As filed with the Securities and Exchange Commission on March 30, 2015

Registration No. 333-167019

811-4113

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-4

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

POST-EFFECTIVE AMENDMENT NO. 6

and/or

REGISTRATION STATEMENT

UNDER

THE INVESTMENT COMPANY ACT OF 1940

AMENDMENT NO. 260

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

SEPARATE ACCOUNT H

(formerly, The Manufacturers Life Insurance Company (U.S.A.)

Separate Account H)

(Exact name of Registrant)

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

(formerly, The Manufacturers Life Insurance Company (U.S.A.))

(Name of Depositor)

38500 Woodward Avenue

Bloomfield Hills, Michigan 48304

(Address of Depositor’s Principal Executive Offices)

(617) 663-3000

(Depositor’s Telephone Number Including Area Code)

Thomas J. Loftus, Esquire

John Hancock Life Insurance Company (U.S.A.)

601 Congress Street

Boston, MA 02210-2805

(Name and Address of Agent for Service)

Copy to:

Title of Securities Being Registered: Variable Annuity Insurance Contracts

It is proposed that this filing will become effective:

¨ immediately upon filing pursuant to paragraph(b) of Rule 485

x on April 27, 2015, pursuant to paragraph(b) of Rule 485

¨ 60 days after filing pursuant to paragraph(a)(1) of Rule 485

¨ On                     , pursuant to paragraph(a)(1) of Rule 485

If appropriate, check the following box:

¨ this post-effective amendment designates a new effective date for a previously filed post-effective amendment

PART A

INFORMATION REQUIRED IN A PROSPECTUS

GIFL Select IRA Rollover Variable Annuity Prospectus

April 27, 2015

This Prospectus describes interests in GIFL Select IRA Rollover single payment, deferred Variable Annuity contracts (singly, a “Contract” and collectively, the “Contracts”) issued by John Hancock Life Insurance Company (U.S.A.) (“John Hancock USA”) in all jurisdictions except New York, and John Hancock Life Insurance Company of New York (“John Hancock New York”) in New York. Unless otherwise specified, “we,” “us,” “our,” or a “Company” refers to the applicable issuing Company of a Contract. You, the Contract Owner, should refer to the first page of your GIFL Select IRA Rollover Variable Annuity Contract for the name of your issuing Company.

We offer the Contracts to participants who wish to roll over distributions from a GIFL Select Retirement Plan funded by a John Hancock USA or John Hancock New York group annuity contract with a Guaranteed Income for Life (“GIFL”) Select lifetime income benefit feature to a traditional IRA or to a Roth IRA.

Variable Investment Options. When you purchase a Contract, you invest your GIFL Select Retirement Plan distribution in the Variable Investment Options we make available under the Contracts. After that, you may transfer Contract Values among Variable Investment Options to the extent permitted under your Contract. We measure your Contract Value and Variable Annuity payments according to the investment performance of applicable Subaccounts of John Hancock Life Insurance Company (U.S.A.) Separate Account H or, in the case of John Hancock New York, applicable Subaccounts of John Hancock Life Insurance Company of New York Separate Account A (singly, a “Separate Account” and collectively, the “Separate Accounts”). Each Subaccount invests in one of the following Portfolios of John Hancock Variable Insurance Trust that corresponds to a Variable Investment Option that we make available on the date of this Prospectus:

JOHN HANCOCK VARIABLE INSURANCE TRUST

Core Strategy Trust

Lifestyle Balanced MVP

Lifestyle Balanced PS Series

Lifestyle Conservative MVP

Lifestyle Conservative PS Series

Lifestyle Growth MVP

Lifestyle Growth PS Series

Lifestyle Moderate MVP

Lifestyle Moderate PS Series

Money Market Trust¹

Ultra Short Term Bond Trust

¹ The Money Market Variable Investment Option is available only during the initial inspection period for Contracts issued in California to purchasers age 60 and older.

Contracts are not deposits or obligations of, or insured, guaranteed or endorsed by, any bank, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency. Please read this Prospectus carefully and keep it for future reference. It contains information about the Separate Accounts and the Variable Investment Options that you should know before investing. The Contracts have not been approved or disapproved by the Securities and Exchange Commission (“SEC”). Neither the SEC nor any state has determined whether this Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)		JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK
John Hancock Annuities Service Center		John Hancock Annuities Service Center
For Applications Only:	Mailing Address	For Applications Only:	Mailing Address
380 Stuart Street, 5th Floor	PO Box 111	380 Stuart Street, 5th Floor	PO Box 111
Boston, MA 02116	Boston, MA 02117-0111	Boston, MA 02116	Boston, MA 02117-0111
www.jhrollover.com/select		www.jhrollover.com/select
For All Other Transactions:	Mailing Address	For All Other Transactions:	Mailing Address
30 Dan Road – Suite 55444	P.O. Box 55444	30 Dan Road – Suite 55444	P.O. Box 55445
Canton, MA 02021-2809	Boston, MA 02205-5444	Canton, MA 02021-2809	Boston, MA 02205-5445
(800) 344-1029		(800) 551-2078
www.jhannuities.com		www.jhannuitiesnewyork.com

0415:RO GSPPRO GIFL Select IRA Rollover

Table of Contents

I. GLOSSARY	1
II. OVERVIEW	4
III. FEE TABLES	11
Examples	12
IV. GENERAL INFORMATION ABOUT US, THE SEPARATE ACCOUNTS AND THE PORTFOLIOS	14
The Companies	14
The Separate Accounts	14
The Portfolios	15
Voting Interest	19
V. DESCRIPTION OF THE CONTRACT	20
Eligibility	20
The Purchase Payment	20
Variable Investment Options and Accumulation Units	20
Value of Accumulation Units	21
Net Investment Factor	21
Transfers Among Variable Investment Options	21
Maximum Number of Variable Investment Options	22
Telephone and Electronic Transactions	22
Special Transfer Services – Asset Rebalancing Program	23
Withdrawals	23
Signature Guarantee Requirements for Surrenders and Withdrawals	24
Special Withdrawal Services – The Income Made Easy Program	24
GIFL Select Guaranteed Lifetime Income Withdrawal Benefit	24
Overview	24
Impact of Withdrawals after the Lifetime Income Date	25
Increases in the GIFL Select Feature	26
Determination of the Lifetime Income Date	28
Determination of a Single Life, Continuation Single Life or Spousal Lifetime Income Amount	28
Tax Considerations	29
Pre-Authorized Withdrawals – The Income Made Easy Program	29
Life Expectancy Distribution Program	30
Settlement Phase	30
Distribution at Death of Annuitant	31
Annuitization Provisions	33

General	33
Annuity Options	33
Determination of Amount of the First Variable Annuity Payment	34
Annuity Units and the Determination of Subsequent Variable Annuity Payments	34
Transfers after Annuity Commencement Date	35
Distributions upon Death of Annuitant after Annuity Commencement Date	35
Other Contract Provisions	35
Initial Inspection Period	35
Ownership	35
Co-Annuitant	36
Beneficiary	36
Spouse	36
Modification	36
Our Approval	36
Misstatement and Proof of Age, Sex or Survival	36
VI. CHARGES AND DEDUCTIONS	37
Asset-Based Charges	37
Administration Fee	37
Mortality and Expense Risks Fee	37
GIFL Select Fee	37
Premium Taxes	38
VII. FEDERAL TAX MATTERS	39
Introduction	39
Our Tax Status	39
General Information Regarding Purchase Payments	39
Traditional IRAs	40
Roth IRAs	41
Conversion or Rollover to a Roth IRA	42
Puerto Rico Contracts Issued to Fund Retirement Plans	42
VIII. GENERAL MATTERS	44
Distribution of Contracts	44
Standard Compensation	44
Differential Compensation	44
Transaction Confirmations	45
Reinsurance Arrangements	45
Statements of Additional Information	45
APPENDIX U: TABLES OF ACCUMULATION UNIT VALUES	U-1

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I. Glossary

The following terms as used in this Prospectus have the indicated meanings. We also define other terms in specific sections of this Prospectus.

Accumulation Period: The period between the issue date of the Contract and the Annuity Commencement Date.

Age 59 ¹/₂ Trigger: For single-life Contracts, the Contract Anniversary Date immediately preceding the Covered Person’s turning age 59 ¹/₂.

Age 65 Trigger: The Contract Anniversary Date immediately preceding the Covered Person’s 65^th birthday for single-life Contracts, or the younger Covered Person’s 65^th birthday for joint-life Contracts.

Annuitant: The natural person whose life is used to determine eligibility for and the duration of a single life guaranteed minimum withdrawal benefit under the Contract and, upon annuitization, the natural person to whom we make annuity payments and whose lifetime measures the duration of annuity payments involving single life contingencies. The lives of the Annuitant and a co-Annuitant determine the eligibility for and the duration of a joint life guaranteed minimum withdrawal benefit under the Contract and, upon annuitization, the lifetimes of the Annuitant and a co-Annuitant measure the duration of annuity payments involving joint life contingencies. If the Contract is owned by an individual, the Annuitant must be the same person as the Owner.

Annuities Service Center: The mailing address of our applications and service offices are listed on the first page of this Prospectus. You can send overnight mail to us at the following street addresses: for applications, 380 Stuart Street, 5^th Floor, Boston, MA 02116; for all other transactions, 30 Dan Road – Suite 55444, Canton, MA 02021-2809.

Annuity Commencement Date: The date we/you annuitize your Contract. That is, the date the Pay-out Period commences and we begin to make annuity payments to the Annuitant. You can change the Annuity Commencement Date to any date after the Contract Date (at least one year after the Contract Date for John Hancock New York Contracts) and prior to the Maturity Date.

Annuity Option: The method selected by the Contract Owner (or as specified in the Contract if no selection is made) for annuity payments made by us.

Annuity Unit: A unit of measure that is used after the election of an Annuity Option to calculate Variable Annuity payments.

Beneficiary: The person, persons or entity entitled to the death proceeds under the Contract upon the death of a Contract Owner or in certain circumstances, the Annuitant. The Beneficiary is as specified in the application, unless changed.

Benefit Base: A term used with the guaranteed minimum withdrawal benefit to describe a value we use to determine the Lifetime Income Amount. Please refer to “V. Description of the Contract” for more details.

Benefit Enhancement: A term used with the guaranteed minimum withdrawal benefit under the Contract to describe an increase in the Benefit Base. Please refer to “V. Description of the Contract” for more details.

Business Day: Any day on which the New York Stock Exchange is open for business. The end of a Business Day is the close of daytime trading of the New York Stock Exchange, which generally is 4:00 p.m. Eastern Time.

Co-Annuitant: A co-Annuitant is the natural person whose life is used, together with the life of an Annuitant, to determine eligibility for and the duration of a “spousal” guaranteed minimum withdrawal benefit under the Contract and, upon annuitization, the natural person whose lifetime, together with the lifetime of an Annuitant, measures the duration of annuity payments involving two life contingencies. Please refer to “V. Description of the Contract” for more details. The co-Annuitant must be the Spouse of the Annuitant.

Code: The Internal Revenue Code of 1986, as amended.

Company: John Hancock USA or John Hancock New York, as applicable.

Contingent Beneficiary: The person, persons or entity to become the Beneficiary if the Beneficiary is not alive. The Contingent Beneficiary is as specified in the application, unless changed.

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Continuation Single Life Lifetime Income Amount: A form of the guaranteed minimum withdrawal benefit under the Contract that we make available where a former participant and/or Spouse of a former participant under a GIFL Select Retirement Plan received distributions under that plan and will continue to receive distributions under a Contract. Please refer to “GIFL Select Guaranteed Lifetime Income Withdrawal Benefit.”

Contract: The Variable Annuity contract offered by this Prospectus. If you purchased this annuity in New York, a Contract means the certificate issued to you under a group contract.

Contract Anniversary: The day in each calendar year after the Contract Date that is the same month and day as the Contract Date.

Contract Date: The date of issue of the Contract.

Contract Value: The total of the Investment Account values attributable to the Contract.

Contract Year: A period of twelve consecutive months beginning on the date as of which the Contract is issued, or any anniversary of that date.

Excess Withdrawal: A term used to describe a withdrawal that exceeds certain limits under the guaranteed minimum withdrawal benefit and which, during periods of declining investment performance, may cause substantial reductions to, or the loss of, the guaranteed minimum withdrawal benefit. Please refer to “GIFL Select Guaranteed Lifetime Income Withdrawal” in “V. Description of the Contract” for more details.

Fixed Annuity: An Annuity Option with payments for a set dollar amount that we guarantee.

General Account: All of a Company’s assets, other than assets in its Separate Account and any other separate accounts it may maintain.

GIFL Select Account Value: The portion of the account value in a GIFL Select Retirement Plan account established by you or for your benefit that was allocated to Investment Options applicable to the transfer of the Benefit Base.

GIFL Select Retirement Plan: A retirement plan intended to qualify under either section 401(k) or section 457(b) of the Code and funded, in whole or in part, by a John Hancock USA or John Hancock New York group annuity contract with a Lifetime Income Benefit Rider, which allows the plan sponsor to offer a GIFL Select feature.

GIFL Select: A term we may use to describe the guaranteed minimum withdrawal benefit provided in the Contract. Please refer to “GIFL Select Guaranteed Lifetime Income Withdrawal Benefit” in “V. Description of the Contract” for more details.

Good Order: The standard that we apply when we determine whether an instruction is satisfactory. An instruction will be considered in Good Order if it is received at our Annuities Service Center: (a) in a manner that is satisfactory to us such that it is sufficiently complete and clear that we do not need to exercise any discretion to follow such instruction and it complies with all relevant laws and regulations and Company requirements; (b) on specific forms, or by other means we then permit (such as via telephone or electronic submission); and/or (c) with any signatures and dates we may require. We will notify you if an instruction is not in Good Order.

IRA: An individual retirement annuity contract itself or an individual retirement account. An IRA may be established under section 408 of the Code (“traditional IRA”) or under section 408A of the Code (“Roth IRA”).

IRA Rollover: The type of investment you make to purchase a Contract. A Contract may only be purchased as an IRA funded with a distribution from a GIFL Select Retirement Plan.

John Hancock New York: John Hancock Life Insurance Company of New York.

John Hancock USA: John Hancock Life Insurance Company (U.S.A.).

Lifetime Income Amount: A term used with our guaranteed minimum withdrawal benefit that generally describes the amount we guarantee to be available each Contract Year for withdrawal during the Accumulation Period, beginning on a Lifetime Income Date. Please refer to “GIFL Select Guaranteed Lifetime Income Withdrawal Benefit” in “V. Description of the Contract” for more details.

Lifetime Income Date: A term used with our guaranteed minimum withdrawal benefit that generally describes the date on which we determine the Lifetime Income Amount. Please refer to “GIFL Select Guaranteed Lifetime Income Withdrawal – Determination of Lifetime Income Date” in “V. Description of the Contract” for more details.

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Maturity Date: The latest allowable Annuity Commencement Date under your Contract. That is, the last date (unless we consent to a later date) on which the Pay-out Period commences and we begin to make annuity payments to the Annuitant. The Maturity Date is the date specified on the Contract specifications page, unless changed with our consent.

Owner or Contract Owner (“you”): The person or entity entitled to all of the ownership rights under the Contract. References in this Prospectus to Contract Owners are typically by use of “you.” The Owner has the legal right to make all changes in contractual designations where specifically permitted by the Contract. The Owner is as specified in the application. If the Owner is an individual, the Owner and the Annuitant must be the same person.

Pay-out Period: The period when we make annuity payments to you following the Annuity Commencement Date.

Portfolio: A series of a registered open-end management investment company which corresponds to a Variable Investment Option.

Prospectus: This prospectus that describes interests in the Contract.

Purchase Payment: A distribution of a GIFL Select Account Value that is paid to us for the benefits provided by the Contract. You may use a distribution from only one GIFL Select Account Value to fund a Contract.

Qualified Plan: A retirement plan that receives favorable tax treatment under section 401, 403, 408 (IRAs), 408A (Roth IRAs) or 457 of the Code.

Separate Account: John Hancock Life Insurance Company (U.S.A.) Separate Account H or John Hancock Life Insurance Company of New York Separate Account A, as applicable. Each Separate Account is a segregated asset account of a Company that is not commingled with the general assets and obligations of the Company.

Settlement Phase: A term used with the guaranteed minimum withdrawal benefit under the Contract to describe the period when your Contract Value is less than the Lifetime Income Amount and we may begin to make payments to you of certain minimum guaranteed amounts. Please refer to “Settlement Phase” in “V. Description of the Contract” for more details.

Single Life Lifetime Income Amount: A form of the guaranteed minimum withdrawal benefit that we make available based on a single life. Please refer to “Determination of a Single Life, Continuation Single Life or Spousal Lifetime Income Amount” in “V. Description of the Contract” for more details.

Spousal Lifetime Income Amount: A form of the guaranteed minimum withdrawal benefit that we make available based on the life of a Contract Owner and his or her Spouse. Please refer to “Determination of a Single Life, Continuation Single Life or Spousal Lifetime Income Amount” in “V. Description of the Contract” for more details.

Spouse: Any person recognized as a “spouse” in the state where the couple was legally married. The term does not include a party to a registered domestic partnership, civil union, or other similar formal relationship recognized under state law that is not denominated as a marriage under that state’s law.

Step-Up: A term used with the guaranteed minimum withdrawal benefit to describe a possible one-time increase in the Benefit Base. Please refer to “V. Description of the Contract – GIFL Select Guaranteed Lifetime Income Withdrawal Benefit” for more details.

Subaccount: A separate division of the applicable Separate Account.

Transferred Benefit Base: A term used to describe the Benefit Base amount under the GIFL “Select” guarantee provision of the group annuity contract we issued to fund a GIFL Select Retirement Plan that you intend to transfer to a Contract as part of an IRA Rollover.

Variable Annuity: An Annuity Option with payments which: (1) are not predetermined or guaranteed as to dollar amount; and (2) vary in relation to the investment experience of one or more specified Subaccounts.

Variable Investment Option: An investment option corresponding to a Subaccount of a Separate Account that invests in shares of a specific Portfolio.

Withdrawal Amount: The total amount taken from your Contract Value, including any applicable tax and proportional share of administrative fee, to process a withdrawal.

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II. Overview

This overview tells you some key points you should know about the Contract. Because this is an overview, it does not contain all the information that may be important to you. You should read this entire Prospectus carefully, including its Appendices and the Statement of Additional Information (the “SAI”) for more detailed information.

We disclose all material features and benefits of the Contracts in this Prospectus. Insurance laws and regulations apply to us in every state in which our Contracts are sold. As a result, a Contract purchased in one state may have terms and conditions that vary from the terms and conditions of a Contract purchased in a different jurisdiction. We disclose all material variations in this Prospectus.

What kind of Contract is described in this Prospectus?

The Contract is a single Purchase Payment deferred Variable Annuity contract between you and the Company that may be purchased with a distribution from a GIFL Select Retirement Plan. A Contract may be purchased as a traditional IRA or as a Roth IRA, but not both. The Contract is “deferred” because it provides for payments to be made by us beginning on a future date, and it is “variable” because Contract Value may increase or decrease daily based upon your investment choices. The Contract also provides a guaranteed minimum withdrawal benefit that we call “GIFL Select.”

We issue the Contract in New York in the form of a certificate of coverage under a master group contract. We issue master group contracts to one or more trusts that are formed for the purpose of providing individual retirement accounts or individual retirement annuities. We use the word “Contract” in this prospectus to refer to both a certificate issued under a group contract in New York, and the individual contracts we issue outside of New York.

The Contract contains fees, investment options, GIFL Select benefits and limitations that may differ from the GIFL Select feature in your employer’s retirement plan. Please read this Prospectus carefully before you invest.

Who is issuing my Contract?

Your Contract provides the name of the Company that issues your Contract. In general, John Hancock USA may issue the Contract in any jurisdiction except New York. John Hancock New York issues the Contract only in New York. Each Company sponsors its own Separate Account.

Why should I consider purchasing the Contract?

The Contract permits you to invest a distribution from your GIFL Select Account Value into a Variable Annuity Contract that you intend to use as a traditional IRA or as a Roth IRA. You invest Contract Value in Variable Investment Options that may increase or decrease in value. You may transfer among the Variable Investment Options and take withdrawals of Contract Value. The Contract also offers the GIFL Select feature (see “What is the GIFL Select feature under my Contract?” below), which allows you to transfer some or all of the Lifetime Income Amount protection we provided under your employer’s GIFL Select Retirement Plan.

Please refer to the section below entitled “What are some of the differences between the Contract and my GIFL Select Retirement Plan?” for a comparison of some of the features of your current plan and the Contract. You should also be aware that, if you leave your current employer, you may have more choices than purchasing a Contract. You may be able to leave your GIFL Select Retirement Plan account with your former employer, or you may be able to withdraw the money in the plan, or you may be able to transfer your account balance to your new employer’s plan.

In addition to providing access to a diverse selection of investment options and a guaranteed minimum withdrawal benefit, the Contract offers the availability of periodic annuity payments that can begin on the Contract’s Annuity Commencement Date. You select the Annuity Commencement Date, the frequency of payment and the type of annuity payment option that we make available. Annuity payments are made to you. We offer Fixed Annuity and Variable Annuity payment options. Variable Annuity payment amounts are variable, based on your investment choices. If you select annuity payments under the Contract, you will no longer be able to take withdrawals.

Before purchasing a Contract, you should carefully consider your liquidity needs and your desire and ability:

• to fund an early retirement, because you could lose benefits under the GIFL Select feature if you take withdrawals before the Lifetime Income Date, and you must satisfy “holding period” and age requirements before we will set a Lifetime Income Date (you could lose the GIFL Select guarantee if Withdrawal Amounts deplete your Contract Value, and any remaining Benefit Base, to zero); and

• to limit your annual withdrawal amounts to the Lifetime Income Amount after the applicable Lifetime Income Date, because withdrawals of Contract Value before then (and any Excess Withdrawal in any year after that) not only decrease your Lifetime Income guarantee, but may eliminate it.

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What are some of the differences between the Contract and my GIFL Select Retirement Plan?

Before you purchase a Contract, you should consider carefully the differences between the GIFL Select Retirement Plan, which is a defined contribution retirement plan, and the Contract, which is an individual retirement annuity contract. Some of the differences between the two products include:

• A GIFL Select Retirement Plan is under the control of an employer, while you own and control the Contract outright.

• Your GIFL Select Retirement Plan may offer investment options in addition to those available with the GIFL Select feature, including a money market or a stable value investment option; no additional investment options are available with the Contract.

• A GIFL Select Retirement Plan has significantly different federal tax implications than a traditional IRA or a Roth IRA, governing such things as when contributions and distributions may be made. There may also be different state and local tax implications. Federal tax issues for IRAs are described in “VII. Federal Tax Matters.” You should consult with your own qualified tax advisor before purchasing a Contract.

• Fees may differ between the two products, both in amount and in timing. Fees for the GIFL Select Retirement Plan, including the fees for its underlying investment portfolios, vary from employer to employer. Ask your plan administrator for fee information applicable to your plan. All of the Contract’s fees, including the fees of its underlying Portfolios, are listed in “III. Fee Tables.”

• Both the GIFL Select Retirement Plan and the Contract offer Step-Up opportunities when establishing the Lifetime Income Amount. The Contract offers an additional Step-Up opportunity when you roll over to the Contract from the plan.

• Distributions from the GIFL Select Retirement Plan and the Contract, if not a Roth IRA, must begin at age 70 ¹/₂, although a plan can mandate an earlier age.

• A GIFL Select Retirement Plan may allow loans.

• In the GIFL Select Retirement Plan, you may establish the Lifetime Income Amount on the day that the age requirement and holding period are both satisfied. In the GIFL Select IRA Rollover Variable Annuity, you may not establish the Lifetime Income Amount until the Contract Anniversary on or after the date that these requirements are satisfied.

You should also review your current employer’s retirement plan to determine its merits and your ability to contribute amounts to that plan.

The foregoing is not meant to be a complete list. For more information on your GIFL Select Retirement Plan and the Contract, you should consult with a qualified tax advisor and your plan administrator, and read your plan documents and this Prospectus.

How can I invest money in the Contract?

We use the term “Purchase Payment” to refer to the investments you make in the Contract, which must come from the distribution of a GIFL Select Account Value to a Contract that you intend to use as a traditional IRA or a Roth IRA. Your Purchase Payment for a Contract cannot include distributions from other accounts under the Plan. If you are the surviving Spouse of a GIFL Select Retirement Plan participant, you are permitted to roll over your GIFL Select plan benefits to a Contract. The Contract is not available for purchase if you are a non-Spousal Beneficiary of a GIFL Select Retirement Plan participant.

We will issue a Contract as a Roth IRA if your Purchase Payment is from your GIFL Select Retirement Plan Roth Account or if your Purchase Payment is from a “non-Roth” Account and you specifically instruct us to establish the Contract as a Roth IRA. In all other cases, we will issue a Contract as a traditional IRA. Please see “Eligibility” in “V. Description of the Contract” for further information about purchasing the Contract as a traditional IRA or as a Roth IRA. We provide information about tax implications of certain distributions and conversions to a Roth IRA in “VII. Federal Tax Matters.”

(Applicable to Contracts issued in California Only) For Contracts issued in California to persons 60 years of age or older, your Purchase Payment will be allocated to the Money Market Variable Investment Option (unless you elect otherwise) for the first 30 days after the date the Contract is delivered to you. At the end of this 30-day period, we will automatically transfer the Contract Value in the Money Market Variable Investment Option to the Contract’s other available Variable Investment Options. See “V. Description of the Contract – Other Contract Provisions – Initial Inspection Period” for more details.

What charges do I pay under the Contract?

Your Contract’s asset-based charges compensate us primarily for our administrative expenses and for the mortality and expense risks that we assume under the Contract. We also assess a GIFL Select fee, based on the Contract’s Benefit Base. We deduct the charges proportionally from each of your Variable Investment Options. Although we do not impose a sales charge, we may use amounts derived from any of the charges, including certain fees and expenses of the underlying Portfolios, for payment of our distribution expenses. We make deductions for any applicable taxes based on the amount of the Purchase Payment.

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What are my investment choices?

You may invest in any of the Variable Investment Options. Each Variable Investment Option is a Subaccount of a Separate Account that invests solely in a corresponding Portfolio. The Portfolio prospectuses contain full descriptions of the Portfolios. The amount you’ve invested in any Variable Investment Option will increase or decrease based upon the investment performance of the corresponding Portfolio (reduced by certain charges we deduct – see “III. Fee Tables”). Your Contract Value during the Accumulation Period and the amounts of annuity payments will depend upon the investment performance of the underlying Portfolio of the Variable Investment Option you select.

In selecting Variable Investment Options under a Contract, you should consider:

• You bear the investment risk that your Contract Value will increase or decrease to reflect the results of your Contract’s investment in underlying Portfolios. We do not guarantee Contract Value in a Variable Investment Option or the investment performance of any Portfolio.

• Although each Portfolio may invest directly in securities or indirectly, through other underlying portfolios, you will not have the ability to determine the investment decisions or strategies of the Portfolios.

If you would prefer a broader range of investment options, you (and your financial advisor) should carefully consider the features of other variable annuity contracts offered by other life insurance companies, or other forms of traditional IRAs and Roth IRAs, before purchasing a Contract.

How can I change my investment choices?

Allocation of Purchase Payment. You designate how your Purchase Payment is to be allocated among the Variable Investment Options at the time that you purchase the Contract.

Transfers Among Variable Investment Options. Prior to the Annuity Commencement Date, you may transfer your investment amounts among Variable Investment Options, subject to certain restrictions described below and discussed in greater detail in “V. Description of the Contract – Transfers Among Variable Investment Options.” After the Annuity Commencement Date, you may transfer your allocations among the Variable Investment Options, subject to certain restrictions described in “V. Description of the Contract – Transfers After the Annuity Commencement Date.”

The Variable Investment Options can be a target for abusive transfer activity. To discourage disruptive frequent trading activity, we have adopted a policy for each Separate Account to restrict transfers to two per calendar month per Contract, with certain exceptions described in more detail in “V. Description of the Contract – Transfers Among Variable Investment Options.” We apply each Separate Account’s policy and procedures uniformly to all Contract Owners.

In addition to the transfer restrictions that we impose, the John Hancock Variable Insurance Trust also has adopted policies under Rule 22c-2 of the Investment Company Act of 1940, as amended (the “1940 Act”) to detect and deter abusive short-term trading. Accordingly, a Portfolio may require us to impose trading restrictions if it discovers violations of its frequent short-term trading policy. We will provide tax identification numbers and other Contract Owner transaction information to John Hancock Variable Insurance Trust upon request, which it may use to identify any pattern or frequency of activity that violates its short-term trading policy.

We reserve the right to restrict Variable Investment Options at any time. If we restrict a Variable Investment Option, you may not be able to transfer or allocate the Purchase Payment to the restricted Variable Investment Option after the date of the restriction. Any amounts you allocated to a Variable Investment Option before we imposed restrictions will not be affected by such restrictions as long as it remains in that Variable Investment Option.

Transfers Between Annuity Options. During the Pay-out Period, you may not transfer from a Variable Annuity Option to a Fixed Annuity Option or from a Fixed Annuity Option to a Variable Annuity Option (see “V. Description of the Contract – Transfers after the Annuity Commencement Date”).

How do I access my money?

During the Accumulation Period, you may withdraw all or a portion of your Contract Value. Withdrawals may be subject to income tax, including an additional 10% penalty tax in many cases, on the taxable portion of any distributions taken from a Contract. Owners of Contracts issued as Roth IRAs may be subject to a penalty tax for withdrawals taken on certain distributions within the first five years after establishment of the account.

If we issue your Contract for use as a traditional IRA, you will be subject to tax requirements for minimum distributions over your lifetime. The Code requires that distributions from most Contracts commence and/or be completed within a certain period of time. This effectively limits the period of time during which you can continue to derive tax deferral benefits from any tax-deductible

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Purchase Payments you paid or on any earnings under the Contract. Please read “VII. Federal Tax Matters” for more information about taxation on withdrawals and minimum distribution requirements applicable to traditional IRAs and Roth IRAs.

What is the GIFL Select feature under my Contract?

The Contract permits you to choose how much Contract Value to withdraw at any time. We designed the GIFL Select feature of the Contract to guarantee that a Lifetime Income Amount will be available for annual withdrawals for as long as you live, starting on the Lifetime Income Date, even if your Contract Value declines to zero:

• We guarantee a Lifetime Income Amount of 4%–5% under single-life Contracts and 4.5% under joint-life Contracts for annual withdrawals during your retirement years. Before the guarantee begins, your Contract must reach the Contract Anniversary on or after you satisfy any remaining age requirements (i.e., either the “Age 59 ¹/₂ Trigger” or the “Age 65 Trigger”) and “holding period” requirements (i.e., up to 5 years). (Please read the “Guaranteed Lifetime Income Withdrawal Benefit” section of this Prospectus for more information.)

• We provide a one time “Step-Up” opportunity at the time of the first withdrawal after the Lifetime Income Date to reflect favorable investment performance, if any, as of the prior Anniversary Date of the Contract.

• We may increase the Lifetime Income Amount to reflect annual Benefit Enhancements, if you defer taking withdrawals of Cash Value during a Contract Year. The current Benefit Enhancement Rate is equal to 3% of the Benefit Base in effect at the end of the immediately preceding Contract Year. The Contract’s Benefit Enhancement rate will not change once the Contract is issued. We may reduce the Benefit Enhancement Rate at any time for new Contracts issued on or after the date of notice of the reduction. We also may increase the Benefit Enhancement Rate by means of a promotional Benefit Enhancement Rate at any time for new Contracts. We may terminate this promotional Benefit Enhancement Rate at any time. Contracts that do not receive a promotional Benefit Enhancement will receive the Benefit Enhancement Rate in effect at the time the Contract is issued, which will never be less than 1%. Please refer to “V. Description of the Contract” for more details.

• We may decrease the Lifetime Income Amount if you take Excess Withdrawals.

You must satisfy certain conditions and make certain choices, however, to fully benefit from the GIFL Select feature guarantee. You must satisfy the age and holding period requirements specified above before we set the first available Lifetime Income Date and calculate a Lifetime Income Amount. If you take any withdrawal before we set the first available Lifetime Income Date, we will reduce the amounts we use to calculate the Lifetime Income Amount. If you take annual withdrawals after we set the Lifetime Income Date that are in excess of the Lifetime Income Amount, we will reduce the amounts we use to calculate the Lifetime Income Amount for future Contract Years.

Please refer to “Guaranteed Lifetime Income Withdrawal Benefit” in “V. Description of the Contract” for more details, including examples to describe how the benefit works and the impact of Excess Withdrawals.

How is the initial Lifetime Income Amount calculated?

We use different formulas to determine an initial Lifetime Income Amount, depending on the form of Lifetime Income Amount you select, the type of Lifetime Income Amount for which you qualify and, in some cases, your age when you purchase a Contract.

When you first purchase a Contract, we determine a Benefit Base that is the greater of:

• the GIFL Select Account Value distribution that you use as the Purchase Payment for the Contract; or

• the Benefit Base under your GIFL Select Retirement Plan that we permit you to transfer to the Contract. We will permit you to transfer all of your Benefit Base only if you use your entire GIFL Select Account Value distribution as a Purchase Payment for the Contract.

After you purchase a Contract, we may reduce the Benefit Base (and the Lifetime Income Amount) if you take Excess Withdrawals, and we may increase the Benefit Base (and the Lifetime Income Amount) if you qualify for any of the opportunities described below. The Benefit Base has no cash value and usually will differ from the Contract Value you may withdraw. The maximum Benefit Base is $5 million.

We determine the initial Lifetime Income Amount on the earliest available Lifetime Income Date. To do this, we multiply the greater of the Contract Value or the Benefit Base then in effect by the rate applicable to your Contract. We will recalculate the Lifetime Income Amount if you take no withdrawals or annuitize the Contract during the next Contract Year. We describe the rates we use to calculate the Lifetime Income Amount on the earliest available Lifetime Income Date, and certain age and holding period requirements, on the next page.

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Will I have an opportunity to increase the Lifetime Income Amount under my GIFL Select guaranteed minimum withdrawal benefit?

Yes. The GIFL Select feature under the Contract has three ways to provide a potential increase in the Lifetime Income Amount:

• if you purchase a Contract before your Age 65 Trigger, and defer taking any withdrawals (or annuitizing the Contract) between your Age 59 ¹/₂ Trigger and your Age 65 Trigger, we will use a higher rate to calculate a Single Life Lifetime Income Amount;

• if you do not take any withdrawals of Contract Value (or annuitize the Contract) during any Contract Year, we will add a Benefit Enhancement to the Benefit Base at the beginning of the next Contract Year that may increase the Lifetime Income Amount for future Contract Years*; and

• when you take your first withdrawal after the Lifetime Income Date, you have a one-time opportunity to automatically increase (“step up”) the Benefit Base we use to determine the Lifetime Income Amount. A Step-Up will reflect investment gains in the Contract Value, if any, as of the prior Contract Anniversary. We provide no assurance that your Contract Value will experience investment gains; it may increase or decrease in value at any time.

* If you were taking distributions under a GIFL Select Retirement Plan, and continue to do so under a Contract, you will not qualify for an annual Benefit Enhancement.

Before purchasing a Contract, you should carefully consider whether you are likely to make withdrawals of Contract Value that may impact the amount of the GIFL Select guaranteed minimum withdrawal benefit.

Please refer to “Guaranteed Lifetime Income Withdrawal Benefit” in “V. Description of the Contract” for more information.

What rates do we use to determine the Lifetime Income Amount, and what are the applicable holding period and age requirements that you must satisfy for the GIFL Select guaranteed minimum withdrawal benefit?

We designed the GIFL Select feature to provide minimum withdrawal benefit guarantees on a single life and on a joint Spousal life basis. The GIFL Select guaranteed minimum withdrawal benefit begins on the Contract Anniversary on or after you satisfy a holding period requirement and have turned the applicable age. We charge a fee for the benefit from the date we issue a Contract, however, even if you have not satisfied the necessary requirements at that time.

Holding Period. Your Contract must remain in force throughout a holding period measured from the date we issue the Contract. The holding period is 5 Contract Years, but we will reduce the required holding period to reflect the time that you were a participant in a GIFL Select Retirement Plan. If you are a surviving Spouse of a deceased participant, the holding period will reflect the time your Spouse was in the plan.

Age Requirements – Single Life. In most cases, you must have reached your Age 59 ¹/₂ Trigger to establish a Single Life Lifetime Income Amount. If you have reached your Age 59 ¹/₂ Trigger, but have not yet reached your Age 65 Trigger, when you establish the GIFL Select feature, we will use a 4% rate to calculate a Single Life Lifetime Income Amount. If you wait until you have reached your Age 65 Trigger before you establish the GIFL Select feature, we will use a 5% rate to calculate a Single Life Lifetime Income Amount.

We do not apply an age requirement, however, if you established a guaranteed minimum withdrawal benefit under a GIFL Select Retirement Plan and continue to take distributions under a Contract. In that event, we will use the rate applicable to your GIFL Select Account, as follows:

• 4% if you commenced receiving distributions under the plan on a single life basis before age 65,

• 4.5% if you commenced receiving distributions under the plan on a joint Spousal basis (we will use this rate where you are a former participant in the plan, or a surviving Spouse of a former participant, and are purchasing a Contract for a single life Lifetime Income Amount), or

• 5% if you commenced receiving distributions under the plan on a single life basis on or after age 65.

In this Prospectus, we refer to each of these types of single life Lifetime Income Amounts as a Continuation Single Life Lifetime Income Amount. Your Contract will contain the applicable rate and refer to it as a Single Life Lifetime Income Amount.

Age Requirements – Joint Spousal Life. You and your Spouse must both reach your Age 65 Triggers to establish a Spousal Lifetime Income Amount. In that event, we will use a 4.5% rate to calculate a Spousal Lifetime Income Amount.

Please read “V. Description of the Contract – Lifetime Income Provisions” for additional details.

Example: Assume that you purchase a GIFL Select IRA Rollover Variable Annuity Contract on May 1, 2015 for a Single Life Lifetime Income Amount, when you are age 60 and the holding period in your GIFL Select Retirement Plan was scheduled to end on May 31, 2015. Your Lifetime Income Date for GIFL Select is May 1, 2016, the Contract Anniversary after you have satisfied both the

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age and holding period requirement. If you purchase the GIFL Select IRA Rollover Variable Annuity Contract on June 1, 2015, your Lifetime Income Date will be June 1, 2015 since both requirements were satisfied prior to the date that the Contract was purchased.

How do I establish my GIFL Select guaranteed minimum withdrawal benefit?

Once you satisfy the applicable age and holding period requirements, we will set the first available Lifetime Income Date and calculate a Lifetime Income Amount. You will establish that Lifetime Income Amount if you take a withdrawal at any time during the next 12 months. If you do:

• the Lifetime Income Amount will reflect a Step-Up in the Benefit Base if there were investment gains in Contract Value as of the prior Contract Anniversary;

• you will not be eligible for the Benefit Enhancement for that year, but you will remain eligible for future annual Benefit Enhancements if you defer taking withdrawals in future Contract Years and do not annuitize your Contract; and

• you will need to tell us before establishing the Lifetime Income Amount if you wish to establish a Spousal Lifetime Income Amount in lieu of a Single Life Lifetime Income Amount. Once you establish a Lifetime Income Amount, you will not be able to change from a Single Life form of benefit to a Spousal form of benefit, or vice-versa.

If you defer taking withdrawals after we set the first available Lifetime Income Date, we will recalculate the Lifetime Income Amount at the next Contract Anniversary. You will then be able to establish that Lifetime Income Amount during the following 12 months. We will continue to recalculate the Lifetime Income Amount, and you will be able to establish the recalculated amount if you continue to defer withdrawals until the Maturity Date.

What are the tax consequences of owning a Contract?

In most cases, no income tax will have to be paid on amounts you earn under a Contract until these earnings are paid out. All or part of the following distributions from a Contract may constitute a taxable payout of earnings:

• withdrawals (including surrender of the Contract, payments of the Lifetime Income Amount or any systematic withdrawals);

• payment of any death proceeds; and

• periodic payments under one of our annuity payment options.

How much you will be taxed on a distribution is based upon complex tax rules and depends on matters such as:

• the type of the distribution;

• when the distribution is made;

• the rules governing distributions and rollovers from a Qualified Plan to a traditional IRA or Roth IRA;

• the rules governing distributions from a traditional IRA or Roth IRA; and

• the circumstances under which the payments are made.

The Code does not permit Contracts issued to qualify as traditional IRAs or Roth IRAs to be used for loans, assignments or pledges. A 10% penalty tax applies in many cases to the taxable portion of any distributions taken from a Contract issued as a traditional IRA before you reach age 59 ¹/₂. Traditional IRAs are subject to minimum distribution requirements beginning in the year a taxpayer turns age 70 ¹/₂, and both traditional IRAs and Roth IRAs are subject to requirements for death proceeds distributions to commence and/or be completed within a certain period of time. This effectively limits the period of time during which you can derive tax deferral benefits from the rollover of your GIFL Select Account Value into a Contract, or on any earnings under the Contract.

The Contract does not provide any tax-deferral benefits in addition to those that are accorded the Contract because it is an IRA. However, the Contract offers features and benefits that other investments may not offer. You and your financial advisor should carefully consider whether the features and benefits, including the Variable Investment Options, protection through the GIFL Select feature, and other benefits provided under the Contract are suitable for your needs and objectives and are appropriate in light of the expense.

We provide additional information on taxes in the “VII. Federal Tax Matters” section of this Prospectus. We make no attempt to provide more than general information. Purchasers of Contracts for use with any retirement plan should consult with a qualified tax advisor regarding the suitability of the Contract.

Can I return my Contract?

In most cases, you have the right to cancel your Contract within 10 days (or longer in some states) after you receive it. Because your Contract is issued as an IRA, you will receive a refund of the Purchase Payment you made during the first seven days of this period if that amount is greater than the Contract Value. After seven days, we will return the Contract Value. The date of cancellation is the date we receive the Contract. Rather than receive the Contract Value as a taxable distribution, you may opt to return this amount to the GIFL Select Retirement Plan (if permitted under the plan) (see “VII. Federal Tax Matters”).

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(Applicable to Contracts issued in California Only) Contracts issued in California to persons 60 years of age or older may be cancelled by returning the Contract to our Annuities Service Center or agent at any time within 30 days after receiving it. We will allocate your Purchase Payment to the Money Market Variable Investment Option during this period. We will, however, permit you to elect to allocate your Purchase Payment during this 30-day period to one or more of the Contract’s other available Variable Investment Options. If you cancel the Contract during this 30-day period and your Purchase Payment was allocated to the Money Market Variable Investment Option, we will pay you the greater of (a) the original amount of your Purchase Payment and (b) the Contract Value computed at the end of the Business Day on which we receive your returned Contract. If your Purchase Payment was allocated to a Variable Investment Option (other than the Money Market Variable Investment Option), we will pay you the Contract Value computed at the end of the Business Day on which we receive your returned Contract. At the end of the 30-day period, we will transfer your money automatically into other available Variable Investment Options that you select. See “V. Description of the Contract – Other Contract Provisions – Initial Inspection Period.”

Will I receive a Transaction Confirmation?

We will send you a confirmation statement for certain transactions in your Variable Investment Options. You should carefully review these transaction confirmations to verify their accuracy. You should immediately report any mistakes to our Annuities Service Center (at the address or phone number shown on the first page of this Prospectus). If you fail to notify our Annuities Service Center of any mistake within 60 days of the delivery of the transaction confirmation, you will be deemed to have ratified the transaction. Please contact the John Hancock Annuities Service Center at the applicable telephone number or Internet address shown on the first page of this Prospectus for more information on electronic transactions.

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III. Fee Tables

The following tables describe the fees and expenses applicable to buying, owning and surrendering a GIFL Select IRA Rollover Variable Annuity Contract. These fees and expenses are more completely described in this Prospectus under “VI. Charges and Deductions.” The items listed under “Total Annual Portfolio Operating Expenses” are described in detail in the Portfolio prospectus. Unless otherwise shown, the tables below show the maximum fees and expenses.

The following table describes the fees and expenses that you pay at the time that you buy the Contract or surrender the Contract, or potentially when you transfer Contract Value between Variable Investment Options. State premium taxes may also be deducted from your Contract Value.

Contract Owner Transaction Expenses¹

Transfer Fee2
Maximum Fee	$	25
Current Fee	$	0

¹  State premium taxes may also apply to your Contract, which currently range from 0.04% to 4.00% of each Purchase Payment (See “VI. Charges and Deductions – Premium Taxes”).

² This fee is not currently assessed against transfers. We reserve the right to impose a charge in the future for transfers in excess of 12 per year. The amount of this fee will not exceed the lesser of $25 or 2% of the amount transferred.

The following table describes fees and expenses that you pay periodically during the time that you own the Contract. This table does not include annual Portfolio operating expenses.

Periodic Fees and Expenses Other than Portfolio Expenses

Annual Contract Fee	None
Annual Separate Account Expenses1
Administration Fee	0.15	%
Mortality and Expense Risks Fee2	0.45	%
Total Annual Separate Account Expenses	0.60	%
GIFL Select Fee3
Maximum Fee	0.65	%
Current Fee	0.50	%

¹  A daily charge reflected as an annualized percentage of the Variable Investment Options.

²  This charge is assessed on all active Contracts, including Contracts continued by a Beneficiary upon the death of the Contract Owner or continued under any Annuity Option payable on a variable basis.

³  Amount shown is an annual percentage based on the Benefit Base. We impose the current fee shown, but reserve the right to increase it up to the maximum fee shown.

The next table describes the minimum and maximum total operating expenses charged by the Portfolios that you may pay periodically during the time that you own the Contract. More detail concerning each Portfolio’s fees and expenses is contained in the Portfolio’s prospectus.

Total Annual Portfolio Operating Expenses	Minimum	Maximum
Range of expenses that are deducted from Portfolio assets, including management fees, Rule 12b-1 fees, and other expenses	0.76%	1.01%

(Applicable to Contracts issued in California Only) Contracts issued in California to persons age 60 or older may cancel the Contract by returning it to our Annuities Service Center or agent at any time within 30 days after receiving it. We will allocate your Purchase Payment to the Money Market Variable Investment Option during this period and thereafter transfer it to the Variable Investment Options you select (see “V. Description of the Contract – Other Contract Provisions – Initial Inspection Period” for additional information). The minimum annual net operating expenses during this 30 day period would be 0.76%.

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Examples

We provide the following examples that are intended to help you compare the costs of investing in a Contract with the costs of investing in other variable annuity contracts. These costs include Contract Owner expenses, Contract fees, Separate Account annual expenses and Portfolio fees and expenses.

Example 1: Maximum Portfolio operating expenses

The following example assumes that you invest $10,000 in a Contract, that your investment has a 5% return each year and that the maximum GIFL Select fee and the maximum fees and expenses of any of the Portfolios apply. We calculate the GIFL Select fee on the assumption that your initial Benefit Base is $10,000, you take no withdrawals during the period shown, you receive a Benefit Enhancement of 3% on each Contract Anniversary, and you do not set your Lifetime Income Amount during the period shown. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

John Hancock USA and John Hancock New York
	1 Year	3 Years	5 Years	10 Years
If you surrender the Contract at the end of the applicable time period:	$229	$705	$1,208	$2,593
If you annuitize, or do not surrender the Contract at the end of the applicable time period:	$229	$705	$1,208	$2,593

Example 2: Minimum Portfolio operating expenses

The next example assumes that you invest $10,000 in a Contract, that your investment has a 5% return each year, the maximum GIFL Select fee and the minimum fees and expenses of any of the Portfolios apply. We calculate the GIFL Select fee on the assumption that your initial Benefit Base is $10,000, you take no withdrawals during the period shown, you receive a Benefit Enhancement of 3% on each Contract Anniversary, and you do not set your Lifetime Income Amount during the period shown. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

John Hancock USA and John Hancock New York
	1 Year	3 Years	5 Years	10 Years
If you surrender the Contract at the end of the applicable time period:	$203	$628	$1,079	$2,327
If you annuitize, or do not surrender the Contract at the end of the applicable time period:	$203	$628	$1,079	$2,327

Example 3: Minimum Portfolio operating expenses

The next example assumes that you invest $10,000 in a Contract, that your investment has a 5% return each year, the current GIFL Select fee and the minimum fees and expenses of any of the Portfolios apply. We calculate the GIFL Select fee on the assumption that your initial Benefit Base is $10,000, you take no withdrawals during the period shown, you receive a Benefit Enhancement of 3% on each Contract Anniversary, and you do not set your Lifetime Income Amount during the period shown. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

John Hancock USA and John Hancock New York
	1 Year	3 Years	5 Years	10 Years
If you surrender the Contract at the end of the applicable time period:	$188	$583	$1,002	$2,166
If you annuitize, or do not surrender the Contract at the end of the applicable time period:	$188	$583	$1,002	$2,166

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Portfolio Expenses

The following table describes the operating expenses for each of the Portfolios, as a percentage of the Portfolio’s average net assets for the fiscal year ending December 31, 2014, except as stated below in the notes that follow the table. More detail concerning each Portfolio’s fees and expenses is contained in the Portfolio’s prospectus and in the notes following the table.

Portfolio/Series	Management Fee	Distribution and Service (12b-1) Fees	Other Expenses	Acquired Portfolio Fees and Expenses1	Total Annual Operating Expenses	Contractual Expense Reimbursement	Net Operating Expenses
Core Strategy
Series II	0.04%	0.25%	0.02%	0.54%	0.85%2	0.00%	0.85%
Lifestyle Balanced MVP
Series II	0.05%	0.25%	0.01%	0.69%	1.00%2	-0.01%3	0.99%
Lifestyle Balanced PS Series
Series II	0.04%	0.25%	0.03%	0.54%	0.86%2	0.00%	0.86%
Lifestyle Conservative MVP
Series II	0.05%	0.25%	0.02%	0.65%	0.96%2	-0.02%3	0.95%
Lifestyle Conservative PS Series
Series II	0.04%	0.25%	0.06%	0.56%	0.91%2	-0.02%4	0.89%
Lifestyle Growth MVP
Series II	0.05%	0.25%	0.02%	0.71%	1.03%2	-0.02%3	1.01%
Lifestyle Growth PS Series
Series II	0.04%	0.25%	0.02%	0.53%	0.84%2	0.00%	0.84%
Lifestyle Moderate MVP
Series II	0.05%	0.25%	0.02%	0.68%	1.00%2	-0.02%3	0.98%
Lifestyle Moderate PS Series
Series II	0.04%	0.25%	0.04%	0.55%	0.88%2	0.00%4	0.88%
Money Market5
Series II	0.48%	0.25%	0.03%	—	0.76%	0.00%	0.76%
Ultra Short Term Bond
Series II	0.55%	0.25%	0.06%	—	0.86%	0.00%	0.86%

¹  “Acquired Portfolio Fees and Expenses” are based on indirect net expenses associated with the Portfolio’s investments in underlying investment companies.

²  The “Total Annual Operating Expenses” shown may not correlate to the Portfolio’s ratios of expenses to average net assets shown in the “Financial Highlights” section of the Portfolio prospectus, which does not include “Acquired Portfolio Fees and Expenses.”

³  JHIMS LLC (the “Adviser”) has contractually agreed to reduce its management fee and/or make payment to the Portfolio in an amount equal to the amount by which “Other Expenses” of the Portfolio exceed 0.00% of the averaged annual net assets (on an annualized basis) of the Portfolio. “Other Expenses” means all of the expenses of the Portfolio, excluding certain expenses such as advisory fees, taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business, distribution and service (Rule 12b-1) fees, underlying portfolio expenses (“Acquired Portfolio Fees and Expenses”), and short dividend expense. The current expense limitation agreement expires on April 30, 2017 unless renewed by mutual agreement of the Portfolio and the Adviser based upon a determination that this is appropriate under the circumstances at that time. The Adviser may recapture operating expenses reimbursed or fees waived under previous expense limitation or waiver arrangements for a period of three years following the month in which the reimbursements or waivers occurred to the extent that the Portfolio is below its expense limitation during this period.

⁴  The Adviser has contractually agreed to reduce its management fee and/or make payment to the Portfolio in an amount equal to the amount by which “Other Expenses” of the Portfolio exceed 0.04% of the averaged annual net assets (on an annualized basis) of the Portfolio. “Other Expenses” means all of the expenses of the Portfolio, excluding certain expenses such as advisory fees, taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Portfolio’s business, distribution and service (Rule 12b-1) fees, underlying portfolio expenses (“Acquired Portfolio Fees and Expenses”), and short dividend expense. The current expense limitation agreement expires on April 30, 2016 unless renewed by mutual agreement of the Portfolio and the Adviser based upon a determination that this is appropriate under the circumstances at that time. The Adviser may recapture operating expenses reimbursed or fees waived under previous expense limitation or waiver arrangements for a period of three years following the month in which the reimbursements or waivers occurred to the extent that the Portfolio is below its expense limitation during this period.

⁵  For Contracts issued prior to April 29, 2013, the Money Market Variable Investment Option is subject to restrictions (see “V. Description of the Contract – Maximum Number of Investment Options”). For Contracts issued on or after April 29, 2013, the Money Market Variable Investment Option is available only during the initial inspection period for Contracts issued in California to purchasers age 60 and older.

A Table of Accumulation Unit Values relating to the Contract is included in Appendix U to this Prospectus.

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IV. General Information about Us, the Separate Accounts and the Portfolios

The Companies

Your Contract is issued by either John Hancock USA or John Hancock New York. Please refer to your Contract to determine which Company issued your Contract.

John Hancock USA, formerly known as “The Manufacturers Life Insurance Company (U.S.A.),” is a stock life insurance company originally organized under the laws of Maine on August 20, 1955, by a special act of the Maine legislature. John Hancock USA redomesticated under the laws of Michigan on December 30, 1992. John Hancock USA is authorized to transact life insurance and annuity business in all states (except New York), the District of Columbia, Guam, Puerto Rico and the Virgin Islands. Its principal office is located at 601 Congress Street, Boston, Massachusetts 02210-2805. John Hancock USA also has an Annuities Service Center – its mailing address is P.O. Box 55444, Boston, MA 02205-5444; its overnight mail address is 30 Dan Road – Suite 55444, Canton, MA 02021-2809; and its email address is www.jhannuities.com.

John Hancock New York, formerly known as “The Manufacturers Life Insurance Company of New York,” is a wholly-owned subsidiary of John Hancock USA and is a stock life insurance company organized under the laws of New York on February 10, 1992. John Hancock New York is authorized to transact life insurance and annuity business only in the State of New York. Its principal office is located at 100 Summit Lake Drive, Valhalla, New York 10595. John Hancock New York also has an Annuities Service Center – its mailing address is P.O. Box 55445, Boston, MA 02205-5445; its overnight mail address is 30 Dan Road – Suite 55444, Canton, MA 02021-2809; and its email address is www.jhannuitiesnewyork.com.

The ultimate parent of both companies is Manulife Financial Corporation, a publicly traded company, based in Toronto, Canada. Manulife Financial Corporation is the holding company of The Manufacturers Life Insurance Company and its subsidiaries, collectively known as Manulife Financial. The Companies changed their names to John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York, respectively, on January 1, 2005 following Manulife Financial Corporation’s acquisition of John Hancock Financial Services, Inc.

The Company incurs obligations under the Contract to guarantee certain amounts, and investors must depend on the financial strength of the Company for satisfaction of the Company’s obligations such as the Lifetime Income Amount and any Fixed Annuity Option. To the extent that the Company pays such amounts, the payments will come from the Company’s General Account assets. You should be aware that, unlike the Separate Accounts, the Company’s General Account is not segregated or insulated from the claims of the Company’s creditors. The General Account consists of securities and other investments that may decline in value during periods of adverse market conditions. The Company’s financial statements contained in the SAI include a further discussion of risks inherent within the Company’s General Account investments.

The Separate Accounts

You do not invest directly in the Portfolios made available under the Contracts. When you direct or transfer money to a Variable Investment Option, we will purchase shares of a corresponding Portfolio through one of our Separate Accounts. We hold the Portfolio’s shares in a “Subaccount” (usually with a name similar to that of the corresponding Portfolio) of the applicable Separate Account. A Separate Account’s assets (including the Portfolio’s shares) belong to the Company that maintains that Separate Account.

For Contracts issued by John Hancock USA, we purchase and hold Portfolio shares in John Hancock Life Insurance Company (U.S.A.) Separate Account H, a Separate Account under the laws of Michigan. For Contracts issued by John Hancock New York, we purchase and hold Portfolio shares in John Hancock Life Insurance Company of New York Separate Account A, a Separate Account under the laws of New York.

The income, gains and losses, whether or not realized, from assets of a Separate Account are credited to or charged against that Separate Account without regard to a Company’s other income, gains, or losses. Nevertheless, all obligations arising under a Company’s Contracts are general corporate obligations of that Company. Assets of a Separate Account may not be charged with liabilities arising out of any of the respective Company’s other business.

We reserve the right, subject to compliance with applicable law: to add other Subaccounts; to eliminate existing Subaccounts; and to combine Subaccounts or transfer assets in one Subaccount to another Subaccount that we, or an affiliated company, may establish. We will not eliminate existing Subaccounts or combine Subaccounts without the prior approval of the appropriate state or federal regulatory authorities.

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We registered the Separate Accounts with the SEC under the Investment Company Act of 1940, as amended (the “1940 Act”) as unit investment trusts. Registration under the 1940 Act does not involve supervision by the SEC of the management or investment policies or practices of the Separate Accounts. If a Company determines that it would be in the best interests of persons having voting rights under the Contracts it issues, that Company’s Separate Account may be operated as a management investment company under the 1940 Act or it may be deregistered if 1940 Act registration were no longer required.

The Portfolios

When you select a Variable Investment Option, we invest your money in a Subaccount of our Separate Account and it invests in shares of a corresponding Portfolio of the John Hancock Variable Insurance Trust.

The Portfolios in the Separate Account are NOT publicly traded mutual funds. The Portfolios are only available to you as investment options in the Contracts or, in some cases, through other variable annuity contracts or variable life insurance policies issued by us or by other life insurance companies. In some cases, the Portfolios also may be available through participation in certain tax-qualified pension, retirement or college savings plans.

Investment Management

The Portfolios’ investment advisers and managers may manage publicly traded mutual funds with similar names and investment objectives. However, the Portfolios are NOT directly related to any publicly traded mutual fund. You should not compare the performance of any Portfolio described in this Prospectus with the performance of a publicly traded mutual fund. The performance of any publicly traded mutual fund could differ substantially from that of any of the Portfolios held in our Separate Account.

Our Managed Volatility Portfolios

In selecting the Portfolios that are available as Investment Options under the Contract (or its optional benefit Riders), we may establish requirements that are intended, among other things, to mitigate market price and interest rate risk for compatibility with our obligations to pay guarantees and benefits under the Contract (and its optional benefit Riders). We seek to make available Investment Options that use strategies that are intended to lower potential volatility of returns and limit the magnitude of Portfolio losses. These include, but are not limited to, strategies that: encourage diversification in asset classes and style; combine equity exposure with exposure to fixed income securities; and allow us to effectively and efficiently manage our exposure under the Contract (and option benefit Riders). The requirements we impose are intended to protect us from loss. They may increase a Portfolio’s transaction Costs, and may otherwise lower the performance and reduce the availability of Investment Options under the Contract (and/or under optional benefit Riders).

During rising markets, the strategies employed to manage volatility could result in your Contract Value rising less than would have been the case if you had been invested in a Portfolio without the managed volatility strategy. The managed volatility strategy may also suppress the value of the guaranteed Rider benefits. On the other hand, the managed volatility strategy seeks to manage the volatility of returns and limit the magnitude of Portfolio losses during declining markets with high volatility, although there is no guarantee that it will do so.

The John Hancock Variable Insurance Trust is a so-called “series” type mutual fund and is registered under the 1940 Act as an open-end management investment company. John Hancock Investment Management Services, LLC (“JHIMS LLC”) provides investment advisory services to the John Hancock Variable Insurance Trust and receives investment management fees for doing so. JHIMS LLC pays a portion of its investment management fees to other firms that manage the John Hancock Variable Insurance Trust’s Portfolios (i.e., subadvisers). JHIMS LLC is our affiliate and we indirectly benefit from any investment management fees JHIMS LLC retains.

The John Hancock Variable Insurance Trust has obtained an order from the SEC permitting JHIMS LLC, subject to approval by the Board of Trustees, to change a subadviser for a Portfolio or the fees paid to subadvisers and to enter into new subadvisory agreements from time to time without the expense and delay associated with obtaining shareholder approval of the change. This order does not, however, permit JHIMS LLC to appoint a subadviser that is an affiliate of JHIMS LLC or the John Hancock Variable Insurance Trust (other than by reason of serving as subadviser to a Portfolio) (an “Affiliated Subadviser”) or to change a subadvisory fee of an Affiliated Subadviser without the approval of shareholders.

If shares of a Portfolio are no longer available for investment or in our judgment investment in a Portfolio becomes inappropriate, we may eliminate the shares of a Portfolio and substitute shares of another Portfolio, or of another open-end registered investment company. A substitution may be made with respect to existing investments. However, we will make no such substitution without first notifying you and obtaining approval of the SEC (to the extent required by the 1940 Act).

Portfolio Expenses

The table in the Fee Tables section of the Prospectus shows the investment management fees, Rule 12b-1 fees and other operating expenses for these Portfolio shares as a percentage (rounded to two decimal places) of each Portfolio’s average daily net assets for

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2014, except as indicated in the footnotes appearing at the end of the table. Fees and expenses of the Portfolios are not fixed or specified under the terms of the Contracts and may vary from year to year. These fees and expenses differ for each Portfolio and reduce the investment return of each Portfolio. Therefore, they also indirectly reduce the return you might earn on any Variable Investment Options.

The Portfolios pay us or certain of our affiliates compensation for some of the distribution, administrative, shareholder support, marketing and other services we or our affiliates provide to the Portfolios. The amount of this compensation is based on a percentage of the assets of the Portfolios attributable to the variable insurance products that we and our affiliates issue. These percentages may differ from Portfolio to Portfolio and among classes of shares within a Portfolio. In some cases, the compensation is derived from the Rule 12b-1 fees which are deducted from a Portfolio’s assets and paid for the services we or our affiliates provide to that Portfolio. Compensation payments may be made by a Portfolio’s investment adviser or its affiliates. None of these compensation payments results in any charge to you in addition to what is shown in the Total Annual Portfolio Operating Expenses table.

Funds of Funds

Each of the John Hancock Variable Insurance Trust’s Core Strategy, Lifestyle Balanced MVP, Lifestyle Balanced PS Series, Lifestyle Conservative MVP, Lifestyle Conservative PS Series, Lifestyle Growth MVP, Lifestyle Growth PS Series, Lifestyle Moderate MVP and Lifestyle Moderate PS Series (“JHVIT Funds of Funds”) is a “fund of funds” that invests in other underlying mutual funds. Expenses for a fund of funds may be higher than that for other Portfolios because a fund of funds bears its own expenses and indirectly bears its proportionate share of expenses of the underlying portfolios in which it invests. The prospectus for each of the JHVIT Funds of Funds contains a description of the underlying portfolios for that Portfolio, including expenses of the Portfolios, associated investment risks and deductions from and expenses paid out of the assets of the Portfolio.

Portfolio Investment Objectives and Strategies

You bear the investment risk of any Portfolio you choose as a Variable Investment Option for your Contract. The following table contains a general description of the Portfolios that we make available under the Contracts. You can find a full description of each Portfolio, including the investment objectives, policies and restrictions of, and the risks relating to, investment in the Portfolio in the prospectus for that Portfolio. Your financial advisor gives you the Portfolio prospectuses with this Prospectus. You can obtain an additional copy of a Portfolio’s prospectus without charge, by contacting us at the Annuities Service Center website, phone number or address shown on the first page of this Prospectus. You should read the Portfolio’s prospectus carefully before investing in the corresponding Variable Investment Option.

JOHN HANCOCK VARIABLE INSURANCE TRUST

We show the Portfolio’s investment adviser or subadviser (“manager”) in bold above the name of the Portfolio.

John Hancock Asset Management a division of Manulife Asset Management (US) LLC
Ultra Short Term Bond Trust	Seeks a high level of current income consistent with the maintenance of liquidity and the preservation of capital. To do this, the Portfolio invests at least 80% of its net assets in a diversified portfolio of domestic, investment grade debt securities. Note: The Ultra Short Term Bond Portfolio is not a money market fund. Although the Portfolio seeks to preserve the principal value of your investment, the Portfolio’s value fluctuates, and it is possible to lose money by investing in this investment option.
John Hancock Asset Management (North America) a division of Manulife Asset Management (North America) Limited
Money Market Trust	Seeks to obtain maximum current income consistent with preservation of principal and liquidity. To do this, the Portfolio invests in high quality, U.S. dollar denominated money market instruments. Note: Although the Money Market Portfolio seeks to preserve the principal value of your investment, it is possible to lose money by investing in this investment option. For example, the Money Market Portfolio could lose money if a security purchased by the Portfolio is downgraded, and the Portfolio must sell the security at less than the original cost of the security. Also, the returns of the Money Market Subaccount in your Contract may become extremely low or possibly negative whenever the net income earned, if any, by the underlying Money Market Portfolio is not sufficient to offset the Contract’s expense deductions.

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JOHN HANCOCK VARIABLE INSURANCE TRUST

We show the Portfolio’s investment adviser or subadviser (“manager”) in bold above the name of the Portfolio.

John Hancock Asset Management a division of Manulife Asset Management (US) LLC and John Hancock Asset Management (North America) a division of Manulife Asset Management (North America) Limited
Core Strategy Trust	Seeks long term growth of capital; current income is also a consideration. To do this, the Portfolio invests approximately 70% of its total assets in equity securities and portfolios which invest primarily in equity securities and approximately 30% of its total assets in fixed-income securities and portfolios which invest primarily in fixed income securities. The Portfolio is a fund of funds and is also authorized to invest in other underlying portfolios and investment companies.
Lifestyle Balanced MVP	Seeks growth of capital and current income while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses. The Portfolio seeks to limit the volatility of returns to a range of 8.25% to 10.25%. The Portfolio is a fund of funds and invests primarily in underlying portfolios that invest primarily in equity securities and underlying portfolios that invest primarily in fixed-income securities. The Portfolio’s risk management strategy may cause the Portfolio’s economic exposure to equity securities, fixed-income securities and cash and cash equivalents to fluctuate and during extreme market volatility, the Portfolio’s economic exposure to either equity securities or fixed-income securities could be reduced to 0% and its economic exposure to cash and cash equivalents could increase to 100%. The subadvisor normally will seek to limit the Portfolio’s exposure to equity securities (either directly or through investment in underlying portfolios or derivatives) to no more than 55%.
Lifestyle Balanced PS Series	Seeks a balance between a high level of current income and growth of capital, with a greater emphasis on growth of capital. The Portfolio operates as a fund of funds and normally invests approximately 50% of its assets in underlying portfolios that invest primarily in equity securities or in futures contracts on equity markets and approximately 50% of its assets in underlying portfolios that invest primarily in fixed-income securities or in futures contracts on fixed-income markets. Underlying portfolios may include ETFs and the Portfolio may invest a significant portion of its assets in ETFs.
Lifestyle Conservative MVP	Seeks current income and growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses. The Portfolio seeks to limit the volatility of returns to a range of 5.5% to 6.5%. The Portfolio is a fund of funds and invests primarily in underlying portfolios that invest primarily in equity securities and underlying portfolios that invest primarily in fixed-income securities. The Portfolio’s risk management strategy may cause the Portfolio’s economic exposure to equity securities, fixed-income securities and cash and cash equivalents to fluctuate and during extreme market volatility, the Portfolio’s economic exposure to either equity securities or fixed-income securities could be reduced to 0% and its economic exposure to cash and cash equivalents could increase to 100%. The subadvisor normally will seek to limit the Portfolio’s exposure to equity securities (either directly or through investment in underlying portfolios or derivatives) to no more than 22%.

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JOHN HANCOCK VARIABLE INSURANCE TRUST

We show the Portfolio’s investment adviser or subadviser (“manager”) in bold above the name of the Portfolio.

John Hancock Asset Management a division of Manulife Asset Management (US) LLC and John Hancock Asset Management (North America) a division of Manulife Asset Management (North America) Limited
Lifestyle Conservative PS Series	Seeks a high level of current income with some consideration given to growth of capital. The Portfolio operates as a fund of funds and normally invests approximately 80% of its assets in underlying portfolios that invest primarily in fixed-income securities or in futures contracts on fixed-income markets and approximately 20% of its assets in underlying portfolios that invest primarily in equity securities or in futures contracts on equity markets. Underlying portfolios may include ETFs and the Portfolio may invest a significant portion of its assets in ETFs.
Lifestyle Growth MVP	Seeks long-term growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses. The Portfolio seeks to limit the volatility of returns to a range of 11% to 13%. The Portfolio is a fund of funds and invests primarily in underlying portfolios that invest primarily in equity securities and underlying portfolios that invest primarily in fixed-income securities. The Portfolio’s risk management strategy may cause the Portfolio’s economic exposure to equity securities, fixed-income securities and cash and cash equivalents to fluctuate and during extreme market volatility, the Portfolio’s economic exposure to either equity securities or fixed-income securities could be reduced to 0% and its economic exposure to cash and cash equivalents could increase to 100%. The subadvisor normally will seek to limit the Portfolio’s exposure to equity securities (either directly or through investment in underlying portfolios or derivatives) to no more than 77%.
Lifestyle Growth PS Series	Seeks long-term growth of capital. Current income is also a consideration. The Portfolio operates as a fund of funds and normally invests approximately 70% of its assets in underlying portfolios that invest primarily in equity securities or in futures contracts on equity markets and approximately 30% of its assets in underlying portfolios that invest primarily in fixed-income securities or in futures contracts on fixed-income markets. Underlying portfolios may include ETFs and the Portfolio may invest a significant portion of its assets in ETFs.
Lifestyle Moderate MVP	Seeks current income and growth of capital while seeking to both manage the volatility of return and limit the magnitude of Portfolio losses. The Portfolio seeks to limit the volatility of returns to a range of 7% to 9%. The Portfolio is a fund of funds and invests primarily in underlying portfolios that invest primarily in equity securities and underlying portfolios that invest primarily in fixed-income securities. The Portfolio’s risk management strategy may cause the Portfolio’s economic exposure to equity securities, fixed-income securities and cash and cash equivalents to fluctuate and during extreme market volatility, the Portfolio’s economic exposure to either equity securities or fixed-income securities could be reduced to 0% and its economic exposure to cash and cash equivalents could increase to 100%. The subadvisor normally will seek to limit the Portfolio’s exposure to equity securities (either directly or through investment in underlying portfolios or derivatives) to no more than 44%.

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JOHN HANCOCK VARIABLE INSURANCE TRUST

We show the Portfolio’s investment adviser or subadviser (“manager”) in bold above the name of the Portfolio

John Hancock Asset Management a division of Manulife Asset Management (US) LLC and John Hancock Asset Management (North America) a division of Manulife Asset Management (North America) Limited

Lifestyle Moderate PS Series

Seeks a balance between a high level of current income and growth of capital, with a greater emphasis on income. The Portfolio operates as a fund of funds and normally invests approximately 60% of its assets in underlying portfolios that invest primarily in fixed-income securities or in futures contracts on fixed-income markets and approximately 40% of its assets in underlying portfolios that invest primarily in equity securities or in futures contracts on equity markets. Underlying portfolios may include ETFs and the Portfolio may invest a significant portion of its assets in ETFs.

For more information regarding these Portfolios, including information relating to their investment objectives, policies and restrictions, and the risks of investing in such Portfolios, please see the prospectuses for the applicable Portfolios. Your financial advisor gives you the Portfolio prospectuses with this Prospectus. You can obtain an additional copy of the Portfolio prospectuses by contacting the Annuities Service Center shown on the first page of this Prospectus. You should read each Portfolio’s prospectus carefully before investing in a corresponding Variable Investment Option.

Voting Interest

We vote Portfolio shares held in a Separate Account at any Portfolio shareholder meeting in accordance with timely voting instructions received from the persons having the voting interest under the Contract. We determine the number of Portfolio shares for which voting instructions may be given not more than 90 days prior to the meeting. We arrange for voting materials to be distributed to each person having the voting interest under the Contract together with appropriate forms for giving voting instructions. If there are shares of a Portfolio held by a Subaccount for which we do not receive timely voting instructions, we will vote those shares in the same proportion as the total votes for all of our registered separate accounts for which we have received timely instructions. We will vote all Portfolio shares that we hold directly in our General Account in the same proportion as the total votes for all our registered separate accounts and those of any of our affiliates for which we have received timely instructions. One effect of this proportional voting is that a small number of Contract Owners can determine the outcome of a vote.

During the Accumulation Period, the Contract Owner has the voting interest under a Contract. We determine the number of votes for each Portfolio for which voting instructions may be given by dividing the value of the Variable Investment Option corresponding to the Subaccount in which such Portfolio shares are held by the net asset value per share of that Portfolio.

During the Pay-out Period, the Annuitant has the voting interest under a Contract. We determine the number of votes as to each Portfolio for which voting instructions may be given by dividing the reserve for the Contract allocated to the Subaccount in which such Portfolio shares are held by the net asset value per share of that Portfolio. Generally, the number of votes tends to decrease as annuity payments progress since the amount of reserves attributable to a Contract will usually decrease after commencement of annuity payments.

We reserve the right to make any changes in the voting rights described above that may be permitted by the federal securities laws, regulations, or interpretations thereof.

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V. Description of the Contract

Eligibility

The Contract may be purchased only by direct rollovers of “eligible” distributions from a GIFL Select Retirement Account. If you qualify for an “eligible” distribution from a GIFL Select Retirement Plan, you may purchase a Contract by directing your plan sponsor or administrator to issue instructions for us to roll over all or any portion of:

• your “non-Roth” GIFL Select Retirement Account to a Contract issued as a traditional IRA; or

• your “non-Roth” GIFL Select Retirement Account to a Contract issued as a Roth IRA; or

• your “Roth” GIFL Select Retirement Account to a Contract issued as a Roth IRA.

This Contract is not available for purchase, however, if you are a non-Spousal beneficiary of a participant in a GIFL Select Retirement Plan.

If you receive an “eligible” distribution from a GIFL Select Retirement Plan, you may purchase a Contract within 60 days of receipt by submitting a completed application to our Annuities Service Center and remitting a direct rollover of all or any amount you receive:

• from your “non-Roth” GIFL Select Retirement Account for a Contract to be issued as a traditional IRA; or

• from your “non-Roth” GIFL Select Retirement Account for a Contract to be issued as a Roth IRA; or

• from your “Roth” GIFL Select Retirement Account for a Contract to be issued as a Roth IRA.

We will issue a Contract as either a traditional IRA or as a Roth IRA, but not both. If you want both a traditional IRA and a Roth IRA, you may need to issue instructions to your plan sponsor or administrator (or complete separate applications) to purchase separate Contracts.

Please read “VII. Federal Tax Matters” carefully for information about “eligible” distributions and the imposition of federal income tax, including tax withholding, that may be required in connection with purchases of Contracts as Roth IRAs with amounts derived from “non-Roth” GIFL Select Retirement Plan accounts.

When you purchase a Contract from John Hancock New York, you will receive a certificate of coverage under a group contract issued by John Hancock New York to trustees of one or more trusts which permit individuals to purchase IRAs or for IRA annuities.

The Purchase Payment

Your Purchase Payment must be a distribution of the GIFL Select Account Value to a Contract that you intend to use as a traditional IRA or a Roth IRA. We do not permit additional contributions to a Contract. Please see “VII. Federal Tax Matters” for general information about IRA contributions and special qualification rules that apply to Roth IRAs.

You designate how your Purchase Payment is to be allocated among the Variable Investment Options. We credit your Purchase Payment on the Business Day on which it is deemed received in Good Order at our Annuities Service Center, and no later than two Business Days after our receipt of all information necessary for issuing the Contract. We do not deem distributions from a GIFL Select Retirement Plan to be received until the Business Day following the date we receive distribution instructions from the plan sponsor or administrator of the Plan. As a result, there will be a delay of at least one day in which your distribution will not be invested in a Contract. We will inform you of any deficiencies preventing processing if your Contract cannot be issued. If the deficiencies are not remedied within five Business Days after receipt, we will return your Purchase Payment promptly to the plan that made the distribution, unless you specifically consent to our retaining your Purchase Payment until all necessary information is received.

Variable Investment Options and Accumulation Units

During the Accumulation Period, we establish an Investment Account for each Variable Investment Option to which you allocate a portion of your Contract Value. We credit amounts to those Variable Investment Options in the form of “accumulation units” to measure the value of the variable portion of your Contract during the Accumulation Period. We calculate and credit the number of accumulation units in each of your Contract’s Variable Investment Options by dividing (i) the amount allocated to that Variable Investment Option by (ii) the value of an accumulation unit for that Variable Investment Option we next compute after a purchase transaction is complete.

We will usually credit Purchase Payments received by mail or wire transfer on the Business Day on which they are received in Good Order at our Annuities Service Center, and no later than two Business Days after our receipt of all information necessary for issuing the Contract. We will inform you of any deficiencies preventing processing if your Contract cannot be issued. If the deficiencies are not remedied within five Business Days after receipt of your Purchase Payment, we will return your Purchase Payment promptly,

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unless you specifically consent to our retaining your Purchase Payment until all necessary information is received. We credit Purchase Payments received by wire transfer from broker-dealers on the Business Day received by us if the broker-dealers have made special arrangements with us.

We deduct accumulation units based on the value of an accumulation unit we next compute each time you make a withdrawal or transfer amounts from a Variable Investment Option, and when we deduct certain Contract charges, pay death proceeds, or apply amounts to an Annuity Option.

Value of Accumulation Units

The value of your accumulation units will vary from one Business Day to the next depending upon the investment results of the Variable Investment Options holding Contract assets. We arbitrarily set the value of an accumulation unit for each Subaccount on the first Business Day the Subaccount was established. We determine the value of an accumulation unit for any subsequent Business Day by multiplying (i) the value of an accumulation unit for the immediately preceding Business Day by (ii) the “net investment factor” for that Subaccount (described below) for the Business Day on which the value is being determined. We value accumulation units as of the end of each Business Day. We deem a Business Day to end, for these purposes, at the time a Portfolio determines the net asset value of its shares.

We will use a Portfolio share’s net asset value at the end of a Business Day to determine accumulation unit value for a Purchase Payment, withdrawal or transfer transaction only if:

• your Purchase Payment transaction is complete before the close of daytime trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time) for that Business Day; or

• we receive your request for a withdrawal or transfer of Contract Value at the Annuities Service Center before the close of daytime trading on the New York Stock Exchange for that Business Day.

Automated Transactions. Automated transactions include transfers under the Asset Rebalancing program, pre-scheduled withdrawals, Required Minimum Distributions, substantially equal periodic payments under section 72(t) of the Code, transactions scheduled to occur on your Contract Anniversary, and annuity payments. Automated transactions are processed and valued as of the date they are scheduled, unless the scheduled day is not a Business Day. In that case, the transaction will be processed and valued on the next Business Day unless, with respect to Required Minimum Distributions, substantially equal periodic payments under section 72(t) of the Code, and annuity payments only, the next Business Day falls in the subsequent calendar year, in which case the transaction will be processed and valued on the prior Business Day. Please see the SAI for more information on processing automated transactions.

Net Investment Factor

The net investment factor is an index used to measure the investment performance of a Subaccount over a valuation period. The net investment factor may be greater, less than or equal to one; therefore, the value of an accumulation unit may increase, decrease or remain the same. We determine the net investment factor for each Subaccount for any valuation period by dividing (a) by (b) and subtracting (c) from the result, where:

(a) is the net asset value per share of a Portfolio share held in the Subaccount determined at the end of the current valuation period, plus any dividends and distributions received per share during the current valuation period;

(b) is the net asset value per share of a Portfolio share held in the Subaccount determined as of the end of the immediately preceding valuation period; and

(c) is a factor representing the charges deducted from the Subaccount on a daily basis for Annual Separate Account Expenses.

Transfers Among Variable Investment Options

Prior to the Annuity Commencement Date, you may transfer amounts among the Variable Investment Options, subject to the frequent trading restrictions set forth below.

You may make a transfer by providing written notice to us, by telephone or by other electronic means that we may provide through the Internet (see “Telephone and Electronic Transactions,” below). We will cancel accumulation units from the Variable Investment Option from which you transfer amounts and we will credit accumulation units to the Variable Investment Option to which you transfer amounts. Your Contract Value on the date of the transfer will not be affected by a transfer. You must transfer at least $300 or, if less, the entire value of the Variable Investment Option. If after the transfer the amount remaining in the Variable Investment Option is less than $100, then we may transfer the entire amount instead of the requested amount.

The first twelve transfers in a Contract Year are free of any transfer charge. For each additional transfer in a Contract Year, we do not currently assess a charge but we reserve the right (to the extent permitted by your Contract) to assess a reasonable charge (not to exceed the lesser of $25 or 2% of the amount transferred) to reimburse us for the expenses of processing transfers.

Frequent Transfer Restrictions. Variable Investment Options in variable annuity and variable life insurance products can be a target for abusive transfer activity because these products value their investment options on a daily basis and allow transfers among

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investment options without immediate tax consequences. As a result, some investors may seek to frequently transfer into and out of Variable Investment Options in reaction to market news or to exploit some perceived pricing inefficiency. Whatever the reason, frequent transfer activity can harm long-term investors in a Variable Investment Option since such activity may expose a Variable Investment Option’s underlying Portfolio to increased Portfolio transaction costs and/or disrupt the Portfolio manager’s ability to effectively manage a Portfolio in accordance with its investment objective and policies, both of which may result in dilution with respect to interests held for long-term investment.

To discourage disruptive frequent trading activity, we have adopted a policy for each Separate Account to restrict transfers to two per calendar month per Contract, with certain exceptions, and have established procedures to count the number of transfers made under a Contract. Under the current procedures of the Separate Accounts, we count all transfers made during each Business Day as a single transfer. We do not count: (a) scheduled transfers made pursuant to our Asset Rebalancing program, (b) transfers made within a prescribed period before and after a substitution of underlying Portfolios, and (c) transfers made after the Annuity Commencement Date (these transfers are subject to a 30-day notice requirement, however, as described in “Annuitization Provisions -Transfers after Annuity Commencement Date”). We apply each Separate Account’s policy and procedures uniformly to all Contract Owners.

We reserve the right to take other actions to restrict trading, including, but not limited to:

• restricting the number of transfers made during a defined period;

• restricting the dollar amount of transfers;

• restricting the method used to submit transfers (e.g., requiring transfer requests to be submitted in writing via U.S. mail); and

• restricting transfers into and out of certain Subaccount(s).

In addition, we reserve the right to defer a transfer at any time we are unable to purchase or redeem shares of the Portfolios (see “Withdrawals” in this section, below, for details on when suspensions of redemptions may be permissible). We also reserve the right to modify or terminate the transfer privilege at any time (to the extent permitted by applicable law).

In addition to the transfer restrictions that we impose, the John Hancock Variable Insurance Trust also has adopted policies under Rule 22c-2 of the 1940 Act to detect and deter abusive short-term trading. Accordingly, a Portfolio may require us to impose trading restrictions if it discovers violations of its frequent short-term trading policy. We will provide tax identification numbers and other Contract Owner transaction information to John Hancock Variable Insurance Trust upon request, which it may use to identify any pattern or frequency of activity that violates its short-term trading policy.

While we seek to identify and prevent disruptive frequent trading activity, it is not always possible to do so. Therefore, we cannot provide assurance that the restrictions we impose will be successful in restricting disruptive frequent trading activity and avoiding harm to long-term investors.

Maximum Number of Variable Investment Options

We currently do not limit the number of Variable Investment Options to which you may allocate the Purchase Payment.

Telephone and Electronic Transactions

We permit you to request transfers automatically by telephone. You can also apply to request withdrawals automatically by telephone. We also encourage you to access information about your Contract, request transfers and perform some transactions electronically through the Internet. Please contact the John Hancock Annuities Service Center at the applicable telephone number or Internet address shown on the first page of this Prospectus for more information on electronic transactions.

To access information and perform electronic transactions through our website, we require you to create an account with a username and password, and to maintain a valid e-mail address. You may also authorize other people to make certain transaction requests by telephone by sending us instructions in a form acceptable to us. If you register for electronic delivery, we keep your personal information confidential and secure, and we do not share this information with outside marketing agencies.

We will not be liable for following instructions communicated by telephone or electronically that we reasonably believe to be genuine. We will employ reasonable procedures to confirm that instructions we receive are genuine. Our procedures require you to provide information to verify your identity when you call us and we will record all conversations with you. When someone contacts us by telephone and follows our procedures, we will assume that you are authorizing us to act upon those instructions. For electronic transactions through the Internet, you will need to provide your username and password. You are responsible for keeping your password confidential and must notify us of:

• any loss or theft of your password; or

• any unauthorized use of your password.

We may be liable for any losses due to unauthorized or fraudulent instructions only where we fail to employ our procedures properly.

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All transaction instructions we receive by telephone or electronically will be followed by either a hardcopy or electronic delivery of a transaction confirmation. Transaction instructions we receive by telephone or electronically before the close of any Business Day will usually be effective at the end of that day. Your ability to access or transact business electronically may be limited due to circumstances beyond our control, such as system outages, or during periods when our telephone lines or our website may be busy. We may, for example, experience unusual volume during periods of substantial market change.

We may suspend, modify or terminate our telephone or electronic transaction procedures at any time. We may, for example, impose limits on the maximum Withdrawal Amount available to you through a telephone transaction. Also, as stated earlier in this Prospectus, we have imposed restrictions on transfers and reserve the right to take other actions to restrict trading, including the right to restrict the method used to submit transfers (e.g., by requiring transfer requests to be submitted in writing via U.S. mail). We also reserve the right to suspend or terminate the transfer privilege altogether with respect to anyone who we feel is abusing the privilege to the detriment of others.

Special Transfer Services – Asset Rebalancing Program

We administer an Asset Rebalancing program which enables you to specify the allocation percentage levels you would like to maintain in particular Variable Investment Options. We will automatically rebalance your Contract Value pursuant to the schedule described below to maintain the indicated percentages by transfers among the Variable Investment Options. You must include your entire value in the Variable Investment Options in the Asset Rebalancing program. Other investment programs or other transfers or withdrawals may not work in concert with the Asset Rebalancing program. Therefore, you should monitor your use of these other programs and any other transfers or withdrawals while the Asset Rebalancing program is being used. If you are interested in the Asset Rebalancing program, you may obtain a separate authorization form and full information concerning the program and its restrictions from your financial advisor or our Annuities Service Center. There is no charge for participation in the Asset Rebalancing program.

We will permit asset rebalancing only on the following time schedules:

• quarterly on the 25th day of the last month of the calendar quarter (or the next Business Day if the 25th is not a Business Day);

• semi-annually on June 25th and December 26th (or the next Business Day if these dates are not Business Days); or

• annually on December 26th (or the next Business Day if December 26th is not a Business Day).

You should consult with your financial advisor to assist you in determining whether the Asset Rebalancing program is suited for your financial needs and investment risk tolerance, and in determining appropriate percentages for each Investment Option you select.

Withdrawals

During the Accumulation Period, you may withdraw all or a portion of your Contract Value upon written request (complete with all necessary information) to our Annuities Service Center. You may make withdrawals by telephone as described above under “Telephone and Electronic Transactions.” For certain Contracts, exercise of the withdrawal right may require the consent of the Annuitant’s Spouse under the Code. In the case of a total withdrawal, we will pay the Contract Value as of the date of receipt of the request in Good Order, at our Annuities Service Center, minus any applicable administrative fee or tax. We will then cancel the Contract. In the case of a total withdrawal, we will pay the amount requested, reduced by any applicable administrative fee or amount withheld for taxes, and cancel accumulation units credited to each Variable Investment Option equal in value to the Withdrawal Amount from that Variable Investment Option.

When making a withdrawal, you may specify the Variable Investment Options from which the withdrawal is to be made. The Withdrawal Amount requested from a Variable Investment Option may not exceed the value of that Variable Investment Option. If you do not specify the Variable Investment Options from which a withdrawal is to be taken, we will take the withdrawal proportionally from all of your Variable Investment Options. There is no limit on the frequency of withdrawals.

We will pay the amount of any withdrawal from the Variable Investment Options promptly, and in any event within seven days of receipt of the request, complete with all necessary information, at our Annuities Service Center. We reserve the right to defer the right of withdrawal or postpone payments for any period when:

• the New York Stock Exchange is closed (other than customary weekend and holiday closings);

• trading on the New York Stock Exchange is restricted;

• an emergency exists as determined by the SEC, as a result of which disposal of securities held in the Separate Accounts is not reasonably practicable or it is not reasonably practicable to determine the value of the Separate Accounts’ net assets; or

• the SEC, by order, so permits for the protection of security holders.

Applicable rules and regulations of the SEC shall govern as to whether trading is restricted or an emergency exists.

Impact of Divorce. In the event that you and your Spouse become divorced, we will treat any request to reduce or divide benefits under a Contract as a request for a withdrawal of Contract Value. The transaction may be subject to any applicable tax.

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Tax Considerations. Withdrawals from the Contract may be subject to income tax and a 10% penalty tax (see “VII. Federal Tax Matters”).

Signature Guarantee Requirements for Surrenders and Withdrawals

(Not applicable to Contracts issued in New Jersey)

We may require that you provide a signature guarantee on a surrender or withdrawal request in the following circumstances:

• you are requesting that we mail the amount withdrawn to an alternate address; or

• you have changed your address within 30 days of the withdrawal request; or

• you are requesting a withdrawal in the amount of $250,000 or greater.

We must receive the original signature guarantee on your withdrawal request. We will not accept copies or faxes of a signature guarantee. You may obtain a signature guarantee at most banks, financial institutions or credit unions. A notarized signature is not the same as a signature guarantee and will not satisfy this requirement. There may be circumstances, of which we are not presently aware, in which we would not impose a signature guarantee on a surrender or withdrawal as described above.

Special Withdrawal Services – The Income Made Easy Program

Our Income Made Easy program provides you with an automatic way to access guaranteed withdrawal amounts. There is no charge for participation in this program. For more information please read “Pre-Authorized Withdrawals – The Income Made Easy Program” in the “GIFL Select Guaranteed Lifetime Income Withdrawal Benefit” section below.

GIFL Select Guaranteed Lifetime Income Withdrawal Benefit

Overview

The Contract permits you to take withdrawals of any amount of Contract Value before the Annuity Commencement Date. We designed the GIFL Select feature of the Contract to provide a guaranteed minimum withdrawal benefit after you satisfy holding period and age requirements. The GIFL Select feature provides a Lifetime Income Amount, which is available for annual withdrawals starting on a Lifetime Income Date. We may reduce the Lifetime Income Amount, however, if you take any withdrawal before the Lifetime Income Date, or if you withdraw amounts that exceed the Lifetime Income Amount in any year after the Lifetime Income Date. We refer to these types of withdrawals as Excess Withdrawals.

If you limit your annual withdrawals to the Lifetime Income Amount, we guarantee that we will make the Lifetime Income Amount available to you, as long as you are the Annuitant under the Contract. You may elect, in most cases, to cover the lifetimes of you and your Spouse by selecting a Spousal Lifetime Income Amount benefit. Under the Spousal Lifetime Income Amount benefit, we guarantee that we will make the Lifetime Income Amount available as long as you (the “Annuitant”) or your Spouse (the “co-Annuitant”) remains alive. The Spousal Lifetime Income Amount benefit will end if there is a change in the Contract that removes the co-Annuitant from coverage and the Annuitant subsequently dies.

We determine a Benefit Base for the Lifetime Income Amount when you first purchase a Contract. We may decrease the Benefit Base to reflect any Excess Withdrawals. We may increase the Benefit Base to reflect one or more annual Benefit Enhancements for which you qualify, and we may also increase the Benefit Base by a one-time Step-Up to reflect investment gains, if any, on the Contract Anniversary before you “establish” the Lifetime Income Amount. The Benefit Base has no cash value and usually will differ from the amount of Contract Value. The maximum Benefit Base is $5 million.

We calculate the Lifetime Income Amount as a percentage of the Benefit Base applicable to your Contract. The percentage we use depends on the form of Lifetime Income Amount applicable to your Contract. The percentage ranges from 4% (Single Life Lifetime Income Amount established before the Age 65 Trigger) to 4.5% (Spousal Lifetime Income Amount) to 5% (Single Life Lifetime Income Amount established on or after the Age 65 Trigger). We use the rate at which you established a guaranteed minimum withdrawal benefit under a GIFL Select Retirement Plan if you received distributions under the Plan and will continue to take distributions under a Contract. In that event, we will use the rate applicable to your GIFL Select Retirement Plan account. Please refer to “Determination of a Single Life, Continuation Single Life or Spousal Lifetime Income Amount,” below, for more information about the applicable rate.

Impact of Withdrawals before the Lifetime Income Date

With limited exceptions, any withdrawal before the Lifetime Income Date is an Excess Withdrawal. This means that we will reduce the Benefit Base. We do this on a pro rata basis or a dollar for dollar basis, whichever has the greater impact on the Benefit Base. If we use the pro rata basis, we reduce the Benefit Base in the same proportion that your Contract Value is reduced as a result of that withdrawal.

EXAMPLE 1 (Pro Rata Reduction):

Assume that you purchase a Contract through an IRA Rollover when you are 45. (Since you have not reached your Age 59 ¹/₂ Trigger at time of purchase, the earliest Lifetime Income Date will not occur until your Age 59 ¹/₂ Trigger.) Now assume that in the eighth Contract Year, when you are 53, the Contract Value is $90,000, the Benefit Base is $100,000 and you withdraw $5,000 of Contract

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Value. In this case, you would reduce your Contract Value by 5.56% (i.e., $5,000/$90,000) and we would reduce your Benefit Base by the same percentage (on a pro rata basis, since $100,000 times 0.0556, or $5,556 is greater than $5,000). The Benefit Base after the Excess Withdrawal would be $100,000 minus $5,556, or $94,444.

EXAMPLE 2 (Dollar for Dollar Reduction):

Assume that you purchase a Contract through an IRA Rollover when you are 45. (Since you have not reached your Age 59 ¹/₂ Trigger at time of purchase, the earliest Lifetime Income Date will not occur until your Age 59 ¹/₂ Trigger.) Now assume that in the eighth Contract Year, when you are 53, the Contract Value is $110,000, the Benefit Base is $100,000 and you withdraw $5,000 of Contract Value. In this case, you would reduce your Contract Value by 4.55% (i.e., $5,000/$110,000) and we would reduce your Benefit Base by $5,000 (on a dollar for dollar basis, since $5,000 is greater than $100,000 times 0.0455, which equals $4,545). The Benefit Base after the Excess Withdrawal would be $100,000 minus $5,000, or $95,000.

If you take any withdrawals prior to the earliest available Lifetime Income Date, we reduce the Benefit Base we use to determine the guaranteed Lifetime Income Amount. If your Contract Value and your Benefit Base decline to zero before that Lifetime Income Date, you will lose the Lifetime Income Amount Guarantee.

Impact of Withdrawals after the Lifetime Income Date

Establishing a Lifetime Income Amount. We calculate the earliest available Lifetime Income Amount on the first day of a Contract Year following your satisfaction of any age and holding period requirements. The Lifetime Income Amount will equal the applicable rate multiplied by the Benefit Base or the Contract Value on the Contract Anniversary, if greater. You will “establish” that Lifetime Income Amount by taking a withdrawal during the immediately following 12 months. If you do not take a withdrawal (or annuitize the Contract) during that Contract Year, we will recalculate the Lifetime Income Amount on the first day of the next Contract Year. This recalculation will reflect: (a) the addition of an annual Benefit Enhancement to the Benefit Base, (b) a reduction in the Contract Value, if any, from the Contract Value that we may have used in the previously calculated Lifetime Income Amount and, possibly, (c) an increase in the Contract Value to reflect investment gains, if any, as of the date of our recalculation. You will “establish” the recalculated Lifetime Income Amount by taking a withdrawal during the Contract Year of our recalculation. We will continue to follow this procedure throughout the Accumulation Period until you take a withdrawal or annuitize the Contract. Once you have established a guaranteed Lifetime Income Amount, we will step up the Benefit Base to the Contract Value (to a maximum Benefit Base of $5 million) if that amount is greater than the Benefit Base. You may withdraw the Lifetime Income Amount each Contract Year without affecting the Benefit Base. Once you establish the Lifetime Income Amount, there will be no additional Benefit Enhancements or Step-Up opportunities.

EXAMPLE 3 (Establishing the Earliest Available Lifetime Income Amount with Step-Up):

Assume that you purchase a Contract through an IRA Rollover when you are 60 and have met the minimum holding period requirement. Your Contract Value at time of rollover is $90,000 and your Benefit Base is $100,000. Since you have reached your Age 59 ¹/₂ Trigger at time of purchase, the earliest available Lifetime Income Date is the date we issue the Contract, and the Single Life Lifetime Income Amount on that date is ($100,000 × 4%), or $4,000. Now assume you defer taking your first withdrawal until the third Contract Year when you want to establish your Single Life Lifetime Income Amount. On the most recent Contract Anniversary, your Benefit Base is $106,090 and Contract Value is $112,000. By electing to take your first withdrawal, the Benefit Base will step up to the Contract Value on the prior Contract Anniversary. Your new Benefit Base is $112,000, which results in a Single Life Lifetime Income Amount of ($112,000 × 4%), or $4,480.

Loss of Step-Up. If you do not “establish” a previously determined Lifetime Income Amount, the recalculated Lifetime Income Amount will not include the Step-Up, if any, from a previously determined Lifetime Income Amount.

EXAMPLE 4 (Loss of Step-Up in a newly calculated Lifetime Income Amount):

Using the same Rollover scenario above, assume that you defer taking a withdrawal until the fourth Contract Year when you want to establish your Single Life Lifetime Income Amount. On the Contract Anniversary prior to taking a withdrawal, the Benefit Base is $109,273 and Contract Value is $107,000. By electing to take your first withdrawal, the Benefit Base will not step up because it is already greater than the Contract Value on the prior Contract Anniversary. Your Benefit Base of $109,273 will be used to calculate the Single Life Lifetime Income Amount of ($109,273 × 4%), or $4,371.

Please refer to “Increases in the GIFL Select Feature” for more information and examples of the Benefit Enhancement. Please refer to “Determination of the Lifetime Income Date” for more information about age and holding period requirements for the earliest available Lifetime Income Date.

Excess Withdrawals. Each time you take a withdrawal after the Lifetime Income Date, we first determine whether the withdrawal amount is an Excess Withdrawal (i.e., a withdrawal that exceeds the Lifetime Income Amount when combined with any other withdrawals for that Contract Year). If so, we will reduce the Benefit Base on the greater of a pro rata basis or a dollar for dollar basis. If we use the pro rata basis, we reduce your Benefit Base in the same proportion that your Contract Value has been reduced by the entire amount of the withdrawal that resulted in an Excess Withdrawal. If we use the dollar for dollar basis, we reduce the Benefit

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Base by the entire amount of the withdrawal that resulted in an Excess Withdrawal. In either case, each time we reduce the Benefit Base, we will also reduce your Lifetime Income Amount. The reduced Lifetime Income Amount will equal:

• (for Single Life Lifetime Income Amounts) 4% or 5% of the new Benefit Base based on the Annuitant’s age when the Lifetime Income Amount was established; or

• (for Spousal Lifetime Income Amounts) 4.50% of the new Benefit Base.

We calculate the reduced Lifetime Income Amount for a Continuation Single Life Lifetime Income Amounts by using the rate that was in effect when we issued your Contract. Please refer to “Determination of a Single Life, Continuation Single Life or Spousal Lifetime Income Amount,” below, for more information about the applicable rate.

In all cases, we reduce the Benefit Base and the Lifetime Income Amount for each subsequent Excess Withdrawal that you take during that Contract Year.

EXAMPLE 5 (Pro Rata Reduction):

Assume that you purchase a Contract through an IRA Rollover when you are 61 and have met the minimum holding period requirements. Your Contract Value at time of rollover is $90,000 and your Benefit Base is $100,000. Since you have reached your Age 59 ¹/₂ Trigger at time of purchase, the earliest available Lifetime Income Date is the date we issue the Contract, and the Single Life Lifetime Income Amount on that date is ($100,000 × 4%), or $4,000. Now assume that you make a single withdrawal of $10,000 of Contract Value 6 months after we issue the Contact. In this case, you would reduce your Contract Value by 11.11% (i.e., $10,000/$90,000). We would reduce your Benefit Base by $11,111 (on a pro rata basis, since $100,000 times 0.111, or $11,111 is greater than $10,000). The Benefit Base after the Excess Withdrawal would be $100,000 minus $11,111, or $88,889. The Lifetime Income Amount would also be reduced for future Contract Years from $4,000 to $3,556 (i.e., $88,889 × 4%).

EXAMPLE 6 (Dollar for Dollar Reduction):

Assume that you purchase a Contract through an IRA Rollover when you and your Spouse are 62. (Since you are both under age 65 at time of purchase, the earliest Lifetime Income Date will not occur until your Age 65 Trigger.) In the fourth Contract Year and after you have turned on your Spousal Lifetime Income Amount at $4,500 ($100,000 × 4.50%), the Contract Value is $110,000 and the Benefit Base is $100,000. You make an initial withdrawal of $4,000 (less than the Lifetime Income Amount) which reduces the Contract Value to $106,000 while the Benefit Base remains unchanged at $100,000. Later, during the same Contract Year, you make another withdrawal of $6,000. In this case, you would reduce your Contract Value by 5.66% (i.e., $6,000/$106,000). We would reduce your Benefit Base by $6,000 (on a dollar for dollar basis, since $6,000 is greater than $100,000 times 0.0566, which equals $5,660). The Benefit Base after the Excess Withdrawal would be $100,000 minus $6,000, or $94,000. The Lifetime Income Amount would also be reduced for future Contract Years from $4,500 to $4,230 (i.e., $94,000 × 4.50%).

Excess Withdrawals, with limited exceptions, lower the Lifetime Income Amount guaranteed for future withdrawals. If you have experienced unfavorable investment performance (and therefore your Contract Value is less than your Benefit Base) the reduction could be significantly more than the amount of the Excess Withdrawal.

We do not reduce the Benefit Base and/or the Lifetime Income Amount:

• if the withdrawals are taken under our Life Expectancy Distribution program, or

• if your total Withdrawal Amounts during any Contract Year after the Lifetime Income Date are less than or equal to the Lifetime Income Amount.

The Contract enters a “Settlement Phase” in any Contract Year that your Contract Value declines to less than the Lifetime Income Amount if you have taken no Excess Withdrawals during that Contract Year (see “Settlement Phase” below). In the event of an Excess Withdrawal, you will lose the GIFL Select benefit if Contract Value declines below the Lifetime Income Amount during the Contract Year of the Excess Withdrawal. The GIFL Select benefit terminates if the Contract Value and Benefit Base immediately after a withdrawal are both equal to zero.

We reduce your Contract Value (and the death proceeds) each time you take a withdrawal. We do not change your Benefit Base or Lifetime Income Amount when you make a withdrawal if your total withdrawals during a Contract Year are less than or equal to the Lifetime Income Amount.

Increases in the GIFL Select Feature

In addition to a one-time Step-Up opportunity, the GIFL Select feature of the Contract provides two other ways that have the potential to increase a Lifetime Income Amount: banded rates applicable to Single Life Lifetime Income Amounts and annual Benefit Enhancements. Please refer to “Establishing a Lifetime Income Amount,” above, for more information about the Step-Up opportunity.

Banded Single Life Rates. If you are eligible for a Single Life Lifetime Income Amount, you may have an opportunity to increase the Lifetime Income Amount by deferring withdrawals after your Age 59 ¹/₂ Trigger until you have reached your Age 65 Trigger. That’s because we calculate the Lifetime Income Amount before age 65 as an amount equal to 4% of the Benefit Base, and will increase the

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rate to 5% if you take no withdrawals of a Lifetime Income Amount until age 65. If you are under age 65, and take a withdrawal at any time after the earliest available Lifetime Income Date, you will establish a Lifetime Income Amount, based on a 4% rate and lose the opportunity to establish a Lifetime Income Amount based on a 5% rate.

EXAMPLE 7 (4% Single Life Lifetime Income Amount):

Assume you purchase a Contract through an IRA Rollover when you are 60 and have met the minimum holding period requirements. Your Contract Value at time of rollover is $90,000 and your Benefit Base is $100,000. Since you have reached your Age 59 ¹/₂ Trigger, your Lifetime Income Date is the date we issue the Contract, and the Single Life Lifetime Income Amount on that date is ($100,000 × 4%), or $4,000. You elect to take a withdrawal during that first contract year and start receiving the Lifetime Income Amount. You are not eligible for the 5% Single Life Lifetime Income Amount because you have taken your first withdrawal prior to reaching your Age 65 Trigger.

EXAMPLE 8 (5% Single Life Lifetime Income Amount):

Using the same Rollover scenario above, assume that you defer taking a withdrawal until the fifth Contract Year and you have reached your Age 65 Trigger. The Benefit Base on the most recent Contract Anniversary is $116,000 and your Single Life Lifetime Income Amount, should you take a withdrawal during that Contract Year, is ($116,000 × 5%), or $5,800.

Banded Single Life Rates do not necessarily result in a higher Lifetime Income Amount. Please see EXAMPLE 9, below, for information about the impact of a Step-Up on the Benefit Base.

We do not permit you to defer withdrawals in order to qualify for a 5% rate if you established a Spousal Lifetime Income Amount or if we issue a Contract with a Continuation Single Life Lifetime Income Amount.

Impact of Step-Up on Banded Rates. If you do not establish a previously determined Lifetime Income Amount for a Single Life Lifetime Income Amount, you may become eligible for a higher rate but may lose the advantage of a previously available Step-Up.

EXAMPLE 9 (Loss of Step-Up in a newly calculated Lifetime Income Amount with a higher rate):

Assume that you purchase a Contract through an IRA Rollover when you are 59 and have met the minimum holding period requirement. At the time of rollover your Contract Value and Benefit Base are $100,000. Assume that on the Contract Anniversary after turning 63 years of age your Contract Value is $150,000 and the Benefit Base is $112,551. The eligible Single Life Lifetime Income Amount during that Contract Year is $6,000 ($150,000 × 4%). However, you elect to defer withdrawals another year and on your Age 65 Trigger the Contract Value is $110,000 and the Benefit Base is $115,927. You elect to take your first withdrawal, which results in a Single Life Lifetime Income Amount of $5,796 ($115,927 × 5%).

Benefit Enhancements. On each Contract Anniversary during the Accumulation Phase and prior to you establishing a Lifetime Income Amount, we will add a Benefit Enhancement to the Benefit Base (up to a maximum Benefit Base of $5 million) if you have taken no withdrawals or annuitized the Contract during the immediately preceding Contract Year. The Benefit Enhancement is equal to 3% of the Benefit Base in effect at the end of that immediately preceding Contract Year. If you do not qualify for a Benefit Enhancement for a particular Contract Year, you may qualify for a Benefit Enhancement in other Contract Years if you defer: (a) taking withdrawals, (b) establishing a Lifetime Income Amount or (c) annuitizing the Contract in the other Contract Years. Benefit Enhancements have no cash value and will not affect the Contract Value.

EXAMPLE 10 (Benefit Enhancements):

Assume you purchase a Contract through an IRA Rollover when you are 60, you take no withdrawals during the first and second Contract Year and the Benefit Enhancement is 3%. Also assume that the initial Benefit Base is $100,000 and is not exceeded by Contract Value (a Step-Up does not occur).

• At the end of the first Contract Year, we will apply the Benefit Enhancement to the Benefit Base and increase it to $103,000 ($100,000 + 3% × $100,000).

• At the end of the second Contract Year, we will apply the Benefit Enhancement to the Benefit Base and increase it again to $106,090 ($103,000 + 3% × $103,000).

Now assume an Excess Withdrawal is taken in the third Contract Year that reduces the Benefit Base to $98,000 and no additional withdrawals are taken in the fourth Contract Year.

• At the end of the third Contract Year, there is no Benefit Enhancement because you took a withdrawal during the year.

• At the end of the fourth Contract Year, we will apply the Benefit Enhancement to the Benefit Base. The Benefit Enhancement will be based on the reduced Benefit Base. The Benefit Base will increase to $100,940 ($98,000 + 3% × 98,000).

Since the GIFL Select fee is a percentage of the Benefit Base, we will increase the amount of the GIFL Select fee after a Benefit Enhancement to reflect the new Benefit Base. (See “VI. Charges and Deductions – GIFL Select Fee”).

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Determination of the Lifetime Income Date

Single Life Lifetime Income Amounts. Under a Single Life form of Lifetime Income Amount, the earliest available Lifetime Income Date is the date we issue your Contract if:

• you, the Annuitant, will be at least age 59 ¹/₂ at any time during the first Contract Year; and

• you were a participant in your employer’s GIFL Select Retirement Plan and completed a 5 year “holding period” requirement for the guaranteed minimum withdrawal benefit we provided for your account in that plan.

In this case, the date we issue your Contract will be the Age 59 ¹/₂ Trigger, or the Age 65 Trigger if you will be at least age 65 at any time during the first Contract Year.

In all other cases, the earliest available Lifetime Income Date for a Single Life form of Lifetime Income Amount is the first day of a Contract Year in which:

• you, the Annuitant, will have reached your Age 59 ¹/₂ Trigger; and

• you have already completed a “holding period” of no more than 5 years. We will transfer credit for the holding period from your (or your decedent Spouse’s) account with an employer’s GIFL Select Retirement Plan.

Continuation Single Life Lifetime Income Amounts. The earliest available Lifetime Income Date for a Continuation Single Life form of Lifetime Income amount is the date we issue your Contract.

Spousal Lifetime Income Amount. Under a Spousal Lifetime Income Amount, the earliest available Lifetime Income Date is the date we issue your Contract if:

• you, the Annuitant, and your Spouse, the co-Annuitant, will both be at least age 65 at any time during the first Contract Year; and

• you were a participant in your employer’s GIFL Select Retirement Plan and completed the holding period requirement for the guaranteed minimum withdrawal benefit we provided for your account.

In this case, the date we issue your Contract will be the Age 65 Trigger.

In all other cases, the earliest available Lifetime Income Date for a Spousal Lifetime Income Amount is the first day of a Contract Year in which:

• you, the Annuitant, and your Spouse, the co-Annuitant, will both reach your Age 65 Trigger; and

• you have already completed a “holding period” of no more than 5 years. We will transfer credit for the holding period from your (or your decedent Spouse’s) account with your employer’s GIFL Select Retirement Plan.

Determination of a Single Life, Continuation Single Life or Spousal Lifetime Income Amount

Single Life. You are eligible to select a Single Life Lifetime Income Amount if:

• you are the Annuitant under the Contract and we did not make any payments under your employer’s GIFL Select Retirement Plan to you or to any current, former or decedent Spouse of yours that was covered by our Spousal lifetime income guaranteed minimum withdrawal benefit; or

• you are the Annuitant under the Contract, and the Spouse of a deceased participant under a GIFL Select Retirement Plan and neither you nor the deceased participant established a lifetime income guaranteed minimum withdrawal benefit under the plan before the death of the participant; or

• you are the Annuitant under the Contract; and

^¡   you had established an account in your GIFL Select Retirement Plan that was covered by a Spousal guaranteed minimum withdrawal benefit; and

^¡   you subsequently split and changed it to two “single life” accounts in connection with a divorce or a legal separation; and

^¡   you do not include your Spouse as a “co-Annuitant” in the Contract you purchase.

You will establish a Single Life Lifetime Income Amount based on 4% of the Benefit Base if:

• you take your first withdrawal after the earliest available Lifetime Income Date; and

• you take such withdrawal during a Contract Year when you, the Annuitant, will have reached your Age 59 ¹/₂ Trigger, but will not have reached your Age 65 Trigger.

If you establish a Single Life Lifetime Income amount based on 4% of the Benefit Base, you will not be eligible for a Single Life Lifetime Income Amount based on 5% of the Benefit Base.

You will establish a Single Life Lifetime Income Amount based on 5% of the Benefit Base if:

• you take your first withdrawal after the earliest available Lifetime Income Date; and

• you take such withdrawal during a Contract Year when you, the Annuitant, will have reached your Age 65 Trigger.

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Continuation Single Life. We will issue a Contract with a Continuation Single Life Lifetime Income Amount if you are the Annuitant under the Contract and either:

• (CASE ONE) you are a former participant in a GIFL Select Retirement Plan and were receiving distributions from a GIFL Select Retirement Plan account that was covered by a single life guarantee; or

• (CASE TWO) you are a former participant in a GIFL Select Retirement Plan, you were receiving distributions a GIFL Select Retirement Plan account that was covered by a Spousal guarantee, and your Spouse has died; or

• (CASE THREE) you are the surviving Spouse of a participant in a GIFL Select Retirement Plan and the beneficiary of a GIFL Select Retirement Plan account that was covered by a Spousal guarantee.

In CASE ONE, we will issue a Contract with a Lifetime Income Amount based on the rate in effect for the guaranteed minimum withdrawal benefit that you established under the GIFL Select Retirement Plan. We will calculate the Lifetime Income Amount based on 4% of the Benefit Base if you commenced receiving distributions under the plan before your Age 65 Trigger. We will calculate a Lifetime Income Amount based on 5% of the Benefit Base if you commenced receiving distributions under the plan on and after your Age 65 Trigger.

In CASE TWO and in CASE THREE, we will issue a Contract with a Lifetime Income Amount based on 4.5% of the Benefit Base.

Spousal Life. You can select a Spousal Lifetime Income Amount if:

• you are the Annuitant under the Contract; and

• your Spouse is the co-Annuitant under the Contract; and

• you did not establish a single-life guaranteed minimum withdrawal benefit in your GIFL Select Retirement Plan.

You will establish a Spousal Lifetime Income Amount based on 4.5% of the Benefit Base if:

• you take your first withdrawal after the earliest available Lifetime Income Date; and

• you and your Spouse have both reached your Age 65 Trigger at the time of such withdrawal; and

• you have named your Spouse as a Co-Annuitant under the Contract; and

• you have completed any forms that we may require for the selection of a Spousal Lifetime Income Amount.

Changing a selection. You can make a selection of a Single Life Lifetime Income Amount or a Spousal Lifetime Income Amount (if you qualify) at any time before you establish the Lifetime Income Amount by contacting the Annuities Service Center and completing any forms that we may require. You can change your designation of a Single Life or Spousal Lifetime Income Amount after the earliest available Lifetime Income Date only if you defer “establishing” a Lifetime Income Amount. You establish a Lifetime Income Amount if you make any withdrawals from the earliest available Lifetime Income Date up to the date of the change in designation. You can change your designation up until the date you take a withdrawal.

If you establish a Spousal Lifetime Income Amount on or after your Age 65 Trigger instead of a Single Life Lifetime Income Amount, we will calculate a lower Lifetime Income Amount (4.5% of the Benefit Base).

We may recalculate the Lifetime Income Amount if you change the form of the Lifetime Income Amount from a Single Life to a Spousal form or vice versa.

We may decrease the Benefit Base to reflect withdrawals. We may increase the Benefit Base to reflect Benefit Enhancements and a one-time Step-Up to the Contract Value on the Contract Anniversary before the date of the first withdrawal after the Lifetime Income Date if the Benefit Base is less than the Contract Value on that date. Any decrease or increase in the Benefit Base will result in a corresponding decrease or increase in the Lifetime Income Amount.

Tax Considerations

See “VII. Federal Tax Matters” for information on tax considerations related to guaranteed minimum withdrawal benefits.

Pre-Authorized Withdrawals – The Income Made Easy Program

You can pre-authorize periodic withdrawals to receive amounts guaranteed under the Contract. We currently offer our Income Made Easy program for Contracts to provide income payments for the lifetime of the Covered Person. The full allowable amount is based on the Lifetime Income Amount. You can start taking withdrawals under the Income Made Easy program no sooner than the earliest available Lifetime Income Date.

The Income Made Easy program allows you to select: (A) the Lifetime Income Amount under your Contract; (B) the full allowable amount plus any amount under our Life Expectancy Distribution program that would exceed the Lifetime Income Amount; (C) the annual amount under our Life Expectancy Distribution program (in lieu of the Lifetime Income Amount); or (D) a specified dollar amount that is less than the Lifetime Income Amount. We may make additional options available in the future or upon request.

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Your participation in the Income Made Easy program will be suspended (i.e., we will not process any further withdrawals under the Program until you re-enroll) if:

• you select option A or B; and

• you take an additional withdrawal outside the Income Made Easy program in any Contract Year in which the program is in effect.

Income Made Easy withdrawals, like other withdrawals:

• may be subject to income tax (including withholding for taxes) and a penalty for distributions from a Roth IRA, and if you take withdrawals before age 59 ¹/₂, a 10% penalty tax; and

• reduce the death proceeds.

If you are interested in the Income Made Easy program, you may obtain a separate authorization form and full information concerning the program and its restrictions from your financial advisor or our Annuities Service Center. There is no charge for participation in this program.

Life Expectancy Distribution Program

You may request of us in writing, in a form acceptable to us and received at our Annuities Service Center, to pay you withdrawals that we determine to be part of a series of substantially equal periodic payments over your “life expectancy” (or, if applicable, the joint life expectancies of you and your Spouse) . Withdrawals under our Life Expectancy Distribution program are distributions within a calendar year that are intended to be paid to you as required or contemplated by Code sections 408(a)(6) or 408(b)(3) (applicable to traditional IRAs), or section 408A(c)(5) (applicable to Roth IRAs) (we sometimes refer to these as “Qualified Death Benefit Stretch Distributions” or “Required Minimum Distributions”). For further information on such distributions, please see “VII. Federal Tax Matters.”

Each withdrawal under our Life Expectancy Distribution program will reduce death proceeds and your Contract Value. We will not reduce your Benefit Base or Lifetime Income Amount if a withdrawal under the Life Expectancy Distribution program on or after the Lifetime Income Date (for an amount we calculate based on our current understanding and interpretation of federal tax law) causes total withdrawals during a Contract Year to exceed the Lifetime Income Amount and all withdrawals during that year were under our Life Expectancy Distribution program. The Life Expectancy Distribution program ends when certain amounts described in the Contract are depleted to zero. We may make further distributions as part of the Settlement Phase for the Contract.

The Life Expectancy Distribution program applicable to GIFL Select IRA Rollover Variable Annuity Contracts does not provide automatic “life expectancy” distributions that are intended to qualify under section 72(t)(2)(A)(iv) of the Code. This Code section contains an exception to a 10% penalty tax applicable to pre-59 ¹/₂ distributions. You should consult with a qualified tax advisor for information about the impact of taxes, including tax penalties that may be applicable to withdrawals before age 59 ¹/₂.

If you are interested in the Life Expectancy Distribution program, you may obtain further information concerning the program and its restrictions from your financial advisor or our Annuities Service Center. There is no charge for participation in this program. To take withdrawals under the Life Expectancy Distribution program, you must participate in the Income Made Easy program (see the preceding section).

Under our Life Expectancy Distribution program, each withdrawal will be in an amount that we determine to be your Contract’s share of all Life Expectancy Distributions, based on information that you provide and our understanding of the Code. We reserve the right to make any changes we deem necessary to comply with the Code and Treasury Department regulations.

We base our Life Expectancy Distributions calculations on our understanding and interpretation of the requirements under tax law applicable to Required Minimum Distributions and Qualified Death Benefit Stretch Distributions. You should discuss these matters with a qualified tax advisor.

If you take a withdrawal under our Life Expectancy Distribution program on or after the Lifetime Income Date, we will not make any further withdrawals under that program if the Contract Value reduces to an amount less than the Lifetime Income Amount. In that event, we will make distributions as part of the Contract’s “Settlement Phase,” if the Annuitant (or co-Annuitant under the Spousal Lifetime Income Amount) is living at that time. We designed our Life Expectancy Distribution program to provide minimum lifetime distributions as described or as required under certain sections of the Code. Withdrawals under our automatic Life Expectancy Distribution program will not be treated as Excess Withdrawals and will not reduce the Benefit Base or Lifetime Income Amount.

Settlement Phase

Once you establish a Lifetime Income Amount, we will automatically begin making payments to you under the “Settlement Phase” of the GIFL Select feature if your Contract Value reduces to an amount less than the Lifetime Income Amount and there are no Excess Withdrawals during that Contract Year. During the Settlement Phase, the Contract will continue but all other rights and benefits under

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the Contract terminate. We will not apply additional Benefit Enhancements, or deduct any charges during the Settlement Phase. You cannot annuitize once the Settlement Phase begins.

There is no Settlement Phase, however, if:

• you take any withdrawal before the earliest available Lifetime Income Date and the Contract Value declines to zero during the Contract Year of the withdrawal; or

• you take a withdrawal on or after the earliest available Lifetime Income Date that is an Excess Withdrawal and the Contract Value declines to an amount less than the Lifetime Income Amount during the Contract Year of the withdrawal.

At the beginning of the Settlement Phase, we may automatically begin paying an annual settlement amount to you. The settlement payment amount varies as follows:

• If the Contract enters the Settlement Phase before the Annuitant has reached his or her Age 59 ¹/₂ Trigger (or Age 65 Trigger for the younger of the Annuitant and co-Annuitant if the Spousal Lifetime Income Amount had been elected), you must wait before taking withdrawals until the Lifetime Income Date, when the Lifetime Income Amount would be calculated. If no withdrawals are made before the Lifetime Income Date, we will begin making annual settlement payments to you following the Lifetime Income Date as long as the Annuitant is living (or as long as either the Annuitant or co-Annuitant is living under the Spousal Lifetime Income Amount). In this case, the annual amount will equal the applicable Lifetime Income Amount, which would be either 4% of the Benefit Base on the Lifetime Income Date (if the Annuitant has reached his or her Age 59 ¹/₂ Trigger before the first withdrawal but has not reached his or her Age 65 Trigger), 5% of the Benefit Base on the Lifetime Income Date (if the Annuitant has reached his or her Age 65 Trigger before the first withdrawal) or 4.5% of the Benefit Base on the Lifetime Income Date (if the younger of the Annuitant and co-Annuitant has reached his or her Age 65 Trigger if the Spousal Lifetime Income Amount had been elected).

• If the Contract enters the Settlement Phase before the Annuitant has reached his or her Age 59 ¹/₂ Trigger (or Age 65 Trigger for the younger of the Annuitant and co-Annuitant if the Spousal Lifetime Income Amount is elected) and you decide to take withdrawals prior to the Lifetime Income Date, you will receive an annual amount equal to the applicable Lifetime Income Amount as stated above multiplied by the current Benefit Base until the Benefit Base is depleted.

• In lieu of annual payments of the settlement amount, we will permit you to elect monthly, quarterly or semi-annual installment payments of the Lifetime Income Amount.

Distribution at Death of Annuitant

The Contracts described in this Prospectus provide for the distribution of the Contract Value and termination of the GIFL Select feature if the Annuitant/Owner dies before the earlier of the Annuity Commencement Date or the Maturity Date. If the deceased Annuitant’s Spouse is the sole Beneficiary, he or she may continue the Contract as the new Owner without a distribution of Contract Value. In that event, the Spouse will become the Owner and Annuitant of the Contract, but the GIFL Select feature will end for any Single Life Lifetime Income Amount (if established) or for any Continuation Single Life Lifetime Income Amount. The GIFL Select feature for a Spousal Lifetime Income Amount also ends unless you established the Spousal Lifetime Income Amount prior to the Annuitant’s death.

In all other cases, distribution of the entire interest in the Contract must be made within five years of the Annuitant’s death or, alternatively, distribution may be made as an annuity, under one of the Annuity Options, which begins within one year after the Annuitant’s death and is payable over the life of the Beneficiary or over a period not extending beyond the life expectancy of the Beneficiary (see “Annuity Options” below). Note: we continue to assess the mortality and expense risks charge during this period, even in some cases in which we bear only the expense risk and not any mortality risk (see “VI. Charges and Deductions – Mortality and Expense Risks Fee”). If distribution is not made within five years and the Beneficiary has not specified an Annuity Option, we will distribute a lump sum cash payment of the Beneficiary’s portion of the death proceeds. Also, if distribution is not made as an annuity, upon the death of the Beneficiary, any remaining death proceeds will equal the Contract Value and must be distributed immediately in a single sum cash payment.

Payment of Death Proceeds. The determination of the distribution upon the death of the Annuitant will be made on the date we receive written notice and “proof of death” as well as all required claims forms in Good Order from all Beneficiaries at our Annuities Service Center. No one is entitled to payment of the death proceeds under the Contract until this time. Proof of death occurs when we receive one of the following at our Annuities Service Center:

• a certified copy of a death certificate; or

• a certified copy of a decree of a court of competent jurisdiction as to the finding of death; or

• any other proof satisfactory to us.

Distribution of Death Proceeds. Tax law requirements applicable to Qualified Plans, including IRAs, and the tax treatment of amounts held and distributed under such plans, are quite complex. Accordingly, you should seek competent legal and tax advice regarding requirements governing the distribution of Contract values, including death proceeds, under the plan.

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In designating Beneficiaries you may impose restrictions on the timing and manner of payment of death proceeds. The description of the distribution upon the death of the Annuitant in this Prospectus does not reflect any of the restrictions that could be imposed, and it should be understood as describing what will happen if the Contract Owner chooses not to restrict such a distribution under the Contract. If the Contract Owner imposes restrictions, those restrictions will govern payment of the death proceeds to the extent permitted by the Code and by Treasury Department regulations.

Upon request, the death proceeds may be taken in the form of a lump sum. In that case, we will pay the death proceeds within seven days of the date that we determine the amount of the death proceeds, subject to postponement under the same circumstances for which payment of withdrawals may be postponed (see “Withdrawals” above). Beneficiaries who opt for a lump sum payout of their portion of the death proceeds may choose to receive the funds either in a single check or wire transfer or in a John Hancock Safe Access Account (“JHSAA”). Similar to a checking account, the JHSAA provides the Beneficiary access to the payout via a checkbook, and the account earns interest at a variable interest rate. Any interest paid may be taxable. The Beneficiary can obtain the remaining death proceeds in a single sum at any time by cashing one check for the entire amount. Note, however, that a JHSAA is not a true checking account, but is solely a means of distributing the death proceeds. The Beneficiary can only make withdrawals, and not deposits. The JHSAA is part of our General Account; it is not a bank account and it is not insured by the FDIC or any other government agency. As part of our General Account, it is subject to the claims of our creditors. We receive a benefit from all amounts left in the JHSAA.

If the Beneficiary does not choose a form of payment, or the death proceeds payable upon the death of an Annuitant are not taken in a lump sum, the Contract will continue, subject to the following:

• The Beneficiary will become the Owner/Annuitant.

• If the deceased Annuitant’s Spouse is the sole Beneficiary (see “Other Contract Provisions – Spouse” below), he or she may continue the Contract as the new Owner/Annuitant without triggering adverse federal tax consequences. In such a case, the distribution rules applicable when an Annuitant dies will apply when the Spouse, as the Annuitant, dies.

• If the Beneficiary is not the deceased Owner’s Spouse , distribution of the entire interest in the Contract must be made within five years of the Annuitant’s death or, alternatively, an individual Beneficiary may take distributions as an annuity under one of the Annuity Options described below, which begins within one year after the Annuitant’s death and is payable over the life of the Beneficiary or over a period not extending beyond the life expectancy of the Beneficiary (see “Annuity Options” below). Note: we continue to assess the mortality and expense risks charge during this period, even though we bear only the expense risk and not any mortality risk (see “VI. Charges and Deductions – Mortality and Expense Risks Fee”). If distribution is not made within five years and the Beneficiary has not specified one of the above forms of payment, we will distribute a lump sum cash payment of the Beneficiary’s portion of the death proceeds. Also, if distribution is not made as an annuity, upon the death of the Beneficiary, any remaining death proceeds must be distributed immediately in a single sum cash payment.

Death of co-Annuitant under a Spousal Lifetime Income Amount guarantee. If the co-Annuitant is the first to die, no death proceeds are payable under the Contract. The Spousal Lifetime Income Amount guarantee will continue in effect and we will base the duration of the Lifetime Income Amount only on the lifetime of the survivor Annuitant. We will continue to charge the GIFL Select fee.

Death of Last Person. If the survivor Annuitant dies while a Spousal Lifetime Income Amount guarantee is in effect, we will reduce the Lifetime Income Amount to zero and we make no further payments to the Beneficiary.

Death after Removal of Annuitant or co-Annuitant. In certain instances, a Contract may be changed to remove the designation of a person initially designated as an Annuitant or co-Annuitant. If that happens and:

• if the removed person subsequently dies, there will be no impact on the guarantees provided by the GIFL Select feature in most cases; and

• if the remaining designated person subsequently dies, we will consider that person to be the “survivor” of the Annuitant and co-Annuitant and the GIFL Select benefit will terminate.

Death Proceeds during the Settlement Phase. If death occurs during the Settlement Phase, the only death proceeds we provide are the remaining settlement payments that may become due under that GIFL Select benefit:

• (for Single Life and Continuation Single Life Lifetime Income Amount Contracts) If the Annuitant dies during the Settlement Phase, we reduce the Lifetime Income Amount to zero and make no further payments.

• (for Spousal Lifetime Income Amount Contracts) If the first death of either the Annuitant or co-Annuitant occurs during the Settlement Phase, no additional death proceeds are payable under the Contract and, in most instances, we will continue to make settlement payments in the same manner as before the death. If the death occurs before the Lifetime Income Date, we will calculate a Lifetime Income Amount during the Settlement Phase on the Lifetime Income Date. Settlement payments will equal the Lifetime Income Amount.

If you die during the Settlement Phase, the only death proceeds we provide are the remaining settlement payments that may become due under the Spousal Lifetime Income Amount guaranteed minimum withdrawal benefit.

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Annuitization Provisions

General

Annuity payments are available under the Contract on a fixed, variable, or combination fixed and variable basis. Once annuity payments commence:

• you will no longer have access to the Contract Value applied to the Annuity Option;

• the GIFL Select feature of your Contract terminates; and

• we may not change the Annuity Option or the form of settlement.

The Contracts contain provisions for the commencement of annuity payments to the Annuitant up to the Contract’s Maturity Date (the “Annuity Commencement Date” is the first day of the Pay-out Period). The current Maturity Date is the date you specify, as shown on your Contract’s specifications page. For John Hancock USA Contracts, there is no limit on when the earliest Annuity Commencement Date may be set. For John Hancock New York Contracts, the earliest allowable Annuity Commencement Date is one year from the Contract Date. If no date is specified, the Annuity Commencement Date is the first day of the month following the later of the 90th birthday of the oldest Annuitant or the tenth Contract Anniversary (“Default Commencement Date”). You may request a different Annuity Commencement Date at any time by written request or by telephone at the number listed on the first page of this Prospectus, at least one month before both the current and new Annuity Commencement Dates. You may also be able to change your Annuity Commencement Date on our website, www.jhannuities.com, if:

• you are registered on the website, and

• your Contract is active, and not owned by a custodian or continued by a surviving Spouse or Beneficiary.

Under our current administrative procedures, the new Annuity Commencement Date may not be later than the Maturity Date unless we consent otherwise. Distributions may be required before the Annuity Commencement Date.

Distributions under the Contracts may be required before the Annuity Commencement Date (see “VII. Federal Tax Matters”). You should consult with a qualified tax advisor for information about potential adverse tax consequences for failure to take distributions.

Notice of Annuity Commencement Date. Under our current administrative procedures, we will send you one or more notices at least 30 days before your scheduled Annuity Commencement Date and request that you verify information we currently have on file. If you do not choose an Annuity Option, do not make a withdrawal of the Surrender Value, or do not ask us to change the Maturity Date, we will provide a variable Annuity Option in the form of a life annuity with payments guaranteed for five years, as described in “Annuity Options” below.

You may select the frequency of annuity payments. However, if the Contract Value at the Annuity Commencement Date is such that a monthly payment would be less than $20, we may pay the Contract Value in one lump sum to the Annuitant on the Annuity Commencement Date.

Annuity Options

If an Annuity Option is not selected, we will provide as a default an Annuity Option in the form of a variable life annuity with payments guaranteed for five years, as described below. We will determine annuity payments based on the value of each Variable Investment Option at the Annuity Commencement Date. Internal Revenue Service (“IRS”) regulations may preclude the availability of certain Annuity Options in connection with certain Contracts.

Annuity Options offered in the Contract. The Contracts guarantee the availability of the following Annuity Options:

Option 1: Lifetime Income Amount with Cash Refund – This fixed Annuity Option is available only if either the Annuitant or co-Annuitant, not both, remains at the Annuity Commencement Date. Under this option, we will make annuity payments during the lifetime of the Annuitant or co-Annuitant. After the death of the Annuitant or co-Annuitant, we will pay the Beneficiary a lump sum amount equal to the excess, if any, of the Contract Value at the election of this option over the sum of the annuity payments made under this option. The annual amount of the annuity payments will equal the greater of:

• the Lifetime Income Amount on the Annuity Commencement Date, if any; or

• the annual amount that the proceeds of your Contract provides on a guaranteed basis under a life with cash refund annuity.

Option 2: Joint & Survivor Lifetime Income Amount with Cash Refund – This fixed Annuity Option is available if you select the Spousal Lifetime Income Amount guarantee and coverage remains for both the Annuitant and the co-Annuitant at the Annuity Commencement Date. Under this option, we will make annuity payments during the joint lifetime of the Annuitant and co-Annuitant. After the death of the last to survive, we will pay the Beneficiary a lump sum amount equal to the excess, if any, of the Contract Value at the election of this option over the sum of the annuity payments made under this option. The annual amount of the annuity payments will equal the greater of:

• the Lifetime Income Amount on the Annuity Commencement Date, if any, as provided by the Spousal Lifetime Income Amount guarantee, or

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• the annual amount that the proceeds of your Contract provides on a guaranteed basis under a joint life with cash refund annuity. (Unlike Option 4, however, we will not continue making payments for the remainder of the 5 year term upon the death of the last of the Annuitant and co-Annuitant to survive. Instead, we will pay a lump sum amount of the excess Contract Value, if any, described in Option 1 above.)

Option 3: Life Annuity with Payments Guaranteed for 5 Years – An annuity with payments guaranteed for 5 years and continuing thereafter during the lifetime of the Annuitant. Because we guarantee payments for 5 years, we will make annuity payments to the end of such period if the Annuitant dies prior to the end of the fifth year.

Option 4: Joint Life Annuity with Payments Guaranteed for 5 Years – An annuity with payments guaranteed for 5 years and continuing thereafter during the lifetime of the Annuitant and a designated co-Annuitant. Because we guarantee payments for the specific number of years, we make annuity payments to the end of the last year of the 5-year period if both the Annuitant and the co-Annuitant die during the 5-year period.

Additional Annuity Options. When you annuitize, we may offer one or more Annuity Options in addition to the ones we are contractually obligated to make available.

Once annuity payments begin under an Annuity Option, you will not be able to make any additional guaranteed withdrawals under a GIFL Select feature in a Contract.

Fixed Annuity Options. Upon death of the Owner/Annuitant (subject to the distribution of death proceeds; see “Distribution at Death of Annuitant” above), withdrawal or the Maturity Date of the Contract, the proceeds may be applied to a Fixed Annuity Option.

We determine the amount of each Fixed Annuity payment by applying the portion of the proceeds (minus any applicable premium taxes) applied to purchase the Fixed Annuity to the appropriate rate based on the mortality table and assumed interest rate in the Contract. If the rates we are then using are more favorable to you, we will substitute those rates. If under our current administrative practices we allow you to choose an Annuity Option that is not guaranteed in the Contract, we will use the current rates based on current interest and mortality for other similar options that we are currently offering. We guarantee the dollar amount of Fixed Annuity payments.

We provide no guaranteed withdrawal benefits once payments begin under an Annuity Option.

Determination of Amount of the First Variable Annuity Payment

We determine the first Variable Annuity payment by applying the portion of the proceeds (minus any applicable premium taxes) applied to purchase a Variable Annuity to the rates based on the mortality table and assumed interest rate contained in the Contract. If the table we are currently using is more favorable to you, we will substitute that table. We will determine the amount of the Contract Value as of the date not more than ten Business Days prior to the Annuity Commencement Date. We will reduce Contract Value used to determine annuity payments by any applicable premium taxes.

The longer the life expectancy of the Annuitant under any life Annuity Option or the longer the period for which payments are guaranteed under the option, the smaller the amount of the first monthly Variable Annuity payment will be.

Annuity Units and the Determination of Subsequent Variable Annuity Payments

We will base Variable Annuity payments after the first one on the investment performance of the Variable Investment Options selected after the Annuity Commencement Date. The amount of a subsequent payment is determined by dividing the amount of the first annuity payment from each Variable Investment Option by the Annuity Unit value of that Variable Investment Option (as of the same date the Contract Value to effect the annuity was determined) to establish the number of Annuity Units which will thereafter be used to determine payments. This number of Annuity Units for each Variable Investment Option is then multiplied by the appropriate Annuity Unit value as of a uniformly applied date not more than ten Business Days before the annuity payment is due, and the resulting amounts for each Variable Investment Option are then totaled to arrive at the amount of the annuity payment to be made. The number of Annuity Units generally remains constant (assuming no transfer is made). We will deduct a pro rata portion of the Contracts administration fee from each annuity payment.

We charge the same Annual Separate Account Expenses during the annuitization period as we do prior to the Annuity Commencement Date. We determine the “net investment factor” for an Annuity Unit in the same manner as we determine the net investment factor for an accumulation unit (see “Value of Accumulation Units” and “Net Investment Factor” earlier in this chapter). The value of an Annuity Unit for each Variable Investment Option for any Business Day is determined by multiplying the Annuity Unit value for the immediately preceding Business Day by the net investment factor for the corresponding Subaccount for the valuation period for which the Annuity Unit value is being calculated and by a factor to neutralize the assumed interest rate.

Generally, if the net investment factor is greater than the assumed interest rate, the payment amount will increase. If the net investment factor is less than the assumed interest rate, the payment amount will decrease.

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We build a 3% assumed interest rate into the rates in the Contract used to determine the first Variable Annuity payment. The smallest annual rate of investment return which is required to be earned on the assets of the Separate Account so that the dollar amount of Variable Annuity payments will not decrease is 3.62%.

Transfers after Annuity Commencement Date

Once Variable Annuity payments have begun, you may transfer all or part of the investment upon which those payments are based from one Variable Investment Option to another. You must submit your transfer request to our Annuities Service Center at least 30 days before the due date of the first annuity payment to which your transfer will apply. We will make transfers after the Annuity Commencement Date by converting the number of Annuity Units being transferred to the number of Annuity Units of the Variable Investment Option 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 Annuity Units for the new Variable Investment Option selected. We reserve the right to limit, upon notice, the maximum number of transfers a Contract Owner may make to four per Contract Year. Once annuity payments have commenced, a Contract Owner may not make transfers from a Fixed Annuity Option to a Variable Annuity Option or from a Variable Annuity Option to a Fixed Annuity Option. In addition, we reserve the right to defer the transfer privilege at any time that we are unable to purchase or redeem shares of a Portfolio. We also reserve the right to modify or terminate the transfer privilege at any time in accordance with applicable law.

Distributions upon Death of Annuitant after Annuity Commencement Date

If you select an Annuity Option providing for payments for a guaranteed period, and the Annuitant dies after the Annuity Commencement Date, we will make any remaining guaranteed payments to the Beneficiary. We will make any remaining payments as rapidly as under the method of distribution being used as of the date of the Annuitant’s death. If no Beneficiary is living, we will commute any unpaid guaranteed payments to a single sum (on the basis of the interest rate used in determining the payments) and pay that single sum to the estate of the last to die of the Annuitant and the Beneficiary.

Other Contract Provisions

Initial Inspection Period

You may cancel the Contract by returning it to our Annuities Service Center or to your financial advisor at any time within 10 days after receiving it or such other period as required by law. Within 7 days of receiving a returned Contract, we will pay you the Contract Value computed at the end of the Business Day on which we receive your returned Contract or written notification acceptable to us. You may be subject to investment losses (or gains) prior to our receipt of your request for cancellation.

The number of days for a right to review may vary in certain states and for certain age groups in order to comply with the requirements of state insurance laws and regulations. Because the Contract is issued as an IRA under section 408 or 408A of the Code, during the first 7 days of the initial inspection period we will return your entire Purchase Payment if this is greater than the amount otherwise payable.

(Applicable to Contracts issued in California Only) Residents in California age 60 and older may cancel the Contract by returning it to our Annuities Service Center or your financial advisor at any time within 30 days after receiving it. We will allocate your Purchase Payment to the Money Market Variable Investment Option during this period and thereafter transfer it to the Variable Investment Options you select. We will permit you to elect to allocate your Purchase Payment during this 30 day period to one or more of the Variable Investment Options. If you cancel the Contract during this 30 day period and your Purchase Payment was allocated to the Money Market Variable Investment Option, we will pay you the greater of (a) the original amount of your Purchase Payment and (b) the Contract Value computed at the end of the Business Day on which we receive your returned Contract. If instead you allocated your Purchase Payment to a Variable Investment Option (other than the Money Market Variable Investment Option), we will pay you the Contract Value, computed at the end of the Business Day on which we receive your returned Contract. Therefore you may be subject to investment losses prior to our receipt of your request for cancellation if you allocate your Purchase Payment to a Variable Investment Option other than the Money Market Variable Investment Option.

Ownership

All rights and privileges under the Contract may be exercised by the Owner. Prior to the Annuity Commencement Date, the Contract Owner is the person designated in the Contract specifications page or as subsequently named. On and after the Annuity Commencement Date, the Annuitant is the Contract Owner. If amounts become payable to any Beneficiary under the Contract, the Beneficiary is the Contract Owner. The Owner cannot be changed, except as permitted due to the death of the Annuitant and under federal tax law.

You may not sell, assign, transfer, discount or pledge as collateral for a loan or as security for the performance of an obligation, or for any other purpose, a Contract to any person other than us. We reserve the right to decline to issue a Contract to any person in our sole discretion.

Annuitant

The Annuitant is the natural person whose life is used to determine eligibility and the duration of Single Life Lifetime Income Amount or a Continuation Single Life Lifetime Income Amount and for the duration of annuity payments involving life contingencies. The

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Annuitant is entitled to receive all annuity payments under the Contract. If the Owner is an individual, the Owner and Annuitant must be the same person. Otherwise, the Contract must be owned for the benefit of the Annuitant. The Annuitant is as designated on the Contract specifications page or in the application. The Annuitant cannot be changed.

Co-Annuitant

The Annuitant’s and co-Annuitant’s lives are used to determine eligibility for and the duration of the Spousal Lifetime Income Amount and to determine eligibility for and the duration of annuity payments involving joint life contingencies. The Annuitant’s Spouse must be named as a co-Annuitant to establish a Spousal Lifetime Income Amount.

Beneficiary

The Beneficiary is the person, persons or entity designated in the Contract specifications page (or as subsequently changed). Under Spousal Lifetime Income Amount Contracts, if there is a Co-Annuitant at the time of the Annuitant’s death we will treat that person as the Beneficiary. You may change the Beneficiary (and any Contingent Beneficiary) subject to the rights of any irrevocable Beneficiary. You must make any change in writing and the change must be received at our Annuities Service Center. We must approve any change. If approved, we will effect such change as of the date on which it was written. We assume no liability for any payments made or actions taken before the change is approved. If no Beneficiary is living, any designated Contingent Beneficiary will be the Beneficiary. The interest of any Beneficiary is subject to that of any assignee. If no Beneficiary or Contingent Beneficiary is living, the Beneficiary is the estate of the deceased Contract Owner.

Spouse

Some states require that civil union and same-sex marriage partners receive the same contractual benefits as Spouses. You should consult with a qualified financial professional for additional information on your state’s regulations regarding civil unions and domestic partnerships.

Modification

We may not modify your Contract or certificate without your consent, except to the extent required to make it conform to any law or regulation or ruling issued by a governmental agency.

Our Approval

We reserve the right to accept or reject any Contract application at our sole discretion.

Misstatement and Proof of Age, Sex or Survival

We normally require proof of age, sex (where permitted by state law) or survival of any person upon whose age, sex or survival any payment depends. If the age or sex of the Annuitant or any co-Annuitant has been misstated, the benefits will be those that would have been provided for the Annuitant’s or any co-Annuitant’s correct age and sex. When you receive your Contract, you should review the information on age and sex and contact us by phone or mail at our Annuities Service Center with any corrections. If we have made incorrect annuity or benefit payments, the amount of any underpayment will be paid immediately and the amount of any overpayment will be deducted from future annuity or benefit payments.

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VI. Charges and Deductions

We assess charges and deductions under the Contracts against the Purchase Payment, Contract Values or annuity payments. Currently, there are no deductions made from the Purchase Payment. In addition, there are deductions from and expenses paid out of the assets of the Portfolios that are described in the Portfolio prospectus.

Asset-Based Charges

We deduct asset-based charges daily to compensate us primarily for our administrative and distribution expenses, and for the mortality and expense risks we assume under the Contracts.

Administration Fee

We allocate a portion of the asset-based charges, as shown in “III. Fee Tables,” to help cover our administrative expenses. We deduct from each of the Subaccounts a daily charge, at an annual effective rate of 0.15% of the value of each corresponding Variable Investment Option to reimburse us for administrative expenses. The charge will be reflected in the Contract Value as a proportionate reduction in the value of each Variable Investment Option. Even though administrative expenses may increase, we guarantee that the administration fee will not increase as a result.

Mortality and Expense Risks Fee

The mortality risk we assume is the risk that Annuitants may live for a longer period of time than we estimate. We assume this mortality risk by virtue of annuity payment rates incorporated into the Contract which cannot be changed. This assures each Annuitant that his or her longevity will not have an adverse effect on the amount of annuity payments. The expense risk we assume is the risk that the administration charges may be insufficient to cover actual expenses.

To compensate us for assuming these risks, we deduct from each of the Subaccounts a daily charge at the annual effective rate of 0.45% of the value of the Variable Investment Options. The rate of the mortality and expense risks charge cannot be increased. The charge is assessed on all active Contracts, including Contracts continued by a Spousal Beneficiary upon the death of the Contract Owner or continued under any Annuity Option payable on a variable basis. If the charge is insufficient to cover the actual cost of the mortality and expense risks assumed, we will bear the loss. Conversely, if the charge proves more than sufficient, the excess will be profit to us and will be available for any proper corporate purpose including, among other things, payment of distribution expenses. In cases where no death proceeds are payable (e.g., for Contracts continued by a non-Spousal Beneficiary upon the death of the Owner), or under the Period Certain Only Annuity Option, if available, if you elect benefits payable on a variable basis, we continue to assess the Contractual mortality and expense risks charge, although we bear only the expense risk and not any mortality risk.

GIFL Select Fee

We currently assess a fee for the GIFL Select feature that is equal to 0.50% of the “Adjusted Benefit Base.” The Adjusted Benefit Base is the Benefit Base that was available on the prior Contract Anniversary. We will deduct the GIFL Select fee on the first Contract Anniversary and each Contract Anniversary thereafter. We reserve the right to increase the fee of up to 0.65% of the Adjusted Benefit Base after we issue a Contract. If we do, we will provide at least 30 day prior notice to the Owner’s last known address.

Although the current fee for the GIFL Select feature is the same for each version of the Lifetime Income Amount, the amount of the Lifetime Income Amount will differ from version to version. For example, the Single Life Lifetime Income Amount that you establish before the Annuitant reaches his or her Age 65 Trigger will be for a lower Lifetime Income Amount than a Spousal Lifetime Income Amount that you establish after the Annuitant and the co-Annuitant both reach the Age 65 Trigger. Please read “Determination of a Single Life, Continuation Single Life or Spousal Lifetime Income Amount” for more information.

We withdraw the GIFL Select fee from each Variable Investment Option in the same proportion that the value of each Variable Investment Option bears to the Contract Value. We will deduct a pro rata share of the annual fee from the Contract Value:

• on the date we determine the amount of death proceeds that we pay to a Beneficiary;

• after the Annuity Commencement Date at the time an Annuity Option under the Contract begins; or

• on the date an Excess Withdrawal (including any applicable fees, charges, and taxes) reduces the Contract Value to an amount less than the Lifetime Income Amount.

We do not deduct the GIFL Select fee during the “Settlement Phase” or after the Annuity Commencement Date once an Annuity Option begins.

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Premium Taxes

We make deductions for any applicable premium or similar taxes. Currently, we assess a charge for premium taxes on your Purchase Payment, based on the following resident state (or jurisdiction) at the time the tax is assessed: California (0.50%); Guam (4.00%); Texas (0.04% - referred to as a “maintenance fee”); and West Virginia (1.00%).

In most cases, and subject to applicable state law, we deduct a charge in the amount of the tax from the total value of the Contract only at the time of annuitization, death, surrender, or withdrawal. We reserve the right, however, to deduct the charge from your Purchase Payment at the time it is made. We compute the amount of the charge by multiplying the applicable premium tax percentage by the amount withdrawn, surrendered, annuitized or applied to/distributed as death proceeds.

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VII. Federal Tax Matters

Introduction

The following discussion of the federal income tax treatment of the Contract is not exhaustive, does not purport to cover all situations, and is not intended as tax advice. The federal income tax treatment of a Contract is quite complex, and you should consult a qualified tax advisor with regard to the application of the law to your circumstances. This discussion is based on the Code, Treasury Department regulations, and Internal Revenue Service (“IRS”) rulings and interpretations existing on the date of this Prospectus. These authorities, however, are subject to change by Congress, the Treasury Department and judicial decisions.

This discussion does not address state or local tax consequences associated with a Contract. The discussion also does not address the potential tax and withholding rules that might apply to a Contract held by, or distribution paid to, any foreign person, including any foreign financial institution, other entity or individual. Please consult with your tax advisor if there is a possibility that a Contract might be held by, or payable to, a foreign person. In addition, we make no guarantee regarding any tax treatment – federal, state, or local – of any Contract or of any transaction involving a Contract.

Our Tax Status

We are taxed as a life insurance company. Under current tax law rules, we include the investment income (exclusive of capital gains) of a Separate Account in our taxable income and take deductions for investment income credited to our “policyholder reserves.” We are also required to capitalize and amortize certain costs instead of deducting those costs when they are incurred. We do not currently charge a Separate Account for any resulting income tax costs. We also claim certain tax credits or deductions relating to foreign taxes paid and dividends received by the Portfolios. These benefits can be material. We do not pass these benefits through to a Separate Account, principally because: (i) the deductions and credits are allowed to the Company and not the Contract Owners under applicable tax law; and (ii) the deductions and credits do not represent investment return on Separate Account assets that is passed through to Contract Owners.

The Contracts permit us to deduct a charge for any taxes we incur that are attributable to the operation or existence of the Contracts or a Separate Account. Currently, we do not anticipate making a charge for such taxes. If the level of the current taxes increases, however, or is expected to increase in the future, we reserve the right to make a charge in the future. (Please note that this discussion applies to federal income tax but not to any state or local taxes.)

General Information Regarding Purchase Payments

You must make a single Purchase Payment for a Contract through a direct rollover distribution from a tax-qualified retirement plan funded by a John Hancock USA or John Hancock New York group annuity contract with a GIFL Select lifetime income benefit feature (a “GIFL Select Retirement Plan”), or through a direct transfer from an existing GIFL Select Contract that we issued as a traditional IRA. The Contract does not permit you to make annual contributions that may otherwise be allowed under the Code.

We do not accept payments for the Contracts that are made through indirect rollover distributions from a GIFL Select Retirement Plan. We also do not accept rollover distributions, whether direct or indirect, from any other Qualified Plans as Purchase Payments for the Contracts.

We use the term “direct rollover distributions” to refer to amounts that a Qualified Plan remits directly to us for the purchase of a traditional IRA or Roth IRA Contract. We use the term “indirect rollover distributions” to refer to amounts that you may receive from a Qualified Plan, and then remit to us. The Contracts are not available for purchase through indirect rollover distributions, even though the Code permits an indirect rollover distribution from a Qualified Plan to be tax-deferred if it is contributed to an IRA within 60 days of receipt.

Designation of Contract as a Traditional IRA or Roth IRA. You must instruct us to issue a Contract either as a traditional IRA or as a Roth IRA when you initiate a direct rollover distribution as a participant in a GIFL Select Retirement Plan. If you are the surviving Spouse and “designated beneficiary” (as defined in the tax law) of a participant in a GIFL Select Retirement Plan, you may make a direct rollover distribution to purchase a Contract and must instruct us to issue it either as a traditional IRA or as a Roth IRA. The Contract is not available for use as an “inherited IRA” by a non-Spouse beneficiary of a deceased participant under a tax-qualified retirement account.

A direct rollover to a Roth IRA is taxable, but it is not subject to mandatory federal tax withholding. Please read “Conversion or Rollover to Roth IRA,” below, for more information.

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Traditional IRAs

Section 408 of the Code permits eligible individuals to contribute to an individual retirement program known as an Individual Retirement Annuity (“IRA”) or traditional IRA (to distinguish it from the Roth IRA discussed below). Contracts issued as traditional IRAs are subject to limits on the amounts that may be contributed, the persons who may be eligible and the time when distributions may commence. Under the tax rules, the Owner and the Annuitant may not be different individuals. If a co-Annuitant is named, all distributions made while the Annuitant is alive must be made to the Annuitant. The Contract does not qualify for use in connection with an Education IRA under section 530 of the Code.

Contributions to a Traditional IRA

Eligible rollover distributions from certain types of qualified retirement plans, such as a GIFL Select Retirement Plan, may be rolled over on a tax-deferred basis into a traditional IRA by former participants in the Plan. For these purposes, eligible rollover distributions include lump sum amounts payable from the Plan upon termination of employment, termination of the Plan, disability or retirement. Eligible rollover distributions do not include (i) required minimum distributions as described in section 401(a)(9) of the Code, (ii) certain distributions for life, life expectancy, or for 10 years or more which are part of a “series of substantially equal periodic payments,” and (iii) if applicable, certain hardship withdrawals.

Distributions from a Traditional IRA

In general, unless you have rolled over non-deductible contributions from your account value in a GIFL Select Retirement Plan, all amounts paid out from a traditional IRA Contract (in the form of an annuity, a single sum, death proceeds or partial withdrawal) are taxable to the payee as ordinary income. You may incur an additional 10% penalty tax if you surrender the Contract or make a withdrawal before you reach 59 ¹/₂, unless certain exceptions apply as specified in section 72(t) of the Code. If any part of your direct rollover from a GIFL Select Retirement Plan includes after-tax contributions to the Plan, part of any withdrawal or surrender distribution, single sum, death proceeds or annuity payment from the Contract may be excluded from taxable income when received.

You may make tax-deferred direct transfers from a Contract held as a Traditional IRA to another Traditional IRA. If instead you take a withdrawal with the intent to roll the proceeds to another IRA as an indirect rollover, you should be aware of certain limitations under the tax law. You must complete any indirect rollover within 60 days of receiving the withdrawal. Moreover, during any 12-month period, you can make only one indirect rollover, with respect to all IRAs you own including Roth IRAs. Any additional indirect rollover attempted during the 12-month period will be treated as a distribution, subject to income tax and potentially the 10% penalty tax.

A Beneficiary who is not your Spouse may make a direct transfer to an inherited IRA of the amount otherwise distributable to him or her under a Contract issued as a traditional IRA.

Required Minimum Distributions from a Traditional IRA

Treasury Department regulations prescribe required minimum distribution (“RMD”) rules governing the time at which distributions from a traditional IRA to the Owner and Beneficiary must commence and the form in which the distributions must be paid. These special rules may also require the length of any guarantee period to be limited. They also affect the restrictions that the Owner may impose on the timing and manner of payment of death benefits to a Beneficiary or the period of time over which a Beneficiary may extend payment of the death benefits under the Contract. In addition, the presence of the death benefit or the lifetime income benefit feature may affect the amount of the RMD that must be made under the Contract. Failure to comply with RMD requirements will result in the imposition of an excise tax, generally 50% of the amount by which the amount required to be distributed exceeds the actual distribution. In the case of IRAs (other than Roth IRAs), distributions of minimum amounts (as specified in the tax law) to the Owner must generally commence by April 1 of the calendar year following the calendar year in which the Owner turns age 70 ¹/₂. The amount that must be distributed each year is computed on the basis of the Owner’s age, the value of the Contract (taking into account both the account balance and the actuarial present value of other benefits provided under the Contract), and the value of all other traditional IRAs owned by the taxpayer.

Distributions made from traditional IRAs (and Roth IRAs) after the Owner’s death must also comply with RMD requirements. Different rules governing the timing and the manner of payments apply, depending on whether the designated beneficiary is an individual and, if so, the Owner’s Spouse, or an individual other than the Owner’s Spouse. If you wish to impose restrictions on the timing and manner of payment of death benefits to your designated beneficiary or if your Beneficiary wishes to extend over a period of time the payment of the death benefits under your Contract, please consult your own qualified tax advisor.

If you make a direct transfer of all the value from a Contract issued as a traditional IRA to any other traditional IRA, the minimum distribution requirements (and taxes on the distributions) apply to amounts withdrawn from the other traditional IRA.

Penalty Tax on Premature Distributions from a Traditional IRA

A 10% penalty tax may be imposed on the taxable amount of any payment from a traditional IRA, The penalty tax does not apply to a payment:

• received on or after the date on which the Contract Owner reaches age 59 ¹/₂;

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• received on or after the Owner’s death or because of the Owner’s disability (as defined in the tax law); or

• made as a series of substantially equal periodic payments (not less frequently than annually) for the life (or life expectancy) of the Owner or for the joint lives (or joint life expectancies) of the Owner and designated beneficiary.

You may be subject to a retroactive application of the penalty tax, plus interest, if you begin taking a series of substantially equal periodic payments and then modify the payment pattern (other than by reason of death or disability) before the later of your turning age 59 ¹/₂ and the passage of five years after the date of the first payment.

In addition, the penalty tax does not apply to certain distributions from IRAs that are used for first time home purchases or for higher education expenses, or to distributions made to certain eligible individuals called to active duty after September 11, 2001. Special conditions must be met to qualify for these three exceptions to the penalty tax. If you wish to take a distribution from a traditional IRA for these purposes, you should consult your own qualified tax advisor.

If you roll over a Contract issued as a traditional IRA to a Roth IRA by surrendering the Contract and purchasing a Roth IRA, you may be subject to federal income taxes, including withholding taxes. Please read “Conversion or Rollover to a Roth IRA,” below, for more information.

Roth IRAs

Section 408A of the Code permits eligible individuals to contribute to a type of IRA known as a Roth IRA. Roth IRAs are generally subject to the same rules as traditional IRAs, but they differ in certain significant ways with respect to the taxation of contributions and distributions.

Contributions to a Roth IRA

Unlike a traditional IRA, contributions to a Roth IRA are not deductible. As with a traditional IRA, eligible rollover distributions from certain types of qualified retirement plans, such as a GIFL Select Retirement Plan, may be directly rolled over into a Roth IRA by former participants in the Plan. For these purposes, eligible rollover distributions include lump sum amounts payable from the Plan upon termination of employment, termination of the Plan, disability or retirement. Eligible rollover distributions do not include (i) required minimum distributions as described in section 401(a)(9) of the Code, (ii) certain distributions for life, life expectancy, or for 10 years or more which are part of a “series of substantially equal periodic payments,” and (iii) if applicable, certain hardship withdrawals.

Federal income tax will apply to direct rollovers from “non-Roth” accounts in GIFL Select Retirement Plans to Contracts issued as Roth IRAs. Please read “Conversion or Rollover to a Roth IRA,” below, for more information. Under current rules, direct rollovers from “Roth” accounts in a GIFL Select Retirement Plan to Contracts issued as Roth IRAs generally are not subject to federal income tax.

Distributions from a Roth IRA

Unlike a traditional IRA, distributions from Roth IRAs need not commence after the Owner turns age 70 ¹/₂. Distributions must, however, begin after the Owner’s death. Distributions after the Owner’s death must comply with the minimum distribution requirements described above for traditional IRAs. Different rules governing the timing and the manner of payments apply, depending on whether the designated beneficiary is an individual, and, if so, the Owner’s Spouse, or an individual other than the Owner’s Spouse.

If you wish to impose restrictions on the timing and the manner of payment of death proceeds to your designated beneficiary or if your Beneficiary wishes to extend payment of the Contract death proceeds over a period of time, please consult your own qualified tax advisor.

Qualified distributions from a Roth IRA are excluded from income. A qualified distribution for these purposes is a distribution that satisfies two requirements. First, the distribution must be made in a taxable year that is at least five years after the first taxable year for which a contribution to any Roth IRA established for the Owner was made. Second, the distribution must be:

• made after the Owner turns age 59 ¹/₂;

• made after the Owner’s death;

• attributable to the Owner being disabled; or

• a qualified first-time homebuyer distribution within the meaning of section 72(t)(2)(F) of the Code.

The five year period required to qualify a distribution as tax-free under a Roth IRA may differ from the five year holding period required under the GIFL Select feature in the Contract. This is because the five year qualification period for tax purposes begins only with a contribution to a Roth IRA. Contributions to a Roth account in some other form of Qualified Plan, such as a Roth account in a GIFL Select Retirement Plan, do not count toward satisfying the five year requirement for qualified distributions from a Roth IRA.

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EXAMPLE: Suppose you made on-going contributions to a “Roth” account in a GIFL Select Retirement Plan for three years and then make a rollover purchase of a Roth IRA Contract when you are 57. We will require you to fulfill another two years before you qualify for a Single Life Lifetime Income Amount. If you limit your annual withdrawals to the Lifetime Income Amount, we will guarantee the amount for as long as you live. During the 5-year qualification period for the Roth IRA, you will be subject to tax, however, on the withdrawals which exceed the portion of your rollover contribution that consisted of your non-deductible contributions to the Roth account in the GIFL Select Retirement Plan.

A direct transfer from a Contract issued as a Roth IRA to another Roth IRA is not subject to income tax. However, during any 12-month period, you can make only one indirect rollover with respect to all IRAs you own, including Roth IRAs.

Penalty Tax on Premature Distributions from a Roth IRA

Taxable distributions before age 59 ¹/₂ may also be subject to a 10% penalty tax. This early distribution penalty may also apply to amounts converted to a Roth IRA that are subsequently distributed within a 5-taxable year period beginning in the year of conversion. Please read “Penalty Tax on Premature Distributions from a Traditional IRA,” above, for more information.

The state tax treatment of a Roth IRA may differ from the federal income tax treatment of a Roth IRA. You should seek independent tax advice if you intend to use the Contract in connection with a Roth IRA.

Conversion or Rollover to a Roth IRA

You can convert a traditional IRA to a Roth IRA. You also can initiate a direct rollover distribution from a non-Roth GIFL Select Retirement Plan to a Roth IRA Contract. The Roth IRA annual contribution limit does not apply to conversion or rollover amounts.

You must pay tax on any portion of a conversion or rollover amount that would have been taxed if you had not converted or rolled over to a Roth IRA. If you convert a Contract issued as a traditional IRA to a Roth IRA, the amount deemed to be the conversion amount for tax purposes may be higher than the Contract Value because of the deemed value of guarantees. If you convert a Contract issued as a traditional IRA to a Roth IRA, you may instruct us not to withhold any of the conversion amount for taxes and remittance to the IRS. If you do instruct us to withhold for taxes when converting a Contract issued as a traditional IRA to a Roth IRA, we will treat any amount we withhold as a withdrawal from your Contract, which could result in an Excess Withdrawal and a reduction in the Lifetime Income Amount we guarantee under your Contract. Please read “Guaranteed Lifetime Income Withdrawal Benefit” in “V. Description of the Contract” for more information about the impact of withdrawals.

If you direct the sponsor or administrator of your GIFL Select Retirement Plan to transfer a rollover amount from your non-Roth GIFL Select Retirement Plan to us to purchase a Roth IRA Contract, there is no mandatory tax withholding that applies to the rollover amount. A direct rollover to a Roth IRA is not subject to mandatory tax withholding, even though the distribution is includible in gross income.

Current tax law no longer imposes a restriction based on adjusted gross income on a taxpayer’s ability to convert a traditional IRA or other qualified retirement accounts to a Roth IRA. Accordingly, taxpayers with more than $100,000 of adjusted gross income may now convert such assets to a Roth IRA. Generally, the amount converted to a Roth IRA is included in ordinary income for the year in which the account was converted. Given the taxation of Roth IRA conversions and the potential for an early distribution penalty tax, you should consider the resources that you have available, other than your retirement plan assets, for paying any taxes that would become due the year of any such conversion or a subsequent year. You should seek independent qualified tax advice if you intend to use the Contract in connection with a Roth IRA.

You are not subject to federal income tax on a direct rollover of distributions from a Roth account in a GIFL Select Retirement Plan to a Contract issued as a Roth IRA or from a Contract issued as a Roth IRA to another Roth IRA.

Puerto Rico Contracts Issued to Fund Retirement Plans

The tax laws of Puerto Rico vary significantly from the provisions of the Internal Revenue Code of the United States that are applicable to various Qualified Plans. If you purchase a Contract intended for use in connection with a Puerto Rican “tax qualified” retirement plan, please note that the text of this Prospectus addresses U.S. federal tax law only and is inapplicable to the tax laws of Puerto Rico.

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See Your Own Tax Advisor

The foregoing description of federal income tax topics and issues is only a brief summary and is not intended as tax advice. It does not include a discussion of federal estate and gift tax or state tax consequences. The rules under the Code governing Qualified Plans are extremely complex and often difficult to understand. Changes to the tax laws may be enforced retroactively. Anything less than full compliance with the applicable rules, all of which are subject to change from time to time, can have adverse tax consequences. The taxation of an Annuitant or other payee has become so complex and confusing that great care must be taken to avoid pitfalls. For further information you should always consult a qualified tax advisor.

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VIII. General Matters

Distribution of Contracts

John Hancock Distributors, LLC (“JH Distributors”), a Delaware limited liability company that we control, is the principal underwriter and distributor of the Contracts offered by this Prospectus and of other annuity and life insurance products we and our affiliates offer. JH Distributors also acts as the principal underwriter of the John Hancock Variable Insurance Trust, whose securities are used to fund certain Variable Investment Options under the Contracts and under other annuity and life insurance products we offer.

JH Distributors’ principal address is 200 Bloor Street East, Toronto, Canada M4W 1E5. It also maintains offices with us at 601 Congress Street, Boston, Massachusetts 02210. JH Distributors is a broker-dealer registered under the Securities Exchange Act of 1934, as amended (the “1934 Act”) and is a member of the Financial Industry Regulatory Authority (“FINRA”).

We offer the Contracts for sale through broker-dealers that have entered into selling agreements with JH Distributors and us. Broker-dealers sell the Contracts through their registered representatives who have been appointed by us to act as our insurance agents. JH Distributors, or any of its affiliates that is registered under the 1934 Act and a member of FINRA, may also offer the Contracts directly to potential purchasers. Signator Investors, Inc. is an affiliated broker-dealer.

JH Distributors may continue to pay compensation to broker-dealers for the promotion, sale and servicing of the Contracts. Contract Owners do not pay this compensation directly. These payments are made from JH Distributors’ and our own revenues, profits or retained earnings, which may be derived from a number of sources, such as fees received from an underlying Portfolio’s distribution plan (“12b-1 fees”), the fees and charges imposed under the Contract, and other sources, including distribution plans of the underlying funds of a Portfolio that is a fund of funds.

The individual representative who sells you a Contract may receive a portion of the compensation that we pay for servicing an existing Contract under the representative’s own arrangement with his or her broker-dealer. We may also continue to pay commissions or overrides to a limited number of affiliated and/or non-affiliated broker dealers that provide marketing support and training services to the broker-dealers that sell and service the Contracts.

Standard Compensation

The amount and timing of compensation JH Distributors pays broker-dealers may vary depending on the selling agreement, but compensation with respect to Contracts sold through broker-dealers (inclusive of wholesaler overrides and expense allowances) and paid to broker-dealers is not expected to exceed, at an annual rate, 0.50% of the values of the Contracts attributable to Purchase Payments.

The individual representative who sells you a Contract (your “financial advisor”) typically will receive a portion of the compensation, under the representative’s own arrangement with his or her broker-dealer. We may also provide compensation to broker-dealers for providing ongoing service in relation to Contract(s) that have already been purchased.

We may provide, either from the 12b-1 fees received from the Portfolios underlying the Contracts or out of our own resources, rollover compensation to the broker-dealer of record for a Qualified Plan funded by certain group annuity contracts issued by John Hancock insurance companies, when a plan participant terminates from the Qualified Plan and rolls over plan assets into a Contract and JH Distributors is the broker-dealer of record on that Contract. Such rollover compensation is not expected to exceed 0.50% of the average daily net asset value of such Contracts.

We may pay the Qualified Plan’s third party administrator a $25 fee per participant rollover from such plan to the Contract for facilitating the transaction.

Differential Compensation

Compensation negotiated and paid by JH Distributors pursuant to a selling agreement with a broker-dealer may differ from compensation levels that the broker-dealer receives for selling or servicing other variable contracts. In addition, under their own arrangements, broker-dealers may pay a portion of any amounts received from us to their registered representatives. As a result, registered representatives may be motivated to recommend the contracts of one issuer over another issuer or one product over another product.

You should contact the financial advisor through whom you purchased a Contract for more information on compensation arrangements in connection with the sale and purchase of your Contract.

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Transaction Confirmations

We will send you confirmation statements for certain transactions in your Variable Investment Options. You should carefully review these transaction confirmations to verify their accuracy. You should report any mistakes immediately to our Annuities Service Center. If you fail to notify our Annuities Service Center of any mistake within 60 days of the delivery of the transaction confirmation, we will deem you to have ratified the transaction. We encourage you to register for electronic delivery of your transaction confirmations. Please contact the John Hancock Annuities Service Center at the applicable telephone number or Internet address shown on the first page of this Prospectus for more information on electronic transactions.

Reinsurance Arrangements

From time to time we may utilize reinsurance as part of our risk management program. Under any reinsurance agreement, we remain liable for the contractual obligations of the Contracts’ guaranteed benefits and the reinsurer(s) agree to reimburse us for certain amounts and obligations in connection with the risks covered in the reinsurance agreements. A reinsurer’s contractual liability runs solely to us, and no Contract Owner shall have any right of action against any reinsurer. In evaluating reinsurers, we consider the financial and claims paying ability ratings of the reinsurer. Our philosophy is to minimize incidental credit risk. We do so by engaging in secure types of reinsurance transactions with high quality reinsurers and diversifying reinsurance counterparties to limit concentrations. Some of the benefits that may be reinsured include living benefits, guaranteed death benefits, or other obligations.

Statements of Additional Information

Our Statements of Additional Information provide additional information about the Contract and the Separate Accounts, including information on our history, services provided to the Separate Accounts and legal and regulatory matters. We filed the Statements of Additional Information with the SEC on the same date as this Prospectus and incorporate them herein by reference. You may obtain a copy of the current Statements of Additional Information without charge by contacting us at the Annuities Service Center shown on the first page of this Prospectus. The SEC also maintains a website (http://www.sec.gov) that contains the Statements of Additional Information and other information about us, the Contracts and the Separate Accounts. We list the Table of Contents of the Statements of Additional Information below.

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statement of Additional Information

Table of Contents

General Information and History

Accumulation Unit Value Tables

Services

Independent Registered Public Accounting Firm

Servicing Agent

Principal Underwriter

Compensation

Legal and Regulatory Matters

Appendix A: Audited Financial Statements

John Hancock Life Insurance Company of New York Separate Account A

Statement of Additional Information

Table of Contents

General Information and History

Accumulation Unit Value Tables

Services

Independent Registered Public Accounting Firm

Servicing Agent

Principal Underwriter

Compensation

Legal and Regulatory Matters

Appendix A: Audited Financial Statements

Financial Statements

The Statements of Additional Information also contain the Company’s financial statements for the years ended December 31, 2014 and 2013, and its Separate Account financial statements for the year ended December 31, 2014 (the “Financial Statements”). Our Financial Statements provide information on our financial strength as of December 31, 2014, including information on our General Account assets that were available at that time to support our guarantees under the Contracts. The Company’s General Account consists of securities and other investments, the value of which may decline during periods of adverse market conditions.

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Appendix U: Tables of Accumulation Unit Values

The following table provides information about Variable Investment Options available under the Contracts described in this Prospectus.

We use accumulation units to measure the value of your investment in a particular Variable Investment Option. Each accumulation unit reflects the value of underlying shares of a particular Portfolio (including dividends and distributions made by that Portfolio), as well as the charges we deduct on a daily basis for Separate Account Annual Expenses (see “III. Fee Tables” for additional information on these charges).

U-1

GIFL Select

John Hancock Life Insurance Company (U.S.A.) Separate Account H

John Hancock Life Insurance Company of New York Separate Account A

Accumulation Unit Values

GIFL Select IRA Rollover Variable Annuity

	Year Ended 12/31/14		Year Ended 12/31/13		Year Ended 12/31/12		Year Ended 12/31/11		Year Ended 12/31/10		Year Ended 12/31/09		Year Ended 12/31/08		Year Ended 12/31/07		Year Ended 12/31/06		Year Ended 12/31/05
Core Diversified Growth & Income Trust (merged into Lifestyle Growth Trust eff 10-28-11) - Series II Shares (units first credited 08-03-2010)
GIFL Contracts with no Optional Benefits
Value at Start of Year		—		—		—		12.500		12.500		—		—		—		—		—
Value at End of Year		—		—		—		—		12.500		—		—		—		—		—
No. of Units		—		—		—		—		—		—		—		—		—		—
Core Fundamental Holdings Trust (merged into Core Strategy Trust eff 12-06-2013) - Series II Shares (units first credited 08-03-2010)
GIFL Contracts with no Optional Benefits
Value at Start of Year		—		12.500		12.500		12.500		12.500		—		—		—		—		—
Value at End of Year		—		—		12.500		12.500		12.500		—		—		—		—		—
No. of Units		—		—		—		—		—		—		—		—		—		—
Core Global Diversification Trust (merged into Core Strategy Trust eff 12-06-2013) - Series II Shares (units first credited 08-03-2010)
GIFL Contracts with no Optional Benefits
Value at Start of Year		—		12.500		12.500		12.500		12.500		—		—		—		—		—
Value at End of Year		—		—		12.500		12.500		12.500		—		—		—		—		—
No. of Units		—		—		—		—		—		—		—		—		—		—
Core Strategy Trust - Series II Shares (units first credited 04-29-2013)
GIFL Contracts with no Optional Benefits
Value at Start of Year		13.684		12.500		—		—		—		—		—		—		—		—
Value at End of Year		14.406		13.684		—		—		—		—		—		—		—		—
No. of Units		17,325		15,292		—		—		—		—		—		—		—		—
Lifestyle Balanced MVP (formerly Lifestyle Balanced Trust) - Series II Shares (units first credited 08-03-2010)
GIFL Contracts with no Optional Benefits
Value at Start of Year		24.445		21.931		19.722		12.500		12.500		—		—		—		—		—
Value at End of Year		25.277		24.445		21.931		19.722		12.500		—		—		—		—		—
No. of Units		132,986		156,088		2,085		19		—		—		—		—		—		—
Lifestyle Balanced PS Series - Series II Shares (units first credited 12-06-2013)
GIFL Contracts with no Optional Benefits
Value at Start of Year		12.500		—		—		—		—		—		—		—		—		—
Value at End of Year		13.292		12.646		—		—		—		—		—		—		—		—
No. of Units		31,592		—		—		—		—		—		—		—		—		—
Lifestyle Conservative MVP (formerly Lifestyle Conservative Trust) - Series II Shares (units first credited 08-03-2010)
GIFL Contracts with no Optional Benefits
Value at Start of Year		21.931		21.355		12.500		12.500		12.500		—		—		—		—		—
Value at End of Year		22.854		21.931		21.355		12.500		12.500		—		—		—		—		—
No. of Units		11,950		29,460		45,107		—		—		—		—		—		—		—
Lifestyle Growth MVP (formerly Lifestyle Growth Trust) - Series II Shares (units first credited 08-03-2010)
GIFL Contracts with no Optional Benefits
Value at Start of Year		25.123		21.301		12.500		12.500		12.500		—		—		—		—		—
Value at End of Year		25.482		25.123		21.301		12.500		12.500		—		—		—		—		—
No. of Units		35,155		22,598		4,000		—		—		—		—		—		—		—
Lifestyle Growth PS Series - Series II Shares (units first credited 12-06-2013)
GIFL Contracts with no Optional Benefits
Value at Start of Year		12.500		—		—		—		—		—		—		—		—		—
Value at End of Year		13.392		12.724		—		—		—		—		—		—		—		—
No. of Units		95,099		—		—		—		—		—		—		—		—		—
Lifestyle Moderate MVP (formerly Lifestyle Moderate Trust) - Series II Shares (units first credited 08-03-2010)
GIFL Contracts with no Optional Benefits
Value at Start of Year		23.500		21.497		12.500		12.500		12.500		—		—		—		—		—
Value at End of Year		24.453		23.500		21.497		12.500		12.500		—		—		—		—		—
No. of Units		80,924		67,733		22,274		—		—		—		—		—		—		—

U-2

GIFL Select

	Year Ended 12/31/14		Year Ended 12/31/13		Year Ended 12/31/12		Year Ended 12/31/11		Year Ended 12/31/10		Year Ended 12/31/09		Year Ended 12/31/08		Year Ended 12/31/07		Year Ended 12/31/06		Year Ended 12/31/05
Lifestyle Moderate PS Series - Series II Shares (units first credited 12-06-2013)
GIFL Contracts with no Optional Benefits
Value at Start of Year		12.500		—		—		—		—		—		—		—		—		—
Value at End of Year		12.500		12.500		—		—		—		—		—		—		—		—
No. of Units		—		—		—		—		—		—		—		—		—		—
Money Market Trust - Series II Shares (available to Contracts issued in California during the 30 day free look period only) (units first credited 08-03-2010)
GIFL Contracts with no Optional Benefits
Value at Start of Year		12.500		12.500		12.500		12.500		12.500		—		—		—		—		—
Value at End of Year		12.500		12.500		12.500		12.500		12.500		—		—		—		—		—
No. of Units		—		—		—		—		—		—		—		—		—		—
Ultra Short Term Bond Trust - Series II Shares (units first credited 08-03-2010)
GIFL Contracts with no Optional Benefits
Value at Start of Year		12.500		12.500		12.500		12.500		12.500		—		—		—		—		—
Value at End of Year		12.209		12.500		12.500		12.500		12.500		—		—		—		—		—
No. of Units		75,404		—		—		—		—		—		—		—		—		—

U-3

To obtain a GIFL Select Variable Annuity

Account Statement of Additional Information (“SAI”)

Send this request to:

For Contracts issued in a state/jurisdiction other than the State of New York:

GIFL Select SAI

John Hancock Annuities Service Center

P.O. Box 55444

Boston, MA 02205-5444

For Contracts issued in the State of New York:

GIFL Select NY SAI

John Hancock Annuities Service Center

P.O. Box 55445

Boston, MA 02205-5445

cut along dotted line                 

Please send me a GIFL Select Variable Annuity Statement of Additional Information dated April 27, 2015, for

¨ Contracts issued in a state/jurisdiction other than the State of New York (Separate Account H).

¨ Contracts issued in the State of New York (Separate Account A).

Please check one box. If no box is checked, we will mail the Statement of Additional Information applicable to Contracts with the address of record written below. If no Contracts are listed with the address of record written below, we may be unable to fulfill the request.

Name
Address
City	State	Zip

PART B

INFORMATION REQUIRED IN A

STATEMENT OF ADDITIONAL INFORMATION

Statement of Additional Information

Dated April 27, 2015

Statement of Additional Information

John Hancock Life Insurance Company (U.S.A.) Separate Account H

This Statement of Additional Information is not a Prospectus. This Statement of Additional Information should be read in conjunction with the Prospectus dated the same date as this Statement of Additional Information. This Statement of Additional Information describes additional information regarding the variable portion of the flexible purchase payment deferred variable annuity contracts (singly, a “Contract” and collectively, the “Contracts”) issued by JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) in all jurisdictions except New York as follows:

Prospectus Issued by John Hancock Life Insurance Company (U.S.A.)

(to be read with this Statement of Additional Information)

GIFL Rollover Variable Annuity

GIFL Select IRA Rollover Variable Annuity

You may obtain a copy of the Prospectus listed above by contacting us at the following addresses:

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)
John Hancock Annuities Service Center
For Applications Only:
Overnight Mail Address	Mailing Address
380 Stuart Street, 5th Floor Boston, MA 02116	Post Office Box 111 Boston, MA 02117-0111
For All Other Transactions:
Overnight Mail Address	Mailing Address
30 Dan Road – Suite 55444	Post Office Box 55444
Canton, MA 02021-2809 (800) 344-1029	Boston, MA 02205-5445
Website Address For Applications Only:
For GIFL Rollover Variable Annuity	www.jhrollover.com/gifl
For GIFL Select IRA Rollover Variable Annuity	www.jhrollover.com/select
Website Address For All Other Transactions:	www.jhannuities.com

GIFL Series JHUSA SEP ACCT H SAI 04/15

Table of Contents

GENERAL INFORMATION AND HISTORY	1
ACCUMULATION UNIT VALUE TABLES	1
SERVICES	1
Independent Registered Public Accounting Firm	1
Servicing Agent	1
Principal Underwriter	1
Compensation	1
LEGAL AND REGULATORY MATTERS	2
APPENDIX A: AUDITED FINANCIAL STATEMENTS	A-1

ii

General Information and History

John Hancock Life Insurance Company (U.S.A.) Separate Account H, (the “Separate Account”) (formerly, The Manufacturers Life Insurance Company (U.S.A.) Separate Account H) is a separate investment account of John Hancock Life Insurance Company (U.S.A.), (“we,” “us,” “the Company,” or “John Hancock USA”) (formerly, The Manufacturers Life Insurance Company (U.S.A.)). We are a stock life insurance company organized under the laws of Maine on August 20, 1955, by a special act of the Maine legislature. John Hancock USA redomesticated under the laws of Michigan on December 30, 1992. Our Michigan office is located at 201 Townsend Street, Suite 900, Lansing, Michigan 48933. Our principal office is located at 601 Congress Street, Boston, Massachusetts 02210-2805. John Hancock USA also has an Annuities Service Center – its mailing address is P.O. Box 55444, Boston, MA 02205-5444; its overnight mail address is 30 Dan Road – Suite 55444, Canton, MA 02021-2809; and its email address is www.jhannuities.com. Our ultimate parent is Manulife Financial Corporation (“MFC”) based in Toronto, Canada. MFC is the holding company of The Manufacturers Life Insurance Company and its subsidiaries, collectively known as Manulife Financial.

The Separate Account was established on August 24, 1984 as a separate account of The Manufacturers Life Insurance Company of North America (“Manulife North America”), another wholly-owned subsidiary of MFC which on January 1, 2002 merged into the Company. As a result of this merger, the Company became the owner of all of Manulife North America’s assets, including the assets of the Separate Account and assumed all of Manulife North America’s obligations including those under the Contracts. The merger had no other effect on the terms and conditions of the Contracts or on your allocations among Investment Options.

Our financial statements which are included in this Statement of Additional Information should be considered only as bearing on our ability to meet our obligations under the Contracts. They should not be considered as bearing on the investment performance of the assets held in the Separate Account.

Accumulation Unit Value Tables

The Accumulation Unit Value Tables are located in Appendix U of the Prospectus.

Services

Independent Registered Public Accounting Firm

The statutory-basis financial statements of John Hancock Life Insurance Company (U.S.A.) at December 31, 2014 and 2013, and for each of the three years in the period ended December 31, 2014, and the financial statements of John Hancock Life Insurance Company (U.S.A.) Separate Account H at December 31, 2014, and for each of the two years in the period ended December 31, 2014, appearing in this Statement of Additional Information of the Registration Statement have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their reports thereon appearing elsewhere herein, and are included in reliance upon such reports given on the authority of such firm as experts in accounting and auditing.

Servicing Agent

Computer Sciences Corporation (“CSC”) provides to us a computerized data processing recordkeeping system for variable and fixed annuity administration. CSC provides various daily, semimonthly, monthly, semiannual and annual reports including:

• daily updates on accumulation unit values, variable annuity participants and transactions, and agent production and commissions;

• semimonthly commission statements;

• monthly summaries of agent production and daily transaction reports;

• semiannual statements for Contract Owners; and

• annual Contract Owner tax reports.

We pay CSC a fixed cost of $3.46 million per Contract per year, plus certain other fees for the services provided.

Principal Underwriter

John Hancock Distributors, LLC (“JH Distributors”), an indirect wholly owned subsidiary of MFC, serves as principal underwriter of the Contracts. Contracts are offered on a continuous basis. The aggregate dollar amounts of underwriting commissions paid to JH Distributors in 2014, 2013, and 2012 were $284,122,028, $290,380,853, and $309,982,088, respectively.

Compensation

The Contracts are primarily sold through selected firms. The Contracts’ principal distributor, JH Distributors, and its affiliates (collectively, “JHD”) pay compensation to broker-dealers (firms) for the promotion, sale and servicing of the Contracts. The compensation JHD pays may vary depending on each firm’s selling agreement and the specific Contract(s) distributed by the firm, but

1

compensation (inclusive of wholesaler overrides and expense allowances) paid to the firms for sale of the Contracts and ongoing services to Contract Owners is not expected to exceed the standard compensation amounts referenced in the Prospectus for the applicable Contract. The amount and timing of this compensation may differ among firms.

The financial advisor through whom your Contract is sold is a registered representative of a broker-dealer, and as such will be compensated pursuant to that registered representative’s own arrangement with his or her broker-dealer. The registered representative and the firm may have multiple options on how they wish to allocate their commissions and/or compensation. We are not involved in determining your financial advisor’s compensation You are encouraged to ask your financial advisor about the basis upon which he or she will be personally compensated for the advice or recommendations provided in connection with the sale of your Contract.

Compensation to firms for the promotion, sale and servicing of the Contracts is not paid directly by Contract owners, but we expect to recoup it through the fees and charges imposed under the Contract.

Legal and Regulatory Matters

There are no legal proceedings to which we, the Separate Account or the principal underwriter is a party, or to which the assets of the Separate Account are subject, that are likely to have a material adverse effect on:

• the Separate Account; or

• the ability of the principal underwriter to perform its contract with the Separate Account; or

• on our ability to meet our obligations under the variable annuity contracts funded through the Separate Account.

2

APPENDIX A: Audited Financial Statements

A-1

AUDITED STATUTORY-BASIS FINANCIAL STATEMENTS

John Hancock Life Insurance Company (U.S.A.)

For the Years Ended December 31, 2014, 2013 and 2012

With Report of Independent Auditors

AUDITED STATUTORY-BASIS FINANCIAL STATEMENTS

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

Years Ended December 31, 2014, 2013 and 2012

Contents

Report of Independent Auditors	F-1
Statutory-Basis Financial Statements
Balance Sheets- Statutory-Basis	F-3
Statements of Operations- Statutory-Basis	F-5
Statements of Changes in Capital and Surplus- Statutory-Basis	F-6
Statements of Cash Flow- Statutory-Basis	F-7
Notes to Statutory-Basis Financial Statements	F-8

Report of Independent Auditors

The Board of Directors and Shareholder

John Hancock Life Insurance Company (U.S.A.)

We have audited the accompanying statutory-basis financial statements of John Hancock Life Insurance Company (U.S.A.) (the Company), which comprise the balance sheets as of December 31, 2014 and 2013, and the related statements of operations, changes in capital and surplus, and cash flow for each of the three years in the period ended December 31, 2014, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in conformity with accounting practices prescribed or permitted by the Michigan Office of Financial and Insurance Regulation. Management also is responsible for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the 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.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 2 to the financial statements, to meet the requirements of Michigan the financial statements have been prepared in conformity with accounting practices prescribed or permitted by the Michigan Office of Financial and Insurance Regulation, which practices differ from U.S. generally accepted accounting principles. The variances between such practices and U.S. generally accepted accounting principles and the effects on the accompanying financial statements are described in Note 2.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the effects of the matter described in the preceding paragraph, the statutory-basis financial statements referred to above do not present fairly, in conformity with U.S. generally accepted accounting principles, the financial position of the Company at December 31, 2014 and 2013, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2014.

F-1

Opinion on Statutory-Basis of Accounting

However, in our opinion, the statutory-basis financial statements referred to above present fairly, in all material respects, the financial position of the Company at December 31, 2014 and 2013, and the results of its operations and its cash flows for each of the three years in the period December 31, 2014 in conformity with accounting practices prescribed or permitted by the Michigan Office of Financial and Insurance Regulation.

/s/ Ernst & Young LLP

Boston, Massachusetts

March 25, 2015

F-2

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

BALANCE SHEETS – STATUTORY BASIS

	December 31,
	2014		2013
	(in millions)
Admitted assets
Cash and invested assets:
Bonds	$	49,226	$	47,948
Stocks:
Preferred stocks		26		33
Common stocks		477		343
Investments in affiliates		2,911		2,866
Mortgage loans on real estate		11,519		12,221
Real estate:
Company occupied		300		305
Investment properties		5,203		5,304
Cash, cash equivalents and short-term investments		7,702		4,749
Policy loans		5,039		5,189
Derivatives		10,458		5,709
Receivable for collateral on derivatives		400		-
Receivable for securities		10		19
Other invested assets		5,978		5,275
Total cash and invested assets		99,249		89,961
Investment income due and accrued		887		892
Premiums due and deferred		388		410
Amounts recoverable from reinsurers		196		172
Funds held by or deposited with reinsured companies		1,958		1,984
Other reinsurance receivable		439		666
Amounts due from affiliates		247		358
Other assets		2,364		1,887
Assets held in separate accounts		140,164		142,766
Total admitted assets	$	245,892	$	239,096

The accompanying notes are an integral part of these statutory-basis financial statements.

F-3

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

BALANCE SHEETS – STATUTORY BASIS – (CONTINUED)

	December 31,
	2014			2013
	(in millions)
Liabilities and capital and surplus
Liabilities:
Policy and contract obligations:
Policy reserves	$	69,184		$	67,065
Policyholders’ and beneficiaries funds		3,834			3,919
Consumer notes		411			644
Dividends payable to policyholders		574			585
Policy benefits in process of payment		556			547
Other amount payable on reinsurance		1,039			443
Other policy obligations		78			77
Total policy and contract obligations		75,676			73,280
Payable to parent and affiliates		3,073			1,713
Transfers to (from) separate account, net		(1,390	)		(1,368	)
Asset valuation reserve		1,927			1,374
Reinsurance in unauthorized companies		3			6
Funds withheld from unauthorized reinsurers		8,873			6,681
Interest maintenance reserve		1,745			1,790
Current federal income taxes payable		-			215
Net deferred tax liability		456			204
Derivatives		5,229			4,046
Payables for collateral on derivatives		2,939			734
Payables for securities		26			111
Other general account obligations		1,843			1,735
Obligations related to separate accounts		140,164			142,766
Total liabilities		240,564			233,287
Capital and surplus:
Preferred stock (par value $1; 50,000,000 shares authorized; 100,000 shares issued and outstanding at December 31, 2014 and 2013)		-			-
Common stock (par value $1; 50,000,000 shares authorized; 4,728,939 shares issued and outstanding at December 31, 2014 and 2013)		5			5
Paid-in surplus		3,196			3,196
Surplus notes		990			990
Unassigned surplus		1,137			1,618
Total capital and surplus		5,328			5,809
Total liabilities and capital and surplus	$	245,892		$	239,096

The accompanying notes are an integral part of these statutory-basis financial statements.

F-4

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

STATEMENTS OF OPERATIONS – STATUTORY-BASIS

	Years Ended December 31,
	2014			2013			2012
	(in millions)
Premiums and other revenues:
Life, long-term care and annuity premiums	$	12,738		$	12,882		$	7,554
Consideration for supplementary contracts with life contingencies		183			266			342
Net investment income		4,297			4,551			4,221
Amortization of interest maintenance reserve		176			183			180
Commissions and expense allowance on reinsurance ceded		817			1,224			749
Reserve adjustment on reinsurance ceded		(10,652	)		(9,775	)		(8,936	)
Separate account administrative and contract fees		1,841			1,848			1,815
Other revenue		467			188			201
Total premiums and other revenues		9,867			11,367			6,126
Benefits paid or provided:
Death, surrender and other contract benefits, net		9,064			7,710			6,728
Annuity benefits		1,733			1,784			1,602
Disability and long-term care benefits		584			542			514
Interest and adjustments on policy or deposit-type funds		125			132			123
Payments on supplementary contracts with life contingencies		170			159			137
Increase (decrease) in life and long-term care reserves		2,161			1,017			(3,915	)
Total benefits paid or provided		13,837			11,344			5,189
Insurance expenses and other deductions:
Commissions and expense allowance on reinsurance assumed		1,203			1,360			1,323
General expenses		972			1,092			1,088
Insurance taxes, licenses and fees		138			150			151
Net transfers to (from) separate accounts		(8,229	)		(6,388	)		(3,608	)
Investment income ceded		4,954			(1,356	)		851
Other deductions		21			14			40
Total insurance expenses and other deductions		(941	)		(5,128	)		(155	)
Income (loss) from operations before dividends to policyholders, federal income taxes and net realized capital gains (losses)		(3,029	)		5,151			1,092
Dividends to policyholders		77			81			57
Income (loss) from operations before federal income taxes and net realized capital gains (losses)		(3,106	)		5,070			1,035
Federal income tax expense (benefit)		(716	)		262			(752	)
Income (loss) from operations before net realized capital gains (losses)		(2,390	)		4,808			1,787
Net realized capital gains (losses)		(74	)		(1,793	)		(1,566	)
Net income (loss)	$	(2,464	)	$	3,015		$	221

The accompanying notes are an integral part of these statutory-basis financial statements.

F-5

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS – STATUTORY-BASIS

	Preferred and Common Stock		Paid-in Surplus		Surplus Notes		Unassigned Surplus (Deficit)			Total Capital and Surplus
	(in millions)
Balances at January 1, 2012	$	5	$	3,196	$	989	$	781		$	4,971
Net income (loss)								221			221
Change in net unrealized capital gains (losses)								698			698
Change in net deferred income tax								71			71
Decrease (increase) in non-admitted assets								10			10
Change in liability for reinsurance in unauthorized reinsurance								2			2
Decrease (increase) in asset valuation reserves								130			130
Change in surplus as a result of reinsurance								(240	)		(240	)
Other adjustments, net						1		(70	)		(69	)
Balances at December 31, 2012		5		3,196		990		1,603			5,794
Net income (loss)								3,015			3,015
Change in net unrealized capital gains (losses)								(1,455	)		(1,455	)
Change in net deferred income tax								(347	)		(347	)
Decrease (increase) in non-admitted assets								(12	)		(12	)
Change in liability for reinsurance in unauthorized reinsurance								-			-
Decrease (increase) in asset valuation reserves								(180	)		(180	)
Dividend paid to Parent								(300	)		(300	)
Change in surplus as a result of reinsurance								(573	)		(573	)
Other adjustments, net						-		(133	)		(133	)
Balances at December 31, 2013		5		3,196		990		1,618			5,809
Net income (loss)								(2,464	)		(2,464	)
Change in net unrealized capital gains (losses)								2,389			2,389
Change in net deferred income tax								973			973
Decrease (increase) in non-admitted assets								56			56
Change in liability for reinsurance in unauthorized reinsurance								3			3
Decrease (increase) in asset valuation reserves								(553	)		(553	)
Dividend paid to Parent								(500	)		(500	)
Change in surplus as a result of reinsurance								(252	)		(252	)
Other adjustments, net						-		(133	)		(133	)
Balances at December 31, 2014	$	5	$	3,196	$	990	$	1,137		$	5,328

The accompanying notes are an integral part of these statutory-basis financial statements.

F-6

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

STATEMENTS OF CASH FLOW – STATUTORY-BASIS

	Years Ended December 31,
	2014			2013			2012
	(in millions)
Operations
Premiums and other considerations collected, net of reinsurance	$	12,924		$	13,205		$	13,046
Net investment income received		4,399			4,635			4,402
Separate account fees		1,841			1,848			1,815
Commissions and expenses allowance on reinsurance ceded		817			1,224			962
Miscellaneous income		450			(172	)		6
Benefits and losses paid		(21,960	)		(20,462	)		(18,213	)
Net transfers from (to) separate accounts		8,206			6,493			3,587
Commissions and expenses (paid) recovered		(7,147	)		(1,572	)		(3,637	)
Dividends paid to policyholders		(89	)		(91	)		(180	)
Federal and foreign income and capital gain taxes (paid) recovered		(382	)		(1,195	)		477
Net cash provided by (used in) operating activities		(941	)		3,913			2,265
Investment activities
Proceeds from sales, maturities, or repayments of investments:
Bonds		20,471			19,130			16,404
Stocks		130			149			122
Mortgage loans on real estate		1,789			1,660			1,514
Real estate		1,053			22			17
Other invested assets		941			498			575
Miscellaneous proceeds		3			(2	)		2
Total investment proceeds		24,387			21,457			18,634
Cost of investments acquired:
Bonds		21,430			17,853			16,178
Stocks		234			78			195
Mortgage loans on real estate		1,088			1,813			1,644
Real estate		539			743			859
Other invested assets		1,281			882			1,223
Derivatives		739			1,916			1,399
Total cost of investments acquired		25,311			23,285			21,498
Net increase (decrease) in receivable/payable for securities and collateral on derivatives		(1,729	)		1,197			(631	)
Net increase (decrease) in policy loans		(150	)		140			34
Net cash provided by (used in) investment activities		955			(3,165	)		(2,267	)
Financing and miscellaneous activities
Borrowed funds		(232	)		(48	)		(19	)
Net deposits (withdrawals) on deposit-type contracts		(85	)		(134	)		20
Dividend paid to Parent		(500	)		(300	)		-
Repurchase agreements		-			(437	)		-
Other cash provided (applied)		3,756			14			976
Net cash provided by (used in) financing and miscellaneous activities		2,939			(905	)		977
Net increase (decrease) in cash, cash equivalents and short-term investments		2,953			(157	)		975
Cash, cash equivalents and short-term investments at beginning of year		4,749			4,906			3,931
Cash, cash equivalents and short-term investments at end of year	$	7,702		$	4,749		$	4,906
Non-cash investing activities during the year:
Transfer of assets for FDA reinsurance transaction	$	-		$	-		$	(4,984	)

The accompanying notes are an integral part of these statutory-basis financial statements.

F-7

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

1. Organization and Nature of Operations

John Hancock Life Insurance Company (U.S.A.) (“JHUSA” or the “Company”) is a wholly-owned subsidiary of The Manufacturers Investment Corporation (“MIC”). MIC is a wholly-owned subsidiary of John Hancock Financial Corporation (“JHFC”), which is an indirect, wholly-owned subsidiary of The Manufacturers Life Insurance Company (“MLI”). MLI, in turn, is a wholly-owned subsidiary of Manulife Financial Corporation (“MFC”), a Canadian-based, publicly traded financial services holding company.

The Company provides a wide range of financial protection and wealth management products and services to both individual and institutional customers located primarily in the United States. Through its insurance operations, the Company offers a variety of individual life insurance and individual and group long-term care insurance products that are distributed through multiple distribution channels, including insurance agents, brokers, banks, financial planners, and direct marketing. The Company also offers mutual fund products and services which include a variety of retirement products to retirement plans. The Company distributes these products through multiple distribution channels, including insurance agents and affiliated brokers, securities brokerage firms, financial planners, pension plan sponsors, pension plan consultants, and banks. In 2013, the Company discontinued sales of its structured settlements and single premium immediate annuity products. In 2012, the Company suspended new sales of its individual fixed and variable annuity products. The Company is licensed to sell insurance in 49 states, the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands.

John Hancock Distributors LLC (“JHD”), a registered broker-dealer and a wholly-owned subsidiary of the Company, acts as the principal underwriter of variable life contracts pursuant to a distribution agreement with the Company.

The Company has two wholly-owned life insurance subsidiaries, John Hancock Life Insurance Company of New York (“JHNY”) and John Hancock Life & Health Insurance Company (“JHLH”).

2. Significant Accounting Policies

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known and may impact the amounts reported and disclosed herein.

Basis of Presentation

These financial statements have been prepared in conformity with accounting practices prescribed or permitted by the Michigan Department of Insurance and Financial Services (the “Insurance Department”). The National Association of Insurance Commissioners’ (“NAIC”) Accounting Practices and Procedures Manual (“NAIC SAP”) has been adopted as a component of practices prescribed or permitted by the State of Michigan. The Michigan Director of the Department of Insurance and Financial Services (the “Director”) has the authority to prescribe or permit other specific practices that deviate from prescribed practices. NAIC SAP practices differ from accounting principles generally accepted in the United States (“GAAP”) as described below.

Investments: Investments in bonds not backed by other loans are principally stated at amortized cost using the constant yield (interest) method. Bonds can also be stated at the lesser of amortized cost or fair value based on their NAIC designated rating. Non-redeemable preferred stocks, which have characteristics of equity securities, are reported at cost or lower of cost or market value as determined by the Securities Valuation Office of the NAIC (“SVO”) rating, and the related net unrealized capital gains (losses) are reported in unassigned surplus along with any adjustment for federal income taxes. Redeemable preferred stocks, which have characteristics of debt securities and are rated as medium quality or better, are reported at cost or amortized cost. All other redeemable preferred stocks are reported at the lower of cost, amortized cost, or fair value.

For bonds other than loan-backed and structured securities, the Company has a process in place to identify securities that could potentially have an impairment that is other-than-temporary. The Company recognizes other-than-temporary impairment losses on bonds with unrealized losses when either of the following two conditions exist: the entity either (1) has the intent to sell the debt security or (2) is more likely than not to be required to sell the debt security before its anticipated recovery. Declines in value due to credit difficulties are also considered to be other-than-temporarily impaired when the

F-8

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

2. Significant Accounting Policies - (continued)

Company does not have the intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in value. The entire difference between amortized cost and fair value on such bonds with credit difficulties is recognized as an impairment loss in income.

Loan-backed and structured securities (i.e., collateralized mortgage obligations) are adjusted for the effects of changes in prepayment assumptions on the related accretion of discounts or amortization of premiums of such securities using either the retrospective or prospective methods. The retrospective adjustment method is used to value all such securities, except principal-only and interest-only securities and such securities with NAIC designations of 3-6, which are valued using the prospective method. If it is determined that a decline in fair value is other-than-temporary, the cost basis of the security is written down to the present value of estimated future cash flows using the original effective interest rate inherent in the security.

Common stocks are primarily reported at fair value based on quoted market prices and the related net unrealized capital gains (losses) are reported in unassigned surplus, net of any adjustment for federal income taxes. There are no restrictions on common and preferred stocks.

Insurance subsidiaries are reported at their underlying statutory equity. Non-insurance subsidiaries, which have significant ongoing operations other than for the benefit of the Company and its affiliates, are reported at GAAP equity. Non-insurance subsidiaries, which have no significant ongoing operations other than for the benefit of the Company and its affiliates, are reported based on the underlying equity adjusted to a statutory-basis, plus the admitted portion of goodwill. Dividends from subsidiaries are included in net investment income. The remaining net change in the subsidiaries’ equity is included in the change in net unrealized capital gains (losses).

Realized capital gains (losses) on sales of securities are recognized using the first in first out (“FIFO) method. The cost basis of bonds and common and preferred stocks is adjusted for impairments in value deemed to be other-than-temporary and such adjustments are reported as a component of net realized capital gains (losses).

Mortgage loans on real estate are reported at unpaid principal balances, less an allowance for impairments. Valuation allowances, if necessary, are established for mortgage loans on real estate based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. The initial valuation allowance and subsequent changes in the allowance for mortgage loans are charged or credited directly to unassigned surplus. A mortgage loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all principal and interest amounts due according to the contractual terms of the mortgage agreement. When management determines foreclosure is probable and the impairment is other-than-temporary, the mortgage loan is written down and a realized loss is recognized.

Real estate occupied by the Company and real estate held for the production of income are reported at depreciated cost, net of related obligations. Real estate that the Company has the intent to sell is reported at the lower of depreciated cost or fair value, net of related obligations. Depreciation is calculated on a straight-line basis over the estimated useful lives of the properties. Investment income and operating expenses include rent for the Company’s occupancy of Company-owned properties

Cash equivalents are short-term highly liquid investments with original maturities of three months or less and are principally stated at amortized cost. Short-term investments include investments with maturities of one year or less and greater than three months at the date of acquisition and are principally stated at amortized cost.

Policy loans are reported at unpaid principal balances.

Derivative instruments that meet the criteria to qualify for hedge accounting are accounted for in a manner consistent with the item hedged (i.e., amortized cost or fair value with the related net unrealized capital gains (losses) reported in unassigned surplus along with any adjustment for federal income taxes). Derivative instruments that are entered into for other than hedging purposes or that do not meet the criteria to qualify for hedge accounting are accounted for at fair value, and the related changes in fair value are recognized as net unrealized capital gains (losses) reported in unassigned surplus, net of any adjustments for federal income taxes. Embedded derivatives are not accounted for separately from the host contract.

Other invested assets consist of ownership interests in partnerships and limited liability corporations (“LLCs”) which are carried based on the underlying GAAP equity, with the exception of affordable housing tax credit properties, which are

F-9

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

2. Significant Accounting Policies - (continued)

carried at amortized cost. The related net unrealized capital gains (losses) are reported in unassigned surplus, net of any adjustments for federal income taxes.

Interest Maintenance and Asset Valuation Reserves: Under a formula prescribed by the NAIC, the Company defers the portion of realized capital gains (losses) on sales of fixed income investments, principally bonds and mortgage loans, and interest-related hedging activities that are attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity based on groupings of individual securities sold in five-year bands. That net deferral is reported as the interest maintenance reserve (“IMR”) in the accompanying Balance Sheets. Realized capital gains (losses) are reported in income, net of federal income tax and transferred to the IMR. The asset valuation reserve (“AVR”) provides a valuation allowance for invested assets. The AVR is determined by an NAIC prescribed formula with changes reflected directly in unassigned surplus.

Subsidiaries: The accounts and operations of the Company’s subsidiaries are not consolidated with the accounts and operations of the Company.

Goodwill: Goodwill is admitted subject to an aggregate limitation of 10% of the capital and surplus in the most recently filed quarterly statement, excluding EDP equipment, operating system software, net deferred tax assets, and net positive goodwill. Goodwill is amortized over the period the Company benefits economically, not to exceed 10 years. Goodwill held by non-insurance subsidiaries is assessed in accordance with GAAP, subject to certain limitations for holding companies and foreign insurance subsidiaries.

Separate Accounts: Separate account assets and liabilities reported in the accompanying Balance Sheets represent funds that are separately administered, principally for annuity contracts and variable life insurance policies, and for which the contract holder, rather than the Company, bears the investment risk. Separate account obligations are intended to be satisfied from separate account assets and not from assets of the general account. Separate accounts are generally reported at fair value. The operations of the separate accounts are not included in the Statements of Operations; however, income earned on amounts initially invested by the Company in the formation of new separate accounts is included in other revenue. Fees charged to contract holders, principally mortality, policy administration, and surrender charges are included in separate account administrative and contract fees. The assets in the separate accounts are not pledged to others as collateral or otherwise restricted. For the years ended December 31, 2014, 2013 and 2012, there were no gains (losses) on transfers of assets from the general account to the separate account.

Nonadmitted Assets: Certain assets designated as nonadmitted, principally furniture and equipment, past due agents’ balances, and other assets not specifically identified as an admitted asset within the NAIC SAP are excluded from the accompanying Balance Sheets and are charged directly to unassigned surplus.

Policy Acquisition Costs: The costs of acquiring and renewing business are expensed when incurred.

Policy Reserves: Reserves for life, long-term care, annuity, and deposit-type contracts are developed by actuarial methods and are determined based on interest rates, mortality tables and valuation methods prescribed by the NAIC that will provide, in the aggregate, reserves that are greater than or equal to the maximum of guaranteed policy cash values or the amounts required by the Insurance Department.

• The Company waives deduction of deferred fractional premiums on the death of lives insured and annuity contract holders and returns any premium beyond the date of death. Surrender values on policies do not exceed the corresponding benefit reserves. Additional reserves are established when the results of asset adequacy testing indicate the need for such reserves or the net premiums exceed the gross premiums on any insurance in-force. This includes asset adequacy testing required under NAIC Actuarial Guideline 38 Section 8D (“AG 38 8D”). The Company held gross reserves of $641 million and $325 million for the calculation required under AG 38 8D, of which $446 million and $0 million was ceded to Manulife Reinsurance Limited (“MRL”) under an existing coinsurance transaction at December 31, 2014 and 2013, respectively. At December 31, 2014 and 2013, the Company held reserves of $1,030 million and $1,018 million, respectively, on insurance in-force for which gross premiums were less than net premiums according to the standard of valuation set by the State of Michigan.

• Reserves for individual life insurance policies are maintained using the 1941, 1958, 1980, and 2001 Commissioner’s Standard Ordinary and American Experience Mortality Tables. Methods used include the net level premium method

F-10

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

2. Significant Accounting Policies - (continued)

principally for policies issued prior to 1978, a modified preliminary term method, and the Commissioner’s Reserve Valuation Method.

• Annuity and supplementary contracts with life contingency reserves are based principally on modifications of the 1937 Standard Annuity Table, the Group Annuity Mortality Tables for 1951, 1971, 1983, and 1994, the 1971 Individual Annuity Mortality Table, the 1983 Individual Annuity Mortality Table, and the 2000 Individual Annuity Mortality Table.

• Liabilities related to policyholder funds left on deposit with the Company are generally equal to fund balances.

• Long-term care reserves are generally calculated using the one-year preliminary term method based on various mortality, morbidity, and lapse tables.

• The mean reserve method is used to adjust the calculated terminal reserve to the appropriate reserve at December 31, 2014 or 2013. Mean reserves are determined by computing the terminal reserve for the plan at the rated age and assuming annual premiums have been paid as of the valuation date. For certain policies with substandard table ratings, mean reserves are based on rated mortality from 125% to 500% of standard rating; for certain policies with flat extra ratings, mean reserves are based on standard mortality rates increased by 1 to 25 deaths per thousand. An asset is recorded for deferred premiums, net of loading, to adjust the reserve for modal premium payments.

• For long-term care, the interpolated reserve method is used to adjust the calculated terminal reserve, and in addition an unearned premium reserve is held.

• Tabular interest, tabular less actual reserve released, and tabular costs have been determined by formula. Tabular interest on funds not involving life contingencies is calculated as one percent of the product of such valuation rate of interest times the mean of the amount of funds subject to such valuation rate of interest held at the beginning and end of the valuation year.

• From time to time, the Company finds it appropriate to modify certain required policy reserves because of changes in actuarial assumptions. Reserve modifications resulting from such determinations are recorded directly to unassigned surplus.

• Reserves for variable deferred annuity contracts are calculated in accordance with NAIC Actuarial Guideline 43, and primarily use the 1994 Minimum Guaranteed Death Benefit or Annuity 2000 tables. The reserve is based on the present value of accumulated losses from the perspective of the Company. The liability is evaluated under both a standard scenario and stochastic scenario, and the Company holds the higher of the standard or stochastic values.

Reinsurance: Reinsurance ceded contracts do not relieve the Company from its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet its obligations for reinsurance ceded to it under the reinsurance agreements. Failure of the reinsurers to honor their obligations could result in losses to the Company; consequently, estimates are established for amounts deemed or estimated to be uncollectible. To minimize its exposure to significant losses from reinsurance insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk arising from similar characteristics of the insurer.

Premiums, commissions, expense reimbursements, benefits, and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums ceded to other companies have been reported as a reduction of premium income. Amounts applicable to reinsurance ceded for future policy benefits, unearned premium reserves, and claim liabilities have been reported as reductions of these items.

The Company records a liability for unsecured policy reserves ceded to reinsurers not authorized in the State of Michigan to assume such business. Changes to those amounts are credited or charged directly to unassigned surplus. Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves. Commissions allowed by reinsurers on business ceded are reported as income when received. Investment income ceded includes separate account fee income, net investment income and realized investment and other gains (losses), which was ceded to the affiliated reinsurers. NAIC SAP

F-11

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

2. Significant Accounting Policies - (continued)

prescribes that no gain be recognized upon inception of a reinsurance treaty. The initial consideration is recorded directly to unassigned surplus and released into income over the life of the treaty.

Federal Income Taxes: Total federal income taxes are based upon the Company’s best estimate of its current and deferred tax assets or liabilities. Current tax expense is reported in the statements of operations as federal income tax expense if resulting from operations and within net unrealized capital gains (losses) if resulting from capital transactions. Changes in the balances of deferred taxes, which provide for book versus tax temporary differences, are subject to limitations and are reported within various lines within surplus. Accordingly, the reporting of statutory to tax temporary differences, such as reserves and policy acquisition costs, and of statutory to tax permanent differences, such as tax-exempt interest and tax credits, results in effective tax rates in the statements of operations that differ from the federal statutory tax rate.

Participating Insurance and Policyholder Dividends: Participating business represented approximately 26% and 27% of the Company’s aggregate reserve for life contracts at December 31, 2014 and 2013. The amount of policyholders’ dividends to be paid is approved annually by the Company’s Board of Directors. Policyholder dividends are recognized when declared rather than over the term of the related policies. The determination of the amount of policyholder dividends is complex and varies by policy type. In general, the aggregate amount of policyholders’ dividends is calculated based upon actual interest, mortality, morbidity, persistency, and expense experience for the year, as well as management’s judgment as to the appropriate level of statutory surplus to be retained by the Company. John Hancock Life Insurance Company (“JHLICO”) was a predecessor company that was merged into JHUSA on December 31, 2009. For additional information on the closed blocks, see the Closed Blocks Note.

Surplus Notes: Surplus notes are reported in capital and surplus, and the interest expense is not accrued unless approved for payment by the Insurance Department.

Statements of Cash Flow: Cash, cash equivalents and short-term investments in the statements of cash flow represent movements of cash and highly liquid debt investments with initial maturities of one year or less.

Premiums and Benefits: Premiums for whole, term, and universal life, long-term care, annuity policies, guaranteed interest, and group annuity contracts with any mortality and morbidity risk are recognized as revenue when due. Revenues for universal life and annuity policies with mortality or morbidity risk, except for guaranteed interest, term certain supplementary contracts, and funding agreements, consist of the entire premium received. Premiums received for annuity policies, guaranteed interest, funding agreements, variable universal life, and group annuity contracts without mortality or morbidity risk are recorded using deposit accounting and are credited directly to an appropriate policy reserve account, without recognizing premium revenue. Benefits incurred represent the total of death benefits paid, annuity benefits paid and the change in policy reserves.

Policy and Contract Claims: Policy and contract claims are determined on an individual-case basis for reported losses. Estimates of incurred but not reported losses are developed on the basis of past experience.

Guaranty Fund Assessments: Guaranty fund assessments are accrued when the Company receives knowledge of an insurance insolvency.

Reclassifications: Certain prior year amounts in the Company’s statutory-basis financial statements have been reclassified to conform to the current year financial statement presentation.

Variances Between NAIC SAP and GAAP: The more significant variances from GAAP are: (a) bonds would generally be reported at fair value; (b) changes in the fair value of derivative financial instruments would generally be reported as revenue unless deemed an effective hedge; (c) embedded derivatives would be bifurcated from the underlying contract or security and accounted for separately at fair value; (d) income recognition on partnerships and LLCs, which are accounted for under the equity method, would not be limited to the amount of cash distribution; (e) majority-owned noninsurance subsidiaries, variable interest entities where the Company is the primary beneficiary, and certain other controlled entities would be consolidated; (f) changes in the balances of deferred income taxes would generally be included in net income; (g) market value adjusted (“MVA”) annuity products would be reported in the general account of the Company; (h) all assets, subject to valuation allowances, would be recognized; (i) reserves would generally be based upon the net level premium method or the estimated gross margin method with estimates of future mortality, morbidity, persistency and interest; (j) reinsurance ceded, unearned ceded premium and unpaid ceded claims would be reported as an asset; (k) AVR and IMR would not be recorded; (l) changes to the mortgage loan valuation allowance would be reported in income; (m) surplus notes would be reported as

F-12

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

2. Significant Accounting Policies - (continued)

liabilities; (n) premiums received in excess of policy charges for universal life and annuity policies would not be recognized as premium revenue and benefits would represent the excess of benefits paid over the policy account value and interest credited to the account values; (o) certain acquisition costs, such as commissions and other variable costs, directly related to acquiring new business are charged to current operations as incurred, would generally be capitalized and amortized based on profit emergence over the expected life of the policies or over the premium payment period; and (p) changes in unrealized capital gains (losses) and foreign currency translations would be presented as other comprehensive income.

3. Permitted Statutory Accounting Practices

The financial statements of the Company are presented in conformity with accounting practices prescribed or permitted by the Insurance Division.

For determining the Company’s solvency under the State of Michigan’s insurance laws and regulations, the Insurance Department recognizes only statutory accounting practices prescribed or permitted by the State of Michigan for determining and reporting the financial condition and results of operations of the Company. NAIC SAP has been adopted as a component of prescribed or permitted practices by the State of Michigan. The Director has the authority to prescribe or permit other specific practices that deviate from prescribed practices.

As of December 31, 2014 and 2013, the Director had not prescribed or permitted the Company to use any accounting practices that would result in the Company’s income or financial position to deviate from NAIC SAP.

4. Accounting Changes

Accounting changes adopted to conform to the provisions of NAIC SAP are reported as changes in accounting principles. The cumulative effect of changes in accounting principles is reported as an adjustment to unassigned surplus in the period of the change in accounting principle. The cumulative effect is the difference between the amount of unassigned surplus at the beginning of the year and the amount of unassigned surplus that would have been reported at that date if the new accounting principle had been applied retrospectively.

Adoption of New Accounting Standards

In March 2014, the NAIC adopted updated guidance regarding derivatives. The new guidance permits a company to designate the Fed Funds Effective Swap Rate (also referred to as the “Overnight Index Swap Rate” or “OIS”) as the hedged risk (or benchmark interest rate) in both cash flow and fair values hedges. The updated guidance also removed the requirement that similar hedges designate the same benchmark rate. The adoption of this guidance did not impact the Company’s Balance Sheets or Statements of Operations.

Future Adoption of New Accounting Standards

In December 2014, the NAIC adopted Actuarial Guideline 48 (“AG 48”) which intends to bring uniformity to the regulation of XXX and AXXX business subject to life insurer-owned captive reinsurance arrangements. The guidance requires the appointed actuary of the ceding company to perform an analysis of the amount and type of assets backing collateral. AG 48’s actuarial method determines the amount of “high quality assets” which must back collateral and is based on calculations from the NAIC principle based reserving valuation manual. Certified reinsurers as well as licensed and accredited reinsurers with no permitted practices will be exempt from AG 48. Additionally, AG 48 does not apply to policies that were issued prior to January 1, 2015 and included in a reserve financing arrangement as of December 31, 2014. As such, the adoption of AG 48 is not expected to have any material impact on the Company’s Balance Sheets or Statements of Operations.

Reconciliation Between Audited Financial Statements and NAIC Annual Statements

There were no differences in net income (loss) or capital and surplus between the audited financial statements and the NAIC statements as filed as of and for the years ended December 31, 2014, 2013 and 2012.

F-13

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

5. Investments

Bonds

The carrying value and fair value of the Company’s investments in bonds are summarized as follows:

	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in millions)
December 31, 2014:
U.S. government and agencies	$	5,420	$	863	$	(1	)	$	6,282
States and political subdivisions		2,842		606		-			3,448
Foreign governments		2,849		205		(10	)		3,044
Corporate bonds		31,347		3,633		(140	)		34,840
Mortgage-backed and asset-backed securities		6,768		618		(49	)		7,337
Total bonds	$	49,226	$	5,925	$	(200	)	$	54,951
December 31, 2013:
U.S. government and agencies	$	6,988	$	90	$	(356	)	$	6,722
States and political subdivisions		2,721		213		(36	)		2,898
Foreign governments		3,000		137		(37	)		3,100
Corporate bonds		28,367		2,252		(574	)		30,045
Mortgage-backed and asset-backed securities		6,872		498		(108	)		7,262
Total bonds	$	47,948	$	3,190	$	(1,111	)	$	50,027

A summary of the carrying value and fair value of the Company’s investments in bonds at December 31, 2014, by contractual maturity, is as follows:

	Carrying Value		Fair Value
	(in millions)
Due in one year or less	$	1,399	$	1,429
Due after one year through five years		6,929		7,287
Due after five years through ten years		7,282		7,645
Due after ten years		26,848		31,253
Mortgage-backed and asset-backed securities		6,768		7,337
Total	$	49,226	$	54,951

The expected maturities in the foregoing table may differ from the contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

The Company maintains assets which are pledged as collateral in connection with various agreements and transactions. Additionally, the Company holds assets on deposit with government authorities as required by state law. The following table summarizes the carrying value or fair value, as applicable, of the pledged or deposited assets:

F-14

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

5. Investments - (continued)

	December 31,
	2014		2013
	(in millions)
At fair value:
Bonds pledged in support of over-the-counter derivative instruments	$	125	$	831
Bonds pledged in support of exchange-traded futures		498		264
Bonds and cash pledged in support of cleared interest rate swaps		551		253
Total fair value	$	1,174	$	1,348
At carrying value:
Bonds on deposit with government authorities	$	16	$	26
Mortgage loans pledged in support of real estate		45		47
Bonds held in trust		132		92
Pledged collateral under reinsurance agreements		2,800		2,510
Total carrying value	$	2,993	$	2,675

At December 31, 2014 and 2013, the Company held below investment grade corporate bonds of $2,096 million and $2,428 million, with an aggregate fair value of $2,197 million and $2,551 million, respectively. The Company performs periodic evaluations of the relative credit standing of the issuers of these bonds.

The Company has a process in place to identify securities that could potentially have an impairment that is other-than-temporary. This process involves monitoring market events that could impact issuers’ credit ratings, business climate, management changes, litigation and government actions, and other similar factors. This process also involves monitoring late payments, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts, and cash flow projections as indicators of credit issues.

At the end of each quarter, the MFC Loan Review Committee reviews all securities where there is evidence of impairment or a significant unrealized loss at the Balance Sheet date. Generally, securities with market value less than 60 percent of amortized cost for six months or more indicate an impairment is present. Accordingly, securities in this category are normally deemed impaired unless there is clear evidence they should not be impaired. The analysis focuses on each company’s or project’s ability to service its debts in a timely fashion and the length of time the security has been trading below amortized cost. The results of this analysis are reviewed by the Transaction and Portfolio Review Committee at MFC. This committee includes MFC’s Chief Financial Officer, Chief Investment Officer, Chief Risk Officer, Chief Credit Officer, and other senior management. This quarterly process includes a fresh assessment of the credit quality of each investment in the entire fixed maturity security portfolio.

The Company considers relevant facts and circumstances in evaluating whether the impairment of a security is other-than-temporary. Relevant facts and circumstances considered include (1) the length of time the fair value has been below cost; (2) the financial position of the issuer, including the current and future impact of any specific events; and (3) the Company’s ability and intent to hold the security to maturity or until it recovers in value. To the extent the Company determines that a security, other than loan-backed and structured securities, is deemed to be other-than-temporarily impaired, the difference between amortized cost and fair value would be charged to income. For loan-backed and structured securities in an unrealized loss position, where the Company does not intend to sell or is not likely to be required to sell the security, the Company calculates an other-than-temporary impairment loss by subtracting the net present value of the projected future cash flows of the security from the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. The projection of future cash flows is subject to the same analysis the Company applies to its overall impairment evaluation process, as noted above, which incorporates security specific information such as late payments, downgrades by rating agencies, key financial ratios, financial statements, and fundamentals of the industry and geographic area in which the issuer operates, as well as overall macroeconomic conditions. The cash flow estimates, including prepayment assumptions, are based on data from third-party data sources or internal estimates, and are driven by assumptions regarding the underlying collateral, including default rates, recoveries, and changes in value.

There are a number of significant risks and uncertainties inherent in the process of monitoring impairments and determining if impairment is other-than-temporary. These risks and uncertainties include (1) the risk that the Company’s assessment of an

F-15

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

5. Investments - (continued)

issuer’s ability to meet all of its contractual obligations will change based on changes in the credit characteristics of that issuer; (2) the risk that the economic outlook will be worse than expected or have more of an impact on the issuer than anticipated; (3) the risk that fraudulent information could be provided to the Company’s investment professionals who determine the fair value estimates and other-than-temporary impairments; and (4) the risk that new information obtained by the Company or changes in other facts and circumstances lead the Company to change its intent to hold the security to maturity or until it recovers in value. Any of these situations could result in a charge to income in a future period.

The impact of Other-Than-Temporary Impairments (OTTI) on Carrying Values (CV), including the Present Value (PV) of Cash Flows (CF) less than Book Value (BV), is as follows:

	December 31, 2014
	CV Before OTTI		Interest OTTI		Credit OTTI		CV After OTTI		Fair Value
	(in millions)
Aggregate PV of CFs less than BV	$	33	$	-	$	5	$	28	$	28
Aggregate intent to sell		-		-		-		-		-
Aggregate lack of intent or inability to sell		-		-		-		-		-
Total	$	33	$	-	$	5	$	28	$	28
	December 31, 2013
	CV Before OTTI		Interest OTTI		Credit OTTI		CV After OTTI		Fair Value
	(in millions)
Aggregate PV of CF’s less than BV	$	106	$	8	$	50	$	56	$	48
Aggregate intent to sell		-		-		-		-		-
Aggregate lack of intent or inability to sell		-		-		-		-		-
Total	$	106	$	8	$	50	$	56	$	48

F-16

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

5. Investments - (continued)

The following tables disclose the impact of Other-Than-Temporary Impairments (OTTI) on Carrying Values (CV), including the Net Present Value (NPV) of Projected Cash Flows (CF) less than Book Value (BV) by CUSIP:

Year Ended December 31, 2014

CUSIP#	CV Before OTTI		NPV of Projected CFs		Credit OTTI Recognized in Loss		CV After OTTI		Fair         Value
00075XAE7	$	1	$	1	$	-	$	1	$	1
12669FUY7		-		-		-		-		-
361849RK0		15		14		1		14		14
126670AJ7		-		-		-		-		-
126673WJ7		-		-		-		-		-
126673WK4		-		-		-		-		-
12669ERQ1		4		3		1		3		3
12669FD67		-		-		-		-		-
50180LAP5		4		3		1		3		3
55265KS42		-		-		-		-		-
75970NAR8		1		1		-		1		1
75970NBK2		1		1		-		1		1
126673WJ7		-		-		-		-		-
12669FD59		2		1		1		1		1
55265KS34		1		1		-		1		1
59020UAZ8				-		-		-		-
75970NAR8		1		1		-		1		1
75970NBK2		-		-		-		-		-
94981QAZ1		-		-		-		-		-
50180LAP5		3		2		1		2		2
75970NBK2		-		-		-		-		-
Total	$	33	$	28	$	5	$	28	$	28

F-17

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

5. Investments - (continued)

Year Ended December 31, 2013

CUSIP#	CV Before OTTI		NPV of Projected CFs		Credit OTTI Recognized in Loss		CV After OTTI		Fair         Value
03927RAC8	$	1	$	-	$	1	$	-	$	-
07387BEN9		1		-		-		-		-
12669E7D2		1		-		-		-		-
20047NAM4		2		-		2		-		-
22541SWR5		3		-		3		-		-
22608WAP4		7		-		6		-		-
36170UCA7		1		-		1		-		-
36170UCR0		1		-		1		-		-
36828QLA2		3		2		1		2		1
396789KD0		6		5		2		5		3
46625M7D5		1		1		-		1		1
46625YBQ5		2		1		1		1		1
48123HAA1		7		3		4		3		3
50211NAG4		6		-		6		-		-
52108H3R3		1		-		1		-		-
55265KS42		1		1		-		1		-
949808BE8		1		-		-		-		-
07388NAH9		7		5		3		5		5
396789KD0		5		3		3		3		3
46625YDU4		4		1		3		1		1
55265KS42		1		1		-		1		1
75970NBK2		1		1		1		1		1
00764MDY0		3		2		-		2		2
396789KD0		2		1		1		1		1
46625YDS9		6		4		3		4		4
52108HL28		13		9		4		9		5
07383F4H8		3		2		1		2		2
07388NAH9		5		5		-		5		5
07388PAL5		5		4		1		4		4
52108HL28		6		5		1		5		5
Total	$	106	$	56	$	50	$	56	$	48

F-18

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

5. Investments - (continued)

All impaired securities which have fair value less than cost or amortized cost, for which an other-than-temporary impairment has not been recognized in income as a realized loss, including securities with a recognized other-than-temporary impairment for non-interest related declines when a non-recognized interest related impairment remains:

	December 31,
	2014		2013
	(in millions)
Continuous Unrealized Losses
Less than 12 months	$	-	$	(1)
12 months or longer		-		-
Fair Value of Securities with Continuous Unrealized Losses
Less than 12 months		3		7
12 months or longer		4		2

F-19

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

5. Investments - (continued)

The following table shows gross unrealized losses and fair values of bonds, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

	Less than 12 months					12 months or more					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
						(in millions)
December 31, 2014:
U.S. government and agencies	$	94	$	-		$	58	$	(1	)	$	152	$	(1	)
States and political subdivisions		8		-			8		-			16		-
Foreign governments		80		-			52		(10	)		132		(10	)
Corporate bonds		2,033		(45	)		2,651		(95	)		4,684		(140	)
Mortgage-backed and asset-backed securities		412		(8	)		459		(41	)		871		(49	)
Total	$	2,627	$	(53	)	$	3,228	$	(147	)	$	5,855	$	(200	)
	Less than 12 months					12 months or more					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
						(in millions)
December 31, 2013:
U.S. government and agencies	$	4,485	$	(283	)	$	301	$	(73	)	$	4,786	$	(356	)
States and political subdivisions		405		(21	)		65		(15	)		470		(36	)
Foreign governments		1,738		(25	)		284		(12	)		2,022		(37	)
Corporate bonds		6,654		(376	)		1,528		(198	)		8,182		(574	)
Mortgage-backed and asset-backed securities		1,268		(40	)		589		(68	)		1,857		(108	)
Total	$	14,550	$	(745	)	$	2,767	$	(366	)	$	17,317	$	(1,111	)

At December 31, 2014 and 2013, there were 574 and 945 bonds that had a gross unrealized loss, of which the single largest unrealized loss was $12 million and $87 million, respectively. The Company anticipates that these bonds will perform in accordance with their contractual terms and the Company currently has the ability and intent to hold these bonds until they recover or mature. Unrealized losses can be created by rising interest rates or by rising credit concerns and hence widening credit spreads. Credit concerns are apt to play a larger role in the unrealized loss on below investment grade securities. Unrealized losses on investment grade securities principally relate to changes in interest rates or changes in credit spreads since the securities were acquired. Credit rating agencies’ statistics indicate that investment grade securities have been found to be less likely to develop credit concerns.

For the years ended December 31, 2014, 2013 and 2012, realized capital losses include $24 million, $88 million, and $108 million related to bonds that have experienced an other-than-temporary decline in value and were comprised of 21, 43, and 78 securities, respectively. These are primarily made up of impairments on public and private bonds and sub-prime mortgage-backed securities.

The total recorded investment in restructured corporate bonds at December 31, 2014, 2013 and 2012 was $17 million, $0 million, and $0 respectively. There were 2, 0, and 0 restructured corporate bonds for which an impairment was recognized during 2014, 2013 and 2012, respectively. The Company accrues interest income on impaired securities to the extent deemed

F-20

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

5. Investments - (continued)

collectible and the loan continues to perform under its original or restructured contractual terms. Interest income on non-performing loans generally is recognized on a cash basis.

The sales of investments in bonds resulted in the following:

	December 31,
	2014			2013			2012
	(in millions)
Proceeds	$	18,292		$	14,555		$	14,297
Realized gross gains		579			244			529
Realized gross losses		(111	)		(483	)		(79	)

The Company had no nonadmitted accrued investment income from bonds (unaffiliated) at December 31, 2014 and 2013.

Affiliate Transactions

In 2014, JHUSA sold certain bonds to an affiliate, MLI. These bonds had a book value of $178 million and a fair value of $206 million at the date of the transaction. The Company recognized $28 million in pre-tax realized gains which was deferred in IMR.

In 2014, JHUSA sold certain bonds to an affiliate, Manufacturers International Limited (Hong Kong) (“MIL”). These bonds had a book value of $371 million and a fair value of $433 million in exchange for certain bonds from MIL with a book value of $389 million and fair value of $435 million at the date of the transaction. The Company recognized $62 million in pre-tax realized gains which was deferred in IMR.

In 2014, JHUSA sold certain bonds to an affiliate, John Hancock Reassurance Company Limited (“JHRECO”). These bonds had a book value of $244 million and fair value of $284 million in exchange for certain bonds from JHRECO with a book value of $282 million and fair value of $291 million at the date of the transaction. The Company recognized $41 million in pre-tax realized gains which was deferred in IMR.

In 2014, JHUSA acquired certain and sold certain bonds from an affiliate, JHNY. These bonds had a net book value of $165 million and a fair value of $188 million at the date of the transactions. The Company recognized $1 million in pre-tax realized gains before transfer to IMR.

In 2014, JHUSA acquired certain bonds from an affiliate, JHLH. These bonds had a book value of $69 million and a fair value of $72 million at the date of the transaction.

In 2013, JHUSA sold certain bonds to an affiliate, Manulife International Limited. These bonds had a book value of $397 million and a fair value of $454 million at the date of the transaction. The Company recognized $57 million in pre-tax realized gains before transfer to IMR.

In 2013, JHUSA sold certain bonds to an affiliate, JHRECO. These bonds had a book value of $184 million and a fair value of $181 million at the date of the transaction. The Company recognized $3 million in pre-tax realized losses before transfer to IMR.

In 2013, JHUSA sold certain and acquired certain bonds from an affiliate, MLI (Bermuda Branch). The bonds had a net book value of $338 million and a fair value of $372 million at the date of the transaction. The Company recognized $27 million in pre-tax realized gains before transfer to IMR.

F-21

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

5. Investments - (continued)

Preferred and Common Stocks

Unrealized gains and losses on investments in preferred and common stocks are reported directly in unassigned surplus and do not affect operations. The gross unrealized gains and losses on, and the cost and fair values of, those investments are summarized as follows:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
December 31, 2014:
Preferred stocks:
Nonaffiliated	$	29	$	18	$	(1)	$	46
Affiliates		3		-		(3)		-
Common stocks:
Nonaffiliated		420		71		(14)		477
Affiliates*		971		1,947		(7)		2,911
Total stocks	$	1,423	$	2,036	$	(25)	$	3,434
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in millions)
December 31, 2013:
Preferred stocks:
Nonaffiliated	$	35	$	17	$	(2)	$	50
Affiliates		3		-		(3)		-
Common stocks:
Nonaffiliated		290		60		(7)		343
Affiliates*		952		1,922		(8)		2,866
Total stocks	$	1,280	$	1,999	$	(20)	$	3,259

* Affiliates — fair value represents the carrying value

At December 31, 2014 and 2013, there were 134 and 110 nonaffiliated equity securities that had a gross unrealized loss excluding securities that have been written down to zero. The single largest unrealized loss was $3 million and $3 million at December 31, 2014 and 2013, respectively. The Company anticipates that these equity securities will recover in value in the near term.

The Company has a process in place to identify equity securities that could potentially have an impairment that is other-than-temporary. The Company considers relevant facts and circumstances in evaluating whether the impairment of a security is other-than-temporary. Relevant facts and circumstances include (1) the length of time the fair value has been below cost; (2) the financial position of the issuer; and (3) the Company’s ability and intent to hold the security until it recovers. To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, the difference between book value and fair value would be charged to income.

For the years ended December 31, 2014, 2013 and 2012, realized capital losses include $2 million, $5 million, $5 million and related to preferred and common stocks that have experienced an other-than-temporary decline in value and were comprised of 33, 69, and 124 securities, respectively. These are primarily made up of impairments on public and private common stocks.

F-22

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

5. Investments - (continued)

Mortgage Loans on Real Estate

At December 31, 2014 and 2013, the mortgage loan portfolio was diversified by geographic region and specific collateral property type as displayed below. The Company controls credit risk through credit approvals, limits, and monitoring procedures.

December 31, 2014:
Property Type	Carrying Value		Geographic Concentration	Carrying Value
	(in millions)			(in millions)
Apartments	$	2,136	East North Central	$	1,394
Industrial		920	East South Central		83
Office buildings		3,347	Middle Atlantic		1,997
Retail		3,209	Mountain		511
Agricultural		405	New England		682
Agribusiness		516	Pacific		3,310
Mixed use		22	South Atlantic		2,459
Other		974	West North Central		468
Allowance		(10)	West South Central		533
			Canada / Other		92
			Allowance		(10)
Total mortgage loans on real estate	$	11,519	Total mortgage loans on real estate	$	11,519

December 31, 2013:
Property Type	Carrying Value			Geographic Concentration	Carrying Value
	(in millions)				(in millions)
Apartments	$	2,001		East North Central	$	1,396
Industrial		997		East South Central		142
Office buildings		3,914		Middle Atlantic		2,148
Retail		3,261		Mountain		530
Agricultural		441		New England		844
Agribusiness		666		Pacific		3,704
Mixed use		21		South Atlantic		2,422
Other		930		West North Central		391
Allowance		(10	)	West South Central		553
				Canada / Other		101
				Allowance		(10	)
Total mortgage loans on real estate	$	12,221		Total mortgage loans on real estate	$	12,221

The aggregate mortgages outstanding to any one borrower do not exceed $240 million.

During 2014, the respective maximum and minimum lending rates for mortgage loans issued were 4.64% and 2.18% for agricultural loans and 5.40% and 3.62% for commercial loans. The Company issued no purchase money mortgages in 2014 and 2013. At the issuance of a loan, the percentage of any one loan to value of security, exclusive of insured, guaranteed, or purchase money mortgages does not exceed 75%. Impaired mortgage loans without an allowance for credit losses were $0 million, $0 million, and $0 million at December 31, 2014, 2013 and 2012, respectively. The average recorded investment in impaired loans was $41 million, $60 million, and $90 million at December 31, 2014, 2013 and 2012, respectively. The Company recognized $3 million, $0 million, and $5 million of interest income during the period the loans were impaired for the years ended December 31, 2014, 2013 and 2012, respectively.

F-23

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

5. Investments - (continued)

Generally, the terms of the restructured mortgage loans call for the Company to receive some form or combination of an equity participation in the underlying collateral, excess cash flows or an effective yield at the maturity of the loans sufficient to meet the original terms of the loans. There are no contractual commitments made to extend credit to debtors owning receivables whose terms have been modified in troubled debt restructurings. The Company accrues interest income on impaired loans to the extent deemed collectible and the loan continues to perform under its original or restructured contractual terms. Interest income on non-performing loans generally is recognized on a cash basis.

The following table provides a reconciliation of the beginning and ending balances for allowance for losses for the periods indicated.

	2014			2013			2012
	(in millions)
Balance at beginning of year	$	10		$	19		$	36
Additions, net		10			13			20
Recoveries of amounts previously charged off		(10	)		(22	)		(37	)
Balance at end of year	$	10		$	10		$	19

For mortgage loans, the Company evaluates credit quality through regular monitoring of credit related exposures, considering both qualitative and quantitative factors in assigning an internal risk rating (“IRR”). These ratings are updated at least annually.

The carrying value of mortgage loans by IRR was as follows:

	December 31,
	2014		2013
	(in millions)
AAA	$	436	$	357
AA		1,594		1,470
A		4,141		3,965
BBB		4,979		5,896
BB		267		403
B and lower and unrated		102		130
Total	$	11,519	$	12,221

Real Estate

The composition of the Company’s investment in real estate is summarized as follows:

	December 31,
	2014			2013
	(in millions)
Properties occupied by the company	$	374			$      372
Properties held for the production of income		5,764			5,658
Properties held for sale		-			185
Less accumulated depreciation		(635	)		(606	)
Total	$	5,503			$   5,609

The Company recorded $0 million, $0 million, and $3 million of impairments on real estate investments during the years ended December 31, 2014, 2013 and 2012, respectively.

F-24

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

5. Investments - (continued)

In 2014, JHUSA acquired real estate from an affiliate, JHNY. The real estate had a book value of approximately $32 million and was recorded at fair value of approximately $33 million at the date of the transaction.

On December 12, 2014, the Company announced it entered into an arrangement with Allianz to co-invest up to $1 billion in the U.S. real estate market. As part of this arrangement, the Company sold 100% of certain real estate holding to an unaffiliated joint venture limited partnership (“LP”) in return for cash and a 20% equity interest in the LP. These properties have a book value of $343 million and fair value of $545 million, which resulted in a gain to operations of $161 million (after 20% deferral of realized gain). Going forward, the Company will provide the LP with property management services and through a wholly-owned subsidiary will provide the LP with asset management services.

Other Invested Assets

The Company had no investments in partnerships or LLCs that exceed 10% of its admitted assets at December 31, 2014 and 2013.

Other invested assets primarily consist of investments in partnerships and LLCs. The Company recorded $3 million, $0 million, and $3 million of impairments on partnerships and limited liability companies during the years ended December 31, 2014, 2013 and 2012, respectively. A periodic review of projected discounted cash flows was performed and the analysis provided evidence of the resulting impairments.

Other

The subprime lending sector, also referred to as B-paper, near-prime, or second chance lending, is the sector of the mortgage lending industry which lends to borrowers who do not qualify for prime market interest rates because of poor or insufficient credit history.

For purposes of this disclosure, subprime exposure is defined as the potential for financial loss through direct investment, indirect investment, or underwriting risk associated with risk from the subprime lending sector. For purposes of this note, subprime exposure is not limited solely to the risk associated with holding direct mortgage loans, but also includes any indirect risk through investments in asset-backed or structured securities, hedge funds, common stock, subsidiaries and affiliates, and insurance product issuance.

Although it can be difficult to determine the indirect risk exposures, it should be noted that not only does it include expected losses, it also includes the potential for losses that could occur due to significantly depressed fair value of the related assets in an illiquid market.

The Company had no direct exposure through investments in subprime mortgage loans as of December 31, 2014 or 2013.

Management considers several factors when classifying a structured finance or residential mortgage-backed security holding as “subprime” or placing a security in the highest risk category. These factors include the transaction’s weighted average FICO or credit score, loan-to-value ratio (LTV), geographic composition, lien position, loan purpose, and loan documentation.

The Company has entered into certain repurchase agreements with an aggregate carrying value of $0 million and $0 million as of December 31, 2014 and 2013, respectively. For such agreements, the Company agrees to a specified term, price, and interest rate through the date of the repurchase.

The Company’s practice is to require a minimum of 102% of the fair value of securities loaned under securities lending agreements to be maintained as non-cash collateral. Positions are marked to market and adjusted on a daily basis to ensure the 102% margin requirement is maintained. Any cash collateral received is not re-invested nor is a rebate paid to the lending counterparty. There were no securities on loan as of December 31, 2014 and 2013.

F-25

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

5. Investments - (continued)

Net Investment Income and Net Realized and Other Gains (Losses)

Major categories of the Company’s net investment income are summarized as follows:

	Years Ended December 31,
	2014			2013			2012
	(in millions)
Income:
Bonds	$	2,378		$	2,577		$	2,406
Preferred stocks		2			-			-
Common stocks		76			4			4
Mortgage loans on real estate		738			730			776
Real estate		669			605			537
Policy loans		287			283			290
Cash, cash equivalents and short-term investments		7			5			6
Other invested assets		464			620			548
Derivatives		452			464			346
Other income		23			25			23
Total investment income		5,096			5,313			4,936
Expenses
Investment expenses		(516	)		(493	)		(472	)
Investment taxes, licenses and fees, excluding federal income taxes		(85	)		(83	)		(68	)
Investment interest expense		(91	)		(97	)		(103	)
Depreciation on real estate and other invested assets		(107	)		(89	)		(72	)
Total investment expenses		(799	)		(762	)		(715	)
Net investment income	$	4,297		$	4,551		$	4,221
Realized capital losses and amounts transferred to the IMR are as follows:
	Years Ended December 31,
	2014			2013			2012
	(in millions)
Realized capital gains (losses)	$	431		$	(1,701	)	$	(591	)
Less amount transferred to the IMR (net of related tax benefit (expense) of $(66) in 2014, $(8) in 2013, and $334 in 2012)		123			(16	)		621
Realized capital gains (losses) before tax		308			(1,685	)		(1,212	)
Less federal income taxes on realized capital gains (losses) before effect of transfer to the IMR		382			108			354
Net realized capital gains (losses)	$	(74	)	$	(1,793	)	$	(1,566	)

6. Derivatives

Derivatives are financial contracts, the value of which is derived from underlying interest rates, foreign exchange rates, credit, equity price movements, indices or other market risks arising from on-balance sheet financial instruments and selected anticipated transactions. The Company uses derivatives including swaps, forward and futures agreements, floors, and options to manage current and anticipated exposures to changes in interest rates, foreign exchange rates, credit and equity market prices.

F-26

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

6. Derivatives - (continued)

Over-the-counter (“OTC”) swaps are contractual agreements between the Company and a counterparty to exchange a series of cash flows based upon rates applied to a notional amount. For interest rate swaps, counterparties generally exchange fixed or floating interest rate payments based on a notional value in a single currency. Cross currency swaps involve the exchange of principal amounts between parties as well as the exchange of interest payments in one currency for the receipt of interest payments in another currency. Total return swaps are contracts that involve the exchange of payments based on changes in the values of a reference asset, including any returns such as interest earned on these assets, in return for amounts based on reference rates specified in the contract.

Cleared interest rate swaps are contractual agreements between the Company and a counterparty whereby the transaction must be cleared through a central clearing house, and subject to mandatory margin and reporting requirements.

Forward and futures agreements are contractual obligations to buy or sell a financial instrument or foreign currency on a predetermined future date at a specified price. Forward contracts are OTC contracts negotiated between counterparties, whereas futures agreements are contracts with standard amounts and settlement dates that are traded on regulated exchanges.

Interest rate floors are contracts with counterparties which require payment of a premium for the right to receive payments when the market interest rate on specified future dates falls below the agreed upon strike price. Interest rate treasury lock contracts are customized agreements securing current interest rates on Treasury securities for payment on a future date.

Options are contractual agreements whereby the holder has the right, but not the obligation, to buy (call option) or sell (put option) a security, exchange rate, interest rate, or other financial instrument at a predetermined price/rate within a specified time.

Types of Derivatives and Derivative Strategies

Interest Rate Contracts. The Company uses interest rate futures contracts, OTC interest rate swap agreements, cleared interest rate swap agreements, pre-payable interest rate swap agreements, and interest rate treasury locks as part of its overall strategies of managing the duration of assets and liabilities or the average life of certain asset portfolios to specified targets. Interest rate swap agreements are contracts with counterparties to exchange interest rate payments of a differing character (i.e., fixed-rate payments exchanged for variable-rate payments) based on an underlying principal balance (notional principal). The net differential to be paid or received on interest rate swap agreements is accrued and recognized as a component of net investment income.

The Company uses interest rate swap agreements in effective hedge accounting relationships. These derivatives hedge the variable cash flows associated with future fixed income asset acquisitions, which will support the Company’s long-term care and life insurance businesses. These agreements will reduce the impact of future interest rate changes on the cost of acquiring adequate assets to support the investment income assumptions used in pricing these products.

The Company also uses interest rate swap agreements in effective hedge accounting relationships designed to hedge the variable cash flows associated with payments that it will receive on certain floating rate bonds.

In addition, the Company uses interest rate swap agreements in effective hedge accounting relationships to hedge the risk of changes in fair value of fixed rate assets and liabilities arising from changes in benchmark interest rates.

The Company also enters into basis swaps to better match the cash flows from assets and related liabilities. Basis swaps are included in interest rate swaps for disclosure purposes. The Company utilizes basis swaps in other hedging relationships.

Inflation swaps are used to reduce inflation risk generated from inflation-indexed liabilities. Inflation swaps are classified within interest rate swaps for disclosure purposes. The Company utilizes inflation swaps in effective hedge accounting relationships and other hedging relationships.

The Company uses exchange-traded interest rate futures 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 U.S. Treasury or swap curve performance. The Company utilizes exchange-traded interest rate futures in other hedging relationships.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

6. Derivatives - (continued)

The Company also purchases interest rate floors primarily to protect against interest rate exposure arising from mismatches between assets and liabilities (duration mismatches). The Company utilizes interest rate floors in other hedging relationships.

Foreign Currency Contracts. Foreign currency derivatives, including foreign currency swaps, foreign currency forwards, and foreign currency futures 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.

Cross currency rate swap agreements are used to manage the Company’s exposure to foreign exchange rate fluctuations, interest rate fluctuations, or both, on foreign currency financial instruments. Cross currency rate swap agreements are contracts to exchange the currencies of two different countries at the same rate of exchange at specified future dates. The net differential to be paid or received on cross currency rate swap agreements is accrued and recognized as a component of net investment income.

Under foreign currency forwards, the Company agrees with other parties to deliver a specified amount of an identified currency at a specified future date. Typically, the price is agreed upon at the time of the contract and payment for such a contract is made at the specified future date. The maturities of these forwards correspond with the future periods in which the foreign currency transactions are expected to occur. The Company utilizes currency forwards in effective hedge accounting relationships and other hedging relationships.

Foreign currency futures are contractual obligations to buy or sell a foreign currency on a predetermined future date at a specified price. These contracts are standardized contracts traded on an exchange. The Company utilizes foreign exchange futures in other hedging relationships.

Equity Market Contracts. Total return swaps are contracts that involve the exchange of payments based on changes in the value of a reference asset, including any returns such as interest earned on these assets, in exchange for amounts based on reference rates specified in the contract. The Company utilizes total return swaps in effective hedge accounting relationships and other hedging relationships.

Equity index options are contractual agreements whereby the holder has the right, but not the obligation, to buy (call option) or sell (put option) an underlying equity market index on or before a specified future date at a specified price. The Company utilizes equity index options that are exchange-traded in other hedging relationships.

Equity index futures contracts are contractual obligations to buy or sell a specified amount of an underlying equity index at an agreed contract price on a specified date. Equity index futures are contracts with standard amounts and settlement dates that are traded on regulated exchanges. The Company utilizes equity index futures in other hedging relationships.

Credit Contracts. The Company manages credit risk through the issuance of credit default swaps (“CDS”). A CDS is a derivative instrument representing an agreement between two parties to exchange the credit risk of a single specified entity or an index based on the credit risk of a group of entities (all commonly referred to as the “reference entity” or a portfolio of “reference entities”), in return for a periodic premium. CDS contracts typically have a five-year term.

Replication Synthetic Assets. Replication synthetic asset transactions (“RSATs”) are derivative transactions made in combination with a cash instrument in order to reproduce the investment characteristic of an otherwise permissible investment. The Company uses interest rate swaps and credit default swaps in these transactions when direct investments are either too expensive to acquire or otherwise unavailable in the market. Such derivatives can only be RSATs and not hedging vehicles.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

6. Derivatives - (continued)

The table below provides a summary of the gross notional amount and fair value of derivatives contracts for all derivatives in effective hedge accounting relationships, other hedging relationships, and RSATs:

		December 31, 2014
		Notional Amount		Carrying Value Assets		Carrying Value Liabilities		Fair Value Assets		Fair Value Liabilities
		(in millions)
Effective Hedge Accounting Relationships
Fair value hedges	Interest rate swaps	$	5,461	$	-	$	1	$	496	$	641
	Foreign currency swaps		169		1		29		-		62
Cash flow hedges	Interest rate swaps		12,053		-		-		1,543		263
	Foreign currency swaps		1,640		29		15		266		261
	Foreign currency forwards		102		-		-		-		4
	Equity total return swaps		27		-		-		6		-
Total Derivatives in Effective Hedge Accounting Relationships		$	19,452	$	30	$	45	$	2,311	$	1,231
Other Hedging Relationships
	Interest rate swaps	$	128,704	$	9,059	$	5,154	$	9,059	$	5,154
	Interest rate treasury locks		6,323		938		-		938		-
	Interest rate options		3,362		93		-		93		-
	Interest rate futures		3,697		-		-		-		-
	Foreign currency swaps		978		43		30		43		30
	Foreign currency forwards		43		4		-		4		-
	Foreign currency futures		1,775		-		-		-		-
	Equity total return swaps		31		11		-		11		-
	Equity options		3,940		277		-		277		-
	Equity index futures		8,323		-		-		-		-
	Credit default swaps		-		-		-		-		-
Total Derivatives in Other Hedging Relationships		$	157,176	$	10,425	$	5,184	$	10,425	$	5,184
Replication Synthetic Asset Transactions
	Interest rate swaps	$	1,040	$	-	$	-	$	61	$	-
	Credit default swaps		315		3		-		6		-
Total Derivatives in Replication Synthetic Asset Transactions		$	1,355	$	3	$	-	$	67	$	-
Total Derivatives		$	177,983	$	10,458	$	5,229	$	12,803	$	6,415

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

6. Derivatives - (continued)

		December 31, 2013
		Notional Amount		Carrying Value Assets		Carrying Value Liabilities		Fair Value Assets		Fair Value Liabilities
		(in millions)
Effective Hedge Accounting Relationships
Fair value hedges	Interest rate swaps	$	7,847	$	-	$	1	$	416	$	528
	Foreign currency swaps		184		-		49		-		85
Cash flow hedges	Interest rate swaps		14,439		-		-		910		670
	Foreign currency swaps		1,666		51		93		52		121
	Foreign currency forwards		125		-		-		-		1
	Equity total return swaps		29		-		-		15		-
Total Derivatives in Effective Hedge Accounting Relationships		$	24,290	$	51	$	143	$	1,393	$	1,405
Other Hedging Relationships
	Interest rate swaps	$	106,050	$	5,299	$	3,436	$	5,299	$	3,436
	Interest rate treasury locks		5,425		-		385		-		385
	Interest rate options		2,683		21		-		21		-
	Interest rate futures		2,687		-		-		-		-
	Foreign currency swaps		1,274		65		82		65		82
	Foreign currency forwards		11		-		-		-		-
	Foreign currency futures		968		-		-		-		-
	Equity total return swaps		31		21		-		21		-
	Equity options		3,228		248		-		248		-
	Equity index futures		4,465		-		-		-		-
	Credit default swaps		-		-		-		-		-
Total Derivatives in Other Hedging Relationships		$	126,822	$	5,654	$	3,903	$	5,654	$	3,903
Replication Synthetic Asset Transactions
	Interest rate swaps	$	-	$	-	$	-	$	-	$	-
	Credit default swaps		315		4		-		8		-
Total Derivatives in Replication Synthetic Asset Transactions		$	315	$	4	$	-	$	8	$	-
Total Derivatives		$	151,427	$	5,709	$	4,046	$	7,055	$	5,308

Hedging Relationships

The Company generally does not enter into derivative contracts for speculative purposes. In certain circumstances, these hedges also meet the requirements for hedge accounting and are reported in a manner consistent with the hedged asset or liability. For the years ended December 31, 2014, 2013 and 2012, respectively, the Company recorded unrealized gains of $1,215 million, $168 million, and $750 million, respectively, related to derivatives that no longer qualify for hedge accounting.

Fair Value Hedges. The Company uses interest rate swaps to manage its exposure to changes in fair value of fixed-rate financial instruments caused by changes in interest rates. The Company also uses cross currency swaps and currency forwards to manage its exposure to foreign exchange rate fluctuations and interest rate fluctuations.

Cash Flow Hedges. The Company uses interest rate swaps and interest rate treasury locks to hedge the variability in cash flows from variable rate financial instruments and forecasted transactions. The Company also uses cross currency swaps and forward agreements to hedge currency exposure on foreign currency financial instruments and foreign currency denominated

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

6. Derivatives - (continued)

expenses, respectively. Total return swaps are used to hedge the variability in cash flows associated with certain stock-based compensation awards. Inflation swaps are used to reduce inflation risk generated from inflation-indexed liabilities.

In 2012, the Company de-designated $1.6 billion (notional principal) of forward-starting interest rate swaps for the life insurance business. The de-designation of these interest rate swaps resulted in an increase to unassigned surplus of $288 million, net of tax, as of December 31, 2012.

In 2014, the Company concluded that a portion of the hedged transactions for its long-term care business and life insurance business were probable not to occur resulting in the de-designation of $2.7 billion (notional principal) of forward-starting interest rate swaps. The de-designation of these interest rate swaps resulted in an increase to unrealized capital gains (losses) of $445 million, net of tax. In addition as part of our affiliate reinsurance agreement with JHRECO, we were required as part of the net investment income component of the treaty settlement calculation to cede $440 million, net of tax, and therefore the overall impact of this transaction was not material to capital and surplus.

For the year ended December 31, 2014, all of the Company’s hedged forecast transactions qualified as cash flow hedges and no cash flow hedges were discontinued because it was probable that the original forecasted transactions would occur by the end of the originally specified time period documented at inception of the hedging relationship.

The maximum time frame for which variable cash flows are hedged is 32 years.

Derivatives Not Designated as Hedging Instruments in Effective Hedge Accounting or RSAT Relationships. The Company enters into interest rate swap agreements, cancelable interest rate swap agreements, and interest rate futures contracts to manage interest rate risk, total return swap agreements to manage equity risk, and CDS to manage credit risk. The Company also uses interest rate treasury locks and interest rate floor agreements to manage exposure to interest rates without designating the derivatives as hedging instruments. Interest rate floor agreements hedge the interest rate risk associated with minimum interest rate guarantees in certain life insurance and annuity businesses.

The Company offers certain variable annuity products with a guaranteed minimum withdrawal benefit (“GMWB”) and guaranteed minimum death benefit (“GMDB”). These guarantees are effectively an embedded option on the basket of mutual funds offered to contract holders. The Company manages a hedging program to reduce its exposure to certain contracts with the GMWB and GMDB guarantees. This dynamic hedging program uses interest rate swap agreements, equity index futures (including but not limited to the Dow Jones Industrial, Standard & Poor’s 500, Russell 2000, and Dow Jones Euro Stoxx 50 indices), equity index options, and U.S. Treasury futures to match the sensitivities of the GMWB and GMDB liabilities to the market risk factors.

The Company also has a macro equity risk hedging program using equity and currency futures, as well as equity index options. This program is designed to reduce the Company’s overall exposure to public equity markets arising from several sources including, but not limited to, variable annuity guarantees not dynamically hedged, separate account fees not associated with guarantees, and Company equity holdings.

The Company uses foreign currency swaps and foreign currency forwards to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies.

F-31

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

6. Derivatives - (continued)

For the years ended December 31, 2014, 2013 and 2012 net gains and losses related to derivatives in other hedging relationships were recognized by the Company, and the components were recorded in net unrealized and net realized gains (losses) as follows:

	Years ended December 31,
	2014			2013		2012
	(in millions)
Other Hedging Relationships
Net unrealized capital gain (loss):
Interest rate swaps	$	2,043		$	(2,530)	$	512
Interest rate treasury locks		1,323			(385)		-
Interest rate options		67			(46)		(8)
Foreign currency swaps		(5	)		(9)		(12)
Foreign currency forwards		4			(1)		2
Equity total return swaps		-			-		-
Equity options		(23	)		(39)		-
Credit default swaps		-			-		1
Total net unrealized capital gain (loss)	$	3,409		$	(3,010)	$	495
Net realized capital gain (loss):
Interest rate swaps	$	(178	)	$	164	$	157
Interest rate treasury locks		157			-		-
Interest rate options		-			-		-
Interest rate futures		(141	)		78		(48)
Foreign currency swaps		18			(10)		(8)
Foreign currency forwards		1			5		(12)
Foreign currency futures		165			74		-
Equity total return swaps		24			5		(4)
Equity options		5			3		-
Equity index futures		(692	)		(1,892)		(1,474)
Credit default swaps		-			-		(2)
Commodity futures		-			-		-
Total net realized capital gain (loss)	$	(641	)	$	(1,573)	$	(1,391)
Total gain (loss) from derivatives in other hedging relationships	$	2,768		$	(4,583)	$	(896)

The Company also deferred net realized gains (losses) of ($192) million, $146 million, and $156 million (including ($174) million of losses, $148 million, and $157 million of gains for derivatives in other hedging relationships, respectively) related to interest rates for the years ended December 31, 2014, 2013 and 2012, respectively. Deferred net realized gains and losses are reported in IMR and amortized over the remaining period to expiration date.

Credit Default Swaps

The Company replicates exposure to specific issuers by selling credit protection via CDS in order to complement its cash bond investing. The Company does not employ leverage in its CDS program and therefore, does not write CDS protection in excess of its government bond holdings.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

6. Derivatives - (continued)

The following table provides details of the CDS protection sold by type of contract and external agency rating for the underlying reference security, as of December 31, 2014 and 2013, respectively.

	December 31, 2014						December 31, 2013
	Notional Amount2		Fair Value		Weighted average maturity (in years)3		Notional Amount2		Fair Value		Weighted average maturity (in years)3
	(in millions)
Single name CDS1
Corporate debt
AAA	$	35	$	1		2	$	35	$	1		3
AA		95		2		2		95		3		3
A		185		3		2		185		4		3
BBB		-		-				-		-		-
Total CDS protection sold	$	315	$	6			$	315	$	8

¹  The rating agency designations are based on S&P where available followed by Moody’s, Dominion Bond Rating Services (DBRS), and Fitch. If no rating is available from a rating agency, then an internally developed rating is used.

²  Notional amount represents the maximum future payments the Company would have to pay its counterparties assuming a default of the underlying credit and zero recovery on the underlying issuer obligation.

³  The weighted average maturity of the CDS is weighted based on notional amounts.

The Company holds no purchased credit protection at December 31, 2014 and 2013. The average credit rating of the counterparties guaranteeing the underlying credits is A+ and the weighted average maturity is 3 years.

Credit Risk

The Company’s exposure to loss on derivatives is limited to the amount of any net gains that may have accrued with a particular counterparty. Gross derivative counterparty exposure is measured as the total fair value (including accrued interest) of all outstanding contracts in a gain position excluding any offsetting contracts in negative positions and the impact of collateral on hand. The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to the derivative financial instruments. The current credit exposure of the Company’s derivative contracts is limited to the fair value in excess of the collateral held at the reporting date.

The Company manages its credit risk by entering into transactions with creditworthy counterparties, obtaining collateral where appropriate, and entering into master netting agreements that provide for a netting of payments and receipts with a single counterparty. The Company enters into credit support annexes with its OTC derivative dealers in order to manage its credit exposure to those counterparties. As part of the terms and conditions of those agreements, the pledging and accepting of collateral in connection with the Company’s derivative usage is required. As of December 31, 2014 and 2013, the Company accepted collateral consisting of cash of $2,939 million and $640 million, and various securities with a fair value of $3,895 million and $2,155 million, respectively, which is held in separate custodial accounts. In addition, the Company has pledged collateral to support both the OTC derivative instruments, exchange traded futures and cleared interest rate swap transactions. For further details regarding pledged collateral see the Investments Note.

Under U.S. regulations, certain interest rate swap agreements and credit default swap agreements are required to be cleared through central clearing houses. These transactions are contractual agreements that require initial and variation margin collateral postings and are settled on a daily basis through a clearing house. As such, they reduce the credit risk exposure in the event of default by a counterparty.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

6. Derivatives - (continued)

Transactions with Affiliates

The Company has entered into two currency swap agreements with JHFC which are recorded at fair value. JHFC utilizes the currency swaps to hedge currency exposure on foreign currency financial instruments. The Company has also entered into two currency agreements with external counterparties which offset the currency swap agreements with JHFC. As of December 31, 2014 and 2013, the currency swap agreements with JHFC and the external counterparties had offsetting fair values of $238 million and $19 million, respectively.

7. Fair Value

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy:

• Financial Instruments Measured at Fair Value and Reported in the Balance Sheet after Initial Recognition — This category includes assets and liabilities measured at fair value. Financial instruments in this category include bonds and preferred stocks carried at the lower of cost or fair value due to their SVO quality rating, common stocks, derivatives, and separate account assets.

• Other Financial Instruments Not Reported at Fair Value After Initial Recognition — This category includes assets and liabilities which do not require the additional disclosures as follows:

Bonds — For bonds, including corporate debt, U.S. Treasury, commercial and residential mortgage-backed securities, asset-backed securities, collateralized debt obligations, issuances by foreign governments, and obligations of state and political subdivisions, fair values are based on quoted market prices when available. When market prices are not available, fair value is generally estimated using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality (matrix pricing). The significant inputs into these models include, but are not limited to, yield curves, credit risks and spreads, measures of volatility, and prepayment speeds.

Mortgage Loans on Real Estate — The fair value of unimpaired mortgage loans is estimated using discounted cash flows and takes into account the contractual maturities and discount rates, which were based on current market rates for similar maturity ranges and adjusted for risk due to the property type. The fair value of impaired mortgage loans is based on the net of the collateral less estimated cost to obtain and sell.

Cash, Cash Equivalents and Short-Term Investments — The carrying values for cash, cash equivalents, and short-term investments approximate their fair value due to the short-term maturities of these instruments.

Policy Loans — These loans are carried at unpaid principal balances, which approximate their fair values.

Policy Reserves — Policy reserves consists of guaranteed investment contracts. The fair values associated with these financial instruments are determined by projecting cash flows and discounting the cash flows at current corporate rates, defined as U.S. Treasury rates plus MFC’s corporate spread. The fair value attributable to credit risk represents the present value of the spread.

Policyholders’ and Beneficiaries Funds — Includes term certain contracts, funding agreements, supplementary contracts without life contingencies and those balances that can be withdrawn by the policyholder at any time without prior notice or penalty. The fair values associated with the term certain contracts, funding agreements and supplementary contracts without life contingencies are determined by projecting cash flows and discounting the cash flows at current corporate rates, defined as U.S. Treasury rates plus MFC’s corporate spread. The fair value attributable to credit risk represents the present value of the spread. For those balances that can be withdrawn by the policyholder at any time without prior notice or penalty, the fair value is the amount estimated to be payable to the policyholder as of the reporting date, which is generally the carrying value.

Consumer Notes — The fair value of consumer notes is determined by projecting cash flows and discounting the cash flows at current corporate rates, defined as U.S. Treasury rates plus MFC’s corporate spread. The fair value attributable to credit risk represents the present value of the spread.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

7. Fair Value - (continued)

Financial Instruments Measured at Fair Value and Reported in the Balance Sheet after Initial Recognition

Valuation Hierarchy

The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:

• Level 1 — Fair value measurements that reflect unadjusted, quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date. Active markets are defined as having the following characteristics for the measured asset/liability; (i) many transactions, (ii) current prices, (iii) price quotes not varying substantially among market makers, (iv) narrow bid/ask spreads, and (v) most information is publicly available. Valuations are based on quoted prices reflecting market transactions involving assets or liabilities identical to those being measured. Level 1 assets primarily include exchange traded equity securities and certain separate account assets.

• Level 2 — Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in inactive markets, inputs that are observable that are not prices (such as interest rates, credit risks, etc.), and inputs that are derived from or corroborated by observable market data. Certain of the Company’s separate account assets and derivative assets and liabilities are included within Level 2. A description of valuation techniques used to measure the fair value of derivatives is described below.

• Level 3 — Fair value measurements using significant nonmarket observable inputs. These include valuations for assets and liabilities that are derived using data, some or all of which is not market observable data, including assumptions about risk. Level 3 securities include impaired bonds and less liquid securities, such as structured asset-backed securities, commercial mortgage-backed securities, and other securities that have little or no price transparency. The valuation techniques used to measure the fair value of derivative assets and separate account investments in timber and agriculture are included in Level 3 as described below.

Determination of Fair Value

The fair value of an asset is the amount at which that asset could be bought or sold in a current transaction between willing parties that is other than in a forced or liquidation sale. The fair value of a liability is the amount at which that liability could be incurred or settled in a current transaction between willing parties that is other than in a forced or liquidation sale.

Fair values are based on quoted market prices when available. When market prices are not available, fair value is generally estimated using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality (matrix pricing). In instances where there is little or no market activity for the same or similar instruments, the Company estimates fair value using methods, models and assumptions that management believes market participants would use to determine a current transaction price. These valuation techniques involve some level of management estimation and judgment which becomes significant with increasingly complex instruments or pricing models. Where appropriate, adjustments are included to reflect the risk inherent in a particular methodology, model or input used.

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy:

Bonds

Refer to the previous page for the determination of fair value of bonds. Generally, impaired bonds with a NAIC designation rating of 6 whose cost is greater than its fair value are reported at fair value and are classified within Level 3.

Preferred Stocks

Preferred stocks with active markets are classified within Level 1, as fair values are based on quoted market prices. Preferred stocks not traded in active markets are classified within Level 3.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

7. Fair Value - (continued)

Common Stocks

Common stocks with active markets are classified within Level 1, as fair values are based on quoted market prices. Common stocks not traded in active markets are classified within Level 3.

Derivatives

The fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives or through the use of pricing models for OTC derivatives. The pricing models used are based on market standard valuation methodologies, and the inputs to these models are consistent with what a market participant would use when pricing the instruments. Derivative valuations can be affected by changes in interest rates, currency exchange rates, financial indices, credit spreads, default risk (including the counterparties to the contract), and volatility. The Company’s derivatives are generally classified within Level 2 given the significant inputs to the pricing models for most OTC derivatives are observable or can be corroborated by observable market data. Inputs that are observable generally include interest rates, foreign currency exchange rates, and interest rate curves; however, certain OTC derivatives may rely on inputs that are significant to the fair value, but are unobservable in the market or cannot be derived principally from or corroborated by observable market data and would be classified within Level 3. Inputs that are unobservable generally include broker quotes, volatilities, and inputs that are outside of the observable portion of the interest rate curve or other relevant market measures. These unobservable inputs may involve significant management judgment or estimation.

Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and consistent with what market participants would use when pricing such instruments. The credit risk of both the counterparty and the Company are considered in determining the fair value for all OTC derivatives after taking into account the effects of netting agreements and collateral arrangements.

Separate Account Assets and Liabilities

For separate accounts structured as a non-unitized fund, the fair value of separate account assets is based on the fair value of the underlying assets owned by the separate account. For separate accounts structured as a unitized fund, the fair value of the separate account assets is based on the fair value of the underlying funds owned by the separate account. Assets owned by the Company’s separate accounts primarily include: investments in mutual funds, bonds, common stock, short-term investments, real estate, and cash and cash equivalents. Investment performance related to separate account assets is fully offset by corresponding amounts credited to contract holders whose interest in the separate account assets is recorded by the Company as separate account liabilities. Separate account liabilities are set equal to the fair value of separate account assets.

The fair value of fund investments is based upon quoted market prices or reported net asset value (“NAV”). Fund investments that are traded in an active market and have a NAV that the Company can access at the measurement date are classified within Level 1. Level 2 assets consist primarily of bonds which are valued using matrix pricing with independent pricing data.

Separate account assets classified as Level 3 consist primarily of fixed maturity and equity investments in private companies, which own timber and agriculture and carry them at fair value. The values of the timber and agriculture investments are estimated using generally accepted valuation techniques. A comprehensive appraisal is performed shortly after initial purchase and at two or three-year intervals thereafter. Appraisal updates are conducted according to client contracts, generally at one-year or six-month intervals. In the quarters in which an investment is not independently appraised or its valuation updated, the market value is reviewed by management. The valuation of an investment is adjusted only if there has been a significant change in economic circumstances related to the investment since acquisition or the most recent independent valuation and upon the independent appraiser’s review and concurrence with management. Further, these valuations are prepared giving consideration to the income, cost, and sales comparison approaches of estimating asset value. The significant unobservable inputs used in the fair value measurement of the Company’s timberland investments are harvest volumes, timber prices, operating costs and discount rates. Significant changes to any one of these inputs in isolation could result in a significant change to fair value measurement. Holding other factors constant, an increase to either harvest volumes or timber prices would tend to increase the fair value of a timberland investment, while an increase in operating costs or discount rate would have the opposite effect. These investments are classified as Level 3 by the companies owning them, and therefore the equity investments in these companies are considered to be Level 3 by the Company.

F-36

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

7. Fair Value - (continued)

The following table presents the Company’s assets and liabilities that are measured and reported at fair value in the Balance Sheets after initial recognition by fair value hierarchy level:

	December 31, 2014
	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3
	(in millions)
Assets:
Bond with NAIC 6 rating:
Industrial and misc	$	-	$	-	$	-	$	-	$	-
Loan-backed and structured securities		39		39		-		18		21
Total bonds with NAIC 6 rating		39		39		-		18		21
Preferred stocks:
Industrial and misc		-		-		-		-		-
Total preferred stocks		-		-		-		-		-
Common stocks:
Industrial and misc		477		477		379		-		98
Total common stocks		477		477		379		-		98
Derivatives:
Interest rate swaps		9,059		9,059		-		9,058		1
Interest rate treasury locks		938		938		-		168		770
Interest rate options		93		93		-		-		93
Interest rate futures		-		-		-		-		-
Foreign currency swaps		43		43		-		43		-
Foreign currency forwards		4		4		-		4		-
Foreign currency futures		-		-		-		-		-
Equity total return swaps		11		11		-		-		11
Equity options		277		277		-		61		216
Equity index futures		-		-		-		-		-
Credit default swaps		-		-		-		-		-
Total derivatives		10,425		10,425		-		9,334		1,091
Assets held in separate accounts		140,164		140,164		134,070		3,756		2,338
Total assets	$	151,105	$	151,105	$	134,449	$	13,108	$	3,548
Liabilities:
Derivatives:
Interest rate swaps	$	5,154	$	5,154	$	-	$	5,113	$	41
Interest rate treasury locks		-		-		-		-		-
Interest rate options		-		-		-		-		-
Interest rate futures		-		-		-		-		-
Foreign currency swaps		30		30		-		30		-
Foreign currency forwards		-		-		-		-		-
Foreign currency futures		-		-		-		-		-
Equity total return swaps		-		-		-		-		-
Equity options		-		-		-		-		-
Equity index futures		-		-		-		-		-
Credit default swaps		-		-		-		-		-
Total derivatives		5,184		5,184		-		5,143		41
Liabilities held in separate accounts		140,164		140,164		134,070		3,756		2,338
Total liabilities	$	145,348	$	145,348	$	134,070	$	8,899	$	2,379

F-37

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

7. Fair Value - (continued)

	December 31, 2013
	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3
	(in millions)
Assets:
Bond with NAIC 6 rating:
Industrial and misc	$	26	$	26	$	-	$	-	$	26
Loan-backed and structured securities		34		34		-		-		34
Total bonds with NAIC 6 rating		60		60		-		-		60
Preferred stocks:
Industrial and misc		-		-		-		-		-
Total preferred stocks		-		-		-		-		-
Common stocks:
Industrial and misc		343		343		257		-		86
Total common stocks		343		343		257		-		86
Derivatives:
Interest rate swaps		5,299		5,299		-		5,292		7
Interest rate treasury locks		-		-		-		-		-
Interest rate options		21		21		-		-		21
Interest rate futures		-		-		-		-		-
Foreign currency swaps		65		65		-		65		-
Foreign currency forwards		-		-		-		-		-
Foreign currency futures		-		-		-		-		-
Equity total return swaps		21		21		-		-		21
Equity options		248		248		-		26		222
Equity index futures		-		-		-		-		-
Credit default swaps		-		-		-		-		-
Total derivatives		5,654		5,654		-		5,383		271
Assets held in separate accounts		142,766		142,766		136,707		3,838		2,221
Total assets	$	148,823	$	148,823	$	136,964	$	9,221	$	2,638
Liabilities:
Derivatives:
Interest rate swaps	$	3,436	$	3,436	$	-	$	3,436	$	-
Interest rate treasury locks		385		385		-		-		385
Interest rate options		-		-		-		-		-
Interest rate futures		-		-		-		-		-
Foreign currency swaps		82		82		-		82		-
Foreign currency forwards		-		-		-		-		-
Foreign currency futures		-		-		-		-		-
Equity total return swaps		-		-		-		-		-
Equity options		-		-		-		-		-
Equity index futures		-		-		-		-		-
Credit default swaps		-		-		-		-		-
Total derivatives		3,903		3,903		-		3,518		385
Liabilities held in separate accounts		142,766		142,766		136,707		3,838		2,221
Total liabilities	$	146,669	$	146,669	$	136,707	$	7,356	$	2,606

F-38

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

7. Fair Value - (continued)

The table below presents the carrying amounts and fair value by fair value hierarchy level for certain assets and liabilities that are not reported at fair value in the Balance Sheets:

	December 31, 2014
	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3
	(in millions)
Assets:
Bonds (1)	$	49,187	$	52,644	$	-	$	48,392	$	4,252
Preferred stocks		26		46		-		-		46
Mortgage loans on real estate		11,519		12,785		-		-		12,785
Cash, cash equivalents and short term investments		7,702		7,702		4,407		3,295		-
Policy loans		5,039		5,039		-		5,039		-
Derivatives in effective hedge accounting and RSAT relationships		33		2,378		-		2,372		6
Total assets	$	73,506	$	80,594	$	4,407	$	59,098	$	17,089
Liabilities:
Consumer notes	$	411	$	454	$	-	$	-	$	454
Borrowed money		290		290		-		290		-
Policy reserves		1,661		1,648		-		-		1,648
Policyholders’ and beneficiaries funds		3,901		4,352		-		1,457		2,895
Derivatives in effective hedge accounting and RSAT relationships		45		1,231		-		964		267
Total liabilities	$	6,308	$	7,975	$	-	$	2,711	$	5,264
	December 31, 2013
	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3
	(in millions)
Assets:
Bonds (1)	$	47,888	$	47,682	$	-	$	44,154	$	3,528
Preferred stocks		33		50		-		-		50
Mortgage loans on real estate		12,221		13,337		-		-		13,337
Cash, cash equivalents and short term investments		4,749		4,749		1,895		2,854		-
Policy loans		5,189		5,189		-		5,189		-
Derivatives in effective hedge accounting and RSAT relationships		55		1,401		-		1,386		15
Total assets	$	70,135	$	72,408	$	1,895	$	53,583	$	16,930
Liabilities:
Consumer notes	$	644	$	685	$	-	$	-	$	685
Borrowed money		290		290		-		290		-
Policy reserves		1,740		1,739		-		-		1,739
Policyholders’ and beneficiaries funds		3,997		4,227		-		1,263		2,964
Derivatives in effective hedge accounting and RSAT relationships		143		1,405		-		1,386		19
Total liabilities	$	6,814	$	8,346	$	-	$	2,939	$	5,407

(1) Bonds are carried at amortized cost unless they have NAIC designation rating of 6. Fair value of bonds exclude leveraged leases of $ 2,268 million and $ 2,285 million at December 31, 2014 and 2013, respectively. The Company calculates the carrying value by accruing income at its expected internal rate of return.

F-39

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

7. Fair Value - (continued)

Transfers of Level 1 and Level 2 Assets and Liabilities

The Company’s policy is to record transfers of assets and liabilities between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are no longer transacted with sufficient frequency and volume in an active market. During the years ended December 31, 2014 and 2013, the Company did not have any transfers from Level 1 to Level 2. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. The Company did not transfer assets from Level 2 to Level 1 during the years ended December 31, 2014 and 2013.

F-40

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

7. Fair Value - (continued)

Level 3 Financial Instruments

The changes in Level 3 financial instruments measured and reported at fair value for the years ended December 31, 2014, 2013 and 2012, are summarized as follows:

				Net realized/unrealized gains (losses) included in:																Transfers
	Balance at January 1, 2014			Net income (1)		Surplus			Amounts credited to separate account liabilities (2)		Purchases		Issuances		Sales			Settlements		Into Level 3 (3)		Out of Level 3 (3)			Balance at December 31, 2014
	(in millions)
Bonds with NAIC 6 rating:
Impaired corporate bonds	$	26		$	-	$	(3	)	$	-	$	-	$	-	$	-		$	-	$	-	$	(23	)	$	-
Impaired mortgage-backed and asset-backed securities		34			-		1			-		-		-		-			-		11		(25	)		21
Total bonds with NAIC 6 rating		60			-		(2	)		-		-		-		-			-		11		(48	)		21
Preferred stocks:
Industrial and misc		-			-		-			-		-		-		-			-		-		-			-
Total preferred stocks		-			-		-			-		-		-		-			-		-		-			-
Common stocks:
Industrial and misc		86			-		(1	)		-		14		-		(1	)		-		-		-			98
Total common stocks		86			-		(1	)		-		14		-		(1	)		-		-		-			98
Net derivatives		(114	)		26		1,088			-		72		-		(25	)		-		41		(38	)		1,050
Separate account assets/liabilities		2,221			162		-			-		68		-		(270	)		-		163		(6	)		2,338
Total	$	2,253		$	188	$	1,085		$	-	$	154	$	-	$	(296	)	$	-	$	215	$	(92	)	$	3,507

F-41

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

7. Fair Value - (continued)

			Net realized/ unrealized gains (losses) included in:																		Transfers
	Balance at January 1, 2013		Net income (1)			Surplus			Amounts credited to separate account liabilities (2)		Purchases		Issuances		Sales			Settlements			Into Level 3 (3)		Out of Level 3 (3)			Balance at December 31, 2013
	(in millions)
Bonds with NAIC 6 rating:
Impaired corporate bonds	$	12	$	(2	)	$	-		$	-	$	-	$	-	$	-		$	-		$	23	$	(7	)	$	26
Impaired mortgage-backed and asset-backed securities		53		(37	)		39			-		-		-		(23	)		(5	)		16		(9	)		34
Total bonds with NAIC 6 rating		65		(39	)		39			-		-		-		(23	)		(5	)		39		(16	)		60
Preferred stocks:
Industrial and misc		4		-			-			-		-		-		-			-			-		(4	)		-
Total preferred stocks		4		-			-			-		-		-		-			-			-		(4	)		-
Common stocks:
Industrial and misc		44		-			(2	)		-		58		-		(18	)		-			4		-			86
Total common stocks		44		-			(2	)		-		58		-		(18	)		-			4		-			86
Net derivatives		58		6			(459	)		-		287		-		(7	)		-			-		1			(114	)
Separate account assets/liabilities		2,223		160			-			-		31		-		(195	)		-			3		(1	)		2,221
Total	$	2,394	$	127		$	(422	)	$	-	$	376	$	-	$	(243	)	$	(5	)	$	46	$	(20	)	$	2,253

F-42

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

7. Fair Value - (continued)

			Net realized/ unrealized gains (losses) included in:																		Transfers
	Balance at January 1, 2012		Net income (1)			Surplus			Amounts credited to separate account liabilities (2)		Purchases		Issuances		Sales			Settlements			Into Level 3 (3)		Out of Level 3 (3)			Balance at December 31, 2012
	(in millions)
Bonds with NAIC 6 rating:
Impaired corporate bonds	$	44	$	(4	)	$	4		$	-	$	-	$	-	$	-		$	(44	)	$	12	$	-		$	12
Impaired mortgage-backed and asset-backed securities		34		(44	)		45			-		-		-		(6	)		-			47		(23	)		53
Total bonds with NAIC 6 rating		78		(48	)		49			-		-		-		(6	)		(44	)		59		(23	)		65
Preferred stocks:
Industrial and misc		4		-			-			-		-		-		(1	)		-			1		-			4
Total preferred stocks		4		-			-			-		-		-		(1	)		-			1		-			4
Common stocks:
Industrial and misc		71		55			(28	)		-		-		-		(54	)		-			-		-			44
Total common stocks		71		55			(28	)		-		-		-		(54	)		-			-		-			44
Net derivatives		21		(1	)		(8	)		-		44		-		-			-			-		2			58
Separate account assets/liabilities		2,152		100			-			-		112		-		(141	)		-			-		-			2,223
Total	$	2,326	$	106		$	13		$	-	$	156	$	-	$	(202	)	$	(44	)	$	60	$	(21	)	$	2,394

(1) This amount is included in net realized capital gains (losses) on the Statements of Operations.

(2) Changes in the fair value of separate account assets are credited directly to separate account liabilities in accordance with NAIC SAP and are not reflected in income.

(3) For financial instruments that are transferred into and/or out of Level 3, the Company uses the fair value of the instruments at the beginning of the reporting period.

F-43

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

7. Fair Value - (continued)

The transfers into Level 3 primarily result from securities that were impaired during the year or securities where a lack of observable market data (versus the previous year) resulted in reclassifying instruments into Level 3. The transfers out of Level 3 primarily result from observable market data becoming available for that instrument, thus eliminating the need to extrapolate market data beyond observable points. Additionally, securities carried at fair value at the beginning of the period but carried at amortized cost at the end of the period due to rating change or change in fair value relative to amortized cost, are included in transfers out of Level 3. Conversely, any securities carried at amortized cost at the beginning of the period and carried at fair value at the end of the year due to SVO rating change or change in fair value relative to amortized cost, are included into transfers into Level 3.

8. Reinsurance

Certain premiums and benefits are assumed from or ceded to affiliate and other insurance companies under various reinsurance agreements. The Company entered into these reinsurance agreements to shift underlying risk on certain of its products, and to improve cash flow and statutory capital. The ceded reinsurance agreements provide the Company with increased capacity to write larger risks and maintain its exposure to loss within its capital resources.

Total reinsurance amounts included in the Company’s accompanying statutory-basis financial statements were as follows:

	Years ended December 31,
	2014			2013			2012
	(in millions)
Premiums earned
Direct	$	19,525		$	20,311		$	21,716
Assumed		792			1,062			942
Ceded		(7,579	)		(8,491	)		(15,104	)
Net	$	12,738		$	12,882		$	7,554
Benefits to policyholders ceded	$	18,500		$	17,988		$	18,235

Reserve amounts ceded to reinsurers not authorized in the State of Michigan are mostly covered by letters of credit or trust agreements. Amounts payable or recoverable for reinsurance on policy and contract liabilities are not subject to periodic or maximum limits. At December 31, 2014, any material recoveries were secured by letters of credit or assets placed in trust by the assuming company.

Neither the Company nor any of its related parties control, directly or indirectly, any external reinsurers with whom the Company conducts business. No policies issued by the Company have been reinsured with a foreign company, which is controlled, either directly or indirectly, by a party not primarily engaged in the business of insurance. The Company does not have any reinsurance agreements in effect under which the reinsurer may unilaterally cancel the agreement. At December 31, 2014, there was no reinsurance agreements in effect such that the amount of losses paid or accrued exceed the total direct premium collected.

As of December 31, 2014, if all reinsurance agreements were cancelled the estimated aggregate reduction in unassigned surplus is $898 million.

F-44

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

8. Reinsurance - (continued)

Affiliated Reinsurance

The table and commentary below consist of the impact of the reinsurance agreements with JHNY:

	Years ended December 31,
	2014		2013		2012
	(in millions)
Premiums ceded, net	$	192	$	216	$	208
Benefits ceded, net		394		483		428
Funds held by or deposited with reinsured companies		1,952		1,978		2,018
Other reinsurance receivable		86		124		109
Other amounts payable on reinsurance		10		15		5

On January 1, 2010, the assets supporting the policyholders who reside in the state of New York (“NY business”) were transferred to JHNY from the Company. The transfer included participating traditional life insurance, universal life insurance, fixed deferred and immediate annuities, participating pension contracts, and variable annuities. The NY business was transferred using assumption reinsurance, modified coinsurance and coinsurance with cut-through provisions.

The NY business related to participating traditional life insurance policies was transferred from JHUSA to JHNY under a coinsurance agreement and was immediately retroceded back to JHUSA using a coinsurance funds withheld agreement. JHNY retained the invested assets supporting this block of business. The NY business related to variable universal life was reinsured through coinsurance and modified coinsurance. The NY business related to universal life was transferred from the Company to JHNY under coinsurance agreements.

The NY business related to a majority of the fixed deferred annuity business was transferred from the Company to JHNY under an assumption reinsurance agreement. The NY business related to variable annuities and some participating pension contracts where assets were held in separate accounts were reinsured through modified coinsurance. The NY business related to fixed deferred and immediate annuities and participating pension contracts was transferred from the Company to JHNY under a coinsurance agreement.

The table and commentary below consist of the impact of the reinsurance agreements with an affiliate, JHRECO:

	Years ended December 31,
	2014		2013		2012
	(in millions)
Premiums ceded	$	546	$	570	$	573
Benefits ceded		759		730		691
Other amounts payable on reinsurance		58		45		30
Funds withheld from unauthorized reinsurers		7,409		5,425		5,600

The Company reinsures certain portions of its long-term care insurance business with JHRECO through coinsurance funds withheld transactions. Under reinsurance treaties covering life insurance business, the Company cedes to JHRECO on a coinsurance funds withheld basis to the death benefits from the no-lapse guarantee on a small block of policies. The Company also reinsures a portion of the risk related to certain annuity policies and during 2013 a small number of these policies were recaptured for administration purposes. This recapture did not have a material impact on the Company’s results of operations. The reinsurance agreement is written on a modified coinsurance basis where the assets supporting the reinsured policies remain invested with the Company.

The Company’s total settlement amount was $489 million, $55 million, and $82 million for the years ended December 31, 2014, 2013 and 2012, respectively, and the settlement calculation consisted primarily of ceded investment income, ceded benefit payments and ceded statutory reserves.

F-45

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

8. Reinsurance - (continued)

The table and commentary below consist of the impact of the reinsurance agreements with an affiliate, Manulife Reinsurance (Bermuda) Limited (“MRBL”):

	Years ended December 31,
	2014		2013		2012
	(in millions)
Premiums ceded	$	4,599	$	5,128	$	6,218
Benefits ceded		14,303		13,966		13,649
Other reinsurance receivable		40		398		44
Other amounts payable on reinsurance		837		55		112
Funds withheld from unauthorized reinsurers		1,251		1,256		1,507

The Company reinsures 87% of certain group annuity contracts in-force with MRBL. The reinsurance agreement covers all contracts, excluding the guaranteed benefit rider. As the underlying contracts being reinsured are considered investment contracts, the agreement does not meet the criteria for reinsurance accounting and was classified as a financial instrument.

The Company reinsures 90% of a significant block of variable annuity contracts in-force with MRBL. All substantial risks, including all guaranteed benefits, related to certain specified policies not already reinsured to third parties, are reinsured under the agreement. The base contracts are reinsured on a modified coinsurance basis, while the guaranteed benefit reinsurance coverage is apportioned in accordance with the reinsurance agreement provisions between modified coinsurance and coinsurance funds withheld. The assets supporting the reinsured policies remain invested with the Company. Since the inception of the treaty in 2008, several amendments have been enacted to refine certain aspects of the treaty. The net MRBL reinsurance recoverable includes the impact of ongoing reinsurance cash flows and is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies with changes to ceded reserves and cost of reinsurance recognized as a component of benefits to policyholders on the Statements of Operations. The Company paid / (received) from MRBL $1,907 million, ($1,174) million, and $259 million for the years ended December 31, 2014, 2013 and 2012, respectively, and the settlement consisted primarily of ceded investment income related to non-qualifying hedging strategies and changes in the modified coinsurance and coinsurance reserves.

The Company reinsures 90% of the non-reinsured risk of the JHLICO closed block. The reinsurance agreement is written on a modified coinsurance basis where the related financial assets remain invested with the Company. As the reinsurance agreement does not subject the reinsurer to the reasonable possibility of significant loss, it was classified as structured reinsurance and given deposit-type accounting treatment with only the reinsurance risk fee being reported in other operating costs and expenses in the Statements of Operations.

The table and commentary below consist of the impact of the reinsurance agreements with an affiliate, Manulife Reinsurance Limited (“MRL”):

	Years ended December 31,
	2014		2013		2012
	(in millions)
Premiums ceded	$	338	$	536	$	618
Benefits ceded		298		338		362
Other reinsurance receivable		82		18		31
Other amounts payable on reinsurance		-		-		19
Funds withheld from unauthorized reinsurers		213		-		-

The Company entered into a coinsurance/modified coinsurance agreement with an affiliate, Manulife Reinsurance Limited (“MRL”), to reinsure 90% of all risks not already reinsured to third parties on various universal life contracts effective December 15, 2000. Subsequent amendments added further UL and some term contracts. The Company amended the

F-46

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

8. Reinsurance - (continued)

agreement during 2014 to simplify treaty administration and to modify the structure of the treaty to a modified coinsurance funds withheld structure.

On July 31, 2013, MFC signed an agreement to sell its life insurance business in Taiwan to CTBC Life Insurance Company (CTBC Life). Under the agreement, CTBC Life will assume all of the life insurance business related obligations. In connection with this transaction, on December 31, 2013, the Company paid $111 million in fees to an affiliate, Manufacturers Life Reinsurance Limited for the recapture of certain traditional life business reserves and net liabilities of $42 million, which resulted in a pre-tax loss of $69 million.

Non-Affiliated Reinsurance

The Company entered into a coinsurance agreement with Reinsurance Group of America (“RGA”) to reinsure 90% of its fixed deferred annuity business with an effective date of April 1, 2012. The transaction was structured such that the Company transferred the actuarial liabilities and related invested assets which included $387 million in cash and $5 billion in bonds and mortgage loans. Under the terms of the agreement, the Company will maintain responsibility for servicing of the policies and managing some of the assets. The transaction resulted in a charge to pre-tax income of $257 million, which included a ceding commission paid of $218 million and a decrease of $123 million to statutory surplus.

On September 30, 2012, the Company entered into a transaction with Commonwealth Annuity and Life Insurance Company (“CWA”), in which CWA recaptured a block of universal life policies, with an effective date of July 1, 2012. The transaction included the transfer to CWA of $378 million in actuarial liabilities and $309 million of cash and policy loans. The transaction resulted in a gain to pre-tax income of $60 million which included a ceding commission received of $57 million and an increase of $33 million to statutory surplus.

On July 1, 2011, JHUSA entered into a sale of its Life Retrocession business by way of a coinsurance treaty with Pacific Life Insurance Company that resulted in the recognition of approximately $432 million deferred gain (net of deferred taxes) recorded to surplus. During 2013, JHUSA novated 95% of the underlying reinsurance agreements to Pacific Life Insurance Company. Based on this novation, the Company recorded a gain of $352 million to the Statements of Operations (pre-tax). In 2014, the Company completed the novation of the remaining 5% of the agreements and recorded $20 million to the Statements of Operations (pre-tax).

F-47

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

9. Federal Income Taxes

The components of the net deferred tax asset/(liability) are as follows:

	December 31, 2014
	(1)			(2)			(3)
							(Col 1 + 2)
	Ordinary			Capital			Total
	(in millions)
(a) Gross deferred tax assets	$	4,300		$	479		$	4,779
(b) Statutory valuation allowance adjustments		50			-			50
(c) Adjusted gross deferred tax assets (a — b)		4,250			479			4,729
(d) Deferred tax assets nonadmitted		-			-			-
(e) Subtotal net admitted deferred tax asset (c — d)		4,250			479			4,729
(f) Deferred tax liabilities		4,871			314			5,185
(g) Net admitted deferred tax asset / (net deferred tax liability) (e — f)	$	(621	)	$	165		$	(456	)
	December 31, 2013
	(4)			(5)			(6)
							(Col 4 + 5)
	Ordinary			Capital			Total
	(in millions)
(a) Gross deferred tax assets	$	3,963		$	606		$	4,569
(b) Statutory valuation allowance adjustments		50			-			50
(c) Adjusted gross deferred tax assets (a — b)		3,913			606			4,519
(d) Deferred tax assets nonadmitted		-			-			-
(e) Subtotal net admitted deferred tax asset (c — d)		3,913			606			4,519
(f) Deferred tax liabilities		4,311			412			4,723
(g) Net admitted deferred tax asset / (net deferred tax liability) (e — f)	$	(398	)	$	194		$	(204	)
	Change
	(7)			(8)			(9)
	(Col 1 - 4)			(Col 2 - 5)			(Col 7 + 8)
	Ordinary			Capital			Total
	(in millions)
(a) Gross deferred tax assets	$	337		$	(127	)	$	210
(b) Statutory valuation allowance adjustments		-			-			-
(c) Adjusted gross deferred tax assets (a — b)		337			(127	)		210
(d) Deferred tax assets nonadmitted		-			-			-
(e) Subtotal net admitted deferred tax asset (c — d)		337			(127	)		210
(f) Deferred tax liabilities		560			(98	)		462
(g) Net admitted deferred tax asset / (net deferred tax liability) (e — f)	$	(223	)	$	(29	)	$	(252	)

The Company has recorded a valuation allowance against specific general business tax credit carryforwards of $50 million for the year ended December 31, 2014. These tax credits were generated by the legacy JHFC group and are subject to the separate return limitation rules. These credits will not expire until 2019, however due to restrictions on the utilization, management believes that it is more likely than not that the Company will not realize the benefit. In assessing the need for a valuation allowance, management considered the future reversal of taxable temporary differences, future taxable income exclusive of reversing temporary differences, taxable income in the carry back period, as well as tax planning strategies. Tax

F-48

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

9. Federal Income Taxes - (continued)

planning strategies were considered to the extent they were both prudent and feasible and if implemented, would result in the realization of deferred tax assets.

The amount of adjusted gross deferred tax assets admitted under each component and the resulting increase in deferred tax assets by character are as follows:

	December 31, 2014
	(1)		(2)		(3)
					(Col 1 + 2)
	Ordinary		Capital		Total
	(in millions)
2. Admission calculation components SSAP No. 101
(a) Federal income taxes paid in prior years recoverable through loss carrybacks.	$	-	$	-	$	-
(b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation. (The lesser of 2(b)1 and 2(b)2 below)		521		276		797
1. Adjusted gross deferred tax assets expected to be realized following the Balance Sheet date.		1,197		276		1,473
2. Adjusted gross deferred tax assets allowed per limitation threshold.		521		276		797
(c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities.		3,729		203		3,932
(d) Deferred tax assets admitted as the result of application of SSAP No. 101. Total (2(a) + 2(b) + 2(c))	$	4,250	$	479	$	4,729
	December 31, 2013
	(4)		(5)		(6)
					(Col 4 + 5)
	Ordinary		Capital		Total
	(in millions)
2. Admission calculation components SSAP No. 101
(a) Federal income taxes paid in prior years recoverable through loss carrybacks.	$	-	$	-	$	-
(b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation. (The lesser of 2(b)1 and 2(b)2 below)		650		194		844
1. Adjusted gross deferred tax assets expected to be realized following the Balance Sheet date.		650		194		844
2. Adjusted gross deferred tax assets allowed per limitation threshold.		675		194		869
(c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities.		3,263		412		3,675
(d) Deferred tax assets admitted as the result of application of SSAP No. 101. Total (2(a) + 2(b) + 2(c))	$	3,913	$	606	$	4,519

F-49

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

9. Federal Income Taxes - (continued)

	Change
	(7)			(8)			(9)
	(Col 1 - 4)			(Col 2 - 5)			(Col 7 + 8)
	Ordinary			Capital			Total
	(in millions)
2. Admission calculation components SSAP No. 101
(a) Federal income taxes paid in prior years recoverable through loss carrybacks.	$	-		$	-		$	-
(b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation. (The lesser of 2(b)1 and 2(b)2 below)		(129	)		82			(47	)
1. Adjusted gross deferred tax assets expected to be realized following the Balance Sheet date.		547			82			629
2. Adjusted gross deferred tax assets allowed per limitation threshold.		(154	)		82			(72	)
(c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities.		466			(209	)		257
(d) Deferred tax assets admitted as the result of application of SSAP No. 101. Total (2(a) + 2(b) + 2(c))	$	337		$	(127	)	$	210

	2014			2013
	(in millions)
(a) Ratio percentage used to determine recovery period and threshold limitation amount		917	%		860	%
(b) Amount of adjusted capital and surplus used to determine recovery period and threshold limitation in 2(b)2 above	$	5,315		$	5,796

Impact of tax planning strategies is as follows:

	December 31, 2014
	(1)			(2)
	Ordinary			Capital
	(in millions)
(a) Determination of Adjusted Gross Deferred Tax Assets and Net Admitted Deferred Tax Assets by tax character as a percentage.
1. Adjusted Gross DTAs Amount From Note 9A1(c)	$	4,250		$	479
2. Percentage of Adjusted Gross DTAs By Tax Character Attributable To The Impact of Tax Planning Strategies		0	%		32	%
3. Net Admitted Adjusted Gross DTAs Amount from Note 9A1(e)	$	4,250		$	479
4. Percentage of Net Admitted Adjusted Gross DTAs by Tax Character Attributable To The Impact of Tax Planning Strategies		0	%		32	%

F-50

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

9. Federal Income Taxes - (continued)

	December 31, 2013
	(3)			(4)
	Ordinary			Capital
	(in millions)
(a) Determination of Adjusted Gross Deferred Tax Assets and Net Admitted Deferred Tax Assets by tax character as a percentage.
1. Adjusted Gross DTAs Amount From Note 9A1(c)	$	3,913		$	606
2. Percentage of Adjusted Gross DTAs By Tax Character Attributable To The Impact of Tax Planning Strategies		0	%		32	%
3. Net Admitted Adjusted Gross DTAs Amount from Note 9A1(e)	$	3,913		$	606
4. Percentage of Net Admitted Adjusted Gross DTAs by Tax Character Attributable To The Impact of Tax Planning Strategies		0	%		75	%
	Change
	(5)			(6)
	(Col 1 - 3)			(Col 2 - 4)
	Ordinary			Capital
	(in millions)
(a) Determination of Adjusted Gross Deferred Tax Assets and Net Admitted Deferred Tax Assets by tax character as a percentage.
1. Adjusted Gross DTAs Amount From Note 9A1(c)	$	337		$	(127	)
2. Percentage of Adjusted Gross DTAs By Tax Character Attributable To The Impact of Tax Planning Strategies		0	%		0	%
3. Net Admitted Adjusted Gross DTAs Amount from Note 9A1(e)	$	337		$	(127	)
4. Percentage of Net Admitted Adjusted Gross DTAs by Tax Character Attributable To The Impact of Tax Planning Strategies		0	%		(43	%)

The Company’s tax planning strategies do not include the use of reinsurance.

There are no unrecognized deferred tax liabilities for amounts described in ASC 740-10-25-3.

F-51

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

9. Federal Income Taxes - (continued)

Current income taxes incurred consist of the following major components:

	Years Ended December 31,
	(1)			(2)		(3)
						(Col 1 - 2)
	2014			2013		Change
	(in millions)
1. Current income tax
(a) Federal	$	(716	)	$	262	$	(978	)
(b) Foreign		-			-		-
(c) Subtotal		(716	)		262		(978	)
(d) Federal income tax on net capital gains		382			108		274
(e) Utilization of capital loss carryforwards		-			-		-
(f) Other		-			-		-
(g) Federal and foreign income taxes incurred	$	(334	)	$	370	$	(704	)

F-52

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

9. Federal Income Taxes - (continued)

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows:

	December 31,
	(1)		(2)		(3)
					(Col 1 - 2)
	2014		2013		Change
	(in millions)
2. Deferred tax assets:
(a) Ordinary:
(1) Discounting of unpaid losses	$	-	$	-	$	-
(2) Unearned premium reserve		-		-		-
(3) Policyholder reserves		1,034		883		151
(4) Investments		147		113		34
(5) Deferred acquisition costs		755		759		(4	)
(6) Policyholder dividends accrual		111		112		(1	)
(7) Fixed assets		-		-		-
(8) Compensation and benefits accrual		54		64		(10	)
(9) Pension accrual		-		-		-
(10) Receivables — nonadmitted		49		176		(127	)
(11) Net operating loss carryforward		1,218		915		303
(12) Tax credit carry-forward		860		865		(5	)
(13) Other (including items <5% of total ordinary tax assets)		72		76		(4	)
(99) Subtotal	$	4,300	$	3,963	$	337
(b) Statutory valuation allowance adjustment		50		50		-
(c) Nonadmitted		-		-		-
(d) Admitted ordinary deferred tax assets (2(a)(99) — 2(b) — 2(c))	$	4,250	$	3,913	$	337
(e) Capital:
(1) Investments	$	479	$	606	$	(127	)
(2) Net capital loss carryforward		-		-		-
(3) Real estate		-		-		-
(4) Other (including items <5% of total capital tax assets)		-		-		-
(99) Subtotal	$	479	$	606	$	(127	)
(f) Statutory valuation allowance adjustment		-		-		-
(g) Nonadmitted		-		-		-
(h) Admitted capital deferred tax assets (2(e)(99) — 2(f) — 2(g))	$	479	$	606	$	(127	)
(i) Admitted deferred tax assets (2(d)+2(h))	$	4,729	$	4,519	$	210

F-53

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

9. Federal Income Taxes - (continued)

3. Deferred tax liabilities:
(a) Ordinary:
(1) Investments	$	4,202		$	3,610		$	592
(2) Fixed assets		-			-			-
(3) Deferred and uncollected premium		148			152			(4	)
(4) Policyholder reserves		-			-			-
(5) Other (including items <5% of total ordinary tax liabilities)		521			549			(28	)
(99) Subtotal	$	4,871		$	4,311		$	560
(b) Capital:
(1) Investments	$	276		$	368		$	(92	)
(2) Real estate		-			-			-
(3) Other (including items <5% of total capital tax liabilities)		38			44			(6	)
(99) Subtotal	$	314		$	412		$	(98	)
(c) Deferred tax liabilities (3(a)(99) + 3(b)(99))	$	5,185		$	4,723		$	462
4. Net deferred tax assets/liabilities (2(i) — 3(c))	$	(456	)	$	(204	)	$	(252	)

The change in net deferred income taxes is comprised of the following:

	December 31,
	2014			2013			Change
	(in millions)
Total deferred tax assets	$	4,729		$	4,519		$	210
Total deferred tax liabilities		5,185			4,723			462
Net deferred tax assets (liabilities)	$	(456	)	$	(204	)	$	(252	)
Tax effect of unrealized gains and losses								(1,263	)
Tax effect of unrealized foreign exchange gains (losses)								38
Change in net deferred income taxes							$	973

F-54

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

9. Federal Income Taxes - (continued)

The provision for federal and foreign income taxes incurred is different from that which would be obtained by applying the statutory federal income tax rate of 35% to income before income tax (including realized capital gains). The significant items causing this difference are as follows:

	Years Ended December 31,
	2014			2013			2012
	(in millions)
Ordinary provisions computed at statutory rate	$	(1,087	)	$	1,775		$	362
Net realized capital gains (losses) before IMR at statutory rate		151			(595	)		(207	)
Change in nonadmitted assets		-			-			-
Reinsurance		(91	)		(206	)		(142	)
Valuation allowance		-			50			-
Tax-exempt income		(16	)		(2	)		(21	)
Nondeductible expenses		1			7			3
Foreign tax expense gross up		9			8			9
Amortization of IMR		(62	)		(64	)		(63	)
Tax recorded in surplus		15			(18	)		(25	)
Dividend received deduction		(129	)		(102	)		(106	)
Investment in subsidiaries		(32	)		(35	)		(34	)
Prior year adjustment		(23	)		16			(53	)
Tax credits		(52	)		(61	)		(73	)
Change in tax reserve		11			(55	)		(119	)
Pension		-			-			-
Other		(2	)		(1	)		-
Total	$	(1,307	)	$	717		$	(469	)
Federal and foreign income taxes incurred	$	(716	)	$	262		$	(752	)
Capital gains tax		382			108			354
Change in net deferred income taxes		(973	)		347			(71	)
Total statutory income tax expense (benefit)	$	(1,307	)	$	717		$	(469	)

F-55

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

9. Federal Income Taxes - (continued)

As of December 31, 2014, the Company had the following carry forwards:

	Origination Year	Expiration Year	Amount
	(in millons)
Net operating losses	2008	2023	$	1,594
	2009	2024		259
	2010	2025		63
	2013	2028		1,080
	2014	2029		484
			$	3,480
Affordable housing tax credits	2001	2021	$	-
	2002	2022		26
	2003	2023		49
	2004	2024		56
	2005	2025		59
	2006	2026		55
	2007	2027		64
	2008	2028		60
	2009	2029		40
	2010	2030		52
	2011	2031		53
	2012	2032		46
	2013	2033		37
	2014	2034		26
			$	623
Foreign tax credits	2002	2012	$	6
	2003	2013		9
	2004	2014		13
	2005	2015		5
	2006	2016		9
	2007	2017		27
	2008	2018		18
	2009	2019		11
	2010	2020		9
	2011	2021		28
	2012	2022		28
	2013	2023		27
	2014	2024		23
			$	213
Alternative minimum tax credits	2002		$	2
	2006			7
			$	9

F-56

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

9. Federal Income Taxes - (continued)

Rehabilitation credits	2003	2023	$	4
	2006	2026		1
			$	5
Other credits	2005	2025	$	1
	2007	2027		1
	2008	2028		1
	2009	2029		1
	2010	2030		2
	2011	2031		2
	2013	2033		2
			$	10

There are no federal income taxes incurred available for recoupment in the event of future net losses for 2014, 2013 and 2012 respectively.

The Company has no deposits under Section 6603 of the Internal Revenue Code.

The Company is included in the consolidated federal income tax return of JHFC with the following entities:

Essex Corporation	John Hancock Real Estate Finance Inc.
Hancock Forest Management Inc.	John Hancock Realty Advisors Inc.
Hancock Natural Resource Group Inc.	John Hancock Realty Mgt. Inc.
Hancock Venture Partners Inc.	John Hancock Signature Services Inc.
Hancock Venture Partners Inc. Russia	John Hancock Timber Resource Corp.
HVP-Special Purpose Sub I Inc.	Manulife Reinsurance (Bermuda) Limited
HVP-Special Purpose Sub II Inc.	Manulife Reinsurance Limited
JH Networking Insurance Agency Inc.	Manulife Service Corporation
JHFS One Corp.	MCC Asset Management Inc.
John Hancock Assignment Company	PT Timber Inc.
John Hancock Capital Growth Management Inc.	Signator Insurance Agency Inc.
John Hancock Energy Resources Mgt. Inc.	Signator Investors Inc.
John Hancock Financial Network Inc.	Signator Financial Services Inc.
John Hancock Financial Corporation	The Manufacturers Investment Corporation
John Hancock Insurance Agency Inc.	Transamerica Fund Distributors Inc.
John Hancock Leasing Corp.	Transamerica Fund Management Company
John Hancock Life Insurance Company of New York

In accordance with the income tax sharing agreements in effect for the applicable tax years, the Company’s income tax expense (benefit) is computed as if the Company filed separate federal income tax returns with tax benefits provided for operating losses and tax credits when utilized by the consolidated group. Intercompany settlements of income taxes are made through an increase or reduction to amounts due to or from affiliates. Such settlements occur on a periodic basis in accordance with the tax sharing agreements.

Taxes receivable from (payable to) affiliates are $728 million and ($137) million at December 31, 2014 and 2013, respectively, and are included in current federal income taxes payable on the Balance Sheets.

The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The Company is under continuous examination by the IRS. Effective for 2010, the Company’s common parent, JHFC, merged into Manulife Holdings (Delaware) LLC (“MHDLLC”) resulting in a new combined group. With respect to the legacy MHDLLC

F-57

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

9. Federal Income Taxes - (continued)

consolidated return group, the IRS audit for tax years through 2009 have been closed. With respect to the legacy JHFC group, the IRS has completed its examinations of tax years 1997 through 2009. The IRS has issued statutory notices of deficiency relating to issues in years 1997 through 2004. JHFC filed a petition in U.S. Tax Court pertaining to leveraged leases to contest years 1997 to 2001 and the trial was completed in 2011 with final judgment entered on July 22, 2014. The IRS issued Revenue Agent Reports for tax years 2005 through 2009. Protests were filed with respect to disagreed issues. The IRS commenced its audit of tax years 2010 through 2013 in September 2014.

On August, 5, 2013, the U.S. Tax Court issued an opinion in the litigation between the Company and the IRS involving the tax treatment of certain leveraged lease investments. The Court’s opinion effectively ruled against the Company with respect to deductions claimed for tax years 1997 — 2001. The Company and the Internal Revenue Service are in the process of determining the impact of the decision on years subsequent to the years that were decided by the Court. The Company has made advance payments of tax and interest and is awaiting final IRS assessments. Although the Company is fully reserved for the taxes and interest that could be due, this decision may result in a decrease in the admissible book value of other deferred tax assets include in surplus in subsequent periods, absent consideration of further management actions.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2014			2013
	(in millions)
Balance at beginning of year	$	2,715		$	3,186
Additions based on tax positions related to the current year		49			150
Payments		(550	)		(90	)
Additions for tax positions of prior years		23			59
Reductions for tax positions of prior years		(235	)		(590	)
Balance at end of year	$	2,002		$	2,715

Included in the balances as of December 31, 2014 and 2013, respectively, are $154 million and $149 million of unrecognized benefits that, if recognized, would affect the Company’s effective tax rate. Included in the balances as of December 31, 2014 and 2013, are $1,848 million and $2,566 million of tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Approximately $1,734 million and $2,281 million of such amounts at December 31, 2014 and 2013, respectively, represent deferred tax liability balances related to leveraged lease deductions taken in prior year tax returns that were considered in determining the amount of deferred tax assets that can be admitted by offsetting such amounts against deferred tax liabilities. Excluding the effect of interest and penalties, this will have no impact on the annual effective rate, but would accelerate the payment of taxes to an earlier period.

The Company’s liability for unrecognized tax benefits may decrease in the next twelve months pending the outcome of remaining issues associated with the 2002 through 2009 IRS audit. A reasonable estimate of the decrease cannot be determined at this time however, the Company believes that the ultimate resolution will not result in a material change to its financial statements.

The Company recognizes interest accrued related to unrecognized tax benefits and penalties in income tax expense in the Statements of Operations. The Company recognized approximately $9 million of interest expense, and $11 million, and $24 million of interest benefit for the years ended December 31, 2014, 2013 and 2012, respectively. The Company had approximately $209 million and $404 million accrued for interest as of December 31, 2014 and 2013, respectively. The Company did not recognize any material amounts of penalties for the years ended December 31, 2014, 2013 and 2012.

10. Capital and Surplus

There are no restrictions placed on the Company’s unassigned surplus other than restrictions on dividend payments described below.

Under Michigan State insurance laws, no insurer may pay any shareholder dividends from any source other than statutory earned surplus without the prior approval of the Director. Dividends to the shareholder that may be paid without prior approval of the Director are limited by the laws of the State of Michigan. Such dividends are permissible if, together with

F-58

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

10. Capital and Surplus - (continued)

other dividends or distributions made within the preceding 12 months, they do not exceed the greater of 10% of the JHUSA surplus as of December 31 of the preceding year, or the net gain from operations excluding realized capital gains and (losses) for the 12 month period ending December 31 of the immediately preceding year. For the years ended December 31, 2014 and 2013, the Company paid a dividend to its parent company MIC of $500 million and $300 million, respectively. The company paid no dividends for the year ended December 31, 2012.

Life/health insurance companies are subject to certain Risk-Based Capital (“RBC”) requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life/health insurance company is to be determined based on the various risk factors related to it. As of December 31, 2014 and 2013, based on calculations pursuant to those requirements, the Company’s total adjusted capital exceeds the company action level.

The Company has surplus notes described below in the amount of $991 million. The issuance of the surplus notes was approved by the insurance regulators with the following repayment conditions and restrictions: 1) interest payments may be made only with prior approval by the Insurance Department and 2) repayment of the principal due may be made only with the prior approval of the Insurance Department.

Surplus notes in the amount of $450 million were issued on February 25, 1994, for cash pursuant to Rule 144A under the Securities Act of 1933. 100% of the issued and outstanding surplus notes are represented by a global note registered in the name of a nominee of the Depository Trust Company. The interest rate is fixed at 7.375%, and interest is payable semi-annually. The notes mature on February 15, 2024. Interest expense was $33 million for years ended December 31, 2014, 2013 and 2012. Total interest paid through December 31, 2014 was $680 million.

Pursuant to a subordinated surplus note dated September 30, 2008, the Company issued two notes in the amount of $295 million and $110 million to an affiliate, John Hancock Insurance Agency, Inc. (“JHIA”). The interest rate is fixed at 7% per annum and is payable semi-annually. The notes mature on March 31, 2033. The combined interest expense on the notes was $29 million for years ended December 31, 2014, 2013 and 2012. Total interest paid through December 31, 2014 was $173 million.

Pursuant to an amended and restated subordinated surplus note dated September 30, 2008, the Company borrowed $136 million from JHFC. Interest is calculated and reset quarterly at a fluctuating rate equal to 3-month LIBOR plus 130 basis points and is payable semi-annually. The note matures on December 15, 2016. Interest expense was $2 million, $2 million, and $2 million for the years ended December 31, 2014, 2013 and 2012, respectively. Total interest paid through December 31, 2014 was $11 million.

Under Michigan State liquidation statutes, the claims of the Depository Trust Company, JHIA, and JHFC (“the surplus noteholders”) come before those of the Company’s shareholders. There is no preferential treatment in claims between the surplus noteholders.

11. Related Party Transactions

Service Agreements

The Company has formal service agreements with MFC and MLI, which can be terminated by either party upon two months’ notice. Under the various agreements, the Company will pay operating expenses incurred by MFC and MLI on behalf of the Company. Services provided under the agreements include legal, actuarial, investment, data processing, accounting, and certain other administrative services. Management fees relating to the agreement were $398 million, $443 million, and $481 million, respectively, for the years ended December 31, 2014, 2013 and 2012.

The Company has Administrative Service Agreements with its subsidiaries whereby the Company will be reimbursed for operating expenses incurred by the Company. Services provided under the agreement include legal, personnel, marketing, investment accounting, and certain other administrative services and are billed based on intercompany cost allocations or total average daily net assets. The amounts earned under the agreements were $618 million, $328 million, and $266 million for the years ended December 31, 2014, 2013 and 2012, respectively.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

11. Related Party Transactions - (continued)

Management believes the allocation methods used are reasonable and appropriate in the circumstances; however, the Company’s Balance Sheets and statements of operations may not necessarily be indicative of the financial condition that would have existed if the Company operated as an unaffiliated entity.

Other

During 2014, 2013 and 2012, respectively, the Company received dividends of $43 million, $297 million, and $274 million from John Hancock Investment Management Services LLC, $90 million, $98 million, and $96 million from JHD, $0 million, $0 million, and $0 million from JHNY, and $72 million, $0 million, and $0 million from John Hancock Subsidiaries, LLC (JHS). These dividends are included in the Company’s net investment income.

During 2014, the Company made a capital contribution of $3 million to JHS in exchange for one share of its common stock.

The Company did not own any shares of the stock of its parent, MIC, or its ultimate parent, MFC at December 31, 2014 and 2013, respectively.

The Company did not recognize any impairment write-down for its investment in subsidiaries, controlled or affiliated companies for the years ended December 31, 2014, 2013 and 2012, respectively.

The Company operates a liquidity pool in which affiliates can invest excess cash. Terms of operation and participation in the liquidity pool are set out in the Second Restated and Amended Liquidity Pool and Loan Facility Agreement effective January 1, 2010. The maximum aggregate amounts that JHUSA can accept into the Liquidity Pool are $5 billion in U.S. dollar deposits and $200 million in Canadian dollar deposits. Under the terms of the agreement, certain participants may receive advances from the Liquidity Pool up to certain predetermined limits. By acting as the banker the Company can earn a spread over the amount it pays its affiliates and this aggregation and resulting economies of scale allows the affiliates to improve the investment return on their excess cash. Interest payable on U.S. dollar funds will be reset daily to the one-month U.S. Dollar London Inter-Bank Bid Rate (“LIBID”) and interest payable on Canadian dollar funds is based off the one-month Canadian Dollar Offering Rate (“CDOR”) plus a spread.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

11. Related Party Transactions - (continued)

The following table details the affiliates and their participation in the Company’s Liquidity Pool:

	December 31,
	2014		2013
	(In millions)
The Manufacturers Investment Corporation	$	105	$	313
John Hancock Financial Corporation		274		36
Manulife Reinsurance Limited		186		7
Manulife Reinsurance (Bermuda) Ltd.		696		81
John Hancock Life & Health Insurance Company		142		249
John Hancock Life Insurance Company Vermont		39		16
John Hancock Reassurance Company, Ltd.		278		21
John Hancock Life Insurance Company New York		611		381
John Hancock Investment Management Services LLC		31		87
John Hancock Subsidiaries LLC		45		26
John Hancock Insurance Agency, Inc.		16		17
Essex Corporation		1		1
Hancock Venture Partners, Inc.		-		15
JH Signature Services Inc.		9		9
JH Partnership Holdings I, II LP		2		4
John Hancock Energy Resources Management, Inc.		4		4
John Hancock Real Estate Finance		1		1
John Hancock Realty Advisors		8		8
JH Advisors LLC		158		37
Manulife Asset Management LLC		75		39
Declaration Management and Research LLC		4		5
Hancock Capital Investment Management LLC		15		7
John Hancock RPS, LLC		14		35
The Berkeley Financial Group, LLC		4		4
Signator Insurance Agency, Inc.		18		-
JH Networking Insurance Agency, Inc.		4		-
Total	$	2,740	$	1,403

Effective March 31, 1996, MLI provides a claims paying guarantee to certain U.S. policyholders. The claims guarantee agreement was terminated effective August 13, 2008, but still remains in effect with respect to policies issued by the Company prior to that date.

MFC fully and unconditionally guarantees payments from the guarantee periods of the accumulation phase for certain of the Company’s market value adjusted annuity contracts.

MFC fully and unconditionally guarantees JHLICO’s SignatureNotes. In December 2009, the entity that formerly issued these notes, JHLICO, ceased to exist and its property and obligations became the property and obligations of the Company.

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JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

11. Related Party Transactions - (continued)

MFC’s guarantees of the market value adjusted deferred annuity contracts and SignatureNotes are unsecured obligations of MFC and are subordinated in right of payment to the prior payment in full of all other obligations of MFC, except for other guarantees or obligations of MFC, which by their terms are designated as ranking equally in right of payment with or subordinate to MFC’s guarantees of the market value adjusted deferred annuity contracts and SignatureNotes.

The Company also enters into debt and reinsurance transactions with its affiliates. Please refer to the debt and reinsurance notes for further details.

12. Commitments, Guarantees, Contingencies, and Legal Proceedings

Commitments: The Company has extended commitments to purchase long-term bonds of $207 million, purchase other invested assets of $1,917 million, purchase real estate of $114 million, and issue agricultural and commercial mortgages of $175 million at December 31, 2014. If funded, loans related to real estate mortgages would be fully collateralized by related properties. Approximately 41% of these commitments expire in 2015 and the majority of the remainder expires by 2019.

There were no leasing arrangements that the Company entered into as lessee which could have a material financial effect.

During 2001, the Company entered into an office ground lease agreement, which expires on September 20, 2096. During 2012, the Company entered into a parking lease agreement, which expires on December 31, 2050. The terms of the lease agreements provide for adjustments in future periods. The future minimum lease payments, by year and in the aggregate, under these leases and other non-cancelable operating leases along with the associated sub-lease income are as follows:

	Non-cancelable Operating Leases		Sub-lease Income
	(in millions)
2015	$	21	$	4
2016		12		-
2017		9		-
2018		6		-
2019		5		-
Thereafter		354		-
Total	$	407	$	4

Other than the Company’s investment real estate, the Company does not have any material sub-lease income related to its office space. Leasing of investment real estate is not a significant part of the Company’s business activities in terms of revenue, net income, or assets.

The Company’s investment in leveraged leases relates to equipment used primarily in the transportation industries; however, this type of leasing transaction is not a significant part of the Company’s business activities in terms of revenue, net income, or assets.

On December 23, 2014, the Company entered into an agreement with New York Life under which John Hancock Retirement Plan Services, LLC, an indirect wholly owned subsidiary, will acquire New York Life’s Retirement Plan Services business. In addition, New York Life has agreed to assume, on a reinsurance basis, 60% of the Company’s in-force participating life insurance JHLICO closed block. Subject to the receipt of all necessary approvals and other customary closing conditions, the transaction is anticipated to close in the first half of 2015.

Guarantees: In the course of business, the Company enters into guarantees which vary in nature and purpose and which are accounted for and disclosed under statutory accounting principles.

The Company has issued guarantee agreements pursuant to which the Company guarantees the obligations of JHNY and JHLH under the OTC International Swaps and Derivatives Association, Inc. (“ISDA”) cleared and exchange-traded

F-62

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

12. Commitments, Guarantees, Contingencies, and Legal Proceedings - (continued)

derivative agreements and transactions entered into by JHNY and JHLH with external counterparties. The ISDA guarantees are subject to an overall limit of $1 billion of Potential Future Exposure, using a three-week and 95% confidence parameters, in calculating the counterparty risk exposure.

The Company is party to a financial support agreement with JHLH pursuant to which it has agreed to maintain JHLH’s capital level such that its risk-based capital ratio shall be at or above 225% of the company action level annually. In addition, under the terms of the financial support agreement, the Company undertakes to provide sufficient liquidity to enable JHLH to make timely payment of its contractual obligations.

Contingencies: The Company is an investor in a number of leasing transactions. On August 5, 2013, the U.S. Tax Court issued an opinion effectively ruling in the government’s favor in the litigation between John Hancock and the Internal Revenue Service involving the tax treatment of John Hancock’s investments in certain leverage leases. The Company and the Internal Revenue Service are in the process of determining the impact of the decision on years subsequent to the years that were decided by the Court. Please refer to the federal income taxes note for further details. The Company has made advance payments of tax and interest and is awaiting final IRS assessments. Although the Company is fully reserved for the taxes and interest that could be due, this decision may result in a decrease in the admissible book value of other deferred tax assets included in surplus in subsequent periods, absent consideration of further management actions.

The Company acts as an intermediary/broker in OTC derivative instruments. In these cases, the Company enters into derivative transactions on behalf of affiliated companies and then enters into offsetting derivative transactions with the affiliate. In the event of default of either party, the Company is still obligated to fulfill its obligations with the other party.

The Company is subject to insurance guaranty fund laws in the states in which it does business. Pursuant to these laws, insurance companies are assessed, and required to make periodic payments, to be used to pay benefits to policyholders and claimants of insolvent or rehabilitated insurance companies. Many states allow these assessments to be credited against future premium taxes. The Company believes such assessments in excess of amounts accrued will not materially affect its financial position.

Legal Proceedings: The Company is regularly involved in litigation, both as a defendant and as a plaintiff. The litigation naming the Company as a defendant ordinarily involves its activities as a provider of insurance protection and wealth management products, an employer, and a taxpayer. In addition, the Michigan Department of Insurance and Financial Services, the Michigan Attorney General, the SEC, the Financial Regulatory Authority, and other government and regulatory bodies regularly make inquiries and, from time to time, require the production of information or conduct examinations concerning the Company’s compliance with, among other things, insurance laws, securities laws, and laws governing the activities of broker-dealers. An estimation of the range of potential outcomes in any given matter is often unavailable until such matters have developed and sufficient information emerges to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals and estimates of reasonably possible losses or ranges of loss based on such reviews.

F-63

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

13. Annuity Actuarial Reserves

The Company’s annuity reserves and deposit fund liabilities and related separate account liabilities that are subject to discretionary withdrawal (with adjustment), subject to discretionary withdrawal (without adjustment), and not subject to discretionary withdrawal provisions are summarized as follows:

	December 31, 2014
	General Account		Separate Account with Guarantees		Separate Account Nonguaranteed		Total		Percent of Total
	(in millions)
Subject to discretionary withdrawal:
With fair value adjustment	$	968	$	559	$	1,879	$	3,406		2	%
At book value less current surrender charge of 5% or more		29		-		-		29		0	%
At fair value		-		-		123,450		123,450		81	%
Total with adjustment or at fair value		997		559		125,329		126,885		83	%
At book value without adjustment (minimal or no charge or adjustment)		8,594		-		-		8,594		6	%
Not subject to discretionary withdrawal		15,577		713		130		16,420		11	%
Total (gross)		25,168		1,272		125,459		151,899		100	%
Reinsurance ceded		5,483		-		-		5,483
Total (net)	$	19,685	$	1,272	$	125,459	$	146,416
	December 31, 2013
	General Account		Separate Account with Guarantees		Separate Account Nonguaranteed		Total		Percent of Total
	(in millions)
Subject to discretionary withdrawal:
With fair value adjustment	$	1,176	$	586	$	1,886	$	3,648		2	%
At book value less current surrender charge of 5% or more		510		-		-		510		0	%
At fair value		-		-		126,623		126,623		81	%
Total with adjustment or at fair value		1,686		586		128,509		130,781		83	%
At book value without adjustment (minimal or no charge or adjustment)		8,634		-		-		8,634		6	%
Not subject to discretionary withdrawal		15,764		686		122		16,572		11	%
Total (gross)		26,084		1,272		128,631		155,987		100	%
Reinsurance ceded		5,992		-		-		5,992
Total (net)	$	20,092	$	1,272	$	128,631	$	149,995

F-64

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

14. Separate Accounts

Separate accounts held by the Company include individual and group variable annuity and variable life products that offer guarantee and non-guaranteed returns. The net investment experience of the separate account is credited directly to the policyholder and can be positive or negative.

For guarantees of amounts in the event of death, the net amount at risk is defined as the excess of the initial sum insured over the current sum insured for fixed premium variable life insurance contracts, and, for other variable life insurance contracts, is equal to the sum insured when the account value is zero and the policy is still in force.

The deposits related to variable annuities generally provide a GMDB. For annuity products, this can take the form of either (a) return of no less than total deposits made to the contract less any partial withdrawals; (b) total deposits made to the contract less any partial withdrawals plus a minimum return; (c) the highest contract value on a specified anniversary date minus any withdrawals following the contract anniversary; or (d) a combination benefit of (b) and (c) above. The assets and liabilities of these accounts are carried at fair value. The GMDB reserve is held in the Company’s general account policy reserves.

The Company sold contracts with Guaranteed Minimum Income Benefit (“GMIB”) riders from 1998 to 2004. The GMIB rider provides a guaranteed lifetime annuity which may be elected by the contract holder after a stipulated waiting period (7 to 15 years), and which may be larger than what the contract account balance could purchase at then-current annuity purchase rates.

The Company sold contracts with a GMWB rider and has since offered multiple variations of this optional benefit. The GMWB rider provides contract holders a guaranteed annual withdrawal amount over a specified time period or in some cases for as long as they live. In general, guaranteed annual withdrawal amounts are based on deposits and may be reduced if withdrawals exceed allowed amounts. Guaranteed amounts may also be increased as a result of “step-up” provisions which increase the benefit base to higher account values at specified intervals. Guaranteed amounts may also be increased if withdrawals are deferred over a specified period. In addition, certain versions of the GMWB rider extend lifetime guarantees to spouses.

Reinsurance has been utilized to mitigate risk related to some of the GMDB and GMIB riders.

For GMDB, the net amount at risk is defined as the current guaranteed minimum death benefit in excess of the current account balance. For GMIB, the net amount at risk is defined as the excess of the current annuitization income base over the current account value. For GMWB, the net amount at risk is defined as the current guaranteed withdrawal amount minus the current account value. For all the guarantees, the net amount at risk is floored at zero at the single contract level.

The deposits related to the variable life insurance contracts are invested in separate accounts and the Company guarantees a specified death benefit if certain specified premiums are paid by the policyholder, regardless of separate account performance.

F-65

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

14. Separate Accounts - (continued)

The assets legally insulated from the general account are attributed to the following products/transactions:

Product/Transaction	Separate Account Legally Insulated Assets				Separate Account Not Legally Insulated Assets
	December 31,
	2014		2013		2014		2013
	(in millions)
Group Annuities (Deposit Administration)	$	78,905	$	77,273	$	-	$	-
Variable Annuities		43,503		48,224		29		34
Life and COLI		12,359		11,832		-		-
Fixed Products — Institutional and stable value fund		2,713		2,756		-		-
Fixed Products — Retail		24		26		570		546
Investments — Funds		2,061		2,075		-		-
Total	$	139,565	$	142,186	$	599	$	580

As of December 31, 2014 and 2013, the general account of the Company had a maximum guarantee for separate account liabilities $7,816 million and $7,617 million, respectively. To compensate the general account for the risk taken, the separate account paid risk charges and amounts toward separate account guarantees are as follows:

	Risk Charges Paid to General Account		Amounts toward Separate Account Guarantees
	(in millions)
2014		$    252		$      74
2013		$    263		$    109
2012		$    269		$    165
2011		$    261		$    145
2010		$    246		$    137

The Company had the following variable annuities with guaranteed benefits:

	December 31,
	2014		2013
	(in millions, except for ages)
Account value	$	44,116	$	48,855
Amount of reserve held		865		349
Net amount at risk — gross		4,699		4,260
Weighted average attained age		67		66

The following assumptions and methodology were used to determine the amounts above at December 31, 2014 and 2013:

• Actuarial Guideline XLIII (AG43) is used in both years to determine the aggregate reserve for products falling under the scope. Assumptions used in the standard scenario are prescribed by the guideline. Assumptions used in the stochastic scenarios are detailed below.

• The stochastically generated projection scenarios have met the scenario calibration criteria prescribed in AG43.

• In 2014 and 2013, annuity mortality is based on the Ruark Variable Annuity Table, which is based on an industry study of variable annuity deaths. The table is further adjusted by factors varied by rider types (living benefit/GMDB only) and qualified and non-qualified business.

F-66

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

14. Separate Accounts - (continued)

• In 2014 and 2013, annuity base lapse rates vary by product, policy year, and rider type, where the lapse rates range from 0.5% to 40% for GMDB, GMIB and GMWB. These rates are dynamically reduced for guarantees that are in-the-money. Beginning in 2012, rates are also dynamically increased for GMWBs that are out-of-the-money.

• For variable annuities, the swap curve at December 31 is used for discounting in both years.

• For variable annuities, mean return, volatility and correlation assumptions are determined by indices, which have met the calibration criteria prescribed in AG43.

Account balances of variable contracts with guarantees were invested in various separate accounts with the following characteristics:

	December 31,
	2014		2013
	(in millions)
Type of Fund
Equity	$	27,353	$	29,211
Balanced		19,449		21,212
Bonds		5,807		6,278
Money Market		683		861
Total	$	53,292	$	57,562

Information regarding the separate accounts of the Company is as follows:

	December 31,
	2014						2013
	Nonindexed Guarantee Less than or Equal to 4%		Nonguaranteed Separate Account		Total		Nonindexed Guarantee Less than or Equal to 4%		Nonguaranteed Separate Account		Total
	(in millions)
Premiums, deposits and other considerations	$	-	$	13,258	$	13,258	$	-	$	13,613	$	13,613
Reserves for accounts with assets at:
Fair value		1,272		137,306		138,578		1,272		139,976		141,248
Amortized cost		-		-		-		-		-		-
Total	$	1,272	$	137,306	$	138,578	$	1,272	$	139,976	$	141,248

F-67

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

14. Separate Accounts - (continued)

	December 31,
	2014						2013
	Nonindexed Guarantee Less than or Equal to 4%		Nonguaranteed Separate Account		Total		Nonindexed Guarantee Less than or Equal to 4%		Nonguaranteed Separate Account		Total
	(in millions)
Reserves for separate accounts by withdrawal characteristics:
Subject to discretionary withdrawal:
With fair value adjustment	$	531	$	1,879	$	2,410	$	554	$	1,886	$	2,440
At book value without fair value adjustments and with current surrender charge of 5% or more		-		2,483		2,483		-		1,933		1,933
At fair value		28		129,620		129,648		32		135,349		135,381
At book value without fair value adjustments and with current surrender charge of less than 5%		-		3,058		3,058		-		557		557
Subtotal		559		137,040		137,599		586		139,725		140,311
Not subject to discretionary withdrawal		713		266		979		686		251		937
Total	$	1,272	$	137,306	$	138,578	$	1,272	$	139,976	$	141,248

Amounts transferred to and from separate accounts are as follows:

	December 31,
	2014			2013			2012
	(in millions)
Transfers to separate accounts	$	16,100		$	14,916		$	18,798
Transfers from separate accounts		24,329			21,304			22,406
Net transfers to (from) separate accounts	$	(8,229	)	$	(6,388	)	$	(3,608	)

F-68

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

15. Employee Benefit Plans

Retirement Plans: The Company participates in the John Hancock Pension Plan, a qualified defined benefit plan that covers substantially all of its employees. The Company also participates in the John Hancock Non-Qualified Pension Plan, a nonqualified defined benefit plan for employees whose qualified cash balance benefit is restricted by the Internal Revenue Code. Both plans are sponsored by MIC. The non-qualified defined benefit plan was frozen except for grandfathered participants as of January 1, 2008, and the benefits accrued under this plan continue to be subject to the plan’s provisions.

The Company is jointly and severally liable for the funding requirements of the plans and will recognize its allocation, from MIC, of the required contributions to the plans as pension expense in its Statements of Operations. The allocation is derived by utilizing participant data, provided by the plan actuary, to calculate payments into the trust for the qualified plan and payments to participants for the non-qualified plan. The expense for these plans was $37 million, $41 million, and $57 million in 2014, 2013 and 2012, respectively.

The Company participates in the John Hancock Supplemental Retirement Plan, a non-qualified defined contribution plan maintained by MFC, which was established as of January 1, 2008 with participant directed investment options. The expense for this plan was not material for the years ended 2014, 2013 and 2012, respectively. The prior non-qualified defined contribution plan was frozen except for grandfathered participants as of January 1, 2008, and the benefits accrued under the prior plan continue to be subject to the prior plan provisions.

The Company also maintains a separate rabbi trust for the purpose of holding assets to be used to satisfy its obligations with respect to certain other non-qualified retirement plans of $332 million and $344 million at December 31, 2014 and 2013, respectively. In the event of insolvency of the Company, the rabbi trust assets can be used to satisfy claims of general creditors.

401 (k) Plans: The Company participates in qualified defined contribution plans for its employees who meet certain eligibility requirements. These plans include the Investment-Incentive Plan for John Hancock Employees and the John Hancock Savings and Investment Plan. Both plans are sponsored by JHUSA. Expense is primarily comprised of the amounts the Company contributes to the plans, which fully matches eligible participants’ basic pre-tax or Roth contributions, subject to a 4% per participant maximum. The expense for the defined contribution plans was not material for the years ended 2014, 2013 and 2012, respectively.

Deferred Compensation Plan: The Company maintains the Deferred Compensation Plan for Certain Employees of John Hancock, and the Deferred Compensation Plan of the John Hancock Financial Network, both of which are deferred compensation plans sponsored by MFC. These plans are for a select group of management or highly compensated employees and certain qualified agents. The plans are fully funded and accounts are maintained by a third-party administrator. Under these plans, participants have the flexibility and opportunity to invest their plan balances in mutual funds. The liability for these plans at December 31, 2014 and 2013 was $91 million and $88 million, respectively.

Prior to January 1, 2006, the Company offered the Legacy Deferred Compensation Plan for Certain Employees of John Hancock Life Insurance Company (USA), the legacy plan, which is closed to new participation and is unfunded. These are notional accounts and all liabilities have remained with the Company and are paid out of general account assets when a distribution is taken. The liability for this plan was not material as of December 31, 2014 and 2013 respectively.

Postretirement Benefit Plan: The Company participates in the John Hancock Employee Welfare Plan which is sponsored by MIC. Consistent with the pension plan, the Company is jointly and severally liable for the funding requirements of the plan and will recognize its allocation, from MIC, of the benefits earned by plan participants as postretirement benefits expense in its Statements of Operations. The allocation is derived by utilizing participant data, provided by the plan actuary, to calculate the benefits earned; i.e., service cost, relating to participants employed by the Company. In addition, any difference between actual cash paid for benefits to plan participants and benefits earned is recorded directly to unassigned surplus. The expense and charge to surplus for the John Hancock Employee Welfare Plan were not material for the years ended 2014, 2013 and 2012, respectively.

F-69

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

16. Lines of Credit, Consumer Notes and Affiliated Debt

Lines of Credit:At December 31, 2014, the Company, MFC, and other MFC subsidiaries had a committed line of credit through a group of banks totaling $500 million pursuant to a multi-year facility, which will expire in 2019. The banks will commit, when requested, to loan funds at prevailing interest rates as determined in accordance with the line of credit agreement. Under the terms of the agreement, MFC is required to maintain a certain minimum level of net worth, and MFC and the Company are required to comply with certain other covenants, which were met at December 31, 2014. At December 31, 2014, MFC and its subsidiaries, including the Company, had no outstanding borrowings under the agreement.

At December 31, 2014, the Company had a committed line of credit agreement established by MLI totaling $1 billion, which will expire in 2018. MLI will commit, when requested, to loan funds at prevailing interest rates as determined in accordance with the line of credit agreement. Under the terms of the agreement, the Company is required to maintain a certain minimum level of net worth and comply with certain other covenants as long as any amount is owed to the lender under the agreement. At December 31, 2014, the Company had no outstanding borrowings under the agreement.

At December 31, 2014, JHUSA and MIC share in a committed line of credit established by MFC totaling $1 billion, which will expire in 2018. MFC will commit, when requested, to loan funds at prevailing interest rates as determined in accordance with the line of credit agreement. Under the terms of the agreement, the Company is required to maintain a certain minimum level of net worth and comply with certain other covenants, as long as any amount is owed to the lender under the agreement. At December 31, 2014, the Company had no outstanding borrowings under the agreement.

Consumer Notes: The Company issued consumer notes through its SignatureNotes Program. SignatureNotes may be redeemed upon the death of the holder, subject to an annual overall program redemption limitation of 1% of the aggregate securities outstanding, or $1 million, or an individual redemption limitation of $200,000 of aggregate principal. SignatureNotes have a variety of issue dates, maturities, interest rates and call provisions. The notes payable balance as of December 31, 2014 and 2013 was $411 million and $644 million, respectively. Interest ranging from 3.1% to 6.0% is due in varying amounts to 2032.

Aggregate maturities of consumer notes are as follows: 2015-$146 million; 2016-$64 million; 2017-$4 million; 2018-$43 million; 2019-$16 million; and thereafter $138 million.

Interest expense on consumer notes, included in benefits to policyholders, was $24 million, $30 million, and $ 36 million in 2014, 2013 and 2012, respectively. Interest paid amounted to $24 million, $30 million, and $ 36 million in 2014, 2013 and 2012, respectively.

Affiliated Debt: Pursuant to a demand note receivable dated September 30, 2008, the Company has $295 million outstanding with MIC. The note, which was to have matured on March 31, 2013, was extended to March 31, 2018. This note was reported as a nonadmitted asset at December 31, 2014 and 2013 since the counterparty is the parent entity of the Company; however, this note will continue to accrue interest throughout the duration of the contract as per the terms of the note. Prior to March 31, 2013, the interest rate was calculated at a fluctuating rate equal to 3-month LIBOR plus 83 basis points per annum. Following the extension, the interest rate is calculated at a fluctuating rate equal to 3-month LIBOR plus 180 basis points per annum. Interest income was $6 million, $6 million, and $4 million for the years ended December 31, 2014, 2013 and 2012, respectively.

The Company has a demand note receivable dated March 2, 2009 with John Hancock Leasing Corporation (“JH Leasing”) that allows it to loan a minimum principal of $125,000 or an amount in excess in increments of $5,000. As of December 31, 2014 and 2013, the Company had amounts receivable from JH Leasing of $0 million and $3 million, respectively.

Pursuant to a promissory note dated June 28, 2012, the Company borrowed $153 million from Manulife Finance Switzerland AG (“MFSA”). Interest on the loan is calculated at a fluctuating rate equal to 3-month LIBOR plus 90 basis points per annum and is payable quarterly. In addition, the Company renewed two previously outstanding promissory notes to MFSA with an outstanding balance of $7 million and combined these notes with the new note issued on June 28, 2012, thus bringing the total principal balance due to $160 million. On May 23, 2014, the maturity date was extended for a period of one year to June 28, 2015. Following the extension, the interest rate was amended and is calculated at a fluctuating rate equal to 3-month LIBOR plus 88 basis points per annum and is payable quarterly effective from June 28, 2014. Interest expense was $2 million, $2 million, and $1 million for the years ended December 31, 2014, 2013 and 2012, respectively.

F-70

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

16. Lines of Credit, Consumer Notes and Affiliated Debt - (continued)

Pursuant to a demand note dated December 20, 2012, the Company borrowed $130 million from MIC. The note matures on December 20, 2015. Interest on the loan is calculated at a fluctuating rate equal to the one-month LIBOR rate and is payable monthly. Interest expense was $0 million, $0 million, and $0 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Pursuant to a senior note receivable dated December 9, 2014, the Company has $40 million outstanding with JHS. The note matures on December 9, 2019. Interest on the loan is calculated at a fluctuating rate equal to the 3-month LIBOR rate plus 180 basis points per annum and is payable quarterly. Interest income was $0 million for the year ended December 31, 2014.

FHLB (Federal Home Loan Bank) Agreements: The Company is a member of the Federal Home Loan Bank of Indianapolis (FHLBI). The Company uses advances from the FHLBI as a part of its liquidity management program, and any funds obtained for this purpose would be accounted for as borrowed money.

The following table indicates the aggregate amount of the FHLBI capital stock held related to the agreement:

	December 31, 2014
	(1) (Col 2 +3) Total		(2) General Account		(3) Separate Account
	(in millions)
(a) Membership stock — Class A	$	-	$	-	$	-
(b) Membership stock — Class B		20		20		-
(c) Activity stock		-		-		-
(d) Excess stock		-		-		-
(e) Aggregate total	$	20	$	20	$	-
(f) Actual or estimated borrowing capacity as determined by the insurer	$	446		-		-
	December 31, 2013
	(1) (Col 2 +3) Total		(2) General Account		(3) Separate Account
	(in millions)
(a) Membership stock — Class A	$	-	$	-	$	-
(b) Membership stock — Class B		19		19		-
(c) Activity stock		-		-		-
(d) Excess stock		-		-		-
(e) Aggregate total	$	19	$	19	$	-
(f) Actual or estimated borrowing capacity as determined by the insurer	$	373		-		-

FHLBI membership stock of $20 million and $19 million was classified as not eligible for redemption for the years ended December 31, 2014 and 2013, respectively. The Company did not have any collateral pledged to FHLBI as of December 31, 2014 and 2013.

F-71

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

16. Lines of Credit, Consumer Notes and Affiliated Debt - (continued)

The following table represents the aggregate amount of borrowing from FHLBI:

	December 31, 2014
	(1) (Col 2 +3) Total		(2) General Account		(3) Separate Account		(4) Funding Agreements Reserves Established
	(in millions)
(a) Debt	$	-	$	-	$	-		-
(b) Funding agreements		-		-		-
(c) Other		-		-		-		-
(d) Aggregate total	$	-	$	-	$	-	$	-
	December 31, 2013
	(1) (Col 2 +3) Total		(2) General Account		(3) Separate Account		(4) Funding Agreements Reserves Established
	(in millions)
(a) Debt	$	-	$	-	$	-		-
(b) Funding agreements		-		-		-
(c) Other		-		-		-		-
(d) Aggregate total	$	-	$	-	$	-	$	-

The maximum amount of aggregate borrowings from FHLBI during 2014 was $10 million. The Company is not subject to any prepayment obligations under current borrowing agreements.

17. Closed Blocks

The Company operates two separate closed blocks for the benefit of certain classes of individual or joint traditional participating whole life insurance policies. The JHUSA closed block was established upon the demutualization of MLI for those designated participating policies that were in-force on September 23, 1999. The JHLICO closed block was established upon the demutualization of JHLICO for those designated participating policies that were in-force on February 1, 2000. As a result of the merger in 2009, the property and obligations of the JHLICO closed block became the property and obligations of JHUSA, but the Company operates these two closed blocks separately.

Assets were allocated to the closed blocks in an amount that, together with anticipated revenues from policies included in the closed blocks, was reasonably expected to be sufficient to support such business, including provision for payment of benefits, direct asset acquisition and disposition costs, taxes, and for continuation of dividend scales, assuming experience underlying such dividend scales continues.

Assets allocated to the closed blocks inure solely to the benefit of policyholders included in the closed blocks and will not revert to the benefit of the shareholders of the Company. In addition, if the assets allocated to the closed blocks and the revenues from the closed blocks’ business prove to be insufficient to pay the benefits guaranteed in the closed blocks, the Company will be required to make payments from its general funds in an amount equal to the shortfall.

If, over time, the aggregate performance of the assets and policies of a closed block is better than was assumed in funding that closed block, dividends to policyholders for that closed block will be increased. If, over time, the aggregate performance of the assets and policies of a closed block is less favorable than was assumed in funding that closed block, dividends to policyholders for that closed block will be reduced.

F-72

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

17. Closed Blocks - (continued)

No reallocation, transfer, borrowing, or lending of assets can be made between the closed blocks and other portions of the Company’s general account, any of its separate accounts, or any affiliate of the Company without prior notification to or approval of the Insurance Department.

The excess of the closed blocks’ liabilities over the closed blocks’ assets represents the expected future post-tax contribution from that closed block which may be recognized in income over the period the policies and contracts in that closed block remain in force.

The following table sets forth certain summarized financial information relating to the JHUSA and JHLICO closed blocks. The JHLICO assets and liabilities exclude the impact of the transfer of the NY business (described in the Reinsurance Note), consistent with the Closed Block Annual Statement filed with the State of Michigan.

	JHUSA				JHLICO
	2014		2013		2014		2013
	(in millions)
Assets:
Bonds	$	3,153	$	2,959	$	6,248	$	6,143
Stocks:
Preferred stocks		-		-		4		4
Common stocks		1		1		11		9
Mortgage loans on real estate		402		514		1,633		1,971
Real estate		842		698		12		12
Cash, cash equivalents and short-term investments		3		-		4		3
Policy loans		1,551		1,585		1,354		1,504
Other invested assets		113		116		127		109
Total cash and invested assets		6,065		5,873		9,393		9,755
Investment income due and accrued		105		101		126		124
Premiums due and deferred		12		13		68		75
Net deferred tax asset		112		112		157		188
Other closed block assets		63		234		91		53
Total closed block assets	$	6,357	$	6,333	$	9,835	$	10,195
Obligations:
Policy reserves		5,871		5,989		9,710		10,159
Policyholders’ and beneficiaries’ funds		67		69		1,360		1,394
Dividends payable to policyholders		314		319		208		216
Policy benefits in process of payment		52		72		155		139
Other policy obligations		2		6		6		7
Other closed block obligations		720		763		198		170
Total closed block obligations	$	7,026	$	7,218	$	11,637	$	12,085

18. Subsequent Events

The Company evaluated the recognition and disclosure of subsequent events for its December 31, 2014 financial statements through March 25, 2015, the date the financial statements were issued.

F-73

AUDITED FINANCIAL STATEMENTS

John Hancock Life Insurance Company (U.S.A.) Separate Account H

December 31, 2014

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Audited Financial Statements

December 31, 2014

Contents

Report of Independent Registered Public Accounting Firm	3
Statements of Assets and Liabilities	6
Statements of Operations and Changes in Contract Owners’ Equity	28
Notes to Financial Statements	80

2

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors of John Hancock Life Insurance Company (U.S.A.) and Contract Owners of John Hancock Life Insurance Company (U.S.A.) Separate Account H

We have audited the accompanying statements of assets and liabilities of John Hancock Life Insurance Company (U.S.A.) Separate Account H (the Account), comprised of the following sub-accounts,

500 Index Fund B Series I	Lifestyle Aggressive Trust PS Series I
500 Index Fund B Series II	Lifestyle Aggressive Trust PS Series II
500 Index Fund B Series NAV	Lifestyle Balanced MVP Series I
Active Bond Trust Series I	Lifestyle Balanced MVP Series II
Active Bond Trust Series II	Lifestyle Balanced MVP Series NAV
All Cap Core Trust Series I	Lifestyle Balanced Trust PS Series I
All Cap Core Trust Series II	Lifestyle Balanced Trust PS Series II
American Asset Allocation Trust Series I	Lifestyle Conservative MVP Series I
American Asset Allocation Trust Series II	Lifestyle Conservative MVP Series II
American Asset Allocation Trust Series III	Lifestyle Conservative Trust PS Series I
American Global Growth Trust Series II	Lifestyle Conservative Trust PS Series II
American Global Growth Trust Series III	Lifestyle Growth MVP Series I
American Growth-Income Trust Series I	Lifestyle Growth MVP Series II
American Growth-Income Trust Series II	Lifestyle Growth MVP Series NAV
American Growth-Income Trust Series III	Lifestyle Growth Trust PS Series I
American Growth Trust Series II	Lifestyle Growth Trust PS Series II
American Growth Trust Series III	Lifestyle Moderate MVP Series I
American International Trust Series II	Lifestyle Moderate MVP Series II
American International Trust Series III	Lifestyle Moderate Trust PS Series I
American New World Trust Series II	Lifestyle Moderate Trust PS Series II
American New World Trust Series III	Mid Cap Index Trust Series I
Basic Value Focus	Mid Cap Index Trust Series II
Blue Chip Growth Trust Series I	Mid Cap Stock Trust Series I
Blue Chip Growth Trust Series II	Mid Cap Stock Trust Series II
Bond Trust Series I	Mid Value Trust Series I
Bond Trust Series II	Mid Value Trust Series II
Capital Appreciation Trust Series I	Money Market Trust B Series NAV
Capital Appreciation Trust Series II	Money Market Trust Series I
Capital Appreciation Value Trust Series II	Money Market Trust Series II
Core Bond Trust Series II	Mutual Shares Trust Series I
Core Strategy Trust Series I	PIMCO All Asset
Core Strategy Trust Series II	Real Estate Securities Trust Series I
Core Strategy Trust Series NAV	Real Estate Securities Trust Series II
DWS Equity 500 Index	Real Return Bond Trust Series II
Equity-Income Trust Series I	Science & Technology Trust Series I
Equity-Income Trust Series II	Science & Technology Trust Series II
Financial Industries Trust Series I	Short Term Government Income Trust Series I
Financial Industries Trust Series II	Short Term Government Income Trust Series II
Franklin Templeton Founding Allocation Trust Series I	Small Cap Growth Trust Series I

3

Franklin Templeton Founding Allocation Trust Series II	Small Cap Growth Trust Series II
Fundamental All Cap Core Trust Series II	Small Cap Index Trust Series I
Fundamental Large Cap Value Trust Series I	Small Cap Index Trust Series II
Fundamental Large Cap Value Trust Series II	Small Cap Opportunities Trust Series I
Global Allocation	Small Cap Opportunities Trust Series II
Global Bond Trust Series I	Small Cap Value Trust Series I
Global Bond Trust Series II	Small Cap Value Trust Series II
Global Trust Series I	Small Company Value Trust Series I
Global Trust Series II	Small Company Value Trust Series II
Health Sciences Trust Series I	Strategic Income Opportunities Trust Series I
Health Sciences Trust Series II	Strategic Income Opportunities Trust Series II
High Yield Trust Series I	Total Bond Market Trust B Series II
High Yield Trust Series II	Total Bond Market Trust B Series NAV
International Core Trust Series I	Total Return Trust Series I
International Core Trust Series II	Total Return Trust Series II
International Equity Index Trust B Series I	Total Stock Market Index Trust Series I
International Equity Index Trust B Series II	Total Stock Market Index Trust Series II
International Equity Index Trust B Series NAV	U.S. Equity Trust Series I
International Growth Stock Trust Series II	U.S. Equity Trust Series II
International Small Company Trust Series I	Ultra Short Term Bond Trust Series I
International Small Company Trust Series II	Ultra Short Term Bond Trust Series II
International Value Trust Series I	Utilities Trust Series I
International Value Trust Series II	Utilities Trust Series II
Investment Quality Bond Trust Series I	Value Opportunities
Investment Quality Bond Trust Series II	Value Trust Series I
Lifestyle Aggressive MVP Series I	Value Trust Series II
Lifestyle Aggressive MVP Series II

as of December 31, 2014, and the related statements of operations and changes in contract owners’ equity disclosure for the above mentioned sub-accounts and for the All Cap Value Trust Series I, All Cap Value Trust Series II, American Global Small Capitalization Trust Series II, American Global Small Capitalization Trust Series III, American High-Income Bond Trust Series II, American High-Income Bond Trust Series III, Bond PS Series II, Core Allocation Plus Trust Series I, Core Allocation Plus Trust Series II, Core Fundamental Holdings Trust Series III, Core Global Diversification Trust Series I, Core Global Diversification Trust Series II, Core Global Diversification Trust Series III, Disciplined Diversification Trust Series II, Fundamental Holdings Trust Series II, Fundamental Holdings Trust Series III, Fundamental Value Trust Series I, Fundamental Value Trust Series II, Global Diversification Trust Series II, Natural Resources Trust Series II, Smaller Company Growth Trust Series I and Smaller Company Growth Trust Series II (the “closed sub-accounts”) for each of the years or periods indicated therein. These financial statements are the responsibility of the Account’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Account’s 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 Account’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates

4

made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the fund companies, or their transfer agents, as applicable. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the above mentioned sub-accounts constituting John Hancock Life Insurance Company (U.S.A.) Separate Account H at December 31, 2014, the results of their and the closed sub-accounts’ operations and changes in contract owners’ equity and for the years or periods indicated therein in conformity with U.S. generally accepted accounting principles.

/s/ ERNST & YOUNG LLP

Boston, Massachusetts

March 27, 2015

5

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	500 Index Fund B		500 Index Fund B		500 Index Fund B		Active Bond Trust		Active Bond Trust		All Cap Core Trust
	Series I		Series II		Series NAV		Series I		Series II		Series I
Total Assets
Investments at fair value	$	51,298,059	$	44,963,227	$	235,561,842	$	38,345,422	$	187,365,219	$	43,007,296
Net Assets
Contracts in accumulation	$	51,194,789	$	44,963,227	$	235,431,635	$	38,245,107	$	187,239,001	$	42,918,161
Contracts in payout (annuitization)		103,270		—		130,207		100,315		126,218		89,135
Total net assets	$	51,298,059	$	44,963,227	$	235,561,842	$	38,345,422	$	187,365,219	$	43,007,296
Units outstanding		2,792,635		2,468,971		12,772,377		2,023,540		10,251,503		1,689,338
Unit value	$	18.37	$	18.21	$	18.44	$	18.95	$	18.28	$	25.46
Shares		1,997,588		1,748,861		9,172,969		3,881,116		18,925,780		1,574,206
Cost	$	39,078,828	$	34,468,065	$	164,744,258	$	37,714,614	$	186,194,505	$	26,381,832

See accompanying notes.

6

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	All Cap Core Trust Series II		American Asset Allocation Trust Series I		American Asset Allocation Trust Series II		American Asset Allocation Trust Series III		American Global Growth Trust Series II		American Global Growth Trust Series III
Total Assets
Investments at fair value	$	5,516,510	$	128,606,312	$	1,220,136,902	$	155,631,011	$	187,956,957	$	35,706,211
Net Assets
Contracts in accumulation	$	5,516,510	$	128,104,112	$	1,220,134,614	$	155,631,011	$	187,948,063	$	35,706,211
Contracts in payout (annuitization)		—		502,200		2,288		—		8,894		—
Total net assets	$	5,516,510	$	128,606,312	$	1,220,136,902	$	155,631,011	$	187,956,957	$	35,706,211
Units outstanding		222,552		7,720,862		74,548,879		8,313,457		11,451,459		1,927,803
Unit value	$	24.79	$	16.66	$	16.37	$	18.72	$	16.41	$	18.52
Shares		202,292		8,165,480		77,469,010		9,881,334		11,873,465		2,257,030
Cost	$	4,056,621	$	78,710,503	$	717,049,735	$	93,357,781	$	133,482,677	$	30,077,335

See accompanying notes.

7

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	American Growth Trust Series II		American Growth Trust Series III		American Growth- Income Trust Series I		American Growth- Income Trust Series II		American Growth- Income Trust Series III		American International Trust Series II
Total Assets
Investments at fair value	$	700,996,991	$	105,950,108	$	138,553,567	$	631,381,475	$	250,886,886	$	413,221,046
Net Assets
Contracts in accumulation	$	700,549,323	$	105,946,532	$	138,236,472	$	631,152,431	$	250,883,015	$	413,067,845
Contracts in payout (annuitization)		447,668		3,576		317,095		229,044		3,871		153,201
Total net assets	$	700,996,991	$	105,950,108	$	138,553,567	$	631,381,475	$	250,886,886	$	413,221,046
Units outstanding		26,774,913		5,690,275		5,063,511		25,595,484		12,768,495		16,755,878
Unit value	$	26.18	$	18.62	$	27.36	$	24.67	$	19.65	$	24.66
Shares		29,220,383		4,418,270		5,773,065		26,351,481		10,471,072		22,408,950
Cost	$	350,521,608	$	63,369,595	$	78,425,135	$	336,853,251	$	174,115,434	$	303,827,333

See accompanying notes.

8

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	American International Trust Series III		American New World Trust Series II		American New World Trust Series III		Basic Value Focus (h)		Blue Chip Growth Trust Series I		Blue Chip Growth Trust Series II
Total Assets
Investments at fair value	$	49,357,354	$	47,465,060	$	1,800,258	$	6,234,514	$	241,041,488	$	115,623,749
Net Assets
Contracts in accumulation	$	49,355,521	$	47,452,254	$	1,800,258	$	6,217,793	$	240,561,124	$	115,606,006
Contracts in payout (annuitization)		1,833		12,806		—		16,721		480,364		17,743
Total net assets	$	49,357,354	$	47,465,060	$	1,800,258	$	6,234,514	$	241,041,488	$	115,623,749
Units outstanding		3,497,247		3,510,152		133,762		164,182		6,546,665		4,482,415
Unit value	$	14.11	$	13.52	$	13.46	$	37.97	$	36.82	$	25.80
Shares		2,682,465		3,593,116		136,590		380,617		6,717,990		3,257,007
Cost	$	41,526,734	$	46,974,024	$	1,755,404	$	4,918,305	$	130,346,117	$	77,932,928

(h) Sub-account that invests in non-affiliated Trust.

See accompanying notes.

9

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	Bond Trust Series I		Bond Trust Series II		Capital Appreciation Trust Series I		Capital Appreciation Trust Series II		Capital Appreciation Value Trust Series II		Core Bond Trust Series II
Total Assets
Investments at fair value	$	225,311,120	$	484,137,216	$	146,788,733	$	64,337,134	$	308,165,781	$	6,845,741
Net Assets
Contracts in accumulation	$	225,307,034	$	484,069,492	$	146,325,721	$	64,308,857	$	308,165,781	$	6,845,741
Contracts in payout (annuitization)		4,086		67,724		463,012		28,277		—		—
Total net assets	$	225,311,120	$	484,137,216	$	146,788,733	$	64,337,134	$	308,165,781	$	6,845,741
Units outstanding		16,632,071		37,160,585		8,921,720		2,665,439		15,683,297		400,200
Unit value	$	13.55	$	13.03	$	16.45	$	24.14	$	19.65	$	17.11
Shares		16,482,159		35,364,296		9,488,606		4,227,144		24,169,865		518,224
Cost	$	227,678,897	$	488,590,225	$	98,574,568	$	48,916,939	$	264,591,492	$	6,951,259

See accompanying notes.

10

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	Core Strategy Trust Series I		Core Strategy Trust Series II		Core Strategy Trust Series NAV		DWS Equity 500 Index (h)		Equity-Income Trust Series I		Equity-Income Trust Series II
Total Assets
Investments at fair value	$	133,128,933	$	3,409,588,039	$	8,159,941	$	14,975,930	$	234,873,528	$	146,803,522
Net Assets
Contracts in accumulation	$	133,128,933	$	3,409,460,426	$	8,159,941	$	14,968,071	$	234,003,059	$	146,613,419
Contracts in payout (annuitization)		—		127,613		—		7,859		870,469		190,103
Total net assets	$	133,128,933	$	3,409,588,039	$	8,159,941	$	14,975,930	$	234,873,528	$	146,803,522
Units outstanding		9,263,197		190,432,761		422,522		472,447		5,548,872		6,397,175
Unit value	$	14.37	$	17.90	$	19.31	$	31.70	$	42.33	$	22.95
Shares		8,904,945		227,154,433		545,451		734,114		12,258,535		7,686,048
Cost	$	127,717,969	$	3,234,143,867	$	7,014,653	$	10,195,829	$	185,452,147	$	114,328,039

(h) Sub-account that invests in non-affiliated Trust.

See accompanying notes.

11

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	Financial Industries Trust Series I (f)		Financial Industries Trust Series II (f)		Franklin Templeton Founding Allocation Trust Series I		Franklin Templeton Founding Allocation Trust Series II		Fundamental All Cap Core Trust Series II		Fundamental Large Cap Value Trust Series I
Total Assets
Investments at fair value	$	11,204,146	$	18,786,137	$	44,968,829	$	1,087,384,572	$	52,080,987	$	281,432,969
Net Assets
Contracts in accumulation	$	11,204,146	$	18,777,763	$	44,968,829	$	1,087,384,572	$	52,073,998	$	280,582,819
Contracts in payout (annuitization)		—		8,374		—		—		6,989		850,150
Total net assets	$	11,204,146	$	18,786,137	$	44,968,829	$	1,087,384,572	$	52,080,987	$	281,432,969
Units outstanding		582,868		933,415		2,563,067		73,303,818		1,757,592		11,918,462
Unit value	$	19.22	$	20.13	$	17.54	$	14.83	$	29.63	$	23.61
Shares		655,213		1,103,768		3,453,827		83,388,387		2,314,711		16,063,526
Cost	$	7,900,062	$	13,588,163	$	31,025,562	$	839,421,344	$	31,297,802	$	279,528,659

(f) Renamed on November 10, 2014. Previously known as Financial Services Trust.

See accompanying notes.

12

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	Fundamental Large Cap Value Trust Series II		Global Allocation (h)		Global Bond Trust Series I		Global Bond Trust Series II		Global Trust Series I		Global Trust Series II
Total Assets
Investments at fair value	$	234,102,730	$	766,447	$	40,723,044	$	101,853,797	$	148,670,952	$	52,928,122
Net Assets
Contracts in accumulation	$	233,821,930	$	766,447	$	40,638,133	$	101,803,124	$	148,370,999	$	52,797,399
Contracts in payout (annuitization)		280,800		—		84,911		50,673		299,953		130,723
Total net assets	$	234,102,730	$	766,447	$	40,723,044	$	101,853,797	$	148,670,952	$	52,928,122
Units outstanding		10,924,556		40,007		1,394,459		5,230,553		5,984,113		2,679,409
Unit value	$	21.43	$	19.16	$	29.20	$	19.47	$	24.84	$	19.75
Shares		13,271,130		47,370		3,244,864		8,194,191		7,593,001		2,712,871
Cost	$	228,972,642	$	652,549	$	41,310,618	$	105,872,917	$	116,706,031	$	50,066,508

(h) Sub-account that invests in non-affiliated Trust.

See accompanying notes.

13

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	Health Sciences		Health Sciences		High Yield Trust		High Yield Trust		International Core		International Core
	Trust Series I		Trust Series II		Series I		Series II		Trust Series I		Trust Series II
Total Assets
Investments at fair value	$	67,381,873	$	88,686,796	$	84,031,127	$	81,511,521	$	23,157,089	$	15,719,921
Net Assets
Contracts in accumulation	$	67,207,682	$	88,679,283	$	83,852,864	$	81,339,870	$	23,087,359	$	15,702,481
Contracts in payout (annuitization)		174,191		7,513		178,263		171,651		69,730		17,440
Total net assets	$	67,381,873	$	88,686,796	$	84,031,127	$	81,511,521	$	23,157,089	$	15,719,921
Units outstanding		1,197,219		1,601,816		4,995,857		3,758,891		1,370,753		869,252
Unit value	$	56.28	$	55.37	$	16.82	$	21.69	$	16.89	$	18.08
Shares		2,008,402		2,745,721		14,742,303		14,053,711		2,201,244		1,481,614
Cost	$	48,255,388	$	67,266,621	$	91,081,232	$	88,827,218	$	20,711,450	$	14,993,195

See accompanying notes.

14

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	International Equity Index Trust B Series I		International Equity Index Trust B Series II		International Equity Index Trust B Series NAV		International Growth Stock Trust Series II		International Small Company Trust Series I		International Small Company Trust Series II
Total Assets
Investments at fair value	$	18,203,068	$	18,094,590	$	14,176,433	$	18,760,653	$	26,889,803	$	17,482,196
Net Assets
Contracts in accumulation	$	18,143,732	$	18,094,590	$	14,169,917	$	18,688,384	$	26,832,345	$	17,482,196
Contracts in payout (annuitization)		59,336		—		6,516		72,269		57,458		—
Total net assets	$	18,203,068	$	18,094,590	$	14,176,433	$	18,760,653	$	26,889,803	$	17,482,196
Units outstanding		1,294,175		1,298,172		1,263,800		1,249,862		1,633,196		1,088,144
Unit value	$	14.07	$	13.94	$	11.22	$	15.01	$	16.46	$	16.07
Shares		1,148,459		1,140,176		894,977		1,130,160		2,322,090		1,510,994
Cost	$	17,270,873	$	17,284,845	$	13,103,483	$	16,564,915	$	22,571,360	$	15,917,590

See accompanying notes.

15

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	International Value Trust Series I		International Value Trust Series II		Investment Quality Bond Trust Series I		Investment Quality Bond Trust Series II		Lifestyle Aggressive MVP Series I (a)		Lifestyle Aggressive MVP Series II (a)
Total Assets
Investments at fair value	$	70,197,841	$	65,854,943	$	165,085,857	$	87,725,052	$	82,915,377	$	127,276,863
Net Assets
Contracts in accumulation	$	70,007,159	$	65,797,575	$	164,836,105	$	87,715,249	$	82,854,650	$	127,276,863
Contracts in payout (annuitization)		190,682		57,368		249,752		9,803		60,727		—
Total net assets	$	70,197,841	$	65,854,943	$	165,085,857	$	87,725,052	$	82,915,377	$	127,276,863
Units outstanding		3,689,892		3,209,864		8,695,039		4,822,048		3,743,208		5,899,699
Unit value	$	19.02	$	20.52	$	18.99	$	18.19	$	22.15	$	21.57
Shares		5,597,914		5,259,979		14,170,460		7,523,589		7,713,058		11,861,777
Cost	$	66,076,542	$	59,022,288	$	166,110,076	$	88,596,890	$	64,692,609	$	96,726,652

(a) Renamed on May 5, 2014. Previously known as Lifestyle Aggressive Trust.

See accompanying notes.

16

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	Lifestyle Aggressive Trust PS Series I (g)		Lifestyle Aggressive Trust PS Series II		Lifestyle Balanced MVP Series I (b)		Lifestyle Balanced MVP Series II (b)		Lifestyle Balanced MVP Series NAV (b)		Lifestyle Balanced Trust PS Series I
Total Assets
Investments at fair value	$	740,145	$	3,850,593	$	591,421,436	$	7,664,452,325	$	90,986	$	10,782,788
Net Assets
Contracts in accumulation	$	740,145	$	3,850,593	$	590,845,413	$	7,663,269,089	$	90,986	$	10,782,788
Contracts in payout (annuitization)		—		—		576,023		1,183,236		—		—
Total net assets	$	740,145	$	3,850,593	$	591,421,436	$	7,664,452,325	$	90,986	$	10,782,788
Units outstanding		55,686		291,089		28,771,889		393,696,426		5,151		814,601
Unit value	$	13.29	$	13.23	$	20.56	$	19.47	$	17.66	$	13.24
Shares		57,914		301,298		42,640,334		555,395,096		6,550		760,422
Cost	$	758,332	$	3,866,058	$	496,779,789	$	6,355,936,239	$	80,046	$	10,789,597

(b) Renamed on May 5, 2014. Previously known as Lifestyle Balanced Trust.

(g) Sub-account available in prior year but no activity.

See accompanying notes.

17

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	Lifestyle Balanced Trust PS Series II		Lifestyle Conservative MVP Series I (c)		Lifestyle Conservative MVP Series II (c)		Lifestyle Conservative Trust PS Series I (g)		Lifestyle Conservative Trust PS Series II		Lifestyle Growth MVP Series I (d)
Total Assets
Investments at fair value	$	476,031,888	$	150,457,952	$	1,507,981,635	$	3,921,203	$	90,742,438	$	597,198,604
Net Assets
Contracts in accumulation	$	476,031,888	$	150,290,805	$	1,507,886,520	$	3,921,203	$	90,742,438	$	596,350,137
Contracts in payout (annuitization)		—		167,147		95,115		—		—		848,467
Total net assets	$	476,031,888	$	150,457,952	$	1,507,981,635	$	3,921,203	$	90,742,438	$	597,198,604
Units outstanding		32,131,824		7,240,299		81,391,752		300,503		6,575,522		30,350,816
Unit value	$	14.82	$	20.78	$	18.53	$	13.05	$	13.80	$	19.68
Shares		33,499,781		12,414,022		125,143,704		294,164		6,797,186		42,264,586
Cost	$	454,069,806	$	159,807,324	$	1,589,694,088	$	4,001,113	$	90,248,451	$	495,113,406

(c) Renamed on May 5, 2014. Previously known as Lifestyle Conservative Trust.

(d) Renamed on May 5, 2014. Previously known as Lifestyle Growth Trust.

(g) Sub-account available in prior year but no activity.

See accompanying notes.

18

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	Lifestyle Growth MVP Series II (d)		Lifestyle Growth MVP Series NAV (d)		Lifestyle Growth Trust PS Series I		Lifestyle Growth Trust PS Series II		Lifestyle Moderate MVP Series I (e)		Lifestyle Moderate MVP Series II (e)
Total Assets
Investments at fair value	$	10,822,610,814	$	686,770	$	21,318,598	$	1,280,302,458	$	219,647,556	$	2,395,035,737
Net Assets
Contracts in accumulation	$	10,822,356,986	$	686,770	$	21,318,598	$	1,280,302,458	$	218,077,024	$	2,394,703,405
Contracts in payout (annuitization)		253,828		—		—		—		1,570,532		332,332
Total net assets	$	10,822,610,814	$	686,770	$	21,318,598	$	1,280,302,458	$	219,647,556	$	2,395,035,737
Units outstanding		555,246,914		36,483		1,596,940		85,784,863		10,258,100		124,617,516
Unit value	$	19.49	$	18.82	$	13.35	$	14.92	$	21.41	$	19.22
Shares		767,561,051		48,535		1,435,596		86,157,635		16,514,854		181,030,668
Cost	$	8,967,765,150	$	585,721	$	21,171,372	$	1,233,816,561	$	203,888,684	$	2,092,312,904

(d) Renamed on May 5, 2014. Previously known as Lifestyle Growth Trust.

(e) Renamed on May 5, 2014. Previously known as Lifestyle Moderate Trust.

See accompanying notes.

19

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	Lifestyle Moderate Trust PS Series I		Lifestyle Moderate Trust PS Series II		Mid Cap Index Trust Series I		Mid Cap Index Trust Series II		Mid Cap Stock Trust Series I		Mid Cap Stock Trust Series II
Total Assets
Investments at fair value	$	3,519,723	$	159,487,879	$	32,305,875	$	60,840,171	$	153,598,753	$	85,015,236
Net Assets
Contracts in accumulation	$	3,519,723	$	159,487,879	$	32,272,172	$	60,685,082	$	153,497,694	$	84,994,244
Contracts in payout (annuitization)		—		—		33,703		155,089		101,059		20,992
Total net assets	$	3,519,723	$	159,487,879	$	32,305,875	$	60,840,171	$	153,598,753	$	85,015,236
Units outstanding		267,187		10,888,260		969,590		2,030,534		6,124,526		2,734,626
Unit value	$	13.17	$	14.65	$	33.32	$	29.96	$	25.08	$	31.09
Shares		252,310		11,416,455		1,449,344		2,738,081		8,253,560		4,725,694
Cost	$	3,559,083	$	153,362,617	$	25,727,697	$	47,944,571	$	120,892,331	$	74,093,450

See accompanying notes.

20

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	Mid Value Trust Series I		Mid Value Trust Series II		Money Market Trust B Series NAV		Money Market Trust Series I		Money Market Trust Series II		Mutual Shares Trust Series I
Total Assets
Investments at fair value	$	61,677,107	$	65,970,477	$	12,410,055	$	67,225,819	$	291,292,417	$	199,493,537
Net Assets
Contracts in accumulation	$	61,561,952	$	65,934,864	$	12,400,241	$	66,968,581	$	290,671,214	$	199,488,866
Contracts in payout (annuitization)		115,155		35,613		9,814		257,238		621,203		4,671
Total net assets	$	61,677,107	$	65,970,477	$	12,410,055	$	67,225,819	$	291,292,417	$	199,493,537
Units outstanding		2,273,179		2,515,656		1,052,720		4,544,345		24,580,792		11,387,904
Unit value	$	27.13	$	26.22	$	11.79	$	14.79	$	11.85	$	17.52
Shares		4,418,131		4,722,296		12,410,055		67,225,819		291,292,417		14,229,211
Cost	$	45,134,548	$	48,556,726	$	12,410,055	$	67,225,819	$	291,292,417	$	134,147,314

See accompanying notes.

21

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	PIMCO All Asset (h)		Real Estate Securities Trust Series I		Real Estate Securities Trust Series II		Real Return Bond Trust Series II		Science & Technology Trust Series I		Science & Technology Trust Series II
Total Assets
Investments at fair value	$	21,234,591	$	49,462,648	$	57,638,180	$	33,242,486	$	92,552,844	$	42,083,709
Net Assets
Contracts in accumulation	$	21,219,572	$	49,313,340	$	57,575,346	$	33,192,054	$	92,295,970	$	42,073,488
Contracts in payout (annuitization)		15,019		149,308		62,834		50,432		256,874		10,221
Total net assets	$	21,234,591	$	49,462,648	$	57,638,180	$	33,242,486	$	92,552,844	$	42,083,709
Units outstanding		1,118,331		1,044,744		1,574,897		1,884,735		4,178,464		1,614,981
Unit value	$	18.99	$	47.34	$	36.60	$	17.64	$	22.15	$	26.06
Shares		2,016,580		2,755,579		3,205,683		2,810,016		3,417,756		1,589,264
Cost	$	22,708,687	$	33,709,311	$	43,189,351	$	35,238,425	$	51,346,941	$	31,058,831

(h) Sub-account that invests in non-affiliated Trust.

See accompanying notes.

22

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	Short Term Government Income Trust Series I		Short Term Government Income Trust Series II		Small Cap Growth Trust Series I		Small Cap Growth Trust Series II		Small Cap Index Trust Series I		Small Cap Index Trust Series II
Total Assets
Investments at fair value	$	38,732,892	$	33,680,182	$	681,933	$	31,257,951	$	14,672,523	$	44,641,155
Net Assets
Contracts in accumulation	$	38,479,087	$	33,609,250	$	681,933	$	31,256,331	$	14,642,973	$	44,567,655
Contracts in payout (annuitization)		253,805		70,932		—		1,620		29,550		73,500
Total net assets	$	38,732,892	$	33,680,182	$	681,933	$	31,257,951	$	14,672,523	$	44,641,155
Units outstanding		3,108,011		2,753,814		31,425		1,129,386		555,520		1,645,216
Unit value	$	12.46	$	12.23	$	21.70	$	27.68	$	26.41	$	27.13
Shares		3,126,141		2,716,144		58,385		2,758,866		952,761		2,910,114
Cost	$	40,046,294	$	34,605,927	$	606,621	$	29,976,685	$	12,549,769	$	37,219,031

See accompanying notes.

23

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	Small Cap Opportunities Trust Series I		Small Cap Opportunities Trust Series II		Small Cap Value Trust Series I		Small Cap Value Trust Series II		Small Company Value Trust Series I		Small Company Value Trust Series II
Total Assets
Investments at fair value	$	49,882,771	$	39,455,415	$	743,209	$	38,877,818	$	51,324,065	$	51,135,643
Net Assets
Contracts in accumulation	$	49,847,830	$	39,448,087	$	743,209	$	38,856,731	$	51,151,144	$	51,120,523
Contracts in payout (annuitization)		34,941		7,328		—		21,087		172,921		15,120
Total net assets	$	49,882,771	$	39,455,415	$	743,209	$	38,877,818	$	51,324,065	$	51,135,643
Units outstanding		1,507,500		1,272,553		29,719		1,438,902		1,448,038		1,802,596
Unit value	$	33.09	$	31.00	$	25.01	$	27.02	$	35.44	$	28.37
Shares		1,580,569		1,266,220		30,199		1,585,555		2,075,377		2,094,865
Cost	$	43,065,400	$	32,341,194	$	613,419	$	34,462,066	$	30,565,050	$	29,990,291

See accompanying notes.

24

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	Strategic Income Opportunities Trust Series I		Strategic Income Opportunities Trust Series II		Total Bond Market Trust B Series II		Total Bond Market Trust B Series NAV		Total Return Trust Series I		Total Return Trust Series II
Total Assets
Investments at fair value	$	47,033,919	$	48,604,122	$	62,954,263	$	125,388,642	$	120,418,062	$	138,687,270
Net Assets
Contracts in accumulation	$	46,896,342	$	48,598,951	$	62,954,263	$	125,384,619	$	120,236,321	$	138,504,729
Contracts in payout (annuitization)		137,577		5,171		—		4,023		181,741		182,541
Total net assets	$	47,033,919	$	48,604,122	$	62,954,263	$	125,388,642	$	120,418,062	$	138,687,270
Units outstanding		2,158,995		2,350,596		5,061,304		9,895,822		5,259,683		7,250,247
Unit value	$	21.79	$	20.68	$	12.44	$	12.67	$	22.89	$	19.13
Shares		3,552,411		3,662,707		6,064,958		12,103,151		8,738,611		10,079,017
Cost	$	49,260,530	$	50,090,262	$	63,560,342	$	129,639,049	$	124,741,318	$	143,860,437

See accompanying notes.

25

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	Total Stock Market Index Trust Series I		Total Stock Market Index Trust Series II		U.S. Equity Trust Series I		U.S. Equity Trust Series II		Ultra Short Term Bond Trust Series I		Ultra Short Term Bond Trust Series II
Total Assets
Investments at fair value	$	17,375,283	$	35,266,110	$	107,450,481	$	7,037,445	$	8,810,337	$	201,812,773
Net Assets
Contracts in accumulation	$	17,298,236	$	35,204,814	$	107,246,279	$	7,037,378	$	8,810,337	$	201,812,773
Contracts in payout (annuitization)		77,047		61,296		204,202		67		—		—
Total net assets	$	17,375,283	$	35,266,110	$	107,450,481	$	7,037,445	$	8,810,337	$	201,812,773
Units outstanding		888,250		1,407,163		6,092,849		403,732		727,585		17,287,474
Unit value	$	19.56	$	25.06	$	17.64	$	17.43	$	12.11	$	11.67
Shares		937,684		1,908,339		5,541,541		362,942		746,639		17,117,284
Cost	$	12,411,883	$	23,805,655	$	77,827,759	$	5,381,871	$	8,897,260	$	204,220,720

See accompanying notes.

26

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Assets and Liabilities

December 31, 2014

	Utilities Trust Series I		Utilities Trust Series II		Value Opportunities (h)		Value Trust Series I		Value Trust Series II
Total Assets
Investments at fair value	$	19,899,373	$	18,763,451	$	3,763,538	$	88,764,765	$	28,391,341
Net Assets
Contracts in accumulation	$	19,846,634	$	18,762,013	$	3,763,538	$	88,418,269	$	28,371,409
Contracts in payout (annuitization)		52,739		1,438		—		346,496		19,932
Total net assets	$	19,899,373	$	18,763,451	$	3,763,538	$	88,764,765	$	28,391,341
Units outstanding		649,684		418,688		72,469		2,626,747		919,565
Unit value	$	30.63	$	44.81	$	51.93	$	33.79	$	30.87
Shares		1,223,071		1,162,543		139,856		3,448,515		1,106,875
Cost	$	16,577,177	$	15,705,308	$	2,377,314	$	56,602,891	$	21,803,600

(h) Sub-account that invests in non-affiliated Trust.

See accompanying notes.

27

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	500 Index Fund B Series I						500 Index Fund B Series II						500 Index Fund B Series NAV
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	745,327		$	864,514		$	579,574		$	609,108		$	3,762,469		$	4,273,997
Expenses:
Mortality and expense risk and administrative charges		(769,419	)		(727,365	)		(691,281	)		(644,235	)		(2,463,470	)		(2,461,256	)
Net investment income (loss)		(24,092	)		137,149			(111,707	)		(35,127	)		1,298,999			1,812,741
Realized gains (losses) on investments:
Capital gain distributions received		681,449			100,468			608,878			79,256			3,516,761			486,196
Net realized gain (loss)		3,440,942			1,540,773			2,421,084			1,649,375			12,208,152			5,915,029
Realized gains (losses)		4,122,391			1,641,241			3,029,962			1,728,631			15,724,913			6,401,225
Unrealized appreciation (depreciation) during the period		1,308,212			10,617,387			1,559,771			8,604,767			11,034,633			55,956,841
Net increase (decrease) in contract owners’ equity from operations		5,406,511			12,395,777			4,478,026			10,298,271			28,058,545			64,170,807
Changes from principal transactions:
Purchase payments		102,573			130,101			149,185			122,318			810,486			913,563
Transfers between sub-accounts and the company		(1,180,354	)		4,871,155			3,211,384			1,369,814			(7,804,430	)		(16,595,352	)
Withdrawals		(5,821,862	)		(5,801,869	)		(4,845,769	)		(7,517,947	)		(33,701,269	)		(20,381,875	)
Annual contract fee		(181,721	)		(168,643	)		(158,201	)		(159,462	)		(1,926,242	)		(1,945,073	)
Net increase (decrease) in contract owners’ equity from principal transactions		(7,081,364	)		(969,256	)		(1,643,401	)		(6,185,277	)		(42,621,455	)		(38,008,737	)
Total increase (decrease) in contract owners’ equity		(1,674,853	)		11,426,521			2,834,625			4,112,994			(14,562,910	)		26,162,070
Contract owners’ equity at beginning of period		52,972,912			41,546,391			42,128,602			38,015,608			250,124,752			223,962,682
Contract owners’ equity at end of period	$	51,298,059		$	52,972,912		$	44,963,227		$	42,128,602		$	235,561,842		$	250,124,752
	2014			2013			2014			2013			2014			2013
Units, beginning of period		3,220,415			3,285,208			2,574,765			3,010,183			15,237,639			17,843,815
Units issued		404,669			645,132			408,773			379,283			129,161			277,446
Units redeemed		(832,449	)		(709,925	)		(514,567	)		(814,701	)		(2,594,423	)		(2,883,622	)
Units, end of period		2,792,635			3,220,415			2,468,971			2,574,765			12,772,377			15,237,639

See accompanying notes.

28

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Active Bond Trust Series I						Active Bond Trust Series II						All Cap Core Trust Series I
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	1,434,848		$	2,352,668		$	6,715,914		$	12,160,984		$	405,448		$	548,598
Expenses:
Mortality and expense risk and administrative charges		(578,362	)		(633,879	)		(3,312,783	)		(3,672,220	)		(639,416	)		(649,660	)
Net investment income (loss)		856,486			1,718,789			3,403,131			8,488,764			(233,968	)		(101,062	)
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			—			—
Net realized gain (loss)		519,527			972,443			6,802,966			4,250,835			3,227,450			3,565,179
Realized gains (losses)		519,527			972,443			6,802,966			4,250,835			3,227,450			3,565,179
Unrealized appreciation (depreciation) during the period		647,370			(3,206,212	)		(163,220	)		(16,217,400	)		353,034			8,848,259
Net increase (decrease) in contract owners’ equity from operations		2,023,383			(514,980	)		10,042,877			(3,477,801	)		3,346,516			12,312,376
Changes from principal transactions:
Purchase payments		104,132			57,731			281,165			271,658			60,194			90,610
Transfers between sub-accounts and the company		1,972,069			(1,010,749	)		(147,284	)		22,702,447			(1,841,876	)		(1,808,784	)
Withdrawals		(5,428,038	)		(6,345,211	)		(42,359,461	)		(39,431,583	)		(4,730,827	)		(5,166,541	)
Annual contract fee		(55,274	)		(66,831	)		(638,822	)		(762,685	)		(74,317	)		(127,963	)
Net increase (decrease) in contract owners’ equity from principal transactions		(3,407,111	)		(7,365,060	)		(42,864,402	)		(17,220,163	)		(6,586,826	)		(7,012,678	)
Total increase (decrease) in contract owners’ equity		(1,383,728	)		(7,880,040	)		(32,821,525	)		(20,697,964	)		(3,240,310	)		5,299,698
Contract owners’ equity at beginning of period		39,729,150			47,609,190			220,186,744			240,884,708			46,247,606			40,947,908
Contract owners’ equity at end of period	$	38,345,422		$	39,729,150		$	187,365,219		$	220,186,744		$	43,007,296		$	46,247,606
	2014			2013			2014			2013			2014			2013
Units, beginning of period		2,205,233			2,611,075			12,635,236			13,606,594			1,966,094			2,321,056
Units issued		223,570			105,161			437,140			1,812,455			17,709			124,087
Units redeemed		(405,263	)		(511,003	)		(2,820,873	)		(2,783,813	)		(294,465	)		(479,049	)
Units, end of period		2,023,540			2,205,233			10,251,503			12,635,236			1,689,338			1,966,094

See accompanying notes.

29

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	All Cap Core Trust Series II						All Cap Value Trust Series I					All Cap Value Trust Series II
	2014			2013			2014		2013 (m)			2014		2013 (m)
Income:
Dividend distributions received	$	45,052		$	74,688		$	—	$	283,918		$	—	$	237,165
Expenses:
Mortality and expense risk and administrative charges		(97,810	)		(116,880	)		—		(326,438	)		—		(358,985	)
Net investment income (loss)		(52,758	)		(42,192	)		—		(42,520	)		—		(121,820	)
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—		11,252,839			—		11,379,376
Net realized gain (loss)		742,168			598,374			—		(2,540,102	)		—		(3,094,282	)
Realized gains (losses)		742,168			598,374			—		8,712,737			—		8,285,094
Unrealized appreciation (depreciation) during the period		(282,684	)		1,458,983			—		(2,835,761	)		—		(2,321,892	)
Net increase (decrease) in contract owners’ equity from operations		406,726			2,015,165			—		5,834,456			—		5,841,382
Changes from principal transactions:
Purchase payments		45,482			54,059			—		56,056			—		175,636
Transfers between sub-accounts and the company		(867,998	)		184,867			—		(23,397,035	)		—		(23,662,078	)
Withdrawals		(1,242,236	)		(1,863,587	)		—		(2,388,662	)		—		(3,263,581	)
Annual contract fee		(35,091	)		(41,634	)		—		(54,602	)		—		(79,068	)
Net increase (decrease) in contract owners’ equity from principal transactions		(2,099,843	)		(1,666,295	)		—		(25,784,243	)		—		(26,829,091	)
Total increase (decrease) in contract owners’ equity		(1,693,117	)		348,870			—		(19,949,787	)		—		(20,987,709	)
Contract owners’ equity at beginning of period		7,209,627			6,860,757			—		19,949,787			—		20,987,709
Contract owners’ equity at end of period	$	5,516,510		$	7,209,627		$	—	$	—		$	—	$	—
	2014			2013			2014		2013			2014		2013
Units, beginning of period		310,891			390,303			—		1,128,266			—		1,114,363
Units issued		34,621			106,810			—		182,627			—		151,158
Units redeemed		(122,960	)		(186,222	)		—		(1,310,893	)		—		(1,265,521	)
Units, end of period		222,552			310,891			—		—			—		—

(m) Terminated as an investment option and funds transferred to Fundamental Large Cap Value Trust on December 9, 2013.

See accompanying notes.

30

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	American Asset Allocation Trust Series I						American Asset Allocation Trust Series II						American Asset Allocation Trust Series III
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	1,932,132		$	1,415,061		$	16,588,739		$	11,504,846		$	2,858,454		$	2,281,833
Expenses:
Mortality and expense risk and administrative charges		(1,959,630	)		(1,992,008	)		(18,754,679	)		(18,904,144	)		(1,463,082	)		(1,458,935	)
Net investment income (loss)		(27,498	)		(576,947	)		(2,165,940	)		(7,399,298	)		1,395,372			822,898
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			—			—
Net realized gain (loss)		10,768,019			8,920,612			45,879,588			25,958,944			13,867,350			7,709,378
Realized gains (losses)		10,768,019			8,920,612			45,879,588			25,958,944			13,867,350			7,709,378
Unrealized appreciation (depreciation) during the period		(6,119,206	)		18,216,378			(2,147,586	)		225,923,760			(8,018,158	)		25,236,827
Net increase (decrease) in contract owners’ equity from operations		4,621,315			26,560,043			41,566,062			244,483,406			7,244,564			33,769,103
Changes from principal transactions:
Purchase payments		301,247			191,097			3,011,481			3,729,520			407,601			533,564
Transfers between sub-accounts and the company		(82,137	)		(854,087	)		(13,227,875	)		(17,014,754	)		(4,125,568	)		(1,277,444	)
Withdrawals		(16,753,696	)		(16,010,128	)		(123,820,453	)		(107,461,193	)		(20,008,662	)		(15,141,081	)
Annual contract fee		(153,470	)		(182,864	)		(8,098,759	)		(8,269,508	)		(868,665	)		(864,877	)
Net increase (decrease) in contract owners’ equity from principal transactions		(16,688,056	)		(16,855,982	)		(142,135,606	)		(129,015,935	)		(24,595,294	)		(16,749,838	)
Total increase (decrease) in contract owners’ equity		(12,066,741	)		9,704,061			(100,569,544	)		115,467,471			(17,350,730	)		17,019,265
Contract owners’ equity at beginning of period		140,673,053			130,968,992			1,320,706,446			1,205,238,975			172,981,741			155,962,476
Contract owners’ equity at end of period	$	128,606,312		$	140,673,053		$	1,220,136,902		$	1,320,706,446		$	155,631,011		$	172,981,741
	2014			2013			2014			2013			2014			2013
Units, beginning of period		8,751,576			9,904,931			83,069,590			91,998,332			9,650,116			10,674,749
Units issued		307,440			257,092			7,733,727			1,189,323			71,655			30,125
Units redeemed		(1,338,154	)		(1,410,447	)		(16,254,438	)		(10,118,065	)		(1,408,314	)		(1,054,758	)
Units, end of period		7,720,862			8,751,576			74,548,879			83,069,590			8,313,457			9,650,116

See accompanying notes.

31

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	American Global Growth Trust Series II						American Global Growth Trust Series III						American Global Small Capitalization Trust Series II
	2014			2013			2014			2013			2014		2013 (j)
Income:
Dividend distributions received	$	1,258,782		$	1,499,379		$	410,993		$	453,673		$	—	$	82,450
Expenses:
Mortality and expense risk and administrative charges		(3,005,841	)		(2,918,368	)		(343,028	)		(257,135	)		—		(254,681	)
Net investment income (loss)		(1,747,059	)		(1,418,989	)		67,965			196,538			—		(172,231	)
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			—		—
Net realized gain (loss)		12,747,821			7,583,899			1,138,788			1,552,184			—		12,469,288
Realized gains (losses)		12,747,821			7,583,899			1,138,788			1,552,184			—		12,469,288
Unrealized appreciation (depreciation) during the period		(10,594,633	)		39,632,918			(714,869	)		5,561,516			—		(7,386,896	)
Net increase (decrease) in contract owners’ equity from operations		406,129			45,797,828			491,884			7,310,238			—		4,910,161
Changes from principal transactions:
Purchase payments		682,211			562,757			129,469			94,449			—		135,100
Transfers between sub-accounts and the company		(3,472,041	)		33,329,771			488,510			31,818,017			—		(54,025,805	)
Withdrawals		(24,089,261	)		(16,318,363	)		(5,053,449	)		(3,272,759	)		—		(1,261,720	)
Annual contract fee		(1,068,069	)		(1,105,156	)		(182,530	)		(106,358	)		—		(45,830	)
Net increase (decrease) in contract owners’ equity from principal transactions		(27,947,160	)		16,469,009			(4,618,000	)		28,533,349			—		(55,198,255	)
Total increase (decrease) in contract owners’ equity		(27,541,031	)		62,266,837			(4,126,116	)		35,843,587			—		(50,288,094	)
Contract owners’ equity at beginning of period		215,497,988			153,231,151			39,832,327			3,988,740			—		50,288,094
Contract owners’ equity at end of period	$	187,956,957		$	215,497,988		$	35,706,211		$	39,832,327		$	—	$	—
	2014			2013			2014			2013			2014		2013
Units, beginning of period		13,048,837			11,740,931			2,179,032			280,163			—		4,714,128
Units issued		3,533,608			4,140,951			76,980			2,296,247			—		84,412
Units redeemed		(5,130,986	)		(2,833,045	)		(328,209	)		(397,378	)		—		(4,798,540	)
Units, end of period		11,451,459			13,048,837			1,927,803			2,179,032			—		—

(j) Terminated as an investment option and funds transferred to American Global Growth Trust on April 29, 2013.

See accompanying notes.

32

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	American Global Small Capitalization Trust Series III					American Growth Trust Series II						American Growth Trust Series III
	2014		2013 (j)			2014			2013			2014			2013
Income:
Dividend distributions received	$	—	$	107,952		$	4,769,195		$	2,932,996		$	1,228,907		$	937,123
Expenses:
Mortality and expense risk and administrative charges		—		(100,069	)		(11,529,632	)		(12,448,765	)		(1,008,864	)		(1,008,023	)
Net investment income (loss)		—		7,883			(6,760,437	)		(9,515,769	)		220,043			(70,900	)
Realized gains (losses) on investments:
Capital gain distributions received		—		—			—			—			—			—
Net realized gain (loss)		—		10,661,414			60,119,516			1,977,123			10,842,638			9,267,992
Realized gains (losses)		—		10,661,414			60,119,516			1,977,123			10,842,638			9,267,992
Unrealized appreciation (depreciation) during the period		—		(7,266,048	)		(8,576,618	)		200,928,200			(3,030,252	)		19,197,824
Net increase (decrease) in contract owners’ equity from operations		—		3,403,249			44,782,461			193,389,554			8,032,429			28,394,916
Changes from principal transactions:
Purchase payments		—		39,965			1,451,728			1,561,841			395,369			453,456
Transfers between sub-accounts and the company		—		(36,190,719	)		(25,514,105	)		(69,207,277	)		(2,611,792	)		(8,206,927	)
Withdrawals		—		(981,414	)		(116,954,877	)		(108,203,526	)		(15,195,321	)		(9,492,130	)
Annual contract fee		—		(90,147	)		(2,713,365	)		(3,081,762	)		(676,355	)		(690,767	)
Net increase (decrease) in contract owners’ equity from principal transactions		—		(37,222,315	)		(143,730,619	)		(178,930,724	)		(18,088,099	)		(17,936,368	)
Total increase (decrease) in contract owners’ equity		—		(33,819,066	)		(98,948,158	)		14,458,830			(10,055,670	)		10,458,548
Contract owners’ equity at beginning of period		—		33,819,066			799,945,149			785,486,319			116,005,778			105,547,230
Contract owners’ equity at end of period	$	—	$	—		$	700,996,991		$	799,945,149		$	105,950,108		$	116,005,778
	2014		2013			2014			2013			2014			2013
Units, beginning of period		—		2,882,178			32,225,684			40,001,488			6,693,866			7,849,438
Units issued		—		474			3,848,969			2,608,113			82,962			56,243
Units redeemed		—		(2,882,652	)		(9,299,740	)		(10,383,917	)		(1,086,553	)		(1,211,815	)
Units, end of period		—		—			26,774,913			32,225,684			5,690,275			6,693,866

(j) Terminated as an investment option and funds transferred to American Global Growth Trust on April 29, 2013.

See accompanying notes.

33

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	American Growth-Income Trust Series I						American Growth-Income Trust Series II						American Growth-Income Trust Series III
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	1,227,092		$	1,339,919		$	4,742,580		$	5,703,713		$	3,079,120		$	3,414,907
Expenses:
Mortality and expense risk and administrative charges		(2,114,565	)		(2,077,818	)		(10,506,009	)		(11,330,089	)		(2,402,866	)		(2,429,635	)
Net investment income (loss)		(887,473	)		(737,899	)		(5,763,429	)		(5,626,376	)		676,254			985,272
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			—			—
Net realized gain (loss)		14,842,203			11,778,579			34,511,398			(7,564,489	)		19,156,575			24,795,606
Realized gains (losses)		14,842,203			11,778,579			34,511,398			(7,564,489	)		19,156,575			24,795,606
Unrealized appreciation (depreciation) during the period		(2,233,194	)		26,756,096			25,568,340			206,003,954			4,728,620			49,737,153
Net increase (decrease) in contract owners’ equity from operations		11,721,536			37,796,776			54,316,309			192,813,089			24,561,449			75,518,031
Changes from principal transactions:
Purchase payments		267,171			211,973			1,074,836			997,193			822,292			941,797
Transfers between sub-accounts and the company		(5,068,358	)		(5,967,138	)		(31,030,312	)		(78,216,045	)		(11,851,161	)		(30,644,770	)
Withdrawals		(16,795,734	)		(15,440,986	)		(109,084,688	)		(97,313,163	)		(36,466,190	)		(24,744,753	)
Annual contract fee		(300,675	)		(323,548	)		(2,567,558	)		(2,919,498	)		(1,553,878	)		(1,608,472	)
Net increase (decrease) in contract owners’ equity from principal transactions		(21,897,596	)		(21,519,699	)		(141,607,722	)		(177,451,513	)		(49,048,937	)		(56,056,198	)
Total increase (decrease) in contract owners’ equity		(10,176,060	)		16,277,077			(87,291,413	)		15,361,576			(24,487,488	)		19,461,833
Contract owners’ equity at beginning of period		148,729,627			132,452,550			718,672,888			703,311,312			275,374,374			255,912,541
Contract owners’ equity at end of period	$	138,553,567		$	148,729,627		$	631,381,475		$	718,672,888		$	250,886,886		$	275,374,374
	2014			2013			2014			2013			2014			2013
Units, beginning of period		5,907,494			6,896,415			31,322,359			39,800,921			15,357,403			18,878,596
Units issued		161,232			163,671			3,405,963			2,587,117			50,100			43,376
Units redeemed		(1,005,215	)		(1,152,592	)		(9,132,838	)		(11,065,679	)		(2,639,008	)		(3,564,569	)
Units, end of period		5,063,511			5,907,494			25,595,484			31,322,359			12,768,495			15,357,403

See accompanying notes.

34

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	American High-Income Bond Trust Series II					American High-Income Bond Trust Series III					American International Trust Series II
	2014		2013 (p)			2014		2013 (p)			2014			2013
Income:
Dividend distributions received	$	—	$	14,771		$	—	$	79,448		$	3,639,252		$	3,787,730
Expenses:
Mortality and expense risk and administrative charges		—		(249,891	)		—		(121,966	)		(6,968,841	)		(7,735,090	)
Net investment income (loss)		—		(235,120	)		—		(42,518	)		(3,329,589	)		(3,947,360	)
Realized gains (losses) on investments:
Capital gain distributions received		—		1,183,290			—		1,019,702			—			—
Net realized gain (loss)		—		984,442			—		987,622			30,404,974			(8,197,685	)
Realized gains (losses)		—		2,167,732			—		2,007,324			30,404,974			(8,197,685	)
Unrealized appreciation (depreciation) during the period		—		(729,341	)		—		(794,602	)		(47,229,466	)		98,693,293
Net increase (decrease) in contract owners’ equity from operations		—		1,203,271			—		1,170,204			(20,154,081	)		86,548,248
Changes from principal transactions:
Purchase payments		—		54,164			—		71,566			738,050			767,888
Transfers between sub-accounts and the company		—		(50,557,337	)		—		(42,511,602	)		12,982,245			(26,330,458	)
Withdrawals		—		(2,348,594	)		—		(1,124,548	)		(70,767,340	)		(64,476,016	)
Annual contract fee		—		(42,736	)		—		(145,339	)		(1,734,654	)		(2,012,648	)
Net increase (decrease) in contract owners’ equity from principal transactions		—		(52,894,503	)		—		(43,709,923	)		(58,781,699	)		(92,051,234	)
Total increase (decrease) in contract owners’ equity		—		(51,691,232	)		—		(42,539,719	)		(78,935,780	)		(5,502,986	)
Contract owners’ equity at beginning of period		—		51,691,232			—		42,539,719			492,156,826			497,659,812
Contract owners’ equity at end of period	$	—	$	—		$	—	$	—		$	413,221,046		$	492,156,826
	2014		2013			2014		2013			2014			2013
Units, beginning of period		—		3,402,345			—		2,447,584			18,937,994			22,633,958
Units issued		—		85,348			—		68,342			3,526,607			2,244,498
Units redeemed		—		(3,487,693	)		—		(2,515,926	)		(5,708,723	)		(5,940,462	)
Units, end of period		—		—			—		—			16,755,878			18,937,994

(p) Terminated as an investment option and funds transferred to High Yield Trust on April 29, 2013.

See accompanying notes.

35

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	American International Trust Series III						American New World Trust Series II						American New World Trust Series III
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	681,496		$	668,124		$	334,513		$	444,087		$	22,805		$	25,863
Expenses:
Mortality and expense risk and administrative charges		(475,892	)		(476,499	)		(821,565	)		(882,209	)		(20,064	)		(23,197	)
Net investment income (loss)		205,604			191,625			(487,052	)		(438,122	)		2,741			2,666
Realized gains (losses) on investments:
Capital gain distributions received		—			—			1,329,764			—			48,326			—
Net realized gain (loss)		1,838,982			1,056,271			2,160,547			2,184,169			31,986			157,833
Realized gains (losses)		1,838,982			1,056,271			3,490,311			2,184,169			80,312			157,833
Unrealized appreciation (depreciation) during the period		(3,791,762	)		8,629,282			(8,130,128	)		3,283,091			(256,943	)		61,831
Net increase (decrease) in contract owners’ equity from operations		(1,747,176	)		9,877,178			(5,126,869	)		5,029,138			(173,890	)		222,330
Changes from principal transactions:
Purchase payments		160,820			187,635			244,044			194,951			5,061			5
Transfers between sub-accounts and the company		3,263,391			(1,302,952	)		454,121			(1,565,911	)		79,190			(149,581	)
Withdrawals		(6,740,052	)		(4,050,589	)		(6,673,420	)		(6,984,761	)		(230,667	)		(496,086	)
Annual contract fee		(379,099	)		(386,468	)		(190,874	)		(207,391	)		(1,334	)		(1,199	)
Net increase (decrease) in contract owners’ equity from principal transactions		(3,694,940	)		(5,552,374	)		(6,166,129	)		(8,563,112	)		(147,750	)		(646,861	)
Total increase (decrease) in contract owners’ equity		(5,442,116	)		4,324,804			(11,292,998	)		(3,533,974	)		(321,640	)		(424,531	)
Contract owners’ equity at beginning of period		54,799,470			50,474,666			58,758,058			62,292,032			2,121,898			2,546,429
Contract owners’ equity at end of period	$	49,357,354		$	54,799,470		$	47,465,060		$	58,758,058		$	1,800,258		$	2,121,898
	2014			2013			2014			2013			2014			2013
Units, beginning of period		3,743,445			4,154,207			3,886,951			4,498,260			143,538			189,733
Units issued		236,143			110,774			1,056,232			552,238			7,120			8,549
Units redeemed		(482,341	)		(521,536	)		(1,433,031	)		(1,163,547	)		(16,896	)		(54,744	)
Units, end of period		3,497,247			3,743,445			3,510,152			3,886,951			133,762			143,538

See accompanying notes.

36

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Basic Value Focus (i)						Blue Chip Growth Trust Series I						Blue Chip Growth Trust Series II
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	77,358		$	77,574		$	—		$	623,962		$	—		$	129,933
Expenses:
Mortality and expense risk and administrative charges		(94,313	)		(96,296	)		(3,635,663	)		(3,453,384	)		(1,870,641	)		(1,846,011	)
Net investment income (loss)		(16,955	)		(18,722	)		(3,635,663	)		(2,829,422	)		(1,870,641	)		(1,716,078	)
Realized gains (losses) on investments:
Capital gain distributions received		824,073			—			9,737,661			—			4,641,559			—
Net realized gain (loss)		171,443			(12,862	)		26,795,343			20,346,943			20,154,128			12,409,865
Realized gains (losses)		995,516			(12,862	)		36,533,004			20,346,943			24,795,687			12,409,865
Unrealized appreciation (depreciation) during the period		(477,814	)		2,025,334			(15,416,008	)		60,992,355			(15,309,932	)		27,750,596
Net increase (decrease) in contract owners’ equity from operations		500,747			1,993,750			17,481,333			78,509,876			7,615,114			38,444,383
Changes from principal transactions:
Purchase payments		12,764			4,014			577,101			611,040			447,437			480,927
Transfers between sub-accounts and the company		(250,352	)		(508,486	)		(8,389,939	)		(3,276,397	)		(4,503,312	)		4,384,519
Withdrawals		(727,314	)		(811,757	)		(32,471,518	)		(28,343,475	)		(19,240,951	)		(17,994,469	)
Annual contract fee		(16,841	)		(19,667	)		(405,052	)		(431,909	)		(332,541	)		(366,753	)
Net increase (decrease) in contract owners’ equity from principal transactions		(981,743	)		(1,335,896	)		(40,689,408	)		(31,440,741	)		(23,629,367	)		(13,495,776	)
Total increase (decrease) in contract owners’ equity		(480,996	)		657,854			(23,208,075	)		47,069,135			(16,014,253	)		24,948,607
Contract owners’ equity at beginning of period		6,715,510			6,057,656			264,249,563			217,180,428			131,638,002			106,689,395
Contract owners’ equity at end of period	$	6,234,514		$	6,715,510		$	241,041,488		$	264,249,563		$	115,623,749		$	131,638,002
	2014			2013			2014			2013			2014			2013
Units, beginning of period		189,858			234,668			7,738,486			8,904,367			5,432,037			6,082,613
Units issued		328			408			249,695			390,020			756,430			989,043
Units redeemed		(26,004	)		(45,218	)		(1,441,516	)		(1,555,901	)		(1,706,052	)		(1,639,619	)
Units, end of period		164,182			189,858			6,546,665			7,738,486			4,482,415			5,432,037

(i) Sub-account that invests in non-affiliated Trust.

See accompanying notes.

37

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Bond PS Series II						Bond Trust Series I						Bond Trust Series II
	2014 (k)			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	33,260		$	4,986		$	6,024,667		$	6,999,753		$	12,052,740		$	14,435,077
Expenses:
Mortality and expense risk and administrative charges		(5,954	)		(2,415	)		(2,155,376	)		(2,153,643	)		(7,865,598	)		(8,281,128	)
Net investment income (loss)		27,306			2,571			3,869,291			4,846,110			4,187,142			6,153,949
Realized gains (losses) on investments:
Capital gain distributions received		—			485			—			1,806,653			—			4,009,948
Net realized gain (loss)		(18,881	)		1,764			(436,698	)		(85,177	)		(1,324,688	)		(204,456	)
Realized gains (losses)		(18,881	)		2,249			(436,698	)		1,721,476			(1,324,688	)		3,805,492
Unrealized appreciation (depreciation) during the period		4,046			(1,732	)		7,381,562			(11,981,712	)		16,815,704			(26,939,126	)
Net increase (decrease) in contract owners’ equity from operations		12,471			3,088			10,814,155			(5,414,126	)		19,678,158			(16,979,685	)
Changes from principal transactions:
Purchase payments		—			—			718,347			860,056			672,440			753,288
Transfers between sub-accounts and the company		(195,046	)		(19,316	)		572,342			31,939,879			(6,408,114	)		68,956,183
Withdrawals		(61,592	)		(22,268	)		(32,020,371	)		(20,518,403	)		(73,984,161	)		(56,451,709	)
Annual contract fee		(957	)		(870	)		(1,557,114	)		(1,593,666	)		(2,512,371	)		(2,704,841	)
Net increase (decrease) in contract owners’ equity from principal transactions		(257,595	)		(42,454	)		(32,286,796	)		10,687,866			(82,232,206	)		10,552,921
Total increase (decrease) in contract owners’ equity		(245,124	)		(39,366	)		(21,472,641	)		5,273,740			(62,554,048	)		(6,426,764	)
Contract owners’ equity at beginning of period		245,124			284,490			246,783,761			241,510,021			546,691,264			553,118,028
Contract owners’ equity at end of period	$	—		$	245,124		$	225,311,120		$	246,783,761		$	484,137,216		$	546,691,264
	2014			2013			2014			2013			2014			2013
Units, beginning of period		19,194			21,580			19,048,138			18,221,684			43,168,464			42,147,504
Units issued		337,610			175,683			362,526			2,738,282			7,349,016			9,524,504
Units redeemed		(356,804	)		(178,069	)		(2,778,593	)		(1,911,828	)		(13,356,895	)		(8,503,544	)
Units, end of period		—			19,194			16,632,071			19,048,138			37,160,585			43,168,464

(k) Terminated as an investment option and funds transferred to Bond Trust on November 10, 2014.

See accompanying notes.

38

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Capital Appreciation Trust Series I						Capital Appreciation Trust Series II						Capital Appreciation Value Trust Series II
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	69,822		$	345,360		$	—		$	135,097		$	3,636,665		$	3,080,025
Expenses:
Mortality and expense risk and administrative charges		(2,207,471	)		(2,107,418	)		(1,020,689	)		(1,007,107	)		(4,373,824	)		(4,325,636	)
Net investment income (loss)		(2,137,649	)		(1,762,058	)		(1,020,689	)		(872,010	)		(737,159	)		(1,245,611	)
Realized gains (losses) on investments:
Capital gain distributions received		16,065,801			—			6,951,404			—			34,515,333			25,317,981
Net realized gain (loss)		12,107,916			10,282,275			8,011,150			7,543,016			15,256,039			12,180,052
Realized gains (losses)		28,173,717			10,282,275			14,962,554			7,543,016			49,771,372			37,498,033
Unrealized appreciation (depreciation) during the period		(14,498,774	)		35,264,134			(9,187,806	)		12,527,969			(18,752,090	)		18,512,494
Net increase (decrease) in contract owners’ equity from operations		11,537,294			43,784,351			4,754,059			19,198,975			30,282,123			54,764,916
Changes from principal transactions:
Purchase payments		328,019			315,592			255,250			552,357			982,989			1,515,804
Transfers between sub-accounts and the company		(3,049,294	)		(7,346,973	)		1,145,886			(4,491,681	)		87,624			(8,539,723	)
Withdrawals		(17,484,718	)		(16,878,720	)		(10,155,664	)		(9,024,153	)		(28,674,922	)		(23,419,690	)
Annual contract fee		(310,789	)		(330,404	)		(217,285	)		(239,321	)		(2,095,983	)		(2,089,114	)
Net increase (decrease) in contract owners’ equity from principal transactions		(20,516,782	)		(24,240,505	)		(8,971,813	)		(13,202,798	)		(29,700,292	)		(32,532,723	)
Total increase (decrease) in contract owners’ equity		(8,979,488	)		19,543,846			(4,217,754	)		5,996,177			581,831			22,232,193
Contract owners’ equity at beginning of period		155,768,221			136,224,375			68,554,888			62,558,711			307,583,950			285,351,757
Contract owners’ equity at end of period	$	146,788,733		$	155,768,221		$	64,337,134		$	68,554,888		$	308,165,781		$	307,583,950
	2014			2013			2014			2013			2014			2013
Units, beginning of period		10,222,001			12,109,605			3,044,691			3,741,178			17,243,335			19,197,836
Units issued		402,572			290,503			389,051			463,715			786,111			317,209
Units redeemed		(1,702,853	)		(2,178,107	)		(768,303	)		(1,160,202	)		(2,346,149	)		(2,271,710	)
Units, end of period		8,921,720			10,222,001			2,665,439			3,044,691			15,683,297			17,243,335

See accompanying notes.

39

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Core Allocation Plus Trust Series I					Core Allocation Plus Trust Series II					Core Bond Trust Series II
	2014		2013 (l)			2014		2013 (l)			2014			2013
Income:
Dividend distributions received	$	—	$	608,769		$	—	$	3,894,775		$	196,591		$	153,391
Expenses:
Mortality and expense risk and administrative charges		—		(173,236	)		—		(1,952,698	)		(117,596	)		(145,006	)
Net investment income (loss)		—		435,533			—		1,942,077			78,995			8,385
Realized gains (losses) on investments:
Capital gain distributions received		—		6,422,417			—		44,476,812			—			310,356
Net realized gain (loss)		—		(1,611,461	)		—		(3,603,793	)		(315,242	)		(121,106	)
Realized gains (losses)		—		4,810,956			—		40,873,019			(315,242	)		189,250
Unrealized appreciation (depreciation) during the period		—		(1,732,424	)		—		(19,078,716	)		542,144			(576,588	)
Net increase (decrease) in contract owners’ equity from operations		—		3,514,065			—		23,736,380			305,897			(378,953	)
Changes from principal transactions:
Purchase payments		—		62,006			—		787,411			2,538			416
Transfers between sub-accounts and the company		—		(21,322,200	)		—		(150,583,994	)		1,266,394			(1,522,626	)
Withdrawals		—		(1,199,368	)		—		(9,794,935	)		(2,311,205	)		(1,340,252	)
Annual contract fee		—		(105,003	)		—		(953,650	)		(23,255	)		(26,819	)
Net increase (decrease) in contract owners’ equity from principal transactions		—		(22,564,565	)		—		(160,545,168	)		(1,065,528	)		(2,889,281	)
Total increase (decrease) in contract owners’ equity		—		(19,050,500	)		—		(136,808,788	)		(759,631	)		(3,268,234	)
Contract owners’ equity at beginning of period		—		19,050,500			—		136,808,788			7,605,372			10,873,607
Contract owners’ equity at end of period	$	—	$	—		$	—	$	—		$	6,845,741		$	7,605,373
	2014		2013			2014		2013			2014			2013
Units, beginning of period		—		1,426,786			—		10,879,638			464,644			638,394
Units issued		—		20,423			—		95,984			224,980			70,404
Units redeemed		—		(1,447,209	)		—		(10,975,622	)		(289,424	)		(244,154	)
Units, end of period		—		—			—		—			400,200			464,644

(l) Terminated as an investment option and funds transferred to Core Strategy Trust on December 9, 2013.

See accompanying notes.

40

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Core Fundamental Holdings Trust Series II					Core Fundamental Holdings Trust Series III					Core Global Diversification Trust Series I
	2014		2013 (l)			2014		2013 (l)			2014		2013 (l)
Income:
Dividend distributions received	$	—	$	5,686,334		$	—	$	553,277		$	—	$	3,251
Expenses:
Mortality and expense risk and administrative charges		—		(4,205,441	)		—		(224,975	)		—		(1,859	)
Net investment income (loss)		—		1,480,893			—		328,302			—		1,392
Realized gains (losses) on investments:
Capital gain distributions received		—		57,563,722			—		4,559,122			—		16,217
Net realized gain (loss)		—		(2,291,160	)		—		234,567			—		(7,479	)
Realized gains (losses)		—		55,272,562			—		4,793,689			—		8,738
Unrealized appreciation (depreciation) during the period		—		(21,394,867	)		—		(1,901,470	)		—		7,868
Net increase (decrease) in contract owners’ equity from operations		—		35,358,588			—		3,220,521			—		17,998
Changes from principal transactions:
Purchase payments		—		1,977,360			—		122,503			—		—
Transfers between sub-accounts and the company		—		(304,735,752	)		—		(26,627,524	)		—		(174,602	)
Withdrawals		—		(16,108,056	)		—		(1,157,624	)		—		—
Annual contract fee		—		(2,138,308	)		—		(216,351	)		—		—
Net increase (decrease) in contract owners’ equity from principal transactions		—		(321,004,756	)		—		(27,878,996	)		—		(174,602	)
Total increase (decrease) in contract owners’ equity		—		(285,646,168	)		—		(24,658,475	)		—		(156,604	)
Contract owners’ equity at beginning of period		—		285,646,168			—		24,658,475			—		156,604
Contract owners’ equity at end of period	$	—	$	—		$	—	$	—		$	—	$	—
	2014		2013			2014		2013			2014		2013
Units, beginning of period		—		—			—		1,417,212			—		10,314
Units issued		—		—			—		134,512			—		—
Units redeemed		—		—			—		(1,551,724	)		—		(10,314	)
Units, end of period		—		—			—		—			—		—

(l) Terminated as an investment option and funds transferred to Core Strategy Trust on December 9, 2013.

See accompanying notes.

41

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Core Global  Diversification Trust Series II					Core Global  Diversification Trust Series III					Core Strategy Trust Series I
	2014		2013 (l)			2014		2013 (l)			2014			2013 (h)
Income:
Dividend distributions received	$	—	$	5,724,210		$	—	$	476,180		$	3,211,442		$	802,928
Expenses:
Mortality and expense risk and administrative charges		—		(4,270,570	)		—		(166,170	)		(1,245,548	)		(85,974	)
Net investment income (loss)		—		1,453,640			—		310,010			1,965,894			716,954
Realized gains (losses) on investments:
Capital gain distributions received		—		31,504,545			—		2,171,558			446,269			36,702
Net realized gain (loss)		—		(4,297,504	)		—		(394,424	)		877,054			(13,502	)
Realized gains (losses)		—		27,207,041			—		1,777,134			1,323,323			23,200
Unrealized appreciation (depreciation) during the period		—		4,216,858			—		171,900			3,725,527			1,685,437
Net increase (decrease) in contract owners’ equity from operations		—		32,877,539			—		2,259,044			7,014,744			2,425,591
Changes from principal transactions:
Purchase payments		—		1,970,857			—		84,722			337,477			58,255
Transfers between sub-accounts and the company		—		(305,329,839	)		—		(19,447,995	)		498,539			138,032,311
Withdrawals		—		(18,454,179	)		—		(970,032	)		(13,456,331	)		(807,895	)
Annual contract fee		—		(2,069,176	)		—		(163,013	)		(918,918	)		(54,840	)
Net increase (decrease) in contract owners’ equity from principal transactions		—		(323,882,337	)		—		(20,496,318	)		(13,539,233	)		137,227,831
Total increase (decrease) in contract owners’ equity		—		(291,004,798	)		—		(18,237,274	)		(6,524,489	)		139,653,422
Contract owners’ equity at beginning of period		—		291,004,798			—		18,237,274			139,653,422			—
Contract owners’ equity at end of period	$	—	$	—		$	—	$	—		$	133,128,933		$	139,653,422
	2014		2013			2014		2013			2014			2013
Units, beginning of period		—		17,001,503			—		1,053,937			10,217,653			—
Units issued		—		3,023,907			—		228,567			420,827			10,266,667
Units redeemed		—		(20,025,410	)		—		(1,282,504	)		(1,375,283	)		(49,014	)
Units, end of period		—		—			—		—			9,263,197			10,217,653

(h) Sub-account available in prior year but no activity.

(l) Terminated as an investment option and funds transferred to Core Strategy Trust on December 9, 2013.

See accompanying notes.

42

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Core Strategy Trust Series II						Core Strategy Trust Series NAV						Disciplined Diversification Trust Series II
	2014			2013			2014			2013			2014		2013 (l)
Income:
Dividend distributions received	$	76,491,427		$	13,225,582		$	201,326		$	67,026		$	—	$	7,130,027
Expenses:
Mortality and expense risk and administrative charges		(50,662,287	)		(13,097,052	)		(125,617	)		(130,210	)		—		(2,818,486	)
Net investment income (loss)		25,829,140			128,530			75,709			(63,184	)		—		4,311,541
Realized gains (losses) on investments:
Capital gain distributions received		11,170,611			75,504,617			29,245			1,042,445			—		89,360,546
Net realized gain (loss)		103,622,002			18,804,046			690,290			83,449			—		(12,604,460	)
Realized gains (losses)		114,792,613			94,308,663			719,535			1,125,894			—		76,756,086
Unrealized appreciation (depreciation) during the period		8,289,893			64,457,945			(329,344	)		540,678			—		(55,058,309	)
Net increase (decrease) in contract owners’ equity from operations		148,911,646			158,895,138			465,900			1,603,388			—		26,009,318
Changes from principal transactions:
Purchase payments		9,598,796			3,099,170			—			—			—		823,693
Transfers between sub-accounts and the company		39,151,033			2,828,285,685			—			551,346			—		(219,671,424	)
Withdrawals		(308,934,967	)		(71,907,564	)		(3,046,145	)		(736,330	)		—		(9,452,993	)
Annual contract fee		(23,659,403	)		(6,108,754	)		—			—			—		(1,346,898	)
Net increase (decrease) in contract owners’ equity from principal transactions		(283,844,541	)		2,753,368,537			(3,046,145	)		(184,984	)		—		(229,647,622	)
Total increase (decrease) in contract owners’ equity		(134,932,895	)		2,912,263,675			(2,580,245	)		1,418,404			—		(203,638,304	)
Contract owners’ equity at beginning of period		3,544,520,934			632,257,259			10,740,186			9,321,782			—		203,638,304
Contract owners’ equity at end of period	$	3,409,588,039		$	3,544,520,934		$	8,159,941		$	10,740,186		$	—	$	—
	2014			2013			2014			2013			2014		2013
Units, beginning of period		205,775,379			42,857,530			576,986			600,806			—		14,938,593
Units issued		13,909,533			169,852,427			11			28,148			—		141,543
Units redeemed		(29,252,151	)		(6,934,578	)		(154,475	)		(51,968	)		—		(15,080,136	)
Units, end of period		190,432,761			205,775,379			422,522			576,986			—		—

(l) Terminated as an investment option and funds transferred to Core Strategy Trust on December 9, 2013.

See accompanying notes.

43

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	DWS Equity 500 Index (i)						Equity-Income Trust Series I						Equity-Income Trust Series II
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	225,505		$	211,623		$	4,309,374		$	4,602,670		$	2,410,496		$	2,713,699
Expenses:
Mortality and expense risk and administrative charges		(238,336	)		(235,905	)		(3,590,932	)		(3,649,886	)		(2,434,304	)		(2,542,207	)
Net investment income (loss)		(12,831	)		(24,282	)		718,442			952,784			(23,808	)		171,492
Realized gains (losses) on investments:
Capital gain distributions received		508,044			320,204			20,588,485			—			12,925,861			—
Net realized gain (loss)		1,070,046			744,960			7,227,192			3,401,909			14,753,305			8,724,153
Realized gains (losses)		1,578,090			1,065,164			27,815,677			3,401,909			27,679,166			8,724,153
Unrealized appreciation (depreciation) during the period		4,648			2,763,425			(14,742,460	)		56,562,159			(19,435,708	)		29,907,399
Net increase (decrease) in contract owners’ equity from operations		1,569,907			3,804,307			13,791,659			60,916,852			8,219,650			38,803,044
Changes from principal transactions:
Purchase payments		118,117			86,771			654,685			575,800			470,306			690,083
Transfers between sub-accounts and the company		(295,170	)		222,326			(5,563,018	)		(4,699,389	)		(2,049,240	)		3,067,298
Withdrawals		(1,951,393	)		(2,504,963	)		(30,726,047	)		(28,713,662	)		(25,567,520	)		(23,523,504	)
Annual contract fee		(68,207	)		(74,896	)		(360,384	)		(411,458	)		(460,204	)		(504,042	)
Net increase (decrease) in contract owners’ equity from principal transactions		(2,196,653	)		(2,270,762	)		(35,994,764	)		(33,248,709	)		(27,606,658	)		(20,270,165	)
Total increase (decrease) in contract owners’ equity		(626,746	)		1,533,545			(22,203,105	)		27,668,143			(19,387,008	)		18,532,879
Contract owners’ equity at beginning of period		15,602,676			14,069,132			257,076,633			229,408,490			166,190,530			147,657,651
Contract owners’ equity at end of period	$	14,975,930		$	15,602,677		$	234,873,528		$	257,076,633		$	146,803,522		$	166,190,530
	2014			2013			2014			2013			2014			2013
Units, beginning of period		547,663			636,808			6,433,211			7,401,908			7,613,665			8,600,783
Units issued		32,611			39,202			155,407			230,964			680,944			909,091
Units redeemed		(107,827	)		(128,347	)		(1,039,746	)		(1,199,661	)		(1,897,434	)		(1,896,209	)
Units, end of period		472,447			547,663			5,548,872			6,433,211			6,397,175			7,613,665

(i) Sub-account that invests in non-affiliated Trust.

See accompanying notes.

44

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Financial Industries Trust Series I						Financial Industries Trust Series II						Franklin Templeton Founding Allocation Trust Series I
	2014 (g)			2013			2014 (g)			2013			2014			2013
Income:
Dividend distributions received	$	77,980		$	73,804		$	98,713		$	93,337		$	1,429,811		$	1,164,735
Expenses:
Mortality and expense risk and administrative charges		(172,928	)		(182,947	)		(308,017	)		(328,698	)		(457,639	)		(447,348	)
Net investment income (loss)		(94,948	)		(109,143	)		(209,304	)		(235,361	)		972,172			717,387
Realized gains (losses) on investments:
Capital gain distributions received		—			123,074			—			219,821			—			—
Net realized gain (loss)		910,869			1,402,784			2,782,971			2,510,239			4,251,923			2,346,316
Realized gains (losses)		910,869			1,525,858			2,782,971			2,730,060			4,251,923			2,346,316
Unrealized appreciation (depreciation) during the period		(80,474	)		1,576,614			(1,391,164	)		2,688,225			(4,039,638	)		7,206,888
Net increase (decrease) in contract owners’ equity from operations		735,447			2,993,329			1,182,503			5,182,924			1,184,457			10,270,591
Changes from principal transactions:
Purchase payments		23,360			39,881			78,813			74,069			74,940			167,774
Transfers between sub-accounts and the company		(536,082	)		(218,965	)		(1,263,648	)		1,621,893			(853,253	)		(465,625	)
Withdrawals		(1,206,629	)		(1,038,436	)		(3,583,364	)		(3,240,096	)		(6,916,440	)		(4,180,180	)
Annual contract fee		(36,576	)		(42,100	)		(56,814	)		(65,942	)		(262,919	)		(270,540	)
Net increase (decrease) in contract owners’ equity from principal transactions		(1,755,927	)		(1,259,620	)		(4,825,013	)		(1,610,076	)		(7,957,672	)		(4,748,571	)
Total increase (decrease) in contract owners’ equity		(1,020,480	)		1,733,709			(3,642,510	)		3,572,848			(6,773,215	)		5,522,020
Contract owners’ equity at beginning of period		12,224,626			10,490,917			22,428,647			18,855,799			51,742,044			46,220,024
Contract owners’ equity at end of period	$	11,204,146		$	12,224,626		$	18,786,137		$	22,428,647		$	44,968,829		$	51,742,044
	2014			2013			2014			2013			2014			2013
Units, beginning of period		680,298			751,722			1,195,459			1,291,549			3,007,665			3,311,639
Units issued		45,802			169,132			146,997			296,047			15,437			20,270
Units redeemed		(143,232	)		(240,556	)		(409,041	)		(392,137	)		(460,035	)		(324,244	)
Units, end of period		582,868			680,298			933,415			1,195,459			2,563,067			3,007,665

(g) Renamed on November 10, 2014. Previously known as Financial Services Trust.

See accompanying notes.

45

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Franklin Templeton Founding Allocation Trust Series II						Fundamental All Cap Core Trust Series II						Fundamental Holdings Trust Series II
	2014			2013			2014			2013			2014		2013 (l)
Income:
Dividend distributions received	$	32,602,216		$	25,095,839		$	112,692		$	426,861		$	—	$	14,351,187
Expenses:
Mortality and expense risk and administrative charges		(17,682,538	)		(17,646,351	)		(867,946	)		(935,107	)		—		(12,953,204	)
Net investment income (loss)		14,919,678			7,449,488			(755,254	)		(508,246	)		—		1,397,983
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			—		299,525,625
Net realized gain (loss)		18,809,331			(2,460,892	)		2,937,927			593,679			—		23,242,985
Realized gains (losses)		18,809,331			(2,460,892	)		2,937,927			593,679			—		322,768,610
Unrealized appreciation (depreciation) during the period		(16,326,726	)		229,737,872			1,819,180			17,159,146			—		(218,299,774	)
Net increase (decrease) in contract owners’ equity from operations		17,402,283			234,726,468			4,001,853			17,244,579			—		105,866,819
Changes from principal transactions:
Purchase payments		2,603,184			2,688,797			240,155			404,721			—		2,856,112
Transfers between sub-accounts and the company		(20,528,905	)		(31,155,476	)		(1,294,834	)		(5,139,897	)		—		(967,608,818	)
Withdrawals		(117,569,240	)		(86,720,695	)		(11,139,402	)		(10,877,626	)		—		(64,102,751	)
Annual contract fee		(7,355,693	)		(7,622,896	)		(243,911	)		(273,885	)		—		(6,080,281	)
Net increase (decrease) in contract owners’ equity from principal transactions		(142,850,654	)		(122,810,270	)		(12,437,992	)		(15,886,687	)		—		(1,034,935,738	)
Total increase (decrease) in contract owners’ equity		(125,448,371	)		111,916,198			(8,436,139	)		1,357,892			—		(929,068,919	)
Contract owners’ equity at beginning of period		1,212,832,943			1,100,916,745			60,517,126			59,159,234			—		929,068,919
Contract owners’ equity at end of period	$	1,087,384,572		$	1,212,832,943		$	52,080,987		$	60,517,126		$	—	$	—
	2014			2013			2014			2013			2014		2013
Units, beginning of period		83,732,529			93,098,857			2,199,424			2,866,960			—		16,595,696
Units issued		13,474,136			550,589			86,742			148,759			—		3,858,911
Units redeemed		(23,902,847	)		(9,916,917	)		(528,574	)		(816,295	)		—		(20,454,607	)
Units, end of period		73,303,818			83,732,529			1,757,592			2,199,424			—		—

(l) Terminated as an investment option and funds transferred to Core Strategy Trust on December 9, 2013.

See accompanying notes.

46

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Fundamental Holdings Trust Series III					Fundamental Large Cap Value Trust Series I						Fundamental Large Cap Value Trust Series II
	2014		2013 (l)			2014			2013 (h)			2014			2013
Income:
Dividend distributions received	$	—	$	1,215,573		$	1,476,386		$	—		$	877,483		$	140,079
Expenses:
Mortality and expense risk and administrative charges		—		(523,980	)		(918,455	)		(25,152	)		(1,025,446	)		(247,266	)
Net investment income (loss)		—		691,593			557,931			(25,152	)		(147,963	)		(107,187	)
Realized gains (losses) on investments:
Capital gain distributions received		—		20,393,122			—			—			—			—
Net realized gain (loss)		—		1,881,290			1,089,704			2,336			2,055,619			703,284
Realized gains (losses)		—		22,274,412			1,089,704			2,336			2,055,619			703,284
Unrealized appreciation (depreciation) during the period		—		(15,232,751	)		1,224,196			680,112			1,300,804			3,710,432
Net increase (decrease) in contract owners’ equity from operations		—		7,733,254			2,871,831			657,296			3,208,460			4,306,529
Changes from principal transactions:
Purchase payments		—		735,622			124,585			3,212			346,312			148,953
Transfers between sub-accounts and the company		—		(65,766,423	)		261,437,993			24,502,747			206,199,610			21,005,864
Withdrawals		—		(4,454,231	)		(7,745,072	)		(321,888	)		(11,751,949	)		(3,405,059	)
Annual contract fee		—		(358,049	)		(94,394	)		(3,341	)		(241,666	)		(69,452	)
Net increase (decrease) in contract owners’ equity from principal transactions		—		(69,843,081	)		253,723,112			24,180,730			194,552,307			17,680,306
Total increase (decrease) in contract owners’ equity		—		(62,109,827	)		256,594,943			24,838,026			197,760,767			21,986,835
Contract owners’ equity at beginning of period		—		62,109,827			24,838,026			—			36,341,963			14,355,128
Contract owners’ equity at end of period	$	—	$	—		$	281,432,969		$	24,838,026		$	234,102,730		$	36,341,963
	2014		2013			2014			2013			2014			2013
Units, beginning of period		—		4,483,757			1,198,374			—			1,686,180			861,808
Units issued		—		50,930			11,269,193			1,256,974			10,338,796			1,248,393
Units redeemed		—		(4,534,687	)		(549,105	)		(58,600	)		(1,100,420	)		(424,021	)
Units, end of period		—		—			11,918,462			1,198,374			10,924,556			1,686,180

(h) Sub-account available in prior year but no activity.

(l) Terminated as an investment option and funds transferred to Core Strategy Trust on December 9, 2013.

See accompanying notes.

47

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Fundamental Value Trust Series I						Fundamental Value Trust Series II						Global Allocation (i)
	2014 (n)			2013			2014 (n)			2013			2014			2013
Income:
Dividend distributions received	$	4,242,730		$	3,442,969		$	2,972,680		$	2,482,894		$	15,932		$	8,613
Expenses:
Mortality and expense risk and administrative charges		(3,385,677	)		(4,022,214	)		(2,934,086	)		(3,738,168	)		(11,199	)		(11,338	)
Net investment income (loss)		857,053			(579,245	)		38,594			(1,255,274	)		4,733			(2,725	)
Realized gains (losses) on investments:
Capital gain distributions received		59,411,605			—			47,188,829			—			59,255			30,299
Net realized gain (loss)		87,202,276			19,861,051			61,761,371			6,052,208			26,272			8,005
Realized gains (losses)		146,613,881			19,861,051			108,950,200			6,052,208			85,527			38,304
Unrealized appreciation (depreciation) during the period		(132,835,615	)		55,686,962			(97,871,408	)		59,199,365			(86,565	)		62,278
Net increase (decrease) in contract owners’ equity from operations		14,635,319			74,968,768			11,117,386			63,996,299			3,695			97,857
Changes from principal transactions:
Purchase payments		365,135			636,454			592,816			706,450			—			—
Transfers between sub-accounts and the company		(271,282,540	)		(9,210,932	)		(216,308,328	)		(22,676,717	)		(46,770	)		(849	)
Withdrawals		(30,911,226	)		(34,191,618	)		(30,635,236	)		(34,920,457	)		(36,642	)		(11,133	)
Annual contract fee		(340,730	)		(437,851	)		(673,729	)		(906,501	)		(1,372	)		(1,708	)
Net increase (decrease) in contract owners’ equity from principal transactions		(302,169,361	)		(43,203,947	)		(247,024,477	)		(57,797,225	)		(84,784	)		(13,690	)
Total increase (decrease) in contract owners’ equity		(287,534,042	)		31,764,821			(235,907,091	)		6,199,074			(81,089	)		84,167
Contract owners’ equity at beginning of period		287,534,042			255,769,221			235,907,091			229,708,017			847,536			763,369
Contract owners’ equity at end of period	$	—		$	287,534,042		$	—		$	235,907,091		$	766,447		$	847,536
	2014			2013			2014			2013			2014			2013
Units, beginning of period		14,209,009			16,630,578			11,329,193			14,454,456			44,480			45,242
Units issued		97,560			91,761			766,030			1,075,956			738			127
Units redeemed		(14,306,569	)		(2,513,330	)		(12,095,223	)		(4,201,219	)		(5,211	)		(889	)
Units, end of period		—			14,209,009			—			11,329,193			40,007			44,480

(i) Sub-account that invests in non-affiliated Trust.

(n) Terminated as an investment option and funds transferred to Fundamental Large Cap Value Trust on November 10, 2014.

See accompanying notes.

48

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Global Bond Trust Series I						Global Bond Trust Series II						Global Diversification Trust Series II
	2014			2013			2014			2013			2014		2013 (l)
Income:
Dividend distributions received	$	397,288		$	228,655		$	830,489		$	316,407		$	—	$	10,636,698
Expenses:
Mortality and expense risk and administrative charges		(658,038	)		(784,069	)		(1,776,760	)		(2,086,000	)		—		(10,004,332	)
Net investment income (loss)		(260,750	)		(555,414	)		(946,271	)		(1,769,593	)		—		632,366
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			—		162,249,939
Net realized gain (loss)		329,146			77,112			834,518			4,386,267			—		52,267,584
Realized gains (losses)		329,146			77,112			834,518			4,386,267			—		214,517,523
Unrealized appreciation (depreciation) during the period		445,492			(3,528,395	)		1,214,303			(12,836,812	)		—		(134,332,087	)
Net increase (decrease) in contract owners’ equity from operations		513,888			(4,006,697	)		1,102,550			(10,220,138	)		—		80,817,802
Changes from principal transactions:
Purchase payments		76,249			80,506			207,145			408,823			—		2,269,850
Transfers between sub-accounts and the company		(1,584,192	)		(2,695,054	)		(4,821,680	)		3,532,879			—		(746,951,390	)
Withdrawals		(6,176,055	)		(6,418,968	)		(17,853,774	)		(18,136,100	)		—		(43,063,234	)
Annual contract fee		(62,021	)		(82,582	)		(414,177	)		(491,699	)		—		(4,576,148	)
Net increase (decrease) in contract owners’ equity from principal transactions		(7,746,019	)		(9,116,098	)		(22,882,486	)		(14,686,097	)		—		(792,320,922	)
Total increase (decrease) in contract owners’ equity		(7,232,131	)		(13,122,795	)		(21,779,936	)		(24,906,235	)		—		(711,503,120	)
Contract owners’ equity at beginning of period		47,955,175			61,077,970			123,633,733			148,539,968			—		711,503,120
Contract owners’ equity at end of period	$	40,723,044		$	47,955,175		$	101,853,797		$	123,633,733		$	—	$	—
	2014			2013			2014			2013			2014		2013
Units, beginning of period		1,666,852			1,982,554			6,165,469			6,626,234			—		56,688,326
Units issued		64,162			119,005			817,631			1,530,388			—		440,133
Units redeemed		(336,555	)		(434,707	)		(1,752,547	)		(1,991,153	)		—		(57,128,459	)
Units, end of period		1,394,459			1,666,852			5,230,553			6,165,469			—		—

(l) Terminated as an investment option and funds transferred to Core Strategy Trust on December 9, 2013.

See accompanying notes.

49

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Global Trust Series I						Global Trust Series II						Health Sciences Trust Series I
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	2,953,878		$	2,110,961		$	934,845		$	345,389		$	—		$	—
Expenses:
Mortality and expense risk and administrative charges		(1,815,121	)		(1,792,512	)		(474,411	)		(424,591	)		(929,775	)		(774,552	)
Net investment income (loss)		1,138,757			318,449			460,434			(79,202	)		(929,775	)		(774,552	)
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			8,044,130			4,427,468
Net realized gain (loss)		9,882,780			8,550,722			1,913,333			34,026			9,675,145			6,785,422
Realized gains (losses)		9,882,780			8,550,722			1,913,333			34,026			17,719,275			11,212,890
Unrealized appreciation (depreciation) during the period		(16,089,231	)		28,268,135			(3,630,987	)		6,826,721			(870,663	)		9,550,761
Net increase (decrease) in contract owners’ equity from operations		(5,067,694	)		37,137,306			(1,257,220	)		6,781,545			15,918,837			19,989,099
Changes from principal transactions:
Purchase payments		319,548			409,439			119,613			72,125			133,752			211,043
Transfers between sub-accounts and the company		20,840,673			(6,007,130	)		30,870,398			737,785			2,127,965			1,971,696
Withdrawals		(17,967,682	)		(14,821,406	)		(4,922,316	)		(4,666,281	)		(8,349,889	)		(5,813,511	)
Annual contract fee		(361,160	)		(381,606	)		(119,733	)		(117,629	)		(149,595	)		(141,010	)
Net increase (decrease) in contract owners’ equity from principal transactions		2,831,379			(20,800,703	)		25,947,962			(3,974,000	)		(6,237,767	)		(3,771,782	)
Total increase (decrease) in contract owners’ equity		(2,236,315	)		16,336,603			24,690,742			2,807,545			9,681,070			16,217,317
Contract owners’ equity at beginning of period		150,907,267			134,570,664			28,237,380			25,429,835			57,700,803			41,483,486
Contract owners’ equity at end of period	$	148,670,952		$	150,907,267		$	52,928,122		$	28,237,380		$	67,381,873		$	57,700,803
	2014			2013			2014			2013			2014			2013
Units, beginning of period		5,915,224			6,898,283			1,309,021			1,516,248			1,330,993			1,425,169
Units issued		1,072,287			141,075			1,805,066			223,171			229,203			280,891
Units redeemed		(1,003,398	)		(1,124,134	)		(434,678	)		(430,398	)		(362,977	)		(375,067	)
Units, end of period		5,984,113			5,915,224			2,679,409			1,309,021			1,197,219			1,330,993

See accompanying notes.

50

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Health Sciences Trust Series II						High Yield Trust Series I						High Yield Trust Series II
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	—		$	—		$	5,820,984		$	6,426,961		$	5,426,171		$	6,718,687
Expenses:
Mortality and expense risk and administrative charges		(1,284,792	)		(1,115,711	)		(1,154,016	)		(1,066,426	)		(1,499,939	)		(1,530,173	)
Net investment income (loss)		(1,284,792	)		(1,115,711	)		4,666,968			5,360,535			3,926,232			5,188,514
Realized gains (losses) on investments:
Capital gain distributions received		10,837,579			6,192,846			—			—			—			—
Net realized gain (loss)		14,274,388			10,640,763			888,708			1,159,210			1,232,902			3,554,681
Realized gains (losses)		25,111,967			16,833,609			888,708			1,159,210			1,232,902			3,554,681
Unrealized appreciation (depreciation) during the period		(2,941,588	)		11,459,461			(5,956,349	)		(1,957,352	)		(6,044,038	)		(3,249,778	)
Net increase (decrease) in contract owners’ equity from operations		20,885,587			27,177,359			(400,673	)		4,562,393			(884,904	)		5,493,417
Changes from principal transactions:
Purchase payments		461,635			290,139			282,228			183,668			159,346			285,222
Transfers between sub-accounts and the company		2,654,295			4,239,075			(3,024,838	)		50,691,566			(8,376,041	)		43,230,718
Withdrawals		(13,550,990	)		(10,897,380	)		(11,018,749	)		(9,383,935	)		(15,346,250	)		(17,514,036	)
Annual contract fee		(258,543	)		(246,429	)		(412,250	)		(276,490	)		(320,660	)		(325,676	)
Net increase (decrease) in contract owners’ equity from principal transactions		(10,693,603	)		(6,614,595	)		(14,173,609	)		41,214,809			(23,883,605	)		25,676,228
Total increase (decrease) in contract owners’ equity		10,191,984			20,562,764			(14,574,282	)		45,777,202			(24,768,509	)		31,169,645
Contract owners’ equity at beginning of period		78,494,812			57,932,048			98,605,409			52,828,207			106,280,030			75,110,385
Contract owners’ equity at end of period	$	88,686,796		$	78,494,812		$	84,031,127		$	98,605,409		$	81,511,521		$	106,280,030
	2014			2013			2014			2013			2014			2013
Units, beginning of period		1,794,833			1,937,970			5,681,774			2,306,962			4,539,101			3,305,372
Units issued		482,489			449,196			852,010			4,558,789			1,408,439			3,861,106
Units redeemed		(675,506	)		(592,333	)		(1,537,927	)		(1,183,977	)		(2,188,649	)		(2,627,377	)
Units, end of period		1,601,816			1,794,833			4,995,857			5,681,774			3,758,891			4,539,101

See accompanying notes.

51

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	International Core Trust Series I						International Core Trust Series II						International Equity Index Trust B Series I
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	898,777		$	719,458		$	580,463		$	515,651		$	596,667		$	496,754
Expenses:
Mortality and expense risk and administrative charges		(389,419	)		(386,109	)		(307,456	)		(320,968	)		(299,973	)		(309,068	)
Net investment income (loss)		509,358			333,349			273,007			194,683			296,694			187,686
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			—			—
Net realized gain (loss)		547,010			(1,405,508	)		1,891,524			(153,770	)		522,255			465,990
Realized gains (losses)		547,010			(1,405,508	)		1,891,524			(153,770	)		522,255			465,990
Unrealized appreciation (depreciation) during the period		(3,073,286	)		6,517,106			(3,603,017	)		4,049,499			(1,985,653	)		1,923,110
Net increase (decrease) in contract owners’ equity from operations		(2,016,918	)		5,444,947			(1,438,486	)		4,090,412			(1,166,704	)		2,576,786
Changes from principal transactions:
Purchase payments		54,350			40,846			116,291			107,846			42,556			115,718
Transfers between sub-accounts and the company		344,086			5,938			(388,820	)		421,122			(150,676	)		(953,304	)
Withdrawals		(2,811,182	)		(3,117,022	)		(3,376,860	)		(2,345,049	)		(1,865,307	)		(2,016,653	)
Annual contract fee		(51,907	)		(58,390	)		(50,607	)		(64,272	)		(53,600	)		(58,993	)
Net increase (decrease) in contract owners’ equity from principal transactions		(2,464,653	)		(3,128,628	)		(3,699,996	)		(1,880,353	)		(2,027,027	)		(2,913,232	)
Total increase (decrease) in contract owners’ equity		(4,481,571	)		2,316,319			(5,138,482	)		2,210,059			(3,193,731	)		(336,446	)
Contract owners’ equity at beginning of period		27,638,660			25,322,341			20,858,403			18,648,344			21,396,799			21,733,245
Contract owners’ equity at end of period	$	23,157,089		$	27,638,660		$	15,719,921		$	20,858,403		$	18,203,068		$	21,396,799
	2014			2013			2014			2013			2014			2013
Units, beginning of period		1,507,205			1,705,410			1,069,297			1,164,060			1,430,660			1,641,475
Units issued		118,083			131,246			231,014			237,852			84,406			142,335
Units redeemed		(254,535	)		(329,451	)		(431,059	)		(332,615	)		(220,891	)		(353,150	)
Units, end of period		1,370,753			1,507,205			869,252			1,069,297			1,294,175			1,430,660

See accompanying notes.

52

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	International Equity Index Trust B Series II						International Equity Index Trust B Series NAV						International Growth Stock Trust Series II
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	547,790		$	480,854		$	471,883		$	430,397		$	320,013		$	192,449
Expenses:
Mortality and expense risk and administrative charges		(320,968	)		(350,843	)		(260,259	)		(287,875	)		(303,552	)		(296,125	)
Net investment income (loss)		226,822			130,011			211,624			142,522			16,461			(103,676	)
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			—			—
Net realized gain (loss)		863,531			625,467			(737,932	)		(1,186,723	)		929,231			523,441
Realized gains (losses)		863,531			625,467			(737,932	)		(1,186,723	)		929,231			523,441
Unrealized appreciation (depreciation) during the period		(2,246,538	)		1,916,213			(326,156	)		3,251,885			(1,202,026	)		2,702,725
Net increase (decrease) in contract owners’ equity from operations		(1,156,185	)		2,671,691			(852,464	)		2,207,684			(256,334	)		3,122,490
Changes from principal transactions:
Purchase payments		110,551			94,830			83,397			89,546			225,700			92,795
Transfers between sub-accounts and the company		(128,144	)		(1,585,725	)		(159,038	)		70,513			611,234			(195,646	)
Withdrawals		(3,421,680	)		(2,910,256	)		(3,171,545	)		(3,100,471	)		(2,302,058	)		(2,826,201	)
Annual contract fee		(75,077	)		(86,332	)		(80,255	)		(93,484	)		(49,007	)		(48,557	)
Net increase (decrease) in contract owners’ equity from principal transactions		(3,514,350	)		(4,487,483	)		(3,327,441	)		(3,033,896	)		(1,514,131	)		(2,977,609	)
Total increase (decrease) in contract owners’ equity		(4,670,535	)		(1,815,792	)		(4,179,905	)		(826,212	)		(1,770,465	)		144,881
Contract owners’ equity at beginning of period		22,765,125			24,580,917			18,356,338			19,182,550			20,531,118			20,386,237
Contract owners’ equity at end of period	$	18,094,590		$	22,765,125		$	14,176,433		$	18,356,338		$	18,760,653		$	20,531,118
	2014			2013			2014			2013			2014			2013
Units, beginning of period		1,530,741			1,860,244			1,535,483			1,807,557			1,346,516			1,564,685
Units issued		243,623			310,490			45,294			92,879			314,948			216,218
Units redeemed		(476,192	)		(639,993	)		(316,977	)		(364,953	)		(411,602	)		(434,387	)
Units, end of period		1,298,172			1,530,741			1,263,800			1,535,483			1,249,862			1,346,516

See accompanying notes.

53

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	International Small Company Trust Series I						International Small Company Trust Series II						International Value Trust Series I
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	416,973		$	549,291		$	234,344		$	349,180		$	2,259,666		$	1,513,353
Expenses:
Mortality and expense risk and administrative charges		(457,149	)		(452,821	)		(321,921	)		(334,630	)		(1,237,352	)		(1,295,467	)
Net investment income (loss)		(40,176	)		96,470			(87,577	)		14,550			1,022,314			217,886
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			—			—
Net realized gain (loss)		1,808,367			1,182,348			1,842,639			1,235,243			(1,271,965	)		(4,819,992	)
Realized gains (losses)		1,808,367			1,182,348			1,842,639			1,235,243			(1,271,965	)		(4,819,992	)
Unrealized appreciation (depreciation) during the period		(4,194,432	)		5,578,036			(3,363,588	)		3,444,311			(11,098,444	)		23,876,188
Net increase (decrease) in contract owners’ equity from operations		(2,426,241	)		6,856,854			(1,608,526	)		4,694,104			(11,348,095	)		19,274,082
Changes from principal transactions:
Purchase payments		56,982			47,191			126,059			83,282			239,780			186,565
Transfers between sub-accounts and the company		(650,638	)		(1,015,597	)		(515,071	)		1,348,433			(1,398,266	)		(2,197,066	)
Withdrawals		(3,254,897	)		(2,908,608	)		(3,770,161	)		(3,493,119	)		(10,661,901	)		(9,738,411	)
Annual contract fee		(74,535	)		(74,357	)		(64,406	)		(68,715	)		(168,759	)		(187,886	)
Net increase (decrease) in contract owners’ equity from principal transactions		(3,923,088	)		(3,951,371	)		(4,223,579	)		(2,130,119	)		(11,989,146	)		(11,936,798	)
Total increase (decrease) in contract owners’ equity		(6,349,329	)		2,905,483			(5,832,105	)		2,563,985			(23,337,241	)		7,337,284
Contract owners’ equity at beginning of period		33,239,132			30,333,649			23,314,301			20,750,316			93,535,082			86,197,798
Contract owners’ equity at end of period	$	26,889,803		$	33,239,132		$	17,482,196		$	23,314,301		$	70,197,841		$	93,535,082
	2014			2013			2014			2013			2014			2013
Units, beginning of period		1,854,233			2,106,985			1,320,331			1,455,799			4,246,497			4,864,597
Units issued		109,887			100,946			224,160			289,944			152,612			192,107
Units redeemed		(330,924	)		(353,698	)		(456,347	)		(425,412	)		(709,217	)		(810,207	)
Units, end of period		1,633,196			1,854,233			1,088,144			1,320,331			3,689,892			4,246,497

See accompanying notes.

54

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	International Value Trust Series II						Investment Quality Bond Trust Series I						Investment Quality Bond Trust Series II
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	1,954,804		$	1,315,845		$	5,019,233		$	6,979,948		$	2,486,614		$	3,544,345
Expenses:
Mortality and expense risk and administrative charges		(1,247,351	)		(1,369,079	)		(1,872,587	)		(2,001,849	)		(1,417,875	)		(1,592,398	)
Net investment income (loss)		707,453			(53,234	)		3,146,646			4,978,099			1,068,739			1,951,947
Realized gains (losses) on investments:
Capital gain distributions received		—			—			393,123			3,459,481			205,950			1,866,745
Net realized gain (loss)		2,747,771			(3,613,877	)		1,904,744			3,479,000			604,125			2,091,191
Realized gains (losses)		2,747,771			(3,613,877	)		2,297,867			6,938,481			810,075			3,957,936
Unrealized appreciation (depreciation) during the period		(14,246,438	)		22,222,176			2,137,298			(17,528,831	)		1,487,888			(9,652,979	)
Net increase (decrease) in contract owners’ equity from operations		(10,791,214	)		18,555,065			7,581,811			(5,612,251	)		3,366,702			(3,743,096	)
Changes from principal transactions:
Purchase payments		298,570			533,585			412,433			506,713			300,922			300,191
Transfers between sub-accounts and the company		(179,602	)		(534,725	)		118,491			12,669,805			1,813,959			1,735,103
Withdrawals		(13,240,132	)		(14,562,845	)		(23,298,742	)		(18,110,811	)		(13,357,448	)		(15,654,885	)
Annual contract fee		(242,755	)		(282,833	)		(842,346	)		(887,040	)		(344,612	)		(403,238	)
Net increase (decrease) in contract owners’ equity from principal transactions		(13,363,919	)		(14,846,818	)		(23,610,164	)		(5,821,333	)		(11,587,179	)		(14,022,829	)
Total increase (decrease) in contract owners’ equity		(24,155,133	)		3,708,247			(16,028,353	)		(11,433,584	)		(8,220,477	)		(17,765,925	)
Contract owners’ equity at beginning of period		90,010,076			86,301,829			181,114,210			192,547,794			95,945,529			113,711,454
Contract owners’ equity at end of period	$	65,854,943		$	90,010,076		$	165,085,857		$	181,114,210		$	87,725,052		$	95,945,529
	2014			2013			2014			2013			2014			2013
Units, beginning of period		3,778,188			4,463,282			9,980,414			10,048,782			5,353,529			5,945,106
Units issued		352,520			465,226			286,143			1,285,772			794,606			1,265,306
Units redeemed		(920,844	)		(1,150,320	)		(1,571,518	)		(1,354,140	)		(1,326,087	)		(1,856,883	)
Units, end of period		3,209,864			3,778,188			8,695,039			9,980,414			4,822,048			5,353,529

See accompanying notes.

55

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Lifestyle Aggressive MVP Series I						Lifestyle Aggressive MVP Series II						Lifestyle Aggressive Trust PS Series I
	2014 (b)			2013			2014 (b)			2013			2014 (h)			2013
Income:
Dividend distributions received	$	2,371,035		$	2,102,350		$	3,417,915		$	3,336,899		$	16,507		$	—
Expenses:
Mortality and expense risk and administrative charges		(1,320,258	)		(1,249,447	)		(2,243,877	)		(2,424,268	)		(11,219	)		—
Net investment income (loss)		1,050,777			852,903			1,174,038			912,631			5,288			—
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			19,812			—
Net realized gain (loss)		3,846,316			1,282,322			5,374,858			603,546			92,704			—
Realized gains (losses)		3,846,316			1,282,322			5,374,858			603,546			112,516			—
Unrealized appreciation (depreciation) during the period		(4,881,973	)		16,430,489			(6,657,263	)		32,228,145			(18,186	)		—
Net increase (decrease) in contract owners’ equity from operations		15,120			18,565,714			(108,367	)		33,744,322			99,618			—
Changes from principal transactions:
Purchase payments		509,749			847,146			1,003,254			1,463,809			14,276			—
Transfers between sub-accounts and the company		(3,292,461	)		5,911,749			(5,505,979	)		(4,428,814	)		638,707			—
Withdrawals		(6,848,193	)		(7,122,833	)		(27,016,854	)		(19,290,024	)		(11,131	)		—
Annual contract fee		(301,053	)		(289,378	)		(472,099	)		(554,834	)		(1,325	)		—
Net increase (decrease) in contract owners’ equity from principal transactions		(9,931,958	)		(653,316	)		(31,991,678	)		(22,809,863	)		640,527			—
Total increase (decrease) in contract owners’ equity		(9,916,838	)		17,912,398			(32,100,045	)		10,934,459			740,145			—
Contract owners’ equity at beginning of period		92,832,215			74,919,817			159,376,908			148,442,449			—			—
Contract owners’ equity at end of period	$	82,915,377		$	92,832,215		$	127,276,863		$	159,376,908		$	740,145		$	—
	2014			2013			2014			2013			2014			2013
Units, beginning of period		4,195,022			4,256,656			7,321,364			8,462,791			—			—
Units issued		166,820			600,937			705,417			593,324			144,043			—
Units redeemed		(618,634	)		(662,571	)		(2,127,082	)		(1,734,751	)		(88,357	)		—
Units, end of period		3,743,208			4,195,022			5,899,699			7,321,364			55,686			—

(b) Renamed on May 5, 2014. Previously known as Lifestyle Aggressive Trust.

(h) Sub-account available in prior year but no activity.

See accompanying notes.

56

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Lifestyle Aggressive Trust PS Series II						Lifestyle Balanced MVP Series I						Lifestyle Balanced MVP Series II
	2014			2013 (h)			2014 (c)			2013			2014 (c)			2013
Income:
Dividend distributions received	$	78,521		$	436		$	16,997,615		$	18,360,045		$	206,622,333		$	229,106,085
Expenses:
Mortality and expense risk and administrative charges		(47,770	)		(8	)		(7,874,431	)		(8,355,660	)		(124,272,919	)		(136,717,958	)
Net investment income (loss)		30,751			428			9,123,184			10,004,385			82,349,414			92,388,127
Realized gains (losses) on investments:
Capital gain distributions received		103,267			—			—			—			—			—
Net realized gain (loss)		31,975			—			25,972,275			16,563,752			97,737,282			(4,516,919	)
Realized gains (losses)		135,242			—			25,972,275			16,563,752			97,737,282			(4,516,919	)
Unrealized appreciation (depreciation) during the period		(15,484	)		20			(15,812,094	)		45,579,450			29,786,251			839,175,561
Net increase (decrease) in contract owners’ equity from operations		150,509			448			19,283,365			72,147,587			209,872,947			927,046,769
Changes from principal transactions:
Purchase payments		2,750			—			1,487,381			1,942,046			22,314,984			30,769,070
Transfers between sub-accounts and the company		3,893,928			23,057			(25,008,067	)		5,602,898			(488,970,792	)		(66,112,726	)
Withdrawals		(206,476	)		—			(73,705,636	)		(68,038,221	)		(978,445,124	)		(878,901,733	)
Annual contract fee		(13,623	)		—			(2,763,196	)		(2,900,000	)		(46,417,255	)		(51,085,741	)
Net increase (decrease) in contract owners’ equity from principal transactions		3,676,579			23,057			(99,989,518	)		(63,393,277	)		(1,491,518,187	)		(965,331,130	)
Total increase (decrease) in contract owners’ equity		3,827,088			23,505			(80,706,153	)		8,754,310			(1,281,645,240	)		(38,284,361	)
Contract owners’ equity at beginning of period		23,505			—			672,127,589			663,373,279			8,946,097,565			8,984,381,926
Contract owners’ equity at end of period	$	3,850,593		$	23,505		$	591,421,436		$	672,127,589		$	7,664,452,325		$	8,946,097,565
	2014			2013			2014			2013			2014			2013
Units, beginning of period		1,838			—			33,735,026			36,807,051			465,660,116			514,301,137
Units issued		342,908			1,838			616,954			1,780,850			32,253,540			27,163,886
Units redeemed		(53,657	)		—			(5,580,091	)		(4,852,875	)		(104,217,230	)		(75,804,907	)
Units, end of period		291,089			1,838			28,771,889			33,735,026			393,696,426			465,660,116

(c) Renamed on May 5, 2014. Previously known as Lifestyle Balanced Trust.

(h) Sub-account available in prior year but no activity.

See accompanying notes.

57

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Lifestyle Balanced MVP Series NAV						Lifestyle Balanced Trust PS Series I						Lifestyle Balanced Trust PS Series II
	2014 (c)			2013			2014			2013 (a)			2014			2013
Income:
Dividend distributions received	$	2,654		$	2,326		$	291,086		$	2,871		$	11,917,531		$	3,638,817
Expenses:
Mortality and expense risk and administrative charges		(1,076	)		(948	)		(90,721	)		(64	)		(5,882,150	)		(2,126,024	)
Net investment income (loss)		1,578			1,378			200,365			2,807			6,035,381			1,512,793
Realized gains (losses) on investments:
Capital gain distributions received		—			—			127,937			—			6,782,322			4,027,715
Net realized gain (loss)		166			97			36,599			(16	)		4,032,771			1,672,348
Realized gains (losses)		166			97			164,536			(16	)		10,815,093			5,700,063
Unrealized appreciation (depreciation) during the period		881			7,050			(5,190	)		(1,620	)		997,281			11,918,134
Net increase (decrease) in contract owners’ equity from operations		2,625			8,525			359,711			1,171			17,847,755			19,130,990
Changes from principal transactions:
Purchase payments		4,456			4,414			27,775			—			3,310,428			1,745,646
Transfers between sub-accounts and the company		—			—			10,811,591			144,109			284,957,189			27,126,101
Withdrawals		—			—			(520,901	)		(3,000	)		(32,250,810	)		(4,968,132	)
Annual contract fee		—			—			(37,668	)		—			(3,482,974	)		(1,982,023	)
Net increase (decrease) in contract owners’ equity from principal transactions		4,456			4,414			10,280,797			141,109			252,533,833			21,921,592
Total increase (decrease) in contract owners’ equity		7,081			12,939			10,640,508			142,280			270,381,588			41,052,582
Contract owners’ equity at beginning of period		83,905			70,966			142,280			—			205,650,300			164,597,718
Contract owners’ equity at end of period	$	90,986		$	83,905		$	10,782,788		$	142,280		$	476,031,888		$	205,650,300
	2014			2013			2014			2013			2014			2013
Units, beginning of period		4,893			4,616			11,257			—			13,892,525			12,280,686
Units issued		258			277			879,769			11,499			22,723,235			2,450,453
Units redeemed		—			—			(76,425	)		(242	)		(4,483,936	)		(838,614	)
Units, end of period		5,151			4,893			814,601			11,257			32,131,824			13,892,525

(a) Reflects the period from commencement of operations on December 9, 2013 through December 31, 2013.

(c) Renamed on May 5, 2014. Previously known as Lifestyle Balanced Trust.

See accompanying notes.

58

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Lifestyle Conservative MVP Series I						Lifestyle Conservative MVP Series II						Lifestyle Conservative Trust PS Series I
	2014 (d)			2013			2014 (d)			2013			2014 (h)			2013
Income:
Dividend distributions received	$	4,233,496		$	6,093,150		$	39,718,644		$	60,509,290		$	114,742		$	—
Expenses:
Mortality and expense risk and administrative charges		(2,062,396	)		(2,562,604	)		(25,107,446	)		(32,566,959	)		(28,067	)		—
Net investment income (loss)		2,171,100			3,530,546			14,611,198			27,942,331			86,675			—
Realized gains (losses) on investments:
Capital gain distributions received		8,925,964			5,992,850			92,033,861			62,381,138			45,731			—
Net realized gain (loss)		665,636			5,913,364			23,025,960			119,353,362			10,280			—
Realized gains (losses)		9,591,600			11,906,214			115,059,821			181,734,500			56,011			—
Unrealized appreciation (depreciation) during the period		(5,682,712	)		(10,480,163	)		(74,442,442	)		(166,104,387	)		(79,910	)		—
Net increase (decrease) in contract owners’ equity from operations		6,079,988			4,956,597			55,228,577			43,572,444			62,776			—
Changes from principal transactions:
Purchase payments		202,613			337,997			2,449,856			6,214,303			2,145			—
Transfers between sub-accounts and the company		(5,200,810	)		(34,959,130	)		(121,519,062	)		(351,496,843	)		5,114,067			—
Withdrawals		(24,329,079	)		(20,979,804	)		(243,350,281	)		(252,000,635	)		(1,255,836	)		—
Annual contract fee		(626,092	)		(789,389	)		(10,067,164	)		(12,772,945	)		(1,949	)		—
Net increase (decrease) in contract owners’ equity from principal transactions		(29,953,368	)		(56,390,326	)		(372,486,651	)		(610,056,120	)		3,858,427			—
Total increase (decrease) in contract owners’ equity		(23,873,380	)		(51,433,729	)		(317,258,074	)		(566,483,676	)		3,921,203			—
Contract owners’ equity at beginning of period		174,331,332			225,765,061			1,825,239,709			2,391,723,385			—			—
Contract owners’ equity at end of period	$	150,457,952		$	174,331,332		$	1,507,981,635		$	1,825,239,709		$	3,921,203		$	—
	2014			2013			2014			2013			2014			2013
Units, beginning of period		8,614,622			11,374,734			100,412,908			133,397,942			—			—
Units issued		642,306			832,262			12,277,078			8,542,023			510,961			—
Units redeemed		(2,016,629	)		(3,592,374	)		(31,298,234	)		(41,527,057	)		(210,458	)		—
Units, end of period		7,240,299			8,614,622			81,391,752			100,412,908			300,503			—

(d) Renamed on May 5, 2014. Previously known as Lifestyle Conservative Trust.

(h) Sub-account available in prior year but no activity.

See accompanying notes.

59

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Lifestyle Conservative Trust PS Series II						Lifestyle Growth MVP Series I						Lifestyle Growth MVP Series II
	2014			2013			2014 (e)			2013			2014 (e)			2013
Income:
Dividend distributions received	$	2,479,955		$	1,021,731		$	16,905,117		$	15,982,594		$	286,401,704		$	281,704,800
Expenses:
Mortality and expense risk and administrative charges		(1,143,752	)		(669,762	)		(7,651,524	)		(7,795,455	)		(176,572,425	)		(188,999,504	)
Net investment income (loss)		1,336,203			351,969			9,253,593			8,187,139			109,829,279			92,705,296
Realized gains (losses) on investments:
Capital gain distributions received		1,134,597			548,708			—			—			—			—
Net realized gain (loss)		1,112,300			1,062,088			32,278,672			15,634,765			206,720,292			13,970,832
Realized gains (losses)		2,246,897			1,610,796			32,278,672			15,634,765			206,720,292			13,970,832
Unrealized appreciation (depreciation) during the period		(728,123	)		(786,280	)		(34,894,864	)		83,410,738			(240,311,343	)		1,879,743,678
Net increase (decrease) in contract owners’ equity from operations		2,854,977			1,176,485			6,637,401			107,232,642			76,238,228			1,986,419,806
Changes from principal transactions:
Purchase payments		711,798			673,970			3,283,132			3,459,839			40,778,984			46,935,665
Transfers between sub-accounts and the company		53,286,205			(7,648,993	)		(20,914,642	)		14,554,094			(868,961,921	)		254,886,742
Withdrawals		(11,275,541	)		(2,388,334	)		(72,077,441	)		(55,659,833	)		(1,355,100,660	)		(1,078,403,722	)
Annual contract fee		(738,530	)		(541,073	)		(3,209,540	)		(3,250,175	)		(68,512,476	)		(74,006,475	)
Net increase (decrease) in contract owners’ equity from principal transactions		41,983,932			(9,904,430	)		(92,918,491	)		(40,896,075	)		(2,251,796,073	)		(850,587,790	)
Total increase (decrease) in contract owners’ equity		44,838,909			(8,727,945	)		(86,281,090	)		66,336,567			(2,175,557,845	)		1,135,832,016
Contract owners’ equity at beginning of period		45,903,529			54,631,474			683,479,694			617,143,127			12,998,168,659			11,862,336,643
Contract owners’ equity at end of period	$	90,742,438		$	45,903,529		$	597,198,604		$	683,479,694		$	10,822,610,814		$	12,998,168,659
	2014			2013			2014			2013			2014			2013
Units, beginning of period		3,377,566			4,108,791			35,064,127			37,057,992			666,340,790			708,897,028
Units issued		5,894,004			403,848			1,272,587			2,221,476			59,546,943			48,415,876
Units redeemed		(2,696,048	)		(1,135,073	)		(5,985,898	)		(4,215,341	)		(170,640,819	)		(90,972,114	)
Units, end of period		6,575,522			3,377,566			30,350,816			35,064,127			555,246,914			666,340,790

(e) Renamed on May 5, 2014. Previously known as Lifestyle Growth Trust.

See accompanying notes.

60

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Lifestyle Growth MVP Series NAV						Lifestyle Growth Trust PS Series I						Lifestyle Growth Trust PS Series II
	2014 (e)			2013			2014			2013 (a)			2014			2013
Income:
Dividend distributions received	$	19,757		$	16,178		$	544,834		$	35,180		$	30,200,217		$	3,490,788
Expenses:
Mortality and expense risk and administrative charges		(8,285	)		(7,535	)		(190,621	)		(1,372	)		(15,058,616	)		(2,350,533	)
Net investment income (loss)		11,472			8,643			354,213			33,808			15,141,601			1,140,255
Realized gains (losses) on investments:
Capital gain distributions received		—			—			233,099			—			13,252,732			5,859,201
Net realized gain (loss)		1,490			855			111,134			13			7,379,789			1,357,215
Realized gains (losses)		1,490			855			344,233			13			20,632,521			7,216,416
Unrealized appreciation (depreciation) during the period		(5,755	)		93,961			121,124			26,103			11,502,376			22,749,167
Net increase (decrease) in contract owners’ equity from operations		7,207			103,459			819,570			59,924			47,276,498			31,105,838
Changes from principal transactions:
Purchase payments		—			—			218,276			200			5,169,251			3,617,125
Transfers between sub-accounts and the company		—			—			19,669,607			2,382,962			1,032,865,160			89,866,147
Withdrawals		—			—			(1,730,963	)		—			(81,336,975	)		(3,706,481	)
Annual contract fee		—			—			(99,321	)		(1,657	)		(7,497,463	)		(1,957,020	)
Net increase (decrease) in contract owners’ equity from principal transactions		—			—			18,057,599			2,381,505			949,199,973			87,819,771
Total increase (decrease) in contract owners’ equity		7,207			103,459			18,877,169			2,441,429			996,476,471			118,925,609
Contract owners’ equity at beginning of period		679,563			576,104			2,441,429			—			283,825,987			164,900,378
Contract owners’ equity at end of period	$	686,770		$	679,563		$	21,318,598		$	2,441,429		$	1,280,302,458		$	283,825,987
	2014			2013			2014			2013			2014			2013
Units, beginning of period		36,483			36,483			191,976			—			18,545,220			12,312,492
Units issued		—			—			1,640,155			191,976			76,137,704			6,668,219
Units redeemed		—			—			(235,191	)		—			(8,898,061	)		(435,491	)
Units, end of period		36,483			36,483			1,596,940			191,976			85,784,863			18,545,220

(a) Reflects the period from commencement of operations on December 9, 2013 through December 31, 2013.

(e) Renamed on May 5, 2014. Previously known as Lifestyle Growth Trust.

See accompanying notes.

61

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Lifestyle Moderate MVP Series I						Lifestyle Moderate MVP Series II						Lifestyle Moderate Trust PS Series I
	2014 (f)			2013			2014 (f)			2013			2014			2013 (a)
Income:
Dividend distributions received	$	6,335,538		$	7,108,550		$	64,738,338		$	74,269,400		$	98,100		$	1,938
Expenses:
Mortality and expense risk and administrative charges		(2,941,886	)		(3,108,723	)		(38,439,029	)		(42,660,215	)		(28,773	)		(49	)
Net investment income (loss)		3,393,652			3,999,827			26,299,309			31,609,185			69,327			1,889
Realized gains (losses) on investments:
Capital gain distributions received		10,916,498			—			119,251,690			—			55,444			—
Net realized gain (loss)		11,020,562			9,409,098			118,009,978			31,693,835			11,317			—
Realized gains (losses)		21,937,060			9,409,098			237,261,668			31,693,835			66,761			—
Unrealized appreciation (depreciation) during the period		(16,803,329	)		7,562,718			(182,498,875	)		162,291,470			(38,590	)		(770	)
Net increase (decrease) in contract owners’ equity from operations		8,527,383			20,971,643			81,062,102			225,594,490			97,498			1,119
Changes from principal transactions:
Purchase payments		453,781			408,108			8,162,878			10,494,182			25,103			—
Transfers between sub-accounts and the company		(8,945,300	)		(971,399	)		(119,128,749	)		(49,879,771	)		3,589,584			89,926
Withdrawals		(26,193,500	)		(22,749,097	)		(299,071,130	)		(273,657,586	)		(274,641	)		—
Annual contract fee		(949,170	)		(1,000,264	)		(15,130,736	)		(16,662,562	)		(8,866	)		—
Net increase (decrease) in contract owners’ equity from principal transactions		(35,634,189	)		(24,312,652	)		(425,167,737	)		(329,705,737	)		3,331,180			89,926
Total increase (decrease) in contract owners’ equity		(27,106,806	)		(3,341,009	)		(344,105,635	)		(104,111,247	)		3,428,678			91,045
Contract owners’ equity at beginning of period		246,754,362			250,095,371			2,739,141,372			2,843,252,619			91,045			—
Contract owners’ equity at end of period	$	219,647,556		$	246,754,362		$	2,395,035,737		$	2,739,141,372		$	3,519,723		$	91,045
	2014			2013			2014			2013			2014			2013
Units, beginning of period		11,895,950			13,079,532			145,237,611			162,047,959			7,228			—
Units issued		601,909			1,060,539			14,176,505			12,286,570			293,280			7,228
Units redeemed		(2,239,759	)		(2,244,121	)		(34,796,600	)		(29,096,918	)		(33,321	)		—
Units, end of period		10,258,100			11,895,950			124,617,516			145,237,611			267,187			7,228

(a) Reflects the period from commencement of operations on December 9, 2013 through December 31, 2013.

(f) Renamed on May 5, 2014. Previously known as Lifestyle Moderate Trust.

See accompanying notes.

62

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Lifestyle Moderate Trust PS Series II						Mid Cap Index Trust Series I						Mid Cap Index Trust Series II
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	4,121,080		$	1,644,303		$	313,429		$	355,167		$	476,998		$	577,563
Expenses:
Mortality and expense risk and administrative charges		(1,923,384	)		(1,005,515	)		(497,913	)		(511,776	)		(1,014,642	)		(1,086,545	)
Net investment income (loss)		2,197,696			638,788			(184,484	)		(156,609	)		(537,644	)		(508,982	)
Realized gains (losses) on investments:
Capital gain distributions received		3,099,379			1,459,156			1,888,384			1,763,002			3,673,600			3,524,991
Net realized gain (loss)		1,782,446			1,314,480			2,755,052			2,795,765			5,428,171			3,991,983
Realized gains (losses)		4,881,825			2,773,636			4,643,436			4,558,767			9,101,771			7,516,974
Unrealized appreciation (depreciation) during the period		(1,257,679	)		3,404,245			(2,062,366	)		4,636,804			(4,099,312	)		11,291,143
Net increase (decrease) in contract owners’ equity from operations		5,821,842			6,816,669			2,396,586			9,038,962			4,464,815			18,299,135
Changes from principal transactions:
Purchase payments		845,376			814,892			172,148			133,736			283,494			232,038
Transfers between sub-accounts and the company		80,291,139			2,104,122			(1,244,861	)		127,745			(2,500,471	)		71,928
Withdrawals		(11,220,907	)		(2,598,890	)		(4,791,880	)		(3,774,810	)		(11,194,029	)		(12,053,886	)
Annual contract fee		(1,278,985	)		(903,812	)		(75,686	)		(82,405	)		(235,333	)		(269,892	)
Net increase (decrease) in contract owners’ equity from principal transactions		68,636,623			(583,688	)		(5,940,279	)		(3,595,734	)		(13,646,339	)		(12,019,812	)
Total increase (decrease) in contract owners’ equity		74,458,465			6,232,981			(3,543,693	)		5,443,228			(9,181,524	)		6,279,323
Contract owners’ equity at beginning of period		85,029,414			78,796,433			35,849,568			30,406,340			70,021,695			63,742,372
Contract owners’ equity at end of period	$	159,487,879		$	85,029,414		$	32,305,875		$	35,849,568		$	60,840,171		$	70,021,695
	2014			2013			2014			2013			2014			2013
Units, beginning of period		5,852,060			5,876,875			1,159,515			1,288,200			2,501,068			2,956,341
Units issued		6,823,724			814,256			51,706			161,423			143,337			375,862
Units redeemed		(1,787,524	)		(839,071	)		(241,631	)		(290,108	)		(613,871	)		(831,135	)
Units, end of period		10,888,260			5,852,060			969,590			1,159,515			2,030,534			2,501,068

See accompanying notes.

63

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Mid Cap Stock Trust Series I						Mid Cap Stock Trust Series II						Mid Value Trust Series I
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	163,194		$	57,427		$	—		$	—		$	455,957		$	650,973
Expenses:
Mortality and expense risk and administrative charges		(2,204,578	)		(2,222,561	)		(1,485,803	)		(1,584,346	)		(938,111	)		(957,310	)
Net investment income (loss)		(2,041,384	)		(2,165,134	)		(1,485,803	)		(1,584,346	)		(482,154	)		(306,337	)
Realized gains (losses) on investments:
Capital gain distributions received		29,166,118			2,870,631			17,280,478			1,794,546			5,927,103			4,261,809
Net realized gain (loss)		11,735,822			7,918,453			11,478,006			12,419,912			6,524,202			5,969,802
Realized gains (losses)		40,901,940			10,789,084			28,758,484			14,214,458			12,451,305			10,231,611
Unrealized appreciation (depreciation) during the period		(28,866,751	)		39,626,030			(21,984,204	)		16,368,967			(6,443,704	)		6,881,735
Net increase (decrease) in contract owners’ equity from operations		9,993,805			48,249,980			5,288,477			28,999,079			5,525,447			16,807,009
Changes from principal transactions:
Purchase payments		429,404			568,362			408,561			325,082			129,690			195,938
Transfers between sub-accounts and the company		(8,697,534	)		(9,363,518	)		(10,505,077	)		326,344			(2,561,925	)		(1,798,678	)
Withdrawals		(19,518,156	)		(17,397,322	)		(14,213,253	)		(18,854,262	)		(8,690,031	)		(8,127,284	)
Annual contract fee		(547,860	)		(585,803	)		(287,553	)		(332,510	)		(171,189	)		(195,330	)
Net increase (decrease) in contract owners’ equity from principal transactions		(28,334,146	)		(26,778,281	)		(24,597,322	)		(18,535,346	)		(11,293,455	)		(9,925,354	)
Total increase (decrease) in contract owners’ equity		(18,340,341	)		21,471,699			(19,308,845	)		10,463,733			(5,768,008	)		6,881,655
Contract owners’ equity at beginning of period		171,939,094			150,467,395			104,324,081			93,860,348			67,445,115			60,563,460
Contract owners’ equity at end of period	$	153,598,753		$	171,939,094		$	85,015,236		$	104,324,081		$	61,677,107		$	67,445,115
	2014			2013			2014			2013			2014			2013
Units, beginning of period		7,278,047			8,616,280			3,527,594			4,243,643			2,708,394			3,149,507
Units issued		143,396			271,225			360,564			738,075			63,308			135,584
Units redeemed		(1,296,917	)		(1,609,458	)		(1,153,532	)		(1,454,124	)		(498,523	)		(576,697	)
Units, end of period		6,124,526			7,278,047			2,734,626			3,527,594			2,273,179			2,708,394

See accompanying notes.

64

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Mid Value Trust Series II						Money Market Trust B Series NAV						Money Market Trust Series I
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	358,203		$	597,034		$	—		$	1,984		$	—		$	—
Expenses:
Mortality and expense risk and administrative charges		(1,144,974	)		(1,208,924	)		(212,267	)		(302,087	)		(1,119,550	)		(1,596,212	)
Net investment income (loss)		(786,771	)		(611,890	)		(212,267	)		(300,103	)		(1,119,550	)		(1,596,212	)
Realized gains (losses) on investments:
Capital gain distributions received		6,482,342			4,829,005			211			854			1,950			6,762
Net realized gain (loss)		8,595,448			7,917,633			—			—			—			—
Realized gains (losses)		15,077,790			12,746,638			211			854			1,950			6,762
Unrealized appreciation (depreciation) during the period		(8,503,574	)		6,683,911			(1	)		—			1			(1	)
Net increase (decrease) in contract owners’ equity from operations		5,787,445			18,818,659			(212,057	)		(299,249	)		(1,117,599	)		(1,589,451	)
Changes from principal transactions:
Purchase payments		214,210			197,549			1,110,657			285,977			1,408,406			2,268,274
Transfers between sub-accounts and the company		(2,849,168	)		(424,591	)		(2,473,268	)		(1,590,850	)		(14,151,177	)		(14,888,341	)
Withdrawals		(12,177,930	)		(12,634,139	)		(1,987,058	)		(6,785,419	)		(9,296,257	)		(28,376,904	)
Annual contract fee		(229,790	)		(260,513	)		(82,852	)		(126,127	)		(279,109	)		(382,154	)
Net increase (decrease) in contract owners’ equity from principal transactions		(15,042,678	)		(13,121,694	)		(3,432,521	)		(8,216,419	)		(22,318,137	)		(41,379,125	)
Total increase (decrease) in contract owners’ equity		(9,255,233	)		5,696,965			(3,644,578	)		(8,515,668	)		(23,435,736	)		(42,968,576	)
Contract owners’ equity at beginning of period		75,225,710			69,528,745			16,054,633			24,570,301			90,661,555			133,630,131
Contract owners’ equity at end of period	$	65,970,477		$	75,225,710		$	12,410,055		$	16,054,633		$	67,225,819		$	90,661,555
	2014			2013			2014			2013			2014			2013
Units, beginning of period		3,115,651			3,713,246			1,341,520			2,022,211			6,090,758			8,933,742
Units issued		88,998			228,871			91,683			496,475			115,562			1,589,750
Units redeemed		(688,993	)		(826,466	)		(380,483	)		(1,177,166	)		(1,661,975	)		(4,432,734	)
Units, end of period		2,515,656			3,115,651			1,052,720			1,341,520			4,544,345			6,090,758

See accompanying notes.

65

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Money Market Trust Series II						Mutual Shares Trust Series I						Natural Resources Trust Series II
	2014			2013			2014			2013			2014 (o)			2013
Income:
Dividend distributions received	$	—		$	—		$	6,606,653		$	2,907,393		$	736,221		$	275,148
Expenses:
Mortality and expense risk and administrative charges		(5,224,069	)		(7,926,379	)		(1,898,537	)		(1,916,235	)		(890,705	)		(1,221,881	)
Net investment income (loss)		(5,224,069	)		(7,926,379	)		4,708,116			991,158			(154,484	)		(946,733	)
Realized gains (losses) on investments:
Capital gain distributions received		8,687			30,374			3,708,126			—			—			—
Net realized gain (loss)		—			—			17,869,487			17,053,902			(11,301,864	)		1,097,455
Realized gains (losses)		8,687			30,374			21,577,613			17,053,902			(11,301,864	)		1,097,455
Unrealized appreciation (depreciation) during the period		(1	)		(2	)		(13,082,994	)		33,078,170			6,284,442			846,418
Net increase (decrease) in contract owners’ equity from operations		(5,215,383	)		(7,896,007	)		13,202,735			51,123,230			(5,171,906	)		997,140
Changes from principal transactions:
Purchase payments		1,316,957			3,201,206			678,225			799,843			305,733			326,235
Transfers between sub-accounts and the company		(64,414,943	)		(66,205,528	)		(3,648,025	)		(15,846,575	)		(56,356,385	)		(8,985,058	)
Withdrawals		(41,038,455	)		(176,118,372	)		(28,050,104	)		(18,106,004	)		(9,194,542	)		(10,410,478	)
Annual contract fee		(2,411,002	)		(3,417,064	)		(1,319,704	)		(1,363,885	)		(170,909	)		(255,268	)
Net increase (decrease) in contract owners’ equity from principal transactions		(106,547,443	)		(242,539,758	)		(32,339,608	)		(34,516,621	)		(65,416,103	)		(19,324,569	)
Total increase (decrease) in contract owners’ equity		(111,762,826	)		(250,435,765	)		(19,136,873	)		16,606,609			(70,588,009	)		(18,327,429	)
Contract owners’ equity at beginning of period		403,055,243			653,491,008			218,630,410			202,023,801			70,588,009			88,915,438
Contract owners’ equity at end of period	$	291,292,417		$	403,055,243		$	199,493,537		$	218,630,410		$	—		$	70,588,009
	2014			2013			2014			2013			2014			2013
Units, beginning of period		33,503,471			53,585,072			13,262,506			15,585,766			2,344,230			3,042,088
Units issued		1,614,726			8,684,730			162,641			47,646			310,110			291,646
Units redeemed		(10,537,405	)		(28,766,331	)		(2,037,243	)		(2,370,906	)		(2,654,340	)		(989,504	)
Units, end of period		24,580,792			33,503,471			11,387,904			13,262,506			—			2,344,230

(o) Terminated as an investment option and funds transferred to Global Trust on November 10, 2014.

See accompanying notes.

66

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	PIMCO All Asset (i)						Real Estate Securities Trust Series I						Real Estate Securities Trust Series II
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	1,130,767		$	1,287,967		$	736,997		$	797,129		$	761,565		$	892,609
Expenses:
Mortality and expense risk and administrative charges		(378,823	)		(492,475	)		(681,567	)		(676,215	)		(857,197	)		(914,142	)
Net investment income (loss)		751,944			795,492			55,430			120,914			(95,632	)		(21,533	)
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			—			—
Net realized gain (loss)		(46,331	)		402,721			4,720,327			3,774,688			7,679,448			8,065,680
Realized gains (losses)		(46,331	)		402,721			4,720,327			3,774,688			7,679,448			8,065,680
Unrealized appreciation (depreciation) during the period		(898,411	)		(1,797,397	)		6,852,751			(4,268,017	)		6,308,520			(8,563,067	)
Net increase (decrease) in contract owners’ equity from operations		(192,798	)		(599,184	)		11,628,508			(372,415	)		13,892,336			(518,920	)
Changes from principal transactions:
Purchase payments		91,918			63,851			107,032			119,351			263,965			304,734
Transfers between sub-accounts and the company		(2,681,823	)		(1,743,119	)		2,687,655			(653,402	)		4,111,438			(1,513,065	)
Withdrawals		(4,187,405	)		(3,957,718	)		(4,571,723	)		(5,325,279	)		(10,110,331	)		(10,421,615	)
Annual contract fee		(59,377	)		(74,981	)		(88,182	)		(98,722	)		(160,037	)		(191,901	)
Net increase (decrease) in contract owners’ equity from principal transactions		(6,836,687	)		(5,711,967	)		(1,865,218	)		(5,958,052	)		(5,894,965	)		(11,821,847	)
Total increase (decrease) in contract owners’ equity		(7,029,485	)		(6,311,151	)		9,763,290			(6,330,467	)		7,997,371			(12,340,767	)
Contract owners’ equity at beginning of period		28,264,076			34,575,227			39,699,358			46,029,825			49,640,809			61,981,576
Contract owners’ equity at end of period	$	21,234,591		$	28,264,076		$	49,462,648		$	39,699,358		$	57,638,180		$	49,640,809
	2014			2013			2014			2013			2014			2013
Units, beginning of period		1,471,881			1,771,903			1,089,885			1,243,285			1,753,770			2,118,042
Units issued		111,784			262,539			163,260			94,901			515,523			314,903
Units redeemed		(465,334	)		(562,561	)		(208,401	)		(248,301	)		(694,396	)		(679,175	)
Units, end of period		1,118,331			1,471,881			1,044,744			1,089,885			1,574,897			1,753,770

(i) Sub-account that invests in non-affiliated Trust.

See accompanying notes.

67

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Real Return Bond Trust Series II						Science & Technology Trust Series I						Science & Technology Trust Series II
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	1,002,783		$	1,155,477		$	—		$	—		$	—		$	—
Expenses:
Mortality and expense risk and administrative charges		(579,667	)		(817,890	)		(1,377,027	)		(1,246,923	)		(649,891	)		(596,360	)
Net investment income (loss)		423,116			337,587			(1,377,027	)		(1,246,923	)		(649,891	)		(596,360	)
Realized gains (losses) on investments:
Capital gain distributions received		—			—			2,894,217			—			1,295,669			—
Net realized gain (loss)		(79,357	)		943,245			10,633,995			7,469,773			5,148,123			4,162,128
Realized gains (losses)		(79,357	)		943,245			13,528,212			7,469,773			6,443,792			4,162,128
Unrealized appreciation (depreciation) during the period		863,861			(7,311,015	)		(2,229,609	)		23,467,202			(1,598,096	)		9,578,156
Net increase (decrease) in contract owners’ equity from operations		1,207,620			(6,030,183	)		9,921,576			29,690,052			4,195,805			13,143,924
Changes from principal transactions:
Purchase payments		77,896			162,316			220,965			528,823			287,112			163,558
Transfers between sub-accounts and the company		(1,791,033	)		(9,977,506	)		(4,238,222	)		(3,601,928	)		685,134			1,333,615
Withdrawals		(6,551,975	)		(8,459,291	)		(9,641,774	)		(8,844,788	)		(6,304,646	)		(6,544,001	)
Annual contract fee		(84,405	)		(128,683	)		(235,426	)		(238,860	)		(133,653	)		(131,505	)
Net increase (decrease) in contract owners’ equity from principal transactions		(8,349,517	)		(18,403,164	)		(13,894,457	)		(12,156,753	)		(5,466,053	)		(5,178,333	)
Total increase (decrease) in contract owners’ equity		(7,141,897	)		(24,433,347	)		(3,972,881	)		17,533,299			(1,270,248	)		7,965,591
Contract owners’ equity at beginning of period		40,384,383			64,817,730			96,525,725			78,992,426			43,353,957			35,388,366
Contract owners’ equity at end of period	$	33,242,486		$	40,384,383		$	92,552,844		$	96,525,725		$	42,083,709		$	43,353,957
	2014			2013			2014			2013			2014			2013
Units, beginning of period		2,358,052			3,373,308			4,874,381			5,715,094			1,840,624			2,110,737
Units issued		217,589			277,234			233,048			297,805			362,880			366,254
Units redeemed		(690,906	)		(1,292,490	)		(928,965	)		(1,138,518	)		(588,523	)		(636,367	)
Units, end of period		1,884,735			2,358,052			4,178,464			4,874,381			1,614,981			1,840,624

See accompanying notes.

68

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Short Term Government Income Trust Series I						Short Term Government Income Trust Series II						Small Cap Growth Trust Series I
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	846,496		$	1,019,062		$	656,235		$	887,513		$	—		$	—
Expenses:
Mortality and expense risk and administrative charges		(646,213	)		(831,683	)		(605,974	)		(800,099	)		(5,725	)		(5,610	)
Net investment income (loss)		200,283			187,379			50,261			87,414			(5,725	)		(5,610	)
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			90,785			28,836
Net realized gain (loss)		(549,392	)		(392,607	)		(703,634	)		(675,981	)		18,511			29,073
Realized gains (losses)		(549,392	)		(392,607	)		(703,634	)		(675,981	)		109,296			57,909
Unrealized appreciation (depreciation) during the period		208,950			(1,140,590	)		428,594			(740,596	)		(63,071	)		168,170
Net increase (decrease) in contract owners’ equity from operations		(140,159	)		(1,345,818	)		(224,779	)		(1,329,163	)		40,500			220,469
Changes from principal transactions:
Purchase payments		1,120,588			798,275			70,551			281,979			—			—
Transfers between sub-accounts and the company		(2,502,050	)		158,124			5,833,065			865,838			82,683			7,822
Withdrawals		(7,246,831	)		(7,366,240	)		(14,297,073	)		(11,090,017	)		(69,566	)		(133,439	)
Annual contract fee		(88,922	)		(123,624	)		(110,737	)		(150,346	)		(217	)		(288	)
Net increase (decrease) in contract owners’ equity from principal transactions		(8,717,215	)		(6,533,465	)		(8,504,194	)		(10,092,546	)		12,900			(125,905	)
Total increase (decrease) in contract owners’ equity		(8,857,374	)		(7,879,283	)		(8,728,973	)		(11,421,709	)		53,400			94,564
Contract owners’ equity at beginning of period		47,590,266			55,469,549			42,409,155			53,830,864			628,533			533,969
Contract owners’ equity at end of period	$	38,732,892		$	47,590,266		$	33,680,182		$	42,409,155		$	681,933		$	628,533
	2014			2013			2014			2013			2014			2013
Units, beginning of period		3,808,179			4,333,120			3,449,202			4,261,970			30,889			37,455
Units issued		808,024			1,426,272			1,108,038			1,554,340			5,314			2,125
Units redeemed		(1,508,192	)		(1,951,213	)		(1,803,426	)		(2,367,108	)		(4,778	)		(8,691	)
Units, end of period		3,108,011			3,808,179			2,753,814			3,449,202			31,425			30,889

See accompanying notes.

69

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Small Cap Growth Trust Series II						Small Cap Index Trust Series I						Small Cap Index Trust Series II
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	—		$	—		$	133,319		$	213,668		$	321,426		$	634,114
Expenses:
Mortality and expense risk and administrative charges		(555,173	)		(534,707	)		(226,580	)		(225,619	)		(758,967	)		(860,457	)
Net investment income (loss)		(555,173	)		(534,707	)		(93,261	)		(11,951	)		(437,541	)		(226,343	)
Realized gains (losses) on investments:
Capital gain distributions received		5,551,798			1,635,341			890,796			1,035,565			2,808,639			3,564,356
Net realized gain (loss)		2,676,291			1,440,433			875,853			410,465			1,722,592			(651,178	)
Realized gains (losses)		8,228,089			3,075,774			1,766,649			1,446,030			4,531,231			2,913,178
Unrealized appreciation (depreciation) during the period		(5,963,558	)		9,373,524			(1,268,567	)		3,127,050			(3,081,795	)		13,911,703
Net increase (decrease) in contract owners’ equity from operations		1,709,358			11,914,591			404,821			4,561,129			1,011,895			16,598,538
Changes from principal transactions:
Purchase payments		187,326			276,489			34,479			65,874			202,819			250,124
Transfers between sub-accounts and the company		(7,606,068	)		5,819,807			(432,673	)		202,339			(861,015	)		(3,453,051	)
Withdrawals		(4,827,440	)		(4,263,972	)		(1,644,286	)		(1,537,002	)		(9,617,719	)		(11,048,799	)
Annual contract fee		(88,128	)		(91,049	)		(40,057	)		(42,665	)		(199,617	)		(235,972	)
Net increase (decrease) in contract owners’ equity from principal transactions		(12,334,310	)		1,741,275			(2,082,537	)		(1,311,454	)		(10,475,532	)		(14,487,698	)
Total increase (decrease) in contract owners’ equity		(10,624,952	)		13,655,866			(1,677,716	)		3,249,675			(9,463,637	)		2,110,840
Contract owners’ equity at beginning of period		41,882,903			28,227,037			16,350,239			13,100,564			54,104,792			51,993,952
Contract owners’ equity at end of period	$	31,257,951		$	41,882,903		$	14,672,523		$	16,350,239		$	44,641,155		$	54,104,792
	2014			2013			2014			2013			2014			2013
Units, beginning of period		1,580,005			1,509,189			637,715			698,433			2,055,624			2,690,873
Units issued		320,936			753,999			40,628			67,936			77,998			107,495
Units redeemed		(771,555	)		(683,183	)		(122,823	)		(128,654	)		(488,406	)		(742,744	)
Units, end of period		1,129,386			1,580,005			555,520			637,715			1,645,216			2,055,624

See accompanying notes.

70

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Small Cap Opportunities Trust Series I						Small Cap Opportunities Trust Series II						Small Cap Value Trust Series I
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	24,896		$	158,798		$	—		$	134,101		$	4,600		$	3,465
Expenses:
Mortality and expense risk and administrative charges		(788,703	)		(432,590	)		(689,050	)		(476,640	)		(6,684	)		(6,412	)
Net investment income (loss)		(763,807	)		(273,792	)		(689,050	)		(342,539	)		(2,084	)		(2,947	)
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			80,404			34,246
Net realized gain (loss)		6,603,775			2,564,946			5,251,506			3,666,424			26,195			54,190
Realized gains (losses)		6,603,775			2,564,946			5,251,506			3,666,424			106,599			88,436
Unrealized appreciation (depreciation) during the period		(5,654,457	)		7,035,457			(4,502,682	)		6,301,156			(60,550	)		100,143
Net increase (decrease) in contract owners’ equity from operations		185,511			9,326,611			59,774			9,625,041			43,965			185,632
Changes from principal transactions:
Purchase payments		105,666			58,568			306,942			157,944			—			—
Transfers between sub-accounts and the company		(5,188,837	)		32,027,737			(3,858,234	)		18,772,873			43,627			41,983
Withdrawals		(7,021,818	)		(3,047,028	)		(6,467,722	)		(4,449,540	)		(56,239	)		(119,883	)
Annual contract fee		(121,970	)		(68,659	)		(148,399	)		(106,964	)		(250	)		(342	)
Net increase (decrease) in contract owners’ equity from principal transactions		(12,226,959	)		28,970,618			(10,167,413	)		14,374,313			(12,862	)		(78,242	)
Total increase (decrease) in contract owners’ equity		(12,041,448	)		38,297,229			(10,107,639	)		23,999,354			31,103			107,390
Contract owners’ equity at beginning of period		61,924,219			23,626,990			49,563,054			25,563,700			712,106			604,716
Contract owners’ equity at end of period	$	49,882,771		$	61,924,219		$	39,455,415		$	49,563,054		$	743,209		$	712,106
	2014			2013			2014			2013			2014			2013
Units, beginning of period		1,890,642			999,229			1,607,757			1,160,781			30,222			33,931
Units issued		46,128			1,108,724			173,705			816,473			1,971			2,188
Units redeemed		(429,270	)		(217,311	)		(508,909	)		(369,497	)		(2,474	)		(5,897	)
Units, end of period		1,507,500			1,890,642			1,272,553			1,607,757			29,719			30,222

See accompanying notes.

71

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Small Cap Value Trust Series II						Small Company Value Trust Series I						Small Company Value Trust Series II
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	163,288		$	159,939		$	16,035		$	969,371		$	—		$	986,283
Expenses:
Mortality and expense risk and administrative charges		(601,156	)		(628,722	)		(827,999	)		(908,310	)		(873,863	)		(1,009,069	)
Net investment income (loss)		(437,868	)		(468,783	)		(811,964	)		61,061			(873,863	)		(22,786	)
Realized gains (losses) on investments:
Capital gain distributions received		4,487,426			2,226,118			1,178,226			—			1,174,332			—
Net realized gain (loss)		4,099,253			3,965,780			4,525,045			2,342,635			4,383,348			4,418,132
Realized gains (losses)		8,586,679			6,191,898			5,703,271			2,342,635			5,557,680			4,418,132
Unrealized appreciation (depreciation) during the period		(6,251,656	)		5,205,014			(5,839,237	)		13,256,375			(5,814,273	)		11,911,592
Net increase (decrease) in contract owners’ equity from operations		1,897,155			10,928,129			(947,930	)		15,660,071			(1,130,456	)		16,306,938
Changes from principal transactions:
Purchase payments		110,959			80,080			218,470			415,589			239,161			310,631
Transfers between sub-accounts and the company		(1,330,050	)		2,747,348			(4,004,756	)		(2,787,253	)		(1,604,614	)		(3,250,185	)
Withdrawals		(6,118,243	)		(5,485,401	)		(6,492,955	)		(7,645,826	)		(9,545,209	)		(11,662,601	)
Annual contract fee		(96,363	)		(99,293	)		(115,310	)		(139,792	)		(164,089	)		(204,385	)
Net increase (decrease) in contract owners’ equity from principal transactions		(7,433,697	)		(2,757,266	)		(10,394,551	)		(10,157,282	)		(11,074,751	)		(14,806,540	)
Total increase (decrease) in contract owners’ equity		(5,536,542	)		8,170,863			(11,342,481	)		5,502,789			(12,205,207	)		1,500,398
Contract owners’ equity at beginning of period		44,414,360			36,243,497			62,666,546			57,163,757			63,340,850			61,840,452
Contract owners’ equity at end of period	$	38,877,818		$	44,414,360		$	51,324,065		$	62,666,546		$	51,135,643		$	63,340,850
	2014			2013			2014			2013			2014			2013
Units, beginning of period		1,702,861			1,813,559			1,744,585			2,066,168			2,184,072			2,734,378
Units issued		429,523			424,809			44,149			89,229			137,654			162,435
Units redeemed		(693,482	)		(535,507	)		(340,696	)		(410,812	)		(519,130	)		(712,741	)
Units, end of period		1,438,902			1,702,861			1,448,038			1,744,585			1,802,596			2,184,072

See accompanying notes.

72

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Smaller Company Growth Trust Series I					Smaller Company Growth Trust Series II					Strategic Income Opportunities Trust Series I
	2014		2013 (q)			2014		2013 (q)			2014			2013
Income:
Dividend distributions received	$	—	$	—		$	—	$	—		$	2,108,540		$	2,934,425
Expenses:
Mortality and expense risk and administrative charges		—		(409,117	)		—		(254,149	)		(735,126	)		(822,598	)
Net investment income (loss)		—		(409,117	)		—		(254,149	)		1,373,414			2,111,827
Realized gains (losses) on investments:
Capital gain distributions received		—		2,034,259			—		1,162,445			—			—
Net realized gain (loss)		—		11,332,580			—		5,728,859			(849,078	)		(984,339	)
Realized gains (losses)		—		13,366,839			—		6,891,304			(849,078	)		(984,339	)
Unrealized appreciation (depreciation) during the period		—		(4,546,851	)		—		(2,040,522	)		1,204,894			149,595
Net increase (decrease) in contract owners’ equity from operations		—		8,410,871			—		4,596,633			1,729,230			1,277,083
Changes from principal transactions:
Purchase payments		—		84,298			—		64,078			115,438			199,039
Transfers between sub-accounts and the company		—		(32,516,858	)		—		(16,549,381	)		(622,847	)		(440,396	)
Withdrawals		—		(2,653,554	)		—		(3,096,007	)		(5,529,569	)		(7,068,534	)
Annual contract fee		—		(78,740	)		—		(63,263	)		(66,961	)		(77,978	)
Net increase (decrease) in contract owners’ equity from principal transactions		—		(35,164,854	)		—		(19,644,573	)		(6,103,939	)		(7,387,869	)
Total increase (decrease) in contract owners’ equity		—		(26,753,983	)		—		(15,047,940	)		(4,374,709	)		(6,110,786	)
Contract owners’ equity at beginning of period		—		26,753,983			—		15,047,940			51,408,628			57,519,414
Contract owners’ equity at end of period	$	—	$	—		$	—	$	—		$	47,033,919		$	51,408,628
	2014		2013			2014		2013			2014			2013
Units, beginning of period		—		1,576,139			—		896,853			2,443,294			2,794,996
Units issued		—		119,528			—		256,304			125,787			236,392
Units redeemed		—		(1,695,667	)		—		(1,153,157	)		(410,086	)		(588,094	)
Units, end of period		—		—			—		—			2,158,995			2,443,294

(q) Terminated as an investment option and funds transferred to Small Cap Opportunities Trust on December 9, 2013.

See accompanying notes.

73

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Strategic Income Opportunities Trust Series II						Total Bond Market Trust B Series II						Total Bond Market Trust B Series NAV
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	2,105,054		$	3,061,337		$	1,964,652		$	2,559,976		$	4,123,260		$	4,526,886
Expenses:
Mortality and expense risk and administrative charges		(855,190	)		(969,265	)		(1,003,215	)		(1,540,550	)		(1,180,966	)		(1,170,554	)
Net investment income (loss)		1,249,864			2,092,072			961,437			1,019,426			2,942,294			3,356,332
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			—			—
Net realized gain (loss)		(1,309,511	)		(1,424,202	)		(2,116,401	)		(2,252,902	)		(862,571	)		(342,009	)
Realized gains (losses)		(1,309,511	)		(1,424,202	)		(2,116,401	)		(2,252,902	)		(862,571	)		(342,009	)
Unrealized appreciation (depreciation) during the period		1,784,717			539,369			3,961,076			(3,393,180	)		4,509,159			(7,399,712	)
Net increase (decrease) in contract owners’ equity from operations		1,725,070			1,207,239			2,806,112			(4,626,656	)		6,588,882			(4,385,389	)
Changes from principal transactions:
Purchase payments		206,956			157,133			238,213			545,002			370,286			468,283
Transfers between sub-accounts and the company		(3,468	)		3,095,101			1,419,850			(42,876,955	)		2,523,054			15,431,292
Withdrawals		(9,590,697	)		(11,165,056	)		(16,391,772	)		(15,522,068	)		(16,984,419	)		(8,854,029	)
Annual contract fee		(143,954	)		(172,216	)		(467,830	)		(701,645	)		(1,134,511	)		(1,159,002	)
Net increase (decrease) in contract owners’ equity from principal transactions		(9,531,163	)		(8,085,038	)		(15,201,539	)		(58,555,666	)		(15,225,590	)		5,886,544
Total increase (decrease) in contract owners’ equity		(7,806,093	)		(6,877,799	)		(12,395,427	)		(63,182,322	)		(8,636,708	)		1,501,155
Contract owners’ equity at beginning of period		56,410,215			63,288,014			75,349,690			138,532,012			134,025,350			132,524,195
Contract owners’ equity at end of period	$	48,604,122		$	56,410,215		$	62,954,263		$	75,349,690		$	125,388,642		$	134,025,350
	2014			2013			2014			2013			2014			2013
Units, beginning of period		2,797,996			3,197,994			6,318,672			11,123,949			11,116,677			10,628,736
Units issued		313,418			476,334			3,362,194			2,251,174			443,307			1,444,927
Units redeemed		(760,818	)		(876,332	)		(4,619,562	)		(7,056,451	)		(1,664,162	)		(956,986	)
Units, end of period		2,350,596			2,797,996			5,061,304			6,318,672			9,895,822			11,116,677

See accompanying notes.

74

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Total Return Trust Series I						Total Return Trust Series II						Total Stock Market Index Trust Series I
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	4,156,105		$	4,456,454		$	4,622,166		$	5,489,731		$	188,899		$	187,138
Expenses:
Mortality and expense risk and administrative charges		(1,905,382	)		(2,303,809	)		(2,481,738	)		(3,326,062	)		(235,365	)		(204,105	)
Net investment income (loss)		2,250,723			2,152,645			2,140,428			2,163,669			(46,466	)		(16,967	)
Realized gains (losses) on investments:
Capital gain distributions received		—			3,273,733			—			4,325,024			240,255			182,630
Net realized gain (loss)		(568,753	)		2,521,445			(2,202,652	)		915,239			760,885			636,988
Realized gains (losses)		(568,753	)		5,795,178			(2,202,652	)		5,240,263			1,001,140			819,618
Unrealized appreciation (depreciation) during the period		2,386,722			(13,534,500	)		4,615,092			(15,687,227	)		530,078			2,803,651
Net increase (decrease) in contract owners’ equity from operations		4,068,692			(5,586,677	)		4,552,868			(8,283,295	)		1,484,752			3,606,302
Changes from principal transactions:
Purchase payments		380,460			486,647			1,209,809			950,876			20,851			62,815
Transfers between sub-accounts and the company		(2,315,992	)		(13,740,033	)		(14,785,997	)		(32,526,458	)		2,447,844			276,659
Withdrawals		(16,154,710	)		(19,421,747	)		(25,558,975	)		(35,278,019	)		(1,403,810	)		(884,962	)
Annual contract fee		(240,241	)		(339,310	)		(367,491	)		(536,880	)		(27,339	)		(25,126	)
Net increase (decrease) in contract owners’ equity from principal transactions		(18,330,483	)		(33,014,443	)		(39,502,654	)		(67,390,481	)		1,037,546			(570,614	)
Total increase (decrease) in contract owners’ equity		(14,261,791	)		(38,601,120	)		(34,949,786	)		(75,673,776	)		2,522,298			3,035,688
Contract owners’ equity at beginning of period		134,679,853			173,280,973			173,637,056			249,310,832			14,852,985			11,817,297
Contract owners’ equity at end of period	$	120,418,062		$	134,679,853		$	138,687,270		$	173,637,056		$	17,375,283		$	14,852,985
	2014			2013			2014			2013			2014			2013
Units, beginning of period		6,065,486			7,523,775			9,212,786			12,616,856			834,815			874,568
Units issued		456,445			443,797			808,390			1,237,356			152,966			108,966
Units redeemed		(1,262,248	)		(1,902,086	)		(2,770,929	)		(4,641,426	)		(99,531	)		(148,719	)
Units, end of period		5,259,683			6,065,486			7,250,247			9,212,786			888,250			834,815

See accompanying notes.

75

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Total Stock Market Index Trust Series II						U.S. Equity Trust Series I						U.S. Equity Trust Series II
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	337,975		$	415,376		$	1,532,759		$	1,757,069		$	90,304		$	108,659
Expenses:
Mortality and expense risk and administrative charges		(556,303	)		(562,739	)		(1,569,524	)		(1,573,159	)		(116,465	)		(124,104	)
Net investment income (loss)		(218,328	)		(147,363	)		(36,765	)		183,910			(26,161	)		(15,445	)
Realized gains (losses) on investments:
Capital gain distributions received		530,821			471,306			—			—			—			—
Net realized gain (loss)		2,604,626			1,090,724			4,472,227			2,512,664			489,960			384,750
Realized gains (losses)		3,135,447			1,562,030			4,472,227			2,512,664			489,960			384,750
Unrealized appreciation (depreciation) during the period		176,480			8,083,767			5,425,016			22,889,672			163,908			1,400,177
Net increase (decrease) in contract owners’ equity from operations		3,093,599			9,498,434			9,860,478			25,586,246			627,707			1,769,482
Changes from principal transactions:
Purchase payments		182,657			207,230			256,058			404,258			19,976			80,749
Transfers between sub-accounts and the company		2,343,727			(60,068	)		(2,904,341	)		(3,157,366	)		(299,711	)		155,603
Withdrawals		(6,941,579	)		(6,105,072	)		(12,768,576	)		(12,650,561	)		(1,120,606	)		(1,424,177	)
Annual contract fee		(140,398	)		(161,719	)		(138,033	)		(165,203	)		(29,593	)		(44,323	)
Net increase (decrease) in contract owners’ equity from principal transactions		(4,555,593	)		(6,119,629	)		(15,554,892	)		(15,568,872	)		(1,429,934	)		(1,232,148	)
Total increase (decrease) in contract owners’ equity		(1,461,994	)		3,378,805			(5,694,414	)		10,017,374			(802,227	)		537,334
Contract owners’ equity at beginning of period		36,728,104			33,349,299			113,144,895			103,127,521			7,839,672			7,302,338
Contract owners’ equity at end of period	$	35,266,110		$	36,728,104		$	107,450,481		$	113,144,895		$	7,037,445		$	7,839,672
	2014			2013			2014			2013			2014			2013
Units, beginning of period		1,603,910			1,905,301			7,022,288			8,093,529			490,229			575,607
Units issued		177,338			121,854			48,842			62,388			26,071			84,534
Units redeemed		(374,085	)		(423,245	)		(978,281	)		(1,133,629	)		(112,568	)		(169,912	)
Units, end of period		1,407,163			1,603,910			6,092,849			7,022,288			403,732			490,229

See accompanying notes.

76

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Ultra Short Term Bond Trust Series I						Ultra Short Term Bond Trust Series II						Utilities Trust Series I
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	139,603		$	135,325		$	2,768,446		$	1,877,507		$	610,488		$	388,887
Expenses:
Mortality and expense risk and administrative charges		(88,503	)		(68,907	)		(3,147,896	)		(2,411,628	)		(313,024	)		(305,466	)
Net investment income (loss)		51,100			66,418			(379,450	)		(534,121	)		297,464			83,421
Realized gains (losses) on investments:
Capital gain distributions received		—			—			—			—			751,545			—
Net realized gain (loss)		(154,480	)		(95,113	)		(2,517,619	)		(2,119,670	)		2,327,794			1,625,460
Realized gains (losses)		(154,480	)		(95,113	)		(2,517,619	)		(2,119,670	)		3,079,339			1,625,460
Unrealized appreciation (depreciation) during the period		13,644			(34,476	)		(956,934	)		(129,326	)		(1,194,542	)		1,709,242
Net increase (decrease) in contract owners’ equity from operations		(89,736	)		(63,171	)		(3,854,003	)		(2,783,117	)		2,182,261			3,418,123
Changes from principal transactions:
Purchase payments		6,232			7,150			3,140,916			4,101,070			28,602			60,304
Transfers between sub-accounts and the company		21,325,116			12,143,074			294,385,030			222,885,691			1,389,807			(219,333	)
Withdrawals		(22,186,752	)		(9,394,628	)		(278,364,844	)		(155,522,046	)		(3,182,936	)		(2,750,713	)
Annual contract fee		(93,172	)		(98,418	)		(1,339,344	)		(1,039,266	)		(44,213	)		(52,424	)
Net increase (decrease) in contract owners’ equity from principal transactions		(948,576	)		2,657,178			17,821,758			70,425,449			(1,808,740	)		(2,962,166	)
Total increase (decrease) in contract owners’ equity		(1,038,312	)		2,594,007			13,967,755			67,642,332			373,521			455,957
Contract owners’ equity at beginning of period		9,848,649			7,254,642			187,845,018			120,202,686			19,525,852			19,069,895
Contract owners’ equity at end of period	$	8,810,337		$	9,848,649		$	201,812,773		$	187,845,018		$	19,899,373		$	19,525,852
	2014			2013			2014			2013			2014			2013
Units, beginning of period		805,526			588,127			15,827,427			9,950,153			706,148			820,409
Units issued		2,318,907			1,807,106			34,824,080			27,446,773			141,569			101,608
Units redeemed		(2,396,848	)		(1,589,707	)		(33,364,033	)		(21,569,499	)		(198,033	)		(215,869	)
Units, end of period		727,585			805,526			17,287,474			15,827,427			649,684			706,148

See accompanying notes.

77

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Utilities Trust Series II						Value Opportunities (i)						Value Trust Series I
	2014			2013			2014			2013			2014			2013
Income:
Dividend distributions received	$	553,403		$	362,608		$	2,387		$	14,998		$	417,935		$	759,038
Expenses:
Mortality and expense risk and administrative charges		(328,496	)		(342,756	)		(60,824	)		(60,486	)		(1,221,696	)		(1,257,585	)
Net investment income (loss)		224,907			19,852			(58,437	)		(45,488	)		(803,761	)		(498,547	)
Realized gains (losses) on investments:
Capital gain distributions received		740,595			—			247,625			—			8,723,715			—
Net realized gain (loss)		2,550,532			2,626,757			233,103			12,613			9,382,082			7,973,573
Realized gains (losses)		3,291,127			2,626,757			480,728			12,613			18,105,797			7,973,573
Unrealized appreciation (depreciation) during the period		(1,407,580	)		960,321			(291,633	)		1,388,131			(9,735,228	)		20,367,620
Net increase (decrease) in contract owners’ equity from operations		2,108,454			3,606,930			130,658			1,355,256			7,566,808			27,842,646
Changes from principal transactions:
Purchase payments		51,915			154,352			12,680			3,180			184,646			347,674
Transfers between sub-accounts and the company		539,252			(424,855	)		(197,114	)		(220,391	)		(4,910,472	)		(5,573,983	)
Withdrawals		(3,915,186	)		(3,838,710	)		(556,463	)		(367,663	)		(13,712,599	)		(10,907,768	)
Annual contract fee		(63,614	)		(68,494	)		(13,423	)		(14,155	)		(270,683	)		(297,334	)
Net increase (decrease) in contract owners’ equity from principal transactions		(3,387,633	)		(4,177,707	)		(754,320	)		(599,029	)		(18,709,108	)		(16,431,411	)
Total increase (decrease) in contract owners’ equity		(1,279,179	)		(570,777	)		(623,662	)		756,227			(11,142,300	)		11,411,235
Contract owners’ equity at beginning of period		20,042,630			20,613,407			4,387,200			3,630,973			99,907,065			88,495,830
Contract owners’ equity at end of period	$	18,763,451		$	20,042,630		$	3,763,538		$	4,387,200		$	88,764,765		$	99,907,065
	2014			2013			2014			2013			2014			2013
Units, beginning of period		494,159			599,810			83,852			98,881			3,190,504			3,840,703
Units issued		77,378			82,226			464			44			66,436			155,689
Units redeemed		(152,849	)		(187,877	)		(11,847	)		(15,073	)		(630,193	)		(805,888	)
Units, end of period		418,688			494,159			72,469			83,852			2,626,747			3,190,504

(i) Sub-account that invests in non-affiliated Trust.

See accompanying notes.

78

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Statements of Operations and Changes in Contract Owners’ Equity

For the years ended December 31,

	Value Trust Series II
	2014			2013
Income:
Dividend distributions received	$	76,011		$	184,622
Expenses:
Mortality and expense risk and administrative charges		(460,951	)		(465,285	)
Net investment income (loss)		(384,940	)		(280,663	)
Realized gains (losses) on investments:
Capital gain distributions received		2,791,905			—
Net realized gain (loss)		4,132,582			3,810,444
Realized gains (losses)		6,924,487			3,810,444
Unrealized appreciation (depreciation) during the period		(4,312,579	)		4,854,027
Net increase (decrease) in contract owners’ equity from operations		2,226,968			8,383,808
Changes from principal transactions:
Purchase payments		92,430			63,170
Transfers between sub-accounts and the company		(1,573,926	)		841,334
Withdrawals		(4,126,169	)		(4,001,898	)
Annual contract fee		(80,880	)		(87,646	)
Net increase (decrease) in contract owners’ equity from principal transactions		(5,688,545	)		(3,185,040	)
Total increase (decrease) in contract owners’ equity		(3,461,577	)		5,198,768
Contract owners’ equity at beginning of period		31,852,918			26,654,150
Contract owners’ equity at end of period	$	28,391,341		$	31,852,918
	2014			2013
Units, beginning of period		1,099,312			1,216,021
Units issued		162,610			233,180
Units redeemed		(342,357	)		(349,889	)
Units, end of period		919,565			1,099,312

See accompanying notes.

79

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements

December 31, 2014

1. Organization

John Hancock Life Insurance Company (U.S.A.) Separate Account H (the “Account”) is a separate account established by John Hancock Life Insurance Company (U.S.A.) (the “Company”). The Account operates as a Unit Investment Trust under the Investment Company Act of 1940, as amended and is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The Account consists of 126 active sub-accounts which are exclusively invested in a corresponding portfolio of the John Hancock Variable Insurance Trust (the “Trust”), and 5 sub-accounts that are invested in portfolios of other Non-affiliated Trusts (the “Non-affiliated Trusts”). The Trust is registered under the Act as an open-ended management investment company, commonly known as a mutual fund, which does not transact with the general public. The Account is a funding vehicle for the allocation of net premiums under variable annuity contracts (the “Contracts”) issued by the Company.

The Company is a stock life insurance company incorporated under the laws of Michigan in 1979. The Company is an indirect, wholly owned subsidiary of Manulife Financial Corporation (“MFC”), a Canadian based publicly traded life insurance company. MFC and its subsidiaries are known collectively as Manulife Financial.

The Company is required to maintain assets in the Account with a total fair value of at least equal to the reserves and other liabilities relating to the variable benefits under all Contracts participating in the Account. These assets may not be charged with liabilities which arise from any other business the Company conducts. However, all obligations under the Contracts are general corporate obligations of the Company.

In addition to the Account, certain contract owners may also allocate funds to the fixed account, which is part of the Company’s general account. Because of exemptive and exclusionary provisions, interests in the fixed account have not been registered under the Securities Act of 1933, and the Company’s general account has not been registered as an investment company under the Investment Company Act of 1940. Net interfund transfers include transfers between separate and general accounts.

Each sub-account holds shares of a particular series (“Portfolio”) of a registered investment company. Sub-accounts that invest in Portfolios of the Trust may offer 4 classes of units to fund Contracts issued by the Company. These classes, Series I, Series II, Series III and Series NAV, represent an interest in the same Trust Portfolio, but in different classes of that Portfolio. Series I, Series II, Series III and Series NAV shares of the Trust Portfolio differ in the level of 12b-1 fees and other expenses assessed against the Portfolio’s assets.

As a result of a portfolio change, the following sub-accounts of the Account were renamed as follows:

Previous Name	New Name	Effective Date
Financial Services Trust Series I	Financial Industries Trust Series I	11/10/2014
Financial Services Trust Series II	Financial Industries Trust Series II	11/10/2014
Lifestyle Aggressive Trust Series I	Lifestyle Aggressive MVP Series I	5/5/2014
Lifestyle Aggressive Trust Series II	Lifestyle Aggressive MVP Series II	5/5/2014
Lifestyle Balanced Trust Series I	Lifestyle Balanced MVP Series I	5/5/2014
Lifestyle Balanced Trust Series II	Lifestyle Balanced MVP Series II	5/5/2014
Lifestyle Balanced Trust Series NAV	Lifestyle Balanced MVP Series NAV	5/5/2014
Lifestyle Conservative Trust Series I	Lifestyle Conservative MVP Series I	5/5/2014
Lifestyle Conservative Trust Series II	Lifestyle Conservative MVP Series II	5/5/2014
Lifestyle Growth Trust Series I	Lifestyle Growth MVP Series I	5/5/2014
Lifestyle Growth Trust Series II	Lifestyle Growth MVP Series II	5/5/2014
Lifestyle Growth Trust Series NAV	Lifestyle Growth MVP Series NAV	5/5/2014
Lifestyle Moderate Trust Series I	Lifestyle Moderate MVP Series I	5/5/2014
Lifestyle Moderate Trust Series II	Lifestyle Moderate MVP Series II	5/5/2014

Sub-accounts closed in 2014 are as follows:

80

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

1. Organization — (continued):

Sub-accounts Closed	Effective Date
Bond PS Series II	11/10/2014
Fundamental Value Trust Series I	11/10/2014
Fundamental Value Trust Series II	11/10/2014
Natural Resources Trust Series II	11/10/2014

81

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

2. Significant Accounting Policies

Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from reported results using those estimates.

Valuation of Investments

Investments made in the Portfolios of the Trust, and of the Non-affiliated Trusts, are valued at fair value based on the reported net asset values of such Portfolios. Investment transactions are recorded on the trade date. Income from dividends, and gains from realized gain distributions are recorded on the ex-dividend date. Realized gains and losses on the sales of investments are computed on a first-in, first-out basis.

Net Assets in Payout (Annuitization) Period

A portion of net assets is allocated to annuity policies in the payout period. The liability for these policies is calculated using statutory accounting using mortality assumptions and an assumed interest rate. Mortality assumptions are based on the Individual Annuity Mortality Table in effect at the time of annuitization. The assumed interest rate is 3% to 4%, as regulated by the laws of the respective states. The mortality risk is borne entirely by the Company and may result in additional amounts being transferred into the variable annuity account by the Company to cover greater longevity of annuitants than expected. Conversely, if amounts allocated exceed amounts required, transfers may be made to the Company.

Amounts Receivable/Payable

Receivables/Payables from/to Portfolios/the Company are due to unsettled contract transactions (net of asset-based charges) and/or subsequent/preceding purchases/sales of the respective Portfolios’ shares. The amounts are due from/to either the respective Portfolio and/or the Company for the benefit of contract owners. There are no unsettled policy transactions at December 31, 2014.

3. Federal Income Taxes

The Account does not file separate tax returns. The taxable income of the Account is consolidated with that of the Company within the consolidated federal tax return. Any tax contingencies arising from the taxable income generated by the Account is the responsibility of the Company and the Company holds any and all tax contingencies on its financial statements. The Company’s consolidated federal tax return for the prior fiscal years remain open subject to examination by the internal revenue service. The Account is not a party to the consolidated tax sharing agreement thus no amount of income taxes or tax contingencies are passed through to the Account. The legal form of the Account is not taxable in any state or foreign jurisdictions.

The income taxes topic of the FASB Accounting Standard Codification establishes a minimum threshold for financial statement recognition of the benefit of positions taken, or expected to be taken, in filing tax returns (including whether the Account is taxable in certain jurisdictions). The topic requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet the more-likely-than-not threshold would be recorded as tax expense or benefit.

The Account complies with the provisions of FASB ASC Topic 740, Income Taxes. As of December 31, 2014, the Account did not have a liability for any uncertain tax positions. The Account recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statements of Operations and Changes in Contract Owners’ Equity.

82

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

4. Transactions with Affiliates

The Company has an administrative services agreement with Manulife Financial, whereby Manulife Financial or its designee, with the consent of the Company, performs certain services on behalf of the Company necessary for the operation of the Account. John Hancock Investment Management Services, LLC (“JHIMS”), a Delaware limited liability company controlled by MFC, serves as investment adviser for the Trust.

John Hancock Distributors LLC, a registered broker-dealer and wholly owned subsidiary of JHUSA, acts as the principle underwriter of the Contracts pursuant to a distribution agreement with the Company. Contracts are sold by registered representatives of either John Hancock Distributors LLC or other broker-dealers having distribution agreements with John Hancock Distributors LLC.

Certain officers of the Account are officers and directors of JHUSA or the Trust.

Contract charges, as described in Note 9, are paid to the Company.

83

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

5. Fair Value Measurements

Accounting Standards Codification 820 (“ASC 820”) “Fair Value Measurements and Disclosures” provides a single definition of fair value for accounting purposes, establishes a consistent framework for measuring fair value, and expands disclosure requirements about fair value measurements. ASC 820 defines fair value as the value that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit value. An exit value is not a forced liquidation or distressed sale.

Following ASC 820 guidance, the Account has categorized its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Account’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:

• Level 1 – Fair value measurements that reflect unadjusted, quoted prices in active markets for identical assets and liabilities that the Account has the ability to access at the measurement date.

• Level 2 – Fair value measurements using inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

• Level 3 – Fair value measurements using significant non market observable inputs.

All of the Account’s sub-accounts’ investments in a Portfolio of the Trust were valued at the reported net asset value of the Portfolio and categorized as Level 1 as of December 31, 2014. The following table presents the Account’s assets that are measured at fair value on a recurring basis by fair value hierarchy level under ASC 820, as of December 31, 2014:

	Mutual Funds
Level 1	$	42,169,608,982
Level 2		—
Level 3		—
	$	42,169,608,982

Assets owned by the Account are primarily open-ended mutual fund investments issued by the Trust. These are classified within Level 1, as fair values of the underlying funds are based upon reported net asset values (“NAV”), which represent the values at which each sub-account can redeem its investments.

Changes in valuation techniques may result in transfer in or out of an assigned level within the disclosure hierarchy. Transfers between investment levels may occur as the availability of a price source or data used in an investment’s valuation changes. Transfers between investment levels are recognized at the beginning of the reporting period. There have been no transfers between any level of fair value measurements during the period ended December 31, 2014.

84

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

6. Purchases and Sales of Investments

The cost of purchases including reinvestment of dividend distributions and proceeds from the sales of investments in the Portfolios of the Trust and Non-affiliated Trusts during 2014 were as follows:

	Purchases		Sales
Sub-Account
500 Index Fund B Series I	$	8,502,913	$	14,926,920
500 Index Fund B Series II		8,126,977		9,273,208
500 Index Fund B Series NAV		9,338,797		47,144,491
Active Bond Trust Series I		5,562,853		8,113,478
Active Bond Trust Series II		14,438,198		53,899,468
All Cap Core Trust Series I		831,536		7,652,328
All Cap Core Trust Series II		869,523		3,022,122
American Asset Allocation Trust Series I		6,769,751		23,485,305
American Asset Allocation Trust Series II		23,696,337		167,997,883
American Asset Allocation Trust Series III		4,120,107		27,320,028
American Global Growth Trust Series II		7,720,688		37,414,908
American Global Growth Trust Series III		1,794,220		6,344,255
American Growth Trust Series II		14,850,716		165,341,774
American Growth Trust Series III		2,631,464		20,499,520
American Growth-Income Trust Series I		5,363,454		28,148,524
American Growth-Income Trust Series II		7,962,325		155,333,478
American Growth-Income Trust Series III		3,911,108		52,283,794
American International Trust Series II		29,575,583		91,686,871
American International Trust Series III		4,025,542		7,514,877
American New World Trust Series II		11,683,861		17,007,278
American New World Trust Series III		172,705		269,387
Basic Value Focus (a)		909,258		1,083,882
Blue Chip Growth Trust Series I		17,633,196		52,220,607
Blue Chip Growth Trust Series II		17,865,591		38,724,041
Bond PS Series II (b)		4,457,660		4,687,949
Bond Trust Series I		10,802,243		39,219,747
Bond Trust Series II		25,552,656		103,597,720
Capital Appreciation Trust Series I		22,236,551		28,825,183
Capital Appreciation Trust Series II		14,841,475		17,882,573
Capital Appreciation Value Trust Series II		46,756,906		42,679,023
Core Bond Trust Series II		3,977,410		4,963,945
Core Strategy Trust Series I		9,409,481		20,536,551
Core Strategy Trust Series II		165,644,469		412,489,258
Core Strategy Trust Series NAV		230,690		3,171,881
DWS Equity 500 Index (a)		1,733,988		3,435,428
Equity-Income Trust Series I		30,021,713		44,709,550
Equity-Income Trust Series II		23,183,774		37,888,377
Financial Industries Trust Series I		920,058		2,770,933
Financial Industries Trust Series II		2,147,573		7,181,890
Franklin Templeton Founding Allocation Trust Series I		1,687,429		8,672,929
Franklin Templeton Founding Allocation Trust Series II		37,496,296		165,427,270
Fundamental All Cap Core Trust Series II		2,514,266		15,707,512
Fundamental Large Cap Value Trust Series I		266,905,381		12,624,338
Fundamental Large Cap Value Trust Series II		217,621,375		23,217,030
Fundamental Value Trust Series I (c)		65,101,312		307,002,016
Fundamental Value Trust Series II (c)		52,226,566		252,023,620
Global Allocation (a)		89,314		110,109
Global Bond Trust Series I		2,108,696		10,115,465
Global Bond Trust Series II		5,188,756		29,017,511

85

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

6. Purchases and Sales of Investments — (continued):

	Purchases		Sales
Sub-Account — (continued)
Global Trust Series I	$	30,214,160	$	26,244,023
Global Trust Series II		35,664,294		9,255,899
Health Sciences Trust Series I		19,148,543		18,271,957
Health Sciences Trust Series II		29,354,751		30,495,565
High Yield Trust Series I		23,799,925		33,306,564
High Yield Trust Series II		23,644,420		43,601,794
International Core Trust Series I		3,026,718		4,982,012
International Core Trust Series II		3,781,008		7,207,997
International Equity Index Trust B Series I		1,839,410		3,569,746
International Equity Index Trust B Series II		3,842,855		7,130,383
International Equity Index Trust B Series NAV		969,418		4,085,236
International Growth Stock Trust Series II		3,900,451		5,398,120
International Small Company Trust Series I		2,361,566		6,324,830
International Small Company Trust Series II		2,839,839		7,150,995
International Value Trust Series I		5,268,861		16,235,693
International Value Trust Series II		6,386,824		19,043,290
Investment Quality Bond Trust Series I		12,201,185		32,271,578
Investment Quality Bond Trust Series II		9,257,724		19,570,214
Lifestyle Aggressive MVP Series I		6,111,411		14,992,592
Lifestyle Aggressive MVP Series II		8,044,748		38,862,387
Lifestyle Aggressive Trust PS Series I		1,831,801		1,166,173
Lifestyle Aggressive Trust PS Series II		4,562,282		751,685
Lifestyle Balanced MVP Series I		29,378,022		120,244,355
Lifestyle Balanced MVP Series II		235,926,820		1,645,095,590
Lifestyle Balanced MVP Series NAV		7,110		1,076
Lifestyle Balanced Trust PS Series I		11,696,592		1,087,495
Lifestyle Balanced Trust PS Series II		321,601,533		56,249,997
Lifestyle Conservative MVP Series I		25,419,099		44,275,404
Lifestyle Conservative MVP Series II		259,154,157		524,995,747
Lifestyle Conservative Trust PS Series I		6,748,675		2,757,841
Lifestyle Conservative Trust PS Series II		78,394,083		33,939,348
Lifestyle Growth MVP Series I		41,163,261		124,828,158
Lifestyle Growth MVP Series II		422,039,968		2,564,006,761
Lifestyle Growth MVP Series NAV		19,757		8,284
Lifestyle Growth Trust PS Series I		21,892,911		3,247,999
Lifestyle Growth Trust PS Series II		1,072,002,253		94,407,946
Lifestyle Moderate MVP Series I		29,934,666		51,258,705
Lifestyle Moderate MVP Series II		279,236,176		558,852,912
Lifestyle Moderate Trust PS Series I		3,918,060		462,109
Lifestyle Moderate Trust PS Series II		98,451,943		24,518,243
Mid Cap Index Trust Series I		3,827,527		8,063,906
Mid Cap Index Trust Series II		6,767,191		17,277,573
Mid Cap Stock Trust Series I		32,635,369		33,844,779
Mid Cap Stock Trust Series II		23,148,926		31,951,572
Mid Value Trust Series I		7,960,910		13,809,413
Mid Value Trust Series II		8,964,046		18,311,151
Money Market Trust B Series NAV		1,088,499		4,733,076
Money Market Trust Series I		1,794,312		25,230,048
Money Market Trust Series II		1,305,492		113,068,319
Mutual Shares Trust Series I		13,057,482		36,980,847
Natural Resources Trust Series II (d)		7,773,446		73,344,030
PIMCO All Asset (a)		3,300,552		9,385,296

86

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

6. Purchases and Sales of Investments — (continued):

	Purchases		Sales
Sub-Account — (continued)
Real Estate Securities Trust Series I	$	7,584,529	$	9,394,318
Real Estate Securities Trust Series II		13,128,305		19,118,900
Real Return Bond Trust Series II		4,804,000		12,730,403
Science & Technology Trust Series I		7,484,996		19,862,262
Science & Technology Trust Series II		9,018,494		13,838,768
Short Term Government Income Trust Series I		10,835,558		19,352,489
Short Term Government Income Trust Series II		13,179,138		21,633,070
Small Cap Growth Trust Series I		201,738		103,781
Small Cap Growth Trust Series II		12,717,089		20,054,774
Small Cap Index Trust Series I		2,018,119		3,303,122
Small Cap Index Trust Series II		5,172,255		13,276,690
Small Cap Opportunities Trust Series I		1,474,830		14,465,595
Small Cap Opportunities Trust Series II		3,994,126		14,850,589
Small Cap Value Trust Series I		131,277		65,817
Small Cap Value Trust Series II		12,599,505		15,983,645
Small Company Value Trust Series I		2,671,055		12,699,343
Small Company Value Trust Series II		2,534,048		13,308,330
Strategic Income Opportunities Trust Series I		4,753,697		9,484,220
Strategic Income Opportunities Trust Series II		6,828,401		15,109,699
Total Bond Market Trust B Series II		39,308,039		53,548,140
Total Bond Market Trust B Series NAV		9,549,727		21,833,023
Total Return Trust Series I		14,235,591		30,315,353
Total Return Trust Series II		10,619,903		47,982,127
Total Stock Market Index Trust Series I		3,271,052		2,039,715
Total Stock Market Index Trust Series II		5,067,935		9,311,033
U.S. Equity Trust Series I		2,287,454		17,879,111
U.S. Equity Trust Series II		531,871		1,987,966
Ultra Short Term Bond Trust Series I		28,365,109		29,262,585
Ultra Short Term Bond Trust Series II		382,861,372		365,419,062
Utilities Trust Series I		5,535,237		6,294,970
Utilities Trust Series II		4,582,752		7,004,884
Value Opportunities (a)		268,822		833,953
Value Trust Series I		11,188,876		21,978,031
Value Trust Series II		5,142,613		8,424,192

(a) Sub-account that invests in non-affiliated Trust.

(b) Terminated as an investment option and funds transferred to Bond Trust on November 10, 2014.

(c) Terminated as an investment option and funds transferred to Fundamental Large Cap Value Trust on November 10, 2014.

(d) Terminated as an investment option and funds transferred to Global Trust on November 10, 2014.

87

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

7. Unit Values

A summary of unit values and units outstanding for variable annuity contracts and the expense and income ratios, excluding expenses of the underlying Portfolios, were as follows:

			At December 31,								For the years and periods ended December 31,
Sub-account	Year		Units (000s)		Unit Fair Value Highest to Lowest (a)			Assets (000s)			Expense Ratio Highest to Lowest (b)			Investment Income Ratio (c)			Total Return Highest to Lowest (d)
500 Index Fund B Series I		2014		2,793		$	18.76 to $18.18		$	51,298		1.90% to 0.45	%		1.48	%		12.82% to 11.20	%
		2013		3,220			16.63 to 16.35			52,973		1.90 to 0.45			1.81			31.43 to 29.54
		2012		3,285			12.65 to 12.62			41,546		1.90 to 0.45			3.62			1.22 to 0.98
500 Index Fund B Series II		2014		2,469			18.69 to 18.05			44,963		2.05 to 0.45			1.37			12.65 to 10.86
		2013		2,575			16.59 to 16.28			42,129		2.05 to 0.45			1.53			31.10 to 29.02
		2012		3,010			12.65 to 12.62			38,016		2.05 to 0.45			2.63			1.22 to 0.96
500 Index Fund B Series NAV		2014		12,772			18.64 to 17.01			235,562		2.05 to 0.80			1.55			12.52 to 11.13
		2013		15,238			16.57 to 15.31			250,125		2.05 to 0.80			1.77			29.35 to 25.36
		2012		17,844			12.65 to 11.83			223,963		2.05 to 0.80			2.09			13.44 to 1.20
		2011		4,147			10.75 to 10.43			44,281		2.05 to 1.40			1.71			0.45 to -0.20
		2010		4,740			10.71 to 10.45			50,459		2.05 to 1.40			1.71			13.26 to 12.53
Active Bond Trust Series I		2014		2,024			20.87 to 18.14			38,345		1.90 to 0.45			3.66			6.33 to 4.80
		2013		2,205			19.63 to 17.31			39,729		1.90 to 0.45			5.46			-0.21 to -1.64
		2012		2,611			19.67 to 17.59			47,609		1.90 to 0.45			3.93			9.21 to 7.63
		2011		3,128			18.01 to 16.35			52,724		1.90 to 0.45			5.04			5.33 to 3.82
		2010		3,775			17.10 to 15.75			61,016		1.90 to 0.45			7.10			13.34 to 11.71
Active Bond Trust Series II		2014		10,252			20.48 to 17.54			187,365		2.05 to 0.45			3.31			6.11 to 4.43
		2013		12,635			19.30 to 16.80			220,187		2.05 to 0.45			5.40			-0.40 to -1.98
		2012		13,607			19.38 to 17.14			240,885		2.05 to 0.45			3.76			8.98 to 7.25
		2011		15,698			17.78 to 15.98			258,088		2.05 to 0.45			4.62			5.22 to 3.56
		2010		19,948			16.90 to 15.43			315,368		2.05 to 0.45			6.91			13.20 to 11.40
All Cap Core Trust Series I		2014		1,689			21.99 to 20.30			43,007		1.90 to 0.45			0.93			9.15 to 7.58
		2013		1,966			20.14 to 18.87			46,248		1.90 to 0.45			1.23			33.72 to 31.80
		2012		2,321			15.06 to 14.32			40,948		1.90 to 0.45			1.10			16.04 to 14.36
		2011		2,644			12.98 to 12.52			40,581		1.90 to 0.45			0.96			-0.04 to -1.48
		2010		3,183			12.99 to 12.70			49,057		1.90 to 0.45			1.02			12.53 to 10.91
All Cap Core Trust Series II		2014		223			29.14 to 26.85			5,517		2.05 to 0.45			0.73			8.97 to 7.24
		2013		311			26.74 to 25.04			7,210		2.05 to 0.45			1.00			33.44 to 31.33
		2012		390			20.04 to 19.06			6,861		2.05 to 0.45			0.91			15.85 to 14.00
		2011		434			17.30 to 16.72			6,662		2.05 to 0.45			0.79			-0.31 to -1.89
		2010		501			17.35 to 17.04			7,783		2.05 to 0.45			0.79			12.31 to 10.53
American Asset Allocation Trust Series I		2014		7,721			17.93 to 16.04			128,606		1.90 to 0.45			1.44			4.57 to 3.07
		2013		8,752			17.15 to 15.57			140,673		1.90 to 0.45			1.04			22.74 to 20.98
		2012		9,905			13.97 to 12.87			130,969		1.90 to 0.45			1.49			15.24 to 13.57
		2011		11,512			12.12 to 11.33			133,210		1.90 to 0.45			1.39			0.46 to -0.98
		2010		13,637			12.07 to 11.44			158,613		1.90 to 0.45			1.53			11.55 to 9.95
American Asset Allocation Trust Series II		2014		74,549			17.78 to 15.72			1,220,137		2.05 to 0.45			1.31			4.42 to 2.76
		2013		83,070			17.03 to 15.30			1,320,706		2.05 to 0.45			0.91			22.58 to 20.63
		2012		91,998			13.89 to 12.68			1,205,239		2.05 to 0.45			1.39			14.97 to 13.14
		2011		102,406			12.08 to 11.21			1,178,706		2.05 to 0.45			1.29			0.40 to -1.19
		2010		113,271			12.03 to 11.35			1,311,937		2.05 to 0.45			1.44			11.40 to 9.63
American Asset Allocation Trust Series III		2014		8,313			18.83 to 17.89			155,631		1.55 to 0.80			1.73			4.56 to 3.78
		2013		9,650			18.01 to 17.23			172,982		1.55 to 0.80			1.38			21.89 to 18.85
		2012		10,675			14.67 to 14.14			155,962		1.55 to 0.80			1.89			15.23 to 14.36
		2011		11,486			12.73 to 12.36			145,763		1.55 to 0.80			1.82			0.47 to -0.28
		2010		12,112			12.67 to 12.40			153,108		1.55 to 0.80			1.96			11.64 to 10.81
American Global Growth Trust Series II		2014		11,451			17.98 to 15.90			187,957		2.05 to 0.45			0.63			1.36 to -0.25
		2013		13,049			17.73 to 15.94			215,498		2.05 to 0.45			0.78			27.85 to 25.82
		2012		11,741			13.87 to 12.67			153,231		2.05 to 0.45			0.33			21.45 to 19.51
		2011		13,481			11.42 to 10.60			146,410		2.05 to 0.45			0.73			-9.81 to -11.24
		2010		15,211			12.66 to 11.94			185,112		2.05 to 0.45			0.92			10.68 to 8.92
American Global Growth Trust Series III		2014		1,928			18.67 to 17.73			35,706		1.55 to 0.80			1.09			1.50 to 0.74
		2013		2,179			18.40 to 17.60			39,832		1.55 to 0.80			1.59			27.13 to 25.28
		2012		280			14.36 to 13.84			3,989		1.55 to 0.80			0.80			21.51 to 20.59
		2011		293			11.82 to 11.48			3,433		1.55 to 0.80			1.35			-9.64 to -10.32
		2010		254			13.08 to 12.80			3,306		1.55 to 0.80			1.59			10.91 to 10.08
American Growth Trust Series II		2014		26,775			33.00 to 27.38			700,997		2.05 to 0.45			0.64			7.48 to 5.77
		2013		32,226			30.71 to 25.89			799,945		2.05 to 0.45			0.37			28.90 to 26.85
		2012		40,001			23.82 to 20.41			785,486		2.05 to 0.45			0.25			16.70 to 14.84
		2011		47,556			20.41 to 17.77			813,415		2.05 to 0.45			0.08			-5.22 to -6.72
		2010		54,531			21.54 to 19.05			1,000,428		2.05 to 0.45			0.19			17.61 to 15.74
American Growth Trust Series III		2014		5,690			18.76 to 17.82			105,950		1.55 to 0.80			1.10			7.61 to 6.81
		2013		6,694			17.43 to 16.68			116,006		1.55 to 0.80			0.84			28.07 to 25.57
		2012		7,849			13.51 to 13.02			105,547		1.55 to 0.80			0.74			16.94 to 16.06
		2011		8,503			11.55 to 11.22			97,874		1.55 to 0.80			0.64			-5.06 to -5.76
		2010		7,318			12.17 to 11.91			88,815		1.55 to 0.80			0.77			17.74 to 16.86
American Growth-Income Trust Series I		2014		5,064			30.82 to 26.02			138,554		1.90 to 0.45			0.86			9.76 to 8.18

88

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

7. Unit Values — (continued):

				At December 31,								For the years and periods ended December 31,
Sub-account	Year			Units (000s)		Unit Fair Value Highest to Lowest (a)			Assets (000s)			Expense Ratio Highest to Lowest (b)			Investment Income Ratio (c)			Total Return Highest to Lowest (d)
American Growth-Income Trust Series I		2013			5,907		$	28.08 to $24.05		$	148,730		1.90% to 0.45	%		0.96	%		32.42% to 30.51	%
		2012			6,896			21.20 to 18.43			132,453		1.90 to 0.45			1.34			16.63 to 14.94
		2011			7,269			18.18 to 16.03			120,909		1.90 to 0.45			1.07			-2.53 to -3.93
		2010			9,001			18.65 to 16.69			155,150		1.90 to 0.45			1.06			10.56 to 8.97
American Growth-Income Trust Series II		2014			25,595			30.56 to 25.35			631,381		2.05 to 0.45			0.70			9.62 to 7.88
		2013			31,322			27.87 to 23.50			718,673		2.05 to 0.45			0.79			32.24 to 30.14
		2012			39,801			21.08 to 18.06			703,311		2.05 to 0.45			1.13			16.42 to 14.56
		2011			43,877			18.11 to 15.76			673,246		2.05 to 0.45			1.00			-2.68 to -4.23
		2010			50,328			18.60 to 16.46			804,949		2.05 to 0.45			0.96			10.34 to 8.59
American Growth-Income Trust Series III		2014			12,768			19.80 to 18.80			250,887		1.55 to 0.80			1.16			9.75 to 8.93
		2013			15,357			18.04 to 17.26			275,374		1.55 to 0.80			1.26			31.45 to 27.90
		2012			18,879			13.62 to 13.13			255,913		1.55 to 0.80			3.75			16.57 to 15.69
		2011			6,505			11.68 to 11.35			75,720		1.55 to 0.80			1.56			-2.53 to -3.26
		2010			6,613			11.99 to 11.73			79,060		1.55 to 0.80			1.52			10.55 to 9.72
American International Trust Series II		2014			16,756			32.96 to 27.35			413,221		2.05 to 0.45			0.81			-3.58 to -5.11
		2013			18,938			34.18 to 28.82			492,157		2.05 to 0.45			0.77			20.44 to 18.53
		2012			22,634			28.38 to 24.31			497,660		2.05 to 0.45			0.90			16.73 to 14.87
		2011			26,582			24.31 to 21.17			510,240		2.05 to 0.45			1.22			-14.76 to -16.11
		2010			28,123			28.52 to 25.23			646,557		2.05 to 0.45			1.44			6.20 to 4.52
American International Trust Series III		2014			3,497			14.23 to 13.51			49,357		1.55 to 0.80			1.30			-3.44 to -4.16
		2013			3,743			14.73 to 14.10			54,799		1.55 to 0.80			1.27			19.71 to 18.61
		2012			4,154			12.21 to 11.77			50,475		1.55 to 0.80			1.44			17.00 to 16.12
		2011			4,312			10.44 to 10.14			44,827		1.55 to 0.80			2.19			-14.73 to -15.37
		2010			2,699			12.24 to 11.98			32,941		1.55 to 0.80			2.87			6.40 to 5.60
American New World Trust Series II		2014			3,510			14.81 to 13.10			47,465		2.05 to 0.45			0.61			-8.78 to -10.23
		2013			3,887			16.23 to 14.59			58,758		2.05 to 0.45			0.76			10.24 to 8.49
		2012			4,498			14.72 to 13.44			62,292		2.05 to 0.45			0.44			16.59 to 14.73
		2011			5,024			12.63 to 11.72			60,330		2.05 to 0.45			1.04			-14.79 to -16.14
		2010			6,201			14.82 to 13.97			88,319		2.05 to 0.45			1.14			16.66 to 14.81
American New World Trust Series III		2014			134			13.66 to 12.97			1,800		1.55 to 0.80			1.15			-8.68 to -9.37
		2013			144			14.96 to 14.31			2,122		1.55 to 0.80			1.10			10.47 to 9.65
		2012			190			13.54 to 13.05			2,546		1.55 to 0.80			0.85			16.77 to 15.89
		2011			228			11.60 to 11.26			2,628		1.55 to 0.80			1.75			-14.71 to -15.34
		2010			198			13.60 to 13.30			2,681		1.55 to 0.80			1.83			16.90 to 16.03
Basic Value Focus (e)		2014			164			46.35 to 23.29			6,235		1.90 to 1.40			1.21			8.23 to 7.69
		2013			190			42.83 to 21.63			6,716		1.90 to 1.40			1.19			35.94 to 35.26
		2012			235			31.51 to 15.99			6,058		1.90 to 1.40			1.51			12.30 to 11.73
		2011			281			28.06 to 14.31			6,462		1.90 to 1.40			1.41			-3.99 to -4.47
		2010			382			29.22 to 14.98			8,946		1.90 to 1.40			1.39			11.11 to 10.55
Blue Chip Growth Trust Series I		2014			6,547			31.77 to 23.27			241,041		1.90 to 0.45			0.00			8.58 to 7.02
		2013			7,738			29.26 to 21.75			264,250		1.90 to 0.45			0.27			40.69 to 38.67
		2012			8,904			20.80 to 15.68			217,180		1.90 to 0.45			0.09			17.78 to 16.08
		2011			10,365			17.66 to 13.51			215,783		1.90 to 0.45			0.01			0.99 to -0.47
		2010			12,612			17.49 to 13.57			259,341		1.90 to 0.45			0.08			15.63 to 13.97
Blue Chip Growth Trust Series II		2014			4,482			30.88 to 28.81			115,624		2.05 to 0.45			0.00			8.39 to 6.67
		2013			5,432			28.49 to 27.01			131,638		2.05 to 0.45			0.11			40.40 to 38.17
		2012			6,083			20.29 to 19.55			106,689		2.05 to 0.45			0.00			17.56 to 15.68
		2011			7,061			17.26 to 16.90			106,722		2.05 to 0.45			0.00			0.79 to -0.81
		2010			7,826			17.13 to 17.04			118,731		2.05 to 0.45			0.05			15.42 to 13.59
Bond PS Series II		2014	(n)		0			13.33 to 12.96			0		2.00 to 0.80			7.15			3.87 to 2.81
		2013			19			12.84 to 12.61			245		2.00 to 0.80			2.78			-2.50 to -3.67
		2012			22			13.17 to 13.09			284		2.00 to 0.80			1.23			4.82 to 3.56
		2011			176			12.64 to 12.56			2,232		2.00 to 0.80			2.49			1.11 to 0.50
Bond Trust Series I		2014			16,632			13.59 to 13.27			225,311		1.55 to 0.80			2.53			4.69 to 3.91
		2013			19,048			12.98 to 12.77			246,784		1.55 to 0.80			2.92			-2.24 to -2.88
		2012			18,222			13.27 to 13.15			241,510		1.55 to 0.80			2.77			5.48 to 4.69
		2011			18,061			12.58 to 12.56			227,156		1.55 to 0.80			14.59			0.64 to 0.51
Bond Trust Series II		2014			37,161			13.66 to 12.98			484,137		2.05 to 0.45			2.34			4.93 to 3.26
		2013			43,168			13.02 to 12.57			546,691		2.05 to 0.45			2.69			-2.07 to -3.63
		2012			42,148			13.29 to 13.05			553,118		2.05 to 0.45			2.52			5.64 to 3.96
		2011			44,532			12.58 to 12.55			559,347		2.05 to 0.45			13.46			0.67 to 0.40
Capital Appreciation Trust Series I		2014			8,922			20.67 to 18.74			146,789		1.90 to 0.45			0.05			9.16 to 7.59
		2013			10,222			19.21 to 17.17			155,768		1.90 to 0.45			0.24			36.79 to 34.83
		2012			12,110			14.25 to 12.55			136,224		1.90 to 0.45			0.15			15.46 to 13.79
		2011			14,255			12.53 to 10.87			140,336		1.90 to 0.45			0.07			-0.37 to -1.80
		2010			17,221			12.76 to 10.91			171,777		1.90 to 0.45			0.15			11.33 to 9.73
Capital Appreciation Trust Series II		2014			2,665			28.83 to 28.69			64,337		2.05 to 0.45			0.00			8.98 to 7.25
		2013			3,045			26.88 to 26.32			68,555		2.05 to 0.45			0.21			36.48 to 34.32
		2012			3,741			20.01 to 19.29			62,559		2.05 to 0.45			0.06			15.32 to 13.48
		2011			4,312			17.63 to 16.72			63,258		2.05 to 0.45			0.03			-0.62 to -2.19
		2010			4,936			18.03 to 16.83			73,641		2.05 to 0.45			0.02			11.08 to 9.31

89

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

7. Unit Values — (continued):

				At December 31,								For the years and periods ended December 31,
Sub-account	Year			Units (000s)		Unit Fair Value Highest to Lowest (a)			Assets (000s)			Expense Ratio Highest to Lowest (b)			Investment Income Ratio (c)			Total Return Highest to Lowest (d)
Capital Appreciation Value Trust Series II		2014			15,683		$	21.06 to $18.97		$	308,166		2.05% to 0.45	%		1.19	%		11.54% to 9.77	%
		2013			17,243			18.88 to 17.28			307,584		2.05 to 0.45			1.03			21.39 to 19.46
		2012			19,198			15.56 to 14.47			285,352		2.05 to 0.45			1.24			13.98 to 12.16
		2011			21,275			13.65 to 12.90			280,113		2.05 to 0.45			1.15			2.41 to 0.79
		2010			24,073			13.33 to 12.80			312,548		2.05 to 0.45			1.26			13.12 to 11.33
Core Bond Trust Series II		2014			400			18.99 to 16.27			6,846		2.05 to 0.45			2.58			5.26 to 3.59
		2013			465			18.05 to 15.71			7,605		2.05 to 0.45			1.67			-2.79 to -4.34
		2012			638			18.56 to 16.42			10,874		2.05 to 0.45			2.42			5.79 to 4.10
		2011			766			17.55 to 15.77			12,492		2.05 to 0.45			3.17			7.55 to 5.85
		2010			833			16.32 to 14.90			12,760		2.05 to 0.45			2.48			6.44 to 4.75
Core Strategy Trust Series I		2014			9,263			14.40 to 14.22			133,129		1.55 to 0.80			2.32			5.26 to 4.48
		2013	(m)		10,218			13.68 to 13.61			139,653		1.55 to 0.80			8.51			9.41 to 8.86
Core Strategy Trust Series II		2014			190,433			18.44 to 14.47			3,409,588		2.10 to 0.35			2.20			5.54 to 3.71
		2013			205,775			17.78 to 13.71			3,544,521		2.10 to 0.35			1.49			16.56 to 9.66
		2012			42,857			15.93 to 15.25			632,257		2.10 to 0.45			2.51			11.77 to 9.93
		2011			44,896			14.25 to 13.88			598,758		2.10 to 0.45			1.96			-0.44 to -2.07
		2010			46,040			14.32 to 14.17			623,298		2.10 to 0.45			2.16			13.36 to 11.67
Core Strategy Trust Series NAV		2014			423			21.61 to 15.74			8,160		1.60 to 1.20			2.11			4.88 to 4.46
		2013			577			20.60 to 15.07			10,740		1.60 to 1.20			0.68			17.86 to 17.39
		2012			601			17.48 to 12.83			9,322		1.60 to 1.20			2.90			11.23 to 2.67
		2011			408			15.72 to 15.72			6,412		1.20 to 1.20			2.20			-1.01 to -1.01
		2010			442			15.88 to 15.88			7,020		1.20 to 1.20			2.32			14.16 to 11.22
DWS Equity 500 Index (e)		2014			472			32.71 to 25.73			14,976		2.05 to 1.40			1.52			11.43 to 10.71
		2013			548			29.35 to 23.24			15,603		2.05 to 1.40			1.44			29.61 to 28.77
		2012			637			22.65 to 18.05			14,069		2.05 to 1.40			1.35			13.65 to 12.91
		2011			710			19.93 to 15.98			13,837		2.05 to 1.40			1.31			0.02 to -0.63
		2010			817			19.93 to 16.09			15,950		2.05 to 1.40			1.55			12.70 to 11.97
Equity-Income Trust Series I		2014			5,549			32.83 to 22.84			234,874		1.90 to 0.45			1.77			6.99 to 5.45
		2013			6,433			30.69 to 21.66			257,077		1.90 to 0.45			1.86			29.46 to 27.60
		2012			7,402			23.71 to 16.98			229,408		1.90 to 0.45			2.01			16.83 to 15.14
		2011			8,654			20.29 to 14.74			230,737		1.90 to 0.45			1.72			-1.25 to -2.67
		2010			9,698			20.55 to 15.15			263,326		1.90 to 0.45			1.83			14.60 to 12.95
Equity-Income Trust Series II		2014			6,397			26.98 to 25.87			146,804		2.05 to 0.45			1.56			6.75 to 5.06
		2013			7,614			25.28 to 24.63			166,191		2.05 to 0.45			1.69			29.16 to 27.11
		2012			8,601			19.57 to 19.37			147,658		2.05 to 0.45			1.82			16.65 to 14.79
		2011			10,066			16.88 to 16.78			149,902		2.05 to 0.45			1.60			-1.46 to -3.02
		2010			10,031			17.40 to 17.02			153,300		2.05 to 0.45			1.68			14.40 to 12.58
Financial Industries Trust Series I		2014	(l)		583			22.24 to 18.74			11,204		1.90 to 0.45			0.69			8.16 to 6.60
		2013			680			20.56 to 17.58			12,225		1.90 to 0.45			0.61			30.17 to 28.30
		2012			752			15.80 to 13.71			10,491		1.90 to 0.45			0.77			17.52 to 15.82
		2011			891			13.44 to 11.83			10,689		1.90 to 0.45			1.50			-9.92 to -11.21
		2010			1,177			14.92 to 13.33			15,858		1.90 to 0.45			0.30			11.75 to 10.14
Financial Industries Trust Series II		2014	(l)		933			23.61 to 22.60			18,786		2.05 to 0.45			0.50			7.93 to 6.22
		2013			1,195			21.87 to 21.27			22,429		2.05 to 0.45			0.44			29.90 to 27.84
		2012			1,292			16.84 to 16.64			18,856		2.05 to 0.45			0.58			17.29 to 15.42
		2011			1,537			14.42 to 14.36			19,380		2.05 to 0.45			1.33			-10.07 to - 11.49
		2010			1,906			16.29 to 15.96			27,065		2.05 to 0.45			0.13			11.50 to 9.73
Franklin Templeton Founding Allocation Trust Series I		2014			2,563			17.70 to 16.81			44,969		1.55 to 0.80			2.87			2.19 to 1.42
		2013			3,008			17.32 to 16.57			51,742		1.55 to 0.80			2.37			22.52 to 19.68
		2012			3,312			14.03 to 13.52			46,220		1.55 to 0.80			3.03			15.33 to 14.46
		2011			3,582			12.17 to 11.82			43,411		1.55 to 0.80			2.93			-2.19 to -2.92
		2010			3,738			12.44 to 12.17			46,366		1.55 to 0.80			3.90			9.78 to 8.96
Franklin Templeton Founding Allocation Trust Series II		2014			73,304			27.29 to 14.07			1,087,385		2.05 to 0.35			2.77			2.45 to 0.72
		2013			83,733			26.64 to 13.96			1,212,833		2.05 to 0.35			2.15			23.84 to 21.75
		2012			93,099			21.51 to 11.47			1,100,917		2.05 to 0.35			2.79			15.62 to 13.66
		2011			103,682			18.61 to 10.09			1,072,795		2.05 to 0.35			2.61			-2.05 to -3.70
		2010			116,260			18.99 to 10.48			1,242,478		2.05 to 0.35			3.52			10.05 to 8.20
Fundamental All Cap Core Trust Series II		2014			1,758			33.82 to 28.06			52,081		2.05 to 0.45			0.21			9.06 to 7.33
		2013			2,199			31.01 to 26.14			60,517		2.05 to 0.45			0.71			34.94 to 32.80
		2012			2,867			22.98 to 19.69			59,159		2.05 to 0.45			0.57			22.75 to 20.79
		2011			3,148			18.72 to 16.30			53,548		2.05 to 0.45			0.83			-2.73 to -4.27
		2010			3,600			19.24 to 17.02			63,655		2.05 to 0.45			0.92			18.68 to 16.80
Fundamental Large Cap Value Trust Series I		2014			11,918			26.54 to 22.73			281,433		1.90 to 0.45			2.37			10.12 to 8.53
		2013	(m)		1,198			24.10 to 20.95			24,838		1.90 to 0.45			0.00			2.78 to 2.68
Fundamental Large Cap Value Trust Series II		2014			10,925			26.48 to 22.32			234,103		2.05 to 0.45			1.36			9.91 to 8.16
		2013			1,686			24.09 to 20.64			36,342		2.05 to 0.45			0.89			31.51 to 29.43
		2012			862			18.32 to 15.95			14,355		2.05 to 0.45			1.07			23.67 to 21.70
		2011			791			14.81 to 13.10			10,772		2.05 to 0.45			0.77			1.18 to -0.43
		2010			851			14.64 to 13.16			11,584		2.05 to 0.45			1.70			12.60 to 10.81

90

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

7. Unit Values — (continued):

				At December 31,								For the years and periods ended December 31,
Sub-account	Year			Units (000s)		Unit Fair Value Highest to Lowest (a)			Assets (000s)			Expense Ratio Highest to Lowest (b)			Investment Income Ratio (c)			Total Return Highest to Lowest (d)
Fundamental Value Trust Series I		2014	(o)		0		$	24.54 to $21.00		$	0		1.90% to 0.45	%		1.83	%		6.59% to 5.28	%
		2013			14,209			23.02 to 19.95			287,534		1.90 to 0.45			1.25			32.92 to 31.01
		2012			16,631			17.32 to 15.23			255,769		1.90 to 0.45			0.88			12.87 to 11.24
		2011			19,834			15.34 to 13.69			272,913		1.90 to 0.45			0.76			-4.21 to -5.59
		2010			24,123			16.02 to 14.50			350,230		1.90 to 0.45			1.08			12.59 to 10.97
Fundamental Value Trust Series II		2014	(o)		0			26.11 to 24.60			0		2.05 to 0.45			1.59			6.40 to 4.96
		2013			11,329			24.54 to 23.43			235,907		2.05 to 0.45			1.05			32.60 to 30.50
		2012			14,454			18.50 to 17.96			229,708		2.05 to 0.45			0.71			12.67 to 10.87
		2011			16,833			16.42 to 16.20			240,692		2.05 to 0.45			0.60			-4.42 to -5.93
		2010			19,504			17.22 to 17.18			295,599		2.05 to 0.45			0.89			12.37 to 10.59
Global Allocation (e)		2014			40			31.47 to 18.85			766		1.90 to 1.40			2.01			0.55 to 0.05
		2013			44			31.45 to 18.74			848		1.90 to 1.40			1.07			12.96 to 12.40
		2012			45			27.98 to 16.59			763		1.90 to 1.40			1.38			8.60 to 8.06
		2011			52			25.90 to 15.28			816		1.90 to 1.40			1.83			-4.97 to -5.44
		2010			64			27.39 to 16.08			1,042		1.90 to 1.40			1.04			8.36 to 7.82
Global Bond Trust Series I		2014			1,394			26.09 to 22.37			40,723		1.90 to 0.45			0.88			1.82 to 0.36
		2013			1,667			25.62 to 22.29			47,955		1.90 to 0.45			0.43			-5.84 to -7.20
		2012			1,983			27.21 to 24.02			61,078		1.90 to 0.45			7.02			6.55 to 5.00
		2011			2,268			25.54 to 22.88			66,430		1.90 to 0.45			6.23			8.59 to 7.03
		2010			2,708			23.52 to 21.37			74,034		1.90 to 0.45			3.36			9.81 to 8.23
Global Bond Trust Series II		2014			5,231			25.13 to 17.11			101,854		2.05 to 0.45			0.73			1.67 to 0.06
		2013			6,165			24.72 to 17.10			123,634		2.05 to 0.45			0.24			-6.09 to -7.58
		2012			6,626			26.32 to 18.50			148,540		2.05 to 0.45			7.00			6.33 to 4.63
		2011			7,393			24.75 to 17.68			158,254		2.05 to 0.45			6.05			8.36 to 6.65
		2010			8,787			22.84 to 16.58			176,267		2.05 to 0.45			3.20			9.63 to 7.89
Global Trust Series I		2014			5,984			21.96 to 17.71			148,671		1.90 to 0.45			2.05			-3.04 to -4.43
		2013			5,915			22.64 to 18.53			150,907		1.90 to 0.45			1.47			30.50 to 28.62
		2012			6,898			17.35 to 14.41			134,571		1.90 to 0.45			2.11			21.20 to 19.44
		2011			7,965			14.32 to 12.06			129,704		1.90 to 0.45			1.98			-6.42 to -7.76
		2010			8,540			15.30 to 13.08			153,628		1.90 to 0.45			1.54			7.28 to 5.73
Global Trust Series II		2014			2,679			23.76 to 22.78			52,928		2.05 to 0.45			3.12			-3.24 to -4.78
		2013			1,309			24.55 to 23.92			28,237		2.05 to 0.45			1.28			30.25 to 28.18
		2012			1,516			18.85 to 18.66			25,430		2.05 to 0.45			1.90			20.96 to 19.03
		2011			1,747			15.68 to 15.59			24,513		2.05 to 0.45			1.77			-6.64 to -8.12
		2010			1,904			17.06 to 16.69			28,926		2.05 to 0.45			1.30			7.07 to 5.37
Health Sciences Trust Series I		2014			1,197			64.93 to 52.50			67,382		1.90 to 0.45			0.00			31.24 to 29.35
		2013			1,331			49.47 to 40.58			57,701		1.90 to 0.45			0.00			50.40 to 48.23
		2012			1,425			32.89 to 27.38			41,483		1.90 to 0.45			0.00			31.36 to 29.46
		2011			1,642			25.04 to 21.15			36,661		1.90 to 0.45			0.00			10.07 to 8.49
		2010			1,907			22.75 to 19.49			39,069		1.90 to 0.45			0.00			15.18 to 13.52
Health Sciences Trust Series II		2014			1,602			69.34 to 60.21			88,687		2.05 to 0.45			0.00			30.95 to 28.88
		2013			1,795			52.95 to 46.72			78,495		2.05 to 0.45			0.00			50.11 to 47.73
		2012			1,938			35.27 to 31.62			57,932		2.05 to 0.45			0.00			31.06 to 28.97
		2011			2,175			26.91 to 24.52			50,178		2.05 to 0.45			0.00			9.90 to 8.16
		2010			2,391			24.49 to 22.67			50,728		2.05 to 0.45			0.00			14.95 to 13.13
High Yield Trust Series I		2014			4,996			25.51 to 22.64			84,031		1.90 to 0.45			6.24			-0.34 to -1.77
		2013			5,682			25.60 to 23.05			98,605		1.90 to 0.45			7.77			8.04 to 6.48
		2012			2,307			23.69 to 21.64			52,828		1.90 to 0.45			7.28			18.46 to 16.74
		2011			2,754			20.00 to 18.54			53,477		1.90 to 0.45			8.36			0.45 to -1.00
		2010			3,166			19.91 to 18.73			61,747		1.90 to 0.45			36.88			13.27 to 11.64
High Yield Trust Series II		2014			3,759			28.37 to 22.37			81,512		2.05 to 0.45			5.67			-0.69 to -2.27
		2013			4,539			28.57 to 22.89			106,280		2.05 to 0.45			6.98			7.87 to 6.16
		2012			3,305			26.48 to 21.57			75,110		2.05 to 0.45			7.15			18.34 to 16.45
		2011			3,822			22.38 to 18.52			74,295		2.05 to 0.45			7.43			0.22 to -1.37
		2010			4,143			22.33 to 18.78			81,174		2.05 to 0.45			40.90			13.03 to 11.23
International Core Trust Series I		2014			1,371			18.27 to 16.71			23,157		1.90 to 0.45			3.42			-7.12 to -8.45
		2013			1,507			19.67 to 18.25			27,639		1.90 to 0.45			2.75			24.43 to 22.64
		2012			1,705			15.80 to 14.88			25,322		1.90 to 0.45			2.79			14.53 to 12.87
		2011			2,030			13.80 to 13.18			26,507		1.90 to 0.45			2.17			-9.98 to -11.28
		2010			2,397			15.33 to 14.86			35,236		1.90 to 0.45			1.83			9.09 to 7.52
International Core Trust Series II		2014			869			22.94 to 21.24			15,720		2.05 to 0.45			3.01			-7.33 to -8.80
		2013			1,069			25.15 to 22.92			20,858		2.05 to 0.45			2.56			24.22 to 22.25
		2012			1,164			20.58 to 18.45			18,648		2.05 to 0.45			2.50			14.31 to 12.48
		2011			1,466			18.29 to 16.14			20,647		2.05 to 0.45			1.98			-10.20 to -11.63
		2010			1,664			20.70 to 17.98			26,533		2.05 to 0.45			1.64			8.89 to 7.16
International Equity Index Trust B Series I		2014			1,294			14.34 to 13.90			18,203		1.90 to 0.45			2.94			-5.04 to -6.41
		2013			1,431			15.10 to 14.85			21,397		1.90 to 0.45			2.38			14.04 to 12.40
		2012			1,641			13.24 to 13.21			21,733		1.90 to 0.45			6.85			5.94 to 5.69
International Equity Index Trust B Series II		2014			1,298			14.28 to 13.79			18,095		2.05 to 0.45			2.66			-5.23 to -6.73
		2013			1,531			15.07 to 14.79			22,765		2.05 to 0.45			2.14			13.81 to 12.01
		2012			1,860			13.24 to 13.20			24,581		2.05 to 0.45			5.74			5.91 to 5.63

91

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

7. Unit Values — (continued):

				At December 31,								For the years and periods ended December 31,
Sub-account	Year			Units (000s)		Unit Fair Value Highest to Lowest (a)			Assets (000s)			Expense Ratio Highest to Lowest (b)			Investment Income Ratio (c)			Total Return Highest to Lowest (d)
International Equity Index Trust B Series NAV		2014			1,264		$	11.37 to $10.83		$	14,176		2.05% to 1.40	%		2.88	%		-5.90% to -6.51	%
		2013			1,535			12.08 to 11.58			18,356		2.05 to 1.40			2.36			12.95 to 12.21
		2012			1,808			10.69 to 10.32			19,183		2.05 to 1.40			1.22			16.12 to 15.36
		2011			2,029			9.21 to 8.95			18,586		2.05 to 1.40			3.35			-15.18 to -15.73
		2010			2,166			10.86 to 10.62			23,431		2.05 to 1.40			2.47			9.89 to 9.18
International Growth Stock Trust Series II		2014			1,250			15.31 to 14.79			18,761		2.05 to 0.45			1.58			-0.45 to -2.03
		2013			1,347			15.38 to 15.10			20,531		2.05 to 0.45			0.98			18.33 to 16.46
		2012			1,565			13.00 to 12.96			20,386		2.05 to 0.45			3.02			3.98 to 3.71
International Small Company Trust Series I		2014			1,633			17.30 to 16.06			26,890		1.90 to 0.45			1.33			-7.31 to -8.65
		2013			1,854			18.67 to 17.58			33,239		1.90 to 0.45			1.77			25.77 to 23.96
		2012			2,107			14.84 to 14.18			30,334		1.90 to 0.45			1.25			18.65 to 16.93
		2011			2,492			12.51 to 12.13			30,514		1.90 to 0.45			1.50			-16.60 to -17.80
		2010			3,157			15.00 to 14.76			46,829		1.90 to 0.45			2.62			22.15 to 20.40
International Small Company Trust Series II		2014			1,088			17.12 to 15.77			17,482		2.05 to 0.45			1.12			-7.51 to -8.98
		2013			1,320			18.51 to 17.33			23,314		2.05 to 0.45			1.61			25.45 to 23.46
		2012			1,456			14.75 to 14.03			20,750		2.05 to 0.45			1.09			18.46 to 16.57
		2011			1,755			12.46 to 12.04			21,347		2.05 to 0.45			1.35			-16.80 to -18.12
		2010			2,060			14.97 to 14.70			30,456		2.05 to 0.45			2.50			21.90 to 19.97
International Value Trust Series I		2014			3,690			23.06 to 20.46			70,198		1.90 to 0.45			2.69			-12.90 to -14.16
		2013			4,246			26.47 to 23.83			93,535		1.90 to 0.45			1.72			25.58 to 23.78
		2012			4,865			21.08 to 19.26			86,198		1.90 to 0.45			2.57			18.84 to 17.12
		2011			5,833			17.74 to 16.44			87,970		1.90 to 0.45			2.24			-13.24 to -14.49
		2010			6,982			20.45 to 19.23			123,081		1.90 to 0.45			1.90			7.50 to 5.95
International Value Trust Series II		2014			3,210			24.85 to 24.31			65,855		2.05 to 0.45			2.47			-13.04 to -14.42
		2013			3,778			29.04 to 27.95			90,010		2.05 to 0.45			1.52			25.33 to 23.34
		2012			4,463			23.54 to 22.30			86,302		2.05 to 0.45			2.36			18.54 to 16.64
		2011			5,397			20.19 to 18.82			89,100		2.05 to 0.45			2.08			-13.38 to -14.75
		2010			6,119			23.68 to 21.72			118,156		2.05 to 0.45			1.70			7.28 to 5.58
Investment Quality Bond Trust Series I		2014			8,695			28.10 to 19.47			165,086		1.90 to 0.45			2.88			5.00 to 3.49
		2013			9,980			26.76 to 18.81			181,114		1.90 to 0.45			3.80			-2.36 to -3.76
		2012			10,049			27.41 to 19.55			192,548		1.90 to 0.45			2.04			7.10 to 5.55
		2011			10,392			25.59 to 18.52			191,213		1.90 to 0.45			4.21			7.59 to 6.04
		2010			9,829			23.79 to 17.46			175,113		1.90 to 0.45			5.30			6.97 to 5.43
Investment Quality Bond Trust Series II		2014			4,822			22.50 to 16.73			87,725		2.05 to 0.45			2.72			4.79 to 3.13
		2013			5,354			21.47 to 16.22			95,946		2.05 to 0.45			3.47			-2.47 to -4.02
		2012			5,945			22.02 to 16.90			113,711		2.05 to 0.45			1.86			6.80 to 5.10
		2011			6,440			20.62 to 16.08			116,853		2.05 to 0.45			3.76			7.37 to 5.67
		2010			7,580			19.20 to 15.22			129,806		2.05 to 0.45			4.63			6.82 to 5.12
Lifestyle Aggressive MVP Series I		2014	(g)		3,743			22.79 to 20.43			82,915		1.90 to 0.45			2.66			0.94 to -0.51
		2013			4,195			22.58 to 20.54			92,832		1.90 to 0.45			2.50			26.15 to 24.33
		2012			4,257			17.90 to 16.52			74,920		1.90 to 0.45			1.27			16.09 to 14.41
		2011			5,510			15.42 to 14.44			84,681		1.90 to 0.45			1.65			-6.92 to -8.26
		2010			6,184			16.57 to 15.74			103,197		1.90 to 0.45			1.98			15.92 to 14.26
Lifestyle Aggressive MVP Series II		2014	(g)		5,900			26.12 to 25.77			127,277		2.05 to 0.45			2.39			0.84 to -0.76
		2013			7,321			25.97 to 25.91			159,377		2.05 to 0.45			2.16			25.87 to 23.87
		2012			8,463			20.96 to 20.58			148,442		2.05 to 0.45			1.12			15.91 to 14.06
		2011			10,061			18.38 to 17.76			154,321		2.05 to 0.45			1.51			-7.14 to -8.61
		2010			11,278			20.11 to 19.12			188,589		2.05 to 0.45			1.74			15.60 to 13.77
Lifestyle Aggressive Trust PS Series I		2014	(m)		56			13.33 to 13.23			740		1.90 to 1.15			2.10			4.21 to 3.43
Lifestyle Aggressive Trust PS Series II		2014			291			13.32 to 13.17			3,851		2.05 to 1.00			2.66			4.16 to 3.08
		2013	(m)		2			12.79 to 12.78			24		2.05 to 1.00			71.35			2.31 to 2.24
Lifestyle Balanced MVP Series I		2014	(h)		28,772			26.90 to 20.58			591,421		1.90 to 0.45			2.68			3.82 to 2.33
		2013			33,735			25.91 to 20.11			672,128		1.90 to 0.45			2.75			12.28 to 10.66
		2012			36,808			23.08 to 18.17			663,373		1.90 to 0.45			2.18			11.36 to 9.75
		2011			40,216			20.73 to 16.56			667,591		1.90 to 0.45			3.29			0.17 to -1.27
		2010			40,354			20.69 to 16.77			699,738		1.90 to 0.45			2.74			11.24 to 9.64
Lifestyle Balanced MVP Series II		2014	(h)		393,696			16.76 to 16.26			7,664,452		2.10 to 0.35			2.50			3.67 to 1.87
		2013			465,660			16.45 to 15.68			8,946,098		2.10 to 0.35			2.54			12.15 to 10.20
		2012			514,301			14.93 to 13.98			8,984,382		2.10 to 0.35			2.01			11.31 to 9.37
		2011			560,279			13.65 to 12.56			8,941,848		2.10 to 0.35			3.03			0.07 to -1.66
		2010			606,988			13.88 to 12.55			9,859,909		2.10 to 0.35			2.59			11.10 to 11.06
Lifestyle Balanced MVP Series NAV		2014	(h)		5			17.66 to 17.66			91		1.20 to 1.20			2.97			3.01 to 3.01
		2013			5			17.15 to 17.15			84		1.20 to 1.20			2.95			11.55 to 11.55
		2012			5			15.37 to 15.37			71		1.20 to 1.20			2.25			10.56 to 10.56
		2011			5			13.90 to 13.90			70		1.20 to 1.20			4.23			-0.53 to -0.53
Lifestyle Balanced Trust PS Series I		2014			815			13.29 to 13.13			10,783		1.90 to 0.80			3.78			5.11 to 3.96
		2013	(f)		11			12.64 to 12.63			142		1.90 to 0.80			47.40			1.14 to 1.06
Lifestyle Balanced Trust PS Series II		2014			32,132			13.33 to 13.09			476,032		2.05 to 0.35			2.77			5.37 to 3.60

92

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

7. Unit Values — (continued):

				At December 31,								For the years and periods ended December 31,
Sub-account	Year			Units (000s)		Unit Fair Value Highest to Lowest (a)			Assets (000s)			Expense Ratio Highest to Lowest (b)			Investment Income Ratio (c)			Total Return Highest to Lowest (d)
Lifestyle Balanced Trust PS Series II		2013			13,893		$	12.65 to $12.63		$	205,650		2.05% to 0.35	%		2.05	%		1.19% to 1.07	%
		2012			12,281			13.63 to 13.16			164,598		2.00 to 0.80			1.23			9.66 to 8.34
		2011			5,516			12.43 to 12.15			67,247		2.00 to 0.80			4.84			-0.56 to -2.82
Lifestyle Conservative MVP Series I		2014	(i)		7,240			28.26 to 19.57			150,458		1.90 to 0.45			2.61			4.54 to 3.04
		2013			8,615			27.03 to 18.99			174,331		1.90 to 0.45			3.04			3.41 to 1.92
		2012			11,375			26.14 to 18.64			225,765		1.90 to 0.45			2.88			8.03 to 6.46
		2011			11,273			24.20 to 17.51			213,263		1.90 to 0.45			4.13			3.76 to 2.27
		2010			11,548			23.32 to 17.12			220,274		1.90 to 0.45			2.68			8.63 to 7.07
Lifestyle Conservative MVP Series II		2014	(i)		81,392			16.51 to 14.83			1,507,982		2.10 to 0.35			2.41			4.47 to 2.66
		2013			100,413			15.80 to 14.45			1,825,240		2.10 to 0.35			2.85			3.33 to 1.54
		2012			133,398			15.29 to 14.23			2,391,723		2.10 to 0.35			2.70			7.89 to 6.00
		2011			136,961			14.17 to 13.42			2,309,441		2.10 to 0.35			4.07			3.68 to 1.89
		2010			141,829			13.67 to 13.17			2,342,621		2.10 to 0.35			2.52			8.49 to 5.39
Lifestyle Conservative Trust PS Series I		2014	(m)		301			13.13 to 12.97			3,921		1.90 to 0.80			5.50			4.70 to 3.56
Lifestyle Conservative Trust PS Series II		2014			6,576			13.16 to 12.92			90,742		2.05 to 0.35			3.11			5.04 to 3.27
		2013			3,378			12.53 to 12.51			45,904		2.05 to 0.35			2.05			0.20 to 0.09
		2012			4,109			13.35 to 13.17			54,631		2.00 to 0.80			1.35			6.67 to 5.39
		2011			2,167			12.52 to 12.50			27,160		2.00 to 0.80			5.53			0.13 to -0.03
Lifestyle Growth MVP Series I		2014	(j)		30,351			24.97 to 20.36			597,199		1.90 to 0.45			2.64			1.70 to 0.24
		2013			35,064			24.56 to 20.31			683,480		1.90 to 0.45			2.46			18.81 to 17.10
		2012			37,058			20.67 to 17.34			617,143		1.90 to 0.45			1.83			13.35 to 11.71
		2011			37,273			18.23 to 15.52			565,281		1.90 to 0.45			2.69			-2.04 to -3.45
		2010			36,720			18.61 to 16.08			595,817		1.90 to 0.45			2.47			12.51 to 10.89
Lifestyle Growth MVP Series II		2014	(j)		555,247			17.86 to 16.21			10,822,611		2.10 to 0.35			2.44			1.68 to -0.08
		2013			666,341			17.88 to 15.94			12,998,169		2.10 to 0.35			2.26			18.67 to 16.61
		2012			708,897			15.33 to 13.43			11,862,337		2.10 to 0.35			1.63			13.19 to 11.21
		2011			737,881			13.78 to 11.87			11,115,623		2.10 to 0.35			2.46			-2.15 to -3.84
		2010			778,123			14.34 to 12.13			12,206,253		2.10 to 0.35			2.26			14.68 to 12.44
Lifestyle Growth MVP Series NAV		2014	(j)		36			18.82 to 18.82			687		1.20 to 1.20			2.86			1.06 to 1.06
		2013			36			18.63 to 18.63			680		1.20 to 1.20			2.58			17.96 to 17.96
		2012			36			15.79 to 15.79			576		1.20 to 1.20			2.48			12.54 to 12.54
		2011			11			14.03 to 14.03			150		1.20 to 1.20			3.35			-2.72 to -2.72
Lifestyle Growth Trust PS Series I		2014			1,597			13.40 to 13.24			21,319		1.90 to 0.80			3.21			5.32 to 4.17
		2013	(f)		192			12.72 to 12.71			2,441		1.90 to 0.80			28.16			1.76 to 1.69
Lifestyle Growth Trust PS Series II		2014			85,785			13.43 to 13.19			1,280,302		2.05 to 0.35			2.85			5.51 to 3.74
		2013			18,545			12.73 to 12.71			283,826		2.05 to 0.35			1.84			1.81 to 1.69
		2012			12,312			13.82 to 13.14			164,900		2.00 to 0.80			0.98			11.55 to 10.21
		2011			7,241			12.39 to 11.92			86,637		2.00 to 0.80			3.65			-0.89 to -4.63
Lifestyle Moderate MVP Series I		2014	(k)		10,258			28.07 to 20.41			219,648		1.90 to 0.45			2.70			4.47 to 2.96
		2013			11,896			26.87 to 19.82			246,754		1.90 to 0.45			2.88			9.72 to 8.15
		2012			13,080			24.49 to 18.33			250,095		1.90 to 0.45			2.43			10.17 to 8.57
		2011			14,027			22.23 to 16.88			250,835		1.90 to 0.45			3.53			1.87 to 0.41
		2010			14,332			21.82 to 16.81			265,027		1.90 to 0.45			2.70			10.06 to 8.47
Lifestyle Moderate MVP Series II		2014	(k)		124,618			16.91 to 16.24			2,395,036		2.10 to 0.35			2.52			4.32 to 2.51
		2013			145,238			16.21 to 15.84			2,739,141		2.10 to 0.35			2.63			9.59 to 7.69
		2012			162,048			14.80 to 14.71			2,843,253		2.10 to 0.35			2.26			10.11 to 8.19
		2011			172,998			13.60 to 13.44			2,801,218		2.10 to 0.35			3.36			1.78 to 0.02
		2010			182,151			13.59 to 13.20			2,947,542		2.10 to 0.35			2.53			10.01 to 8.75
Lifestyle Moderate Trust PS Series I		2014			267			13.24 to 13.08			3,520		1.90 to 0.80			4.28			5.06 to 3.91
		2013	(f)		7			12.60 to 12.59			91		1.90 to 0.80			53.88			0.81 to 0.73
Lifestyle Moderate Trust PS Series II		2014			10,888			13.28 to 13.04			159,488		2.05 to 0.35			2.86			5.24 to 3.47
		2013			5,852			12.62 to 12.60			85,029		2.05 to 0.35			2.00			0.93 to 0.81
		2012			5,877			13.56 to 13.22			78,796		2.00 to 0.80			1.33			8.68 to 7.37
		2011			2,737			12.48 to 12.31			33,824		2.00 to 0.80			4.78			-0.20 to -1.48
Mid Cap Index Trust Series I		2014			970			39.40 to 30.73			32,306		1.90 to 0.45			0.95			8.85 to 7.29
		2013			1,160			36.19 to 28.65			35,850		1.90 to 0.45			1.05			32.43 to 30.52
		2012			1,288			27.33 to 21.95			30,406		1.90 to 0.45			1.37			16.95 to 15.26
		2011			1,598			23.37 to 19.04			32,480		1.90 to 0.45			0.61			-2.69 to -4.09
		2010			1,987			24.01 to 19.85			41,949		1.90 to 0.45			1.06			25.42 to 23.61
Mid Cap Index Trust Series II		2014			2,031			35.14 to 34.76			60,840		2.05 to 0.45			0.74			8.63 to 6.90
		2013			2,501			32.51 to 32.35			70,022		2.05 to 0.45			0.84			32.16 to 30.06
		2012			2,956			25.00 to 24.48			63,742		2.05 to 0.45			1.19			16.77 to 14.91
		2011			3,634			21.75 to 20.96			67,846		2.05 to 0.45			0.45			-2.90 to -4.44
		2010			4,172			22.77 to 21.59			81,260		2.05 to 0.45			0.82			25.24 to 23.26
Mid Cap Stock Trust Series I		2014			6,125			32.80 to 30.66			153,599		1.90 to 0.45			0.10			7.53 to 5.98
		2013			7,278			30.51 to 28.93			171,939		1.90 to 0.45			0.04			36.20 to 34.25
		2012			8,616			22.40 to 21.55			150,467		1.90 to 0.45			0.00			21.66 to 19.90
		2011			10,034			18.41 to 17.97			146,328		1.90 to 0.45			0.00			-9.61 to -10.91
		2010			10,956			20.37 to 20.17			183,429		1.90 to 0.45			0.00			22.53 to 20.77

93

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

7. Unit Values — (continued):

				At December 31,								For the years and periods ended December 31,
Sub-account	Year			Units (000s)		Unit Fair Value Highest to Lowest (a)			Assets (000s)			Expense Ratio Highest to Lowest (b)			Investment Income Ratio (c)			Total Return Highest to Lowest (d)
Mid Cap Stock Trust Series II		2014			2,735		$	38.22 to $34.90		$	85,015		2.05% to 0.45	%		0.00	%		7.34% to 5.63	%
		2013			3,528			35.61 to 33.04			104,324		2.05 to 0.45			0.00			35.89 to 33.74
		2012			4,244			26.20 to 24.70			93,860		2.05 to 0.45			0.00			21.46 to 19.52
		2011			4,954			21.57 to 20.67			91,649		2.05 to 0.45			0.00			-9.80 to -11.23
		2010			5,660			23.92 to 23.28			117,687		2.05 to 0.45			0.00			22.25 to 20.32
Mid Value Trust Series I		2014			2,273			29.71 to 25.82			61,677		1.90 to 0.45			0.71			10.11 to 8.52
		2013			2,708			26.98 to 23.79			67,445		1.90 to 0.45			0.99			30.80 to 28.92
		2012			3,150			20.63 to 18.45			60,563		1.90 to 0.45			0.82			18.99 to 17.27
		2011			3,837			17.33 to 15.74			62,545		1.90 to 0.45			0.67			-5.35 to -6.71
		2010			4,754			18.31 to 16.87			82,548		1.90 to 0.45			2.00			15.64 to 13.97
Mid Value Trust Series II		2014			2,516			29.38 to 25.16			65,970		2.05 to 0.45			0.51			9.90 to 8.15
		2013			3,116			26.73 to 23.27			75,226		2.05 to 0.45			0.80			30.55 to 28.48
		2012			3,713			20.48 to 18.11			69,529		2.05 to 0.45			0.62			18.75 to 16.85
		2011			4,560			17.24 to 15.50			72,765		2.05 to 0.45			0.49			-5.46 to -6.96
		2010			5,481			18.24 to 16.66			93,544		2.05 to 0.45			1.80			15.27 to 13.44
Money Market Trust B Series NAV		2014			1,053			11.90 to 11.32			12,410		2.05 to 1.40			0.00			-1.39 to -2.03
		2013			1,342			12.07 to 11.55			16,055		2.05 to 1.40			0.01			-1.38 to -2.02
		2012			2,022			12.24 to 11.79			24,570		2.05 to 1.40			0.04			-1.35 to -1.99
		2011			2,116			12.40 to 12.03			26,096		2.05 to 1.40			0.00			-1.30 to -1.94
		2010			2,097			12.57 to 12.27			26,236		2.05 to 1.40			0.05			-1.34 to -1.98
Money Market Trust Series I		2014			4,544			16.01 to 11.36			67,226		2.10 to 0.45			0.00			-0.45 to -2.08
		2013			6,091			16.08 to 11.60			90,662		2.10 to 0.45			0.00			-0.44 to -2.07
		2012			8,934			16.16 to 11.85			133,630		2.10 to 0.45			0.00			-0.44 to -2.08
		2011			11,391			16.23 to 12.10			172,109		2.10 to 0.45			0.00			-0.38 to -2.00
		2010			11,385			16.29 to 12.35			176,239		2.10 to 0.45			0.00			-0.45 to -1.22
Money Market Trust Series II		2014			24,581			12.32 to 11.25			291,292		2.05 to 0.35			0.00			-0.35 to -2.03
		2013			33,503			12.37 to 11.48			403,055		2.05 to 0.35			0.00			-0.34 to -2.02
		2012			53,585			12.41 to 11.72			653,491		2.05 to 0.35			0.00			-0.34 to -2.03
		2011			69,706			12.45 to 11.96			862,728		2.05 to 0.35			0.00			-0.28 to -1.95
		2010			65,835			12.49 to 12.20			826,856		2.05 to 0.35			0.00			-0.35 to -2.03
Mutual Shares Trust Series I		2014			11,388			17.65 to 16.76			199,494		1.55 to 0.80			3.14			6.43 to 5.64
		2013			13,263			16.58 to 15.87			218,630		1.55 to 0.80			1.36			26.37 to 21.65
		2012			15,586			13.02 to 12.55			202,024		1.55 to 0.80			1.42			13.11 to 12.26
		2011			16,469			11.51 to 11.18			188,918		1.55 to 0.80			0.95			-1.73 to -2.46
		2010			14,733			11.72 to 11.47			172,166		1.55 to 0.80			2.97			10.63 to 9.80
Natural Resources Trust Series II		2014	(p)		0			35.38 to 29.43			0		2.05 to 0.45			1.27			-8.35 to -9.59
		2013			2,344			38.61 to 32.55			70,588		2.05 to 0.45			0.35			2.44 to 0.81
		2012			3,042			37.69 to 32.29			88,915		2.05 to 0.45			0.55			-0.23 to -1.82
		2011			3,724			37.77 to 32.89			112,991		2.05 to 0.45			0.29			-20.73 to -21.99
		2010			4,484			47.65 to 42.16			174,979		2.05 to 0.45			0.42			14.36 to 12.54
PIMCO All Asset (e)		2014			1,118			21.32 to 17.97			21,235		2.05 to 0.45			4.60			-0.21 to -1.80
		2013			1,472			21.36 to 18.30			28,264		2.05 to 0.45			4.07			-0.55 to -2.13
		2012			1,772			21.48 to 18.70			34,575		2.05 to 0.45			4.58			14.13 to 12.31
		2011			1,756			18.82 to 16.65			30,376		2.05 to 0.45			6.52			1.20 to -0.40
		2010			1,850			18.60 to 16.72			31,947		2.05 to 0.45			7.07			12.20 to 10.42
Real Estate Securities Trust Series I		2014			1,045			48.53 to 40.92			49,463		1.90 to 0.45			1.63			31.14 to 29.25
		2013			1,090			37.01 to 31.66			39,699		1.90 to 0.45			1.78			-0.55 to -1.98
		2012			1,243			37.21 to 32.30			46,030		1.90 to 0.45			1.67			16.73 to 15.04
		2011			1,504			31.88 to 28.08			48,039		1.90 to 0.45			1.38			8.97 to 7.41
		2010			1,872			29.26 to 26.14			55,339		1.90 to 0.45			1.84			28.62 to 26.77
Real Estate Securities Trust Series II		2014			1,575			45.46 to 36.27			57,638		2.05 to 0.45			1.40			30.93 to 28.86
		2013			1,754			34.72 to 28.15			49,641		2.05 to 0.45			1.54			-0.83 to -2.40
		2012			2,118			35.01 to 28.84			61,982		2.05 to 0.45			1.47			16.56 to 14.70
		2011			2,549			30.03 to 25.14			65,291		2.05 to 0.45			1.23			8.75 to 7.02
		2010			3,033			27.62 to 23.49			72,145		2.05 to 0.45			1.63			28.29 to 26.26
Real Return Bond Trust Series II		2014			1,885			20.07 to 16.65			33,242		2.05 to 0.45			2.72			4.07 to 2.41
		2013			2,358			19.29 to 16.26			40,384		2.05 to 0.45			2.22			-9.83 to -11.26
		2012			3,373			21.39 to 18.32			64,818		2.05 to 0.45			1.56			8.09 to 6.37
		2011			3,909			19.79 to 17.23			70,205		2.05 to 0.45			3.61			11.36 to 9.60
		2010			4,727			17.77 to 15.72			77,016		2.05 to 0.45			10.80			8.18 to 6.46
Science & Technology Trust Series I		2014			4,178			24.08 to 17.51			92,553		1.90 to 0.45			0.00			12.39 to 10.77
		2013			4,874			21.43 to 15.81			96,526		1.90 to 0.45			0.00			42.89 to 40.83
		2012			5,715			15.00 to 11.23			78,992		1.90 to 0.45			0.00			9.95 to 8.36
		2011			6,739			13.64 to 10.36			84,728		1.90 to 0.45			0.00			-8.16 to -9.48
		2010			8,374			14.85 to 11.45			113,408		1.90 to 0.45			0.00			24.05 to 22.27
Science & Technology Trust Series II		2014			1,615			31.94 to 30.87			42,084		2.05 to 0.45			0.00			12.19 to 10.41
		2013			1,841			28.47 to 27.96			43,354		2.05 to 0.45			0.00			42.62 to 40.36
		2012			2,111			19.96 to 19.92			35,388		2.05 to 0.45			0.00			9.73 to 7.98
		2011			2,616			18.45 to 18.19			40,402		2.05 to 0.45			0.00			-8.39 to -9.84
		2010			3,165			20.46 to 19.86			53,799		2.05 to 0.45			0.00			23.83 to 21.86

94

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

7. Unit Values — (continued):

			At December 31,								For the years and periods ended December 31,
Sub-account	Year		Units (000s)		Unit Fair Value Highest to Lowest (a)			Assets (000s)			Expense Ratio Highest to Lowest (b)			Investment Income Ratio (c)			Total Return Highest to Lowest (d)
Short Term Government Income Trust Series I		2014		3,108		$	13.00 to $12.15		$	38,733		1.90% to 0.45	%		1.96	%		0.69% to -0.76	%
		2013		3,808			12.91 to 12.24			47,590		1.90 to 0.45			1.82			-1.31 to -2.73
		2012		4,333			13.08 to 12.59			55,470		1.90 to 0.45			1.55			0.75 to -0.71
		2011		5,231			12.99 to 12.68			66,861		1.90 to 0.45			2.24			2.31 to 0.84
		2010		6,422			12.69 to 12.57			81,022		1.90 to 0.45			1.41			1.55 to 0.57
Short Term Government Income Trust Series II		2014		2,754			12.88 to 11.96			33,680		2.05 to 0.45			1.73			0.49 to -1.10
		2013		3,449			12.82 to 12.09			42,409		2.05 to 0.45			1.79			-1.51 to -3.07
		2012		4,262			13.02 to 12.47			53,831		2.05 to 0.45			1.33			0.55 to -1.05
		2011		5,381			12.95 to 12.60			68,363		2.05 to 0.45			2.31			2.10 to 0.49
		2010		5,947			12.68 to 12.54			74,874		2.05 to 0.45			1.24			1.43 to 0.34
Small Cap Growth Trust Series I		2014		31			21.83 to 20.73			682		1.55 to 0.80			0.00			6.71 to 5.92
		2013		31			20.46 to 19.57			629		1.55 to 0.80			0.00			41.87 to 34.84
		2012		37			14.31 to 13.80			534		1.55 to 0.80			0.00			15.53 to 14.67
		2011		34			12.39 to 12.03			425		1.55 to 0.80			0.00			-7.56 to -8.25
		2010		15			13.40 to 13.11			203		1.55 to 0.80			0.00			21.10 to 20.20
Small Cap Growth Trust Series II		2014		1,129			32.38 to 27.74			31,258		2.05 to 0.45			0.00			6.86 to 5.16
		2013		1,580			30.31 to 26.38			41,883		2.05 to 0.45			0.00			43.15 to 40.88
		2012		1,509			21.17 to 18.73			28,227		2.05 to 0.45			0.00			15.76 to 13.92
		2011		1,815			18.29 to 16.44			29,743		2.05 to 0.45			0.00			-7.43 to -8.90
		2010		1,880			19.76 to 18.04			33,604		2.05 to 0.45			0.00			21.16 to 19.24
Small Cap Index Trust Series I		2014		556			30.45 to 26.56			14,673		1.90 to 0.45			0.90			4.12 to 2.62
		2013		638			29.24 to 25.89			16,350		1.90 to 0.45			1.45			38.00 to 36.01
		2012		698			21.19 to 19.03			13,101		1.90 to 0.45			1.90			15.58 to 13.90
		2011		867			18.33 to 16.71			14,214		1.90 to 0.45			1.08			-4.93 to -6.30
		2010		1,068			19.29 to 17.83			18,602		1.90 to 0.45			0.51			25.80 to 23.99
Small Cap Index Trust Series II		2014		1,645			31.20 to 30.82			44,641		2.05 to 0.45			0.68			3.94 to 2.29
		2013		2,056			30.50 to 29.65			54,105		2.05 to 0.45			1.18			37.72 to 35.54
		2012		2,691			22.51 to 21.53			51,994		2.05 to 0.45			1.74			15.30 to 13.46
		2011		3,112			19.84 to 18.67			52,726		2.05 to 0.45			0.91			-5.07 to -6.57
		2010		3,570			21.23 to 19.67			64,425		2.05 to 0.45			0.28			25.53 to 23.54
Small Cap Opportunities Trust Series I		2014		1,508			37.30 to 31.50			49,883		1.90 to 0.45			0.05			1.92 to 0.46
		2013		1,891			36.60 to 31.36			61,924		1.90 to 0.45			0.56			39.53 to 37.52
		2012		999			26.23 to 22.80			23,627		1.90 to 0.45			0.00			16.32 to 14.63
		2011		1,177			22.55 to 19.89			24,200		1.90 to 0.45			0.09			-3.60 to -4.98
		2010		1,570			23.39 to 20.93			33,857		1.90 to 0.45			0.00			29.09 to 27.23
Small Cap Opportunities Trust Series II		2014		1,273			36.58 to 30.35			39,455		2.05 to 0.45			0.00			1.67 to 0.06
		2013		1,608			35.98 to 30.33			49,563		2.05 to 0.45			0.45			39.30 to 37.09
		2012		1,161			25.83 to 22.13			25,564		2.05 to 0.45			0.00			16.09 to 14.24
		2011		1,418			22.25 to 19.37			27,349		2.05 to 0.45			0.06			-3.76 to -5.28
		2010		1,697			23.12 to 20.45			34,524		2.05 to 0.45			0.00			28.76 to 26.72
Small Cap Value Trust Series I		2014		30			25.26 to 23.98			743		1.55 to 0.80			0.65			6.32 to 5.53
		2013		30			23.75 to 22.73			712		1.55 to 0.80			0.51			31.27 to 25.45
		2012		34			17.96 to 17.31			605		1.55 to 0.80			0.86			14.77 to 13.91
		2011		35			15.65 to 15.20			541		1.55 to 0.80			0.92			0.24 to -0.51
		2010		27			15.61 to 15.28			416		1.55 to 0.80			0.40			25.10 to 24.16
Small Cap Value Trust Series II		2014		1,439			31.38 to 26.88			38,878		2.05 to 0.45			0.41			6.48 to 4.79
		2013		1,703			29.47 to 25.65			44,414		2.05 to 0.45			0.39			32.41 to 30.31
		2012		1,814			22.26 to 19.69			36,243		2.05 to 0.45			0.59			14.98 to 13.15
		2011		2,404			19.36 to 17.40			42,339		2.05 to 0.45			0.58			0.39 to -1.20
		2010		2,769			19.28 to 17.61			49,174		2.05 to 0.45			0.15			25.36 to 23.38
Small Company Value Trust Series I		2014		1,448			40.46 to 32.45			51,324		1.90 to 0.45			0.03			-0.34 to -1.78
		2013		1,745			40.59 to 33.04			62,667		1.90 to 0.45			1.60			31.02 to 29.14
		2012		2,066			30.98 to 25.59			57,164		1.90 to 0.45			0.24			15.77 to 14.10
		2011		2,555			26.76 to 22.42			61,601		1.90 to 0.45			0.53			-1.37 to -2.79
		2010		3,138			27.13 to 23.07			77,464		1.90 to 0.45			1.34			20.81 to 19.08
Small Company Value Trust Series II		2014		1,803			33.40 to 31.25			51,136		2.05 to 0.45			0.00			-0.57 to -2.15
		2013		2,184			33.59 to 31.94			63,341		2.05 to 0.45			1.55			30.82 to 28.74
		2012		2,734			25.68 to 24.81			61,840		2.05 to 0.45			0.12			15.59 to 13.74
		2011		3,365			22.22 to 21.81			66,734		2.05 to 0.45			0.36			-1.64 to -3.20
		2010		3,908			22.59 to 22.53			79,850		2.05 to 0.45			1.16			20.61 to 18.70
Strategic Income Opportunities Trust Series I		2014		2,159			24.29 to 20.81			47,034		1.90 to 0.45			4.29			4.59 to 3.08
		2013		2,443			23.22 to 20.19			51,409		1.90 to 0.45			5.33			3.35 to 1.86
		2012		2,795			22.47 to 19.82			57,519		1.90 to 0.45			6.55			12.35 to 10.72
		2011		3,257			20.00 to 17.90			60,232		1.90 to 0.45			9.99			1.57 to 0.11
		2010		4,069			19.69 to 17.88			74,818		1.90 to 0.45			7.29			1.76 to 1.53
Strategic Income Opportunities Trust Series II		2014		2,351			24.08 to 20.31			48,604		2.05 to 0.45			4.00			4.37 to 2.71
		2013		2,798			23.08 to 19.77			56,410		2.05 to 0.45			5.13			3.14 to 1.50
		2012		3,198			22.37 to 19.48			63,288		2.05 to 0.45			6.38			12.10 to 10.31
		2011		3,621			19.96 to 17.66			64,718		2.05 to 0.45			9.94			1.43 to -0.18
		2010		4,426			19.68 to 17.69			78,798		2.05 to 0.45			20.62			15.00 to 13.18
Total Bond Market Trust B Series II		2014		5,061			12.73 to 12.28			62,954		2.10 to 0.45			2.98			5.42 to 3.69

95

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

7. Unit Values — (continued):

			At December 31,								For the years and periods ended December 31,
Sub-account	Year		Units (000s)		Unit Fair Value Highest to Lowest (a)			Assets (000s)			Expense Ratio Highest to Lowest (b)			Investment Income Ratio (c)			Total Return Highest to Lowest (d)
Total Bond Market Trust B Series II		2013		6,319		$	12.07 to $11.85		$	75,350		2.10% to 0.45	%		2.54	%		-3.21% to -4.79	%
		2012		11,124			12.47 to 12.44			138,532		2.10 to 0.45			4.56			-0.20 to -0.47
Total Bond Market Trust B Series NAV		2014		9,896			12.70 to 12.49			125,389		1.55 to 0.80			3.14			5.21 to 4.43
		2013		11,117			12.07 to 11.96			134,025		1.55 to 0.80			3.46			-3.22 to -3.94
		2012		10,629			12.47 to 12.46			132,524		1.55 to 0.80			5.79			-0.24 to -0.36
Total Return Trust Series I		2014		5,260			28.01 to 20.17			120,418		1.90 to 0.45			3.26			4.26 to 2.76
		2013		6,065			26.87 to 19.63			134,680		1.90 to 0.45			2.88			-2.47 to -3.87
		2012		7,524			27.55 to 20.42			173,281		1.90 to 0.45			1.91			8.00 to 6.43
		2011		8,767			25.51 to 19.18			189,221		1.90 to 0.45			4.10			3.45 to 1.96
		2010		11,096			24.66 to 18.81			234,959		1.90 to 0.45			2.38			7.16 to 5.62
Total Return Trust Series II		2014		7,250			22.91 to 17.16			138,687		2.05 to 0.45			2.94			3.99 to 2.34
		2013		9,213			22.03 to 16.77			173,637		2.05 to 0.45			2.62			-2.67 to -4.21
		2012		12,617			22.63 to 17.50			249,311		2.05 to 0.45			1.78			7.80 to 6.08
		2011		14,095			21.00 to 16.50			261,575		2.05 to 0.45			3.93			3.24 to 1.61
		2010		17,037			20.34 to 16.24			310,049		2.05 to 0.45			2.14			6.92 to 5.23
Total Stock Market Index Trust Series I		2014		888			22.41 to 22.22			17,375		1.90 to 0.45			1.23			10.97 to 9.37
		2013		835			20.32 to 20.20			14,853		1.90 to 0.45			1.40			32.80 to 30.89
		2012		875			15.52 to 15.21			11,817		1.90 to 0.45			1.50			14.98 to 13.32
		2011		940			13.70 to 13.23			11,170		1.90 to 0.45			1.19			-0.17 to -1.61
		2010		1,105			13.92 to 13.25			13,295		1.90 to 0.45			1.30			16.67 to 14.99
Total Stock Market Index Trust Series II		2014		1,407			29.08 to 27.72			35,266		2.05 to 0.45			0.98			10.80 to 9.04
		2013		1,604			26.24 to 25.42			36,728		2.05 to 0.45			1.17			32.49 to 30.39
		2012		1,905			19.81 to 19.50			33,349		2.05 to 0.45			1.29			14.70 to 12.87
		2011		2,152			17.27 to 17.27			33,256		2.05 to 0.45			1.00			-0.29 to -1.87
		2010		2,547			17.60 to 17.32			39,945		2.05 to 0.45			1.07			16.36 to 14.52
U.S. Equity Trust Series I		2014		6,093			18.07 to 17.38			107,450		1.90 to 0.45			1.40			10.53 to 8.94
		2013		7,022			16.35 to 15.96			113,145		1.90 to 0.45			1.60			27.65 to 25.82
		2012		8,094			12.81 to 12.68			103,128		1.90 to 0.45			2.06			2.46 to 1.45
U.S. Equity Trust Series II		2014		404			17.98 to 17.22			7,037		2.05 to 0.45			1.24			10.27 to 8.52
		2013		490			16.30 to 15.87			7,840		2.05 to 0.45			1.40			27.50 to 25.48
		2012		576			12.79 to 12.65			7,302		2.05 to 0.45			1.77			2.29 to 1.18
Ultra Short Term Bond Trust Series I		2014		728			12.15 to 11.76			8,810		1.55 to 0.80			1.38			-0.82 to -1.56
		2013		806			12.25 to 11.95			9,849		1.55 to 0.80			1.69			-0.86 to -1.60
		2012		588			12.36 to 12.14			7,255		1.55 to 0.80			1.67			-0.27 to -1.02
		2011		255			12.39 to 12.27			3,160		1.55 to 0.80			2.66			-0.67 to -1.41
		2010		54			12.47 to 12.44			677		1.55 to 0.80			1.41			-0.20 to -0.47
Ultra Short Term Bond Trust Series II		2014		17,287			12.26 to 11.35			201,813		2.10 to 0.35			1.32			-0.65 to -2.38
		2013		15,827			12.34 to 11.63			187,845		2.10 to 0.35			1.19			-0.61 to -2.34
		2012		9,950			12.42 to 11.91			120,203		2.10 to 0.35			1.01			0.02 to -1.73
		2011		10,258			12.42 to 12.12			125,370		2.10 to 0.35			1.98			-0.43 to -2.15
		2010		2,854			12.47 to 12.38			35,418		2.10 to 0.35			1.17			-0.23 to -0.95
Utilities Trust Series I		2014		650			35.09 to 33.07			19,899		1.90 to 0.45			2.93			12.08 to 10.47
		2013		706			31.31 to 29.94			19,526		1.90 to 0.45			1.93			20.02 to 18.30
		2012		820			26.09 to 25.31			19,070		1.90 to 0.45			3.54			13.14 to 11.50
		2011		987			23.06 to 22.70			20,484		1.90 to 0.45			3.51			6.17 to 4.65
		2010		1,163			21.72 to 21.69			22,951		1.90 to 0.45			2.23			13.41 to 11.78
Utilities Trust Series II		2014		419			52.96 to 45.57			18,763		2.05 to 0.45			2.72			11.91 to 10.13
		2013		494			47.33 to 41.38			20,043		2.05 to 0.45			1.71			19.81 to 17.91
		2012		600			39.50 to 35.09			20,613		2.05 to 0.45			3.27			12.85 to 11.05
		2011		819			35.01 to 31.60			25,253		2.05 to 0.45			3.47			6.10 to 4.42
		2010		908			32.99 to 30.27			26,637		2.05 to 0.45			2.11			13.11 to 11.32
Value Opportunities (e)		2014		72			101.05 to 25.81			3,764		1.90 to 1.40			0.06			3.60 to 3.09
		2013		84			97.54 to 25.03			4,387		1.90 to 1.40			0.37			40.22 to 39.52
		2012		99			69.56 to 17.94			3,631		1.90 to 1.40			0.29			11.73 to 11.17
		2011		111			62.26 to 16.14			3,696		1.90 to 1.40			0.22			-3.90 to -4.38
		2010		143			64.78 to 16.88			4,893		1.90 to 1.40			0.36			26.71 to 26.08
Value Trust Series I		2014		2,627			42.42 to 30.53			88,765		1.90 to 0.45			0.45			9.33 to 7.76
		2013		3,191			38.80 to 28.33			99,907		1.90 to 0.45			0.78			34.79 to 32.85
		2012		3,841			28.79 to 21.32			88,496		1.90 to 0.45			0.80			16.89 to 15.20
		2011		4,433			24.63 to 18.51			88,764		1.90 to 0.45			1.06			0.53 to -0.92
		2010		5,104			24.50 to 18.68			104,428		1.90 to 0.45			0.98			21.67 to 19.92
Value Trust Series II		2014		920			39.01 to 37.60			28,391		2.05 to 0.45			0.26			9.12 to 7.39
		2013		1,099			36.33 to 34.46			31,853		2.05 to 0.45			0.62			34.50 to 32.36
		2012		1,216			27.44 to 25.62			26,654		2.05 to 0.45			0.62			16.65 to 14.79
		2011		1,384			23.91 to 21.96			26,358		2.05 to 0.45			0.84			0.38 to -1.21
		2010		1,628			24.20 to 21.88			31,318		2.05 to 0.45			0.77			21.41 to 19.49

96

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

7. Unit Values — (continued):

(a) As the unit fair value 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 unit values are not within the ranges presented.

(b) These ratios represent the annualized contract expenses of the variable account, consisting primarily 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 policyholder accounts through the redemption of units and expenses of the underlying Portfolio are excluded.

(c) These ratios, which are not annualized, represent the distributions from net investment income received by the sub-account from the underlying Portfolio, net of management fees assessed by the portfolio manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against policyholder accounts either through the reductions in the unit values or the redemptions of units. The recognition of investment income by the sub-account is affected by the timing of the declaration of dividends by the underlying Portfolio in which the sub-accounts invest.

(d) These ratios, which are not annualized, represent the total return for the periods indicated, including changes in the value of the underlying Portfolio, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options indicated in footnote 1 with a date notation, if any, denote the effective date of that investment option in the variable account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period. For closed sub-accounts, the total return is calculated from the beginning of the reporting period to the date the sub-account closed. 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.

(e) Sub-account that invests in non-affiliated Trust.

(f) Reflects the period from commencement of operations on December 9, 2013 through December 31, 2013.

(g) Renamed on May 5, 2014. Previously known as Lifestyle Aggressive Trust.

(h) Renamed on May 5, 2014. Previously known as Lifestyle Balanced Trust.

(i) Renamed on May 5, 2014. Previously known as Lifestyle Conservative Trust.

(j) Renamed on May 5, 2014. Previously known as Lifestyle Growth Trust.

(k) Renamed on May 5, 2014. Previously known as Lifestyle Moderate Trust.

(l) Renamed on November 10, 2014. Previously known as Financial Services Trust.

(m) Sub-account available in prior year but no activity.

(n) Terminated as an investment option and funds transferred to Bond Trust on November 10, 2014.

(o) Terminated as an investment option and funds transferred to Fundamental Large Cap Value Trust on November 10, 2014.

(p) Terminated as an investment option and funds transferred to Global Trust on November 10, 2014.

97

John Hancock Life Insurance Company (U.S.A.) Separate Account H

Notes to Financial Statements — (continued)

December 31, 2014

8. Diversification Requirements

The Internal Revenue Service has issued regulations under Section 817(h) of the Internal Revenue Code (“the Code”). Under the provisions of Section 817(h) of the Code, a Contract will not be treated as a variable annuity contract for federal tax purposes for any period for which the investments of the Account on which the contract is based are not adequately diversified. The Code provides that the “adequately diversified” requirement may be met if the underlying investments satisfy either a statutory safe harbor test or diversification requirement set forth in regulations issued by the Secretary of the Treasury. The Company believes that the Account satisfies the current requirements of the regulations, and the Account will continue to meet such requirements.

9. Contract Charges

The expense ratio represents the contract expenses of the Account for the period indicated and includes only those expenses that are charged through a reduction of the unit value. Included in this category are mortality and expense charges, and the cost of any riders the policy holder has elected. These fees range between 0.35% and 2.10% of net assets of the sub-account depending on the type of contract. In addition, annual contract charges of up to $30 per policy are made through redemption of units.

98

PART C OTHER INFORMATION

Guide to Name Changes and Successions:

NAME CHANGES

DATE OF CHANGE	OLD NAME	NEW NAME
October 1, 1997	NASL Variable Account	The Manufacturers Life Insurance Company of North America Separate Account A
October 1, 1997	North American Security Life Insurance Company	The Manufacturers Life Insurance Company of North America
November 1, 1997	NAWL Holding Co., Inc.	Manulife-Wood Logan Holding Co., Inc.
September 24, 1999	Wood Logan Associates, Inc.	Manulife Wood Logan, Inc.
January 1, 2005	The Manufacturers Life Insurance Company (U.S.A.) Separate Account A	John Hancock Life Insurance Company (U.S.A.) Separate Account A
January 1, 2005	The Manufacturers Life Insurance Company (U.S.A.)	John Hancock Life Insurance Company (U.S.A.)
January 1, 2005	Manulife Financial Securities LLC	John Hancock Distributors LLC
January 1, 2005	Manufacturers Securities Services, LLC	John Hancock Investment Management Services, LLC

On September 30, 1997, Manufacturers Securities Services, LLC succeeded to the business of NASL Financial Services, Inc.

The following changes became effective January 1, 2002: (a) The Manufacturers Life Insurance Company of North America (“Manulife North America”) merged into The Manufacturers Life Insurance Company (U.S.A.) with the latter becoming the

owner of all of Manulife North America’s assets; (b) Manulife Financial Securities LLC became the successor broker-dealer to Manufacturers Securities Services, LLC.

* * * * *

Item 24. Financial Statements and Exhibits

(a) Financial Statements

(1) Financial Statements of the Registrant, John Hancock Life Insurance Company (U.S.A.) Separate Account H. [FILED HEREWITH]

(2) Financial Statements of the Depositor, John Hancock Life Insurance Company (U.S.A.). [FILED HEREWITH]

(b) Exhibits

(1)        (i) Resolution of the Board of Directors of Manufacturers Life Insurance Company (U.S.A.) establishing The Manufacturers Life Insurance Company Separate Account H - Incorporated by reference to Exhibit (1)(i) to pre-effective amendment no. 1 to the registration statement, file number 333-70728, filed January 2, 2002.

(2) Agreements for custody of securities and similar investments - Not Applicable.

(3)        (i) Underwriting Agreement dated August 10, 1995 - Incorporated by reference to Exhibit (b)(3)(i) to Form N-4, file number 033-76162, filed February 25, 1998.

(ii) Distribution and Servicing Agreement dated February 17, 2009, incorporated by reference to Exhibit 24(b)(3)(ii) to Post-Effective Amendment No. 31 to Registration Statement, File No. 333-70728, filed on April 30, 2009.

(iii) General Agent and Broker Dealer Selling Agreement, incorporated by reference to Exhibit 24(b)(3)(iii) to Post-Effective Amendment No. 31 to Registration Statement, File No. 333-70728, filed on April 30, 2009.

	(iv)	Form of Amendment to General Agent and Broker-Dealer Selling Agreement (amended with respect to GIFL Rollover Annuity and IRA Rollover Program), incorporated by reference to Exhibit 24(b)(3)(v) to Pre-Effective Amendment No. 1 to this Registration Statement, File No. 333-149421, filed on June 30, 2008.
(4)	(i)	Form of Specimen Single Payment Individual Deferred Variable Annuity Contract, Non-Participating for Venture 200.10—incorporated by reference to Exhibit 24(b)(4)(i) to this initial Registration Statement, File No. 333-167019, filed on May 21, 2010.
	(ii)	Specifications Pages for Venture 200.10 for Roth IRA—incorporated by reference to Exhibit 24(b)(4)(ii) to this initial Registration Statement, File No. 333-167019, filed on May 21, 2010.
	(iii)	Specifications Pages for Venture 200.10 for traditional IRA—incorporated by reference to Exhibit 24(b)(4)(iii) to this initial Registration Statement, File No. 333-167019, filed on May 21, 2010.
	(iv)	Form of Specimen Single Payment Individual Deferred Variable Annuity Contract, Non-Participating for Venture 201.10—incorporated by reference to Exhibit 24(b)(4)(iv) to this initial Registration Statement, File No. 333-167019, filed on May 21, 2010.
	(v)	Specifications Pages for Venture 201.10 for Roth IRA—incorporated by reference to Exhibit 24(b)(4)(v) to this initial Registration Statement, File No. 333-167019, filed on May 21, 2010.
	(vi)	Specifications Pages for Venture 201.10 for traditional IRA—incorporated by reference to Exhibit 24(b)(4)(vi) to this initial Registration Statement, File No. 333-167019, filed on May 21, 2010.
	(vii)	Form of Specimen Single Payment Individual Deferred Variable Annuity Contract, Non-Participating for Venture 202.10—incorporated by reference to Exhibit 24(b)(4)(vii) to this initial Registration Statement, File No. 333-167019, filed on May 21, 2010.
	(viii)	Specifications Pages for Venture 202.10 for Roth IRA—incorporated by reference to Exhibit 24(b)(4)(viii) to this initial Registration Statement, File No. 333-167019, filed on May 21, 2010.
	(ix)	Specifications Pages for Venture 202.10 for traditional IRA—incorporated by reference to Exhibit 24(b)(4)(ix) to this initial Registration Statement, File No. 333-167019, filed on May 21, 2010.
(5)		Form of Specimen Application for Flexible Purchase Payment (for GIFL Rollover) or Single Payment (for GIFL Select IRA Rollover) Individual Deferred Variable Annuity Contract, Non-Participating—incorporated by reference to Exhibit 24(b)(5) to this initial Registration Statement, File No. 333-167019, filed on May 21, 2010.
(6)	(i)	Restated Articles of Redomestication of The Manufacturers Life Insurance Company (U.S.A.), incorporated by reference to Exhibit A(6) to Registration Statement on Form S-6, File No. 333-41814, filed on July 20, 2000.
	(ii)	Certificate of Amendment to Certificate of Incorporation of the Company, Name Change July 1984, incorporated by reference to Exhibit (3)(i)(a) to Form 10Q of The Manufacturers Life Insurance Company of North America, filed on November 14, 1997.
	(iii)	Certificate of Amendment to Certificate of Incorporation of the Company changing its name to John Hancock Life Insurance Company (U.S.A.) effective January 1, 2005, incorporated by reference to Exhibit (b)(6)(iii) to Registration Statement, File No. 333-70728, filed on May 1, 2007.

	(iv)	By-laws of The Manufacturers Life Insurance Company (U.S.A.— incorporated by reference to Exhibit A(6)(b) to the Registration Statement on Form S-6 filed July 20, 2000 (File No. 333-41814).
	(v)	Amendment to By-Laws reflecting the Company’s name change to John Hancock Life Insurance Company (U.S.A.) effective January 1, 2005—Incorporated by reference to Exhibit (b)(6)(v) to Post-Effective Amendment No. 20 to Registration Statement, File No. 333-70728, filed on May 1, 2007.
	(vi)	Amended and Restated By-Laws of John Hancock Life Insurance Company (U.S.A.) effective June 15, 2010, incorporated by reference to Exhibit 24 (b) (6) (vi) to Post-Effective Amendment No. 35 to Registration Statement, File No. 333-70728, filed November 8, 2010.
	(vii)	Amended and Restated Articles of Redomestication and Articles of Incorporation of John Hancock Life Insurance Company (U.S.A.) effective July 26, 2010, incorporated by referenced to Exhibit 24 (b) (6) (vii) to Post-Effective Amendment No. 35 to Registration Statement File No. 333-70728, filed November 8, 2010.
	(viii)	Amended and Restated By-Laws of John Hancock Life Insurance Company (U.S.A.) dated October 23, 2012, incorporated by reference to Exhibit 24(b)(6)(viii) to Post-Effective Amendment No. 6 to Registration Statement File No. 333-162245, filed January 18, 2013.
(7)		Contract of reinsurance in connection with the variable annuity contracts being offered—NOT APPLICABLE.
(8)		Other material contracts not made in the ordinary course of business which are to be performed in whole or in part on or after the date the registration statement is filed:
		(a)	(i)	CSC Customer Agreement dated June 30, 2004, incorporated by reference to Exhibit 24(b)(8)(a)(i) to Post-Effective Amendment No. 3 to Registration Statement, File No. 333-143073, filed on April 1, 2009. [Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on March 28, 2014.]
			(ii)	Addendum No. 2 to the Remote Service Exhibit Number 1 dated July 1, 2006 with CSC, incorporated by reference to Exhibit 24(b)(8)(a)(ii) to Post-Effective Amendment No. 3 to Registration Statement, File No. 333-143073, filed on April 1, 2009. [Portions of this exhibit have been omitted pursuant to an Order Granting Confidential Treatment granted by the SEC on March 28, 2014.]
		(b)	(i)	Merger Agreement with The Manufacturers Life Insurance Company (U.S.A.) and The Manufacturers Life Insurance Company of North America, incorporated by reference to Exhibit 24(b)(8)(ii)(A) to Post-Effective Amendment No. 31 to Registration Statement, File No. 333-70728, filed on April 30, 2009.
		(c)	(i)	Participation Agreement among John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company of New York, John Hancock Life Insurance Company, John Hancock Variable Life Insurance Company and John Hancock Trust dated April 20, 2005, incorporated by reference to Pre-Effective Amendment No. 1 to Registration Statement, File No. 333-126668, filed on October 12, 2005.
			(ii)	Shareholder Information Agreement between John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company of New York, John Hancock Life Insurance Company, John Hancock Variable Life Insurance, and John Hancock Trust portfolios (except American Funds Insurance Series) dated April 16, 2007, incorporated by reference to Post-Effective Amendment No. 9 to Registration Statement, File No. 333-85284, filed on April 30, 2007.
(9)		Opinion of Counsel and consent to its use as to the legality of the securities being registered—incorporated by reference to Exhibit 24(b)(9) to Pre-Effective Amendment No. 1 to this Registration Statement, File No. 333-167019, filed on July 30, 2010.
(10)		Written consent of Ernst & Young LLP, independent registered public accounting firm. [FILED HEREWITH]
(11)		All financial statements omitted from Item 23, Financial Statements—NOT APPLICABLE.
(12)		Agreements in consideration for providing initial capital between or among Registrant, Depositor, Underwriter or initial contract owners—NOT APPLICABLE.
(13)	(a)	Powers of Attorney for James R. Boyle, Thomas Borshoff, Ruth Ann Fleming, James D. Gallagher, Scott S. Hartz, Rex Schlaybaugh, Jr., and John G.Vrysen—incorporated by reference to Exhibit 24(b)(13)(b) of the initial filing of this registration statement, File No. 333-167019, filed on May 21, 2010.
	(b)	Power of Attorney for Steven Finch—incorporated by reference to Exhibit 24(b)(13)(b) of the Pre-Effective Amendment No. 1 of this Registration Statement, File No. 333-167019, filed on July 30, 2010.
	(c)	Power of Attorney for Paul M. Connolly, incorporated by reference to Exhibit 24(b)(13)(c) to Post-Effective Amendment No.1 to this Registration Statement, File No. 333-167019, filed May 2, 2011.
	(d)	Power of Attorney for Craig Bromley, incorporated by reference to Exhibit 24(b)(13)(d) to Post-Effective Amendment No. 3 to this Registration Statement, File No. 333-167019, filed on March 28, 2013.
	(e)	Power of Attorney for Michael Doughty, incorporated by reference to Exhibit 24(b)(13)(e) to Post-Effective Amendment No. 5 to this Registration Statement, File No. 333-167019, filed on March 31, 2014.

Item 25. Directors and Officers of the Depositor.

OFFICERS AND DIRECTORS OF JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

EFFECTIVE AS OF SEPTEMBER 22, 2014

NAME AND PRINCIPAL BUSINESS ADDRESS	POSITION WITH DEPOSITOR
Craig Bromley*	Chairman and President
Thomas Borshoff*	Director
Paul M. Connolly*	Director
Michael Doughty***	Director and Executive Vice President
Steven Finch*	Executive Vice President and Chief Financial Officer
Ruth Ann Fleming*	Director
James D. Gallagher*	Director, Executive Vice President, General Counsel and Chief Administrative Officer
Scott S. Hartz***	Director, Executive Vice President, and Chief Investment Officer – U.S. Investments
Rex Schlaybaugh, Jr.*	Director
John G. Vrysen*	Director
John C.S. Anderson	Senior Vice President
Andrew G. Arnott*	Senior Vice President
Kevin J. Cloherty*	Senior Vice President
Barry Evans#	Senior Vice President
Peter Gordon*	Senior Vice President
Brian Heapps***	Senior Vice President
Gregory Mack*	Senior Vice President
Janis K. McDonough***	Senior Vice President
H. Steven Moore**	Senior Vice President and Treasurer
James O’Brien†	Senior Vice President
Sebastian Pariath*	Senior Vice President, Head of Operations and Chief Information Officer
Timothy Ramza*	Senior Vice President
Alan R. Seghezzi***	Senior Vice President
Anthony Teta***	Senior Vice President
Brooks Tingle***	Senior Vice President
Emanuel Alves*	Vice President, Counsel, and Corporate Secretary
Roy V. Anderson*	Vice President
Abigail M. Armstrong***	Vice President
Kevin Askew††	Vice President
James Bacharach*	Vice President
William Ball	Vice President
William D. Bertrand	Vice President
Ann Birle†	Vice President
Stephen J. Blewitt***	Vice President
Alan Block*	Vice President
Robert Boyda*	Vice President
Grant Buchanan**	Vice President
David Campbell**	Vice President and Chief Risk Officer
Bob Carroll*	Vice President
Rick A. Carlson*	Vice President
Brian Collins†	Vice President
Paul M. Crowley	Vice President
John J. Danello*	Vice President
Brent Dennis***	Vice President
Robert Donahue††	Vice President
Paul Gallagher†††	Vice President
Ann Gencarella***	Vice President
Gerald C. Hanrahan, Jr.	Vice President
Richard Harris**	Vice President and Appointed Actuary

OFFICERS AND DIRECTORS OF JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

EFFECTIVE AS OF SEPTEMBER 22, 2014

NAME AND PRINCIPAL BUSINESS ADDRESS	POSITION WITH DEPOSITOR
John Hatch*	Vice President
Kevin Hill***	Vice President
Eugene Xavier Hodge, Jr.***	Vice President
James C. Hoodlet***	Vice President
Roy Kapoor**	Vice President
Mitchell Karman*	Vice President, Chief Compliance Officer, and Counsel
Frank Knox*	Vice President, Chief Compliance Officer – Retail Funds/Separate Accounts
Hung Ko**	Vice President, Treasury
David Kroach*	Vice President
Robert Leach*	Vice President
Scott Lively*	Vice President
Cheryl Mallett**	Vice President
Nathaniel I. Margolis***	Vice President
John B. Maynard†	Vice President
Karen McCafferty*	Vice President
Scott A. McFetridge***	Vice President
William McPadden***	Vice President
Maureen Milet***	Vice President and Chief Compliance Officer - Investments
Scott Morin*	Vice President
Jeffrey H. Nataupsky*	Vice President
Scott Navin***	Vice President
Betty Ng**	Vice President
Nina Nicolosi*	Vice President
Jeffrey Packard***	Vice President
Frank O’Neill*	Vice President
Daragh O’Sullivan***	Vice President
Jacques Ouimet†	Vice President
Gary M. Pelletier***	Vice President
David Plumb†	Vice President
Tracey Polsgrove*	Vice President
Krishna Ramdial**	Vice President, Treasury
S. Mark Ray***	Vice President
Jill Rebman**	Vice President
George Revoir*	Vice President
Mark Rizza*	Vice President
Andrew Ross**	Vice President
Lisa Ann Ryan†	Vice President
Thomas Samoluk*	Vice President
Martin Sheerin*	Vice President
Gordon Shone*	Vice President
Susan Simi	Vice President
Rob Stanley*	Vice President
Christopher Sutherland†	Vice President
Tony Todisco††	Vice President
Simonetta Vendittelli*	Vice President and Controller
Peter de Vries**	Vice President
Linda A. Watters*	Vice President
Jeffery Whitehead*	Vice President
Brent Wilkinson†	Vice President

OFFICERS AND DIRECTORS OF JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

EFFECTIVE AS OF SEPTEMBER 22, 2014

NAME AND PRINCIPAL BUSINESS ADDRESS	POSITION WITH DEPOSITOR
Henry Wong***	Vice President
Leo Zerilli*	Vice President

* Principal business office is 601 Congress Street, Boston, MA 02210

** Principal business office is 200 Bloor Street, Toronto, Canada M4W 1E5

*** Principal business office is 197 Clarendon Street, Boston, MA 02117

**** Principal business office is 164 Corporate Drive Portsmouth, NH 03801

† Principal business office is 200 Berkeley Street, Boston, MA 02116

†† Principal business office is 380 Stuart Street, Boston, MA 02116

††† Principal business office is 200 Clarendon Street, Boston, MA 02116

†††† Principal business office is 25 Water Street South, Kitchener, ON Canada N2G 4Y5

# Principal business office is 101 Huntington Avenue, Boston, MA 02199

Item 26. Persons Controlled by or Under Common Control with Depositor or Registrant.

Registrant is a separate account of John Hancock Life Insurance Company (U.S.A.) (the “Company”), operated as a unit investment trust. Registrant supports benefits payable under the Company’s variable annuity contracts by investing assets allocated to various investment options in shares of John Hancock Trust (the “Trust”), which is a “series” type of mutual fund registered under the

Investment Company Act of 1940 (the “Act”) as an open-end management investment company. The purchasers of variable annuity and variable life insurance contracts, in connection with which the Trust is used, will have the opportunity to instruct the Company with respect to the voting of the shares of the Series Fund held by Registrant as to certain matters. Subject to the voting

instructions, the Company directly controls Registrant.

On the effective date of this Amendment to the Registration Statement, JHFS and its subsidiaries are controlled by Manulife Financial Corporation (“MFC”). A list of other persons controlled by MFC as of December 31, 2014 appears below:

MANULIFE FINANCIAL CORPORATION PRINCIPAL SUBSIDIARIES - December 31, 2014 For External Use (1) The remaining 5% equity of PT Asuransi Jiwa Manulife Indonesia is indirectly held by The Manufacturers Life Insurance Company (2) The remaining 0.1% equity of John Hancock Advisers, LLC is indirectly held by John Hancock Subsidiaries LLC (3) 99% limited partnership interest is held by The Manufacturers Life Insurance Company (4) 99% limited partnership interest is held by Manulife Property Limited Partnership This chart displays voting interest. All entities are 100% controlled unless otherwise indicated. Indirect Control Direct Control

Item 27. Number of Contract Owners.

As of February 28, 2015, there were 40 qualified contracts and 0 non-qualified contracts of the series offered hereby outstanding.

Item 28. Indemnification.

Article XIV of the Restated Articles of Redomestication of the Company provides as follows:

No director of this Corporation shall be personally liable to the Corporation or its shareholders or policyholders for monetary damages for breach of the director’s fiduciary duty, provided that the foregoing shall not eliminate or limit the liability of a director for any of the following:

i) a breach of the director’s duty or loyalty to the Corporation or its shareholders or policyholders;

ii) acts or omissions not in good faith or that involve intentional misconduct or knowing violation of law;

iii) a violation of Sections 5036, 5276 or 5280 of the Michigan Insurance Code, being MCLA 500.5036, 500.5276 and 500.5280;

iv) a transaction from which the director derived an improper personal benefit; or

v) an act or omission occurring on or before the date of filing of these Articles of Incorporation.

If the Michigan Insurance Code is hereafter amended to authorize the further elimination or limitation of the liability of directors. then the liability of a director of the Corporation, in addition to the limitation on personal liability contained herein, shall be eliminated or limited to the fullest extent permitted by the Michigan Insurance Code as so amended. No amendment or repeal of this Article XIV shall apply to or have any effect on the liability or alleged liability of any director of the Corporation for or with respect to any acts or omissions of such director occurring prior to the effective date of any such amendment or repeal.

Notwithstanding the foregoing, Registrant hereby makes the following undertaking pursuant to Rule 484 under the Securities Act of 1933:

Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant 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 a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant 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 registrant 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) Set forth below is information concerning other investment companies for which John Hancock Distributors, LLC (“JHD LLC”), the principal underwriter of the contracts, acts as investment adviser or principal underwriter.

NAME OF INVESTMENT COMPANY	CAPACITY IN WHICH ACTING
John Hancock Life Insurance Company (U.S.A.) Separate Account H	Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account A	Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account N	Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account I	Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account L	Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account M	Principal Underwriter
John Hancock Life Insurance Company of New York Separate Account A	Principal Underwriter
John Hancock Life Insurance Company of New York Separate Account B	Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account Q	Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account W	Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account X	Principal Underwriter
John Hancock Variable Life Account UV	Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account R	Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account T	Principal Underwriter

John Hancock Variable Life Account S	Principal Underwriter
John Hancock Variable Life Account U	Principal Underwriter
John Hancock Variable Life Account V	Principal Underwriter

(b) John Hancock Life Insurance Company (U.S.A.) is the sole member of John Hancock Distributors LLC (JHD LLC). The management of JHD LLC is vested in its board of managers (consisting of Michael Doughty***, Steven Finch*, James C. Hoodlet***, George Revoir*, Alan Seghezzi***, and Christopher M. Walker**) who have authority to act on behalf of JHD LLC.

* Principal business office is 601 Congress Street, Boston, MA 02210

** Principal business office is 200 Bloor Street, Toronto, Canada M4W 1E5

*** Principal business office is 197 Clarendon St, Boston, MA 02116

(c) None.

Item 30. Location of Accounts and Records.

All books and records are maintained at 601 Congress Street, Boston, MA 02210.

Item 31. Management Services.

None.

Item 32. Undertakings.

(a) Representation of Insurer Pursuant to Section 26 of the Investment Company Act of 1940.

John Hancock Life Insurance Company (U.S.A.) (“Company”) hereby represents that the fees and charges deducted under the contracts issued pursuant to this registration statement, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the Company.

(b) Representation of Registrant Pursuant to Section 403(b) of the Internal Revenue Code of 1986, as amended.

Registrant is relying on a no-action letter issued in connection with funding vehicles for retirement plans meeting the requirements of Section 403(b) of the Internal Revenue Code of 1986, as amended, on November 28, 1988, SEC Reference No. IP-6-88, and is complying with the provisions of paragraphs 1-4 of such no action letter.

(c) Undertakings Pursuant to Item 32 of Form N-4

(1) The Depositor and Registrant will file a post-effective amendment to this registration statement as frequently as is necessary to insure that the audited financial statements in the registration statement are never longer than 16 months old for so long as payments under the variable annuity contracts may be accepted;

(2) The Depositor and Registrant will 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 post card or similar communication affixed to or included in the prospectus that the applicant can remove to send for a Statement of Additional Information; and

(3) The Depositor and Registrant will deliver any Statement of Additional Information and any financial statements required to be made available under this form promptly upon written or oral request.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant and the Depositor certify that they meet all the requirements for effectiveness of this post-effective amendment to the Registration Statement pursuant to Securities Act of 1933 Rule 485(b) and they have caused this amended Registration Statement to be signed on

their behalf in the City of Boston, Massachusetts, on this 30^th day of March, 2015.

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) SEPARATE ACCOUNT H (Registrant)
By:	JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) (Depositor)
By:	/s/ Craig Bromley
	Craig Bromley
	Chairman and President
JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)
By:	/s/ Craig Bromley
	Craig Bromley
	Chairman and President

SIGNATURES

As required by the Securities Act of 1933, this amended Registration Statement has been signed by the following persons in their capacities with the Depositor on this 30^th day of March, 2015.

Signature	Title
/s/ Craig Bromley	Chairman and President
Craig Bromley	(Principal Executive Officer)
/s/ Steven Finch	Executive Vice President and Chief Financial Officer
Steven Finch	(Principal Financial Officer)
/s/ Simonetta Vendittelli	Vice President and Controller
Simonetta Vendittelli	(Principal Accounting Officer)
*	Director
Thomas Borshoff
*	Director
Paul M. Connolly
*	Director
Michael Doughty
*	Director
Ruth Ann Fleming
*	Director
James D. Gallagher
*	Director
Scott S. Hartz
*	Director
Rex Schlaybaugh, Jr.
*	Director
John G. Vrysen
*/s/ Thomas J. Loftus	Senior Counsel—Annuities
Thomas J. Loftus
Pursuant to Power of Attorney

EXHIBIT INDEX

ITEM NO.	DESCRIPTION
24(b) (10)	Consent of independent registered public accounting firm