All Cap Value Growth & Value Growth & Value Growth Value Growth & Value Portfolio (d) Portfolio (d) Portfolio (d) Portfolio (d) Portfolio B (d) ------------- ---------------- ---------------- ---------------- ---------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 2,309 $ 511 $ 609 $ 3,302 $ 1,818 Expenses: Mortality and expense charges 43 29 31 173 104 Administrative fee - - - 9 11 ------------- -------------- -------------- -------------- -------------- Total Expenses 43 29 31 182 115 ------------- -------------- -------------- -------------- -------------- Net investment income (loss) 2,266 482 578 3,120 1,703 ------------- -------------- -------------- -------------- -------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - - - - (1) Change in unrealized appreciation (depreciation) of investments (2,339) (571) (950) (4,166) (2,150) ------------- -------------- -------------- -------------- -------------- Net realized and unrealized gains (losses) on investments (2,339) (571) (950) (4,166) (2,151) ------------- -------------- -------------- -------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (73) $ (89) $ (372) $ (1,046) $ (448) ============= ============== ============== ============== ==============
-------------------------------------------- Allocation Allocation Allocation Select Select Select Balanced Large-Cap Value High Growth Portfolio (d) Portfolio (d) Portfolio (d) ------------- --------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ - $ - $ - Expenses: Mortality and expense charges - - - Administrative fee - - - ------------- -------------- ------------- Total Expenses - - - ------------- -------------- ------------- Net investment income (loss) - - - ------------- -------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - - - Change in unrealized appreciation (depreciation) of investments - - - ------------- -------------- ------------- Net realized and unrealized gains (losses) on investments - - - ------------- -------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ - $ - $ - ============= ============== =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 37 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
Smith Barney ----------------------------------------------------------------------- Premier Greenwich Capital and IS Dividend Selections All IS Growth Street Equity Income Strategy Cap Growth and Income Index Portfolio (d) Portfolio (d) Portfolio (d) Portfolio (d) Portfolio (d) ------------- ------------- -------------- ------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ - $ 433 $ - $ - $ - Expenses: Mortality and expense charges - 13 - - - Administrative fee - - - - - ------------- ------------- ------------- ------------- ------------- Total expenses - 13 - - - ------------- ------------- ------------- ------------- ------------- Net investment income (loss) - 420 - - - ------------- ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - - - - - Change in unrealized appreciation (depreciation) of investments - (714) - - - ------------- ------------- ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments - (714) - - - ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ - $ (294) $ - $ - $ - ============= ============= ============= ============= =============
Travelers Series Fund --------------------------------------------- Salomon Brothers Smith Barney Smith Barney Adjustable Rate Aggressive Large-Cap Income Growth Growth Portfolio (d) Portfolio (d) Portfolio (d) ---------------- ------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 105 $ 6 $ 241 Expenses: Mortality and expense charges 2 147 175 Administrative fee - 4 13 -------------- ------------- ------------- Total expenses 2 151 188 -------------- ------------- ------------- Net investment income (loss) 103 (145) 53 -------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - 1 49 Change in unrealized appreciation (depreciation) of investments (99) (1,320) (3,408) -------------- ------------- ------------- Net realized and unrealized gains (losses) on investments (99) (1,319) (3,359) -------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 4 $ (1,464) $ (3,306) ============== ============= =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 38 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
Travelers Series Fund ------------------------------------------- ----------------------------- Smith Barney Smith Barney Large-Cap Smith Barney Social Janus Value Money Market Awareness Stock Appreciation Large-Cap Portfolio (d) Portfolio (d) Portfolio (d) Portfolio (d) Portfolio (d) ------------- ------------- --------------- ------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ - $ 295 $ - $ - $ - Expenses: Mortality and expense charges - 108 - 15 123 Administrative fee - 5 - - 10 ------------- ------------- ------------- ------------- ------------- Total expenses - 113 - 15 133 ------------- ------------- ------------- ------------- ------------- Net investment income (loss) - 182 - (15) (133) ------------- ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - - - - 4 Change in unrealized appreciation (depreciation) of investments - - - (275) (27) ------------- ------------- ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments - - - (275) (23) ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ - $ 182 $ - $ (290) $ (156) ============= ============= ============= ============= =============
Travelers Series Trust ----------------------------------------------------- T. Rowe Price Managed Managed Allocation Series Allocation Series Allocation Series Aggressive Conservative Moderate Portfolio (d) Portfolio (d) Portfolio (d) ----------------- ----------------- ----------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 55 $ - $ 5,300 Expenses: Mortality and expense charges 54 - 912 Administrative fee 4 - 77 -------------- -------------- -------------- Total expenses 58 - 989 -------------- -------------- -------------- Net investment income (loss) (3) - 4,311 -------------- -------------- -------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - - 13 Change in unrealized appreciation (depreciation) of investments (89) - (5,013) -------------- -------------- -------------- Net realized and unrealized gains (losses) on investments (89) - (5,000) -------------- -------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (92) $ - $ (689) ============== ============== ==============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 39 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
Travelers Series Trust ------------------------------------------------------------------------------------------- Managed Managed Style Focus Series Style Focus Series Allocation Series Allocation Series Small-Cap Small-Cap Mod Aggressive Mod Conservative MFS Value Growth Value Portfolio (d) Portfolio (d) Portfolio (d) Portfolio (d) Portfolio (d) ----------------- ----------------- ------------- ------------------ ------------------ INVESTMENT INCOME (LOSS): Income: Dividends $ 1,335 $ - $ 557 $ 575 $ 921 Expenses: Mortality and expense charges 341 - 13 40 90 Administrative fee 28 - - - 5 -------------- --------------- ------------- ------------- ------------- Total expenses 369 - 13 40 95 -------------- --------------- ------------- ------------- ------------- Net investment income (loss) 966 - 544 535 826 -------------- --------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions 2 - - - - Change in unrealized appreciation (depreciation) of investments (2,900) - (801) (1,103) (1,075) -------------- --------------- ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments (2,898) - (801) (1,103) (1,075) -------------- --------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (1,932) $ - $ (257) $ (568) $ (249) ============== =============== ============= ============= =============
----------------------------------------- Travelers Pioneer Managed Mid-Cap Income Pioneer Fund Value Portfolio (d) Portfolio (d) Portfolio (d) ------------- ------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ 4,214 $ - $ 1,245 Expenses: Mortality and expense charges 176 41 93 Administrative fee 10 - 5 ------------- ------------- ------------- Total expenses 186 41 98 ------------- ------------- ------------- Net investment income (loss) 4,028 (41) 1,147 ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - - - Change in unrealized appreciation (depreciation) of investments (3,646) (220) (1,148) ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments (3,646) (220) (1,148) ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 382 $ (261) $ (1) ============= ============= =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 40 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Operations Year Ended December 31, 2005
Travelers Series Trust ------------------------------------------------------------------------- Pioneer Strategic Convertible MFS Total Federated Mercury Large Income Securities Return High Yield Cap Core Portfolio (d) Portfolio (d) Portfolio (d) Portfolio (d) Portfolio (d) ------------- ------------- ------------- ------------- ------------- INVESTMENT INCOME (LOSS): Income: Dividends $ - $ - $ 2,808 $ - $ - Expenses: Mortality and expense charges 4 - 53 76 55 Administrative fee - - - - - ------------- ------------- ------------- ------------- ------------- Total expenses 4 - 53 76 55 ------------- ------------- ------------- ------------- ------------- Net investment income (loss) (4) - 2,755 (76) (55) ------------- ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - - - - - Change in unrealized appreciation (depreciation) of investments 51 - (3,101) 531 174 ------------- ------------- ------------- ------------- ------------- Net realized and unrealized gains (losses) on investments 51 - (3,101) 531 174 ------------- ------------- ------------- ------------- ------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 47 $ - $ (346) $ 455 $ 119 ============= ============= ============= ============= =============
-------------------------------------------- U.S. AIM Capital Government Equity Income Appreciation Securities Portfolio (d) Portfolio (d) Portfolio (d) ------------- ------------- -------------- INVESTMENT INCOME (LOSS): Income: Dividends $ - $ - $ - Expenses: Mortality and expense charges 116 - 2 Administrative fee 4 - - ------------- ------------- -------------- Total expenses 120 - 2 ------------- ------------- -------------- Net investment income (loss) (120) - (2) ------------- ------------- -------------- NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: Net realized gains (losses) from security transactions - - - Change in unrealized appreciation (depreciation) of investments (773) - 31 ------------- ------------- -------------- Net realized and unrealized gains (losses) on investments (773) - 31 ------------- ------------- -------------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (893) $ - $ 29 ============= ============= ==============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Concluded) 41 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Met Investors ---------------------------------------------------------------------------------------------------- Lord Abbett Growth and Lord Abbett Growth and Lord Abbett Bond Debenture Income Portfolio Income Portfolio B Portfolio ---------------------------- ---------------------------- ---------------------------- 2005 2004 2005 2004 2005 2004 ------------- ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 5,214,858 $ (2,530,213) $ 5,800,856 $ (10,745,664) $ 115,573 $ 50,622 Net realized gains (losses) from security transactions 2,104,692 (258,789) 35,503,350 67,526,358 37,201 17,613 Change in unrealized appreciation (depreciation) of investments (873,049) 35,854,914 (36,549,563) 25,862,520 (128,424) 48,724 ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 6,446,501 33,065,912 4,754,643 82,643,214 24,350 116,959 ------------- ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 15,109,163 17,063,809 44,744,699 303,861,066 352,454 237,564 Net investment division transfers (10,774,883) (5,480,924) (168,781,586) (301,793,567) 1,056,132 1,004,501 Other net transfers (28,809,068) (22,997,599) (31,824,481) (37,472,572) (237,488) (144,772) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (24,474,788) (11,414,714) (155,861,368) (35,405,073) 1,171,098 1,097,293 ------------- ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS (18,028,287) 21,651,198 (151,106,725) 47,238,141 1,195,448 1,214,252 NET ASSETS - BEGINNING OF PERIOD 319,825,154 298,173,956 673,340,046 626,101,905 2,211,496 997,244 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 301,796,867 $ 319,825,154 $ 522,233,321 $ 673,340,046 $ 3,406,944 $ 2,211,496 ============= ============= ============= ============= ============= =============
------------------ Lord Abbett Bond Debenture Portfolio B ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 7,366,523 $ 4,647,469 Net realized gains (losses) from security transactions 18,275,995 38,584,694 Change in unrealized appreciation (depreciation) of investments (27,365,887) (9,759,808) ------------- ------------- Net increase (decrease) in net assets resulting from operations (1,723,369) 33,472,355 ------------- ------------- From capital transactions: Net purchase payments 19,249,661 214,328,655 Net investment division transfers (137,016,294) (254,672,860) Other net transfers (24,630,686) (34,473,630) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (142,397,319) (74,817,835) ------------- ------------- NET CHANGE IN NET ASSETS (144,120,688) (41,345,480) NET ASSETS - BEGINNING OF PERIOD 443,728,310 485,073,790 ------------- ------------- NET ASSETS - END OF PERIOD $ 299,607,622 $ 443,728,310 ============= =============
See accompanying notes to financial statements. (Continued) 42 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Met Investors ------------------------------------------------------------------------------------------------ Lord Abbett Growth Opportunities Lord Abbett Mid-Cap Value JP Morgan Quality Portfolio B Portfolio B Bond -------------------------------- --------------------------- -------------------------- 2005 (d) 2005 (d) 2004 (c) ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 18,146 $ 10,853 $ 2,470,018 Net realized gains (losses) from security transactions 2 2 (906,141) Change in unrealized appreciation (depreciation) of investments (19,628) (12,409) (743,674) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations (1,480) (1,554) 820,203 ------------- ------------- ------------- From capital transactions: Net purchase payments 300,651 310,539 2,383,713 Net investment division transfers 381 34,916 (33,973,608) Other net transfers - - (2,414,466) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 301,032 345,455 (34,004,361) ------------- ------------- ------------- NET CHANGE IN NET ASSETS 299,552 343,901 (33,184,158) NET ASSETS - BEGINNING OF PERIOD - - 33,184,158 ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 299,552 $ 343,901 $ - ============= ============= =============
------------------- Met/Putnam Research Portfolio -------------------------- 2004 (c) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (45,897) Net realized gains (losses) from security transactions 1,622,730 Change in unrealized appreciation (depreciation) of investments (1,276,614) ------------- Net increase (decrease) in net assets resulting from operations 300,219 ------------- From capital transactions: Net purchase payments 73,039 Net investment division transfers (18,375,896) Other net transfers (4,787,968) ------------- Net increase (decrease) in net assets resulting from capital transactions (23,090,825) ------------- NET CHANGE IN NET ASSETS (22,790,606) NET ASSETS - BEGINNING OF PERIOD 22,790,606 ------------- NET ASSETS - END OF PERIOD $ - =============
(c) For the period from January 1, 2004 to November 19, 2004 (d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 43 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Met Investors ----------------------------------------------------------------------------------------------- Met/Putnam Research Lazard Mid-Cap Met/AIM Small-Cap Growth Portfolio B Portfolio B Portfolio -------------------------- ---------------------------- ---------------------------- 2004 (c) 2005 2004 2005 2004 ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (522,928) $ 11,299,782 $ (2,702,748) $ 8,041 $ (5,275) Net realized gains (losses) from security transactions 8,997,703 6,501,495 15,976,683 31,683 10,529 Change in unrealized appreciation (depreciation) of investments (7,997,493) (10,784,556) 4,388,840 (5,623) 12,723 ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 477,282 7,016,721 17,662,775 34,101 17,977 ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 19,058,377 12,430,005 63,328,555 88,741 97,132 Net investment division transfers (84,403,497) (25,566,467) (81,087,583) 142,919 (19,064) Other net transfers (3,615,533) (8,125,158) (8,799,117) (6,887) (19,291) ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (68,960,653) (21,261,620) (26,558,145) 224,773 58,777 ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS (68,483,371) (14,244,899) (8,895,370) 258,874 76,754 NET ASSETS-BEGINNING OF PERIOD 68,483,371 138,065,890 146,961,260 445,303 368,549 ------------- ------------- ------------- ------------- ------------- NET ASSETS-END OF PERIOD $ - $ 123,820,991 $ 138,065,890 $ 704,177 $ 445,303 ============= ============= ============= ============= =============
--------------------- Met/AIM Small-Cap Growth Portfolio B ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 734,586 $ (3,989,640) Net realized gains (losses) from security transactions 6,604,031 21,807,555 Change in unrealized appreciation (depreciation) of investments 1,249,607 (278,818) ------------- ------------- Net increase (decrease) in net assets resulting from operations 8,588,224 17,539,097 ------------- ------------- From capital transactions: Net purchase payments 15,606,310 100,622,101 Net investment division transfers (65,678,496) (30,217,510) Other net transfers (9,605,550) (11,037,210) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (59,677,736) 59,367,381 ------------- ------------- NET CHANGE IN NET ASSETS (51,089,512) 76,906,478 NET ASSETS-BEGINNING OF PERIOD 220,854,664 143,948,186 ------------- ------------- NET ASSETS-END OF PERIOD $ 169,765,152 $ 220,854,664 ============= =============
(c) For the period from January 1, 2004 to November 19, 2004 See accompanying notes to financial statements. (Continued) 44 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Met Investors ----------------------------------------------------------------------------------------------- Harris Oakmark International Third Avenue Small-Cap Value Third Avenue Small-Cap Value Portfolio B Portfolio Portfolio B ------------------------------ ------------------------------ ------------------------------ 2005 2004 2005 2004 2005 2004 -------------- -------------- -------------- -------------- -------------- -------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (805,318) $ (5,685,076) $ (41,079) $ 47,196 $ (3,831,363) $ 1,448,111 Net realized gains (losses) from security transactions 19,012,472 52,686,338 166,476 31,330 23,219,251 45,561,520 Change in unrealized appreciation (depreciation) of investments 11,761,014 19,269,650 477,735 277,825 15,602,308 27,715,455 -------------- -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from operations 29,968,168 66,270,912 603,132 356,351 34,990,196 74,725,086 -------------- -------------- -------------- -------------- -------------- -------------- From capital transactions: Net purchase payments 44,232,281 159,746,170 729,071 245,734 44,087,270 144,807,801 Net investment division transfers (75,836,582) (97,353,253) 2,348,127 1,654,312 (63,196,666) (109,150,376) Other net transfers (13,649,504) (14,969,077) (328,111) (31,064) (16,539,955) (14,630,206) -------------- -------------- -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from capital transactions (45,253,805) 47,423,840 2,749,087 1,868,982 (35,649,351) 21,027,219 -------------- -------------- -------------- -------------- -------------- -------------- NET CHANGE IN NET ASSETS (15,285,637) 113,694,752 3,352,219 2,225,333 (659,155) 95,752,305 NET ASSETS - BEGINNING OF PERIOD 311,119,426 197,424,674 2,802,412 577,079 319,335,400 223,583,095 -------------- -------------- -------------- -------------- -------------- -------------- NET ASSETS - END OF PERIOD $ 295,833,789 $ 311,119,426 $ 6,154,631 $ 2,802,412 $ 318,676,245 $ 319,335,400 ============== ============== ============== ============== ============== ==============
------------------------------- Oppenheimer Capital Appreciation Portfolio ------------------------------ 2005 2004 (g) -------------- -------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (40,319) $ (26,280) Net realized gains (losses) from security transactions 117,726 9,440 Change in unrealized appreciation (depreciation) of investments 472,333 590,950 -------------- -------------- Net increase (decrease) in net assets resulting from operations 549,740 574,110 -------------- -------------- From capital transactions: Net purchase payments 68,943 5,930 Net investment division transfers (42,181) 18,081,446 Other net transfers (2,644,119) (364,136) -------------- -------------- Net increase (decrease) in net assets resulting from capital transactions (2,617,357) 17,723,240 -------------- -------------- NET CHANGE IN NET ASSETS (2,067,617) 18,297,350 NET ASSETS - BEGINNING OF PERIOD 18,297,350 - -------------- -------------- NET ASSETS - END OF PERIOD $ 16,229,733 $ 18,297,350 ============== ==============
(g) For the period from May 3, 2004 to December 31, 2004 See accompanying notes to financial statements. (Continued) 45 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Met Investors ---------------------------------------------------------------------------------------------------- Oppenheimer Capital Appreciation Money Market Janus Aggressive Growth Portfolio B Portfolio B Portfolio B ------------------------------- ---------------------------- ---------------------------- 2005 2004 2005 (a) 2004 2005 2004 ------------- ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (2,523,129) $ 25,609,985 $ 54,572 $ (1,377,328) $ (1,937,020) $ (3,869,202) Net realized gains (losses) from security transactions 13,495,875 27,309,552 - - 9,155,692 19,824,763 Change in unrealized appreciation (depreciation) of investments (3,364,101) (30,034,891) - - 4,199,581 (905,303) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 7,608,645 22,884,646 54,572 (1,377,328) 11,418,253 15,050,258 ------------- ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 27,396,922 210,046,036 22,818,621 73,676,991 8,741,854 101,545,028 Net investment division transfers (120,699,106) (153,861,664) (111,014,906) (59,466,436) (63,859,148) (105,571,911) Other net transfers (22,984,641) (23,746,517) (11,011,473) (30,967,499) (7,147,259) (9,285,301) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (116,286,825) 32,437,855 (99,207,758) (16,756,944) (62,264,553) (13,312,184) ------------- ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS (108,678,180) 55,322,501 (99,153,186) (18,134,272) (50,846,300) 1,738,074 NET ASSETS - BEGINNING OF PERIOD 462,796,500 407,473,999 99,153,186 117,287,458 178,656,634 176,918,560 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 354,118,320 $ 462,796,500 $ - $ 99,153,186 $`127,810,334 $ 178,656,634 ============= ============= ============= ============= ============= =============
--------------------- PIMCO Total Return Bond Portfolio ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (336,158) $ 1,166,390 Net realized gains (losses) from security transactions 472,440 495,278 Change in unrealized appreciation (depreciation) of investments 453,612 (639,625) ------------- ------------- Net increase (decrease) in net assets resulting from operations 589,894 1,022,043 ------------- ------------- From capital transactions: Net purchase payments 3,950,623 1,507,494 Net investment division transfers 2,074,769 33,139,654 Other net transfers (6,806,022) (4,877,671) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (780,630) 29,769,477 ------------- ------------- NET CHANGE IN NET ASSETS (190,736) 30,791,520 NET ASSETS - BEGINNING OF PERIOD 53,478,208 22,686,688 ------------- ------------- NET ASSETS - END OF PERIOD $ 53,287,472 $ 53,478,208 ============= =============
(a) For the period from January 1, 2005 to April 29, 2005 See accompanying notes to financial statements. (Continued) 46 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Met Investors -------------------------------------------------------------------------------------------------- PIMCO Total Return Bond RCM Global Technology RCM Global Technology Portfolio B Portfolio Portfolio B ---------------------------- ---------------------------- ---------------------------- 2005 2004 2005 2004 2005 2004 ------------- ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (3,728,438) $ 27,927,575 $ (3,617) $ (8,854) $ (436,027) $ (1,044,382) Net realized gains (losses) from security transactions 858,004 2,201,587 (43,850) 39,734 (1,418,442) 1,930,754 Change in unrealized appreciation (depreciation) of investments 4,913,289 (15,690,290) 112,221 (96,425) 4,834,351 (2,370,714) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 2,042,855 14,438,872 64,754 (65,545) 2,979,882 (1,484,342) ------------- ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 31,229,491 164,802,723 121,091 170,031 3,819,529 22,082,000 Net investment division transfers (71,742,377) (198,232,648) (66,305) 15,509 (18,171,983) 3,746,099 Other net transfers (26,307,978) (30,716,139) (73,057) (49,319) (3,067,834) (3,630,024) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (66,820,864) (64,146,064) (18,271) 136,221 (17,420,288) 22,198,075 ------------- ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS (64,778,009) (49,707,192) 46,483 70,676 (14,440,406) 20,713,733 NET ASSETS - BEGINNING OF PERIOD 430,243,605 479,950,797 716,963 646,287 62,731,454 42,017,721 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 365,465,596 $ 430,243,605 $ 763,446 $ 716,963 $ 48,291,048 $ 62,731,454 ============= ============= ============= ============= ============= =============
-------------------- PIMCO Inflation Protected Bond Portfolio B ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (4,258,956) $ 12,252,266 Net realized gains (losses) from security transactions 3,481,462 18,343,529 Change in unrealized appreciation (depreciation) of investments (451,994) 854,458 ------------- ------------- Net increase (decrease) in net assets resulting from operations (1,229,488) 31,450,253 ------------- ------------- From capital transactions: Net purchase payments 29,200,003 199,437,324 Net investment division transfers (101,121,979) (112,202,113) Other net transfers (17,363,010) (19,804,845) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (89,284,986) 67,430,366 ------------- ------------- NET CHANGE IN NET ASSETS (90,514,474) 98,880,619 NET ASSETS - BEGINNING OF PERIOD 366,675,226 267,794,607 ------------- ------------- NET ASSETS - END OF PERIOD $ 276,160,752 $ 366,675,226 ============= =============
See accompanying notes to financial statements. (Continued) 47 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Met Investors --------------------------------------------------------------------------------------------------- T. Rowe Price Mid-Cap Growth MFS Research International MFS Research International Portfolio B Portfolio Portfolio B ---------------------------- ---------------------------- ---------------------------- 2005 2004 2005 2004 (g) 2005 2004 ------------- ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 1,550,643 $ (3,522,599) $ 75,756 $ 210 $ 6,818,497 $ (3,338,841) Net realized gains (losses) from security transactions. 5,797,023 18,616,632 33,648 697 13,061,321 36,350,149 Change in unrealized appreciation (depreciation) of investments 15,711,237 11,556,771 119,538 38,520 5,038,033 17,372,956 ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 23,058,903 26,650,804 228,942 39,427 24,917,851 50,384,264 ------------- ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 29,182,475 84,852,922 146,764 20,337 19,388,186 79,857,470 Net investment division transfers (17,494,204) (110,635,816) 1,051,163 449,613 (62,704,698) (8,362,969) Other net transfers (12,153,190) (10,643,861) (81,034) - (10,326,429) (11,520,013) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (464,919) (36,426,755) 1,116,893 469,950 (53,642,941) 59,974,488 ------------- ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS 22,593,984 (9,775,951) 1,345,835 509,377 (28,725,090) 110,358,752 NET ASSETS - BEGINNING OF PERIOD 194,196,493 203,972,444 509,377 - 231,859,445 121,500,693 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 216,790,477 $ 194,196,493 $ 1,855,212 $ 509,377 $ 203,134,355 $ 231,859,445 ============= ============= ============= ============= ============= =============
------------------ Neuberger Berman Real Estate Portfolio B ---------------------------- 2005 2004 (g) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (941,580) $ 2,056,852 Net realized gains (losses) from security transactions. 6,286,475 13,291,676 Change in unrealized appreciation (depreciation) of investments (174,297) 14,778,994 ------------- ------------- Net increase (decrease) in net assets resulting from operations 5,170,598 30,127,522 ------------- ------------- From capital transactions: Net purchase payments 13,901,674 25,373,692 Net investment division transfers (25,677,556) 30,740,588 Other net transfers (3,842,962) (3,560,058) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (15,618,844) 52,554,222 ------------- ------------- NET CHANGE IN NET ASSETS (10,448,246) 82,681,744 NET ASSETS - BEGINNING OF PERIOD 82,681,744 - ------------- ------------- NET ASSETS - END OF PERIOD $ 72,233,498 $ 82,681,744 ============= =============
(g) For the period from May 3, 2004 to December 31, 2004 See accompanying notes to financial statements. (Continued) 48 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Met Investors ----------------------------------------------------------------------------------------- Turner Mid-Cap Growth Goldman Sachs Mid-Cap Value Defensive Strategy Fund of Portfolio B Portfolio B Fund Portfolio B ---------------------------- ---------------------------- ---------------------------- 2005 2004 (g) 2005 2004 (g) 2005 2004 (f) ------------- ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 666,031 $ (841,006) $ 5,240,931 $ (139,037) $ (611,356) $ 1,647,956 Net realized gains (losses) from security transactions 2,931,951 5,309,182 4,435,533 8,797,585 902,896 - Change in unrealized appreciation (depreciation) of investments (958,525) 7,666,573 (2,769,221) 11,000,598 7,272,970 (294,057) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 2,639,457 12,134,749 6,907,243 19,659,146 7,564,510 1,353,899 ------------- ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 4,835,320 20,604,840 24,696,313 27,653,490 72,228,685 5,487,168 Net investment division transfers (24,082,865) 26,949,035 (6,180,261) 30,543,761 99,827,601 97,312,403 Other net transfers (1,858,580) (1,968,358) (4,801,477) (2,381,224) (13,021,934) (462,130) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (21,106,125) 45,585,517 13,714,575 55,816,027 159,034,352 102,337,441 ------------- ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS (18,466,668) 57,720,266 20,621,818 75,475,173 166,598,862 103,691,340 NET ASSETS - BEGINNING OF PERIOD 57,720,266 - 75,475,173 - 103,691,340 - ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 39,253,598 $ 57,720,266 $ 96,096,991 $ 75,475,173 $ 270,290,202 $ 103,691,340 ============= ============= ============= ============= ============= =============
----------------------------- Moderate Strategy Fund of Fund Portfolio B ---------------------------- 2005 2004 (f) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (1,403,981) $ 4,560,314 Net realized gains (losses) from security transactions 2,318,404 - Change in unrealized appreciation (depreciation) of investments 35,770,238 895,904 ------------- ------------- Net increase (decrease) in net assets resulting from operations 36,684,661 5,456,218 ------------- ------------- From capital transactions: Net purchase payments 235,140,028 23,351,732 Net investment division transfers 262,271,757 343,823,589 Other net transfers (40,030,753) (345,858) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 457,381,032 366,829,463 ------------- ------------- NET CHANGE IN NET ASSETS 494,065,693 372,285,681 NET ASSETS - BEGINNING OF PERIOD 372,285,681 - ------------- ------------- NET ASSETS - END OF PERIOD $ 866,351,374 $ 372,285,681 ============= =============
(f) For the period from November 22, 2004 to December 31, 2004 (g) For the period from May 3, 2004 to December 31, 2004 See accompanying notes to financial statements. (Continued) 49 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Met Investors ----------------------------------------------------------------------------------------------------- Balanced Strategy Fund of Fund Growth Strategy Fund of Fund Aggressive Strategy Fund of Fund Portfolio B Portfolio B Portfolio B ------------------------------ ----------------------------- ------------------------------- 2005 2004 (f) 2005 2004 (f) 2005 2004 (f) -------------- -------------- -------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (4,492,223) $ 10,452,008 $ (4,127,638) $ 4,976,102 $ (1,458,595) $ 245,779 Net realized gains (losses) from security transactions 667,945 - 100,990 - 333,979 - Change in unrealized appreciation (depreciation) of investments 139,053,277 10,765,002 158,330,857 15,698,765 39,921,987 4,595,051 -------------- -------------- -------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 135,228,999 21,217,010 154,304,209 20,674,867 38,797,371 4,840,830 -------------- -------------- -------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 744,839,691 81,657,374 676,269,942 54,473,523 124,548,718 12,627,286 Net investment division transfers 703,612,982 1,087,382,362 580,940,328 897,185,960 122,869,798 201,703,072 Other net transfers (100,237,191) (35,407) (65,478,227) (874,580) (13,864,175) (463,661) -------------- -------------- -------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 1,348,215,482 1,169,004,329 1,191,732,043 950,784,903 233,554,341 213,866,697 -------------- -------------- -------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS 1,483,444,481 1,190,221,339 1,346,036,252 971,459,770 272,351,712 218,707,527 NET ASSETS - BEGINNING OF PERIOD 1,190,221,339 - 971,459,770 - 218,707,527 - -------------- -------------- -------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $2,673,665,820 $1,190,221,339 $2,317,496,022 $ 971,459,770 $ 491,059,239 $ 218,707,527 ============== ============== ============== ============= ============= =============
---------------------- Van Kampen Comstock Portfolio B --------------------------- 2005 (b) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 214,615 Net realized gains (losses) from security transactions (66) Change in unrealized appreciation (depreciation) of investments 221,096 ------------- Net increase (decrease) in net assets resulting from operations 435,645 ------------- From capital transactions: Net purchase payments 9,176,704 Net investment division transfers 7,360,164 Other net transfers (186,462) ------------- Net increase (decrease) in net assets resulting from capital transactions 16,350,406 ------------- NET CHANGE IN NET ASSETS 16,786,051 NET ASSETS - BEGINNING OF PERIOD - ------------- NET ASSETS - END OF PERIOD $ 16,786,051 =============
(b) For the period from May 2, 2005 to December 31, 2005 (f) For the period from November 22, 2004 to December 31, 2004 See accompanying notes to financial statements. (Continued) 50 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Met Investors ------------------------------------------------------------ Legg Mason Value Equity Met/Putnam Capital Opportunities Portfolio B Portfolio B --------------------------- -------------------------------- 2005 (d) 2005 (d) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (874) $ - Net realized gains (losses) from security transactions. 4 - Change in unrealized appreciation (depreciation) of investments (8,725) - ------------- ------------- Net increase (decrease) in net assets resulting from operations (9,595) - ------------- ------------- From capital transactions: Net purchase payments 1,283,657 - Net investment division transfers 61,648 - Other net transfers - - ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 1,345,305 - ------------- ------------- NET CHANGE IN NET ASSETS 1,335,710 - NET ASSETS - BEGINNING OF PERIOD - - ------------- ------------- NET ASSETS - END OF PERIOD $ 1,335,710 $ - ============= =============
AIM ---------------------------------------------------------- Premier Equity Capital Appreciation Fund Fund ---------------------------- ---------------------------- 2005 2004 2005 2004 ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (8,086) $ (13,596) $ (9,121) $ (10,313) Net realized gains (losses) from security transactions. (56,891) (87,947) (10,715) (41,575) Change in unrealized appreciation (depreciation) of investments 114,334 154,810 67,960 85,483 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 49,357 53,267 48,124 33,595 ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments - 332 720 4,400 Net investment division transfers (23,722) (43,156) (18,547) (22,138) Other net transfers (184,260) (147,157) (41,023) (96,946) ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (207,982) (189,981) (58,850) (114,684) ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS (158,625) (136,714) (10,726) (81,089) NET ASSETS - BEGINNING OF PERIOD 1,394,737 1,531,451 719,217 800,306 ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 1,236,112 $ 1,394,737 $ 708,491 $ 719,217 ============= ============= ============= =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 51 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
AIM ---------------------------------------------------------- International Growth Basic Balanced Fund Fund ---------------------------- ---------------------------- 2005 2004 2005 2004 ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (5,719) $ (5,410) $ (301) $ (177) Net realized gains (losses) from security transactions 1,383 (17,714) (11,929) (17,498) Change in unrealized appreciation (depreciation) of investments 124,742 163,836 51,224 83,501 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 120,406 140,712 38,994 65,826 ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 744 4,185 - 101 Net investment division transfers (9,669) (18,568) (23,565) 11,484 Other net transfers (38,731) (22,235) (156,023) (84,421) ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (47,656) (36,618) (179,588) (72,836) ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS 72,750 104,094 (140,594) (7,010) NET ASSETS - BEGINNING OF PERIOD 766,724 662,630 1,165,729 1,172,739 ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 839,474 $ 766,724 $ 1,025,135 $ 1,165,729 ============= ============= ============= =============
MFS ---------------------------------------------------------- Research Investors Trust Series Series ---------------------------- ---------------------------- 2005 2004 2005 2004 ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (3,069) $ (962) $ (1,388) $ (1,297) Net realized gains (losses) from security transactions (2,744) (20,397) 1,107 (3,433) Change in unrealized appreciation (depreciation) of investments 26,000 65,099 9,733 20,319 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 20,187 43,740 9,452 15,589 ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments - - - - Net investment division transfers (7,747) (36,922) (8,412) (10,745) Other net transfers (24,407) (33,966) (5,995) (34,671) ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (32,154) (70,888) (14,407) (45,416) ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS (11,967) (27,148) (4,955) (29,827) NET ASSETS - BEGINNING OF PERIOD 348,760 375,908 169,640 199,467 ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 336,793 $ 348,760 $ 164,685 $ 169,640 ============= ============= ============= =============
See accompanying notes to financial statements. (Continued) 52 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
MFS Oppenheimer ---------------------------- ----------------------------------------------------------- New Discovery Main Street Growth & Income Bond Series Fund Fund ---------------------------- ---------------------------- ---------------------------- 2005 2004 2005 2004 2005 2004 ------------- ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (2,943) $ (3,962) $ (17) $ 5,060 $ 14,798 $ 14,635 Net realized gains (losses) from security transactions (2,079) (13,231) (440) (137,123) 1,157 448 Change in unrealized appreciation (depreciation) of investments 10,671 23,863 13,076 149,472 (11,332) 222 ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 5,649 6,670 12,619 17,409 4,623 15,305 ------------- ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments - 30 - 3,017 - 202 Net investment division transfers (15,622) (49,309) (4,071) (1,369,999) (22,463) (4,443) Other net transfers (17,032) (70,744) (27,708) (31,875) (12,439) (51,461) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (32,654) (120,023) (31,779) (1,398,857) (34,902) (55,702) ------------- ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS (27,005) (113,353) (19,160) (1,381,448) (30,279) (40,397) NET ASSETS - BEGINNING OF PERIOD 235,687 349,040 314,388 1,695,836 402,738 443,135 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 208,682 $ 235,687 $ 295,228 $ 314,388 $ 372,459 $ 402,738 ============= ============= ============= ============= ============= =============
----------------------------- Strategic Bond Fund ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 3,510 $ 10,799 Net realized gains (losses) from security transactions 6,425 7,839 Change in unrealized appreciation (depreciation) of investments (9,004) (11,242) ------------- ------------- Net increase (decrease) in net assets resulting from operations 931 7,396 ------------- ------------- From capital transactions: Net purchase payments - - Net investment division transfers - (145,659) Other net transfers (64,320) (1,913) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (64,320) (147,572) ------------- ------------- NET CHANGE IN NET ASSETS (63,389) (140,176) NET ASSETS - BEGINNING OF PERIOD 111,803 251,979 ------------- ------------- NET ASSETS - END OF PERIOD $ 48,414 $ 111,803 ============= =============
See accompanying notes to financial statements. (Continued) 53 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Oppenheimer ------------------------------------------------------------------------------------- Main Street Small-Cap Growth Money Capital Appreciation Fund Fund Fund ---------------------------- ---------------------------- ------------------------- 2005 2004 2005 2004 2005 (d) ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 2,435 $ (2,608) $ 3,282 $ (1,803) $ - Net realized gains (losses) from security transactions 6,067 3,590 - - - Change in unrealized appreciation (depreciation) of investments 5,659 28,777 - - - ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 14,161 29,759 3,282 (1,803) - ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments - 561 - - - Net investment division transfers (12,275) - (27,260) (124,587) - Other net transfers (6,677) (17,712) (78,764) (116,580) - ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (18,952) (17,151) (106,024) (241,167) - ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS (4,791) 12,608 (102,742) (242,970) - NET ASSETS - BEGINNING OF PERIOD 194,871 182,263 298,120 541,090 - ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 190,080 $ 194,871 $ 195,378 $ 298,120 $ - ============= ============= ============= ============= =============
Fidelity ---------------------------- Asset Manager Portfolio ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 2,242,544 $ 2,344,405 Net realized gains (losses) from security transactions (2,110,546) (2,087,213) Change in unrealized appreciation (depreciation) of investments 3,606,847 6,220,678 ------------- ------------- Net increase (decrease) in net assets resulting from operations 3,738,845 6,477,870 ------------- ------------- From capital transactions: Net purchase payments 7,546,788 6,413,602 Net investment division transfers (9,921,558) (6,138,000) Other net transfers (16,300,590) (15,412,600) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (18,675,360) (15,136,998) ------------- ------------- NET CHANGE IN NET ASSETS (14,936,515) (8,659,128) NET ASSETS - BEGINNING OF PERIOD 164,901,250 173,560,378 ------------- ------------- NET ASSETS - END OF PERIOD $ 149,964,735 $ 164,901,250 ============= =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 54 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Fidelity ----------------------------------------------------------------------------------------- Growth Contrafund Overseas Portfolio Portfolio Portfolio ---------------------------- ---------------------------- ---------------------------- 2005 2004 2005 2004 2005 2004 ------------- ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (1,934,714) $ (2,782,737) $ (3,026,410) $ (2,654,279) $ (6,049) $ (6,309) Net realized gains (losses) from security transactions (7,095,149) (7,634,812) 3,877,670 1,744,097 (159,567) (548,352) Change in unrealized appreciation (depreciation) of investments 18,387,197 14,833,445 41,502,913 35,062,867 1,878,817 1,804,993 ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 9,357,334 4,415,896 42,354,173 34,152,685 1,713,201 1,250,332 ------------- ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 13,927,867 18,066,489 17,262,232 18,017,677 243,188 269,931 Net investment division transfers (21,537,464) (18,940,842) 825,066 (4,574,866) (196,354) (428,126) Other net transfers (22,019,362) (21,498,853) (23,199,750) (18,362,223) (1,699,999) (2,179,238) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (29,628,959) (22,373,206) (5,112,452) (4,919,412) (1,653,165) (2,337,433) ------------- ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS (20,271,625) (17,957,310) 37,241,721 29,233,273 60,036 (1,087,101) NET ASSETS - BEGINNING OF PERIOD 251,302,201 269,259,511 278,739,238 249,505,965 11,247,255 12,334,356 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 231,030,576 $ 251,302,201 $ 315,980,959 $ 278,739,238 $ 11,307,291 $ 11,247,255 ============= ============= ============= ============= ============= =============
----------------------------- Equity - Income Portfolio ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 886,199 $ 141,110 Net realized gains (losses) from security transactions 225,830 65,049 Change in unrealized appreciation (depreciation) of investments (282,062) 2,010,741 ------------- ------------- Net increase (decrease) in net assets resulting from operations 829,967 2,216,900 ------------- ------------- From capital transactions: Net purchase payments 82,641 77,952 Net investment division transfers (180,764) 229,534 Other net transfers (3,776,055) (4,161,414) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (3,874,178) (3,853,928) ------------- ------------- NET CHANGE IN NET ASSETS (3,044,211) (1,637,028) NET ASSETS - BEGINNING OF PERIOD 23,638,818 25,275,846 ------------- ------------- NET ASSETS - END OF PERIOD $ 20,594,607 $ 23,638,818 ============= =============
See accompanying notes to financial statements. (Continued) 55 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Fidelity ------------------------------------------------------------------------------------------ Index 500 Money Market Mid-Cap Portfolio Portfolio Portfolio B --------------------------- ---------------------------- -------------------------- 2005 2004 2005 2004 2005 (d) ------------ ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 727,778 $ (14,501) $ 508,284 $ (36,951) $ - Net realized gains (losses) from security transactions 1,609,808 205,474 - - - Change in unrealized appreciation (depreciation) of investments 2,214,439 13,352,761 - - - ------------ ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 4,552,025 13,543,734 508,284 (36,951) - ------------ ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 17,608 33,300 8,117,814 11,407,103 - Net investment division transfers (11,379,815) (11,911,707) (3,173,149) (5,163,355) - Other net transfers (10,487,336) (9,655,740) (3,244,973) (3,591,291) - ------------ ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (21,849,543) (21,534,147) 1,699,692 2,652,457 - ------------ ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS (17,297,518) (7,990,413) 2,207,976 2,615,506 - NET ASSETS - BEGINNING OF PERIOD 156,921,964 164,912,377 29,288,538 26,673,032 - ------------ ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $139,624,446 $ 156,921,964 $ 31,496,514 $ 29,288,538 $ - ============ ============= ============= ============= =============
----------------------- Contrafund Portfolio B --------------------------- 2005 (d) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (31) Net realized gains (losses) from security transactions - Change in unrealized appreciation (depreciation) of investments (379) ------------- Net increase (decrease) in net assets resulting from operations (410) ------------- From capital transactions: Net purchase payments 82,841 Net investment division transfers 4,583 Other net transfers - ------------- Net increase (decrease) in net assets resulting from capital transactions 87,424 ------------- NET CHANGE IN NET ASSETS 87,014 NET ASSETS - BEGINNING OF PERIOD - ------------- NET ASSETS - END OF PERIOD $ 87,014 =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 56 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Scudder I ---------------------------- ------------------------------- International FI Mid-Cap Portfolio Portfolio ---------------------------- ---------------------------- 2005 2004 2005 2004 ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 58,000 $ (15,779) $ (48,846) $ (13,442) Net realized gains (losses) from security transactions (197,126) (774,822) (12,734) (68,076) Change in unrealized appreciation (depreciation) of investments 3,662,606 3,899,643 295,898 499,735 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 3,523,480 3,109,042 234,318 418,217 ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 2,218,565 2,505,281 557,376 363,376 Net investment division transfers (261,578) (1,383,319) 326,714 1,768,728 Other net transfers (1,696,765) (1,553,606) (349,078) (124,324) ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 260,222 (431,644) 535,012 2,007,780 ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS 3,783,702 2,677,398 769,330 2,425,997 NET ASSETS - BEGINNING OF PERIOD 23,956,966 21,279,568 3,334,720 908,723 ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 27,740,668 $ 23,956,966 $ 4,104,050 $ 3,334,720 ============= ============= ============= =============
MetLife --------------------------------------------------------- Russell 2000 Index FI International Stock Portfolio Portfolio ---------------------------- ---------------------------- 2005 2004 2005 2004 ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 164,547 $ (42,613) $ (4,439) $ (656) Net realized gains (losses) from security transactions 330,827 225,310 17,991 2,062 Change in unrealized appreciation (depreciation) of investments (275,880) 379,609 84,277 65,240 ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 219,494 562,306 97,829 66,646 ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 1,010,785 714,378 3,850 350 Net investment division transfers 290,189 2,912,949 159,978 112,334 Other net transfers (547,802) (266,495) (79,269) (43,841) ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 753,172 3,360,832 84,559 68,843 ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS 972,666 3,923,138 182,388 135,489 NET ASSETS - BEGINNING OF PERIOD 6,150,895 2,227,757 500,667 365,178 ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 7,123,561 $ 6,150,895 $ 683,055 $ 500,667 ============= ============= ============= =============
See accompanying notes to financial statements. (Continued) 57 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
MetLife -------------------------------------------------------------------------------------------- FI International Stock Met/Putnam Voyager Stock Index Portfolio B Portfolio A Portfolio -------------------------- ---------------------------- ---------------------------- 2005 (d) 2005 (a) 2004 2005 2004 ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ - $ 144 $ (5,226) $ 213,987 $ (334,511) Net realized gains (losses) from security transactions - (141,089) (29,279) 1,570,677 924,563 Change in unrealized appreciation (depreciation) of investments - 109,175 49,249 740,389 5,858,151 ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations - (31,770) 14,744 2,525,053 6,448,203 ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments - 121 9,551 7,069,078 7,476,250 Net investment division transfers - (353,829) 1,966 411,492 1,928,797 Other net transfers - (12,730) (47,040) (8,563,562) (7,197,876) ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions - (366,438) (35,523) (1,082,992) 2,207,171 ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS - (398,208) (20,779) 1,442,061 8,655,374 NET ASSETS - BEGINNING OF PERIOD - 398,208 418,987 78,250,221 69,594,847 ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ - $ - $ 398,208 $ 79,692,282 $ 78,250,221 ============= ============= ============= ============= =============
----------------------- Stock Index Portfolio B ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (522,198) $ (1,613,017) Net realized gains (losses) from security transactions 5,665,464 918,964 Change in unrealized appreciation (depreciation) of investments 896,649 16,307,278 ------------- ------------- Net increase (decrease) in net assets resulting from operations 6,039,915 15,613,225 ------------- ------------- From capital transactions: Net purchase payments 28,178,869 55,258,660 Net investment division transfers (7,944,404) 13,229,585 Other net transfers (15,961,634) (8,296,368) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 4,272,831 60,191,877 ------------- ------------- NET CHANGE IN NET ASSETS 10,312,746 75,805,102 NET ASSETS - BEGINNING OF PERIOD 211,685,671 135,880,569 ------------- ------------- NET ASSETS - END OF PERIOD $ 221,998,417 $ 211,685,671 ============= =============
(a) For the period from January 1, 2005 to April 29, 2005 (d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 58 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
MetLife --------------------------------------------------------------------------------------------- BlackRock Legacy Large-Cap Growth BlackRock Strategic Value BlackRock Bond Income Class A Class A Class A --------------------------------- ---------------------------- ---------------------------- 2005 2004 2005 2004 2005 2004 --------------- ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (3,289) $ (3,004) $ 536,620 $ (82,254) $ 81,797 $ 42,172 Net realized gains (losses) from security transactions 21,191 12,572 188,690 150,224 (7,303) 172 Change in unrealized appreciation (depreciation) of investments 4,508 9,341 (377,877) 891,729 (48,894) 5,035 ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 22,410 18,909 347,433 959,699 25,600 47,379 ------------- ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 59,514 50,213 1,997,517 1,703,015 480,460 436,936 Net investment division transfers 71,110 101,127 250,543 4,004,867 1,050,830 993,180 Other net transfers (13,523) (71,122) (483,344) (248,088) (172,164) (155,990) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 117,101 80,218 1,764,716 5,459,794 1,359,126 1,274,126 ------------- ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS 139,511 99,127 2,112,149 6,419,493 1,384,726 1,321,505 NET ASSETS - BEGINNING OF PERIOD 303,678 204,551 9,171,187 2,751,694 1,979,056 657,551 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 443,189 $ 303,678 $ 11,283,336 $ 9,171,187 $ 3,363,782 $ 1,979,056 ============= ============= ============= ============= ============= =============
------------------------------ BlackRock Large-Cap Value Class A ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 3,166 $ (5,438) Net realized gains (losses) from security transactions 38,642 6,868 Change in unrealized appreciation (depreciation) of investments (3,542) 51,558 ------------- ------------- Net increase (decrease) in net assets resulting from operations 38,266 52,988 ------------- ------------- From capital transactions: Net purchase payments 121,408 92,441 Net investment division transfers 250,672 256,151 Other net transfers (58,441) (6,437) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 313,639 342,155 ------------- ------------- NET CHANGE IN NET ASSETS 351,905 395,143 NET ASSETS - BEGINNING OF PERIOD 607,290 212,147 ------------- ------------- NET ASSETS - END OF PERIOD $ 959,195 $ 607,290 ============= =============
See accompanying notes to financial statements. (Continued) 59 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
MetLife ----------------------------------------------------------------------------------------- Lehman Brothers Aggregate Bond FI Mid-Cap Harris Oakmark Large-Cap Value Index Class A Opportunities Class A ---------------------------- -------------------------- ---------------------------- 2005 2004 2004 (e) 2005 2004 ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 67,432 $ $20,360 $ 75,483 $ (34,138) $ (28,485) Net realized gains (losses) from security transactions. (580) 1,913 (26,828) 100,980 24,268 Change in unrealized appreciation (depreciation) of investments (44,909) 18,540 (88,530) (190,418) 347,478 ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 21,943 40,813 (39,875) (123,576) 343,261 ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 623,715 439,976 156,728 990,460 776,024 Net investment division transfers 1,222,982 1,202,378 (847,751) 452,335 1,727,417 Other net transfers (197,040) (84,351) (87,636) (279,328) (151,913) ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 1,649,657 1,558,003 (778,659) 1,163,467 2,351,528 ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS 1,671,600 1,598,816 (818,534) 1,039,891 2,694,789 NET ASSETS - BEGINNING OF PERIOD 2,300,758 701,942 818,534 4,444,030 1,749,241 ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 3,972,358 $ 2,300,758 $ - $ 5,483,921 $ 4,444,030 ============= ============= ============= ============= =============
--------------------------- Morgan Stanley EAFE Index Class A ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 9,145 $ (16,834) Net realized gains (losses) from security transactions. 44,220 25,162 Change in unrealized appreciation (depreciation) of investments 741,422 508,973 ------------- ------------- Net increase (decrease) in net assets resulting from operations 794,787 517,301 ------------- ------------- From capital transactions: Net purchase payments 1,316,886 686,526 Net investment division transfers 2,406,994 1,867,853 Other net transfers (398,270) (132,830) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 3,325,610 2,421,549 ------------- ------------- NET CHANGE IN NET ASSETS 4,120,397 2,938,850 NET ASSETS - BEGINNING OF PERIOD 4,007,493 1,068,643 ------------- ------------- NET ASSETS - END OF PERIOD $ 8,127,890 $ 4,007,493 ============= =============
(e) For the period from January 1, 2004 to May 1, 2004 See accompanying notes to financial statements. (Continued) 60 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
MetLife ----------------------------------------------------------------------------------------- MFS Total Return Mid-Cap Stock Index Davis Venture Class A Class A Value Fund ---------------------------- ---------------------------- ---------------------------- 2005 2004 2005 2004 2005 2004 ------------- ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 79,244 $ $32,990 $ 249,645 $ (28,035) $ (30,603) $ (12,900) Net realized gains (losses) from security transactions 24,033 (21,369) 90,225 23,748 50,867 26,062 Change in unrealized appreciation (depreciation) of investments 33,936 188,277 346,192 502,987 376,187 185,516 ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 137,213 199,898 686,062 498,700 396,451 198,678 ------------- ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 1,127,436 3,531,737 1,477,848 954,128 686,138 377,882 Net investment division transfers 2,840,082 (355,251) 1,343,574 2,080,347 2,742,649 1,269,727 Other net transfers (309,012) - (441,563) (183,797) (272,782) (47,240) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 3,658,506 3,176,486 2,379,859 2,850,678 3,156,005 1,600,369 ------------- ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS 3,795,719 3,376,384 3,065,921 3,349,378 3,552,456 1,799,047 NET ASSETS - BEGINNING OF PERIOD 4,142,338 765,954 4,833,477 1,484,099 2,581,378 782,331 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 7,938,057 $ 4,142,338 $ 7,899,398 $ 4,833,477 $ 6,133,834 $ 2,581,378 ============= ============= ============= ============= ============= =============
----------------------------- Davis Venture Value Fund E ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (5,967,890) $ (8,204,069) Net realized gains (losses) from security transactions 34,479,658 62,228,122 Change in unrealized appreciation (depreciation) of investments 13,897,692 19,965,602 ------------- ------------- Net increase (decrease) in net assets resulting from operations 42,409,460 73,989,655 ------------- ------------- From capital transactions: Net purchase payments 64,214,461 250,978,454 Net investment division transfers (144,483,629) (79,589,251) Other net transfers (30,648,024) (30,208,664) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (110,917,192) 141,180,539 ------------- ------------- NET CHANGE IN NET ASSETS (68,507,732) 215,170,194 NET ASSETS - BEGINNING OF PERIOD 637,147,092 421,976,898 ------------- ------------- NET ASSETS - END OF PERIOD $ 568,639,360 $ 637,147,092 ============= =============
See accompanying notes to financial statements. (Continued) 61 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
MetLife --------------------------------------------------------------------------------------- Harris Oakmark Focused Value Harris Oakmark Focused Value Jennison Growth Fund A Fund B Portfolio A ---------------------------- ---------------------------- --------------------------- 2005 2004 2005 2004 2005 (b) ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (63,889) $ (34,791) $ (2,268,298) $ (2,304,431) $ (3,585) Net realized gains (losses) from security transactions 177,938 30,887 20,484,547 39,323,227 11,145 Change in unrealized appreciation (depreciation) of investments 1,226,931 892,834 8,816,916 (4,829,272) 65,078 ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 1,340,980 888,930 27,033,165 32,189,524 72,638 ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 3,245,446 2,646,301 38,108,551 173,527,744 3,342 Net investment division transfers 5,423,642 5,623,567 (75,525,778) (180,014,819) 338,857 Other net transfers (861,057) (501,782) (24,521,841) (23,120,716) (46,767) ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 7,808,031 7,768,086 (61,939,068) (29,607,791) 295,432 ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS 9,149,011 8,657,016 (34,905,903) 2,581,733 368,070 NET ASSETS - BEGINNING OF PERIOD 12,299,372 3,642,356 412,523,783 409,942,050 - ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 21,448,383 $ 12,299,372 $ 377,617,880 $ 412,523,783 $ 368,070 ============= ============= ============= ============= =============
----------------------------- Jennison Growth Portfolio B ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (2,800,038) $ (4,540,203) Net realized gains (losses) from security transactions 10,582,752 24,712,282 Change in unrealized appreciation (depreciation) of investments 8,034,770 2,377,607 ------------- ------------- Net increase (decrease) in net assets resulting from operations 15,817,484 22,549,686 ------------- ------------- From capital transactions: Net purchase payments 17,169,997 121,283,027 Net investment division transfers (68,285,225) (86,038,762) Other net transfers (10,005,098) (12,757,826) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (61,120,326) 22,486,439 ------------- ------------- NET CHANGE IN NET ASSETS (45,302,842) 45,036,125 NET ASSETS - BEGINNING OF PERIOD 229,058,814 184,022,689 ------------- ------------- NET ASSETS - END OF PERIOD $ 183,755,972 $ 229,058,814 ============= =============
(b) For the period from May 2, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 62 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
MetLife --------------------------------------------------------------------------------------- BlackRock Money Market BlackRock Money Market T. Rowe Price Small-Cap Growth Portfolio A Portfolio B Class A ---------------------------- -------------------------- ---------------------------- 2005 2004 (g) 2005 (b) 2005 2004 (g) ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 638 $ (296) $ 1,114,808 $ (8,724) $ (1,485) Net realized gains (losses) from security transactions - - - 11,710 (4,315) Change in unrealized appreciation (depreciation) of investments - - - 71,200 39,931 ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 638 (296) 1,114,808 74,186 34,131 ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments - - 44,029,115 85,540 25,079 Net investment division transfers 10,589 68,849 103,694,334 419,104 362,762 Other net transfers (11,476) (25,686) (25,095,218) (65,018) (3,239) ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (887) 43,163 122,628,231 439,626 384,602 ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS (249) 42,867 123,743,039 513,812 418,733 NET ASSETS - BEGINNING OF PERIOD 42,867 - - 418,733 - ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD. $ 42,618 $ 42,867 $ 123,743,039 $ 932,545 $ 418,733 ============= ============= ============= ============= =============
-------------------------------- Salomon Brothers U.S. Government Class B -------------------------------- 2005 (b) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (29,973) Net realized gains (losses) from security transactions (2,529) Change in unrealized appreciation (depreciation) of investments 7,855 ------------- Net increase (decrease) in net assets resulting from operations (24,647) ------------- From capital transactions: Net purchase payments 1,679,808 Net investment division transfers 4,646,702 Other net transfers (261,080) ------------- Net increase (decrease) in net assets resulting from capital transactions 6,065,430 ------------- NET CHANGE IN NET ASSETS 6,040,783 NET ASSETS - BEGINNING OF PERIOD - ------------- NET ASSETS - END OF PERIOD. $ 6,040,783 =============
(b) For the period from May 2, 2005 to December 31, 2005 (g) For the period from May 3, 2004 to December 31, 2004 See accompanying notes to financial statements. (Continued) 63 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
MetLife Van Kampen -------------------------- ------------------------------------------------------- Oppenheimer Global Equity Emerging Growth Emerging Growth Portfolio B Fund Fund B -------------------------- ---------------------------- ------------------------- 2005 (d) 2005 2004 2005 (d) ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ - $ (4,855) $ (6,707) $ - Net realized gains (losses) from security transactions - (25,226) (34,248) - Change in unrealized appreciation (depreciation) of investments - 55,406 63,504 - ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations - 25,325 22,549 - ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments - - 270 - Net investment division transfers - (412) (28,243) - Other net transfers - (82,990) (63,594) - ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions - (83,402) (91,567) - ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS - (58,077) (69,018) - NET ASSETS - BEGINNING OF PERIOD - 460,401 529,419 - ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ - $ 402,324 $ 460,401 $ - ============= ============= ============= =============
----------------------------- Enterprise Fund ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (1,040) $ (1,611) Net realized gains (losses) from security transactions (1,785) (7,096) Change in unrealized appreciation (depreciation) of investments 12,802 12,323 ------------- ------------- Net increase (decrease) in net assets resulting from operations 9,977 3,616 ------------- ------------- From capital transactions: Net purchase payments - - Net investment division transfers 58 7,091 Other net transfers (10,743) (19,549) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (10,685) (12,458) ------------- ------------- NET CHANGE IN NET ASSETS (708) (8,842) NET ASSETS - BEGINNING OF PERIOD 161,021 169,863 ------------- ------------- NET ASSETS - END OF PERIOD $ 160,313 $ 161,021 ============= =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 64 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Van Kampen ---------------------------------------------------------------------------------- Growth & Income Growth & Income Comstock Fund Fund B Fund B ---------------------------- -------------------------- ------------------------- 2005 2004 2005 (d) 2005 (d) ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 6,861 $ (1,217) $ - $ - Net realized gains (losses) from security transactions 15,310 7,607 - - Change in unrealized appreciation (depreciation) of investments 1,796 29,963 - - ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 23,967 36,353 - - ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments - - - - Net investment division transfers (2,267) (972) - - Other net transfers (60,632) (38,621) - - ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (62,899) (39,593) - - ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS (38,932) (3,240) - - NET ASSETS - BEGINNING OF PERIOD 311,905 315,145 - - ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 272,973 $ 311,905 $ - $ - ============= ============= ============= =============
Federated ---------------------------- Equity Income Fund ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 755 $ 4,342 Net realized gains (losses) from security transactions 107 (19,256) Change in unrealized appreciation (depreciation) of investments 538 24,295 ------------- ------------- Net increase (decrease) in net assets resulting from operations 1,400 9,381 ------------- ------------- From capital transactions: Net purchase payments - 170 Net investment division transfers - (247,189) Other net transfers (9,566) (3,975) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (9,566) (250,994) ------------- ------------- NET CHANGE IN NET ASSETS (8,166) (241,613) NET ASSETS - BEGINNING OF PERIOD 94,430 336,043 ------------- ------------- NET ASSETS - END OF PERIOD $ 86,264 $ 94,430 ============= =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 65 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Federated ------------------------------------------------------------------------------------- High Income Bond American Leaders Growth Strategic Fund Fund II Fund ---------------------------- ------------------------- ---------------------------- 2005 2004 2004 (e) 2005 2004 ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 12,529 $ 15,719 $ 6,719 $ (2,592) $ (2,652) Net realized gains (losses) from security transactions (2,215) (2,656) 3,680 (7,387) (21,009) Change in unrealized appreciation (depreciation) of investments (9,083) 4,126 (16,459) 29,360 48,422 ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 1,231 17,189 (6,060) 19,381 24,761 ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments - - 121 - 952 Net investment division transfers (8,661) (68,611) (633,873) (11,975) (1,972) Other net transfers (46,145) (25,113) (7,528) (7,411) (37,046) ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (54,806) (93,724) (641,280) (19,386) (38,066) ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS (53,575) (76,535) (647,340) (5) (13,305) NET ASSETS - BEGINNING OF PERIOD 186,227 262,762 647,340 188,806 202,111 ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 132,652 $ 186,227 $ - $ 188,801 $ 188,806 ============= ============= ============= ============= =============
Neuberger ---------------------------- Genesis Trust Class A ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 177 $ 256 Net realized gains (losses) from security transactions 1,071 1,982 Change in unrealized appreciation (depreciation) of investments 977 72 ------------- ------------- Net increase (decrease) in net assets resulting from operations 2,225 2,310 ------------- ------------- From capital transactions: Net purchase payments - - Net investment division transfers - (3,937) Other net transfers (2,297) (2,266) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (2,297) (6,203) ------------- ------------- NET CHANGE IN NET ASSETS (72) (3,893) NET ASSETS - BEGINNING OF PERIOD 14,025 17,918 ------------- ------------- NET ASSETS - END OF PERIOD $ 13,953 $ 14,025 ============= =============
(e) For the period from January 1, 2004 to May 1, 2004 See accompanying notes to financial statements. (Continued) 66 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Alger T. Rowe ---------------------------- ----------------------------------------------------------- American Small-Capitalization Growth International Fund Fund Fund ---------------------------- ---------------------------- ---------------------------- 2005 2004 2005 2004 2005 2004 ------------- ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (845,189) $ (817,623) $ (84,727) $ (30,234) $ 9,516 $ 3,283 Net realized gains (losses) from security transactions (3,642,356) (4,840,201) (77,402) (195,711) (4,503) (36,804) Change in unrealized appreciation (depreciation) of investments 13,519,296 14,014,757 703,720 1,171,341 156,433 158,743 ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 9,031,751 8,356,933 541,591 945,396 161,446 125,222 ------------- ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments 3,845,735 4,763,693 513,668 463,974 73,808 73,449 Net investment division transfers (3,675,140) (4,572,138) (467,524) (178,943) (32,402) 5,368 Other net transfers (5,262,335) (4,815,936) (1,431,885) (825,028) (97,019) (168,101) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (5,091,740) (4,624,381) (1,385,741) (539,997) (55,613) (89,284) ------------- ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS 3,940,011 3,732,552 (844,150) 405,399 105,833 35,938 NET ASSETS-BEGINNING OF PERIOD 63,202,459 59,469,907 11,043,078 10,637,679 1,093,674 1,057,736 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS-END OF PERIOD $ 67,142,470 $ 63,202,459 $ 10,198,928 $ 11,043,078 $ 1,199,507 $ 1,093,674 ============= ============= ============= ============= ============= =============
----------------------------- Prime Reserve Fund ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 22,388 $ (1,346) Net realized gains (losses) from security transactions - - Change in unrealized appreciation (depreciation) of investments - - ------------- ------------- Net increase (decrease) in net assets resulting from operations 22,388 (1,346) ------------- ------------- From capital transactions: Net purchase payments 172 4,580 Net investment division transfers 303,591 26,056 Other net transfers (87,974) (316,827) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 215,789 (286,191) ------------- ------------- NET CHANGE IN NET ASSETS 238,177 (287,537) NET ASSETS-BEGINNING OF PERIOD 1,149,328 1,436,865 ------------- ------------- NET ASSETS-END OF PERIOD $ 1,387,505 $ 1,149,328 ============= =============
See accompanying notes to financial statements. (Continued) 67 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Janus American ---------------------------- ----------------------------------------------------------- Aspen Worldwide Growth Global Small-Cap Growth Class A Fund Fund ---------------------------- ---------------------------- ---------------------------- 2005 2004 2005 2004 2005 2004 ------------- ------------- ------------- ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 43 $ 24 $ (33,546) $ (44,075) $ (125,011) $ (137,318) Net realized gains (losses) from security transactions 103 138 545,651 46,781 102,918 50,495 Change in unrealized appreciation (depreciation) of investments 255 341 1,280,910 681,229 3,485,539 1,563,691 ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 401 503 1,793,015 683,935 3,463,446 1,476,868 ------------- ------------- ------------- ------------- ------------- ------------- From capital transactions: Net purchase payments - - 1,268,111 851,426 4,490,773 2,716,304 Net investment division transfers - - 3,258,526 2,837,097 7,013,332 6,614,333 Other net transfers (622) (812) (451,972) (111,030) (1,413,824) (591,451) ------------- ------------- ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions (622) (812) 4,074,665 3,577,493 10,090,281 8,739,186 ------------- ------------- ------------- ------------- ------------- ------------- NET CHANGE IN NET ASSETS (221) (309) 5,867,680 4,261,428 13,553,727 10,216,054 NET ASSETS - BEGINNING OF PERIOD 9,296 9,605 5,541,144 1,279,716 17,186,680 6,970,626 ------------- ------------- ------------- ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 9,075 $ 9,296 $ 11,408,824 $ 5,541,144 $ 30,740,407 $ 17,186,680 ============= ============= ============= ============= ============= =============
----------------------------- Growth & Income Fund ---------------------------- 2005 2004 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 94,891 $ (17,073) Net realized gains (losses) from security transactions 95,477 12,407 Change in unrealized appreciation (depreciation) of investments 669,431 942,223 ------------- ------------- Net increase (decrease) in net assets resulting from operations 859,799 937,557 ------------- ------------- From capital transactions: Net purchase payments 3,608,318 2,477,325 Net investment division transfers 3,327,169 5,775,624 Other net transfers (868,712) (424,286) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 6,066,775 7,828,663 ------------- ------------- NET CHANGE IN NET ASSETS 6,926,574 8,766,220 NET ASSETS - BEGINNING OF PERIOD 13,636,772 4,870,552 ------------- ------------- NET ASSETS - END OF PERIOD $ 20,563,346 $ 13,636,772 ============= =============
See accompanying notes to financial statements. (Continued) 68 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
American Alliance --------------------------- ------------------------- Global Growth Bernstein Large-Cap Growth Fund B Fund B --------------------------- ------------------------- 2005 (d) 2005 (d) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (282) $ - Net realized gains (losses) from security transactions 2 - Change in unrealized appreciation (depreciation) of investments 2,427 - ------------- ------------- Net increase (decrease) in net assets resulting from operations 2,147 - ------------- ------------- From capital transactions: Net purchase payments 438,428 - Net investment division transfers 32,884 - Other net transfers - - ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 471,312 - ------------- ------------- NET CHANGE IN NET ASSETS 473,459 - NET ASSETS - BEGINNING OF PERIOD - - ------------- ------------- NET ASSETS - END OF PERIOD $ 473,459 $ - ============= =============
Templeton ----------------------------------------------------- Developing Markets Foreign Securities Fund B Fund B -------------------------- -------------------------- 2005 (d) 2005 (d) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (201) $ (744) Net realized gains (losses) from security transactions - - Change in unrealized appreciation (depreciation) of investments 5,294 11,553 ------------- ------------- Net increase (decrease) in net assets resulting from operations 5,093 10,809 ------------- ------------- From capital transactions: Net purchase payments 222,408 768,570 Net investment division transfers 2,731 34,372 Other net transfers - - ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 225,139 802,942 ------------- ------------- NET CHANGE IN NET ASSETS 230,232 813,751 NET ASSETS - BEGINNING OF PERIOD - - ------------- ------------- NET ASSETS - END OF PERIOD $ 230,232 $ 813,751 ============= =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 69 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Templeton -------------------------------------------------------------------------------- Growth Securities Mutual Shares Securities VIP Income Securities Fund B Fund B Fund B -------------------------- -------------------------- -------------------------- 2005 (d) 2005 (d) 2005 (d) ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ - $ (329) $ (64) Net realized gains (losses) from security transactions - 5 - Change in unrealized appreciation (depreciation) of investments - 3,457 221 ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations - 3,133 157 ------------- ------------- ------------- From capital transactions: Net purchase payments - 212,628 148,650 Net investment division transfers - 1,752 2,150 Other net transfers - - (32) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions - 214,380 150,768 ------------- ------------- ------------- NET CHANGE IN NET ASSETS - 217,513 150,925 NET ASSETS - BEGINNING OF PERIOD - - - ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ - $ 217,513 $ 150,925 ============= ============= =============
Lazard --------------------------- Retirement Small-Cap Portfolio --------------------------- 2005 (d) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (7) Net realized gains (losses) from security transactions - Change in unrealized appreciation (depreciation) of investments (292) ------------- Net increase (decrease) in net assets resulting from operations (299) ------------- From capital transactions: Net purchase payments 23,530 Net investment division transfers 1 Other net transfers - ------------- Net increase (decrease) in net assets resulting from capital transactions 23,531 ------------- NET CHANGE IN NET ASSETS 23,232 NET ASSETS - BEGINNING OF PERIOD - ------------- NET ASSETS - END OF PERIOD $ 23,232 =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 70 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Morgan Stanley Pioneer ---------------------------------------------------- ------------------------- UIF Equity and Income UIF U.S. Real Estate VCT Mid-Cap Portfolio B Portfolio Portfolio B -------------------------- ------------------------- ------------------------- 2005 (d) 2005 (d) 2005 (d) ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ - $ - $ - Net realized gains (losses) from security transactions - - - Change in unrealized appreciation (depreciation) of investments - - - ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations - - - ------------- ------------- ------------- From capital transactions: Net purchase payments - - - Net investment division transfers - - - Other net transfers - - - ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions - - - ------------- ------------- ------------- NET CHANGE IN NET ASSETS - - - NET ASSETS - BEGINNING OF PERIOD - - - ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ - $ - $ - ============= ============= =============
Putnam ------------------------- VT Small-Cap Value Fund B ------------------------- 2005 (d) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ - Net realized gains (losses) from security transactions - Change in unrealized appreciation (depreciation) of investments - ------------- Net increase (decrease) in net assets resulting from operations - ------------- From capital transactions: Net purchase payments - Net investment division transfers - Other net transfers - ------------- Net increase (decrease) in net assets resulting from capital transactions - ------------- NET CHANGE IN NET ASSETS - NET ASSETS - BEGINNING OF PERIOD - ------------- NET ASSETS - END OF PERIOD $ - =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 71 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Salomon Brothers -------------------------------------------------------------------------------- Variable High Yield Bond Variable Small-Cap VSF Investors Fund Portfolio Portfolio Portfolio -------------------------- -------------------------- -------------------------- 2005 (d) 2005 (d) 2005 (d) ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 3,844 $ 9,376 $ 985 Net realized gains (losses) from security transactions - 2 - Change in unrealized appreciation (depreciation) of investments (3,617) (10,276) (1,461) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 227 (898) (476) ------------- ------------- ------------- From capital transactions: Net purchase payments 42,745 186,816 96,134 Net investment division transfers 9,395 10,708 994 Other net transfers (851) (9,565) (1,058) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 51,289 187,959 96,070 ------------- ------------- ------------- NET CHANGE IN NET ASSETS 51,516 187,061 95,594 NET ASSETS - BEGINNING OF PERIOD - - - ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 51,516 $ 187,061 $ 95,594 ============= ============= =============
Smith Barney ----------------------------- Greenwich Street Appreciation Portfolio ----------------------------- 2005 (d) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 208 Net realized gains (losses) from security transactions - Change in unrealized appreciation (depreciation) of investments (688) ------------- Net increase (decrease) in net assets resulting from operations (480) ------------- From capital transactions: Net purchase payments 43,639 Net investment division transfers 3,848 Other net transfers - ------------- Net increase (decrease) in net assets resulting from capital transactions 47,487 ------------- NET CHANGE IN NET ASSETS 47,007 NET ASSETS - BEGINNING OF PERIOD - ------------- NET ASSETS - END OF PERIOD $ 47,007 =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 72 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Smith Barney ------------------------------------------------------------------------------------ Equity Index Fund Greenwich Fundamental Value Multi-Discipline Balanced All Portfolio B Portfolio Cap Growth & Value Portfolio -------------------------- -------------------------- ----------------------------- 2005 (d) 2005 (d) 2005 (d) ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 219 $ 2,266 $ 482 Net realized gains (losses) from security transactions. - - - Change in unrealized appreciation (depreciation) of investments (446) (2,339) (571) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations (227) (73) (89) ------------- ------------- ------------- From capital transactions: Net purchase payments 20,000 34,447 35,186 Net investment division transfers - 1,999 - Other net transfers - (1,997) (29) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 20,000 34,449 35,157 ------------- ------------- ------------- NET CHANGE IN NET ASSETS 19,773 34,376 35,068 NET ASSETS - BEGINNING OF PERIOD - - - ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 19,773 $ 34,376 $ 35,068 ============= ============= =============
-------------------------- Multi-Discipline Large-Cap Growth & Value Portfolio -------------------------- 2005 (d) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 578 Net realized gains (losses) from security transactions. - Change in unrealized appreciation (depreciation) of investments (950) ------------- Net increase (decrease) in net assets resulting from operations (372) ------------- From capital transactions: Net purchase payments 31,303 Net investment division transfers - Other net transfers - ------------- Net increase (decrease) in net assets resulting from capital transactions 31,303 ------------- NET CHANGE IN NET ASSETS 30,931 NET ASSETS - BEGINNING OF PERIOD - ------------- NET ASSETS - END OF PERIOD $ 30,931 =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 73 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Smith Barney -------------------------------------------------------------------------------------- Multi-Discipline All Cap Multi-Discipline Global All Cap Allocation Select Balanced Growth & Value Portfolio Growth & Value Portfolio Portfolio --------------------------- ------------------------------- ------------------------- 2005 (d) 2005 (d) 2005 (d) ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 3,120 $ 1,703 $ - Net realized gains (losses) from security transactions - (1) - Change in unrealized appreciation (depreciation) of investments (4,166) (2,150) - ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations (1,046) (448) - ------------- ------------- ------------- From capital transactions: Net purchase payments 93,450 159,000 - Net investment division transfers 50,147 500 - Other net transfers - - - ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 143,597 159,500 - ------------- ------------- ------------- NET CHANGE IN NET ASSETS 142,551 159,052 - NET ASSETS - BEGINNING OF PERIOD - - - ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 142,551 $ 159,052 $ - ============= ============= =============
------------------------- Allocation Select Growth Portfolio ------------------------- 2005 (d) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ - Net realized gains (losses) from security transactions - Change in unrealized appreciation (depreciation) of investments - ------------- Net increase (decrease) in net assets resulting from operations - ------------- From capital transactions: Net purchase payments - Net investment division transfers - Other net transfers - ------------- Net increase (decrease) in net assets resulting from capital transactions - ------------- NET CHANGE IN NET ASSETS - NET ASSETS - BEGINNING OF PERIOD - ------------- NET ASSETS - END OF PERIOD $ - =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 74 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Smith Barney ------------------------------------------------------------------------------------------ Allocation Select High Growth Capital and Income IS Dividend Strategy Portfolio Portfolio Portfolio ----------------------------- -------------------------- --------------------------- 2005 (d) 2005 (d) 2005 (d) ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ - $ - $ 420 Net realized gains (losses) from security transactions - - - Change in unrealized appreciation (depreciation) of investments - - (714) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations - - (294) ------------- ------------- ------------- From capital transactions: Net purchase payments - - 32,250 Net investment division transfers - - 40 Other net transfers - - - ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions - - 32,290 ------------- ------------- ------------- NET CHANGE IN NET ASSETS - - 31,996 NET ASSETS - BEGINNING OF PERIOD - - - ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ - $ - $ 31,996 ============= ============= =============
---------------------------- Premier Selections All Cap Growth Portfolio --------------------------------- 2005 (d) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ - Net realized gains (losses) from security transactions - Change in unrealized appreciation (depreciation) of investments - ------------- Net increase (decrease) in net assets resulting from operations - ------------- From capital transactions: Net purchase payments - Net investment division transfers - Other net transfers - ------------- Net increase (decrease) in net assets resulting from capital transactions - ------------- NET CHANGE IN NET ASSETS - NET ASSETS - BEGINNING OF PERIOD - ------------- NET ASSETS - END OF PERIOD $ - =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 75 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Smith Barney -------------------------------------------------------- IS Growth and Income Greenwich Street Equity Index Portfolio Portfolio -------------------------- ----------------------------- 2005 (d) 2005 (d) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ - $ - Net realized gains (losses) from security transactions - - Change in unrealized appreciation (depreciation) of investments - - ------------- ------------- Net increase (decrease) in net assets resulting from operations - - ------------- ------------- From capital transactions: Net purchase payments - - Net investment division transfers - - Other net transfers - - ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions - - ------------- ------------- NET CHANGE IN NET ASSETS - - NET ASSETS - BEGINNING OF PERIOD - - ------------- ------------- NET ASSETS - END OF PERIOD $ - $ - ============= =============
Travelers Series Fund --------------------------------------------------------------- Salomon Brothers Adjustable Rate Smith Barney Aggressive Growth Income Portfolio Portfolio -------------------------------- ------------------------------ 2005 (d) 2005 (d) ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 103 $ (145) Net realized gains (losses) from security transactions - 1 Change in unrealized appreciation (depreciation) of investments (99) (1,320) ------------- ------------- Net increase (decrease) in net assets resulting from operations 4 (1,464) ------------- ------------- From capital transactions: Net purchase payments - 193,927 Net investment division transfers 3,500 7,729 Other net transfers - (6) ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 3,500 201,650 ------------- ------------- NET CHANGE IN NET ASSETS 3,504 200,186 NET ASSETS - BEGINNING OF PERIOD - - ------------- ------------- NET ASSETS - END OF PERIOD $ 3,504 $ 200,186 ============= =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 76 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Travelers Series Fund ------------------------------------------------------------------------------------- Smith Barney Large-Cap Growth Smith Barney Large-Cap Value Smith Barney Money Market Portfolio Portfolio Portfolio ----------------------------- ---------------------------- ------------------------- 2005 (d) 2005 (d) 2005 (d) ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 53 $ - $ 182 Net realized gains (losses) from security transactions 49 - - Change in unrealized appreciation (depreciation) of investments (3,408) - - ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations (3,306) - 182 ------------- ------------- ------------- From capital transactions: Net purchase payments 204,360 - 85,139 Net investment division transfers 40 - 104,881 Other net transfers - - - ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 204,400 - 190,020 ------------- ------------- ------------- NET CHANGE IN NET ASSETS 201,094 - 190,202 NET ASSETS - BEGINNING OF PERIOD - - - ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 201,094 $ - $ 190,202 ============= ============= =============
----------------------------- Smith Barney Social Awareness Stock Portfolio ----------------------------- 2005 (d) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ - Net realized gains (losses) from security transactions - Change in unrealized appreciation (depreciation) of investments - ------------- Net increase (decrease) in net assets resulting from operations - ------------- From capital transactions: Net purchase payments - Net investment division transfers - Other net transfers - ------------- Net increase (decrease) in net assets resulting from capital transactions - ------------- NET CHANGE IN NET ASSETS - NET ASSETS - BEGINNING OF PERIOD - ------------- NET ASSETS - END OF PERIOD $ - =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 77 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Travelers Series Trust ------------------------------------------------------------------------------------------- Janus Appreciation Large-Cap Managed Allocation Series Portfolio Portfolio Aggressive Portfolio --------------------------- --------------------------- --------------------------- 2005 (d) 2005 (d) 2005 (d) ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (15) $ (133) $ (3) Net realized gains (losses) from security transactions - 4 - Change in unrealized appreciation (depreciation) of investments (275) (27) (89) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations (290) (156) (92) ------------- ------------- ------------- From capital transactions: Net purchase payments 21,200 107,120 50,000 Net investment division transfers 5,001 158 - Other net transfers - - (1) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 26,201 107,278 49,999 ------------- ------------- ------------- NET CHANGE IN NET ASSETS 25,911 107,122 49,907 NET ASSETS - BEGINNING OF PERIOD - - - ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 25,911 $ 107,122 $ 49,907 ============= ============= =============
------------------- Managed Allocation Series Conservative Portfolio -------------------------- 2005 (d) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ - Net realized gains (losses) from security transactions - Change in unrealized appreciation (depreciation) of investments - ------------- Net increase (decrease) in net assets resulting from operations - ------------- From capital transactions: Net purchase payments - Net investment division transfers - Other net transfers - ------------- Net increase (decrease) in net assets resulting from capital transactions - ------------- NET CHANGE IN NET ASSETS - NET ASSETS - BEGINNING OF PERIOD - ------------- NET ASSETS - END OF PERIOD $ - =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 78 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
----------------------------------- Managed Allocation Series Moderate Portfolio ---------------------------------- 2005 (d) -------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 4,311 Net realized gains (losses) from security transactions. 13 Change in unrealized appreciation (depreciation) of investments (5,013) -------------- Net increase (decrease) in net assets resulting from operations (689) -------------- From capital transactions: Net purchase payments 1,025,333 Net investment division transfers 33,333 Other net transfers (756) -------------- Net increase (decrease) in net assets resulting from capital transactions 1,057,910 -------------- NET CHANGE IN NET ASSETS 1,057,221 NET ASSETS - BEGINNING OF PERIOD - -------------- NET ASSETS - END OF PERIOD $ 1,057,221 ==============
Travelers Series Trust ------------------------------------------------------------------------------------------- Managed Allocation Series Managed Allocation Series Moderate Aggressive Portfolio Moderate Conservative Portfolio ----------------------------- ------------------------------- 2005 (d) 2005 (d) -------------- -------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 966 $ - Net realized gains (losses) from security transactions. 2 - Change in unrealized appreciation (depreciation) of investments (2,900) - -------------- -------------- Net increase (decrease) in net assets resulting from operations (1,932) - -------------- -------------- From capital transactions: Net purchase payments 527,200 - Net investment division transfers 28,167 - Other net transfers (141) - -------------- -------------- Net increase (decrease) in net assets resulting from capital transactions 555,226 - -------------- -------------- NET CHANGE IN NET ASSETS 553,294 - NET ASSETS - BEGINNING OF PERIOD - - -------------- -------------- NET ASSETS - END OF PERIOD $ 553,294 $ - ============== ==============
--------------------- MFS Value Portfolio ----------------------------- 2005 (d) -------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 544 Net realized gains (losses) from security transactions. - Change in unrealized appreciation (depreciation) of investments (801) -------------- Net increase (decrease) in net assets resulting from operations (257) -------------- From capital transactions: Net purchase payments 20,350 Net investment division transfers 1,583 Other net transfers (3) -------------- Net increase (decrease) in net assets resulting from capital transactions 21,930 -------------- NET CHANGE IN NET ASSETS 21,673 NET ASSETS - BEGINNING OF PERIOD - -------------- NET ASSETS - END OF PERIOD $ 21,673 ==============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 79 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Travelers Series Trust ------------------------------------------------------------------------------------- Style Focus Series Small-Cap Style Focus Series Small-Cap Travelers Managed Income Growth Portfolio Value Portfolio Portfolio --------------------------- --------------------------- --------------------------- 2005 (d) 2005 (d) 2005 (d) ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 535 $ 826 $ 4,028 Net realized gains (losses) from security transactions - - - Change in unrealized appreciation (depreciation) of investments (1,103) (1,075) (3,646) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations (568) (249) 382 ------------- ------------- ------------- From capital transactions: Net purchase payments 52,702 86,961 158,862 Net investment division transfers 50 75 2,141 Other net transfers - - - ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 52,752 87,036 161,003 ------------- ------------- ------------- NET CHANGE IN NET ASSETS 52,184 86,787 161,385 NET ASSETS - BEGINNING OF PERIOD - - - ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 52,184 $ 86,787 $ 161,385 ============= ============= =============
-------------------------- Pioneer Fund Portfolio --------------------------- 2005 (d) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (41) Net realized gains (losses) from security transactions - Change in unrealized appreciation (depreciation) of investments (220) ------------- Net increase (decrease) in net assets resulting from operations (261) ------------- From capital transactions: Net purchase payments 20,474 Net investment division transfers 26,364 Other net transfers - ------------- Net increase (decrease) in net assets resulting from capital transactions 46,838 ------------- NET CHANGE IN NET ASSETS 46,577 NET ASSETS - BEGINNING OF PERIOD - ------------- NET ASSETS - END OF PERIOD $ 46,577 =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 80 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Travelers Series Trust ------------------------------------------------------------------------------- Pioneer Mid-Cap Value Pioneer Strategic Income Convertible Securities Portfolio Portfolio Portfolio -------------------------- -------------------------- ------------------------- 2005 (d) 2005 (d) 2005 (d) ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 1,147 $ (4) $ - Net realized gains (losses) from security transactions - - - Change in unrealized appreciation (depreciation) of investments (1,148) 51 - ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations (1) 47 - ------------- ------------- ------------- From capital transactions: Net purchase payments 131,873 9,454 - Net investment division transfers - - - Other net transfers (24) - - ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 131,849 9,454 - ------------- ------------- ------------- NET CHANGE IN NET ASSETS 131,848 9,501 - NET ASSETS - BEGINNING OF PERIOD - - - ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 131,848 $ 9,501 $ - ============= ============= =============
--------------------------- MFS Total Return Portfolio -------------------------- 2005 (d) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ 2,755 Net realized gains (losses) from security transactions - Change in unrealized appreciation (depreciation) of investments (3,101) ------------- Net increase (decrease) in net assets resulting from operations (346) ------------- From capital transactions: Net purchase payments 64,204 Net investment division transfers 31,856 Other net transfers - ------------- Net increase (decrease) in net assets resulting from capital transactions 96,060 ------------- NET CHANGE IN NET ASSETS 95,714 NET ASSETS - BEGINNING OF PERIOD - ------------- NET ASSETS - END OF PERIOD $ 95,714 =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 81 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Travelers Series Trust -------------------------------------------------------------------------------- Federated High Yield Mercury Large-Cap Core Equity Income Portfolio Portfolio Portfolio -------------------------- -------------------------- -------------------------- 2005 (d) 2005 (d) 2005 (d) ------------- ------------- ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (76) $ (55) $ (120) Net realized gains (losses) from security transactions - - - Change in unrealized appreciation (depreciation) of investments 531 174 (773) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations 455 119 (893) ------------- ------------- ------------- From capital transactions: Net purchase payments 79,840 27,500 126,560 Net investment division transfers - 1,453 1,333 Other net transfers (1) - (45) ------------- ------------- ------------- Net increase (decrease) in net assets resulting from capital transactions 79,839 28,953 127,848 ------------- ------------- ------------- NET CHANGE IN NET ASSETS 80,294 29,072 126,955 NET ASSETS - BEGINNING OF PERIOD - - - ------------- ------------- ------------- NET ASSETS - END OF PERIOD $ 80,294 $ 29,072 $ 126,955 ============= ============= =============
-------------------------- AIM Capital Appreciation Portfolio ------------------------- 2005 (d) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ - Net realized gains (losses) from security transactions - Change in unrealized appreciation (depreciation) of investments - ------------- Net increase (decrease) in net assets resulting from operations - ------------- From capital transactions: Net purchase payments - Net investment division transfers - Other net transfers - ------------- Net increase (decrease) in net assets resulting from capital transactions - ------------- NET CHANGE IN NET ASSETS - NET ASSETS - BEGINNING OF PERIOD - ------------- NET ASSETS - END OF PERIOD $ - =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Continued) 82 METLIFE INVESTORS USA SEPARATE ACCOUNT A Statement of Changes in Net Assets Years ended December 31, 2005 and 2004
Travelers Series Trust -------------------------- U.S. Government Securities Portfolio -------------------------- 2005 (d) ------------- INCREASE (DECREASE) IN NET ASSETS From operations: Net investment income (loss) $ (2) Net realized gains (losses) from security transactions - Change in unrealized appreciation (depreciation) of investments 31 ------------- Net increase (decrease) in net assets resulting from operations 29 ------------- From capital transactions: Net purchase payments 3,427 Net investment division transfers 1 Other net transfers - ------------- Net increase (decrease) in net assets resulting from capital transactions 3,428 ------------- NET CHANGE IN NET ASSETS 3,457 NET ASSETS - BEGINNING OF PERIOD - ------------- NET ASSETS - END OF PERIOD $ 3,457 =============
(d) For the period from November 7, 2005 to December 31, 2005 See accompanying notes to financial statements. (Concluded) 83 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (1) ORGANIZATION MetLife Investors USA Separate Account A (the Separate Account), a unit investment trust registered under the Investment Company Act of 1940, as amended, was established by MetLife Investors USA Insurance Company (MLIUSA) and exists in accordance with the regulations of the Delaware Department of Insurance. MLIUSA is an indirect wholly owned subsidiary of MetLife, Inc. The Separate Account is a funding vehicle for variable annuity contracts issued by MLIUSA. The Separate Account is divided into sub-accounts with the assets of each sub-account invested in corresponding portfolios of twenty-four investment companies. The investment companies are diversified, open-end, management investment companies registered under the Investment Company Act of 1940 as amended. The sub-accounts available for investment vary between variable annuity contracts offered for sale by MLIUSA. Under applicable insurance law, the assets and liabilities of the Separate Account are clearly identified and distinguished from MLIUSA's other assets and liabilities. The portion of the Separate Account's assets applicable to the variable contracts is not chargeable with liabilities arising out of any other business MLIUSA may conduct. The following sub-accounts were available for investment as of December 31, 2005: Met Investors Series Trust (Met Investors): Lord Abbett Growth and Income Portfolio Lord Abbett Growth and Income Portfolio B Lord Abbett Bond Debenture Portfolio Lord Abbett Bond Debenture Portfolio B Lord Abbett Growth Opportunities Portfolio B Lord Abbett Mid-Cap Value Portfolio B Lazard Mid-Cap Portfolio B Met/AIM Small-Cap Growth Portfolio Met/AIM Small-Cap Growth Portfolio B Harris Oakmark International Portfolio B Third Avenue Small-Cap Value Portfolio Third Avenue Small-Cap Value Portfolio B Oppenheimer Capital Appreciation Portfolio Oppenheimer Capital Appreciation Portfolio B Janus Aggressive Growth Portfolio B PIMCO Total Return Bond Portfolio PIMCO Total Return Bond Portfolio B RCM Global Technology Portfolio RCM Global Technology Portfolio B PIMCO Inflation Protected Bond Portfolio B T. Rowe Price Mid-Cap Growth Portfolio B MFS Research International Portfolio MFS Research International Portfolio B Neuberger Berman Real Estate Portfolio B Turner Mid-Cap Growth Portfolio B Goldman Sachs Mid-Cap Value Portfolio B Defensive Strategy Fund of Fund B Moderate Strategy Fund of Fund B Balanced Strategy Fund of Fund B Growth Strategy Fund of Fund B Aggressive Strategy Fund of Fund B Van Kampen Comstock Portfolio B Legg Mason Value Equity Portfolio B Met/Putnam Capital Opportunities Portfolio B AIM Variable Insurance Funds, Inc. (AIM): Premier Equity Fund Capital Appreciation Fund International Growth Fund
Basic Balanced Fund MFS Variable Insurance Trust (MFS): Research Series Investors Trust Series New Discovery Series Oppenheimer Variable Account Funds (Oppenheimer): Main Street Growth & Income Fund Bond Fund Strategic Bond Fund Main Street Small-Cap Growth Fund Money Fund Capital Appreciation Fund Variable Insurance Products Fund, Fund II and Fund III (Fidelity): Asset Manager Portfolio Growth Portfolio Contrafund Portfolio Overseas Portfolio Equity-Income Portfolio Index 500 Portfolio Money Market Portfolio Mid-Cap Portfolio B Contrafund Portfolio B Scudder Variable Series I (Scudder I): International Portfolio Metropolitan Series Funds, Inc. (MetLife): FI Mid-Cap Portfolio Russell 2000 Index Portfolio FI International Stock Portfolio FI International Stock Portfolio B Stock Index Portfolio Stock Index Portfolio B BlackRock Legacy Large-Cap Growth Class A BlackRock Strategic Value Class A BlackRock Bond Income Class A BlackRock Large-Cap Value Class A Lehman Brothers Aggregate Bond Index Class A Harris Oakmark Large-Cap Value Class A Morgan Stanley EAFE Index Class A MFS Total Return Class A
(Continued) 84 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (1) ORGANIZATION, CONTINUED: Mid-Cap Stock Index Class A Davis Venture Value Fund Davis Venture Value Fund E Harris Oakmark Focused Value Fund A Harris Oakmark Focused Value Fund B Jennison Growth Portfolio A Jennison Growth Portfolio B BlackRock Money Market Portfolio A BlackRock Money Market Portfolio B T.Rowe Price Small-Cap Growth Class A Metropolitan Series Funds (MetLife), continued: Salomon Brothers U.S. Government Class B Oppenheimer Global Equity Portfolio B Van Kampen LIT Funds (Van Kampen): Emerging Growth Fund Emerging Growth Fund B Enterprise Fund Growth & Income Fund Growth & Income Fund B Comstock Fund B Federated Investors Insurance Company (Federated): Equity Income Fund High Income Bond Fund Growth Strategic Fund Neuberger Berman (Neuberger): Genesis Trust Class A The Alger American Fund (Alger): American Small-Capitalization Fund T. Rowe Price Funds (T. Rowe): Growth Fund International Fund Prime Reserve Fund Janus Capital Funds Corp. (Janus): Aspen Worldwide Growth Class A American Funds (American): Global Small-Cap Fund Growth Fund Growth and Income Fund Global Growth Fund B Alliance Variable Products Series Fund, Inc. (Alliance): Bernstein Large-Cap Growth Fund B Franklin Templeton Variable Insurance Products Trust (Templeton): Developing Markets Fund B Foreign Securities Fund B Growth Securities Fund B Mutual Shares Securities Fund B VIP Income Securities Fund B Lazard: Retirement Small-Cap Portfolio Morgan Stanley: UIF Equity and Income Portfolio B UIF U.S. Real Estate Portfolio
Pioneer: VCT Mid-Cap Portfolio B Putnam Variable Trust (Putnam): VT Small-Cap Value Fund B Salomon Brothers: Variable High Yield Bond Portfolio Variable Small-Cap Portfolio VSF Investors Fund Portfolio Smith Barney: Greenwich Street Appreciation Portfolio Equity Index Fund Portfolio B Greenwich Fundamental Value Portfolio Multi-Discipline Balanced All Cap Growth and Value Portfolio Multi-Discipline Large-Cap Growth and Value Portfolio Multi-Discipline All Cap Growth and Value Portfolio Multi-Discipline Global All Cap Growth and Value Portfolio Allocation Select Balanced Portfolio Allocation Select Growth Portfolio Allocation Select High Growth Portfolio Capital and Income Portfolio IS Dividend Strategy Portfolio Premier Selections All Cap Growth Portfolio IS Growth and Income Portfolio Greenwich Street Equity Index Portfolio Travelers Series Fund: Salomon Brothers Adjustable Rate Income Portfolio Smith Barney Aggressive Growth Portfolio Smith Barney Large-Cap Growth Portfolio Smith Barney Large-Cap Value Portfolio Smith Barney Money Market Portfolio Smith Barney Social Awareness Stock Portfolio Travelers Series Trust: Janus Appreciation Portfolio Large-Cap Portfolio Managed Allocation Series Aggressive Portfolio Managed Allocation Series Conservative Portfolio Managed Allocation Series Moderate Portfolio Managed Allocation Series Moderate Aggressive Portfolio Managed Allocation Series Moderate Conservative Portfolio MFS Value Portfolio Style Focus Series Small-Cap Growth Portfolio Style Focus Series Small-Cap Value Portfolio Travelers Managed Income Portfolio Pioneer Fund Portfolio Pioneer Mid-Cap Value Portfolio Pioneer Strategic Income Portfolio Convertible Securities Portfolio MFS Total Return Portfolio Federated High Yield Portfolio Mercury Large-Cap Core Portfolio Equity Income Portfolio AIM Capital Appreciation Portfolio U.S. Government Securities Portfolio
(Continued) 85 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (1) ORGANIZATION, CONTINUED: The following sub-accounts changed names during the year ended December 31, 2005: Met Investors - Met/AIM Mid-Cap Core Equity Portfolio B to Lazard Mid-Cap Portfolio B Met Investors - PIMCO PEA Innovation Portfolio to RCM Global Technology Portfolio Met Investors - PIMCO Innovation Portfolio B to RCM Global Technology Portfolio B MetLife Series - SSR Money Market Portfolio to BlackRock Money Market Portfolio MetLife Series - SSR Bond Income Class A to BlackRock Bond Income Class A MetLife Series -SSR Aurora Class A to BlackRock Strategic Value Class A AIM VI Balanced Fund Class A to AIM VI Basic Balanced Fund Class A The following sub-accounts ceased operations during the years ended December 31, 2005 and December 31, 2004:
Year Ended December 31, 2005: Date Ceased Operations ----------------------------- ---------------------- Met Investors Money Market Portfolio B April 29, 2005 MetLife Met/Putnam Voyager Portfolio A April 29, 2005 Year Ended December 31, 2004: Date Ceased Operations ----------------------------- ---------------------- Met Investors JP Morgan Quality Bond Portfolio November 19, 2004 Met Investors Met Putnam Research Portfolio November 19, 2004 Met Investors Met Putnam Research Portfolio B November 19, 2004 Metlife FI Mid-Cap Opportunities May 1, 2004 Federated American Leaders Fund II May 1, 2004
The following sub-accounts began operations during the years ended December 31, 2005 and December 31, 2004:
Year Ended December 31, 2005: Date Began Operations ----------------------------- --------------------- Met Investors Van Kampen Comstock Portfolio B May 2, 2005 MetLife Jennison Growth Portfolio May 2, 2005 MetLife BlackRock Money Market Portfolio B May 2, 2005 MetLife Salomon Brothers U.S. Government Class B May 2, 2005 Met Investors Lord Abbett Growth Opportunities Portfolio B November 7, 2005 Met Investors Lord Abbett Mid-Cap Value Portfolio B November 7, 2005 Met Investors Legg Mason Value Equity Portfolio B November 7, 2005 Met Investors Met/Putnam Capital Opportunities Portfolio B November 7, 2005 Oppenheimer Capital Appreciation Fund November 7, 2005 Fidelity VIP Mid-Cap Portfolio B November 7, 2005 Fidelity VIP Contrafund Portfolio B November 7, 2005 MetLife - FI International Stock Portfolio B November 7, 2005 MetLife Oppenheimer Global Equity Portfolio B November 7, 2005 Van Kampen LIT Emerging Growth Fund B November 7, 2005 Van Kampen LIT Growth & Income Fund B November 7, 2005 Van Kampen LIT Comstock Fund B November 7, 2005 American Fund Global Growth Fund B November 7, 2005 Alliance Bernstein Large-Cap Growth Fund B November 7, 2005 Templeton Developing Markets Fund B November 7, 2005 Templeton Foreign Secutities Fund B November 7, 2005 Templeton Growth Securities Fund B November 7, 2005
(Continued) 86 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (1) ORGANIZATION, CONTINUED: The following sub-accounts began operations during the years ended December 31, 2005 and December 31, 2004, continued:
Year Ended December 31, 2005, continued: Date Began Operations ---------------------------------------- --------------------- Templeton Mutual Shares Securities Fund B November 7, 2005 Templeton VIP Income Securities Fund B November 7, 2005 Lazard Retirement Small-Cap Portfolio November 7, 2005 Morgan Stanley UIF Equity and Income Portfolio B November 7, 2005 Morgan Stanley UIF U.S. Real Estate Portfolio November 7, 2005 Pioneer VCT Mid-Cap Portfolio B November 7, 2005 Putnam VT Small-Cap Value Fund B November 7, 2005 Salomon Brothers Variable High Yield Bond Portfolio November 7, 2005 Salomon Brothers Variable Small-Cap Portfolio November 7, 2005 Salomon Brothers VSF Investors Fund Portfolio November 7, 2005 Smith Barney Greenwich Street Appreciation Portfolio November 7, 2005 Smith Barney Equity Index Fund Portfolio B November 7, 2005 Smith Barney Greenwich Fundamental Value Portfolio November 7, 2005 Smith Barney Multi-Discipline Balanced All Cap Growth and Value Portfolio November 7, 2005 Smith Barney Multi-Discipline Large-Cap Growth and Value Portfolio November 7, 2005 Smith Barney Multi-Discipline All Cap Growth and Value Portfolio November 7, 2005 Smith Barney Multi-Discipline Global All Cap Growth and Value Portfolio November 7, 2005 Smith Barney Allocation Select Balanced Portfolio November 7, 2005 Smith Barney Allocation Select Growth Portfolio November 7, 2005 Smith Barney Allocation Select High Growth Portfolio November 7, 2005 Smith Barney Capital and Income Portfolio November 7, 2005 Smith Barney IS Dividend Strategy Portfolio November 7, 2005 Smith Barney Premier Selections All Cap Growth Portfolio November 7, 2005 Smith Barney IS Growth and Income Portfolio November 7, 2005 Smith Barney Greenwich Street Equity Index Portfolio November 7, 2005 Travelers Series Fund Salomon Brothers Adjustable Rate Income Portfolio November 7, 2005 Travelers Series Fund Smith Barney Aggressive Growth Portfolio November 7, 2005 Travelers Series Fund Smith Barney Large-Cap Growth Portfolio November 7, 2005 Travelers Series Fund Smith Barney Large-Cap Value Portfolio November 7, 2005 Travelers Series Fund Smith Barney Money Market Portfolio November 7, 2005 Travelers Series Fund Smith Barney Social Awareness Stock Portfolio November 7, 2005 Travelers Series Trust Janus Appreciation Portfolio November 7, 2005 Travelers Series Trust Large-Cap Portfolio November 7, 2005 Travelers Series Trust Managed Allocation Series Aggressive Portfolio November 7, 2005 Travelers Series Trust Managed Allocation Series Conservative Portfolio November 7, 2005 Travelers Series Trust Managed Allocation Series Moderate Portfolio November 7, 2005 Travelers Series Trust Managed Allocation Series Moderate Aggressive Portfolio November 7, 2005 Travelers Series Trust Managed Allocation Series Moderate Conservative Portfolio November 7, 2005 Travelers Series Trust MFS Value Portfolio November 7, 2005 Travelers Series Trust Style Focus Series Small-Cap Growth Portfolio November 7, 2005 Travelers Series Trust Style Focus Series Small-Cap Value Portfolio November 7, 2005 Travelers Series Trust Travelers Managed Income Portfolio November 7, 2005 Travelers Series Trust Pioneer Fund Portfolio November 7, 2005 Travelers Series Trust Pioneer Mid-Cap Value Portfolio November 7, 2005
(Continued) 87 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (1) ORGANIZATION, CONTINUED: The following sub-accounts began operations during the years ended December 31, 2005 and December 31, 2004, continued:
Year Ended December 31, 2005, continued: Date Began Operations ---------------------------------------- --------------------- Travelers Series Trust Pioneer Strategic Income Portfolio November 7, 2005 Travelers Series Trust Convertible Securities Portfolio November 7, 2005 Travelers Series Trust MFS Total Return Portfolio November 7, 2005 Travelers Series Trust Federated High Yield Portfolio November 7, 2005 Travelers Series Trust Mecury Large-Cap Core Portfolio November 7, 2005 Travelers Series Trust Equity Income Portfolio November 7, 2005 Travelers Series Trust AIM Capital Appreciation Portfolio November 7, 2005 Travelers Series Trust U.S. Government Securities Portfolio November 7, 2005 Year Ended December 31, 2004: Date Began Operations ----------------------------- --------------------- Met Investors Oppenheimer Capital Appreciation May 3, 2004 Met Investors MFS Research International Portfolio A May 3, 2004 Met Investors Neuberger Berman Real Estate Portfolio B May 3, 2004 Met Investors Turner Mid-Cap Growth B May 3, 2004 Met Investors Goldman Sachs Mid-Cap Value Class B May 3, 2004 MetLife SSR Money Market May 3, 2004 MetLife T. Rowe Price Small-Cap Growth May 3, 2004 Met Investors - Defensive Strategy Fund of Fund B November 22, 2004 Met Investors - Moderate Strategy Fund of Fund B November 22, 2004 Met Investors - Balanced Strategy Fund of Fund B November 22, 2004 Met Investors - Growth Strategy Fund of Fund B November 22, 2004 Met Investors - Aggressive Strategy Fund of Fund B November 22, 2004
(2) SIGNIFICANT ACCOUNTING POLICIES (A) INVESTMENT VALUATION Investments made in the portfolios of the investment companies are valued at the reported net asset value of such portfolios, which value their investment securities at fair value. Realized gains and losses on the sale of portfolio shares owned by the sub-accounts are computed on the basis of the identified cost of the portfolio shares sold. Income from dividends and gains from realized capital gain distributions are recorded on the ex-distribution date. (B) REINVESTMENT OF DISTRIBUTIONS Dividends and gains from realized gain distributions are reinvested in additional shares of the portfolio. (C) FEDERAL INCOME TAXES The operations of the Separate Account sub-accounts are included in the federal income tax return of MLIUSA, which is taxed as a Life Insurance Company under the provisions of the Internal Revenue Code (IRC). Under current IRC provisions, MLIUSA believes it will be treated as the owner of the Separate Account sub-account assets for federal income tax purposes. MLIUSA does not expect to incur federal income taxes on the earnings of the Separate Account sub-accounts to the extent the earnings are credited to the variable annuity contracts. Based on this, no charge has been made to the Separate Account sub-accounts for federal income taxes. A charge may be made in future years for any federal income taxes that would be attributable to the variable annuity contracts. (Continued) 88 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (2) SIGNIFICANT ACCOUNTING POLICIES, CONTINUED (D) ANNUITY RESERVES Annuity reserves are computed for contracts in the payout stage according to the 1983a Mortality Table. The assumed investment return is 3%. The mortality risk is borne by MLIUSA and may result in additional transfers to the Separate Account. Conversely, if reserves exceed amounts required, transfers may be made from the Separate Account to MLIUSA. (D) ESTIMATES The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect amounts reported therein. Actual results could differ from these estimates. Certain amounts in the prior years' financial statements have been reclassified to conform to the current year presentation. (3) SEPARATE ACCOUNT EXPENSES For variable annuity contracts, MLI deducts a daily charge from the net assets of the Separate Account sub-accounts for mortality and administrative expenses that ranges from an annual rate of 0.89% to an annual rate of 2.90%. This varies according to the product specifications. The mortality risks assumed by MLIUSA arise from its contractual obligation to make annuity payments after the annuity date for the life of the annuitant and to waive the withdrawal fee in the event of the death of the contract owner. The administrative fees cover the cost of establishing and maintaining the variable annuity contracts and the Separate Account. (4) CONTRACT FEES There are no deductions made from purchase payments for sales fees at the time a variable annuity contract is purchased. However, if all or a portion of the contract value is withdrawn, a withdrawal charge may be assessed and deducted from the contract value or payment to the contract owner. The withdrawal charge is imposed on withdrawals of contract values attributable to purchase payments within a certain number of years after receipt and is equal to a flat percentage of the purchase payment withdrawn or on a declining scale, depending on the product. For certain annuity contracts, after the first contract anniversary, provided the contract value exceeds $5,000, the contract owner may make one withdrawal each contract year of up to 10% of the aggregate purchase payments (on deposit for more than one year) without incurring a withdrawal charge. For certain other contracts, after the first contract anniversary, the contract owner may withdrawal up to 10 % of the aggregate purchase payments each contract year, without incurring a surrender fee. During the first contract year, MLIUSA currently does not assess the surrender fee on amounts withdrawn under the systematic withdrawal program. During the accumulation phase, MLIUSA imposes an annual contract maintenance fee of $30 on variable annuity contracts with account values less than $50,000 on the contract anniversary. This fee covers the cost of contract administration for the previous year and is deducted pro rata from the Separate Account sub-accounts (and for some contracts, the fixed account as well) for which account value is allocated. The charge is taken from the account value on a full withdrawal or on the annuity date if such annuity date is other than the contract anniversary date. During the income phase, the charge is collected from each annuity payment, regardless of contract size. Subject to certain restrictions, the contract owner may transfer all or a part of the accumulated value of the contract among the available sub-accounts and the fixed rate account. If more than 12 transfers have been made in the contract year, a transfer fee of $25 per transfer or, for certain contracts, if less, 2% of the amount transferred, may be deducted from the account value. Transfers made in a dollar cost averaging program are not subject to the transfer fee. During the year ended December 31, 2005, contract maintenance, surrender, and transfer fees of $43,281,947 were deducted. Currently, MLIUSA advances any premium taxes due at the time purchase payments are made and then deducts premium taxes at the time annuity payments begin. MLIUSA reserves the right to deduct premium taxes when incurred. (Continued) 89 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (5) PURCHASES AND SALES OF INVESTMENTS The cost of purchases and proceeds from the sale of investments for the year ended December 31, 2005 were as follows:
Purchases Sales -------------- ------------ Met Investors Lord Abbett Growth and Income Portfolio $ 10,758,404 $ 30,222,499 Met Investors Lord Abbett Growth and Income Portfolio B 26,792,141 176,852,614 Met Investors Lord Abbett Bond Debenture Portfolio 1,732,940 447,473 Met Investors Lord Abbett Bond Debenture Portfolio B 19,148,687 154,179,458 (d) Met Investors Lord Abbett Growth Opportunities Portfolio B 319,364 114 Met Investors Lord Abbett Mid-Cap Value Portfolio B 356,581 51 Met Investors Lazard Mid-Cap Portfolio B 18,711,026 28,672,900 Met Investors Met/AIM Small-Cap Growth Portfolio 430,806 198,337 Met Investors Met/AIM Small-Cap Growth Portfolio B 8,146,086 67,089,249 Met Investors Harris Oakmark International Portfolio B 41,475,645 87,534,730 Met Investors Third Avenue Small-Cap Value Portfolio 3,249,567 543,617 Met Investors Third Avenue Small-Cap Value Portfolio B 31,827,950 71,308,634 Met Investors Oppenheimer Capital Appreciation Portfolio 1,306,260 3,964,185 Met Investors Oppenheimer Capital Appreciation Portfolio B 9,025,158 127,835,073 (a) Met Investors Money Market Portfolio B 63,461,688 162,614,907 Met Investors Janus Aggressive Growth Portfolio B 3,862,470 68,064,069 Met Investors PIMCO Total Return Portfolio 6,264,597 7,362,136 Met Investors PIMCO Total Return Portfolio B 18,465,832 89,015,090 Met Investors RCM Global Technology Portfolio 358,340 380,772 Met Investors RCM Global Technology Portfolio B 3,268,153 21,124,374 Met Investors PIMCO Inflation Protected Bond Portfolio B 25,918,319 119,462,245 Met Investors T. Rowe Price Mid-Cap Growth Portfolio B 25,300,192 24,214,484 Met Investors MFS Research International Portfolio 1,423,388 231,089 Met Investors MFS Research International Portfolio B 20,562,858 67,387,232 Met Investors Neuberger Berman Real Estate Portfolio B 15,651,345 32,211,613 Met Investors Turner Mid-Cap Growth Portfolio B 4,920,727 25,360,650 Met Investors Goldman Sachs Mid-Cap Value B 43,518,008 24,562,422 Met Investors Defensive Strategy Fund of Fund Class B 194,138,973 35,715,980 Met Investors Moderate Strategy Fund of Fund Class B 518,833,770 62,856,709 Met Investors Balanced Strategy Fund of Fund Class B 1,377,448,425 33,725,167 Met Investors Growth Strategy Fund of Fund Class B 1,189,432,308 1,827,864 Met Investors Aggressive Strategy Fund of Fund Class B 237,476,268 5,380,479 (b) Met Investors Van Kampen Comstock Portfolio B 16,598,016 32,704 (d) Met Investors Legg Mason Value Equity Portfolio B 1,344,629 64 (d) Met Investors Met/Putnam Capital Opportunities Portfolio B - - AIM Premier Equity Fund 30,300 246,339 AIM Capital Appreciation Fund 1,690 69,678 AIM International Growth Fund 22,684 76,059 AIM Basic Balanced Fund 33,495 213,389 MFS Research Series 1,714 36,928
(a) For the period from January 1, 2005 to April 29, 2005 (b) For the period from May 2, 2005 to December 31, 2005 (c) For the period from November 7, 2005 to December 31, 2005 (Continued) 90 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (5) PURCHASES AND SALES OF INVESTMENTS, CONTINUED
Purchases Sales ----------- ------------ MFS Investors Trust Series $ 9,691 $ 25,466 MFS New Discovery Series 116 35,721 Oppenheimer Main Street Growth & Income Fund 7,088 38,867 Oppenheimer Bond Fund 20,320 40,423 Oppenheimer Strategic Bond Fund 4,994 65,757 Oppenheimer Main Street Small-Cap Growth Fund 9,247 25,744 Oppenheimer Money Fund 8,459 111,246 (d) Oppenheimer Capital Appreciation Fund - - Fidelity Asset Manager Portfolio 4,855,019 21,400,424 Fidelity Growth Portfolio 2,781,646 34,510,732 Fidelity Contrafund Portfolio 7,565,110 15,897,143 Fidelity Overseas Portfolio 1,042,838 2,702,958 Fidelity Equity-Income Portfolio 2,118,273 5,106,253 Fidelity Index 500 Portfolio 2,714,871 23,969,135 Fidelity Money Market Portfolio 6,488,885 4,299,743 (d) Fidelity Mid-Cap Portfolio B - - (d) Fidelity Contrafund Portfolio B 87,424 - Scudder I International Portfolio 2,052,322 1,752,313 MetLife FI Mid-Cap Portfolio 1,239,465 755,315 MetLife Russell 2000 Index Portfolio 7,832,197 6,918,344 MetLife FI International Stock Portfolio 194,523 114,401 (d) MetLife FI International Stock Portfolio B - - (a) MetLife Putnam Voyager Portfolio 32,176 398,473 MetLife MetLife Stock Index Portfolio 7,724,335 8,626,656 MetLife MetLife Stock Index Portfolio B 32,396,035 28,645,382 MetLife BlackRock Legacy Large-Cap Growth 255,780 142,186 MetLife BlackRock Strategic Value 3,219,372 924,980 MetLife BlackRock Bond Income 1,757,863 318,426 MetLife BlackRock Large-Cap Value 508,287 191,925 MetLife Lehman Brothers Aggregate Bond Index 2,028,874 313,535 MetLife Harris Oakmark Large-Cap Value 1,831,182 705,200 MetLife Morgan Stanley EAFE Index 3,521,802 190,049 MetLife MFS Total Return 4,140,839 401,850 MetLife MetLife Mid-Cap Stock Index 3,039,253 413,324 MetLife Davis Venture Value Fund 3,353,113 229,661 MetLife Davis Venture Value Fund E 27,004,784 143,889,839 MFS Harris Oakmark Focused Value Fund 8,535,280 800,441 MetLife Harris Oakmark Focused Value Fund B 20,896,735 85,104,065 (b) MetLife Jennison Growth Portfolio A 380,495 88,657 MetLife Jennison Growth Portfolio B 11,804,712 75,725,085 MetLife BlackRock Money Market Portfolio A 11,832 12,150
(a) For the period from January 1, 2005 to April 29, 2005 (b) For the period from May 2, 2005 to December 31, 2005 (c) For the period from November 7, 2005 to December 31, 2005 (Continued) 91 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (5) PURCHASES AND SALES OF INVESTMENTS, CONTINUED
Purchases Sales ------------ ----------- (b) MetLife BlackRock Money Market Portfolio B $209,689,641 $85,946,624 MetLife T. Rowe Price Small-Cap Growth 512,847 82,102 (b) MetLife Salomon Brothers U.S. Government - Class B 6,672,429 636,701 (b) MetLife Oppenheimer Global Equity Portfolio B - - Van Kampen Emerging Growth Fund 25,085 113,333 (d) Van Kampen Emerging Growth Fund B - - Van Kampen Enterprise Fund 1,612 13,354 Van Kampen Growth & Income Fund 11,286 67,335 (d) Van Kampen Growth & Income Fund B - - (d) Van Kampen Comstock Fund B - - Federated Equity Income Fund 1,974 10,777 Federated High Income Bond Fund 14,873 57,160 Federated Growth Strategic Fund 2,513 24,474 Neuberger Genesis Trust 310 2,306 Alger American Small-Capitalization Fund 2,363,826 8,343,655 T. Rowe Price Growth Fund 611,167 2,087,714 T. Rowe Price International Fund 120,295 166,944 T. Rowe Price Prime Reserve Fund 1,489,768 1,252,266 Janus Aspen Worldwide Growth 119 695 American Funds Global Small-Cap Fund 6,121,780 2,084,803 American Funds Growth Fund 10,447,476 495,086 American Funds Growth and Income Fund 6,715,983 564,829 (d) American Fund Global Growth Fund B 471,252 55 (d) Alliance Bernstein Large-Cap Growth Fund B - - (d) Templeton Developing Markets Fund B 225,086 - (d) Templeton Foreign Secutities Fund B 802,357 1 (d) Templeton Growth Securities Fund B - - (d) Templeton Mutual Shares Securities Fund B 214,317 212 (d) Templeton VIP Income Securities Fund B 150,768 - (d) Lazard Retirement Small-Cap Portfolio 23,530 - (d) Morgan Stanley UIF Equity and Income Portfolio B - - (d) Morgan Stanley UIF U.S. Real Estate Portfolio - - (d) Pioneer VCT Mid-Cap Portfolio B - - (d) Putnam VT Small-Cap Value Fund B - - (d) Salomon Brothers Variable High Yield Bond Portfolio 54,345 - (d) Salomon Brothers Variable Small-Cap Portfolio 186,434 57 (d) Salomon Brothers VSF Investors Fund Portfolio 96,016 52 (d) Smith Barney Greenwich Street Appreciation Portfolio 47,714 - (d) Smith Barney Equity Index Fund Portfolio B 20,241 - (d) Smith Barney Greenwich Fundamental Value Portfolio 34,773 - (d) Smith Barney Multi-Discipline Balanced All Cap Growth and Value Portfolio 35,667 - (d) Smith Barney Multi-Discipline Large-Cap Growth and Value Portfolio 31,912 -
(d) For the period from November 7, 2005 to December 31, 2005 (Continued) 92 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (5) PURCHASES AND SALES OF INVESTMENTS, CONTINUED
Purchases Sales -------------- -------------- (d) Smith Barney Multi-Discipline All Cap Growth Value Portfolio $ 146,846 $ 53 (d) Smith Barney Multi-Discipline Global All Cap Growth and Value Portfolio 161,318 115 (d) Smith Barney Allocation Select Balanced Portfolio - - (d) Smith Barney Allocation Select Growth Portfolio - - (d) Smith Barney Allocation Select High Growth Portfolio - - (d) Smith Barney Capital and Income Portfolio - - (d) Smith Barney IS Dividend Strategy Portfolio 32,722 - (d) Smith Barney Premier Selections All Cap Growth Portfolio - - (d) Smith Barney IS Growth and Income Portfolio - - (d) Smith Barney Greenwich Street Equity Index Portfolio - - (d) Travelers Series Fund Salomon Brothers Adjustable Rate Income Portfolio 3,605 - (d) Travelers Series Fund Smith Barney Aggressive Growth Portfolio 201,658 51 (d) Travelers Series Fund Smith Barney Large-Cap Growth Portfolio 208,149 3,660 (d) Travelers Series Fund Smith Barney Large-Cap Value Portfolio - - (d) Travelers Series Fund Smith Barney Money Market Portfolio 190,123 58 (d) Travelers Series Fund Smith Barney Social Awareness Stock Portfolio - - (d) Travelers Series Trust Janus Appreciation Portfolio 26,200 - (d) Travelers Series Trust Large-Cap Portfolio 107,277 109 (d) Travelers Series Trust Managed Allocation Series Aggressive Portfolio 50,055 51 (d) Travelers Series Trust Managed Allocation Series Conservative Portfolio - - (d) Travelers Series Trust Managed Allocation Series Moderate Portfolio 1,062,916 598 (d) Travelers Series Trust Managed Allocation Series Moderate Aggressive Portfolio 556,333 106 (d) Travelers Series Trust Managed Allocation Series Moderate Conservative Portfolio - - (d) Travelers Series Trust MFS Value Portfolio 22,487 - (d) Travelers Series Trust Style Focus Series Small-Cap Growth Portfolio 53,326 - (d) Travelers Series Trust Style Focus Series Small-Cap Value Portfolio 87,899 - (d) Travelers Series Trust Travelers Managed Income Portfolio 165,165 58 (d) Travelers Series Trust Pioneer Fund Portfolio 46,839 - (d) Travelers Series Trust Pioneer Mid-Cap Value Portfolio 133,041 2 (d) Travelers Series Trust Pioneer Strategic Income Portfolio 9,454 - (d) Travelers Series Trust Convertible Securities Portfolio - - (d) Travelers Series Trust MFS Total Return Portfolio 98,868 - (d) Travelers Series Trust Federated High Yield Portfolio 79,839 - (d) Travelers Series Trust Mercury Large-Cap Core Portfolio 28,954 - (d) Travelers Series Trust Equity Income Portfolio 127,793 - (d) Travelers Series Trust AIM Capital Apprectiation Portfolio - - (d) Travelers Series Trust U.S. Government Securities Portfolio 3,427 - -------------- -------------- $4,363,895,731 $2,097,868,642 ============== ==============
(d) For the period from November 7, 2005 to December 31, 2005 (Continued) 93 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING:
Met Investors ----------------------------------------------------------------------------------------- Lord Abbett Lord Abbett Lord Abbett Lord Abbett Lord Abbett Lord Abbett JP Morgan Growth and Growth and Bond Bond Growth Mid-Cap Quality Income Income Debenture Debenture Opportunities Value Bond Portfolio Portfolio B Portfolio Portfolio B Portfolio B Portfolio B Portfolio ----------- ----------- ----------- ----------- ------------- ----------- ----------- Unit Balance at January 1, 2004 12,148,950 14,631,212 108,131 30,331,364 2,677,207 =========== =========== =========== =========== =========== Units Issued 949,648 9,212,774 126,041 19,630,145 268,500 Units Redeemed (1,402,954) (9,640,060) (34,956) (23,879,975) (2,945,707) ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2004 11,695,644 14,203,926 199,216 26,081,534 - - - =========== =========== =========== =========== =========== =========== =========== Units Issued 754,860 1,587,412 124,406 2,385,546 30,352 14,110 Units Redeemed (1,640,375) (4,962,859) (57,808) (10,831,021) - - ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 10,810,129 10,828,479 265,814 17,636,059 30,352 14,110 =========== =========== =========== =========== =========== ===========
(Continued) 94 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Met Investors ------------------------------------------------------------------------------------------- Met/AIM Met/AIM Harris Third Met/Putnam Met/Putnam Lazard Small-Cap Small-Cap Oakmark Avenue Research Research Mid-Cap Growth Growth International Small-Cap Portfolio Portfolio B Portfolio B Portfolio Portfolio B Portfolio B Val Portfolio ----------- ----------- ----------- ----------- ----------- ------------- ------------- Unit Balance at January 1, 2004 2,828,413 8,932,927 12,288,849 31,568 12,475,776 16,889,437 50,110 =========== =========== =========== =========== =========== =========== =========== Units Issued 31,710 4,307,738 7,218,796 23,890 17,762,216 22,559,744 164,286 Units Redeemed (2,860,123) (13,240,665) (9,246,875) (19,259) (11,949,957) (16,992,968) (19,895) ----------- ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2004 - - 10,260,770 36,199 18,288,035 22,456,213 194,501 =========== =========== =========== =========== =========== =========== =========== Units Issued 1,574,751 36,710 2,005,477 5,483,166 255,145 Units Redeemed (3,179,867) (19,464) (7,100,781) (8,943,671) (75,855) ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 8,655,654 53,445 13,192,731 18,995,708 373,791 =========== =========== =========== =========== ===========
(Continued) 95 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Met Investors -------------------------------------------------------------------------------------------- Third Oppenheimer Oppenheimer Janus PIMCO PIMCO Avenue Capital Capital Money Aggressive Total Return Total Return Small-Cap Appreciation Appreciation Market Growth Bond Bond Val Portfolio B Portfolio Portfolio B Portfolio B Portfolio B Portfolio Portfolio B --------------- ------------ ------------ ----------- ----------- ------------ ------------ Unit Balance at January 1, 2004 19,557,686 - 51,514,003 11,786,985 26,535,225 2,852,827 41,371,628 =========== =========== =========== =========== =========== =========== =========== Units Issued 16,005,760 1,833,755 41,510,722 24,809,904 21,515,189 4,316,812 20,597,148 Units Redeemed (13,110,569) (47,744) (37,118,297) (26,539,641) (22,914,551) (781,581) (26,056,891) ----------- ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2004 22,452,877 1,786,011 55,906,428 10,057,248 25,135,863 6,388,058 35,911,885 =========== =========== =========== =========== =========== =========== =========== Units Issued 5,234,468 1,219,377 5,105,334 10,067,024 2,138,231 1,152,504 5,523,254 Units Redeemed (7,965,027) (1,484,666) (19,504,171) (20,124,272) (11,183,829) (1,244,284) (11,113,132) ----------- ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 19,722,318 1,520,722 41,507,591 - 16,090,265 6,296,278 30,322,007 =========== =========== =========== =========== =========== =========== ===========
(Continued) 96 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Met Investors ----------------------------------------------------------------------------------------- PIMCO T. Rowe Price MFS MFS RCM Global RCM Global Inflation Mid-Cap Research Research Technology Technology Protected Bond Growth International International Portfolio Portfolio B Portfolio B Portfolio B Portfolio Portfolio B ----------- ----------- -------------- ------------- ------------- ------------- Unit Balance at January 1, 2004 139,123 9,200,629 25,707,912 33,526,891 - 12,887,155 =========== =========== =========== =========== =========== =========== Units Issued 174,511 15,369,987 31,658,383 19,663,291 46,605 22,120,298 Units Redeemed (150,244) (9,975,875) (24,525,447) (25,654,276) (1,484) (14,092,592) ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2004 163,390 14,594,741 32,840,848 27,535,906 45,121 20,914,861 =========== =========== =========== =========== =========== =========== Units Issued 94,164 2,061,982 5,834,881 6,804,696 123,959 3,228,111 Units Redeemed (99,156) (6,371,168) (13,870,632) (7,090,887) (26,439) (8,146,431) ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 158,398 10,285,555 24,805,097 27,249,715 142,641 15,996,541 =========== =========== =========== =========== =========== ===========
----- Neuberger Berman Real Estate Portfolio B ----------- Unit Balance at January 1, 2004 - =========== Units Issued 12,065,092 Units Redeemed (5,611,196) ----------- Unit Balance at December 31, 2004 6,453,896 =========== Units Issued 2,105,807 Units Redeemed (3,499,605) ----------- Unit Balance at December 31, 2005 5,060,098 ===========
(Continued) 97 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Met Investors ------------------------------------------------------------------------------------------ Turner Goldman Defensive Moderate Balanced Growth Aggressive Mid-Cap Sachs Strategy Strategy Strategy Strategy Strategy Growth Mid-Cap Value Fund of Fund of Fund of Fund of Fund of Portfolio B Portfolio B Fund B Fund B Fund B Fund B Fund B ----------- ------------- ----------- ----------- ----------- ----------- ----------- Unit Balance at January 1, 2004 - - - - - - - =========== =========== =========== =========== =========== =========== =========== Units Issued 10,189,107 11,383,384 10,602,537 36,748,873 114,899,506 91,985,226 20,763,078 Units Redeemed (4,986,365) (5,067,259) (343,427) (348,202) (356,734) (355,889) (298,105) ----------- ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2004 5,202,742 6,316,125 10,259,110 36,400,671 114,542,772 91,629,337 20,464,973 =========== =========== =========== =========== =========== =========== =========== Units Issued 770,692 4,238,160 22,898,220 59,438,524 148,637,237 124,772,078 25,649,342 Units Redeemed (2,743,358) (3,287,746) (7,138,300) (14,437,102) (18,945,614) (12,721,546) (3,783,517) ----------- ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 3,230,076 7,266,539 26,019,030 81,402,093 244,234,395 203,679,869 42,330,798 =========== =========== =========== =========== =========== =========== ===========
(Continued) 98 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Met Investors AIM --------------------------------------- --------------------------------------------------- Met/Putnam Van Kampen Legg Mason Capital Capital Basic Comstock Value Equity Opportunities Premier Appreciation International Balanced Portfolio B Portfolio B Portfolio B Equity Fund Fund Growth Fund Fund ----------- ------------ ------------- ----------- ------------ ------------- ----------- Unit Balance at January 1, 2004 427,127 187,203 157,713 264,594 =========== =========== =========== =========== Units Issued 15,709 10,541 8,201 11,779 Units Redeemed (69,868) (37,733) (16,673) (28,299) ----------- ----------- ----------- ----------- Unit Balance at December 31, 2004 - - - 372,968 160,011 149,241 248,074 =========== =========== =========== =========== =========== =========== =========== Units Issued 1,677,901 131,367 - 2,574 426 3,560 3,834 Units Redeemed (72,443) (5,578) - (58,286) (13,573) (12,293) (41,796) ----------- ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 1,605,458 125,789 - 317,256 146,864 140,508 210,112 =========== =========== =========== =========== =========== =========== ===========
(Continued) 99 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
MFS Oppenheimer ---------------------------------- ---------------------------------------- Main Street Main Street Growth Strategic Small-Cap Research Investors New Discovery & Income Bond Bond Growth Series Trust Series Series Fund Fund Fund Fund -------- ------------ ------------- ----------- ------ --------- ----------- Unit Balance at January 1, 2004 97,097 50,833 58,708 398,851 70,248 38,061 25,050 ======= ======= ======= ======== ====== ======= ====== Units Issued 2,706 1,495 382 4,246 262 933 281 Units Redeemed (20,944) (12,956) (21,348) (334,590) (9,134) (23,234) (2,587) ------- ------- ------- -------- ------ ------- ------ Unit Balance at December 31, 2004 78,859 39,372 37,742 68,507 61,376 15,760 22,744 ======= ======= ======= ======== ====== ======= ====== Units Issued 42 2,092 34 679 6 - 478 Units Redeemed (7,265) (5,346) (5,577) (7,628) (5,274) (9,019) (2,756) ------- ------- ------- -------- ------ ------- ------ Unit Balance at December 31, 2005 71,636 36,118 32,199 61,558 56,108 6,741 20,466 ======= ======= ======= ======== ====== ======= ======
(Continued) 100 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Oppenheimer Fidelity ------------------------- --------------------------------------------------------------- Capital Asset Equity- Money Appreciation Manager Growth Contrafund Overseas Income Fund Fund Portfolio Portfolio Portfolio Portfolio Portfolio ----------- ------------ ----------- ----------- ----------- ----------- ----------- Unit Balance at January 1, 2004 100,223 18,335,507 22,744,437 19,001,001 1,619,585 2,369,870 =========== =========== =========== =========== =========== =========== Units Issued 409 1,145,632 1,852,548 1,669,272 50,920 37,741 Units Redeemed (45,178) (2,738,722) (3,785,380) (2,037,710) (364,750) (392,265) ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2004 55,454 - 16,742,417 20,811,605 18,632,563 1,305,755 2,015,346 =========== =========== =========== =========== =========== =========== =========== Units Issued 318 - 914,047 1,436,688 1,833,357 120,574 20,938 Units Redeemed (19,943) - (2,823,318) (3,920,510) (2,158,928) (310,905) (354,440) ----------- ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 35,829 - 14,833,146 18,327,783 18,306,992 1,115,424 1,681,844 =========== =========== =========== =========== =========== =========== ===========
(Continued) 101 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Fidelity Scudder I Metlife ----------------------------------------------------- ------------- -------------------------- FI Russell 2000 Index 500 Money Market Mid-Cap Contrafund International Midcap Index Portfolio Portfolio Portfolio B Portfolio B Portfolio Portfolio Portfolio ------------ ------------ ------------ ------------ ------------- ------------ ------------ Unit Balance at January 1, 2004 12,981,916 3,919,391 3,132,281 472,999 229,747 ============ ============ ============ ============ ============ Units Issued 6,920 2,223,892 558,180 226,043 834,539 Units Redeemed (1,669,445) (1,832,144) (623,109) (84,205) (587,686) ------------ ------------ ------------ ------------ ------------ Unit Balance at December 31, 2004 11,319,391 4,311,139 - - 3,067,352 614,837 476,600 ============ ============ ============ ============ ============ ============ ============ Units Issued 70,580 1,641,690 - 2,419 463,667 120,786 563,884 Units Redeemed (1,651,849) (1,392,800) - - (432,089) (156,505) (531,637) ------------ ------------ ------------ ------------ ------------ ------------ ------------ Unit Balance at December 31, 2005 9,738,122 4,560,029 - 2,419 3,098,930 579,118 508,847 ============ ============ ============ ============ ============ ============ ============
(Continued) 102 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Metlife --------------------------------------------------------------------------------------- FI FI BlackRock International International Putnam Legacy Stock Stock Voyager Stock Index Stock Index Large-Cap Portfolio Portfolio B Portfolio Portfolio Portfolio B Growth ------------- ------------- ----------- ----------- ----------- ----------- Unit Balance at January 1, 2004 102,075 199,325 1,956,414 13,065,732 8,406 =========== =========== =========== =========== =========== Units Issued 32,211 18,011 353,635 8,665,525 8,549 Units Redeemed (14,208) (34,334) (294,834) (2,974,606) (5,332) ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2004 120,078 - 183,002 2,015,215 18,756,651 11,623 =========== =========== =========== =========== =========== =========== Units Issued 45,623 - 14,660 309,451 5,041,796 10,254 Units Redeemed (24,922) - (197,662) (338,384) (4,643,783) (5,810) ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 140,779 - - 1,986,282 19,154,664 16,067 =========== =========== =========== =========== =========== ===========
---- BlackRock Strategic Value Class A ----------- Unit Balance at January 1, 2004 170,814 =========== Units Issued 455,399 Units Redeemed (125,959) ----------- Unit Balance at December 31, 2004 500,254 =========== Units Issued 214,452 Units Redeemed (115,764) ----------- Unit Balance at December 31, 2005 598,942 ===========
(Continued) 103 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
MetLife ----------------------------------------------------------------------------------------- BlackRock BlackRock Lehman Brothers Harris Morgan Bond Large-Cap Aggregate Oakmark Stanley Income Value Bond Index FI Mid-Cap Large-Cap Value EAFE Index Class A Class A Class A Opportunities Class A Class A ----------- ----------- --------------- ------------- --------------- ----------- Unit Balance at January 1, 2004 14,179 19,981 55,030 71,708 144,358 110,435 =========== =========== =========== =========== =========== =========== Units Issued 33,697 38,765 150,652 74,916 224,189 275,627 Units Redeemed (6,479) (7,622) (30,070) (146,624) (34,923) (35,261) ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2004 41,397 51,124 175,612 - 333,624 350,801 =========== =========== =========== =========== =========== =========== Units Issued 39,540 43,996 168,898 185,697 359,890 Units Redeemed (11,404) (17,908) (43,862) (96,308) (73,937) ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 69,533 77,212 300,648 423,013 636,754 =========== =========== =========== =========== ===========
------- MFS Total Return Class A ----------- Unit Balance at January 1, 2004 19,756 =========== Units Issued 86,273 Units Redeemed (8,666) ----------- Unit Balance at December 31, 2004 97,363 =========== Units Issued 103,584 Units Redeemed (17,618) ----------- Unit Balance at December 31, 2005 183,329 ===========
(Continued) 104 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
MetLife ------------------------------------------------------------------------------------------- Davis Davis Harris Harris Mid-Cap Venture Venture Oakmark Oakmark Jennison Jennison Stock Index Value Value Focused Value Focused Value Growth Growth Class A Fund Fund E Fund A Fund B Portfolio A Portfolio B ----------- ----------- ----------- ------------- ------------- ----------- ----------- Unit Balance at January 1, 2004 128,276 27,371 39,430,080 115,746 29,524,602 18,943,891 =========== =========== =========== =========== =========== =========== Units Issued 274,805 63,374 43,188,532 275,930 16,523,778 18,744,168 Units Redeemed (38,229) (9,247) (28,647,204) (31,324) (18,498,880) (15,675,727) ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2004 364,852 81,498 53,971,408 360,352 27,549,500 - 22,012,332 =========== =========== =========== =========== =========== =========== =========== Units Issued 255,765 114,393 7,463,545 287,195 4,107,935 189,675 3,126,142 Units Redeemed (82,489) (18,044) (17,004,907) (68,427) (8,293,601) (37,407) (9,331,144) ----------- ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 538,128 177,847 44,430,046 579,120 23,363,834 152,268 15,807,330 =========== =========== =========== =========== =========== =========== ===========
(Continued) 105 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
MetLife Van Kampen ---------------------------------------------------------------- ------------------------ T. Rowe Salomon Oppenheimer BlackRock BlackRock Small-Cap Brothers U.S. Global Emerging Emerging Money Market Money Market Growth Government Equity Growth Growth Portfolio A Portfolio B Class A Class B Portfolio B Fund Fund B ------------ ------------ ----------- ------------- ----------- ----------- ----------- Unit Balance at January 1, 2004 - - 131,352 =========== =========== =========== Units Issued 3,089 35,384 127 Units Redeemed (1,233) (4,376) (23,249) ----------- ----------- ----------- Unit Balance at December 31, 2004 1,856 - 31,008 - - 108,230 - =========== =========== =========== =========== =========== =========== =========== Units Issued 457 27,627,331 39,020 444,727 - 5,622 - Units Redeemed (494) (15,197,732) (6,717) (53,492) - (24,993) - ----------- ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 1,819 12,429,599 63,311 391,235 - 88,859 - =========== =========== =========== =========== =========== =========== ===========
(Continued) 106 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Van Kampen Federated ------------------------------------------------- ----------------------------- Growth & Growth & Equity High Enterprise Income Income Comstock Income Income Fund Fund Fund B Fund B Fund II Bond Fund ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at January 1, 2004 50,200 61,622 81,743 48,364 =========== =========== =========== =========== Units Issued 5,924 2,822 556 1,872 Units Redeemed (9,743) (10,369) (61,655) (18,767) ----------- ----------- ----------- ----------- Unit Balance at December 31, 2004 46,381 54,075 - - 20,644 31,469 =========== =========== =========== =========== =========== =========== Units Issued 165 56 - - - - Units Redeemed (3,249) (10,498) - - (2,137) (9,326) ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 43,297 43,633 - - 18,507 22,143 =========== =========== =========== =========== =========== ===========
-------- American Leaders Fund II ----------- Unit Balance at January 1, 2004 140,461 =========== Units Issued 5,143 Units Redeemed (145,604) ----------- Unit Balance at December 31, 2004 - =========== Units Issued Units Redeemed Unit Balance at December 31, 2005
(Continued) 107 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Federated Neuberger Alger T.Rowe Price ----------- ----------- -------------- -------------------------------------- Growth Genesis Small Prime Strategic Trust Capitalization Growth International Reserve Fund Class A Fund Fund Fund Fund ----------- ----------- -------------- ----------- ------------- ----------- Unit Balance at January 1, 2004 47,399 2,060 9,758,550 171,175 117,827 87,209 =========== =========== =========== =========== =========== =========== Units Issued 707 - 930,119 17,085 8,968 80,310 Units Redeemed (9,204) (689) (1,670,753) (25,625) (18,864) (97,700) ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2004 38,902 1,371 9,017,916 162,635 107,931 69,819 =========== =========== =========== =========== =========== =========== Units Issued 494 - 1,169,601 12,389 10,433 92,361 Units Redeemed (4,395) (188) (1,880,384) (32,812) (15,645) (79,387) ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 35,001 1,183 8,307,133 142,212 102,719 82,793 =========== =========== =========== =========== =========== ===========
Janus ----------- Aspen Worldwide Growth Class A ----------- Unit Balance at January 1, 2004 1,585 =========== Units Issued - Units Redeemed (108) ----------- Unit Balance at December 31, 2004 1,477 =========== Units Issued 1 Units Redeemed (103) ----------- Unit Balance at December 31, 2005 1,375 ===========
(Continued) 108 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
American Alliance Templeton -------------------------------------------------- ----------- ------------------------ Bernstein Global Growth & Global Large-Cap Developing Foreign Small-Cap Growth Income Growth Growth Markets Securities Fund Fund Fund Fund B Fund B Fund B Fund B ----------- ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at January 1, 2004 77,922 59,754 53,632 =========== =========== =========== Units Issued 244,173 86,038 93,553 Units Redeemed (39,279) (13,087) (9,266) ----------- ----------- ----------- Unit Balance at December 31, 2004 282,816 132,705 137,919 - - - - =========== =========== =========== =========== =========== =========== =========== Units Issued 338,920 97,221 88,127 22,386 - 21,659 34,163 Units Redeemed (150,956) (21,863) (26,366) - - (122) (316) ----------- ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 470,780 208,063 199,680 22,386 - 21,537 33,847 =========== =========== =========== =========== =========== =========== ===========
(Continued) 109 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements 6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Templeton Lazard Morgan Stanley Pioneer ----------------------------------- ----------- ----------------------- ----------- Mutual Growth Shares VIP Income Retirement UIF Equity UIF U.S. VCT Securities Securities Securities Small-Cap and Income Real Estate Mid-Cap Fund B Fund B Fund B Portfolio Portfolio B Portfolio Portfolio B ----------- ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at January 1, 2004 Units Issued Units Redeemed Unit Balance at December 31, 2004 - - - - - - - =========== =========== =========== =========== =========== =========== =========== Units Issued - 11,181 4,136 1,373 - - - Units Redeemed - - - - - - - ----------- ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 - 11,181 4,136 1,373 - - - =========== =========== =========== =========== =========== =========== ===========
(Continued) 110 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Putnam Salomon Brothers Smith Barney ----------- ------------------------------------- ------------------------------------ VT Variable Greenwich Greenwich Small-Cap High Yield Variable VSF Investors Street Equity Fundamental Value Bond Small-Cap Fund Appreciation Index Fund Value Fund B Portfolio Portfolio Portfolio Portfolio B Portfolio B Portfolio ----------- ----------- ----------- ------------- ------------ ----------- ----------- Unit Balance at January 1, 2004 Units Issued Units Redeemed Unit Balance at December 31, 2004 - - - - - - - =========== =========== =========== =========== =========== =========== =========== Units Issued - 3,458 15,787 6,750 1,722 2,224 1,160 Units Redeemed - - - - - - - ----------- ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 - 3,458 15,787 6,750 1,722 2,224 1,160 =========== =========== =========== =========== =========== =========== ===========
(Continued) 111 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Smith Barney ------------------------------------------------------------------------------------------- Multi-Discipline Multi-Discipline Multi-Discipline Multi-Discipline Allocation Allocation Balanced All Cap Large-Cap All Cap Global All Cap Select Select Growth & Value Growth & Value Growth and Value Growth & Value Balanced Growth Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio ---------------- ---------------- ---------------- ---------------- ----------- ----------- Unit Balance at January 1, 2004 Units Issued Units Redeemed Unit Balance at December 31, 2004 - - - - - - =========== =========== =========== =========== =========== =========== Units Issued 2,660 2,136 9,633 10,041 - - Units Redeemed - - - - - - ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 2,660 2,136 9,633 10,041 - - =========== =========== =========== =========== =========== ===========
------------ Allocation Select High Growth Portfolio ----------- Unit Balance at January 1, 2004 Units Issued Units Redeemed Unit Balance at December 31, 2004 - =========== Units Issued - Units Redeemed - ----------- Unit Balance at December 31, 2005 - ===========
(d) For the period from November 7, 2005 to December 31, 2005 (Continued) 112 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Smith Barney --------------------------------------------------------------- Premier Greenwich Capital and IS Dividend Selections All IS Growth Street Income Strategy Cap Growth and Income Equity Index Portfolio Portfolio Portfolio Portfolio Portfolio ----------- ----------- -------------- ----------- ------------ Unit Balance at January 1, 2004 Units Issued Units Redeemed Unit Balance at December 31, 2004 - - - - - =========== =========== =========== =========== =========== Units Issued - 3,967 - - - Units Redeemed - - - - - ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 - 3,967 - - - =========== =========== =========== =========== ===========
Travelers Series Fund ---------------------------- Salomon Brothers Smith Barney Adjustable Aggressive Rate Income Growth Portfolio Portfolio ---------------- ------------ Unit Balance at January 1, 2004 Units Issued Units Redeemed Unit Balance at December 31, 2004 - - =========== =========== Units Issued 351 16,222 Units Redeemed - (288) ----------- ----------- Unit Balance at December 31, 2005 351 15,934 =========== ===========
(Continued) 113 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Travelers Series Fund ------------------------------------------------------- Smith Barney Smith Barney Smith Barney Smith Barney Large-Cap Large-Cap Money Social Awareness Growth Value Market Stock Portfolio Portfolio Portfolio Portfolio ------------ ------------ ------------ ---------------- Unit Balance at January 1, 2004 Units Issued Units Redeemed Unit Balance at December 31, 2004 - - - - =========== =========== =========== =========== Units Issued 15,281 - 15,276 - Units Redeemed (265) - - - ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 15,016 - 15,276 - =========== =========== =========== ===========
Travelers Series Trust ------------------------------------------ Managed Janus Allocation Series Appreciation Large-Cap Aggressive Portfolio Portfolio Portfolio ------------ ----------- ----------------- Unit Balance at January 1, 2004 Units Issued Units Redeemed Unit Balance at December 31, 2004 - - - =========== =========== =========== Units Issued 239 6,503 4,493 Units Redeemed - - - ----------- ----------- ----------- Unit Balance at December 31, 2005 239 6,503 4,493 =========== =========== ===========
(Continued) 114 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Travelers Series Trust ----------------------------------------------------------------------------------------- Managed Managed Managed Managed Allocation Series Allocation Series Allocation Series Allocation Series Conservative Moderate Moderate Aggressive Moderate Conservative MFS Value Portfolio Portfolio Portfolio Portfolio Portfolio ----------------- ----------------- ------------------- --------------------- ----------- Unit Balance at January 1, 2004 Units Issued Units Redeemed Unit Balance at December 31, 2004 - - - - - =========== =========== =========== =========== =========== Units Issued - 98,524 51,045 - 1,651 Units Redeemed - - - - - ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 - 98,524 51,045 - 1,651 =========== =========== =========== =========== ===========
------------------------ Style Focus Style Focus Series Series Small-Cap Small-Cap Growth Value Portfolio Portfolio ----------- ----------- Unit Balance at January 1, 2004 Units Issued Units Redeemed Unit Balance at December 31, 2004 - - =========== =========== Units Issued 4,581 7,734 Units Redeemed - - ----------- ----------- Unit Balance at December 31, 2005 4,581 7,734 =========== ===========
(Continued) 115 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Travelers Series Trust ------------------------------------------------------------------------------------ Travelers Pioneer Pioneer Managed Pioneer Mid-Cap Strategic Convertible MFS Federated Income Fund Value Income Securities Total Return High Yield Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio ----------- ----------- ----------- ----------- ----------- ------------ ----------- Unit Balance at January 1, 2004 Units Issued Units Redeemed Unit Balance at December 31, 2004 - - - - - - - =========== =========== =========== =========== =========== =========== =========== Units Issued 10,658 2,811 12,149 546 - 4,031 5,243 Units Redeemed - - - - - - - ----------- ----------- ----------- ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 10,658 2,811 12,149 546 - 4,031 5,243 =========== =========== =========== =========== =========== =========== ===========
(Continued) 116 METLIFE INVESTORS USA SEPARATE ACCOUNT A Notes to Financial Statements (6) CHANGES IN UNITS OUTSTANDING, CONTINUED:
Travelers Series Trust ------------------------------------------------ Mercury AIM U.S. Large-Cap Equity Capital Government Core Income Appreciation Securities Portfolio Portfolio Portfolio Portfolio ----------- ----------- ------------ ----------- Unit Balance at January 1, 2004 Units Issued Units Redeemed Unit Balance at December 31, 2004 - - - - =========== =========== =========== =========== Units Issued 2,961 6,546 - 167 Units Redeemed - - - - ----------- ----------- ----------- ----------- Unit Balance at December 31, 2005 2,961 6,546 - 167 =========== =========== =========== ===========
(Concluded) 117 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS MetLife Investors USA Separate Account A (the Separate Account) sells a number of variable annuity products which have unique combinations of features and fees that are charged against the contract owner's account balance. Differences in the fee structures result in a variety of unit values, expense ratios, and total returns. The following table displays the financial information for each sub-account offered by the various products in the Separate Account in ranges of lowest to highest values:
Met Investors --------------------------------------------------------------------------------------- Lord Abbett Lord Abbett Lord Abbett Lord Abbett Lord Abbett Growth and Growth and Bond Bond Growth Income Income Debenture Debenture Opportunities Portfolio Portfolio B Portfolio Portfolio B Portfolio B ------------------ ------------------ ---------------- ---------------- --------------- DECEMBER 31, 2005 Units 10,810,129 10,828,479 265,814 17,636,059 30,352 Unit Fair Value, Lowest to Highest (1) $83.02 to $49.25 $49.03 to $47.57 $18.28 to $17.40 $17.27 to $16.76 $10.06 to $9.63 Net Assets (In Thousands) $301,797 $522,233 $3,407 $299,608 $300 Investment Income Ratio to Net Assets (2) 1.08% 0.77% 5.49% 3.79% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 1.30% to 2.35% 0.89% to 1.40% 1.30% to 2.35% 1.40% to 2.30% Total Return, Lowest to Highest (4) 2.76% to 2.24% 2.06% to 1.00% 0.91% to 0.40% 0.19% to -0.86% 4.55% to 4.40% DECEMBER 31, 2004 Units 11,695,644 14,203,926 199,216 26,081,534 Unit Fair Value, Lowest to Highest (1) $80.79 to $48.17 $48.04 to $47.10 $18.12 to $17.33 $17.24 to $16.91 Net Assets (In Thousands) $319,825 $673,340 $2,211 $443,728 Investment Income Ratio to Net Assets (2) 0.48% 0.31% 4.67% 2.64% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 1.30% to 2.35% 0.89% to 1.40% 1.30% to 2.35% Total Return, Lowest to Highest (4) 11.92% to 11.35% 11.19% to 10.02% 7.47% to 6.92% 6.77% to 5.65% DECEMBER 31, 2003 Units 12,148,950 14,631,212 108,131 30,331,364 Unit Fair Value, Lowest to Highest (1) $72.18 to $22.54 $43.21 to $42.81 $16.86 to $5.48 $16.15 to $16.00 Net Assets (In Thousands) $298,174 $626,102 $997 $485,074 Investment Income Ratio to Net Assets (2) 1.15% 0.69% 3.64% 2.75% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 1.30% to 2.35% 0.89% to 1.40% 1.30% to 2.35% Total Return, Lowest to Highest (4) 29.90% to 29.24% 29.04% to 23.90% 18.46% to 17.86% 17.62% to 8.88% DECEMBER 31, 2002 Units 12,846,775 4,763,078 23,392 8,449,518 Unit Fair Value, Lowest to Highest (1) $17.44 to $55.57 $33.02 to $33.48 $4.65 to $4.65 $13.54 to $13.73 Net Assets (In Thousands) $256,901 $158,469 $109 $115,255 Investment Income Ratio to Net Assets (2) 0.91% 1.77% 0.00% 4.91% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 1.30% to 2.25% 1.40% to 1.40% 1.30% to 2.25% Total Return, Lowest to Highest (4) -19.09% to -18.67% -19.94% to -19.18% -1.77% to -1.77% -2.79% to -1.86% DECEMBER 31, 2001 Units 13,056,744 829,894 949,659 Unit Fair Value, Lowest to Highest (1) $21.56 to $68.33 $41.18 to $41.43 $13.91 to $13.99 Net Assets (In Thousands) $325,654 $34,277 $13,246 Investment Income Ratio to Net Assets (2) 0.95% 0.17% 1.47% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 1.30% to 2.25% 1.30% to 2.25% Total Return, Lowest to Highest (4) -7.24% to -6.56% -8.09% to -7.21% 1.17% to 2.14%
----------------- Lord Abbett Mid-Cap Value Portfolio B ---------------- DECEMBER 31, 2005 Units 14,110 Unit Fair Value, Lowest to Highest (1) $25.27 to $23.23 Net Assets (In Thousands) $344 Investment Income Ratio to Net Assets (2) 0.35% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 2.30% Total Return, Lowest to Highest (4) 4.31% to 4.15% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 118 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Met Investors ------------------------------------------------------------------------------------------ JP Morgan Met/AIM Quality Met/Putnam Met/Putnam Lazard Small-Cap Bond Research Research Mid-Cap Growth Portfolio Portfolio Portfolio B Portfolio B Portfolio ---------------- ------------------ ------------------ ------------------ ---------------- DECEMBER 31, 2005 Units 8,655,654 53,445 Unit Fair Value, Lowest to Highest (1) $14.52 to $14.10 $13.43 to $13.17 Net Assets (In Thousands) $123,821 $704 Investment Income Ratio to Net Assets (2) 0.06% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 0.89% to 1.35% Total Return, Lowest to Highest (4) 6.67% to 5.56% 7.63% to 7.14% DECEMBER 31, 2004 Units 10,260,770 36,199 Unit Fair Value, Lowest to Highest (1) $13.61 to $13.35 $12.48 to $12.29 Net Assets (In Thousands) $138,066 $445 Investment Income Ratio to Net Assets (2) 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 0.89% to 1.35% Total Return, Lowest to Highest (4) 12.92% to 11.74% 5.78% to 5.30% DECEMBER 31, 2003 Units 2,677,207 2,828,413 8,932,927 12,288,849 31,568 Unit Fair Value, Lowest to Highest (1) $26.53 to $11.96 $8.65 to $6.78 $7.74 to $7.67 $12.05 to $11.95 $11.70 to $11.67 Net Assets (In Thousands) $33,184 $22,791 $68,483 $146,961 $369 Investment Income Ratio to Net Assets (2) 3.73% 0.03% 0.00% 1.53% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 1.15% to 1.40% 1.30% to 2.35% 1.30% to 2.35% 1.25% to 1.35% Total Return, Lowest to Highest (4) 3.07% to 2.55% 23.19% to 22.88% 22.73% to 19.42% 24.55% to 22.83% 37.35% to 37.21% DECEMBER 31, 2002 Units 3,059,939 3,520,815 4,317,303 2,416,396 Unit Fair Value, Lowest to Highest (1) $11.25 to $25.74 $5.52 to $7.02 $6.22 to $6.31 $9.57 to $9.68 Net Assets (In Thousands) $38,254 $23,034 $27,062 $23,277 Investment Income Ratio to Net Assets (2) 5.20% 0.41% 0.69% 0.02% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 1.15% to 1.40% 1.30% to 2.25% 1.30% to 2.25% Total Return, Lowest to Highest (4) 7.44% to 7.99% -21.71% to -21.52% -22.58% to -21.84% -12.80% to -11.97% DECEMBER 31, 2001 Units 2,400,419 4,271,829 1,148,099 91,975 Unit Fair Value, Lowest to Highest (1) $10.47 to $23.83 $7.05 to $8.94 $8.03 to $8.07 $10.97 to $10.99 Net Assets (In Thousands) $27,978 $35,502 $9,240 $1,010 Investment Income Ratio to Net Assets (2) 4.86% 0.07% 0.44% 0.05% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 1.15% to 1.40% 1.30% to 2.25% 1.30% to 2.25% Total Return, Lowest to Highest (4) 5.33% to 6.10% 7.00% to 7.00% -1.54% to -0.81% 9.70% to 9.94%
------------------- Met/AIM Small-Cap Growth Portfolio B ------------------ DECEMBER 31, 2005 Units 13,192,731 Unit Fair Value, Lowest to Highest (1) $13.06 to $12.68 Net Assets (In Thousands) $169,765 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% Total Return, Lowest to Highest (4) 6.87% to 5.76% DECEMBER 31, 2004 Units 18,288,035 Unit Fair Value, Lowest to Highest (1) $12.22 to $11.99 Net Assets (In Thousands) $220,855 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% Total Return, Lowest to Highest (4) 5.05% to 3.95% DECEMBER 31, 2003 Units 12,475,776 Unit Fair Value, Lowest to Highest (1) $11.63 to $11.53 Net Assets (In Thousands) $143,948 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% Total Return, Lowest to Highest (4) 37.07% to 32.40% DECEMBER 31, 2002 Units 4,064,765 Unit Fair Value, Lowest to Highest (1) $8.38 to $8.48 Net Assets (In Thousands) $34,329 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% Total Return, Lowest to Highest (4) -29.12% to -28.44% DECEMBER 31, 2001 Units 119,269 Unit Fair Value, Lowest to Highest (1) $11.83 to $11.86 Net Assets (In Thousands) $1,413 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% Total Return, Lowest to Highest (4) 18.30% to 18.55%
(Continued) 119 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Met Investors ------------------------------------------------------------------------------------------ Harris Third Avenue Third Avenue Oppenheimer Oppenheimer Oakmark Small-Cap Small-Cap Capital Capital International Value Value Appreciation Appreciation Portfolio B Portfolio Portfolio B Portfolio Portfolio B ------------------ ---------------- ------------------ ---------------- ------------------ DECEMBER 31, 2005 Units 18,995,708 373,791 19,722,318 1,520,722 41,507,591 Unit Fair Value, Lowest to Highest (1) $15.81 to $15.34 $16.74 to $16.46 $16.37 to $15.90 $10.70 to $10.60 $8.67 to $8.41 Net Assets (In Thousands) $295,834 $6,155 $318,676 $16,230 $354,118 Investment Income Ratio to Net Assets (2) 0.00% 0.00% 0.00% 0.06% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 0.89% to 1.35% 1.30% to 2.35% 1.15% to 1.40% 1.30% to 2.35% Total Return, Lowest to Highest (4) 12.77% to 11.59% 14.79% to 14.27% 13.99% to 12.80% 3.80% to 3.54% 3.37% to 2.29% DECEMBER 31, 2004 Units 22,456,213 194,501 22,452,877 1,786,011 55,906,428 Unit Fair Value, Lowest to Highest (1) $14.02 to $13.75 $14.58 to $14.41 $14.36 to $14.10 $10.31 to $10.24 $8.39 to $8.22 Net Assets (In Thousands) $311,119 $2,802 $319,335 $18,297 $462,797 Investment Income Ratio to Net Assets (2) 0.00% 2.98% 1.38% 0.00% 3.35% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 0.89% to 1.35% 1.30% to 2.35% 1.15% to 1.40% 1.30% to 2.35% Total Return, Lowest to Highest (4) 18.96% to 17.72% 25.68% to 25.10% 24.87% to 23.56% 3.09% to 5.21% 5.03% to 3.93% DECEMBER 31, 2003 Units 16,889,437 50,110 19,557,686 51,514,003 Unit Fair Value, Lowest to Highest (1) $11.78 to $11.68 $11.54 to $11.52 $11.50 to $11.41 $7.99 to $7.91 Net Assets (In Thousands) $197,425 $577 $223,583 $407,474 Investment Income Ratio to Net Assets (2) 1.81% 0.62% 0.48% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 1.25% to 1.35% 1.30% to 2.35% 1.30% to 2.35% Total Return, Lowest to Highest (4) 33.23% to 33.47% 39.78% to 39.64% 39.60% to 34.67% 26.87% to 20.90% DECEMBER 31, 2002 Units 1,441,751 3,106,789 15,642,954 Unit Fair Value, Lowest to Highest (1) $8.74 to $8.84 $8.19 to $8.24 $6.21 to $6.30 Net Assets (In Thousands) $12,689 $25,529 $97,837 Investment Income Ratio to Net Assets (2) 0.24% 0.39% 0.01% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% 1.30% to 2.25% 1.30% to 2.25% Total Return, Lowest to Highest (4) -19.92% to -19.15% -18.14% to -17.62% -26.41% to -25.71% DECEMBER 31, 2001 Units 20,012 2,574,330 Unit Fair Value, Lowest to Highest (1) $10.91 to $10.94 $8.42 to $8.47 Net Assets (In Thousands) $219 $21,746 Investment Income Ratio to Net Assets (2) 0.08% 0.07% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% 1.30% to 2.25% Total Return, Lowest to Highest (4) 9.15% to 9.38% -1.73% to -1.00%
----------------- Money Market Portfolio B ---------------- DECEMBER 31, 2005 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2004 Units 10,057,248 Unit Fair Value, Lowest to Highest (1) $9.99 to $9.79 Net Assets (In Thousands) $99,153 Investment Income Ratio to Net Assets (2) 0.64% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% Total Return, Lowest to Highest (4) -0.66% to -1.70% DECEMBER 31, 2003 Units 11,786,985 Unit Fair Value, Lowest to Highest (1) $10.05 to $9.96 Net Assets (In Thousands) $117,287 Investment Income Ratio to Net Assets (2) 0.41% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% Total Return, Lowest to Highest (4) -0.86% to -1.33% DECEMBER 31, 2002 Units 8,981,636 Unit Fair Value, Lowest to Highest (1) $10.00 to $10.14 Net Assets (In Thousands) $90,464 Investment Income Ratio to Net Assets (2) 1.02% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% Total Return, Lowest to Highest (4) -1.15% to -0.21% DECEMBER 31, 2001 Units 2,040,930 Unit Fair Value, Lowest to Highest (1) $10.10 to $10.16 Net Assets (In Thousands) $20,681 Investment Income Ratio to Net Assets (2) 1.02% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% Total Return, Lowest to Highest (4) 0.66% to 1.29%
(Continued) 120 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Met Investors --------------------------------------------------------------------- Janus PIMCO PIMCO Aggressive Total Return Total Return RCM Global Growth Bond Bond Technology Portfolio B Portfolio Portfolio B Portfolio ------------------ ---------------- ---------------- ---------------- DECEMBER 31, 2005 Units 16,090,265 6,296,278 30,322,007 158,398 Unit Fair Value, Lowest to Highest (1) $8.08 to $7.84 $12.65 to $8.28 $12.25 to $11.89 $4.93 to $4.82 Net Assets (In Thousands) $127,810 $53,287 $365,466 $763 Investment Income Ratio to Net Assets (2) 0.00% 0.05% 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 0.89% to 1.40% 1.30% to 2.35% 0.89% to 1.35% Total Return, Lowest to Highest (4) 12.11% to 10.95% 1.56% to 1.04% 0.93% to -0.12% 10.37% to 9.86% DECEMBER 31, 2004 Units 25,135,863 6,388,058 35,911,885 163,390 Unit Fair Value, Lowest to Highest (1) $7.21 to $7.06 $12.46 to $12.21 $12.14 to $11.90 $4.47 to $4.39 Net Assets (In Thousands) $178,657 $53,478 $430,244 $717 Investment Income Ratio to Net Assets (2) 0.00% 5.26% 7.26% 0.08% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 0.89% to 1.40% 1.30% to 2.35% 0.89% to 1.35% Total Return, Lowest to Highest (4) 7.04% to 5.92% 4.31% to 3.78% 3.62% to 2.54% -5.13% to -5.56% DECEMBER 31, 2003 Units 26,535,225 2,852,827 41,371,628 139,123 Unit Fair Value, Lowest to Highest (1) $6.73 to $6.67 $11.94 to $7.90 $11.71 to $11.61 $4.71 to $4.65 Net Assets (In Thousands) $176,919 $22,687 $479,951 $646 Investment Income Ratio to Net Assets (2) 0.00% 1.06% 1.38% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 0.89% to 1.40% 1.30% to 2.35% 0.89% to 1.35% Total Return, Lowest to Highest (4) 29.21% to 21.15% 3.59% to 3.07% 2.96% to -0.06% 56.45% to 55.73% DECEMBER 31, 2002 Units 7,128,991 3,311,248 21,084,805 Unit Fair Value, Lowest to Highest (1) $5.14 to $5.21 $7.66 to $7.73 $11.22 to $11.38 Net Assets (In Thousands) $36,902 $25,487 $238,271 Investment Income Ratio to Net Assets (2) 0.01% 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% 1.15% to 1.40% 1.30% to 2.25% Total Return, Lowest to Highest (4) -29.44% to -28.77% 8.04% to 8.31% 6.86% to 7.88% DECEMBER 31, 2001 Units 1,408,153 3,960,781 2,425,689 Unit Fair Value, Lowest to Highest (1) $7.27 to $7.31 $7.09 to $7.14 $10.48 to $10.54 Net Assets (In Thousands) $10,268 $28,189 $25,502 Investment Income Ratio to Net Assets (2) 0.00% 0.88% 2.47% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% 1.15% to 1.40% 1.30% to 2.25% Total Return, Lowest to Highest (4) -9.72% to -9.05% -0.31% to -0.25% 3.00% to 3.77%
------------------------------------ PIMCO RCM Global Inflation Technology Protected Bond Portfolio B Portfolio B ------------------ ---------------- DECEMBER 31, 2005 Units 10,285,555 24,805,097 Unit Fair Value, Lowest to Highest (1) $4.77 to $4.63 $11.25 to $10.93 Net Assets (In Thousands) $48,291 $276,161 Investment Income Ratio to Net Assets (2) 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 1.30% to 2.35% Total Return, Lowest to Highest (4) 9.59% to 8.44% 0.08% to -0.96% DECEMBER 31, 2004 Units 14,594,741 32,840,848 Unit Fair Value, Lowest to Highest (1) $4.36 to $4.27 $11.24 to $11.04 Net Assets (In Thousands) $62,731 $366,675 Investment Income Ratio to Net Assets (2) 0.08% 4.84% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 1.30% to 2.35% Total Return, Lowest to Highest (4) -5.55% to -6.54% 7.60% to 6.47% DECEMBER 31, 2003 Units 9,200,629 25,707,912 Unit Fair Value, Lowest to Highest (1) $4.61 to $4.57 $10.44 to $10.37 Net Assets (In Thousands) $42,018 $267,795 Investment Income Ratio to Net Assets (2) 0.00% 0.42% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 1.30% to 2.35% Total Return, Lowest to Highest (4) 55.54% to 38.29% 4.43% to 3.70% DECEMBER 31, 2002 Units 3,460,978 Unit Fair Value, Lowest to Highest (1) $2.92 to $2.97 Net Assets (In Thousands) $10,196 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% Total Return, Lowest to Highest (4) -51.83% to -51.37% DECEMBER 31, 2001 Units 719,543 Unit Fair Value, Lowest to Highest (1) $6.06 to $6.10 Net Assets (In Thousands) $4,375 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% Total Return, Lowest to Highest (4) -16.33% to -15.70%
(Continued) 121 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Met Investors ----------------------------------------------------------------------- T. Rowe Price MFS MFS Neuberger Mid-Cap Research Research Berman Growth International International Real Estate Portfolio B Portfolio Portfolio B Portfolio B ------------------ ---------------- ------------------ ---------------- DECEMBER 31, 2005 Units 27,249,715 142,641 15,996,541 5,060,098 Unit Fair Value, Lowest to Highest (1) $8.08 to $7.84 $13.79 to $12.97 $12.91 to $12.53 $14.36 to $14.11 Net Assets (In Thousands) $216,790 $1,855 $203,134 $72,233 Investment Income Ratio to Net Assets (2) 0.00% 0.79% 0.34% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 0.89% to 1.40% 1.30% to 2.35% 1.30% to 2.35% Total Return, Lowest to Highest (4) 13.15% to 11.97% 15.91% to 15.15% 14.92% to 13.73% 11.83% to 10.66% DECEMBER 31, 2004 Units 27,535,906 45,121 20,914,861 6,453,896 Unit Fair Value, Lowest to Highest (1) $7.14 to $7.00 $11.90 to $11.27 $11.23 to $10.01 $12.84 to $12.75 Net Assets (In Thousands) $194,196 $509 $231,859 $82,682 Investment Income Ratio to Net Assets (2) 0.00% 0.49% 0.23% 3.24% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 0.89% to 1.40% 1.30% to 2.35% 1.30% to 2.35% Total Return, Lowest to Highest (4) 16.30% to 15.08% 19.72% to 18.06% 18.01% to 16.78% 28.44% to 27.55% DECEMBER 31, 2003 Units 33,526,891 12,887,155 Unit Fair Value, Lowest to Highest (1) $6.14 to $6.09 $9.52 to $9.43 Net Assets (In Thousands) $203,972 $121,501 Investment Income Ratio to Net Assets (2) 0.00% 0.89% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 1.30% to 2.35% Total Return, Lowest to Highest (4) 34.88% to 27.90% 30.34% to 28.59% DECEMBER 31, 2002 Units 9,490,409 6,394,788 Unit Fair Value, Lowest to Highest (1) $4.49 to $4.55 $7.20 to $7.30 Net Assets (In Thousands) $42,935 $46,398 Investment Income Ratio to Net Assets (2) 0.00% 0.24% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% 1.30% to 2.25% Total Return, Lowest to Highest (4) -45.29% to -44.76% -13.77% to -12.94% DECEMBER 31, 2001 Units 1,668,902 916,898 Unit Fair Value, Lowest to Highest (1) $8.19 to $8.24 $8.34 to $8.39 Net Assets (In Thousands) $13,714 $7,667 Investment Income Ratio to Net Assets (2) 0.00% 0.13% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% 1.30% to 2.25% Total Return, Lowest to Highest (4) 1.03% to 1.78% -5.45% to -4.75%
---------------------------------- Turner Goldman Sachs Mid-Cap Mid-Cap Growth Value Portfolio B Portfolio B ---------------- ---------------- DECEMBER 31, 2005 Units 3,230,076 7,266,539 Unit Fair Value, Lowest to Highest (1) $12.23 to $12.01 $13.31 to $13.08 Net Assets (In Thousands) $39,254 $96,097 Investment Income Ratio to Net Assets (2) 0.00% 0.76% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 1.30% to 2.35% Total Return, Lowest to Highest (4) 9.92% to 8.78% 11.09% to 9.93% DECEMBER 31, 2004 Units 5,202,742 6,316,125 Unit Fair Value, Lowest to Highest (1) $11.12 to $11.04 $11.98 to $11.90 Net Assets (In Thousands) $57,720 $75,475 Investment Income Ratio to Net Assets (2) 0.00% 0.97% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 1.30% to 2.35% Total Return, Lowest to Highest (4) 11.24% to 10.47% 19.81% to 18.98% DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 122 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Met Investors ------------------------------------------------------------------------------------ Defensive Moderate Balanced Growth Aggressive Strategy Strategy Strategy Strategy Strategy Fund of Fund of Fund of Fund of Fund of Fund B Fund B Fund B Fund B Fund B ---------------- ---------------- ---------------- ---------------- ---------------- DECEMBER 31, 2005 Units 26,019,030 81,402,093 244,234,395 203,679,869 42,330,798 Unit Fair Value, Lowest to Highest (1) $10.43 to $10.30 $10.69 to $10.56 $10.99 to $10.86 $11.43 to $11.29 $11.65 to $11.51 Net Assets (In Thousands) $270,290 $866,351 $2,673,666 $2,317,496 $491,059 Investment Income Ratio to Net Assets (2) 1.17% 1.28% 1.27% 1.16% 0.93% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 1.30% to 2.35% 1.30% to 2.35% 1.30% to 2.35% 1.30% to 2.35% Total Return, Lowest to Highest (4) 3.13% to 2.06% 4.45% to 3.36% 5.74% to 4.64% 7.72% to 6.60% 8.96% to 7.82% DECEMBER 31, 2004 Units 10,259,110 36,400,671 114,542,772 91,629,337 20,464,973 Unit Fair Value, Lowest to Highest (1) $10.11 to $10.10 $10.23 to $10.22 $10.40 to $10.38 $10.61 to $10.59 $10.69 to $10.68 Net Assets (In Thousands) $103,691 $372,286 $1,190,221 $971,460 $218,708 Investment Income Ratio to Net Assets (2) 1.71% 1.34% 0.99% 0.62% 0.22% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 1.30% to 2.35% 1.30% to 2.35% 1.30% to 2.35% 1.30% to 2.35% Total Return, Lowest to Highest (4) 1.71% to 1.59% 2.20% to 2.08% 2.91% to 2.79% 3.56% to 3.45% 3.79% to 3.67% DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
----------------- Van Kampen Comstock Portfolio B ---------------- DECEMBER 31, 2005 Units 1,605,458 Unit Fair Value, Lowest to Highest (1) $10.48 to $10.41 Net Assets (In Thousands) $16,786 Investment Income Ratio to Net Assets (2) 1.82% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% Total Return, Lowest to Highest (4) 4.84% to 4.11% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 123 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Met Investors AIM --------------------------------- -------------------------------------------------------- Legg Mason Met/Putnam Value Capital Premier Capital International Equity Opportunities Equity Appreciation Growth Portfolio B Portfolio B Fund Fund Fund ---------------- ---------------- ------------------ ------------------ ------------------ DECEMBER 31, 2005 Units 125,789 - 317,256 146,864 140,508 Unit Fair Value, Lowest to Highest (1) $10.63 to $10.61 $17.71 to $14.65 $3.90 to $3.90 $4.82 to $4.82 $5.97 to $5.97 Net Assets (In Thousands) $1,336 $- $1,236 $708 $839 Investment Income Ratio to Net Assets (2) 0.00% 0.00% 0.78% 0.06% 0.66% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 1.40% to 2.25% 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 6.28% to 6.10% 4.54% to 4.39% 4.19% to 4.19% 7.33% to 7.33% 16.29% to 16.29% DECEMBER 31, 2004 Units 372,968 160,011 149,241 Unit Fair Value, Lowest to Highest (1) $3.74 to $3.74 $4.49 to $4.49 $5.14 to $5.14 Net Assets (In Thousands) $1,395 $719 $767 Investment Income Ratio to Net Assets (2) 0.44% 0.00% 0.64% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 4.30% to 4.30% 5.14% to 5.14% 22.28% to 22.28% DECEMBER 31, 2003 Units 427,127 187,203 157,713 Unit Fair Value, Lowest to Highest (1) $3.59 to $3.59 $4.28 to $4.28 $4.20 to $4.20 Net Assets (In Thousands) $1,531 $800 $663 Investment Income Ratio to Net Assets (2) 0.31% 0.00% 0.55% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 23.34% to 23.34% 27.72% to 27.72% 27.27% to 27.27% DECEMBER 31, 2002 Units 467,409 213,116 168,594 Unit Fair Value, Lowest to Highest (1) $2.91 to $2.91 $3.35 to $3.35 $3.30 to $3.30 Net Assets (In Thousands) $1,359 $713 $557 Investment Income Ratio to Net Assets (2) 0.31% 0.00% 0.55% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) -31.23% to -31.23% -25.41% to -25.41% -16.85% to -16.85% DECEMBER 31, 2001 Units 544,055 236,958 189,032 Unit Fair Value, Lowest to Highest (1) $4.23 to $4.23 $4.49 to $4.49 $3.97 to $3.97 Net Assets (In Thousands) $2,300 $1,063 $750 Investment Income Ratio to Net Assets (2) 0.14% 0.00% 0.34% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) -11.93% to -11.93% -11.93% to -11.93% -11.93% to -11.93%
------------------- Basic Balanced Fund ------------------ DECEMBER 31, 2005 Units 210,112 Unit Fair Value, Lowest to Highest (1) $4.88 to $4.88 Net Assets (In Thousands) $1,025 Investment Income Ratio to Net Assets (2) 1.37% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% Total Return, Lowest to Highest (4) 3.83% to 3.83% DECEMBER 31, 2004 Units 248,074 Unit Fair Value, Lowest to Highest (1) $4.70 to $4.70 Net Assets (In Thousands) $1,166 Investment Income Ratio to Net Assets (2) 1.39% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% Total Return, Lowest to Highest (4) 6.02% to 6.02% DECEMBER 31, 2003 Units 264,594 Unit Fair Value, Lowest to Highest (1) $4.43 to $4.43 Net Assets (In Thousands) $1,173 Investment Income Ratio to Net Assets (2) 1.95% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% Total Return, Lowest to Highest (4) 14.75% to 14.75% DECEMBER 31, 2002 Units 298,328 Unit Fair Value, Lowest to Highest (1) $3.86 to $3.86 Net Assets (In Thousands) $1,152 Investment Income Ratio to Net Assets (2) 2.34% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% Total Return, Lowest to Highest (4) -18.25% to -18.25% DECEMBER 31, 2001 Units 334,293 Unit Fair Value, Lowest to Highest (1) $4.73 to $4.73 Net Assets (In Thousands) $1,580 Investment Income Ratio to Net Assets (2) 1.91% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% Total Return, Lowest to Highest (4) -11.93% to -11.93%
(Continued) 124 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
MFS -------------------------------------------------------- ------------------ Main Street Investors New Growth & Research Trust Discovery Income Series Series Series Fund ------------------ ------------------ ------------------ ------------------ DECEMBER 31, 2005 Units 71,636 36,118 32,199 61,558 Unit Fair Value, Lowest to Highest (1) $4.70 to $4.70 $4.56 to $4.56 $6.48 to $6.48 $4.80 to $4.80 Net Assets (In Thousands) $337 $165 $209 $295 Investment Income Ratio to Net Assets (2) 0.48% 0.56% 0.00% 1.38% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 6.31% to 6.31% 5.83% to 5.83% 3.79% to 3.79% 4.51% to 4.51% DECEMBER 31, 2004 Units 78,859 39,372 37,742 68,507 Unit Fair Value, Lowest to Highest (1) $4.42 to $4.42 $4.31 to $4.31 $6.24 to $6.24 $4.59 to $4.59 Net Assets (In Thousands) $349 $170 $236 $314 Investment Income Ratio to Net Assets (2) 1.14% 0.66% 0.00% 1.66% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 14.24% to 14.24% 9.80% to 9.80% 5.03% to 5.03% 7.93% to 7.93% DECEMBER 31, 2003 Units 97,097 50,833 58,708 398,851 Unit Fair Value, Lowest to Highest (1) $3.87 to $3.87 $3.92 to $3.92 $5.95 to $5.95 $4.25 to $4.25 Net Assets (In Thousands) $376 $199 $349 $1,696 Investment Income Ratio to Net Assets (2) 0.67% 0.67% 0.00% 0.97% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 22.97% to 22.97% 20.45% to 20.45% 31.86% to 31.86% 24.96% to 24.96% DECEMBER 31, 2002 Units 114,262 54,292 75,459 436,506 Unit Fair Value, Lowest to Highest (1) $3.15 to $3.15 $3.26 to $3.26 $4.51 to $4.51 $3.40 to $3.40 Net Assets (In Thousands) $360 $177 $340 $1,485 Investment Income Ratio to Net Assets (2) 0.28% 0.56% 0.00% 0.81% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) -25.59% to -25.59% -22.06% to -22.06% -32.58% to -32.58% -19.93% to -19.93% DECEMBER 31, 2001 Units 126,396 60,869 90,551 552,681 Unit Fair Value, Lowest to Highest (1) $4.23 to $4.23 $4.18 to $4.18 $6.69 to $6.69 $4.25 to $4.25 Net Assets (In Thousands) $535 $254 $606 $2,349 Investment Income Ratio to Net Assets (2) 1.16% 0.57% 3.11% 0.53% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) -11.93% to -11.93% -11.93% to -11.93% -11.93% to -11.93% -11.93% to -11.93%
Oppenheimer -------------------------------------- Strategic Bond Bond Fund Fund ------------------ ------------------ DECEMBER 31, 2005 Units 56,108 6,741 Unit Fair Value, Lowest to Highest (1) $6.64 to $6.64 $7.18 to $7.18 Net Assets (In Thousands) $372 $48 Investment Income Ratio to Net Assets (2) 5.19% 5.03% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 1.16% to 1.16% 1.24% to 1.24% DECEMBER 31, 2004 Units 61,376 15,760 Unit Fair Value, Lowest to Highest (1) $6.56 to $6.56 $7.09 to $7.09 Net Assets (In Thousands) $403 $112 Investment Income Ratio to Net Assets (2) 4.89% 7.67% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 4.02% to 4.02% 7.16% to 7.16% DECEMBER 31, 2003 Units 70,248 38,061 Unit Fair Value, Lowest to Highest (1) $6.31 to $6.31 $6.62 to $6.62 Net Assets (In Thousands) $443 $252 Investment Income Ratio to Net Assets (2) 5.47% 6.49% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 5.29% to 5.29% 16.43% to 16.43% DECEMBER 31, 2002 Units 70,085 43,633 Unit Fair Value, Lowest to Highest (1) $5.99 to $5.99 $5.69 to $5.69 Net Assets (In Thousands) $420 $248 Investment Income Ratio to Net Assets (2) 7.68% 8.38% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 7.56% to 7.56% 5.95% to 5.95% DECEMBER 31, 2001 Units 66,734 60,360 Unit Fair Value, Lowest to Highest (1) $5.57 to $5.57 $5.37 to $5.37 Net Assets (In Thousands) $372 $324 Investment Income Ratio to Net Assets (2) 7.36% 2.21% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) -11.93% to -11.93% -11.93% to -11.93%
(Continued) 125 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Oppenheimer ------------------------------------------------------ ----------------- Main Street Small-Cap Capital Asset Growth Money Appreciation Manager Fund Fund Fund Portfolio ------------------ ------------------ ---------------- ----------------- DECEMBER 31, 2005 Units 20,466 35,829 - 14,833,146 Unit Fair Value, Lowest to Highest (1) $9.29 to $9.29 $5.45 to $5.45 $72.34 to $66.58 $10.20 to $10.10 Net Assets (In Thousands) $190 $195 $- $149,965 Investment Income Ratio to Net Assets (2) 0.00% 2.77% 0.00% 2.76% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.50% to 1.90% 0.89% to 1.40% Total Return, Lowest to Highest (4) 8.40% to 8.40% 1.44% to 1.44% 3.92% to 3.85% 3.12% to 2.60% DECEMBER 31, 2004 Units 22,744 55,454 16,742,417 Unit Fair Value, Lowest to Highest (1) $8.57 to $8.57 $5.38 to $5.38 $9.89 to $9.84 Net Assets (In Thousands) $195 $298 $164,901 Investment Income Ratio to Net Assets (2) 0.00% 0.82% 2.75% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 0.89% to 1.40% Total Return, Lowest to Highest (4) 17.76% to 17.76% -0.42% to -0.42% 4.53% to 4.00% DECEMBER 31, 2003 Units 25,050 100,223 18,335,507 Unit Fair Value, Lowest to Highest (1) $7.28 to $7.28 $5.40 to $5.40 $9.46 to $9.46 Net Assets (In Thousands) $182 $541 $173,560 Investment Income Ratio to Net Assets (2) 0.00% 0.95% 3.56% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 0.89% to 1.40% Total Return, Lowest to Highest (4) 42.36% to 42.36% -0.61% to -0.61% 16.93% to 16.34% DECEMBER 31, 2002 Units 24,139 167,544 20,018,998 Unit Fair Value, Lowest to Highest (1) $5.11 to $5.11 $5.43 to $5.43 $8.07 to $8.16 Net Assets (In Thousands) $123 $910 $162,779 Investment Income Ratio to Net Assets (2) 0.00% 1.47% 4.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 0.89% to 1.40% Total Return, Lowest to Highest (4) -16.92% to -16.92% 5.00% to 5.00% -10.00% to -9.54% DECEMBER 31, 2001 Units 26,017 164,326 21,022,339 Unit Fair Value, Lowest to Highest (1) $6.15 to $6.15 $5.43 to $5.43 $8.94 to $9.06 Net Assets (In Thousands) $160 $892 $189,787 Investment Income Ratio to Net Assets (2) 0.00% 3.88% 4.32% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 0.89% to 1.40% Total Return, Lowest to Highest (4) -11.93% to -11.93% -11.93% to -11.93% -6.25% to -4.95%
Fidelity -------------------------------------- Growth Contrafund Portfolio Portfolio ------------------ ------------------ DECEMBER 31, 2005 Units 18,327,783 18,306,992 Unit Fair Value, Lowest to Highest (1) $12.65 to $12.57 $9.69 to $17.19 Net Assets (In Thousands) $231,031 $315,981 Investment Income Ratio to Net Assets (2) 0.51% 0.29% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 0.89% to 1.40% Total Return, Lowest to Highest (4) 4.86% to 4.33% 15.90% to 15.32% DECEMBER 31, 2004 Units 20,811,605 18,632,563 Unit Fair Value, Lowest to Highest (1) $12.06 to $12.05 $8.36 to $14.91 Net Assets (In Thousands) $251,302 $278,739 Investment Income Ratio to Net Assets (2) 0.27% 0.33% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 0.89% to 1.40% Total Return, Lowest to Highest (4) 2.46% to 1.94% 14.45% to 13.87% DECEMBER 31, 2003 Units 22,744,437 19,001,001 Unit Fair Value, Lowest to Highest (1) $11.77 to $11.82 $7.31 to $13.09 Net Assets (In Thousands) $269,260 $249,506 Investment Income Ratio to Net Assets (2) 0.27% 0.46% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 0.89% to 1.40% Total Return, Lowest to Highest (4) 31.67% to 31.00% 27.33% to 26.68% DECEMBER 31, 2002 Units 24,650,187 19,592,405 Unit Fair Value, Lowest to Highest (1) $8.94 to $9.05 $5.74 to $10.37 Net Assets (In Thousands) $222,487 $200,853 Investment Income Ratio to Net Assets (2) 0.25% 0.82% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 0.89% to 1.40% Total Return, Lowest to Highest (4) -31.08% to -30.73% -10.61% to -10.15% DECEMBER 31, 2001 Units 25,015,822 19,181,427 Unit Fair Value, Lowest to Highest (1) $12.91 to $13.12 $6.39 to $11.59 Net Assets (In Thousands) $327,268 $219,635 Investment Income Ratio to Net Assets (2) 0.08% 0.78% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 0.89% to 1.40% Total Return, Lowest to Highest (4) -18.67% to -15.40% -15.42% to -7.08%
(Continued) 126 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Fidelity ------------------------------------------------------------------------ Money Overseas Equity-Income Index 500 Market Portfolio Portfolio Portfolio Portfolio ------------------ ------------------ ------------------ --------------- DECEMBER 31, 2005 Units 1,115,424 1,681,844 9,738,122 4,560,029 Unit Fair Value, Lowest to Highest (1) $9.36 to $10.71 $12.25 to $12.25 $14.55 to $14.28 $7.25 to $6.85 Net Assets (In Thousands) $11,307 $20,595 $139,624 $31,497 Investment Income Ratio to Net Assets (2) 0.67% 1.71% 1.84% 3.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.15% to 1.40% 1.40% to 1.40% 0.89% to 1.40% 0.89% to 1.40% Total Return, Lowest to Highest (4) 17.69% to 17.40% 4.40% to 4.40% 3.90% to 3.37% 2.12% to 1.61% DECEMBER 31, 2004 Units 1,305,755 2,015,346 11,319,391 4,311,139 Unit Fair Value, Lowest to Highest (1) $7.95 to $9.12 $11.73 to $11.73 $14.01 to $13.81 $7.10 to $6.74 Net Assets (In Thousands) $11,247 $23,639 $156,922 $29,289 Investment Income Ratio to Net Assets (2) 1.22% 1.61% 1.34% 1.21% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.15% to 1.40% 1.40% to 1.40% 0.89% to 1.40% 0.89% to 1.40% Total Return, Lowest to Highest (4) 12.33% to 12.05% 9.98% to 9.98% 9.63% to 9.07% 0.30% to -0.21% DECEMBER 31, 2003 Units 1,619,585 2,369,870 12,981,916 3,919,391 Unit Fair Value, Lowest to Highest (1) $7.08 to $8.14 $10.67 to $10.67 $12.78 to $12.66 $7.08 to $6.76 Net Assets (In Thousands) $12,334 $25,276 $164,912 $26,673 Investment Income Ratio to Net Assets (2) 0.87% 1.89% 1.67% 1.08% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.15% to 1.40% 1.40% to 1.40% 0.89% to 1.40% 0.89% to 1.40% Total Return, Lowest to Highest (4) 41.73% to 41.38% 28.52% to 28.52% 27.27% to 26.63% 0.10% to -0.40% DECEMBER 31, 2002 Units 1,914,131 2,727,566 20,168,826 4,525,655 Unit Fair Value, Lowest to Highest (1) $5.00 to $5.78 $8.30 to $8.30 $10.00 to $10.06 $6.78 to $7.07 Net Assets (In Thousands) $10,274 $22,635 $202,227 $30,913 Investment Income Ratio to Net Assets (2) 0.84% 1.84% 1.31% 1.70% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.15% to 1.40% 1.40% to 1.40% 0.89% to 1.40% 0.89% to 1.40% Total Return, Lowest to Highest (4) -21.39% to -21.19% -18.10% to -18.10% -23.33% to -22.94% 0.28% to 0.79% DECEMBER 31, 2001 Units 2,228,327 3,242,873 19,727,766 5,072,413 Unit Fair Value, Lowest to Highest (1) $6.34 to $7.35 $10.13 to $10.13 $13.03 to $13.12 $6.76 to $7.02 Net Assets (In Thousands) $15,199 $32,860 $257,801 $34,519 Investment Income Ratio to Net Assets (2) 5.65% 5.65% 1.19% 4.05% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.15% to 1.40% 1.40% to 1.40% 0.89% to 1.40% 0.89% to 1.40% Total Return, Lowest to Highest (4) -22.53% to -21.26% -0.96% to -0.96% -13.79% to -11.98% 2.59% to 7.92%
---------------------------------- Mid-Cap Contrafund Portfolio B Portfolio B ---------------- ---------------- DECEMBER 31, 2005 Units - 2,419 Unit Fair Value, Lowest to Highest (1) $32.45 to $31.55 $37.22 to $33.90 Net Assets (In Thousands) $- $87 Investment Income Ratio to Net Assets (2) 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.50% to 1.90% 1.40% to 2.25% Total Return, Lowest to Highest (4) 7.04% to 6.98% 4.97% to 4.82% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 127 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Scudder I MetLife ------------------ -------------------------------------------------------- FI FI Russell 2000 International International Mid-Cap Index Stock Portfolio Portfolio Portfolio Portfolio ------------------ ------------------ ------------------ ------------------ DECEMBER 31, 2005 Units 3,098,930 579,118 508,847 140,779 Unit Fair Value, Lowest to Highest (1) $8.95 to $8.91 $20.09 to $2.34 $16.85 to $6.17 $4.85 to $4.85 Net Assets (In Thousands) $27,741 $4,104 $7,124 $683 Investment Income Ratio to Net Assets (2) 1.56% 0.00% 0.67% 0.67% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.35% to 1.40% 0.89% to 1.40% 0.89% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 14.61% to 14.56% 6.13% to 5.43% 3.58% to 3.05% 16.37% to 16.37% DECEMBER 31, 2004 Units 3,067,352 614,837 476,600 120,078 Unit Fair Value, Lowest to Highest (1) $7.81 to $7.78 $18.93 to $2.22 $16.27 to $5.98 $4.17 to $4.17 Net Assets (In Thousands) $23,957 $3,335 $6,151 $501 Investment Income Ratio to Net Assets (2) 1.27% 0.76% 0.33% 1.24% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.35% to 1.40% 0.89% to 1.40% 0.89% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 14.96% to 14.91% 17.19% to 15.56% 16.72% to 16.12% 16.55% to 16.55% DECEMBER 31, 2003 Units 3,132,281 472,999 229,747 102,075 Unit Fair Value, Lowest to Highest (1) $6.79 to $6.77 $1.92 to $1.92 $13.94 to $5.15 $3.58 to $3.58 Net Assets (In Thousands) $21,280 $909 $2,228 $365 Investment Income Ratio to Net Assets (2) 0.76% 0.00% 0.26% 0.63% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.35% to 1.40% 1.40% to 1.40% 0.89% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 25.98% to 26.04% 32.71% to 32.71% 44.77% to 44.04% 26.26% to 26.26% DECEMBER 31, 2002 Units 2,973,433 486,103 105,781 97,675 Unit Fair Value, Lowest to Highest (1) $5.38 to $5.39 $1.45 to $1.45 $3.58 to $3.58 $2.83 to $2.83 Net Assets (In Thousands) $16,027 $704 $378 $277 Investment Income Ratio to Net Assets (2) 0.84% 0.00% 0.61% 0.88% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.35% to 1.40% 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) -19.50% to -19.46% -29.98% to -29.98% -21.57% to -21.57% -18.64% to -18.64% DECEMBER 31, 2001 Units 2,560,863 501,084 89,476 94,368 Unit Fair Value, Lowest to Highest (1) $6.68 to $6.69 $2.07 to $2.07 $4.56 to $4.56 $3.48 to $3.48 Net Assets (In Thousands) $17,139 $1,036 $408 $329 Investment Income Ratio to Net Assets (2) 0.41% 0.00% 0.26% 0.28% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.35% to 1.40% 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) -8.07% to -3.38% -38.21% to -38.21% -0.55% to -0.55% -21.72% to -21.72%
------------------------------------ FI International Met/Putnam Stock Voyager Portfolio B Portfolio A ---------------- ------------------ DECEMBER 31, 2005 Units - Unit Fair Value, Lowest to Highest (1) $15.43 to $14.55 Net Assets (In Thousands) $- Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.50% to 1.90% Total Return, Lowest to Highest (4) 8.29% to 8.23% DECEMBER 31, 2004 Units 183,002 Unit Fair Value, Lowest to Highest (1) $2.18 to $2.18 Net Assets (In Thousands) $398 Investment Income Ratio to Net Assets (2) 0.11% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% Total Return, Lowest to Highest (4) 3.52% to 3.52% DECEMBER 31, 2003 Units 199,325 Unit Fair Value, Lowest to Highest (1) $2.10 to $2.10 Net Assets (In Thousands) $419 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% Total Return, Lowest to Highest (4) 24.16% to 24.16% DECEMBER 31, 2002 Units 192,732 Unit Fair Value, Lowest to Highest (1) $1.69 to $1.69 Net Assets (In Thousands) $326 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% Total Return, Lowest to Highest (4) -29.90% to -29.90% DECEMBER 31, 2001 Units 190,680 Unit Fair Value, Lowest to Highest (1) $2.42 to $2.42 Net Assets (In Thousands) $461 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% Total Return, Lowest to Highest (4) -31.81% to -31.81%
(Continued) 128 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
MetLife -------------------------------------------------------------------------------------- BlackRock BlackRock BlackRock Stock Stock Legacy Strategic Bond Index Index Large-Cap Value Income Portfolio Portfolio B Growth Class A Class A Class A ---------------- ------------------ ---------------- ---------------- ---------------- DECEMBER 31, 2005 Units 1,986,282 19,154,664 16,067 598,942 69,533 Unit Fair Value, Lowest to Highest (1) $43.18 to $39.91 $11.75 to $11.41 $29.03 to $27.57 $19.32 to $18.84 $53.50 to $47.73 Net Assets (In Thousands) $79,692 $221,998 $443 $11,283 $3,364 Investment Income Ratio to Net Assets (2) 1.60% 1.38% 0.38% 0.00% 3.39% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 1.30% to 2.35% 0.89% to 1.35% 0.89% to 1.35% 0.89% to 1.40% Total Return, Lowest to Highest (4) 3.71% to 3.22% 3.03% to 1.96% 6.06% to 5.57% 3.23% to 2.76% 1.51% to 0.99% DECEMBER 31, 2004 Units 2,015,215 18,756,651 11,623 500,254 41,397 Unit Fair Value, Lowest to Highest (1) $41.64 to $38.66 $11.40 to $11.19 $27.37 to $26.12 $18.71 to $18.33 $52.70 to $47.26 Net Assets (In Thousands) $78,250 $211,686 $304 $9,171 $1,979 Investment Income Ratio to Net Assets (2) 0.87% 0.71% 0.00% 0.00% 3.19% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 1.30% to 2.35% 0.89% to 1.35% 0.89% to 1.35% 0.89% to 1.40% Total Return, Lowest to Highest (4) 9.55% to 9.05% 8.85% to 7.71% 7.85% to 7.35% 14.32% to 13.79% 3.50% to 2.98% DECEMBER 31, 2003 Units 1,956,414 13,065,732 8,406 170,814 14,179 Unit Fair Value, Lowest to Highest (1) $38.01 to $35.45 $10.48 to $10.39 $24.55 to $24.33 $16.37 to $16.11 $50.92 to $46.37 Net Assets (In Thousands) $69,595 $135,881 $205 $2,752 $658 Investment Income Ratio to Net Assets (2) 0.00% 1.26% 0.00% 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.40% 1.30% to 2.35% 1.25% to 1.35% 0.89% to 1.35% 0.89% to 1.35% Total Return, Lowest to Highest (4) 27.07% to 26.44% 26.22% to 20.39% 33.47% to 33.34% 48.81% to 48.13% 4.92% to 4.43% DECEMBER 31, 2002 Units 5,021,812 Unit Fair Value, Lowest to Highest (1) $8.20 to $8.30 Net Assets (In Thousands) $41,490 Investment Income Ratio to Net Assets (2) 0.56% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% Total Return, Lowest to Highest (4) -24.24% to -23.52% DECEMBER 31, 2001 Units 166,446 Unit Fair Value, Lowest to Highest (1) $10.83 to $10.85 Net Assets (In Thousands) $1,805 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% Total Return, Lowest to Highest (4) -15.49% to -14.68%
----------------- BlackRock Large-Cap Value Class A ---------------- DECEMBER 31, 2005 Units 77,212 Unit Fair Value, Lowest to Highest (1) $12.63 to $12.42 Net Assets (In Thousands) $959 Investment Income Ratio to Net Assets (2) 0.83% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.35% Total Return, Lowest to Highest (4) 5.05% to 4.57% DECEMBER 31, 2004 Units 51,124 Unit Fair Value, Lowest to Highest (1) $12.03 to $11.88 Net Assets (In Thousands) $607 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.35% Total Return, Lowest to Highest (4) 12.40% to 11.88% DECEMBER 31, 2003 Units 19,981 Unit Fair Value, Lowest to Highest (1) $10.64 to $10.62 Net Assets (In Thousands) $212 Investment Income Ratio to Net Assets (2) 1.28% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.25% to 1.35% Total Return, Lowest to Highest (4) 33.99% to 33.86% DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 129 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
MetLife ------------------------------------------------------------------------------------ Lehman Brothers Harris Morgan MFS Aggregate Oakmark Stanley Total Bond Index FI Mid-Cap Large-Cap Value EAFE Index Return Class A Opportunities Class A Class A Class A ---------------- ---------------- ---------------- ---------------- ---------------- DECEMBER 31, 2005 Units 300,648 423,013 636,754 183,329 Unit Fair Value, Lowest to Highest (1) $13.63 to $13.19 $13.39 to $12.96 $13.19 to $12.76 $47.15 to $42.86 Net Assets (In Thousands) $3,972 $5,484 $8,128 $7,938 Investment Income Ratio to Net Assets (2) 3.46% 0.68% 1.48% 1.60% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.35% 0.89% to 1.35% 0.89% to 1.35% 0.89% to 1.40% Total Return, Lowest to Highest (4) 1.16% to 0.70% -2.25% to -2.70% 12.24% to 11.73% 2.21% to 1.69% DECEMBER 31, 2004 Units 175,612 333,624 350,801 97,363 Unit Fair Value, Lowest to Highest (1) $13.48 to $13.10 $13.70 to $13.32 $11.75 to $11.42 $46.13 to $42.15 Net Assets (In Thousands) $2,301 $4,444 $4,007 $4,142 Investment Income Ratio to Net Assets (2) 2.68% 0.45% 0.56% 2.14% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.35% 0.89% to 1.35% 0.89% to 1.35% 0.89% to 1.40% Total Return, Lowest to Highest (4) 3.17% to 2.80% 10.43% to 10.03% 18.58% to 18.04% 10.27% to 9.70% DECEMBER 31, 2003 Units 55,030 71,708 144,358 110,435 19,756 Unit Fair Value, Lowest to Highest (1) $12.82 to $12.76 $11.50 to $11.41 $12.18 to $12.12 $9.91 to $9.67 $41.84 to $38.75 Net Assets (In Thousands) $702 $819 $1,749 $1,069 $766 Investment Income Ratio to Net Assets (2) 0.00% 0.00% 0.00% 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.25% to 1.35% 0.89% to 1.35% 1.25% to 1.35% 0.89% to 1.35% 0.89% to 1.35% Total Return, Lowest to Highest (4) 2.35% to 2.24% 41.26% to 40.62% 23.94% to 23.81% 36.42% to 35.79% 15.97% to 15.43% DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
----------------- Mid-Cap Stock Index Class A ---------------- DECEMBER 31, 2005 Units 538,128 Unit Fair Value, Lowest to Highest (1) $15.04 to $14.67 Net Assets (In Thousands) $7,899 Investment Income Ratio to Net Assets (2) 0.64% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.35% Total Return, Lowest to Highest (4) 11.28% to 10.77% DECEMBER 31, 2004 Units 364,852 Unit Fair Value, Lowest to Highest (1) $13.52 to $13.24 Net Assets (In Thousands) $4,833 Investment Income Ratio to Net Assets (2) 0.39% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.35% Total Return, Lowest to Highest (4) 15.02% to 14.49% DECEMBER 31, 2003 Units 128,276 Unit Fair Value, Lowest to Highest (1) $11.75 to $11.57 Net Assets (In Thousands) $1,484 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.35% Total Return, Lowest to Highest (4) 33.77% to 33.16% DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 130 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
MetLife ----------------------------------------------------------------------- Davis Davis Harris Harris Venture Venture Oakmark Oakmark Value Value Focused Value Focused Value Fund Fund E Fund A Fund B ---------------- ------------------ ---------------- ------------------ DECEMBER 31, 2005 Units 177,847 44,430,046 579,120 23,363,834 Unit Fair Value, Lowest to Highest (1) $36.27 to $34.46 $13.00 to $12.62 $39.25 to $37.02 $16.43 to $15.94 Net Assets (In Thousands) $6,134 $568,639 $21,448 $377,618 Investment Income Ratio to Net Assets (2) 0.56% 0.51% 0.04% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.35% 1.30% to 2.35% 0.89% to 1.35% 1.30% to 2.35% Total Return, Lowest to Highest (4) 9.32% to 8.82% 8.72% to 7.59% 9.01% to 8.51% 8.29% to 7.17% DECEMBER 31, 2004 Units 81,498 53,971,408 360,352 27,549,500 Unit Fair Value, Lowest to Highest (1) $33.18 to $31.66 $11.96 to $11.73 $36.00 to $34.12 $15.17 to $14.88 Net Assets (In Thousands) $2,581 $637,147 $12,299 $412,524 Investment Income Ratio to Net Assets (2) 0.54% 0.45% 0.04% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.35% 1.30% to 2.35% 0.89% to 1.35% 1.30% to 2.35% Total Return, Lowest to Highest (4) 11.37% to 10.86% 10.69% to 9.53% 8.96% to 8.46% 8.23% to 7.10% DECEMBER 31, 2003 Units 27,371 39,430,080 115,746 29,524,602 Unit Fair Value, Lowest to Highest (1) $29.79 to $28.56 $10.80 to $10.71 $33.04 to $31.46 $14.02 to $13.89 Net Assets (In Thousands) $782 $421,977 $3,642 $409,942 Investment Income Ratio to Net Assets (2) 0.00% 0.27% 0.00% 0.05% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.35% 1.30% to 2.35% 0.89% to 1.35% 1.30% to 2.35% Total Return, Lowest to Highest (4) 29.71% to 29.12% 29.05% to 25.13% 31.48% to 30.88% 30.62% to 26.99% DECEMBER 31, 2002 Units 15,486,565 10,685,241 Unit Fair Value, Lowest to Highest (1) $8.26 to $8.37 $10.59 to $10.73 Net Assets (In Thousands) $128,845 $113,939 Investment Income Ratio to Net Assets (2) 0.65% 0.12% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% 1.30% to 2.25% Total Return, Lowest to Highest (4) -18.41% to -17.63% -10.33% to -11.09% DECEMBER 31, 2001 Units 2,649,034 1,863,945 Unit Fair Value, Lowest to Highest (1) $10.11 to $10.16 $11.89 to $11.96 Net Assets (In Thousands) $26,848 $22,223 Investment Income Ratio to Net Assets (2) 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% 1.30% to 2.25% Total Return, Lowest to Highest (4) -13.19% to -12.36% 24.59% to 25.79%
---------------------------------- Loomis Sayles Jennison High Yield Growth Bond Portfolio A ---------------- ---------------- DECEMBER 31, 2005 Units 152,268 Unit Fair Value, Lowest to Highest (1) $2.42 to $2.42 Net Assets (In Thousands) $368 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% Total Return, Lowest to Highest (4) 20.37% to 20.37% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units 17,973 Unit Fair Value, Lowest to Highest (1) $4.66 to $4.66 Net Assets (In Thousands) $84 Investment Income Ratio to Net Assets (2) 13.15% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% Total Return, Lowest to Highest (4) -2.68% to -2.68%
(Continued) 131 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
MetLife ------------------------------------------------------------------------------------- BlackRock BlackRock T. Rowe Price Salomon Jennison Money Money Small-Cap Brothers Growth Market Market Growth U.S. Government Portfolio B Portfolio A Portfolio B Class A Class B ------------------ ---------------- --------------- ---------------- ---------------- DECEMBER 31, 2005 Units 15,807,330 1,819 12,429,599 63,311 391,235 Unit Fair Value, Lowest to Highest (1) $11.78 to $11.44 $23.43 to $23.43 $10.12 to $9.82 $16.45 to $14.64 $15.96 to $14.20 Net Assets (In Thousands) $183,756 $43 $123,743 $933 $6,041 Investment Income Ratio to Net Assets (2) 0.00% 2.90% 2.01% 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 1.40% to 1.40% 1.30% to 2.35% 0.89% to 1.40% 1.30% to 2.35% Total Return, Lowest to Highest (4) 12.07% to 10.91% 1.47% to 1.47% 1.12% to 0.42% 10.19% to 9.47% -0.04% to -0.73% DECEMBER 31, 2004 Units 22,012,332 1,856 31,008 Unit Fair Value, Lowest to Highest (1) $10.51 to $10.31 $23.09 to $23.09 $14.93 to $13.38 Net Assets (In Thousands) $229,059 $43 $419 Investment Income Ratio to Net Assets (2) 0.01% 0.70% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% 1.40% to 1.40% 0.89% to 1.40% Total Return, Lowest to Highest (4) 7.53% to 6.40% -0.42% to -0.42% 11.08% to 9.54% DECEMBER 31, 2003 Units 18,943,891 Unit Fair Value, Lowest to Highest (1) $9.77 to $9.69 Net Assets (In Thousands) $184,023 Investment Income Ratio to Net Assets (2) 0.14% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.35% Total Return, Lowest to Highest (4) 28.02% to 20.13% DECEMBER 31, 2002 Units 5,519,181 Unit Fair Value, Lowest to Highest (1) $7.58 to $7.63 Net Assets (In Thousands) $42,026 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.30% to 2.25% Total Return, Lowest to Highest (4) -24.15% to -23.67% DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
----------------- Oppenheimer Global Equity Portfolio B ---------------- DECEMBER 31, 2005 Units - Unit Fair Value, Lowest to Highest (1) $16.68 to $16.10 Net Assets (In Thousands) $- Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.50% to 1.90% Total Return, Lowest to Highest (4) 6.70% to 6.63% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 132 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Van Kampen ----------------------------------------------------------------------- Emerging Emerging Growth & Growth Growth Enterprise Income Fund Fund B Fund Fund ------------------ -------------- ------------------ ------------------ DECEMBER 31, 2005 Units 88,859 - 43,297 43,633 Unit Fair Value, Lowest to Highest (1) $4.53 to $4.53 $4.81 to $4.61 $3.70 to $3.70 $6.26 to $6.26 Net Assets (In Thousands) $402 $- $160 $273 Investment Income Ratio to Net Assets (2) 0.27% 0.00% 0.71% 1.17% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.50% to 2.30% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 6.44% to 6.44% 4.81% to 4.67% 6.65% to 6.65% 8.46% to 8.46% DECEMBER 31, 2004 Units 108,230 46,381 54,075 Unit Fair Value, Lowest to Highest (1) $4.25 to $4.25 $3.47 to $3.47 $5.77 to $5.77 Net Assets (In Thousands) $460 $161 $312 Investment Income Ratio to Net Assets (2) 0.00% 0.40% 1.01% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 5.54% to 5.54% 2.60% to 2.60% 12.78% to 12.78% DECEMBER 31, 2003 Units 131,352 50,200 61,622 Unit Fair Value, Lowest to Highest (1) $4.03 to $4.03 $3.38 to $3.38 $5.11 to $5.11 Net Assets (In Thousands) $529 $170 $315 Investment Income Ratio to Net Assets (2) 0.00% 0.52% 0.87% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 25.58% to 25.58% 24.13% to 24.13% 26.26% to 26.26% DECEMBER 31, 2002 Units 142,960 56,973 54,474 Unit Fair Value, Lowest to Highest (1) $3.21 to $3.21 $2.73 to $2.73 $4.05 to $4.05 Net Assets (In Thousands) $459 $155 $221 Investment Income Ratio to Net Assets (2) 0.37% 0.50% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) -33.43% to -33.43% -30.31% to -30.31% -15.69% to -15.69% DECEMBER 31, 2001 Units 174,665 68,149 60,282 Unit Fair Value, Lowest to Highest (1) $4.82 to $4.82 $3.91 to $3.91 $4.73 to $4.73 Net Assets (In Thousands) $842 $267 $285 Investment Income Ratio to Net Assets (2) 0.00% 0.18% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 7.33% to 7.33% -7.70% to -7.70% -10.30% to -10.30%
---------------------------------- Growth & Income Comstock Fund B Fund B ---------------- ---------------- DECEMBER 31, 2005 Units - - Unit Fair Value, Lowest to Highest (1) $12.42 to $12.16 $13.54 to $13.26 Net Assets (In Thousands) $- $- Investment Income Ratio to Net Assets (2) 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.50% to 1.90% 1.50% to 1.90% Total Return, Lowest to Highest (4) 2.41% to 2.34% 4.67% to 4.60% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 133 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Federated ------------------------------------------------------------------------- Equity High Income Growth Income Bond American Leaders Strategic Fund Fund Fund II Fund ------------------ ---------------- ------------------ ------------------ DECEMBER 31, 2005 Units 18,507 22,143 35,001 Unit Fair Value, Lowest to Highest (1) $4.66 to $4.66 $5.99 to $5.99 $5.39 to $5.39 Net Assets (In Thousands) $86 $133 $189 Investment Income Ratio to Net Assets (2) 2.24% 8.76% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 1.90% to 1.90% 1.23% to 1.23% 11.14% to 11.14% DECEMBER 31, 2004 Units 20,644 31,469 38,902 Unit Fair Value, Lowest to Highest (1) $4.57 to $4.57 $5.92 to $5.92 $4.85 to $4.85 Net Assets (In Thousands) $94 $186 $189 Investment Income Ratio to Net Assets (2) 3.43% 8.60% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 11.27% to 11.27% 8.92% to 8.92% 13.82% to 13.82% DECEMBER 31, 2003 Units 81,743 48,364 140,461 47,399 Unit Fair Value, Lowest to Highest (1) $4.11 to $4.11 $5.43 to $5.43 $4.61 to $4.61 $4.26 to $4.26 Net Assets (In Thousands) $336 $263 $647 $202 Investment Income Ratio to Net Assets (2) 1.93% 7.69% 1.69% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) 25.51% to 25.51% 20.52% to 20.52% 25.92% to 25.92% 38.13% to 38.13% DECEMBER 31, 2002 Units 91,827 54,149 162,190 51,227 Unit Fair Value, Lowest to Highest (1) $3.28 to $3.28 $4.51 to $4.51 $3.66 to $3.66 $3.09 to $3.09 Net Assets (In Thousands) $301 $244 $594 $158 Investment Income Ratio to Net Assets (2) 2.13% 10.55% 1.26% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) -21.84% to -21.84% -0.02% to -0.02% -21.33% to -21.33% -27.37% to -27.37% DECEMBER 31, 2001 Units 116,932 60,212 249,732 55,308 Unit Fair Value, Lowest to Highest (1) $4.19 to $4.19 $4.51 to $4.51 $4.65 to $4.65 $4.25 to $4.25 Net Assets (In Thousands) $490 $271 $1,162 $235 Investment Income Ratio to Net Assets (2) 1.76% 11.35% 1.29% 1.75% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% 1.40% to 1.40% Total Return, Lowest to Highest (4) -11.74% to -11.74% -0.75% to -0.75% -6.74% to -6.74% -20.15% to -20.15%
Neuberger --------------------------------- Genesis Trust Class A Partners ---------------- ---------------- DECEMBER 31, 2005 Units 1,183 Unit Fair Value, Lowest to Highest (1) $11.79 to $11.79 Net Assets (In Thousands) $14 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 0.89% Total Return, Lowest to Highest (4) 15.27% to 15.27% DECEMBER 31, 2004 Units 1,371 Unit Fair Value, Lowest to Highest (1) $10.23 to $10.23 Net Assets (In Thousands) $14 Investment Income Ratio to Net Assets (2) 0.15% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 0.89% Total Return, Lowest to Highest (4) 17.62% to 17.62% DECEMBER 31, 2003 Units 2,060 Unit Fair Value, Lowest to Highest (1) $8.70 to $8.70 Net Assets (In Thousands) $18 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 0.89% Total Return, Lowest to Highest (4) 30.49% to 30.49% DECEMBER 31, 2002 Units 479,091 Unit Fair Value, Lowest to Highest (1) $6.66 to $6.66 Net Assets (In Thousands) $3,193 Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 0.89% Total Return, Lowest to Highest (4) -3.85% to -3.85% DECEMBER 31, 2001 Units 478,656 295,027 Unit Fair Value, Lowest to Highest (1) $6.93 to $6.93 $5.36 to $5.36 Net Assets (In Thousands) $3,318 $1,583 Investment Income Ratio to Net Assets (2) 0.00% 0.19% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 0.89% 0.89% to 0.89% Total Return, Lowest to Highest (4) 1.24% to 1.24% -2.45% to -2.45%
(Continued) 134 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Alger T. Rowe ------------------ ------------------------------------------------------ American Small Capitalization Growth International Prime Reserve Fund Fund Fund Fund ------------------ ------------------ ------------------ ---------------- DECEMBER 31, 2005 Units 8,307,133 142,212 102,719 82,793 Unit Fair Value, Lowest to Highest (1) $8.11 to $8.05 $71.72 to $71.72 $11.68 to $11.68 $16.76 to $16.76 Net Assets (In Thousands) $67,142 $10,199 $1,200 $1,388 Investment Income Ratio to Net Assets (2) 0.00% 0.07% 1.45% 2.70% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.25% to 1.40% 0.89% to 0.89% 0.89% to 0.89% 0.89% to 0.89% Total Return, Lowest to Highest (4) 15.43% to 15.26% 5.62% to 5.62% 15.24% to 15.24% 1.81% to 1.81% DECEMBER 31, 2004 Units 9,017,916 162,635 107,931 69,819 Unit Fair Value, Lowest to Highest (1) $7.03 to $6.98 $67.90 to $67.90 $10.13 to $10.13 $16.46 to $16.46 Net Assets (In Thousands) $63,202 $11,043 $1,094 $1,149 Investment Income Ratio to Net Assets (2) 0.00% 0.59% 1.20% 0.81% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.25% to 1.40% 0.89% to 1.25% 0.89% to 0.89% 0.89% to 0.89% Total Return, Lowest to Highest (4) 15.12% to 14.95% 9.26% to 9.26% 12.88% to 12.88% -0.10% to -0.10% DECEMBER 31, 2003 Units 9,758,550 171,175 117,827 87,209 Unit Fair Value, Lowest to Highest (1) $6.10 to $6.08 $62.15 to $62.15 $8.98 to $8.98 $16.48 to $16.48 Net Assets (In Thousands) $59,470 $10,638 $1,058 $1,437 Investment Income Ratio to Net Assets (2) 0.00% 0.16% 0.74% 0.69% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.25% to 1.40% 0.89% to 0.89% 0.89% to 0.89% 0.89% to 0.89% Total Return, Lowest to Highest (4) 40.58% to 40.37% 30.06% to 30.06% 30.12% to 30.12% -0.30% to -0.30% DECEMBER 31, 2002 Units 9,818,127 585,362 634,123 111,278 Unit Fair Value, Lowest to Highest (1) $4.33 to $4.34 $47.78 to $47.78 $6.90 to $6.90 $16.52 to $16.52 Net Assets (In Thousands) $42,604 $27,969 $4,375 $1,839 Investment Income Ratio to Net Assets (2) 0.00% 0.18% 1.07% 1.39% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.25% to 1.40% 0.89% to 0.89% 0.89% to 0.89% 0.89% to 0.89% Total Return, Lowest to Highest (4) -27.25% to -27.21% -23.68% to -23.68% -18.91% to -18.91% 5.00% to 5.00% DECEMBER 31, 2001 Units 9,374,497 656,181 664,996 91,744 Unit Fair Value, Lowest to Highest (1) $5.95 to $5.96 $62.61 to $62.61 $8.51 to $8.51 $16.44 to $16.44 Net Assets (In Thousands) $55,888 $41,080 $5,658 $1,508 Investment Income Ratio to Net Assets (2) 0.05% 0.19% 1.55% 3.83% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.35% to 1.40% 0.89% to 0.89% 0.89% to 0.89% 0.89% to 0.89% Total Return, Lowest to Highest (4) -23.58% to -23.56% -2.53% to -2.53% -22.60% to -22.60% 3.02% to 3.02%
Janus American ------------------ ---------------- Aspen Worldwide Global Growth Small-Cap Class A Fund ------------------ ---------------- DECEMBER 31, 2005 Units 1,375 470,780 Unit Fair Value, Lowest to Highest (1) $6.60 to $6.60 $25.09 to $24.22 Net Assets (In Thousands) $9 $11,409 Investment Income Ratio to Net Assets (2) 1.36% 0.90% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 0.89% 0.89% to 1.35% Total Return, Lowest to Highest (4) 4.93% to 4.93% 24.24% to 23.68% DECEMBER 31, 2004 Units 1,477 282,816 Unit Fair Value, Lowest to Highest (1) $6.29 to $6.29 $20.19 to $19.58 Net Assets (In Thousands) $9 $5,541 Investment Income Ratio to Net Assets (2) 1.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 0.89% 0.89% to 1.35% Total Return, Lowest to Highest (4) 3.85% to 3.85% 19.81% to 19.26% DECEMBER 31, 2003 Units 1,585 77,922 Unit Fair Value, Lowest to Highest (1) $6.06 to $6.06 $16.85 to $16.42 Net Assets (In Thousands) $10 $1,280 Investment Income Ratio to Net Assets (2) 0.01% 0.07% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 0.89% 0.89% to 1.35% Total Return, Lowest to Highest (4) 22.89% to 22.89% 52.17% to 51.47% DECEMBER 31, 2002 Units 1,049,176 Unit Fair Value, Lowest to Highest (1) $4.93 to $4.93 Net Assets (In Thousands) $5,172 Investment Income Ratio to Net Assets (2) 0.86% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 0.89% Total Return, Lowest to Highest (4) -26.16% to -26.16% DECEMBER 31, 2001 Units 1,246,925 Unit Fair Value, Lowest to Highest (1) $6.68 to $6.68 Net Assets (In Thousands) $8,326 Investment Income Ratio to Net Assets (2) 0.48% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 0.89% Total Return, Lowest to Highest (4) -23.37% to -23.37%
(Continued) 135 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
American Alliance ----------------------------------------------------- ---------------- Bernstein Growth & Global Large-Cap Growth Income Growth Growth Fund Fund Fund B Fund B ------------------ ----------------- ---------------- ---------------- DECEMBER 31, 2005 Units 208,063 199,680 22,386 - Unit Fair Value, Lowest to Highest (1) $164.02 to $120.44 $114.07 to $83.76 $21.81 to $20.17 $34.49 to $32.67 Net Assets (In Thousands) $30,740 $20,563 $473 $- Investment Income Ratio to Net Assets (2) 0.78% 1.49% 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 2.30% 0.89% to 2.30% 1.40% to 2.30% 1.50% to 1.90% Total Return, Lowest to Highest (4) 15.16% to 6.63% 4.90% to 4.51% 7.25% to 7.09% 5.69% to 5.62% DECEMBER 31, 2004 Units 132,705 137,919 Unit Fair Value, Lowest to Highest (1) $142.42 to $129.36 $108.74 to $98.77 Net Assets (In Thousands) $17,187 $13,637 Investment Income Ratio to Net Assets (2) 0.21% 1.15% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.35% 0.89% to 1.35% Total Return, Lowest to Highest (4) 11.50% to 10.98% 9.39% to 8.89% DECEMBER 31, 2003 Units 59,754 53,632 Unit Fair Value, Lowest to Highest (1) $127.74 to $116.56 $99.40 to $90.71 Net Assets (In Thousands) $6,971 $4,871 Investment Income Ratio to Net Assets (2) 0.16% 1.38% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 0.89% to 1.35% 0.89% to 1.35% Total Return, Lowest to Highest (4) 35.60% to 34.97% 31.25% to 30.65% DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
Templeton --------------------------------- Developing Foreign Markets Securities Fund B Fund B ---------------- ---------------- DECEMBER 31, 2005 Units 21,537 33,847 Unit Fair Value, Lowest to Highest (1) $16.02 to $9.76 $11.86 to $25.00 Net Assets (In Thousands) $230 $814 Investment Income Ratio to Net Assets (2) 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 2.30% 1.40% to 2.30% Total Return, Lowest to Highest (4) 10.86% to 10.70% 5.02% to 4.87% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 136 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Templeton Lazard -------------------------------------------------- ---------------- Growth Mutual Shares VIP Income Retirement Securities Securities Securities Small-Cap Fund B Fund B Fund B Portfolio ---------------- ---------------- ---------------- ---------------- DECEMBER 31, 2005 Units - 11,181 4,136 1,373 Unit Fair Value, Lowest to Highest (1) $15.57 to $15.41 $20.33 to $18.72 $38.78 to $33.58 $16.92 to $16.11 Net Assets (In Thousands) $- $218 $151 $23 Investment Income Ratio to Net Assets (2) 0.00% 0.00% 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.50% to 1.90% 1.40% to 2.30% 1.40% to 2.25% 1.70% to 2.30% Total Return, Lowest to Highest (4) 4.84% to 4.78% 4.79% to 4.64% 0.96% to 0.82% 3.93% to 3.83% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
Morgan Stanley --------------------------------- UIF Equity UIF U.S. and Income Real Estate Portfolio B Portfolio ---------------- ---------------- DECEMBER 31, 2005 Units - - Unit Fair Value, Lowest to Highest (1) $13.49 to $13.34 $22.20 to $21.80 Net Assets (In Thousands) $- $- Investment Income Ratio to Net Assets (2) 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.50% to 1.90% 1.50% to 1.90% Total Return, Lowest to Highest (4) 2.22% to 2.16% 7.59% to 7.52% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 137 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Pioneer Putnam Salomon Brothers ---------------- ---------------- -------------------------------------------------- VT VCT Small-Cap Variable High Variable VSF Investors Mid-Cap Value Yield Bond Small-Cap Fund Portfolio B Fund B Portfolio B Portfolio B Portfolio B ---------------- ---------------- ---------------- ---------------- ---------------- DECEMBER 31, 2005 Units - - 3,458 15,787 6,750 Unit Fair Value, Lowest to Highest (1) $28.83 to $27.60 $22.72 to $22.12 $15.33 to $14.31 $12.01 to $11.63 $14.62 to $13.62 Net Assets (In Thousands) $- $- $52 $187 $96 Investment Income Ratio to Net Assets (2) 0.00% 0.00% 6.03% 0.00% 1.12% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.50% to 1.90% 1.50% to 1.90% 1.40% to 2.30% 1.40% to 2.30% 1.40% to 2.30% Total Return, Lowest to Highest (4) 6.29% to 6.23% 4.02% to 3.95% 1.42% to 1.28% 5.49% to 5.33% 3.73% to 3.58% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
Smith Barney ---------------- Greenwich Street Appreciation Portfolio B ---------------- DECEMBER 31, 2005 Units 1,722 Unit Fair Value, Lowest to Highest (1) $28.31 to $24.91 Net Assets (In Thousands) $47 Investment Income Ratio to Net Assets (2) 0.48% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 2.30% Total Return, Lowest to Highest (4) 2.47% to 2.32% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 138 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Smith Barney ---------------------------------------------------------------------------------- Greenwich Multi-Discipline Multi-Discipline Multi-Discipline Equity Index Fundamental Balanced All Cap Large-Cap All Cap Fund Value Growth & Value Growth & Value Growth and Value Portfolio B Portfolio Portfolio Portfolio Portfolio -------------- ---------------- ---------------- ---------------- ---------------- DECEMBER 31, 2005 Units 2,224 1,160 2,660 2,136 9,633 Unit Fair Value, Lowest to Highest (1) $9.03 to $8.54 $30.92 to $27.73 $13.29 to $12.93 $14.62 to $14.20 $15.01 to $14.58 Net Assets (In Thousands) $20 $34 $35 $31 $143 Investment Income Ratio to Net Assets (2) 1.22% 0.96% 0.84% 0.63% 0.35% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 2.30% 1.40% to 2.30% 1.40% to 2.25% 1.40% to 2.30% 1.40% to 2.30% Total Return, Lowest to Highest (4) 3.83% to 3.68% 3.45% to 3.30% 2.77% to 2.63% 3.39% to 3.24% 3.55% to 3.40% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
----------------- Multi-Discipline Global All Cap Growth & Value Portfolio ---------------- DECEMBER 31, 2005 Units 10,041 Unit Fair Value, Lowest to Highest (1) $15.92 to $15.46 Net Assets (In Thousands) $159 Investment Income Ratio to Net Assets (2) 0.46% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 2.30% Total Return, Lowest to Highest (4) 3.94% to 3.79% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 139 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Smith Barney ---------------------------------------------------------------------------------- Allocation Allocation Allocation Select Select Select Capital and IS Dividend Balanced Growth High Growth Income Strategy Portfolio Portfolio Portfolio Portfolio Portfolio ---------------- ---------------- ---------------- ---------------- -------------- DECEMBER 31, 2005 Units - - - - 3,967 Unit Fair Value, Lowest to Highest (1) $14.89 to $14.37 $13.55 to $13.08 $14.08 to $13.59 $10.64 to $10.61 $8.25 to $7.85 Net Assets (In Thousands) $- $- $- $- $32 Investment Income Ratio to Net Assets (2) 0.00% 0.00% 0.00% 0.00% 1.35% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.50% to 1.90% 1.50% to 1.90% 1.50% to 1.90% 1.50% to 1.90% 1.50% to 2.30% Total Return, Lowest to Highest (4) 3.03% to 2.97% 3.93% to 3.86% 3.90% to 3.84% 1.71% to 1.65% 2.09% to 1.96% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
----------------- Premier Selections All Cap Growth Portfolio ---------------- DECEMBER 31, 2005 Units - Unit Fair Value, Lowest to Highest (1) $11.83 to $11.53 Net Assets (In Thousands) $- Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.50% to 1.90% Total Return, Lowest to Highest (4) 4.33% to 4.26% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 140 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Smith Barney Travelers Series Fund ------------------------------- -------------------------------------------------- Greenwich Salomon Brothers Smith Barney Smith Barney IS Growth Street Equity Adjustable Aggressive Large-Cap and Income Index Rate Income Growth Growth Portfolio Portfolio Portfolio Portfolio Portfolio -------------- ---------------- ---------------- ---------------- ---------------- DECEMBER 31, 2005 Units - - 351 15,934 15,016 Unit Fair Value, Lowest to Highest (1) $9.34 to $9.11 $25.69 to $25.69 $10.06 to $9.87 $12.75 to $12.34 $13.74 to $12.83 Net Assets (In Thousands) $- $- $4 $200 $201 Investment Income Ratio to Net Assets (2) 0.00% 0.00% 3.00% 0.00% 0.12% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.50% to 1.90% 2.90% to 2.90% 1.40% to 2.25% 1.40% to 2.30% 1.40% to 2.30% Total Return, Lowest to Highest (4) 4.47% to 4.41% 3.64% to 3.64% 0.42% to 0.29% 3.68% to 3.53% 4.33% to 4.17% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
----------------- Smith Barney Large-Cap Value Portfolio ---------------- DECEMBER 31, 2005 Units - Unit Fair Value, Lowest to Highest (1) $21.48 to $20.51 Net Assets (In Thousands) $- Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.50% to 1.90% Total Return, Lowest to Highest (4) 3.71% to 3.64% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 141 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Travelers Series Fund Travelers Series Trust --------------------------------- ---------------------------------------------------- Smith Barney Managed Smith Barney Social Janus Allocation Series Money Market Awareness Stock Appreciation Large-Cap Aggressive Portfolio Portfolio Portfolio Portfolio Portfolio ---------------- ---------------- ----------------- ---------------- ----------------- DECEMBER 31, 2005 Units 15,276 - 239 6,503 4,493 Unit Fair Value, Lowest to Highest (1) $12.94 to $11.66 $26.25 to $24.85 $119.00 to $97.10 $16.95 to $15.58 $11.14 to $11.08 Net Assets (In Thousands) $190 $- $26 $107 $50 Investment Income Ratio to Net Assets (2) 0.15% 0.00% 0.00% 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 2.30% 1.50% to 1.90% 1.40% to 2.30% 1.40% to 2.30% 1.40% to 2.25% Total Return, Lowest to Highest (4) 0.40% to 0.25% 3.20% to 3.13% 6.29% to 6.14% 5.56% to 5.41% 4.83% to 4.68% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
------------------ Managed Allocation Series Conservative Portfolio ----------------- DECEMBER 31, 2005 Units - Unit Fair Value, Lowest to Highest (1) $10.32 to $10.25 Net Assets (In Thousands) $- Investment Income Ratio to Net Assets (2) 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 2.25% Total Return, Lowest to Highest (4) 2.10% to 1.96% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 142 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Travelers Series Trust ------------------------------------------------------------------------------ Managed Allocation Managed Alloc Series Managed Alloc Series Trust Series Moderate Moderate Aggressive Moderate Conservative MFS Value Portfolio Portfolio Portfolio Portfolio ------------------ -------------------- --------------------- ---------------- DECEMBER 31, 2005 Units 98,524 51,045 - 1,651 Unit Fair Value, Lowest to Highest (1) $10.75 to $10.69 $10.87 to $10.81 $10.53 to $10.47 $13.54 to $12.66 Net Assets (In Thousands) $1,057 $553 $- $22 Investment Income Ratio to Net Assets (2) 0.43% 0.22% 0.00% 0.59% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 2.25% 1.40% to 2.25% 1.40% to 2.25% 1.40% to 2.30% Total Return, Lowest to Highest (4) 3.49% to 3.35% 3.91% to 3.77% 2.79% to 2.65% 2.71% to 2.56% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
-------------------------------------- Style Focus Series Style Focus Series Small-Cap Growth Small-Cap Value Portfolio Portfolio ------------------ ------------------ DECEMBER 31, 2005 Units 4,581 7,734 Unit Fair Value, Lowest to Highest (1) $11.43 to $11.35 $11.25 to $11.18 Net Assets (In Thousands) $52 $87 Investment Income Ratio to Net Assets (2) 0.00% 0.29% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 2.30% 1.40% to 2.30% Total Return, Lowest to Highest (4) 4.86% to 4.70% 4.15% to 4.00% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 143 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Travelers Series Trust ------------------------------------------------------------------------------------ Travelers Pioneer Pioneer Managed Mid-Cap Strategic Convertible Income Pioneer Fund Value Income Securities Portfolio Portfolio Portfolio Portfolio Portfolio ---------------- ---------------- ---------------- ---------------- ---------------- DECEMBER 31, 2005 Units 10,658 2,811 12,149 546 - Unit Fair Value, Lowest to Highest (1) $15.77 to $14.22 $17.23 to $15.48 $10.88 to $10.81 $18.33 to $16.62 $14.93 to $14.48 Net Assets (In Thousands) $161 $47 $132 $10 $- Investment Income Ratio to Net Assets (2) 2.61% 0.00% 0.11% 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 2.30% 1.40% to 2.30% 1.40% to 2.30% 1.40% to 2.25% 1.50% to 1.90% Total Return, Lowest to Highest (4) 0.87% to 0.72% 4.02% to 3.86% 6.10% to 5.94% 2.62% to 2.48% 2.49% to 2.42% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
----------------- MFS Total Return Portfolio ---------------- DECEMBER 31, 2005 Units 4,031 Unit Fair Value, Lowest to Highest (1) $24.60 to $22.17 Net Assets (In Thousands) $96 Investment Income Ratio to Net Assets (2) 0.92% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.40% to 2.30% Total Return, Lowest to Highest (4) 2.00% to 1.85% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 144 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS
Travelers Series Trust ----------------------------------------------------------------------------------- Mercury U.S. Federated Large-Cap Equity AIM Capital Government High Yield Core Income Appreciation Securities Portfolio Portfolio Portfolio Portfolio Portfolio ---------------- --------------- ---------------- ---------------- ---------------- DECEMBER 31, 2005 Units 5,243 2,961 6,546 - 167 Unit Fair Value, Lowest to Highest (1) $15.40 to $14.56 $10.12 to $9.43 $20.15 to $18.53 $14.01 to $12.78 $20.68 to $19.02 Net Assets (In Thousands) $80 $29 $127 $- $3 Investment Income Ratio to Net Assets (2) 0.00% 0.00% 0.00% 0.00% 0.00% Expenses as a percent of (3) Average Net Assets, Lowest to Highest 1.70% to 2.30% 1.40% to 2.30% 1.40% to 2.30% 1.40% to 2.30% 1.70% to 2.30% Total Return, Lowest to Highest (4) 1.56% to 1.47% 4.09% to 3.93% 4.50% to 4.35% 4.29% to 4.14% 2.03% to 1.93% DECEMBER 31, 2004 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2003 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2002 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4) DECEMBER 31, 2001 Units Unit Fair Value, Lowest to Highest (1) Net Assets (In Thousands) Investment Income Ratio to Net Assets (2) Expenses as a percent of (3) Average Net Assets, Lowest to Highest Total Return, Lowest to Highest (4)
(Continued) 145 METLIFE INVESTORS USA SEPARATE ACCOUNT A FINANCIAL HIGHLIGHTS (1) Unit fair value amounts are presented as a range of minimum to maximum values based on the product grouping representing the minimum and maximum expense ratio amounts. Some individual unit fair values are not within the ranges presented. (2) These amounts represent the dividends, excluding distributions of capital gains, received by the Separate Account sub-accounts from the underlying mutual 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 charges, that result in direct reductions in the unit values. The recognition of investment income by the Separate Account sub-accounts is affected by the timing of the declaration of dividends by the underlying fund in which the Separate Account sub-accounts invest. (3) These ratios represent the annualized contract expenses of the Separate Account sub-accounts, consisting of mortality and expense 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 fund are excluded. (4) These amounts represent the total return for the periods indicated, including changes in the value of the underlying fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. As the total return is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract total returns are not within the ranges presented. The total return ratios related to new products offered or new sub-accounts added as investment options during the year are calculated for the period from the inception date of the product or sub-account through the end of the reporting period. (Concluded) 146 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly owned subsidiary of MetLife Investors Group, Inc.) FINANCIAL STATEMENTS For the Years Ended December 31, 2005, 2004 and 2003 and Report of Independent Registered Public Accounting Firm REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholder of MetLife Investors USA Insurance Company: We have audited the accompanying balance sheets of MetLife Investors USA Insurance Company (the "Company") as of December 31, 2005 and 2004, and the related statements of income, stockholder's equity, and cash flows for each of the three years in the period ended December 31, 2005. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of MetLife Investors USA Insurance Company at December 31, 2005 and 2004, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2005, 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 certain non-traditional long duration contracts and separate accounts as required by new accounting guidance which became effective on January 1, 2004 and October 1, 2003, respectively, and recorded the impact as cumulative effect of change in accounting principles. /s/ DELOITTE & TOUCHE LLP Certified Public Accountants Tampa, Florida April 20, 2006 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) BALANCE SHEETS DECEMBER 31, 2005 AND 2004 (IN MILLIONS, EXCEPT SHARE AND PER SHARE DATA)
2005 2004 ------- ------- ASSETS Investments: Fixed maturities available-for-sale, at fair value (amortized cost: $ 4,377 and $3,346, respectively) $ 4,419 $ 3,443 Mortgage loans on real estate 449 402 Policy loans 35 35 Other limited partnership interests 4 4 Short-term investments 283 130 Other invested assets 28 - ------- ------- Total investments 5,218 4,014 Cash and cash equivalents 50 144 Accrued investment income 53 41 Premiums and other receivables 1,709 1,163 Deferred policy acquisition costs 1,206 678 Current income taxes receivable 47 170 Other assets 287 146 Separate account assets 13,286 10,291 ------- ------- Total assets $21,856 $16,647 ======= ======= LIABILITIES AND STOCKHOLDER'S EQUITY Liabilities: Future policy benefits $ 267 $ 141 Policyholder account balances 4,854 4,591 Other policyholder funds 1,006 7 Long-term debt 435 35 Deferred income taxes payable 158 79 Payables for collateral under securities loaned and other transactions 987 790 Other liabilities 169 87 Separate account liabilities 13,286 10,291 ------- ------- Total liabilities 21,162 16,021 ------- ------- 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 398 398 Retained earnings 338 190 Accumulated other comprehensive income (loss) (44) 36 ------- ------- Total stockholder's equity 694 626 ------- ------- Total liabilities and stockholder's equity $21,856 $16,647 ======= =======
See accompanying notes to financial statements. 2 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003 (IN MILLIONS)
2005 2004 2003 ---- ---- ---- REVENUES Premiums $ 59 $ 9 $ 6 Universal life and investment-type product policy fees 420 159 88 Net investment income 221 207 199 Other revenues 76 26 - Net investment gains (losses) (10) (9) (10) ---- ---- ---- Total revenues 766 392 283 ---- ---- ---- EXPENSES Policyholder benefits and claims 47 18 7 Interest credited to policyholder account balances 216 153 146 Other expenses 298 179 75 ---- ---- ---- Total expenses 561 350 228 ---- ---- ---- Income before provision for income taxes 205 42 55 Provision for income taxes 57 17 18 ---- ---- ---- Income before cumulative effect of a change in accounting 148 25 37 Cumulative effect of a change in accounting, net of income taxes - 2 - ---- ---- ---- Net income $148 $ 27 $ 37 ==== ==== ====
See accompanying notes to financial statements. 3 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) STATEMENTS OF STOCKHOLDER'S EQUITY FOR THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003 (IN MILLIONS)
ACCUMULATED ADDITIONAL OTHER PREFERRED COMMON PAID-IN RETAINED COMPREHENSIVE STOCK STOCK CAPITAL EARNINGS INCOME (LOSS) TOTAL --------- ------ ---------- -------- ------------- ----- Balance at January 1, 2003 $ - $2 $ 48 $126 $ 31 $207 Capital contribution 50 50 Comprehensive income: Net income 37 37 Other comprehensive income: Unrealized gains (losses) on derivative instruments, net of income taxes (1) (1) Unrealized investment gains (losses), net of related offsets and income taxes 9 9 ---- Other comprehensive income (loss) 8 ---- Comprehensive income 45 --------- ------ ---------- -------- ------------- ----- Balance at December 31, 2003 - 2 98 163 39 302 Capital contribution 300 300 Comprehensive income (loss): Net income 27 27 Other comprehensive income (loss): Unrealized gains (losses) on derivative instruments, net of income taxes (2) (2) Unrealized investment gains (losses), net of related offsets and income taxes (1) (1) ---- Other comprehensive income (loss) (3) ---- Comprehensive income (loss) 24 ---- -- ---- ---- ---- ---- Balance at December 31, 2004 - 2 398 190 36 626 Comprehensive income: Net income 148 148 Other comprehensive income (loss): Unrealized gains (losses) on derivative instruments, net of income taxes 1 1 Unrealized investment gains (losses), net of related offsets and income taxes (81) (81) ---- Other comprehensive income (loss) (80) ---- Comprehensive income 68 --------- ------ ---------- -------- ------------- ---- Balance at December 31, 2005 $ - $2 $398 $338 $(44) $694 =======================================================
See accompanying notes to financial statements. 4 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2005, 2004 AND 2003 (IN MILLIONS)
2005 2004 2003 ------- ------- ------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 148 $ 27 $ 37 Adjustments to reconcile net income to net cash used in operating activities: Amortization of premiums and accretion of discounts associated with investments, net 15 21 17 (Gains) losses from sales of investments, net 10 9 10 Interest credited to policyholder account balances 216 153 146 Universal life and investment-type product policy fees (420) (159) (88) Change in accrued investment income (13) - (8) Change in premiums and other receivables (549) (1,108) 33 Change in deferred policy acquisition costs, net (132) (165) (237) Change in insurance-related liabilities 133 17 6 Change in income taxes payable 243 (29) (53) Change in other assets 81 140 58 Change in other liabilities 96 (106) (17) ------- ------- ------- Net cash used in operating activities (172) (1,200) (96) ------- ------- ------- CASH FLOWS FROM INVESTING ACTIVITIES Sales, maturities and repayments of: Fixed maturities 1,943 1,521 1,491 Equity securities - 2 - Mortgage loans on real estate 24 72 54 Purchases of: Fixed maturities (2,685) (1,482) (2,418) Mortgage loans on real estate (20) (42) (50) Net change in short-term investments (153) 7 (74) Net change in other invested assets (19) 1 (4) ------- ------- ------- Net cash provided by (used in) investing activities (910) 79 (1,001) ------- ------- ------- CASH FLOWS FROM FINANCING ACTIVITIES Policyholder account balances: Deposits 3,789 4,541 4,334 Withdrawals (3,398) (3,898) (3,571) Net change in payable under securities loaned and other transactions 197 122 443 Long-term debt issued 400 - - Capital contribution from the parent - 300 50 ------- ------- ------- Net cash provided by financing activities 988 1,065 1,256 ------- ------- ------- Change in cash and cash equivalents (94) (56) 159 Cash and cash equivalents, beginning of year 144 200 41 ------- ------- ------- CASH AND CASH EQUIVALENTS, END OF YEAR $ 50 $ 144 $ 200 ======= ======= ======= Supplemental disclosures of cash flow information: Net cash paid during the period for: Interest $ 18 $ 2 $ 2 ======= ======= ======= Income taxes $ (3) $ (2) $ (12) ======= ======= =======
See accompanying notes to financial statements. 5 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF ACCOUNTING POLICIES BUSINESS MetLife Investors USA Insurance Company (the "Company"), a Delaware domiciled life insurance company is a wholly owned subsidiary of MetLife Investors Group, Inc. ("MLIG"). MLIG is a wholly owned subsidiary of MetLife, Inc. ("MetLife"). The Company markets, administers and insures a broad range of term life and universal life insurance policies and variable and fixed annuity contracts. BASIS OF PRESENTATION Certain amounts in the prior years' financial statements have been reclassified to conform with the 2005 presentation. Two material reclassifications relate to the statements of cash flows presentation of payables for collateral under securities loaned and other transactions and certain reinsurance receivable balances. The net change in payable for collateral under securities loaned and other transactions of $122 million and $443 million have been reclassified from cash flows from investing activities to cash flows from financing activities on the statements of cash flows for the years ended December 31, 2004 and 2003, respectively. Reflected in the balance sheet and the statements of cash flows is a reclassification of the reinsurance receivables. Premiums and other receivables and other liabilities reclassifications on the balance sheet include $31 million at December 31, 2004. The net effect to the change in premiums and other receivables and the change in other liabilities on the statements of cash flows is $31 million and $38 million for the years ended December 31, 2004 and 2003, respectively. SUMMARY OF CRITICAL ACCOUNTING ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported in the financial statements. The most critical estimates include those used in determining: (i) investment impairments; (ii) the fair value of investments in the absence of quoted market values; (iii) the fair value of and accounting for derivatives; (iv) the capitalization and amortization of deferred policy acquisition costs ("DAC"); (v) the liability for future policyholder benefits; and (vi) the liability for litigation and regulatory matters; and (vii) accounting for reinsurance transactions. In applying these policies, management makes subjective and complex judgments that frequently require estimates about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to the Company's businesses and operations. Actual results could differ from these estimates. INVESTMENTS The Company's principal investments are in fixed maturities and mortgage loans on real estate, each of which are exposed to three primary sources of investment risk: credit, interest rate and market 6 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) valuation. The financial statement risks are those associated with the recognition of impairments and income, as well as the determination of fair values. The assessment of whether impairments have occurred is based on management's case-by-case evaluation of the underlying reasons for the decline in fair value. Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management's evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used by the Company in the impairment evaluation process include, but are not limited to: (i) the length of time and the extent to which the market value has been below cost or amortized cost; (ii) the potential for impairments of securities when the issuer is experiencing significant financial difficulties; (iii) the potential for impairments in an entire industry sector or sub-sector; (iv) the potential for impairments in certain economically depressed geographic locations; (v) the potential for impairments of securities where the issuer, series of issuers or industry has suffered a catastrophic type of loss or has exhausted natural resources; (vi) the Company's ability and intent to hold the security for a period of time sufficient to allow for recovery of its value to an amount equal or greater than the cost or amortized cost; (vii) unfavorable changes in forecasted cash flows on asset-backed securities; and (viii) other subjective factors, including concentrations and information obtained from regulators and rating agencies. In addition, the earnings on certain investments are dependent upon market conditions, which could result in prepayments and changes in amounts to be earned due to changing interest rates or equity markets. The determination of fair values in the absence of quoted market values is based on: (i) valuation methodologies; (ii) securities the Company deems to be comparable; and (iii) assumptions deemed appropriate given the circumstances. The use of different methodologies and assumptions may have a material effect on the estimated fair value amounts. In addition, the Company enters into limited partnerships for which the Company may be deemed to be the primary beneficiary and, therefore, may be required to consolidate such investments. The accounting rules for the determination of the primary beneficiary are complex and require evaluation of the contractual rights and obligations associated with each party involved in the entity, an estimate of the entity's expected losses and expected residual returns and the allocation of such estimates to each party. DERIVATIVES The Company enters into freestanding derivative transactions primarily to manage the risk associated with variability in cash flows or changes in fair values related to the Company's financial assets and liabilities. The associated financial statement risk is the volatility in net income which can result from (i) changes in fair value of derivatives not qualifying as accounting hedges; (ii) ineffectiveness of designated hedges; and (iii) counterparty default. In addition, there is a risk that embedded derivatives requiring bifurcation are not identified and reported at fair value in the financial statements. Accounting for derivatives is complex, as evidenced by significant authoritative interpretations of the primary accounting standards which continue to evolve, as well as the significant judgments and estimates involved in determining fair value in the absence of quoted market values. These estimates are based on valuation methodologies and assumptions deemed appropriate under the circumstances. Such assumptions include estimated volatility and interest rates used in the determination of fair value 7 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) where quoted market values are not available. The use of different assumptions may have a material effect on the estimated fair value amounts. DEFERRED POLICY ACQUISITION COSTS The Company incurs significant costs in connection with acquiring new and renewal insurance business. These costs, which vary with and are primarily related to the production of that business, are deferred. The recovery of DAC is dependent upon the future profitability of the related business. The amount of future profit is dependent principally on investment returns in excess of the amounts credited to policyholders, mortality, persistency, interest crediting rates, 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 are most likely to impact the rate of amortization of such costs. The aforementioned factors enter into management's estimates of gross profits, which generally are used to amortize such costs. Revisions to estimates result in changes to the amounts expensed in the reporting period in which the revisions are made and could result in the impairment of the asset and a charge to income if estimated future gross profits are less than amounts deferred. In addition, the Company utilizes the reversion to the mean assumption, a common industry practice, in its determination of the amortization of DAC. This practice assumes that the expectation for long-term appreciation in equity markets is not changed by minor short-term market fluctuations, but that it does change when large interim deviations have occurred. LIABILITY FOR FUTURE POLICY BENEFITS The Company establishes liabilities for amounts payable under insurance policies, including term life insurance and annuities with life contingencies. Generally, amounts are payable over an extended period of time and 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, expenses, persistency, investment returns and inflation. Utilizing these assumptions, liabilities are established on a block of business basis. Differences between actual experience and the assumptions used in pricing these policies and in the establishment of liabilities result in variances in profit and could result in losses. The effects of changes in such estimated liabilities are included in the results of operations in the period in which the changes occur. REINSURANCE The Company enters into reinsurance transactions as both a provider and a purchaser of reinsurance. 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 8 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) criteria similar to that evaluated in the security impairment process discussed previously. Additionally, for each of its reinsurance contracts, the Company must determine if the contract provides indemnification against loss or liability relating to insurance risk, in accordance with applicable accounting standards. The Company must review 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. If the Company determines that a reinsurance contract does not expose the reinsurer to a reasonable possibility of a significant loss from insurance risk, the Company records the contract using the deposit method of accounting. LITIGATION The Company is a party to a number of legal actions and regulatory investigations. Given the inherent unpredictability of these matters, it is difficult to estimate the impact on the Company's financial position. Liabilities are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities related to certain lawsuits are especially difficult to estimate due to the limitation of available data and uncertainty regarding numerous variables used to determine amounts recorded. On 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 financial statements. The review includes senior legal and financial personnel. 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 net income or cash flows in particular annual periods. SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS The Company's fixed maturities are classified as available-for-sale and are reported at their estimated fair value. Unrealized investment gains and losses on securities are recorded as a separate component of other comprehensive income or loss, net of policyholder related amounts and deferred income taxes. The cost of fixed maturities is adjusted for impairments in value deemed to be other-than-temporary in the period in which the determination is made. These adjustments are recorded as investment losses. The assessment of whether such impairment has occurred is based on management's case-by-case evaluation of the underlying reasons for the decline in fair value. Management considers a wide range of factors, as described in "- Summary of Critical Accounting Estimates-Investments," 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. The Company's review of its fixed maturities for impairments also includes an analysis of the total gross unrealized losses by three categories of securities: (i) securities where the estimated fair value had declined and remained below cost or amortized cost by less than 20%; (ii) securities where the 9 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) estimated fair value had declined and remained below cost or amortized cost by 20% or more for less than six months; and (iii) securities where the estimated fair value had declined and remained below cost or amortized cost by 20% or more for six months or greater. Investment gains and losses on sales of securities are determined on a specific identification basis. All security transactions are recorded on a trade date basis. Amortization of premium and accretion of discount on fixed maturity securities is recorded using the effective interest method. Mortgage loans on real estate are stated at amortized cost, net of valuation allowances. Loans are considered to be impaired when it is probable that, based upon current information and events, the Company will be unable to collect all amounts due under the contractual terms of the loan agreement. Valuation allowances are established for the excess carrying value of the mortgage loan over the present value of expected future cash flows discounted at the loan's original effective interest rate, the value of the loan's collateral or the loan's market value if the loan is being sold. The Company also establishes allowances for loan loss when a loss contingency exists for pools of loans with similar characteristics, for example, mortgage loans based on similar property types and loan to value risk factors. A loss contingency exists when the likelihood that a future event will occur is probable based on past events. Changes in valuation allowances are included in net investment gains and losses. Interest income earned on impaired loans is accrued on the principal amount of the loan based on the loan's contractual interest rate. However, interest ceases to be accrued for loans on which interest is generally more than 60 days past due and/or where the collection of interest is not considered probable. Cash receipts on impaired loans are recorded as a reduction of the recorded investment. Policy loans are stated at unpaid principal balances. Short-term investments are stated at amortized cost, which approximates fair value. Other invested assets consist principally of derivatives carried at fair value as determined by quoted market prices or through the use of pricing models. DERIVATIVE FINANCIAL INSTRUMENTS Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, or other financial indices. Derivatives may be exchange traded or contracted in the over-the-counter market. The Company uses a variety of derivatives, including swaps, forwards, futures and option contracts, to manage its various risks. Additionally, the Company can enter into income generation and replication derivatives as permitted by its Derivatives Use Plan. Freestanding derivatives are carried on the Company's balance sheet either as assets within other invested assets or as liabilities within other liabilities at fair value as determined by quoted market prices or through the use of pricing models. Values can be affected by changes in interest rates, foreign exchange rates, financial indices, credit spreads, market volatility, and liquidity. Values can also be affected by changes in estimates and assumptions used in pricing models. If a derivative is not designated as an accounting hedge or its use in managing risk does not qualify for hedge accounting pursuant to Statement of Financial Accounting Standards ("SFAS") No. 133, ACCOUNTING FOR DERIVATIVE 10 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) INSTRUMENTS AND HEDGING ACTIVITIES ("SFAS 133"), as amended, changes in the fair value of the derivative are reported in net investment gains (losses). To qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge as either (i) a hedge of the fair value of a recognized asset or liability or unrecognized firm commitment ("fair value hedge"); (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"); or (iii) a hedge of a net investment in a foreign operation. 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. Under a fair value hedge, changes in the fair value of the hedging derivative, including amounts measured as ineffectiveness, and changes in the fair value of the hedged item related to the designated risk being hedged, are reported within net investment gains (losses). The fair values of the hedging derivatives are exclusive of any accruals that are separately reported in the statement of income within interest income or interest expense to match the location of the hedged item. Under a cash flow hedge, changes in the fair value of the hedging derivative measured as effective are reported within other comprehensive income (loss), a separate component of stockholder's equity, and the deferred gains or losses on the derivative are reclassified into the statement of income when the Company's earnings are affected by the variability in cash flows of the hedged item. Changes in the fair value of the hedging instrument measured as ineffectiveness are reported within net investment gains (losses). The fair values of the hedging derivatives are exclusive of any accruals that are separately reported in the statement of income within interest income or interest expense to match the location of the hedged item. In a hedge of a net investment in a foreign operation, changes in the fair value of the hedging derivative that are measured as effective are reported within other comprehensive income (loss) consistent with the translation adjustment for the hedged net investment in the foreign operation. Changes in the fair value of the hedging instrument measured as ineffectiveness are reported within net investment gains (losses). The Company had no foreign operations, nor hedges for net investments in foreign operations during the years ended December 31, 2005, 2004 and 2003. The Company discontinues hedge accounting prospectively when: (i) it is determined that the derivative is no longer highly effective in offsetting changes in the fair value or cash flows of a hedged item; (ii) the derivative expires, is sold, terminated, or exercised; (iii) it is no longer probable that the hedged forecasted transaction will occur; (iv) a hedged firm commitment no longer meets the definition of a firm commitment; or (v) the derivative is de-designated as a hedging instrument. 11 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) When hedge accounting is discontinued because it is determined that the derivative is not highly effective in offsetting changes in the fair value or cash flows of a hedged item, the derivative continues to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in net investment gains (losses). The carrying value of the hedged recognized asset or liability under a fair value hedge is no longer adjusted for changes in its fair value due to the hedged risk, and the cumulative adjustment to its carrying value is amortized into income over the remaining life of the hedged item. Provided the hedged forecasted transaction is still probable of occurrence, the changes in fair value of derivatives recorded in other comprehensive income (loss) related to discontinued cash flow hedges are released into the statement of income when the Company's earnings are affected by the variability in cash flows of the hedged item. When hedge accounting is discontinued because it is no longer probable that the forecasted transactions will occur by the end of the specified time period or the hedged item no longer meets the definition of a firm commitment, the derivative continues to be carried on the balance sheet at its fair value, with changes in fair value recognized currently in net investment gains (losses). Any asset or liability associated with a recognized firm commitment is derecognized from the balance sheet, and recorded currently in net investment gains (losses). Deferred gains and losses of a derivative recorded in other comprehensive income (loss) pursuant to the cash flow hedge of a forecasted transaction are recognized immediately in net investment gains (losses). In all other situations in which hedge accounting is discontinued, the derivative is carried at its fair value on the balance sheet, with changes in its fair value recognized in the current period as net investment gains (losses). CASH AND CASH EQUIVALENTS The Company considers all highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. DEFERRED POLICY ACQUISITION COSTS The costs of acquiring new and renewal insurance business that vary with, and are primarily related to, the production of that business are deferred. Such costs consist principally of commissions and agency and policy issue expenses. DAC is amortized with interest over the expected life of the contract for universal life and investment-type products. Generally, DAC is amortized in proportion to the present value of estimated profits from investment, mortality, expense margins and surrender charges. Interest rates used to compute the present value of estimated gross profits are based on rates in effect at the inception or acquisition of the contracts. Actual gross profits can vary from management's estimates resulting in increases or decreases in the rate of amortization. Management utilizes the reversion to the mean assumption, a common industry 12 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) practice, in its determination of the amortization of DAC. This practice assumes that the expectation for long-term equity investment appreciation is not changed by minor short-term market fluctuations, but that it does change when large interim deviations have occurred. Management periodically updates these estimates and evaluates the recoverability of DAC. When appropriate, management revises its assumptions of the estimated profits of these contracts, and the cumulative amortization is re-estimated and adjusted by a cumulative charge or credit to current operations. DAC for non-participating term life and annuity policies with life contingencies are amortized in proportion to anticipated premiums. Assumptions as to anticipated premiums are made at the date of policy issuance or acquisition and are consistently applied during the lives of the contracts. Deviations from estimated experience are included in operations when they occur. For these contracts, the amortization period is typically the estimated life of the policy. Policy acquisition costs related to internally replaced contracts are expensed at the date of replacement. SALES INDUCEMENTS The Company has two different types of sales inducements which are included in other assets: (i) the policyholder receives a bonus whereby the policyholder's initial account balance is increased by an amount equal to a specified percentage of the customer's deposit; and (ii) the policyholder receives a higher interest rate using a dollar cost averaging method than would have been received based on the normal general account interest rate credited. The Company defers sales inducements and amortizes them over the life of the policy using the same methodology and assumptions used to amortize DAC. LIABILITY FOR FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES Future policy benefits for non-participating term life insurance policies are equal to the aggregate of (i) the present value of future benefit payments and related expenses less the present value of future net premiums and (ii) premium deficiency reserves, if any. Assumptions as to mortality and persistency are based upon the Company's experience when the basis of the liability is established. Interest rates for the aggregate future policy benefit liabilities range from 5% to 7%. Future policy benefit liabilities for traditional fixed annuities after annuitization are equal to the present value of expected future payments. Interest rates used in establishing such liabilities range from 3% to 11%. Policyholder account balances relate to investment-type contracts and universal life-type policies. Investment-type contracts principally include traditional individual fixed annuities in the accumulation phase and non-variable group annuity contracts. Policyholder account balances are equal to the policy account values, which consist of an accumulation of gross premium payments plus credited interest, ranging from 2% to 12%, less expenses, mortality charges, and withdrawals. 13 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) The Company establishes future policy benefit liabilities for minimum death and income benefit guarantees relating to certain annuity contracts and secondary guarantees and paid-up guarantees relating to certain life policies as follows: . Annuity guaranteed death benefit liabilities are determined by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. The assumptions used in estimating the liabilities are consistent with those used for amortizing DAC, including the mean reversion assumption. The assumptions of investment performance and volatility are consistent with the historical experience of the Standard & Poors 500 Index ("S&P"). The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. . Guaranteed income benefit liabilities are determined by estimating the expected value of the income benefits in excess of the projected account balance at the date of annuitization and recognizing the excess ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. The assumptions used for calculating such guaranteed income benefit liabilities are consistent with those used for calculating the guaranteed death benefit liabilities. In addition, the calculation of guaranteed annuitization benefit liabilities incorporates a percentage of the potential annuitizations that may be elected by the contractholder. . Liabilities for universal life secondary guarantees are determined by estimating the expected value of death benefits payable when the account balance is projected to be zero and recognizing those benefits ratably over the accumulation period based on total expected assessments. The Company regularly evaluates estimates used and adjusts the additional liability balances, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. The assumptions used in estimating the secondary and paid up guarantee liabilities are consistent with those used for amortizing DAC. The assumptions of investment performance and volatility for variable products are consistent with historical S&P experience. The benefits used in calculating the liabilities are based on the average benefits payable over a range of scenarios. The Company offers certain variable annuity products with guaranteed minimum benefit riders as follows: . Guaranteed minimum withdrawal benefit riders ("GMWB"s) guarantee a policyholder return of the purchase payment plus a bonus amount via partial withdrawals, even if the account value is reduced to zero, provided that the policyholder's cumulative withdrawals in a contract year do not exceed a certain limit. The initial guaranteed withdrawal amount is equal to the 14 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) initial benefit base as defined in the contract. When an additional purchase payment is made, the guaranteed withdrawal amount is set equal to the greater of (i) the guaranteed withdrawal amount before the purchase payment or (ii) the benefit base after the purchase payment. The benefit base increases by additional purchase payments plus a bonus amount and decreases by benefits paid and/or withdrawal amounts. After a specified period of time, the benefit base may also change as a result of an optional reset as defined in the contract. The benefit base can be reset to the account balance on the date of the reset if greater than the benefit base before the reset. The GMWB is an embedded derivative, which is measured at fair value separately from the host variable annuity product. The Company issues GMWBs directly and assumes risk relating to GMWBs issued by an affiliate through a financing agreement. The fair value relating to GMWBs directly written and the GMWB risk assumed from the affiliate included in policyholder account balances was $3 million and $23 million, respectively, at December 31, 2005. The risk associated with GMWBs directly written and assumed was transferred to a different affiliate through another financial reinsurance agreement valued at $26 million and included in premiums and other receivables at December 31, 2005. . Guaranteed minimum accumulation benefit riders ("GMAB"s) provide the contract holder with a minimum accumulation of their purchase payments deposited within a specific time period, adjusted proportionately for withdrawals, after a specified period of time determined at the time of issuance of the variable annuity contract. The GMAB is also an embedded derivative, which is measured at fair value separately from the host variable annuity product. The fair value of the GMWBs and GMABs is calculated based on actuarial and capital market assumptions related to the projected cash flows, including benefits and related contract charges, over the lives of the contracts, incorporating expectations concerning policyholder behavior. In measuring the fair value of GMWBs and GMABs, the Company attributes a portion of the fees collected from the policyholder equal to the present value of expected future guaranteed minimum withdrawal and accumulation benefits. GMWBs and GMABs are reported in policyholder account balances and the changes in fair value are reported in net investment gains (losses). Any additional fees represent "excess" fees and are reported in universal life and investment-type product policy fees. OTHER POLICYHOLDER FUNDS Other policyholder funds include policy and contract claims, unearned policy and contract fees and reinsurance assumed from affiliates. RECOGNITION OF INSURANCE REVENUE AND RELATED BENEFITS Premiums related to term life and annuity policies with life contingencies are recognized as revenues when due. 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. 15 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) Deposits related to universal life-type and investment-type products are credited to policyholder account balances. Revenues from such contracts consist of amounts assessed against policyholder account balances for mortality, policy administration and surrender charges and are recorded in universal life and investment-type product policy fees in the period in which services are provided. Amounts that are charged to operations include interest credited and benefit claims incurred in excess of related policyholder account balances. OTHER REVENUES Other revenues include reinsurance financings fees and advisory fees. Such fees are recognized in the period in which services are performed. FEDERAL INCOME TAXES The Company joined MetLife's includable affiliates in filing a federal income tax return. The future tax consequences of temporary differences between financial reporting and tax bases of assets and liabilities are measured at the balance sheet dates and are recorded as deferred income tax assets and liabilities. Valuation allowances are established when management assesses, based on available information, that it is more likely than not that deferred income tax assets will not be realized. REINSURANCE The Company has reinsured certain of its insurance contracts with other insurance companies under various agreements. Amounts due from reinsurers are estimated based upon assumptions consistent with those used in establishing the liabilities related to the underlying reinsured contracts. Policy and contract liabilities are reported gross of reinsurance credits. DAC is reduced by amounts recovered under reinsurance contracts. The Company enters into financial reinsurance contracts, which represent low mortality risk reinsurance treaties. These contracts are reported as deposits and are included in premiums and other receivables. The amount of revenue on these contracts represents fees and other cost of insurance under the terms of the reinsurance agreement and is reported in other revenues. 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. Effective with the adoption of Statement of Position 03-1, ACCOUNTING AND REPORTING BY INSURANCE ENTERPRISES FOR CERTAIN NONTRADITIONAL LONG-DURATION CONTRACTS AND FOR SEPARATE ACCOUNTS ("SOP 03-1"), on January 1, 2004, 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 16 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) (iv) all investment performance, net of contract fees and assessments, is passed through to the contractholder. The Company reports separate account assets meeting such criteria at their fair value. Investment performance (including investment income, net investment gains (losses) and changes in unrealized gains (losses)) and the corresponding amounts credited to contractholders of such separate accounts are offset within the same line in the statements of income. In connection with the adoption of SOP 03-1, there was no material impact on the Company's reporting of separate accounts. The Company's revenues reflect fees charged to the separate accounts, primarily including policy administration fees and investment management fees. FOREIGN CURRENCY The Company participates in reinsurance transactions with a foreign company. Balance sheet amounts are translated at the exchange rates in effect at each year-end and income and expense amounts are translated at the average rates of exchange prevailing during the year. Translation adjustments are charged or credited directly to other comprehensive income or loss. Gains and losses from foreign currency transactions are reported as gains (losses) in the period in which they occur. APPLICATION OF RECENT ACCOUNTING PRONOUNCEMENTS In February 2006, the FASB issued SFAS No. 155, ACCOUNTING FOR CERTAIN HYBRID INSTRUMENTS ("SFAS 155"). SFAS 155 amends SFAS 133 and SFAS No. 140, ACCOUNTING FOR TRANSFERS AND SERVICING OF FINANCIAL ASSETS AND EXTINGUISHMENTS OF LIABILITIES ("SFAS 140"). SFAS 155 allows financial instruments that have embedded derivatives to be accounted for as a whole, eliminating the need to bifurcate the derivative from its host, if the holder elects to account for the whole instrument on a fair value basis. In addition, among other changes, SFAS 155 (i) clarifies which interest-only strips and principal-only strips are not subject to the requirements of SFAS 133; (ii) establishes a requirement to evaluate interests in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation; (iii) clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives; and (iv) eliminates the prohibition on a qualifying special-purpose entity ("QSPE") from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial interest. SFAS 155 will be applied prospectively and is effective for all financial instruments acquired or issued for fiscal years beginning after September 15, 2006. SFAS 155 is not expected to have a material impact on the Company's financial statements. The FASB has issued additional guidance relating to derivative financial instruments as follows: . In June 2005, the FASB cleared SFAS 133 Implementation Issue No. B38, EMBEDDED DERIVATIVES: EVALUATION OF NET SETTLEMENT WITH RESPECT TO THE SETTLEMENT OF A DEBT INSTRUMENT THROUGH EXERCISE OF AN EMBEDDED PUT OPTION OR CALL OPTION ("Issue B38") and SFAS 133 Implementation Issue No. B39, EMBEDDED DERIVATIVES: APPLICATION OF PARAGRAPH 13(B) TO CALL OPTIONS THAT ARE EXERCISABLE ONLY BY THE DEBTOR ("Issue B39"). Issue B38 clarified that the potential settlement of a debtor's obligation to a creditor occurring upon exercise of a put or call option meets the net settlement criteria of SFAS No. 133. Issue B39 clarified that an 17 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) embedded call option, in which the underlying is an interest rate or interest rate index, that can accelerate the settlement of a debt host financial instrument should not be bifurcated and fair valued if the right to accelerate the settlement can be exercised only by the debtor (issuer/borrower) and the investor will recover substantially all of its initial net investment. Issues B38 and B39, which must be adopted as of the first day of the first fiscal quarter beginning after December 15, 2005, did not have a material impact on the Company's financial statements. . Effective October 1, 2003, the Company adopted SFAS 133 Implementation Issue No. B36, EMBEDDED DERIVATIVES: MODIFIED COINSURANCE ARRANGEMENTS AND DEBT INSTRUMENTS THAT INCORPORATE CREDIT RISK EXPOSURES THAT ARE UNRELATED OR ONLY PARTIALLY RELATED TO THE CREDITWORTHINESS OF THE OBLIGOR UNDER THOSE INSTRUMENTS ("Issue B36"). Issue B36 concluded that (i) a company's funds withheld payable and/or receivable under certain reinsurance arrangements; and (ii) a debt instrument that incorporates credit risk exposures that are unrelated or only partially related to the creditworthiness of the obligor include an embedded derivative feature that is not clearly and closely related to the host contract. Therefore, the embedded derivative feature is measured at fair value on the balance sheet and changes in fair value are reported in income. The Company did not experience a material impact as a result of the Issue B36 adoption. . Effective July 1, 2003, the Company adopted SFAS No. 149, AMENDMENT OF STATEMENT 133 ON DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES ("SFAS 149"). SFAS 149 amended and clarified the accounting and reporting for derivative instruments, including certain derivative instruments embedded in other contracts, and for hedging activities. Except for certain previously issued and effective guidance, SFAS 149 was effective for contracts entered into or modified after June 30, 2003. The Company's adoption of SFAS 149 did not have a significant impact on its financial statements. In September 2005, the American Institute of Certified Public Accountants ("AICPA") issued SOP 05-1, ACCOUNTING BY INSURANCE ENTERPRISES FOR DEFERRED ACQUISITION COSTS IN CONNECTION WITH MODIFICATIONS OR EXCHANGES OF INSURANCE CONTRACTS ("SOP 05-1"). SOP 05-1 provides guidance on accounting by insurance enterprises for deferred acquisition costs on internal replacements of insurance and investment contracts other than those specifically described in SFAS No. 97, ACCOUNTING AND REPORTING BY INSURANCE ENTERPRISES FOR CERTAIN LONG-DURATION CONTRACTS AND FOR REALIZED GAINS AND LOSSES FROM THE SALE OF INVESTMENTS. SOP 05-1 defines an internal replacement as a modification in product benefits, features, rights, or coverages that occurs by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. Under SOP 05-1, modifications that result in a substantially unchanged contract will be accounted for as a continuation of the replaced contract. A replacement contract that is substantially changed will be accounted for as an extinguishment of the replaced contract resulting in a release of unamortized deferred acquisition costs, unearned revenue and deferred sales inducements associated with the replaced contract. The guidance in SOP 05-1 will be applied prospectively and is effective for internal replacements occurring in fiscal years beginning 18 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) after December 15, 2006. The Company is currently evaluating the impact of SOP 05-1 and does not expect that the pronouncement will have a material impact on the Company's financial statements. Effective July 1, 2005, the Company adopted SFAS No. 153, EXCHANGES OF NONMONETARY ASSETS, AN AMENDMENT OF APB OPINION NO. 29 ("SFAS 153"). SFAS 153 amended prior guidance to eliminate the exception for nonmonetary exchanges of similar productive assets and replaced it with a general exception for exchanges of nonmonetary assets that do not have commercial substance. A nonmonetary exchange has commercial substance if the future cash flows of the entity are expected to change significantly as a result of the exchange. The provisions of SFAS 153 were required to be applied prospectively for fiscal periods beginning after June 15, 2005. The adoption of SFAS 153 did not have a material impact on the Company's financial statements. In June 2005, the FASB completed its review of EITF Issue No. 03-1, THE MEANING OF OTHER-THAN-TEMPORARY IMPAIRMENT AND ITS APPLICATION TO CERTAIN INVESTMENTS ("EITF 03-1"). EITF 03-1 provides accounting guidance regarding the determination of when an impairment of debt and marketable equity securities and investments accounted for under the cost method should be considered other-than-temporary and recognized in income. EITF 03-1 also requires certain quantitative and qualitative disclosures for debt and marketable equity securities classified as available-for-sale or held-to-maturity under SFAS No. 115, ACCOUNTING FOR CERTAIN INVESTMENTS IN DEBT AND EQUITY SECURITIES ("SFAS 115"), that are impaired at the balance sheet date but for which an other-than-temporary impairment has not been recognized. The FASB decided not to provide additional guidance on the meaning of other-than-temporary impairment but has issued FSP 115-1, THE MEANING OF OTHER-THAN-TEMPORARY IMPAIRMENT AND ITS APPLICATION TO CERTAIN INVESTMENTS ("FSP 115-1"), which nullifies the accounting guidance on the determination of whether an investment is other-than-temporarily impaired as set forth in EITF 03-1. As required by FSP 115-1, the Company adopted this guidance on a prospective basis, which had no material impact on the Company's financial statements, and has provided the required disclosures. In June 2005, the EITF reached consensus on Issue No. 04-5, DETERMINING WHETHER A GENERAL PARTNER, OR THE GENERAL PARTNERS AS A GROUP, CONTROLS A LIMITED PARTNERSHIP OR SIMILAR ENTITY WHEN THE LIMITED PARTNERS HAVE CERTAIN RIGHTS ("EITF 04-5"). EITF 04-5 provides a framework for determining whether a general partner controls and should consolidate a limited partnership or a similar entity in light of certain rights held by the limited partners. The consensus also provides additional guidance on substantive rights. EITF 04-5 was effective after June 29, 2005 for all newly formed partnerships and for any pre-existing limited partnerships that modified their partnership agreements after that date. EITF 04-5 must be adopted by January 1, 2006 for all other limited partnerships through a cumulative effect of a change in accounting principle recorded in opening equity or it may be applied retrospectively by adjusting prior period financial statements. The adoption of this provision of EITF 04-5 did not have a material impact on the Company's financial statements. In May 2005, the FASB issued SFAS No. 154, ACCOUNTING CHANGES AND ERROR CORRECTIONS, A REPLACEMENT OF APB OPINION NO. 20 AND FASB STATEMENT NO. 3 ("SFAS 154"). The statement requires retrospective application to prior periods' financial statements for a voluntary change in 19 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) accounting principle unless it is deemed impracticable. It also requires that a change in the method of depreciation, amortization, or depletion for long-lived, non-financial assets be accounted for as a change in accounting estimate rather than a change in accounting principle. SFAS 154 is effective for accounting changes and corrections of errors made in fiscal years beginning after December 15, 2005. The adoption of SFAS 154 will not have a material impact on the Company's financial statements. Effective July 1, 2004, the Company adopted EITF Issue No. 03-16, ACCOUNTING FOR INVESTMENTS IN LIMITED LIABILITY COMPANIES ("EITF 03-16"). EITF 03-16 provides guidance regarding whether a limited liability company should be viewed as similar to a corporation or similar to a partnership for purposes of determining whether a noncontrolling investment should be accounted for using the cost method or the equity method of accounting. EITF 03-16 did not have a material impact on the Company's financial statements. Effective January 1, 2004, the Company adopted SOP 03-1, as interpreted by a Technical Practice Aid ("TPA"), issued by the American Institute of Certified Public Accountants. SOP 03-1 provides guidance on (i) the classification and valuation of long-duration contract liabilities; (ii) the accounting for sales inducements; and (iii) separate account presentation and valuation. In June 2004, the FASB released Staff Position Paper No. 97-1, SITUATIONS IN WHICH PARAGRAPHS 17(B) AND 20 OF FASB STATEMENT NO. 97, ACCOUNTING AND REPORTING BY INSURANCE ENTERPRISES FOR CERTAIN LONG-DURATION CONTRACTS AND FOR REALIZED GAINS AND LOSSES FROM THE SALE OF INVESTMENTS, PERMIT OR REQUIRE ACCRUAL OF AN UNEARNED REVENUE LIABILITY ("FSP 97-1"), which included clarification that unearned revenue liabilities should be considered in determining the necessary insurance benefit liability required under SOP 03-1. Since the Company had considered unearned revenue in determining its SOP 03-1 benefit liabilities, FSP 97-1 did not impact its financial statements. As a result of the adoption of SOP 03-1, effective January 1, 2004, the Company decreased future policyholder benefits for various guaranteed minimum death and income benefits, net DAC and unearned revenue liability offsets under certain variable annuity contracts by approximately $2 million, net of income tax, which has been reported as a cumulative effect of a change in accounting. The application of SOP 03-1 increased the Company's 2004 net income by $3 million, including the cumulative effect of the adoption. During 2003, the Company adopted FIN 46 and FIN 46(r). Certain of the Company's investments in other limited partnership interests meet the definition of a variable interest entity ("VIE"). A VIE is defined as (i) any entity in which the equity investments at risk in such entity do not have the characteristics of a controlling financial interest; or (ii) any entity that does not have sufficient equity at risk to finance its activities without additional subordinated support from other parties. Effective February 1, 2003, the Company adopted FIN 46 for VIEs created or acquired on or after February 1, 2003 and, effective December 31, 2003, the Company adopted FIN 46(r). The adoption of FIN 46 as of February 1, 2003 and the provisions of FIN 46(r) at December 31, 2003 did not have a significant impact on the Company's financial statements. Effective January 1, 2003, the Company adopted FIN No. 45, GUARANTOR'S ACCOUNTING AND DISCLOSURE REQUIREMENTS FOR GUARANTEES, INCLUDING INDIRECT GUARANTEES OF INDEBTEDNESS OF OTHERS ("FIN 45"). FIN 45 requires entities to establish liabilities for certain types of guarantees and expands financial statement disclosures for others. The initial recognition and initial measurement provisions 20 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) of FIN 45 were applicable on a prospective basis to guarantees issued or modified after December 31, 2002. The adoption of FIN 45 did not have a significant impact on the Company's financial statements. See Note 8. Effective January 1, 2003, the Company adopted SFAS No. 146, ACCOUNTING FOR COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES ("SFAS 146"). SFAS 146 requires that a liability for a cost associated with an exit or disposal activity be recorded and measured initially at fair value only when the liability is incurred rather than at the date of an entity's commitment to an exit plan as required by EITF Issue No. 94-3, LIABILITY RECOGNITION FOR CERTAIN EMPLOYEE TERMINATION BENEFITS AND OTHER COSTS TO EXIT AN ACTIVITY INCLUDING CERTAIN COSTS INCURRED IN A RESTRUCTURING ("EITF 94-3"). As required by SFAS 146, the Company adopted this guidance on a prospective basis which had no material impact on the Company's financial statements. Effective January 1, 2003, the Company adopted SFAS No. 145, RESCISSION OF FASB STATEMENTS NO. 4, 44, AND 64, AMENDMENT OF FASB STATEMENT NO. 13, AND TECHNICAL CORRECTIONS ("SFAS 145"). In addition to amending or rescinding other existing authoritative pronouncements to make various technical corrections, clarify meanings, or describe their applicability under changed conditions, SFAS 145 generally precludes companies from recording gains and losses from the extinguishment of debt as an extraordinary item. SFAS 145 also requires sale-leaseback treatment for certain modifications of a capital lease that result in the lease being classified as an operating lease. The adoption of SFAS 145 did not have a significant impact on the Company's financial statements. 2. INVESTMENTS FIXED MATURITIES AVAILABLE-FOR-SALE BY SECTOR The following tables set forth the cost or amortized cost, gross unrealized gain and loss, and estimated fair value of the Company's fixed maturities by sector and the percentage of the total fixed maturities holdings that each sector represents at:
DECEMBER 31, 2005 --------------------------------------- GROSS COST OR UNREALIZED ESTIMATED AMORTIZED --------- FAIR COST GAIN LOSS VALUE % OF TOTAL --------- ---- ---- --------- ---------- (IN MILLIONS) Fixed Maturities: U.S. corporate securities $1,585 $48 $20 $1,613 36.5% Residential mortgage-backed securities 1,094 3 10 1,087 24.6 Foreign corporate securities 410 20 4 426 9.6 U.S. treasury / agency securities 295 4 - 299 6.8 Commercial mortgage-backed securities 612 2 7 607 13.7 Asset-backed securities 305 1 2 304 6.9 Foreign government securities 75 8 1 82 1.9 State and political subdivision securities 1 - - 1 - ------ --- --- ------ ----- Total fixed maturities $4,377 $86 $44 $4,419 100.0% ====== === === ====== =====
21 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 2004 --------------------------------------- GROSS COST OR UNREALIZED ESTIMATED AMORTIZED --------- FAIR COST GAIN LOSS VALUE % OF TOTAL --------- ---- ---- --------- ---------- (IN MILLIONS) Fixed Maturities: U.S. corporate securities $1,340 $ 65 $ 6 $1,399 40.6% Residential mortgage-backed securities 754 5 1 758 22.0 Foreign corporate securities 338 26 1 363 10.6 U.S. treasury / agency securities 202 2 1 203 5.9 Commercial mortgage-backed securities 275 2 2 275 8.0 Asset-backed securities 356 3 1 358 10.4 Foreign government securities 70 7 1 76 2.2 State and political subdivision securities 11 - - 11 0.3 ------ ---- --- ------ ----- Total fixed maturities $3,346 $110 $13 $3,443 100.0% ====== ==== === ====== =====
The Company held foreign currency derivatives with notional amounts of $26 million and $18 million to hedge exchange risk associated with foreign bonds and loans at December 31, 2005 and 2004, respectively. Excluding investments in U.S. Treasury securities and obligations of U.S. government corporations and agencies, the Company is not exposed to any significant concentration of credit risk in its fixed maturities portfolio. The Company held fixed maturities at estimated fair values that were below investment grade or not rated by an independent rating agency that totaled $207 million and $213 million at December 31, 2005 and 2004, respectively. These securities had a net unrealized gain of $8 million and $15 million at December 31, 2005 and 2004, respectively. The Company did not have any non-income producing fixed maturities at December 31, 2005. Non-income producing fixed maturities were $3 million at December 31, 2004. Unrealized gains associated with non-income producing fixed maturities was less than $1 million at December 31, 2004. 22 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) The cost or amortized cost and estimated fair value of bonds at December 31, 2005 and 2004, by contractual maturity date (excluding scheduled sinking funds), are shown below:
DECEMBER 31, --------------------------------------- 2005 2004 ------------------- ------------------- COST OR ESTIMATED COST OR ESTIMATED AMORTIZED FAIR AMORTIZED FAIR COST VALUE COST VALUE --------- --------- --------- --------- (IN MILLIONS) Due in one year or less $ 65 $ 65 $ 160 $ 161 Due after one year through five years 859 863 959 983 Due after five years through ten years 634 648 545 576 Due after ten years 808 845 297 332 ------ ------ ------ ------ Subtotal 2,366 2,421 1,961 2,052 Mortgage-backed, commercial mortgage-backed and other asset-backed securities 2,011 1,998 1,385 1,391 ------ ------ ------ ------ Total fixed maturities $4,377 $4,419 $3,346 $3,443 ====== ====== ====== ======
Bonds not due at a single maturity date have been included in the above table in the year of final contractual maturity. Actual maturities may differ from contractual maturities due to the exercise of prepayment options. Sales or disposals of fixed maturities classified as available-for-sale were as follows:
DECEMBER 31, ------------------ 2005 2004 2003 ------ ---- ---- (IN MILLIONS) Proceeds $1,873 $473 $466 Gross investment gains $ 7 $ 6 $ 8 Gross investment losses $ (29) $(10) $(11)
There were no writedowns recorded during 2005 for other-than-temporarily impaired available-for-sale fixed maturities. Gross investment losses above exclude writedowns recorded during 2004 and 2003 of $1 million and $2 million, respectively. The Company periodically disposes of fixed maturities at a loss. Generally, such losses are insignificant in amount or in relation to the cost basis of the investment or are attributable to declines in fair value occurring in the period of disposition. 23 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) UNREALIZED LOSSES FOR FIXED MATURITIES AVAILABLE-FOR-SALE The following tables show the estimated fair values and gross unrealized losses of the Company's fixed maturities in an unrealized loss position, aggregated by sector and by length of time that the securities have been in a continuous unrealized loss position at December 31, 2005 and 2004:
DECEMBER 31, 2005 -------------------------------------------------------------- EQUAL TO OR GREATER LESS THAN 12 MONTHS THAN 12 MONTHS TOTAL -------------------- -------------------- -------------------- ESTIMATED GROSS ESTIMATED GROSS ESTIMATED GROSS FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSS VALUE LOSS VALUE LOSS --------- ---------- --------- ---------- --------- ---------- (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) U.S. corporate securities $ 779 $18 $ 40 $2 $ 819 $20 Residential mortgage-backed securities 652 8 61 2 713 10 Foreign corporate securities 125 3 23 1 148 4 U.S. treasury / agency securities 23 - - - 23 - Commercial mortgage-backed securities 386 7 5 - 391 7 Asset-backed securities 149 2 11 - 160 2 Foreign government securities 8 1 2 - 10 1 State and political subdivision securities 1 - - - 1 - ------ --- ---- -- ------ --- Total fixed maturities $2,123 $39 $142 $5 $2,265 $44 ====== === ==== == ====== === Total number of securities in an unrealized loss position 350 47 397 ====== ==== ======
24 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 2004 -------------------------------------------------------------- EQUAL TO OR GREATER LESS THAN 12 MONTHS THAN 12 MONTHS TOTAL -------------------- -------------------- -------------------- ESTIMATED GROSS ESTIMATED GROSS ESTIMATED GROSS FAIR UNREALIZED FAIR UNREALIZED FAIR UNREALIZED VALUE LOSS VALUE LOSS VALUE LOSS --------- ---------- --------- ---------- --------- ---------- (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) U.S. corporate securities $ 333 $3 $ 40 $3 $ 373 $ 6 Residential mortgage-backed securities 276 1 34 - 310 1 Foreign corporate securities 48 - 22 1 70 1 U.S. treasury / agency securities 108 1 - - 108 1 Commercial mortgage-backed securities 134 2 17 - 151 2 Asset-backed securities 100 1 2 - 102 1 Foreign government securities 5 - 10 1 15 1 State and political subdivision securities 10 - - - 10 - ------ -- ---- -- ------ --- Total fixed maturities $1,014 $8 $125 $5 $1,139 $13 ====== == ==== == ====== === Total number of securities in an unrealized loss position 194 31 225 ====== ==== ======
AGING OF GROSS UNREALIZED LOSSES FOR FIXED MATURITIES AVAILABLE-FOR-SALE The following tables present the cost or amortized cost, gross unrealized losses and number of securities for fixed maturities at December 31, 2005 and 2004, where the estimated fair value had declined and remained below cost or amortized cost by less than 20%, or 20% or more for:
DECEMBER 31, 2005 -------------------------------------------------- COST OR GROSS NUMBER OF AMORTIZED COST UNREALIZED LOSSES SECURITIES ---------------- ---------------- ---------------- LESS THAN 20% OR LESS THAN 20% OR LESS THAN 20% OR 20% MORE 20% MORE 20% MORE --------- ------ --------- ------ --------- ------ (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) Less than six months $1,830 $12 $30 $4 297 2 Six months or greater but less than nine months 204 - 2 - 16 - Nine months or greater but less than twelve months 116 - 3 - 35 - Twelve months or greater 147 - 5 - 47 - ------ --- --- -- --- -- Total $2,297 $12 $40 $4 395 2 ====== === === == === ==
25 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
DECEMBER 31, 2004 -------------------------------------------------- COST OR GROSS NUMBER OF AMORTIZED COST UNREALIZED LOSSES SECURITIES ---------------- ---------------- ---------------- LESS THAN 20% OR LESS THAN 20% OR LESS THAN 20% OR 20% MORE 20% MORE 20% MORE --------- ------ --------- ------ --------- ------ (IN MILLIONS, EXCEPT NUMBER OF SECURITIES) Less than six months $ 613 $ - $ 3 $ - 109 - Six months or greater but less than nine months 354 - 4 - 71 - Nine months or greater but less than twelve months 55 - 1 - 14 - Twelve months or greater 130 - 5 - 31 - ------ ---- --- ---- --- --- Total $1,152 $ - $13 $ - 225 - ====== ==== === ==== === ===
As of December 31, 2005, $40 million of unrealized losses related to securities with an unrealized loss position less than 20% of cost or amortized cost, which represented 2% of the cost or amortized cost of such securities. As of December 31, 2004, $13 million of unrealized losses related to securities with an unrealized loss position less than 20% of cost or amortized cost, which represented 1% of the cost or amortized cost of such securities. As of December 31, 2005, $4 million of unrealized losses related to securities with an unrealized loss position greater than 20% of cost or amortized cost, which represented 33% of the cost or amortized cost of such securities. Of such unrealized losses, $4 million have been in an unrealized loss position for a period of less than six months. As of December 31, 2004, there were no unrealized losses related to securities with an unrealized loss position of 20% or more of cost or amortized cost. As described more fully in Note 1, the Company performs a regular evaluation, on a security-by-security basis, of its investment holdings in accordance with its impairment policy in order to evaluate whether such securities are other-than-temporarily impaired. The increase in the unrealized losses during 2005 is principally driven by an increase in interest rates during the year. Based upon the Company's evaluation of the securities in accordance with its impairment policy, the cause of the decline being principally attributable to the general rise in rates during the year, and the Company's intent and ability to hold the fixed income securities with unrealized losses for a period of time sufficient for them to recover; the Company has concluded that the aforementioned securities are not other-than-temporarily impaired. SECURITIES LENDING PROGRAM The Company participates in a securities lending program whereby blocks of securities, which are included in fixed maturity securities, are loaned to third parties, primarily major brokerage firms. The Company requires a minimum of 102% of the fair value of the loaned securities to be separately maintained as collateral for the loans. Securities with a cost or amortized cost of $927 million and 26 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) $741 million and an estimated fair value of $939 million and $762 million were on loan under the program at December 31, 2005 and 2004, respectively. Securities loaned under such transactions may be sold or repledged by the transferee. The Company was liable for cash collateral under its control of $970 million and $790 million at December 31, 2005 and 2004, respectively. Securities loaned transactions are accounted for as financing arrangements on the Company's balance sheets and statements of cash flows and the income and expenses associated with the program are reported in net investment income as investment income and investment expenses, respectively. There was no security collateral on deposit from customers in connection with securities lending transactions at December 31, 2005 and 2004. ASSETS ON DEPOSIT The Company had investment assets on deposit with regulatory agencies with a fair market value of $5 million at both December 31, 2005 and 2004, consisting primarily of fixed maturity securities. MORTGAGE LOANS ON REAL ESTATE Mortgage loans on real estate were categorized as follows:
DECEMBER 31, ---------------------------- 2005 2004 ------------- ------------- AMOUNT PERCENT AMOUNT PERCENT ------ ------- ------ ------- (IN MILLIONS) Commercial mortgage loans $360 80% $309 77% Agricultural mortgage loans 91 20 94 23 ---- --- ---- --- Total 451 100% 403 100% === === Less: Valuation allowances 2 1 ---- ---- Mortgage loans $449 $402 ==== ====
Mortgage loans on real estate are collateralized by properties located in the United States. At December 31, 2005, approximately 28%, 10% and 7% of the properties were located in California, Rhode Island and New York, respectively. Generally, the Company, as the lender, only loans up to 75% of the purchase price of the underlying real estate. Changes in loan valuation allowances for mortgage loans on real estate were as follows:
YEARS ENDED DECEMBER 31, ----------------------- 2005 2004 2003 ------ ------ ------ (IN MILLIONS) Balance, beginning of year $ 1 $ 1 $ 2 Additions 1 - 2 Deductions - - (3) ------ ------ ------ Balance, end of year $ 2 $ 1 $ 1 ====== ====== ======
27 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) The Company did not have impaired mortgage loans on real estate without valuation allowances at December 31, 2005. The Company held $4 million in impaired mortgage loans on real estate with no related valuation allowances at December 31, 2004. The average investment in impaired loans was $1 million for the year ended December 31, 2005 and $4 million for both of the years ended December 31, 2004 and 2003. The Company did not recognize interest income on impaired loans for the year ended December 31, 2005. Interest income on impaired loans was less than $1 million for both the years ended December 31, 2004 and 2003. The Company did not have restructured loans at December 31, 2005. The investment in restructured loans was $4 million at December 31, 2004. The Company did not recognize interest income on restructured loans for the year ended December 31, 2005. Interest income of less than $1 million was recognized on restructured loans for both the years ended December 31, 2004 and 2003. Gross interest income that would have been recorded in accordance with the original terms of such loans amounted to less than $1 million for both the years ended December 31, 2004 and 2003. There were no mortgage loans on real estate with scheduled payments of 60 days (90 days for agricultural mortgages) or more past due or in foreclosure at December 31, 2005 and 2004. NET INVESTMENT INCOME The components of net investment income were as follows:
YEARS ENDED DECEMBER 31, ----------------------- 2005 2004 2003 ------ ------ ------ (IN MILLIONS) Fixed maturities $ 211 $ 176 $ 166 Mortgage loans on real estate 28 34 33 Policy loans 3 2 2 Cash, cash equivalents and short-term investments 10 6 6 Other - - (1) ------ ------ ------ Total 252 218 206 Less: Investment expenses 31 11 7 ------ ------ ------ Net investment income $ 221 $ 207 $ 199 ====== ====== ======
28 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) NET INVESTMENT GAINS (LOSSES) Net investment gains (losses) were as follows:
YEARS ENDED DECEMBER 31, ---------------------- 2005 2004 2003 ------ ------ ------ (IN MILLIONS) Fixed maturities $ (22) $ (5) $ (5) Mortgage loans on real estate (1) - (3) Derivatives 7 (4) (2) Other 6 - - ------ ------ ------ Total net investment losses $ (10) $ (9) $ (10) ====== ====== ======
NET UNREALIZED INVESTMENT GAINS (LOSSES) The components of net unrealized investment gains (losses), included in accumulated other comprehensive income (loss), were as follows:
YEARS ENDED DECEMBER 31, ---------------------- 2005 2004 2003 ------ ------ ------ (IN MILLIONS) Fixed maturities $ 42 $ 97 $ 110 Derivatives (3) (4) (2) ------ ------ ------ Total 39 93 108 ------ ------ ------ Amounts related to: Future policy benefit loss recognition (78) - - Deferred policy acquisition costs (29) (38) (48) Deferred income taxes 24 (19) (21) ------ ------ ------ Total (83) (57) (69) ------ ------ ------ Net unrealized investment gains (losses) $ (44) $ 36 $ 39 ====== ====== ======
29 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) The changes in net unrealized investment gains (losses) were as follows:
YEARS ENDED DECEMBER 31, --------------------- 2005 2004 2003 ----- ------ ------ (IN MILLIONS) Balance, beginning of year $ 36 $ 39 $ 31 Unrealized investment gains (losses) during the year (54) (15) 19 Unrealized investment gains (losses) relating to: Deferred policy acquisition costs 9 10 (7) Future policy benefit loss recognition (78) - - Deferred income taxes 43 2 (4) ----- ------ ------ Balance, end of year $ (44) $ 36 $ 39 ===== ====== ====== Net change in unrealized investment gains (losses) $ (80) $ (3) $ 8 ===== ====== ======
VARIABLE INTEREST ENTITIES The following table presents the total assets of and maximum exposure to loss relating to VIEs for which the Company holds significant variable interests but it is not the primary beneficiary and which have not been consolidated:
AS OF DECEMBER 31, 2005 --------------------------------- MAXIMUM EXPOSURE TOTAL ASSETS (1) TO LOSS (2) ---------------- ---------------- (IN MILLIONS) Other limited partnerships (3) $ 4 $ 4 ---- ---- Total $ 4 $ 4 ==== ====
-- (1) The assets of the other limited partnerships are reflected at the carrying amounts at which such assets would have been reflected on the Company's balance sheet had the Company consolidated the VIE from the date of its initial investment in the entity. (2) The maximum exposure to loss relating to other limited partnerships is equal to the carrying amounts plus any unfunded commitments, reduced by amounts guaranteed by other partners. (3) Other limited partnerships include partnerships established for the purpose of investing in public and private debt and equity securities. 30 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) 3. DERIVATIVE FINANCIAL INSTRUMENTS TYPES OF DERIVATIVE INSTRUMENTS The following table provides a summary of the notional amounts and current market or fair value of derivative financial instruments held at:
DECEMBER 31, 2005 DECEMBER 31, 2004 --------------------------- --------------------------- CURRENT MARKET CURRENT MARKET OR FAIR VALUE OR FAIR VALUE NOTIONAL ------------------ NOTIONAL ------------------ AMOUNT ASSETS LIABILITIES AMOUNT ASSETS LIABILITIES -------- ------ ----------- -------- ------ ----------- (IN MILLIONS) Interest rate swaps $ 83 $ - $ 3 $ 7 $ - $ - Interest rate floors 2,000 26 - - - - Interest rate caps 1,000 2 - - - - Financial futures 147 - 1 84 - 2 Foreign currency swaps 26 - 4 18 - 5 Credit default swaps 30 - - 3 - - ------ ------ ------ ---- ------ ------ Total $3,286 $ 28 $ 8 $112 $ - $ 7 ====== ====== ====== ==== ====== ======
The above table does not include notional values for equity variance swaps. At December 31, 2005 and 2004, the Company owned 2,000 and 0 variance swap contracts, respectively. The market values for these equity variance swaps were insignificant and were not included in the preceding table. The following table provides a summary of the notional amounts of derivative financial instruments by maturity at December 31, 2005:
REMAINING LIFE ------------------------------------------------- AFTER ONE AFTER FIVE AFTER ONE YEAR YEAR THROUGH YEARS THROUGH TEN OR LESS FIVE YEARS TEN YEARS YEARS TOTAL -------- ------------ ------------- ------ ------ (IN MILLIONS) Interest rate swaps $ - $ - $ 7 $ 76 $ 83 Interest rate floors - - 2,000 - 2,000 Interest rate caps - 1,000 - - 1,000 Financial futures 147 - - - 147 Foreign currency swaps - 1 19 6 26 Credit default swaps - 30 - - 30 ------ ------ ------ ------ ------ Total $ 147 $1,031 $2,026 $ 82 $3,286 ====== ====== ====== ====== ======
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 31 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) (duration mismatches). In an interest rate swap, the Company agrees with another party to exchange, at specified intervals, the difference between fixed rate and floating rate interest amounts as calculated by reference to an agreed notional principal amount. These transactions are entered into pursuant to master agreements that provide for a single net payment to be made by the counterparty at each due date. Interest rate caps and floors are used by the Company primarily to protect its floating rate liabilities against rises in interest rates above a specified level, and against interest rate exposure arising from mismatches between assets and liabilities (duration mismatches), as well as to protect its minimum rate guarantee liabilities against declines in interest rates below a specified level, respectively. In exchange-traded interest rate futures transactions, the Company agrees to purchase or sell a specified number of contracts, the value of which is determined by the different classes of interest rate securities, and to post variation margin on a daily basis in an amount equal to the difference in the daily market values of those contracts. The Company enters into exchange-traded futures with regulated futures commission merchants that are members of the exchange. Exchange-traded interest rate futures are used primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, and to hedge against changes in interest rates on anticipated liability issuances by replicating Treasury curve performance. The value of interest rate futures is substantially impacted in interest rates and they can be used to modify or hedge existing interest rate risk. Foreign currency swaps are used by the Company to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets 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 forward exchange rate calculated by reference to an agreed upon principal amount. The principal amount of each currency is exchanged at the inception and termination of the currency swap by each party. Equity variance swaps are used by the Company primarily to hedge minimum guarantees embedded in certain variable annuity products offered by the Company. In an equity variance swap, the Company agrees with another party to exchange amounts in the future, based on changes in equity volatility over a defined period. As noted above, the equity variance swaps are not included in the preceding table. Certain credit default swaps are used by the Company to hedge against credit-related changes in the value of its investments and to diversify its credit risk exposure in certain portfolios. In a credit default swap transaction, the Company agrees with another party, at specified intervals, to pay a premium to insure credit risk. If a credit event, as defined by the contract, occurs, generally the contract will require the swap to be settled gross by the delivery of par quantities of the referenced investment equal to the specified swap notional in exchange for the payment of cash amounts by the counterparty equal to the par value of the investment surrendered. 32 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) HEDGING The table below provides a summary of the notional amount and fair value of derivatives by type of hedge designation at:
DECEMBER 31, 2005 DECEMBER 31, 2004 ------------------------- ------------------------- FAIR VALUE FAIR VALUE NOTIONAL ---------------- NOTIONAL ---------------- AMOUNT ASSET LIABILITY AMOUNT ASSET LIABILITY -------- ------ --------- -------- ------ --------- (IN MILLIONS) Fair value $ 5 $ - $ - $ 5 $ - $ 1 Cash flow 12 - 4 12 - 4 Non-qualifying 3,269 28 4 95 - 2 ------ ------ ------ ------ ------ ------ Total $3,286 $ 28 $ 8 $ 112 $ - $ 7 ====== ====== ====== ====== ====== ======
The Company recognized insignificant net investment expenses from qualifying hedge settlement payments for the years ended December 31, 2005, 2004 and 2003. The Company recognized insignificant net investment gains (losses) from non-qualifying hedge settlement payments for the years ended December 31, 2005, 2004 and 2003. FAIR VALUE HEDGES The Company designates and accounts for the following as fair value hedges when they have met the requirements of SFAS 133: (i) interest rate swaps to convert fixed rate investments to floating rate investments and (ii) foreign currency swaps to hedge the foreign currency fair value exposure of foreign currency denominated investments. The Company recognized net investment gains (losses) representing the ineffective portion of all fair value hedges as follows:
YEARS ENDED DECEMBER 31, --------------------- 2005 2004 2003 ------ ------ ------ (IN MILLIONS) Changes in the fair value of derivatives $ - $ (1) $ (3) Changes in the fair value of the items hedged - 1 1 ------ ------ ------ Net ineffectiveness of fair value hedging activities $ - $ - $ (2) ====== ====== ======
All components of each derivative's gain or loss were included in the assessment of hedge ineffectiveness. There were no instances in which the Company discontinued fair value hedge accounting due to a hedged firm commitment no longer qualifying as a fair value hedge. 33 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) CASH FLOW HEDGES The Company designates and accounts for foreign currency swaps to hedge the foreign currency cash flow exposure of foreign currency denominated investments when they have met the requirements of SFAS 133. For the years ended December 31, 2005, 2004 and 2003, the Company recognized insignificant net investment gains (losses), which represented the ineffective portion of all cash flow hedges. All components of each derivative's gain or loss were included in the assessment of hedge ineffectiveness. There were no instances in which the Company discontinued cash flow hedge accounting because the forecasted transactions did not occur on the anticipated date or in the additional time period permitted by SFAS 133. There were no hedged forecasted transactions, other than the receipt or payment of variable interest payments. Presented below is a roll forward of the components of other comprehensive income (loss), before income taxes, related to cash flow hedges:
YEARS ENDED DECEMBER 31, ---------------------- 2005 2004 2003 ------ ------ ------ (IN MILLIONS) Other comprehensive income (loss) balance at the beginning of the year $ (4) $ (2) $ - Gains (losses) deferred in other comprehensive income (loss) on the effective portion of cash flow hedges 1 (2) (2) ------ ------ ------ Other comprehensive income (losses) balance at the end of the year $ (3) $ (4) $ (2) ====== ====== ======
At December 31, 2005, an insignificant portion of the deferred net loss on derivatives accumulated in other comprehensive income (loss) is expected to be reclassified to earnings during the year ending December 31, 2006. NON-QUALIFYING DERIVATIVES AND DERIVATIVES FOR PURPOSES OTHER THAN HEDGING The Company enters into the following derivatives that do not qualify for hedge accounting under SFAS 133 or for purposes other than hedging: (i) interest rate swaps, purchased caps and floors, and interest rate futures to minimize its exposure to interest rate volatility; (ii) foreign currency swaps to minimize its exposure to adverse movements in exchange rates; (iii) credit default swaps to minimize its exposure to adverse movements in credit; (iv) credit default to diversify its credit risk exposure in certain portfolios; and (v) equity variance swaps to economically hedge liabilities. For the years ended December 31, 2005 and 2004, the Company recognized as net investment gains (losses) changes in fair value of $11 million, and ($6) million, respectively, related to derivatives that 34 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) do not qualify for hedge accounting. Changes in fair value for such derivatives had insignificant net investment gains (losses) for the year ended December 31, 2003. CREDIT RISK The Company may be exposed to credit related losses in the event of nonperformance by counterparties to derivative financial instruments. Generally, the current credit exposure of the Company's derivative contracts is limited to the fair value at the reporting date. The credit exposure of the Company's derivative transactions is represented by the fair value of contracts with a net positive fair value at the reporting date. As noted above, the Company manages its credit risk related to over-the-counter derivatives by entering into transactions with creditworthy counterparties, maintaining collateral arrangements and through the use of master agreements that provide for a single net payment to be made by one counterparty to another at each due date and upon termination. Because exchange traded futures are effected through regulated exchanges, and positions are marked to market on a daily basis, the Company has minimal exposure to credit related losses in the event of nonperformance by counterparties to such derivative instruments. The Company enters into various collateral arrangements, which require both the pledging and accepting of collateral in connection with its derivative instruments. As of December 31, 2005, the Company was obligated to return cash collateral under its control of $17 million. This unrestricted cash collateral is included in cash and cash equivalents and the obligation to return it is included in payables for collateral under securities loaned and other transactions in the balance sheet. As of December 31, 2005, the Company had not pledged any collateral related to derivative instruments. The Company did not have any cash or other collateral related to derivative instruments at December 31, 2004. 35 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) 4. INSURANCE DEFERRED POLICY ACQUISITION COSTS Information regarding DAC for the years ended December 31, 2005, 2004 and 2003 is as follows (In millions): Balance at January 1, 2003 $ 272 Capitalizations 249 ------ Total 521 ------ Less amortization related to: Net investment gains (losses) (1) Unrealized investment gains (losses) 7 Other expenses 13 ------ Total amortization 19 ------ Balance at December 31, 2003 502 Capitalizations 281 ------ Total 783 ------ Less amortization related to: Net investment gains (losses) (2) Unrealized investment gains (losses) (10) Other expenses 117 ------ Total amortization 105 ------ Balance at December 31, 2004 678 Capitalizations 624 ------ Total 1,302 ------ Less amortization related to: Net investment gains (losses) 4 Unrealized investment gains (losses) (9) Other expenses 101 ------ Total amortization 96 ------ Balance at December 31, 2005 $1,206 ======
Amortization of DAC is related to (i) investment gains and losses and the impact of such gains and losses on the amount of the amortization, (ii) unrealized investment gains and losses to provide information regarding the amount that would have been amortized if such gains and losses had been recognized; and (iii) other expenses to provide amounts related to the gross profits originating from transactions other than investment gains and losses. In the normal course of business the Company reviews and updates the assumptions used in establishing DAC amortization. During 2005, the Company revised its assumptions to include the 36 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) impact of variable annuity rider fees. As a result of the updated assumption, the Company re-estimated the amortization since inception and recorded a benefit of $23 million, before income tax, causing a decrease in amortization related to other expenses for the year ended December 31, 2005. During 2004 the Company entered into a new reinsurance treaty and updated significant parts of the underlying assumptions used to establish DAC amortization. As a result of the new reinsurance treaty and updated assumption, the Company re-estimated the amortization since inception and recorded a charge of $74 million, before income tax, causing an increase in amortization related to other expenses for the year ended December 31, 2005. The events described above that impacted DAC amortization had a similar impact on the amortization of sales inducements. For the year ended December 31, 2005, the Company re-estimated the amortization since inception and recorded a benefit of $4 million, before income tax, causing a decrease in amortization. For the year ended December 31, 2004, the Company re-estimated the amortization since inception and recorded a charge of $3 million, before income tax, causing an increase in amortization. SALES INDUCEMENTS Changes in deferred sales inducements, which are reported within other assets in the balance sheet, are as follows:
YEARS ENDED DECEMBER 31, ----------------------- 2005 2004 --------- -------- (IN MILLIONS) Balance at January 1 $ 143 $ 94 Capitalization 61 65 Amortization (8) (16) --------- -------- Balance at December 31 $ 196 $ 143 ========= ========
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"). The Company also issues universal life contracts where the Company contractually guarantees to the contractholder a secondary guarantee. 37 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) The Company had the following types of guarantees relating to annuity and universal life contracts at: ANNUITY CONTRACTS
DECEMBER 31, -------------------------------------------------------- 2005 2004 -------------------------- -------------------------- IN THE AT IN THE AT EVENT OF DEATH ANNUITIZATION EVENT OF DEATH ANNUITIZATION -------------- ------------- -------------- ------------- (IN MILLIONS) Return of Net Deposits Account value $ 5,537 N/A $ 4,001 N/A Net amount at risk $ - (1) N/A $ 9(1) N/A Average attained age of contractholders 61 years N/A 60 years N/A Anniversary Contract Value or Minimum Return Account value $ 7,972 $ 10,081 $ 6,342 $ 7,697 Net amount at risk $ 82(1) $ 38(2) $ 66(1) $ 24(2) Average attained age of contractholders 61 years 60 years 61 years 58 years
UNIVERSAL AND VARIABLE LIFE CONTRACTS
DECEMBER 31, --------------------- 2005 2004 ---------- ---------- SECONDARY SECONDARY GUARANTEES GUARANTEES ---------- ---------- (IN MILLIONS) Account value (general and separate account) $ 905 $ - Net amount at risk $ 19,148(1) $ - (1) Average attained age of policyholders 55 years N/A
-- (1) The net amount at risk for guarantees of amounts in the event of death is defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date. (2) 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. The net amount at risk is based on the direct amount at risk (excluding reinsurance). The Company's annuity contracts may offer more than one type of guarantee in each contract. Therefore, the amounts listed above may not be mutually exclusive. 38 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) The Company has guaranteed death and annuitization benefit liabilities on its annuity contracts of $28 million and $18 million, at December 31, 2005 and 2004, respectively. The Company reinsures 100% of this liability with an affiliate and has corresponding recoverables from reinsurers for the same amounts. Therefore, the Company has no net liability at December 31, 2005 and December 31, 2004. Account balances of contracts with insurance guarantees are invested in separate account asset classes as follows at:
DECEMBER 31, -------------- 2005 2004 ------- ------ (IN MILLIONS) Mutual Fund Groupings Equity $10,511 $7,456 Bond 518 695 Balanced 374 416 Money Market 137 110 Specialty 63 70 ------- ------ Total $11,603 $8,747 ======= ======
SEPARATE ACCOUNTS Separate account assets and liabilities include pass-through separate accounts totaling $13,286 million and $10,291 million at December 31, 2005 and 2004, respectively, for which the policyholder assumes all investment risk. Fees charged to the separate accounts by the Company (primarily including policy administration fees and investment management fees) are reflected in the Company's revenues as universal life and investment-type product policy fees and totaled $145 million, $139 million and $72 million for the years ended December 31, 2005, 2004 and 2003, respectively. For both the years ended December 31, 2005 and 2004, there were no investment gains (losses) on transfers of assets from the general account to the separate accounts. 5. REINSURANCE The Company's life insurance operations participate in reinsurance activities in order to limit losses, minimize exposure to large risks, and provide additional capacity for future growth. The Company has historically reinsured the mortality risk on new life insurance policies primarily on an excess of retention basis or a quota share basis. Starting in 2004, the Company reinsured up to 75% of the mortality risk for all new individual life insurance. During 2005, the Company changed its retention practices for individual life insurance. The amounts reinsured in prior years remain reinsured under the original reinsurance; however, under the new retention guidelines, the Company retains up to 39 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) $100,000 per life and reinsures 100% of amounts in excess of the Company's retention limits. The Company evaluates its reinsurance programs routinely and may increase or decrease its retention at any time. In addition to reinsuring mortality risk, as described above, the Company reinsures other risks and specific coverages. The Company routinely reinsures certain classes of risks to limit its exposure to particular travel, avocation and lifestyle hazards. The Company currently reinsures 90% of its new production of fixed annuities to an affiliate. Also, the Company reinsures 100% of the riders containing benefit guarantees related to variable annuities to an affiliate. The Company reinsures its business through a diversified group of reinsurers. No single unaffiliated reinsurer has a material obligation to the Company nor is the Company's business substantially dependent upon any reinsurance contracts. The Company is contingently liable with respect to ceded reinsurance should any reinsurer be unable to meet its obligations under these agreements. The amounts in the statements of income are presented net of reinsurance ceded. The effects of reinsurance were as follows:
YEARS ENDED DECEMBER 31, ------------------------ 2005 2004 2003 ------ ------- ------- (IN MILLIONS) Direct premiums earned $ 33 $ 13 $ 10 Reinsurance assumed 38 - - Reinsurance ceded (12) (4) (4) ------ ------- ------- Net premiums earned $ 59 $ 9 $ 6 ====== ======= ======= Reinsurance recoverables netted against policyholder benefits $ 8 $ 1 $ 23 ====== ======= =======
Written premiums are not materially different than earned premiums presented in the preceding table. Reinsurance recoverables, included in premiums and other receivables, were $47 million and $35 million at December 31, 2005 and 2004, respectively. Reinsurance and ceded commissions payables, included in other liabilities, were $10 million at December 31, 2005. There were no reinsurance and ceded commissions payable at December 31, 2004. 40 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) 6. LONG-TERM DEBT At December 31, 2005 and 2004, debt outstanding is as follows:
DECEMBER 31, ------------- 2005 2004 ----- ----- (IN MILLIONS) Surplus notes, interest rate 5%, maturity date upon request $ 25 $ 25 Surplus notes, interest rate LIBOR plus .75%, maturity date upon request 10 10 Surplus notes, interest rate 7.349%, maturity date 2035 400 - ----- ----- Total long-term debt $ 435 $ 35 ===== =====
On March 15, 2005, the Company issued a $400 million surplus note to its ultimate parent, MetLife, Inc. MLIG is the holder of the surplus notes in the amounts of $25 million and $10 million. These surplus notes may be redeemed, in whole or in part, at the election of MLIG at any time, subject to the prior approval of the Delaware Superintendent of Insurance. Payments of interest and principal on the Company's surplus notes, which are subordinate to all other debt, may be made only with the prior approval of the insurance department of the state of domicile. The aggregate maturities of long-term debt as of December 31, 2005 for the Company are payable upon regulatory approval. Interest expense related to the Company's indebtedness included in other expenses was $25 million for the year end December 31, 2005 and $2 million for the years ended December 31, 2004 and 2003, respectively. 7. INCOME TAXES The provision for income taxes was as follows:
YEARS ENDED DECEMBER 31, --------------------- 2005 2004 2003 ------ ------ ----- (IN MILLIONS) Current: Federal $ (61) $ (91) $ 56 State (2) 4 2 Deferred: Federal 121 100 (39) State (1) 4 (1) ------ ------ ----- Provision for income taxes $ 57 $ 17 $ 18 ====== ====== =====
41 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) Reconciliations of the income tax provision at the U.S. statutory rate to the provision for income taxes as reported were as follows:
YEARS ENDED DECEMBER 31, --------------------- 2005 2004 2003 ----- ------ ------ (IN MILLIONS) Tax provision at U.S. statutory rate $ 72 $ 15 $ 19 Tax effect of: Tax exempt investment income (12) (3) (2) State tax net of federal benefit (2) 5 1 Other, net (1) - - ----- ------ ------ Provision for income taxes $ 57 $ 17 $ 18 ===== ====== ======
Deferred income taxes represent the tax effect of the differences between the book and tax basis of assets and liabilities. Net deferred income tax assets and liabilities consisted of the following:
DECEMBER 31, -------------- 2005 2004 ------ ------ (IN MILLIONS) Deferred income tax assets: Policyholder liabilities and receivables $ 205 $ 165 Net unrealized investment gains 24 - Other, net 5 2 ------ ------ 234 167 ------ ------ Deferred income tax liabilities: Deferred policy acquisition costs 381 213 Investments 11 14 Net unrealized investment gains - 19 ------ ------ 392 246 ------ ------ Net deferred income tax liability $ (158) $ (79) ====== ======
The Company joined MetLife's includable affiliates in filing a federal income tax return. The consolidating companies have executed a Tax Allocation Agreement. 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 (losses) contributes to or reduces federal tax expense. Pursuant to the tax allocation agreement, the amounts due to (from) affiliates are ($51) million and ($175) million in 2005 and 2004, respectively. All years through and including 2001 are closed and no longer subject to IRS audit. The years 2002 and forward are open and subject to audit. The Company believes that any adjustments that might be required for the open years will not have a material effect on the Company's financial statements. 42 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) 8. CONTINGENCIES, COMMITMENTS AND GUARANTEES CONTINGENCIES LITIGATION Regulatory bodies have contacted the Company and have requested information relating to market timing and late trading of mutual funds and variable insurance products and, generally, the marketing of products. The Company believes that many of these inquiries are similar to those made to many financial services companies as part of industry-wide investigations by various regulatory agencies. The Company is fully cooperating with regard to these information requests and investigations. It is possible that additional requests for information and/or investigations may be commenced. The Company, at the present time, is not aware of any systemic problems with respect to such matters that may have a material adverse effect on the Company's financial position. MetLife, the ultimate parent of the Company, has received a number of subpoenas and other requests from the Office of the Attorney General of the State of New York seeking information regarding and relating to compensation agreements between insurance brokers and MetLife and its affiliates. MetLife also has received subpoenas, including sets of interrogatories, from the Office of the Attorney General of the State of Connecticut seeking similar information and documents. MetLife also has received a Civil Investigative Demand from the Office of the Attorney General for the State of Massachusetts seeking information and documents concerning bids and quotes that the Company submitted to potential customers in Massachusetts, the identity of agents, brokers, and producers to whom the Company submitted such bids or quotes, and communications with a certain broker. MetLife has received two subpoenas from the District Attorney of the County of San Diego, California. The subpoenas seek numerous documents including incentive agreements entered into with brokers. The Florida Department of Financial Services and the Florida Office of Insurance Regulation also have served subpoenas on MetLife asking for answers to interrogatories and document requests concerning topics that include compensation paid to intermediaries. The Office of the Attorney General for the State of Florida has also served a subpoena on MetLife seeking, among other things, copies of materials produced in response to the subpoenas discussed above. MetLife has received a subpoena from the Office of the U.S. Attorney for the Southern District of California asking for documents regarding the insurance broker, Universal Life Resources. The Insurance Commissioner of Oklahoma has served a subpoena, including a set of interrogatories, on MetLife seeking, among other things, documents and information concerning the compensation of insurance producers for insurance covering Oklahoma entities and persons. The Ohio Department of Insurance has requested documents from MetLife regarding a broker and certain Ohio public entity groups. Other insurance regulators have sent requests for information and documents to MetLife or its affiliates relating to broker compensation. MetLife continues to cooperate fully with these inquiries and is responding to the subpoenas and other requests. MetLife is continuing to conduct an internal review of its commission payment practices. It is possible that additional requests for information and/or investigations may be commenced. Various litigation, claims and assessments against the Company, in addition to those discussed above and those otherwise provided for in the Company's financial statements, have arisen in the course of 43 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) the Company's business. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company's compliance with applicable insurance and other laws and regulations. SUMMARY It is not feasible to predict or determine the ultimate outcome of all pending investigations and legal proceedings or provide reasonable ranges of potential losses. In some of the matters referred to above, 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 adverse 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 adverse effect on the Company's net income or cash flows in particular annual periods. INSOLVENCY ASSESSMENTS Most of the jurisdictions in which the Company is admitted to transact business require life 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 life insurers. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer engaged. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. Assessments levied against the Company from January 1, 2003 through December 31, 2005 aggregated $1 million. The Company maintained a liability of $2 million and a related asset for premium tax offsets of $1 million at December 31, 2005 for future assessments in respect of currently impaired, insolvent or failed insurers. 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 less than $1 million at December 31, 2005 and 2004, respectively. The Company anticipates that these amounts will be invested in the partnerships over the next five years. GUARANTEES In the course of its business, the Company may provide 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 may provide indemnities and guarantees, including those related to tax, environmental and other specific 44 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) 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 may provide 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 due under these guarantees in the future. In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies other of 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 due under these indemnities in the future. The Company's recorded liability at December 31, 2005 and 2004 for indemnities, guarantees and commitments is insignificant. 9. EQUITY DIVIDEND RESTRICTIONS Under the Delaware Insurance Law, the maximum amount of distributions which can be made to the Company's parent in any given year, without prior approval by the Delaware Commissioner of Insurance, is equal to the greater of (i) 10% of the Company's surplus as of December 31 of the preceding calendar year, or (ii) the net gain from operations for the preceding calendar year (excluding realized investment gains). Any dividends paid, whether or not in excess of the aforementioned threshold, from a source other than statutory earned surplus also requires the prior approval of the Delaware Commissioner of Insurance. Since the Company statutory unassigned funds surplus is less than zero, the Company cannot pay any dividends without prior approval of the Commissioner. The Company did not receive cash capital contributions for the year ended 2005. The Company received cash capital contributions of $300 million and $50 million from MLIG for the years ended 2004 and 2003, respectively. STATUTORY EQUITY AND INCOME The Company's state of domicile imposes minimum risk-based capital requirements that were developed by the National Association of Insurance Commissioners ("NAIC"). The formulas for determining the amount of risk-based capital specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk. Regulatory 45 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) compliance is determined by a ratio of total adjusted capital, as defined by the NAIC, to authorized control level risk-based capital, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. The NAIC adopted the Codification of Statutory Accounting Principles ("Codification") in 2001. Codification was intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting principles continue to be established by individual state laws and permitted practices. The Delaware State Department of Insurance has adopted Codification with certain modifications for the preparation of statutory financial statements of insurance companies domiciled in Delaware. Modifications by state insurance departments may impact the effect of Codification on the statutory capital and surplus of the Company. Statutory accounting practices 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 and valuing securities on a different basis. Statutory net income (loss) of the Company, a Delaware domiciled insurer, was ($244) million, ($201) million and $101 million for the years ended December 31, 2005, 2004 and 2003, respectively. Statutory capital and surplus, as filed with the Delaware Insurance Department, was $538 million and $382 million at December 31, 2005 and 2004, respectively. OTHER COMPREHENSIVE INCOME The following table sets forth the reclassification adjustments required for the years ended December 31, 2005, 2004 and 2003 in other comprehensive income (loss) that are included as part of net income for the current year that have been reported as a part of other comprehensive income (loss) in the current or prior year:
YEARS ENDED DECEMBER 31, ---------------------- 2005 2004 2003 ------ ------ ------ (IN MILLIONS) Holding (losses) on investments arising during the year $ (50) $ (42) $ (3) Income tax effect of holding gains 18 16 1 Reclassification adjustments: Recognized holding gains losses included in current year income (18) 6 4 Amortization of premiums and accretion of discounts associated with investments 14 21 18 Income tax effect 1 (10) (8) Allocation of holding gains (losses) on investments relating to other policyholder amounts (69) 10 (7) Income tax effect of allocation of holding gains or losses to other policyholder amounts 24 (4) 3 ------ ------ ------ Other comprehensive income (loss) $ (80) $ (3) $ 8 ====== ====== ======
46 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) 10. OTHER EXPENSES Other expenses were comprised of the following:
YEARS ENDED DECEMBER 31, ----------------------- 2005 2004 2003 ------- ------ ------ (IN MILLIONS) Commissions $ 666 $ 237 $ 216 Interest 25 2 2 Amortization of DAC 105 115 12 Capitalization of DAC (624) (281) (249) Other 126 106 94 ------- ------ ------ Total other expenses $ 298 $ 179 $ 75 ======= ====== ======
In 2005, commissions and capitalization of DAC include the impact of an affiliated reinsurance transaction entered into on January 1, 2005. See Note 12. 11. FAIR VALUE INFORMATION The estimated fair values of financial instruments have been determined by using available market information and the valuation methodologies described below. Considerable judgment is often required in interpreting market data to develop estimates of fair value. Accordingly, the estimates presented herein may not necessarily be indicative of amounts that could be realized in a current market exchange. The use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. Amounts related to the Company's financial instruments were as follows:
ESTIMATED CARRYING FAIR DECEMBER 31, 2005 VALUE VALUE ----------------- -------- --------- (IN MILLIONS) ASSETS: Fixed maturities $4,419 $4,419 Mortgage loans on real estate $ 449 $ 466 Policy loans $ 35 $ 35 Short-term investments $ 283 $ 283 Cash and cash equivalents $ 50 $ 50 LIABILITIES: Policyholder account balances $4,833 $4,536 Long-term debt $ 435 $ 435 Payable for collateral under securities loaned and other transactions $ 987 $ 987
47 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED)
ESTIMATED CARRYING FAIR DECEMBER 31, 2004 VALUE VALUE ----------------- -------- --------- (IN MILLIONS) ASSETS: Fixed maturities $3,443 $3,443 Mortgage loans on real estate $ 402 $ 431 Policy loans $ 35 $ 35 Short-term investments $ 130 $ 130 Cash and cash equivalents $ 144 $ 144 LIABILITIES: Policyholder account balances $4,591 $4,262 Long-term debt $ 35 $ 35 Payable for collateral under securities loaned and other transactions $ 790 $ 790
The methods and assumptions used to estimate the fair values of financial instruments are summarized as follows: FIXED MATURITIES The fair value of fixed maturities are based upon quotations published by applicable stock exchanges or received from other reliable sources. For securities for which the market values were not readily available, fair values were estimated using quoted market prices of comparable investments. MORTGAGE LOANS ON REAL ESTATE Fair values for mortgage loans on real estate are estimated by discounting expected future cash flows, using current interest rates for similar loans with similar credit risk. POLICY LOANS The carrying values for policy loans approximate fair value. CASH AND CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS The carrying values for cash and cash equivalents and short-term investments approximated fair values due to the short-term maturities of these instruments. POLICYHOLDER ACCOUNT BALANCES The fair value of policyholder account balances which have final contractual maturities are estimated by discounting expected future cash flows based upon interest rates currently being offered for similar 48 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) contracts with maturities consistent with those remaining for the agreements being valued. The fair value of policyholder account balances without final contractual maturities are assumed to equal their current net surrender value. LONG-TERM DEBT The fair values of long-term debt are determined by discounting expected future cash flows using risk rates currently available for debt with similar terms and remaining maturities. PAYABLES FOR COLLATERAL UNDER SECURITIES LOANED AND OTHER TRANSACTIONS The carrying values for payables for collateral under securities loaned and other transactions approximate fair value. DERIVATIVE FINANCIAL INSTRUMENTS The fair value of derivative instruments are based upon quotations obtained from dealers or other reliable sources. See Note 3 for derivative fair value disclosures. 12. RELATED PARTY TRANSACTIONS The Company entered into a Service Agreement, an Investment Management Agreement and a Principal Underwriters and Selling Agreement with its affiliated companies for the years 2005, 2004 and 2003. The affiliated companies are Metropolitan Life Insurance Company ("Metropolitan Life"), which provides management services, employees, policy administration functions and investment advice necessary to conduct the activities of the Company and MLIG and MetLife Investors Distribution Company, which provide distribution services to the Company. Expenses charged to the Company for these distribution services are limited to amounts that effectively equal pricing expense levels. This results in residual expenses reflected in the results of MLIG. Expenses and fees paid to affiliated companies in 2005, 2004 and 2003 for the Company, recorded in other expenses, were $138 million, $109 million and $95 million, respectively. At December 31, 2005 and 2004, amounts due to/(from) affiliates of approximately ($18) million and $14 million, respectively, relate primarily to Metropolitan Life and MLIG. Since the Company is a member of a controlled group of affiliate companies its results may not be indicative of those of a stand alone entity. As of December 31, 2005 and 2004, respectively, the Company held $133 million and $130 million of its total invested assets in the MetLife Money Market Pool and the MetLife Intermediate Income Pool which are affiliated partnerships. These amounts are recorded as short-term investments on the balance sheets of the Company. Effective January 1, 2005, the Company entered into a reinsurance agreement to assume an in force block of business from General American Life Insurance Company ("GALIC"), an affiliate. This 49 METLIFE INVESTORS USA INSURANCE COMPANY (a wholly-owned subsidiary of MetLife Investors Group) NOTES TO FINANCIAL STATEMENTS -- (CONTINUED) agreement covered certain term and universal life policies issued by GALIC on and after January 1, 2000 through December 31, 2004. This agreement also covers certain term and universal life policies issued on or after January 1, 2005. Under this agreement, GALIC transferred $797 million of liabilities and $411 million in assets to the Company related to the policies in-force as of December 31, 2004. The Company also paid and deferred 100% of a ceding commission to GALIC of $386 million resulting in no gain or loss on the transfer of the in-force business as of January 1, 2005. For the policies issued on or after January 1, 2005, the Company assumed premiums and related fees of $192 million and assumed benefits and related costs of $143 million for the year ended December 31, 2005. Assumed liabilities, included in other policyholder funds, related to this reinsurance agreement as of December 31, 2005 were $932 million. Effective January 1, 2005, and December 31, 2005, the Company entered into two reinsurance agreements with Exeter Reassurance Company, Ltd. ("Exeter"), an affiliate. Under these agreements, the Company retroceded 100% of the secondary guarantees on policies that the Company assumed from GALIC. For the year ended December 31, 2005, the pre-tax loss resulting from these treaties were less than $1 million. Effective April 1, 2005, the Company entered into a reinsurance agreement with, Mitsui Sumitomo MetLife Insurance Co., Ltd. ("MSI"), an affiliate. Under this agreement, the Company assumed 100% of the guaranteed minimum death benefit ("GMDB") and living benefit claims associated with variable annuity contracts. The Company retroceded 100% of the GMDBs to Exeter. For the year ended December 31, 2005, the pre-tax gain on this business was less than $1 million. In the normal course of business, the Company transfers invested assets, primarily consisting of fixed maturity securities, to and from affiliates. The Company transferred assets with a cost or amortized cost and fair market value of $78 million and $79 million, and $324 million and $320 million for the years ended December 31, 2005 and 2004, respectively. The realized capital gains (losses) recognized on these transfers were $1 million and ($4) million for the years ended December 31, 2005 and 2004, respectively. The Company purchased assets from affiliates with a fair market value of $711 million for the year ended December 31, 2005. There were no assets purchased from affiliates for the year ended December 31, 2004. 50 PART C OTHER INFORMATION ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS a. Financial Statements ------------------------------------------------------------------------ The following financial statements of the Separate Account are included in Part B hereof: (to be filed by amendment) 1. Report of Independent Registered Public Accounting Firm. 2. Statement of Assets and Liabilities as of December 31, 2005. 3. Statement of Operations for the year ended December 31, 2005. 4. Statements of Changes in Net Assets for the years ended December 31, 2005 and 2004. 5. Notes to Financial Statements. 6. Financial Highlights. The following financial statements of the Company are included in Part B hereof: (to be filed by amendment) 1. Report of Independent Registered Public Accounting Firm. 2. Balance Sheets as of December 31, 2005 and 2004. 3. Statements of Income for the years ended December 31, 2005, 2004 and 2003. 4. Statements of Stockholder's Equity for the years ended December 31, 2005, 2004 and 2003. 5. Statements of Cash Flows for the years ended December 31, 2005, 2004 and 2003. 6. Notes to Financial Statements. b. Exhibits ------------------------------------------------------------------------ 1. Certification of Restated Resolution of Board of Directors of the Company authorizing the establishment of the Separate Account (adopted May 18, 2004) (5) 2. Not Applicable. 3. (i) Principal Underwriter's and Selling Agreement (effective January 1, 2001) (5) (ii) Amendment to Principal Underwriter's and Selling Agreement (effective January 1, 2002) (5) (iii) Form of Retail Sales Agreement (MLIDC 7-1-05 (LTC)) (9) 4. (i) Individual Flexible Purchase Payment Deferred Variable Annuity Contract (8010 11/00)) (1) (ii) Death Benefit Rider - (Principal Protection) (Form 7015 (11/00)) (1) (iii) Death Benefit Rider - (Annual Step-Up) (Form 7017 (11/00)) (1) (iiv) Additional Death Benefit Rider - (Earnings Preservation Benefit) (Form 7019 (11/00)) (1) (v) Waiver of Withdrawal Charge for Nursing Home or Hospital Confinement Rider (Form 7021 (11/00)) (1) (vi) Terminal Illness Rider (Form 7022 (11/00)) (1) (vii) Unisex Annuity Rates Rider(Form 7027 (11/00)) (1) (viii) Endorsement (Name Change - effective March 1, 2001. MetLife Investors USA Insurance Company; formerly Security First Life Insurance Company) (2) (ix) Individual Retirement Annuity Endorsement 8023.1 (9/02) (5) (x) Roth Individual Retirement Annuity Endorsement 9024.1 (9/02) (5) (xi) 401(a)/403(a) Plan Endorsement 8025.1 (9/02) (5) (xii) Tax Sheltered Annuity Endorsement 8026.1 (9/02) (5) (xiii) Simple Individual Retirement Annuity Endorsement 8276 (9/02) (5) (xiv) Guaranteed Withdrawal Benefit Rider MLIU-690-2 (11/05) (6) (xv) Form of Contract Schedule [GMIB II, GMIB III, GWB I, GWB Enhanced, GWB II, GWB III, GMAB] 8028-4 (11/05) (7) (xvi) Designated Beneficiary Non-Qualified Annuity Endorsement MLIU-NQ-1 (11/05)-I (7) (xvii) Lifetime Guaranteed Withdrawal Benefit Rider MLIU-690-3 (6/06) (9) (xviii) Form of Contract Schedule [LWG, et al.] 8028-5 (6/06) (9) (xvix) Form of Contract Schedule [M & E] 8028-1 (2/07) - PEIV (to be filed by amendment) (XX) Fixed Account Rider 8012 (11/00) (to be filed by amendment) 5. Form of Variable Annuity Application 8401 (8/06) APPVA-USA PE4 207 (to be filed by amendment) 6. (i) Copy of Restated Articles of Incorporation of the Company (5) (ii) Copy of the Bylaws of the Company (5) (iii) Certificate of Amendment of Certificate of Incorporation filed 10/01/79 and signed 9/27/79 (5) (iv) Certificate of Change of Location of Registered Office and/or Registered Agent filed 2/26/80 and effective 2/8/80 (5) (v) Certificate of Amendment of Certification of Incorporation signed 4/26/83 and certified 2/12/85 (5) (vi) Certificate of Amendment of Certificate of Incorporation filed 10/22/84 and signed 10/19/84 (5) (vii) Certificate of Amendment of Certificate of Incorporation certified 8/31/94 and adopted 6/13/94 (5) (viii) Certificate of Amendment of Certificate of Incorporation of Security First Life Insurance Company (name change to MetLife Investors USA Insurance Company) filed1/8/01 and signed 12/18/00 (5) 7. (i) Reinsurance Agreement between MetLife Investors USA Insurance Company and Metropolitan Life Insurance Company (3) (ii) Automatic Reinsurance Agreement between MetLife Investors USA Insurance Company and Exeter Reassurance Company, Ltd. (3) 8. (i) Participation Agreement Among Metropolitan Series Fund, Inc., MetLife Advisors, LLC, Metropolitan Life Insurance Company and MetLife Investors USA Insurance Company (effective July 1, 2004) (8) (ii) Participation Agreement Among Met Investors Series Trust, Met Investors Advisory Corp., MetLife Investors Distribution Company and MetLife Investors USA Insurance Company (effective 2-12-01) (5) (iii) Participation Agreement Among MetLife Investors USA Insurance Company, MetLife Investors Distribution Company, Alliance Capital Management L.P. and AllianceBernstein Investment Research and Management, Inc. (effective 11-01-05) (10) (iv) Fund Participation Agreement Among MetLife Investors USA Insurance Company, American Funds Insurance Series and Capital Research and Management Company (effective 04-29-03) and First Amendment to Fund Participation Agreement dated 04-29-03 (effective 11-01-05) (10) (v) Participation Agreement among Franklin Templeton Variable Insurance Products Trust, Franklin/Templeton Distributors, Inc., MetLife Investors USA Insurance Company and MetLife Investors Distribution Company (effective 11-01-05) (10) (vi) Participation Agreement Among Pioneer Variable Contracts Trust, MetLife Investors USA Insurance Company, Pioneer Investment Management, Inc. and Pioneer Funds Distributor, Inc. (effective 11-01-05) (10) (vii) Participation Agreement Among Putnam Variable Trust, Putnam Retail Management Limited Partnership and MetLife Investors USA Insurance Company (effective 02-27-06) (10) (viii) Participation Agreement Among Smith Barney Allocation Series Inc., Citigroup Global Markets Inc. and MetLife Investors USA Insurance Company (effective 11-01-05) (10) (ix) Participation Agreement Among Smith Barney Investment Series, Citigroup Global Markets Inc. and MetLife Investors USA Insurance Company (effective 11-01-05) (10) (x) Participation Agreement Among Smith Barney Multiple Discipline Trust, Citigroup Global Markets Inc. and MetLife Investors USA Insurance Company (effective 11-01-05) (10) (xi) Participation Agreement Among The Universal Institutional Funds, Inc., Morgan Stanley Distribution, Inc., Morgan Stanley Investment Management Inc., and MetLife Investors USA Insurance Company (effective 11-01-05) (10) (xii) Participation Agreement Among Van Kampen Life Investment Trust, Van Kampen Asset Management, Van Kampen Funds Inc. and MetLife Investors USA Insurance Company (effective 11-01-05) (10) (xiii) Participation Agreement Among Variable Insurance Products Funds, Fidelity Distribution Corporation and MetLife Investors USA Insurance Company (effective 11-01-05) (10) 9. Opinion and Consent of Counsel (4) 10. Consent of Independent Registered Public Accounting Firm (Deloitte & Touche LLP) (to be filed by amendment) 11. Not Applicable. 12. Not Applicable. 13. Powers of Attorney for Michael K. Farrell, James P. Bossert, Susan A. Buffum, Michael R. Fanning, Paul Sylvester, Richard C. Pearson, Elizabeth M. Forget, George Foulke, Jeffrey A. Tupper and Charles V. Curcio. (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. 1 on Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on April 13, 2001. (3) incorporated herein by reference to Registrant's Post-Effective Amendment No. 4 to Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on April 30, 2003. (4) incorporated herein by reference to Registrant's Post-Effective Amendment No. 5 on Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on April 27, 2004. (5) incorporated herein by reference to Registrant's Post-Effective Amendment No. 6 on Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on July 15, 2004. (6) incorporated herein by reference to Registrant's Initial Registration Statement on Form N-4 (File Nos. 333-125753 and 811-03365) filed electronically on June 13, 2005. (7) incorporated herein by reference to Registrant's Pre-Effective Amendment No. 1 on Form N-4/A (File Nos. 333-125753 and 811-03365) filed electronically on September 15, 2005. (8) incorporated herein by reference to Registrant's Post-Effective Amendment No. 14 on Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on October 7, 2005. (9) incorporated herein by reference to Registant's Post-Effective Amendment No. 10 on Form N-4 (File Nos. 333-54464 and 811-03365) filed electronically on April 24, 2006. (10) 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. (11) incorporated herein by reference to Registrant's Initial Registration Statement on Form N-4 (File Nos. 333-137369 and 811-03365 Series S) filed electronically on September 15, 2006. ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR The following are the Officers and Directors who are engaged directly or indirectly in activities relating to the Registrant or the variable annuity contracts offered by the Registrant and the executive officers of the Company: Name and Principal Business Address Positions and Offices with Depositor ----------------------------------- ------------------------------------------ Michael K. Farrell Chairman of the Board, President, 5 Park Plaza Chief Executive Officer and Director Suite 1900 Irvine, CA 92614 Susan A. Buffum Director 334 Madison Avenue Convent Station, NJ 07961 Charles V. Curcio Vice President, Finance 501 Route 22 Bridgewater, NJ 08807 Name and Principal Business Address Positions and Offices with Depositor ----------------------------------- ------------------------------------------ James P. Bossert Executive Vice President and Director 5 Park Plaza Suite 1900 Irvine, CA 92614 Michael R. Fanning Director 501 Boylston Street Boston, MA 02116 Elizabeth M. Forget Director 260 Madison Avenue New York, NY 10016 George Foulke Director 501 Route 22 Bridgewater, NJ 08807 Paul A. Sylvester Director 10 Park Avenue Morristown, NJ 07962 Kevin J. Paulson Senior Vice President 4700 Westown Parkway Suite 200 West Des Moines, IA 50266 Richard C. Pearson Executive Vice President, General 5 Park Plaza Counsel, Secretary and Director Suite 1900 Irvine, CA 92614 Jeffrey A. Tupper Assistant Vice President and Director 5 Park Plaza Suite 1900 Irvine, CA 92614 Debora L. Buffington Vice President, Director of Compliance 5 Park Plaza Suite 1900 Irvine, CA 92614 Betty Davis Vice President 1125 17th Street Suite 800 Denver, CO 80202 Brian C. Kiel Vice President, Appointed Actuary 501 Route 22 Bridgewater, NJ 08807 Jonathan L. Rosenthal Vice President, Chief Hedging Officer 10 Park Avenue Morristown, NJ 07962 Christopher A. Kremer Vice President 501 Boylston Street Boston, MA 02116 Marian J. Zeldin Vice President 501 Route 22 Bridgewater, NJ 08907 Karen A. Johnson Vice President 501 Boylston Street Boston, MA 02116 Deron J. Richens Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Name and Principal Business Address Positions and Offices with Depositor ----------------------------------- ------------------------------------------ Roberto Baron Vice President 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Kenneth J. Eiger Vice President 13045 Tesson Ferry Road St. Louis, MO 63128 Garth A. Bernard Vice President 501 Boylston Street Boston, MA 02116 Gregory E. Illson Vice President 501 Boylston Street Boston, MA 02116 Bennett D. Kleinberg Vice President 185 Asylum Street Hartford, CT 06103 Lisa S. Kuklinski Vice President 260 Madison Avenue New York, NY 10016 Anthony J. Williamson Treasurer 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Jeffrey Altman Vice President 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Jeffrey P. Halperin Vice President 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 ORGANIZATIONAL STRUCTURE OF METLIFE, INC. AND SUBSIDIARIES AS OF JUNE 30, 2006 The following is a list of subsidiaries of MetLife, Inc. updated as of June 30, 2006. Those entities which are listed at the left margin (labeled with capital letters) are direct subsidiaries of MetLife, Inc. Unless otherwise indicated, each entity which is indented under another entity is a subsidiary of that other entity and, therefore, an indirect subsidiary of MetLife, Inc. Certain inactive subsidiaries have been omitted from the MetLife, Inc. organizational listing. The voting securities (excluding directors' qualifying shares, (if any)) of the subsidiaries listed are 100% owned by their respective parent corporations, unless otherwise indicated. The jurisdiction of domicile of each subsidiary listed is set forth in the parenthetical following such subsidiary. A. MetLife Group, Inc. (NY) B. MetLife Bank National Association (USA) C. Exeter Reassurance Company, Ltd. (Bermuda) D. MetLife Taiwan Insurance Company Limited (Taiwan) E. Metropolitan Tower Life Insurance Company (DE) 1. TH Tower NGP, LLC (DE) 2. Partners Tower, L.P. (DE) - a 99% limited partnership interest of Partners Tower, L.P. is held by Metropolitan Tower Life Insurance Company and 1% general partnership interest is held by TH Tower NGP, LLC (DE) 3. TH Tower Leasing, LLC (DE) 4. MetLife Retirement Services LLC (NJ) a) MetLife Investment Funds Services LLC (NJ) b) MetLife Investment Funds Management LLC (NJ) c) MetLife Associates LLC (DE) 1) CitiStreet Equities LLC (NJ) 2) MetLife Associates of Montana LLC (MT) 3) MetLife Associates of Texas, Inc. (TX) -- All outstanding shares of voting stock (the "Shares") of Metlife Associates of Texas, Inc. ("MAT") are owned by a MetLife employee who is a resident of Texas (the "Employee Shareholder"). The Employee Shareholder, along with MAT and Metlife Associates LLC ("Associates"), are parties to a Close Corporation Agreement. The Close Corporation Agreement contains, among other provisions, (i) restrictions on transfer of the Shares that effectively give Associates the power to control the disposition of the Shares, and (ii) provisions requiring the Employee Shareholder to elect as directors of MAT the individuals recommended by Associates. 4) MetLife Associates Insurance Agency of Massachusetts LLC (MA) F. MetLife Pensiones S.A. (Mexico)- 97.4738% is owned by Metlife, Inc. and 2.5262% is owned by Metropolitan Asset Management Corporation. G. MetLife Chile Inversiones Limitada (Chile)- 99.9999999% is owned by MetLife, Inc. and 0.0000001% is owned by Natiloportem Holdings, Inc. 1. MetLife Chile Seguros de Vida S.A. (Chile)- 99.99% is owned by MetLife Chile Inversiones Limitada, and 0.01% is owned by MetLife International Holdings, Inc. a) MetLife Chile Administradora de Mutuos Hipotecarios S.A. (Chile)- 99.99% is owned by MetLife Chile Seguros de Vida S.A., and 0.01% is owned by MetLife Chile Inversiones Limitada. H. MetLife Mexico S.A. (Mexico)- 98.70541% is owned by Metlife, Inc., 1.27483% is owned by Metropolitan Asset Management Corporation and 0.01976% is owned by Metlife International Holdings, Inc. 1. MetLife Afore, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Mexico S.A. (Mexico) and 0.01% is owned by MetLife Pensiones S.A. a) Met1 SIEFORE, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. (Mexico) b) Met2 SIEFORE, S.A. de C.V. (Mexico)- 99.99% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. (Mexico) c) Met3 SIEFORE, S.A. de C.V. (Mexico)- 99.9% is owned by MetLife Afore, S.A. de C.V. and 0.01% is owned by MetLife Mexico S.A. (Mexico) I. MetLife Mexico Servicios, S.A. de C.V. (Mexico)- 98% is owned by MetLife, Inc. and 2% is owned by MetLife International Holdings, Inc. J. Metropolitan Life Seguros de Vida S.A. (Uruguay) K. MetLife Securities, Inc. (DE) L. Enterprise General Insurance Agency, Inc. (DE) 1. MetLife General Insurance Agency of Texas, Inc. (DE) 2. MetLife General Insurance Agency of Massachusetts, Inc. (MA) 1 M. Metropolitan Property and Casualty Insurance Company (RI) 1. Metropolitan General Insurance Company (RI) 2. Metropolitan Casualty Insurance Company (RI) 3. Metropolitan Direct Property and Casualty Insurance Company (RI) 4. Met P&C Managing General Agency, Inc. (TX) 5. MetLife Auto & Home Insurance Agency, Inc. (RI) 6. Metropolitan Group Property and Casualty Insurance Company (RI) a) Metropolitan Reinsurance Company (U.K.) Limited (United Kingdom) 7. Metropolitan Lloyds, Inc. (TX) a) Metropolitan Lloyds Insurance Company of Texas (TX)- Metropolitan Lloyds Insurance Company of Texas, an affiliated association, provides automobile, homeowner and related insurance for the Texas market. It is an association of individuals designated as underwriters. Metropolitan Lloyds, Inc., a subsidiary of Metropolitan Property and Casualty Insurance Company, serves as the attorney-in-fact and manages the association. 8. Economy Fire & Casualty Company (IL) a) Economy Preferred Insurance Company (IL) b) Economy Premier Assurance Company (IL) N. Cova Corporation (MO) 1. Texas Life Insurance Company (TX) 2. Cova Life Management Company (DE) O. MetLife Investors Insurance Company (MO) 1. MetLife Investors Insurance Company of California (CA) P. First MetLife Investors Insurance Company (NY) Q. Walnut Street Securities, Inc. (MO) 1. Walnut Street Advisers, Inc. (MO) R. Newbury Insurance Company, Limited (BERMUDA) S. MetLife Investors Group, Inc. (DE) 1. MetLife Investors USA Insurance Company (DE) 2. MetLife Investors Distribution Company (MO) 3. Met Investors Advisory, LLC (DE) 4. MetLife Investors Financial Agency, Inc. (TX) 2 T. MetLife International Holdings, Inc. (DE) 1. MetLife Mexico Cares, S.A. de C.V. (Mexico) a) Fundacion MetLife Mexico, A.C. (Mexico) 2. Natiloportem Holdings, Inc. (DE) a) Servicios Administrativos Gen, S.A. de C.V. (Mexico) (1) MLA Comercial, S.A. de C.V. (Mexico) 99% is owned by Servicios Administrativos Gen, S.A. de C.V. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. (2) MLA Servicios, S.A. de C.V. (Mexico) 99% is owned by Servicios Administrativos Gen, S.A. de C.V. and 1% is owned by MetLife Mexico Cares, S.A. de C.V. 3. MetLife India Insurance Company Private Limited (India)- 26% is owned by MetLife International Holdings, Inc. and 74% is owned by third parties. 4. Metropolitan Life Insurance Company of Hong Kong Limited (Hong Kong)- 99.9987% is owned by MetLife International Holdings, Inc. and 0.0013% is owned by Natiloporterm Holdings, Inc. 5. Metropolitan Life Seguros de Retiro S.A. (Argentina)- 95.2319% is owned by MetLife International Holdings, Inc. and 4.7680% is owned by Natiloportem Holdings, Inc. 6. Metropolitan Life Seguros de Vida S.A. (Argentina)- 95.2499% is owned by MetLife International Holdings, Inc. and 4.7473% is owned by Natiloportem Holdings, Inc. 7. MetLife Insurance Company of Korea Limited (South Korea)- 21.22% of MetLife Insurance Company of Korea Limited is owned by MetLife, Mexico, S.A. 8. Metropolitan Life Seguros e Previdencia Privada S.A. (Brazil)- 99.999999% is owned by MetLife International Holdings, Inc. and 0.000001% is owned by Natiloportem Holdings, Inc. 9. MetLife Global, Inc. (DE) 10. MetLife Administradora de Fundos Multipatrocinados Ltda (Brazil) - 95.4635% is owned by MetLife International Holdings, Inc. and 4.5364% is owned by Natiloportem Holdings, Inc. 11. MetLife Insurance Limited (United Kingdom) 12. MetLife General Insurance Limited (Australia) 13. MetLife Limited (United Kingdom) 14. MetLife Insurance S.A./NV (Belgium) - 99.9% is owned by MetLife International Holdings, Inc. and 0.1% is owned by third parties. 15. MetLife Services Limited (United Kingdom) 16. Siembra Seguros de Vida S.A. (Argentina) - 97.9327% is owned by MetLife International Holdings, Inc. and 2.0672% is owned by Natiloportem Holdings, Inc. 17. MetLife International Insurance Ltd. (Bermuda) 18. MetLife Insurance Limited (Australia) a) MetLife Insurance and Investment Trust (Australia) b) MetLife Investments Pty Limited (Australia) c) MetLife Trustee Pty Limited (Australia) d) MetLife Services (Singapore) PTE Limited (Australia) 19. Siembra Seguros de Retiro S.A. (Argentina) - 96.8819% is owned by MetLife International Holdings, Inc. and 3.1180% is owned by; Natiloportem Holdings, Inc. 20. Best Market S.A. (Argentina) - 5% of the shares are held by Natiloportem Holdings, Inc., and 94.9999% is owned by MetLife International Holdings Inc. 21. Compania Previsional MetLife S.A. (Brazil) - 95.4635% is owned by MetLife International Holdings, Inc. and 4.5364% is owned by Natiloportem Holdings, Inc. (a) Met AFJP S.A. (Argentina) - 75.4088% of the shares of Met AFJP S.A. are held by Compania Previsional MetLife SA, 19.5912% is owned by Metropolitan Life Seguros de Vida SA, 3.9689% is held by Natiloportem Holdings, Inc., and 1.0310% is held by Metropolitan Life Seguros de Retiro SA. 22. MetLife Worldwide Holdings, Inc. (DE) a) MetLife Towarzystwo Ubezpieczen na Zycie S.A. (Poland) b) CDMK, Inc. (Korea) c) MetLife Reinsurance (Bermuda) Ltd. (Bermuda) d) MetLife Direct Co., Ltd. (Japan) e) MetLife Vida e Previdencia S.A. (Brazil) U. Metropolitan Life Insurance Company (NY) 1. 334 Madison Avenue BTP-D Holdings, LLC (DE) 2. 334 Madison Avenue BTP-E Holdings, LLC (DE) 3. 334 Madison Euro Investments, Inc. (DE) a) Park Twenty Three Investments Company (United Kingdom)- 1% voting control of Park Twenty Three Investments Company is held by St. James Fleet Investments Two Limited. (1) Convent Station Euro Investments Four Company (United Kingdom)- 1% voting control of Convent Station Euro Investments Four Company is held by 334 Madison Euro Investments, Inc. as nominee for Park Twenty Three Investments Company. 4. St. James Fleet Investments Two Limited (Cayman Islands)- 34% of the shares of St. James Fleet Investments Two Limited is held by Metropolitan Life Insurance Company. 5. One Madison Investments (Cayco) Limited (Cayman Islands)- 10.1% voting control of One Madison Investments (Cayco) Limited is held by Convent Station Euro Investments Four Company. 6. 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. 7. GA Holding Corp. (MA) 3 8. L/C Development Corporation (CA) 9. Thorngate, LLC (DE) 10. Alternative Fuel I, LLC (DE) 11. Transmountain Land & Livestock Company (MT) 12. MetPark Funding, Inc. (DE) 13. HPZ Assets LLC (DE) 14. Missouri Reinsurance (Barbados), Inc. (Barbados) 15. Metropolitan Tower Realty Company, Inc. (DE) a) Midtown Heights, LLC (DE) 16. MetLife (India) Private Ltd. (India) 17. Metropolitan Marine Way Investments Limited (Canada) 18. MetLife Private Equity Holdings, LLC (DE) 19. 23rd Street Investments, Inc. (DE) a) Mezzanine Investment Limited Partnership-BDR (DE). Metropolitan Life Insurance Company holds a 99% limited partnership interest in Mezzanine Investment Limited Partnership-BDR and 23rd Street Investments, Inc. is a 1% general partner. b) Mezzanine Investment Limited Partnership-LG (DE). 23rd Street Investments, Inc. is a 1% general partner of Mezzanine Investment Limited Partnership-LG. Metropolitan Life Insurance Company holds a 99% limited partnership interest in Mezzanine Investment Limited Partnership-LG. 20. Metropolitan Realty Management, Inc. (DE) 21. Dewey Square South, LLC (NY) 22. Hyatt Legal Plans, Inc. (DE) a) Hyatt Legal Plans of Florida, Inc. (FL) 23. MetLife Holdings, Inc. (DE) a) MetLife Credit Corp. (DE) b) MetLife Funding, Inc. (DE) 4 24. Bond Trust Account A (MA) 25. Metropolitan Asset Management Corporation (DE) a) MetLife Capital Credit L.P. (DE)- 90% of MetLife Capital Credit L.P. is held directly by Metropolitan Life Insurance Company. b) MetLife Capital Limited Partnership (DE)- 73.78% Limited Partnership interest is held directly by Metropolitan Life Insurance Company. c) MetLife Investments Asia Limited (Hong Kong)- One share of MetLife Investments Asia Limited is held by W&C Services, Inc., a nominee of Metropolitan Asset Management Corporation. d) MetLife Investments Limited (United Kingdom)- 23rd Street Investments, Inc. holds one share of MetLife Investments Limited and LA Investments, S.A. and 1% of MetLife Latin America Asesorias e Inversiones Limitada. e) LA Investments, S.A. (Argentina)- 23rd Street Investments, Inc. holds one share of MetLife Investments Limited and LA Investments, S.A. and 1% of MetLife Latin America Asesorias e Inversiones Limitada. f) MetLife Latin America Asesorias e Inversiones Limitada (Chile)- 23rd Street Investments, Inc. holds one share of MetLife Investments Limited and LA Investments, S.A. and 1% of MetLife Latin America Asesorias e Inversiones Limitada. 26. New England Life Insurance Company (MA) a) MetLife Advisers, LLC (MA) b) New England Securities Corporation (MA) c) Omega Reinsurance Corporation (AZ) 27. GenAmerica Financial, LLC (MO) a) GenAmerica Capital I (DE) b) General American Life Insurance Company (MO) (1) GenAmerica Management Corporation (MO) 5 (3) Reinsurance Group of America, Incorporated (MO) - (52.8%) (a) Reinsurance Company of Missouri, Incorporated (MO) (i) Timberlake Financial, L.L.C. (DE) (A) Timberlake Reinsurance Company II (SC) (ii) RGA Reinsurance Company (MO) (A) Fairfield Management Group, Inc. (MO) (aa) Reinsurance Partners, Inc. (MO) (b) RGA Worldwide Reinsurance Company, Ltd. (Barbados) (c) RGA Sigma Reinsurance SPC (Cayman Islands) (d) RGA Americas Reinsurance Company, Ltd. (Barbados) (e) RGA Reinsurance Company (Barbados) Ltd. (Barbados) (80%) (i) RGA Financial Group, L.L.C. (DE)- RGA Reinsurance Company also owns a 20% non- equity membership in RGA Financial Group, L.L.C. (f) RGA Life Reinsurance Company of Canada (Canada) (g) RGA International Corporation (Nova Scotia) (h) RGA Holdings Limited (U.K.) (United Kingdom) (i) RGA UK Services Limited (United Kingdom) (ii) RGA Capital Limited U.K. (United Kingdom) (iii) RGA Reinsurance (UK) Limited (United Kingdom) (iv) RGA Services India Private Limited (India) (i) RGA South African Holdings (Pty) Ltd. (South Africa) (i) RGA Reinsurance Company of South Africa Limited (South Africa) (j) RGA Australian Holdings PTY Limited (Australia) (i) RGA Reinsurance Company of Australia Limited (Australia) (ii) RGA Asia Pacific PTY, Limited (Australia) (k) General American Argentina Seguros de Vida, S.A. (Argentina) 6 (l) RGA Technology Partners, Inc. (MO) (m) RGA International Reinsurance Company (Ireland) (n) RGA Capital Trust I (DE) (o) RGA Global Reinsurance Company, Ltd. (Bermuda) 28. Corporate Real Estate Holdings, LLC (DE) 29. Ten Park SPC (CAYMAN ISLANDS ) - 1% voting control of Ten Park SPC is held by Metropolitan Asset Management Corporation 30. MetLife Tower Resources Group, Inc. (DE) 31. Headland - Pacific Palisades, LLC (CA) 32. Headland Properties Associates (CA) 33. Krisman, Inc. (MO) 34. Special Multi-Asset Receivables Trust (DE) 35. White Oak Royalty Company (OK) 36. 500 Grant Street GP LLC (DE) 37. 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 38. MetLife Canada/MetVie Canada (Canada) V. MetLife Capital Trust II (DE) W. MetLife Capital Trust III (DE) X. MetLife Insurance Company of Connecticut (Life Department) (Accident Department) (CT) 1. 190 S.LaSalle Associates L.L.C. (DE) - 50% is owned by MetLife Insurance Company of Connecticut and 50% is owned by a third party 2. 440 South LaSalle LLC (DE) 3. Pilgrim Investments Oakmont Lane, LLC (DE) - 50% is owned by MetLife Insurance Company of Connecticut and 50% is owned by a third party 4. Pilgrim Alternative Investments Opportunity Fund I, LLC (DE) - 67% is owned by MetLife Insurance Company of Connecticut, and 33% is owned by third party 5. 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 6. Pilgrim Investments Highland Park, LLC (DE) 7. Pilgrim Investments Schaumberg Windy Point, LLC (DE) 8. Pilgrim Investments York Road, LLC (DE) 9. Euro TI Investments LLC (DE) 10. Greenwich Street Investments, LLC (DE) a) Greenwich Street Capital Offshore Fund, Ltd. (Virgin Islands) b) Greenwich Street Investments, L.P. (DE) 11. Hollow Creek, L.L.C. (CT) 12. One Financial Place Corporation (DE) - 100% is owned in the aggregate by MetLife Insurance Company of Connecticut and MetLife Life and Annuity Company of Connecticut. a) One Financial Place, LP (DE) 13. One Financial Place Holdings, LLC (DE)-100% is owned in the aggregate by MetLife Insurance Company of Connecticut and MetLife Life and Annuity Company of Connecticut. 14. Plaza LLC (CT) a) Travelers Asset Management International Company LLC (NY) b) Tower Square Securities, Inc. (CT) 1) Tower Square Securities Insurance Agency of Alabama, Inc. (AL) 2) Tower Square Securities Insurance Agency of Massachusetts, Inc. (MA) 3) Tower Square Securities Insurance Agency of New Mexico, Inc. (NM) 4) Tower Square Securities Insurance Agency of Ohio, Inc. (OH) (99%) 5) Tower Square Securities Insurance Agency of Texas, Inc. (TX) c) MLI Distribution LLC (DE) d) Travelers Investment Adviser, Inc. (DE) 15. TIC European Real Estate LP, LLC (DE) 16. MetLife European Holdings, Inc. (UK) a) MetLife Europe Limited, Inc. (UK) b) MetLife Pensions Trustees Limited (UK) 17. Travelers European Investments LLC (CT) 18. Travelers International Investments Ltd. (Cayman Islands) 19. Tribeca Citigroup Investments Ltd. (Cayman Islands) (68%) - 68% is owned by MetLife Insurance Company of Connecticut, 4% is owned by MetLife Life and Annuity Company of Connecticut and 28% is owned by a third party. a) Tribeca Global Convertible Investments Ltd. (Cayman Islands) (83%) 20. Trumbull Street Equity Investments LLC (DE) a) Tandem EGI/C Investments, L.P. (DE) - The General Partner is Trumbull Street Equity Investments LLC. 21. MetLife Life and Annuity Company of Connecticut (CT) a) Euro TL Investments LLC (DE) b) SSB Private Selections, LLC (DE) (50%) -- SSB Private Selections, LLC ("SSB") is 45% owned by MIC and 5% owned by MLAC (the remaining 50% of SSB is owned by a third party). The capital commitment of SSB in Solomon Smith Barney Private Selection Fund I, LLC represents 24.5% of total commitments. 1) Solomon Smith Barney Private Selection Fund I, LLC (NY) 22. TLA Holdings LLC (DE) a) The Prospect Company (DE) 1) Panther Valley, Inc. (NJ) 23. TRAL & Co. (CT) - TRAL & Co.is a general partnership. Its partners are MetLife Insurance Company of Connecticut and MetLife Life and Annuity Company of Connecticut. 24. Tribeca Distressed Securities L.L.C. (DE) Y. MetLife Reinsurance Company of South Carolina (SC) Z. Citicorp Life Insurance Company (AZ) 1. First Citicorp Life Insurance Company (NY) 2. Euro CL Investments LLC (DE) AA. Trumbull Street Investments LLC (DE) BB. MetLife Standby I, LLC (DE) CC. MetLife Exchange Trust I (DE) The voting securities (excluding directors' qualifying shares, if any) of each subsidiary shown on the organizational chart are 100% owned by their respective parent corporation, unless otherwise indicated. In addition to the entities shown on the organizational chart, MetLife, Inc. (or where indicated, a subsidiary) also owns interests in the following entities: 1) Metropolitan Life Insurance Company owns varying interests in certain mutual funds distributed by its affiliates. These ownership interests are generally expected to decrease as shares of the funds are purchased by unaffiliated investors. 2) Metropolitan Life Insurance Company indirectly owns 100% of the non-voting preferred stock of Nathan and Lewis Associates Ohio, Incorporated, an insurance agency. 100% of the voting common stock of this company is held by an individual who has agreed to vote such shares at the direction of N.L. HOLDING CORP. (DEL), a direct wholly owned subsidiary of MetLife, Inc. 3) Mezzanine Investment Limited Partnerships ("MILPs"), Delaware limited partnerships, are investment vehicles through which investments in certain entities are held. A wholly owned subsidiary of Metropolitan Life Insurance Company serves as the general partner of the limited partnerships and Metropolitan Life Insurance Company directly owns a 99% limited partnership interest in each MILP. The MILPs have various ownership and/or debt interests in certain companies. 4) New England Life Insurance Company ("NELICO"), owns 100% of the voting stock of Omega Reinsurance Corporation. NELICO does not have a financial interest in this subsidiary. 5) The Metropolitan Money Market Pool and MetLife Intermediate Income Pool are pass-through investment pools, of which Metropolitan Life Insurance Company and/or its subsidiaries and/or affiliates are general partners. NOTE: THE METLIFE, INC. ORGANIZATIONAL CHART DOES NOT INCLUDE REAL ESTATE JOINT VENTURES AND PARTNERSHIPS OF WHICH METLIFE, INC. AND/OR ITS SUBSIDIARIES IS AN INVESTMENT PARTNER. IN ADDITION, CERTAIN INACTIVE SUBSIDIARIES HAVE ALSO BEEN OMITTED. 7 ITEM 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 Investors Group, Inc. 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. ITEM 27. NUMBER OF CONTRACT OWNERS Not Applicable. 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 Variable Annuity Account One MetLife Investors Variable Annuity Account Five MetLife Investors Variable Life Account One MetLife Investors Variable Life Account Five MetLife Investors USA Variable Life Account A First MetLife Investors Variable Annuity Account One General American Separate Account Eleven General American Separate Acocunt Twenty-Eight General American Separate Account Twenty-Nine General American Separate Account Two Security Equity Separate Account Twenty-Six Security Equity Separate Account Twenty-Seven (b) MetLife Investors Distribution Company is the principal underwriter for the Contracts. The following persons are the officers and directors of MetLife Investors Distribution Company. The principal business address for MetLife Investors Distribution Company is 5 Park Plaza, Suite 1900, Irvine, CA 92614. NAME AND PRINCIPAL BUSINESS ADDRESS POSITIONS AND OFFICES WITH UNDERWRITER ------------------------------------- ---------------------------------------- Michael K. Farrell Director 5 Park Plaza Suite 1900 Irvine, CA 92614 Craig W. Markham Director and Vice President 13045 Tesson Ferry Road St. Louis, MO 63128 William J. Toppeta Director 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Paul A. Sylvester President, National Sales 10 Park Avenue Manager-Annuities & LTC Morristown, NJ 07962 Elizabeth M. Forget Executive Vice President, Investment 260 Madison Avenue Fund Management & Marketing New York, NY 10016 Paul A. LaPiana Executive Vice President, National Sales 5 Park Plaza Manager-Life Suite 1900 Irvine, CA 92614 Richard C. Pearson Executive Vice President, 5 Park Plaza General Counsel and Secretary Suite 1900 Irvine, CA 92614 Peter Gruppuso Vice President and Chief Financial 485-E US Highway 1 South Officer Iselin, NJ 08830 Leslie Sutherland Senior Vice President, Channel 1 MetLife Plaza Head-Broker/Dealers Long Island City, NY 11101 NAME AND PRINCIPAL BUSINESS ADDRESS POSITIONS AND OFFICES WITH UNDERWRITER ------------------------------------- ---------------------------------------- Edward C. Wilson Senior Vice President, Channel 5 Park Plaza Head-Wirehouse Suite 1900 Irvine, CA 92614 Douglas P. Rodgers Senior Vice President, Channel Head-LTC 10 Park Avenue, 1st Floor Morristown, NJ 07962 Curtis Wohlers Senior Vice President, Channel 1 MetLife Plaza Head-Planners 27-01 Queens Plaza North Long Island City, NY 11101 Myrna F. Solomon Senior Vice President, Channel 501 Boylston Street Head-Banks Boston, MA 02116 Andrew Aiello Senior Vice President, Channel 1 MetLife Plaza Head-National Accounts 27-01 Queens Plaza North Long Island City, NY 11101 Anthony J. Williamson Treasurer 1 MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 Debora L. Buffington Vice President, Director of Compliance 5 Park Plaza Suite 1900 Irvine, CA 92614 David DeCarlo Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Anthony J. Dufault Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Paul M. Kos Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 James R. Fitzpatrick Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Deron J. Richens Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Cathy Sturdivant Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 Paulina Vakouros Vice President 5 Park Plaza Suite 1900 Irvine, CA 92614 NAME AND PRINCIPAL BUSINESS ADDRESS POSITIONS AND OFFICES WITH UNDERWRITER ------------------------------------- --------------------------------------- Charles M. Deuth Vice President, National Accounts 5 Park Plaza Suite 1900 Irvine, CA 92614 (c) Compensation from the Registrant. The following commissions and other compensation were received by the Distributor, directly or indirectly, from the Registrant during the Registrant's last fiscal year:
(1) (2) (3) (4) (5) Net Underwriting Discounts And Compensation Brokerage Other Name of Principal Underwriter Commissions On Redemption Commissions Compensation ----------------------------------------- ----------------- --------------- ------------- ------------- MetLife Investors Distribution Company $ 176,095,864 $ 0 $ 0 $ 0
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS The following companies will maintain possession of the documents required by Section 31(a) of the Investment Company Act of 1940 and the Rules thereunder: (a) Registrant (b) MetLife Annuity Operations, 27000 Westown Parkway, Bldg. 4, Suite 200, West Des Moines, IA 50266 (c) State Street Bank & Trust Company, 225 Franklin Street, Boston, MA 02110 (d) MetLife Investors Distribution Company, 5 Park Plaza, Suite 1900, Irvine, CA 92614 (e) MetLife Investors Insurance Company, 5 Park Plaza, Suite 1900, Irvine, CA 92614 (f) MetLife, 4010 Boy Scout Blvd., Tampa, FL 33607 (g) MetLife, 501 Boylston Street, Boston, MA 02116 (h) MetLife, 200 Park Avenue, New York, NY 10166 (i) MetLife, 1125 17th Street, Denver, CO 80202 ITEM 31. MANAGEMENT SERVICES Not Applicable. ITEM 32. UNDERTAKINGS a. Registrant hereby undertakes to file a post-effective amendment to this registration statement as frequently as is necessary to ensure that the audited financial statements in the registration statement are never more than sixteen (16) months old for so long as payment under the variable annuity contracts may be accepted. b. Registrant hereby undertakes to include either (1) as part of any application to purchase a contract offered by the Prospectus, a space that an applicant can check to request a Statement of Additional Information, or (2) a postcard or similar written communication affixed to or included in the Prospectus that the applicant can remove to send for a Statement of Additional Information. c. Registrant hereby undertakes to deliver any Statement of Additional Information and any financial statement required to be made available under this Form promptly upon written or oral request. REPRESENTATIONS MetLife Investors USA Insurance Company ("Company") hereby represents that the fees and charges deducted under the Contracts described in the Prospectus, in the aggregate, are reasonable in relation to the services rendered, the expenses to be incurred and the risks assumed by the Company. The Company hereby represents that it is relying upon a No-Action Letter issued to the American Council of Life Insurance dated November 28, 1988 (Commission ref. IP-6-88) and that the following provisions have been complied with: 1. Include appropriate disclosure regarding the redemption restrictions imposed by Section 403(b)(11) in each registration statement, including the prospectus, used in connection with the offer of the contract; 2. Include appropriate disclosure regarding the redemption restrictions imposed by Section 403(b)(11) in any sales literature used in connection with the offer of the contract; 3. Instruct sales representatives who solicit participants to purchase the contract specifically to bring the redemption restrictions imposed by Section 403(b)(11) to the attention of the potential participants; 4. Obtain from each plan participant who purchases a Section 403(b) annuity contract, prior to or at the time of such purchase, a signed statement acknowledging the participant's understanding of (1) the restrictions on redemption imposed by Section 403(b)(11), and (2) other investment alternatives available under the employer's Section 403(b) arrangement to which the participant may elect to transfer his contract value. SIGNATURES As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has caused this Registration Statement to be signed on its behalf in the City of Irvine and State of California on this 10th day of October 2006. METLIFE INVESTORS USA SEPARATE ACCOUNT A (Registrant) By: METLIFE INVESTORS USA INSURANCE COMPANY By: /s/ Richard C. Pearson ----------------------------------------- Richard C. Pearson Executive Vice President, General Counsel and Secretary METLIFE INVESTORS USA INSURANCE COMPANY (Depositor) By: /s/ Richard C. Pearson ----------------------------------------- Richard C. Pearson Executive Vice President, General Counsel and Secretary As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated on October 10, 2006. /s/ Michael K. Farrell* -------------------------------- Chairman of the Board, Chief Executive Michael K. Farrell Officer, President and Director /s/ James P. Bossert* Executive Vice President and Director -------------------------------- James P. Bossert /s/ Charles V. Curcio* Vice President, Finance (principal financial -------------------------------- officer and principal accounting officer) Charles V. Curcio /s/ Susan A. Buffum* Director -------------------------------- Susan A. Buffum /s/ Michael R. Fanning* Director -------------------------------- Michael R. Fanning /s/ Elizabeth M. Forget* Director -------------------------------- Elizabeth M. Forget /s/ George Foulke* Director -------------------------------- George Foulke /s/ Paul Sylvester* Director -------------------------------- Paul Sylvester /s/ Richard C.Pearson* Director -------------------------------- Richard C. Pearson /s/ Jeffrey A. Tupper* Director -------------------------------- Jeffrey A. Tupper *By: /s/ Michele H. Abate ---------------------------------- Michele H. Abate, Attorney-In-Fact October 10, 2006 * 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 Initial Registration Statement on Form N-4 (File Nos. 333-137369 and 811-03365 filed as Exhibit 13 on September 15, 2006. INDEX TO EXHIBITS To be filed by Amendment.