As filed with the U.S. Securities and Exchange Commission on June 6, 2008

Registration No. 333-148991

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-6

SEC File No 811-4834

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

PRE-EFFECTIVE AMENDMENT NO.1 x

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

AMENDMENT NO. 25 x

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

(Exact Name of Registrant)

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

(Name of Depositor)

197 Clarendon Street

Boston, MA 02116

(Complete address of depositor’s principal executive offices)

Depositor’s Telephone Number: 617-572-6000

JAMES C. HOODLET, ESQ.

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

U.S. Insurance Law

JOHN HANCOCK PLACE

BOSTON, MA 02117

(Name and complete address of agent for service)

Copy to:

THOMAS C. LAUERMAN, ESQ.

Jorden Burt LLP

1025 Thomas Jefferson Street, N.W.

Suite 400 East

Washington, D.C. 20007-5208

It is proposed that this filing will become effective as soon as practicable after the effective date of the Registration Statement.

The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.

Prospectus dated             , 2008

for interests in

Separate Account A

Interests are made available under

MAJESTIC SURVIVORSHIP VULX

a flexible premium survivorship variable universal life insurance policy issued by

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

(“John Hancock USA” )

The policy provides fixed account options with fixed rates of return declared by John Hancock USA

and the following investment accounts:

500 Index B	Global Real Estate	Overseas Equity
Active Bond	Health Sciences	Pacific Rim
All Cap Core	High Yield	PIMCO VIT All Asset
All Cap Growth	Income & Value	Real Estate Securities
All Cap Value	Index Allocation	Real Return Bond
American Asset Allocation	International Core	Science & Technology
American Blue Chip Income and Growth	International Equity Index B	Short-Term Bond
American Bond	International Opportunities	Small Cap
American Growth	International Small Cap	Small Cap Growth
American Growth-Income	International Value	Small Cap Index
American International	Investment Quality Bond	Small Cap Opportunities
Blue Chip Growth	Large Cap	Small Cap Value
Capital Appreciation	Large Cap Value	Small Company Value
Capital Appreciation Value	Lifestyle Aggressive	Strategic Bond
Classic Value	Lifestyle Balanced	Strategic Income
Core Allocation Plus	Lifestyle Conservative	Total Bond Market B
Core Bond	Lifestyle Growth	Total Return
Core Equity	Lifestyle Moderate	Total Stock Market Index
Disciplined Diversification	Managed	U.S. Core
Emerging Growth	Mid Cap Index	U.S. Government Securities
Emerging Small Company	Mid Cap Intersection	U.S. High Yield Bond
Equity-Income	Mid Cap Stock	U.S. Large Cap
Financial Services	Mid Cap Value	Utilities
Franklin Templeton Founding Allocation	Mid Value	Value
Fundamental Value	Money Market B	Brandes International Equity
Global	Natural Resources	Business Opportunity Value
Global Allocation	Optimized All Cap	Frontier Capital Appreciation
Global Bond	Optimized Value	Turner Core Growth
	* * * * * * * * * * * *

Please note that the Securities and Exchange Commission (“SEC”) has not approved or disapproved these securities, or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

GUIDE TO THIS PROSPECTUS

This prospectus is arranged in the following way:

• Starting on the next page is a Table of Contents for this prospectus.

• The section after the Table of Contents is called “Summary of Benefits and Risks.” It contains a summary of the benefits available under the policy and of the principal risks of purchasing the policy. You should read this section before reading any other section of this prospectus.

• Behind the Summary of Benefits and Risks section is a section called “Fee Tables” that describes the fees and expenses you will pay when buying, owning and surrendering the policy.

• Behind the Fee Tables section is a section called “Detailed Information.” This section gives more details about the policy. It may repeat certain information contained in the Summary of Benefits and Risks section in order to put the more detailed information in proper context.

• Finally, on the back cover of this prospectus is information concerning the Statement of Additional Information (the “SAI”) and how the SAI, personalized illustrations and other information can be obtained.

Prior to making any investment decisions, you should carefully review this product prospectus and all applicable supplements. In addition, you will receive the prospectuses for the underlying funds that we make available as investment options under the policies. The funds’ prospectuses describe the investment objectives, policies and restrictions of, and the risks relating to, investment in the funds. In the case of any of the portfolios that are operated as feeder funds, the prospectus for the corresponding master fund is also provided. If you need to obtain additional copies of any of these documents, please contact your John Hancock USA representative or contact our Service Office at the address and telephone number on the back page of this product prospectus.

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TABLE OF CONTENTS

	Page No.		Page No.
SUMMARY OF BENEFITS AND RISKS	4	Deductions from policy value	35
The nature of the policy	4	Additional information about how certain policy charges work	37
Summary of policy benefits	4	Sales expenses and related charges	37
Death benefit	4	Method of deduction	37
Surrender of the policy	4	Reduced charges for eligible classes	37
Withdrawals	5	Other charges we could impose in the future	37
Policy loans	5	Description of charges at the portfolio level	37
Optional supplementary benefit riders	5	Other policy benefits, rights and limitations	38
Investment options	5	Optional supplementary benefit riders you can add	38
Summary of policy risks	5	Enhanced Cash Value Rider	38
Lapse risk	5	Policy Split Option Rider	38
Investment risk	5	Return of Premium Death Benefit Rider	38
Transfer risk	6	Overloan Protection Rider	38
Early surrender risk	6	Four Year Term Rider	39
Market timing risk	6	Enhanced Yield Fixed Account Rider	39
Tax risks	6	Variations in policy terms	39
DETAILED INFORMATION	14	Procedures for issuance of a policy	39
Table of Investment Options and Investment Subadvisers	14	Commencement of insurance coverage	40
Description of John Hancock USA	25	Backdating	40
Description of Separate Account A	25	Temporary coverage prior to policy delivery	40
The fixed account options	26	Monthly deduction dates	40
The death benefit	26	Changes that we can make as to your policy	40
Limitations on payment of death benefit	27	The owner of the policy	41
Base Face Amount vs. Supplemental Face Amount	27	Policy cancellation right	41
The minimum death benefit	28	Reports that you will receive	41
When the younger insured person reaches 121	28	Assigning your policy	41
Requesting an increase in coverage	28	When we pay policy proceeds	42
Requesting a decrease in coverage	29	General	42
Change of death benefit option	29	Delay to challenge coverage	42
Tax consequences of coverage changes	29	Delay for check clearance	42
Your beneficiary	29	Delay of separate account proceeds	42
Ways in which we pay out policy proceeds	29	Delay of general account surrender proceeds	42
Changing a payment option	30	How you communicate with us	42
Tax impact of payment option chosen	30	General rules	42
Premiums	30	Telephone, facsimile and internet transactions	43
Planned premiums	30	Distribution of policies	43
Minimum initial premium	30	Compensation	44
Maximum premium payments	30	Tax considerations	45
Processing premium payments	30	General	45
Ways to pay premiums	31	Death benefit proceeds and other policy distributions	45
Lapse and reinstatement	31	Policy loans	46
Lapse	31	Diversification rules and ownership of the Account	46
Death during grace period	31	7-pay premium limit and modified endowment contract status	47
Reinstatement	31	Corporate and H.R. 10 retirement plans	48
The policy value	32	Withholding	48
Allocation of future premium payments	32	Life insurance purchases by residents of Puerto Rico	48
Transfers of existing policy value	32	Life insurance purchases by non-resident aliens .	48
Surrender and withdrawals	34	Financial statements reference	48
Surrender	34	Registration statement filed with the SEC	48
Withdrawals	34	Independent registered public accounting firm	48
Policy loans	34
Repayment of policy loans	35
Effects of policy loans	35
Description of charges at the policy level	35
Deduction from premium payments	35

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SUMMARY OF BENEFITS AND RISKS

The nature of the policy

This is a so-called “survivorship” policy that provides coverage on two insured persons. The policy’s primary purpose is to provide lifetime protection against economic loss due to the death of the last surviving insured person. The policy is unsuitable as a short-term savings vehicle because of the substantial policy-level charges. We are obligated to pay all amounts promised under the policy. The value of the amount you have invested under the policy may increase or decrease daily based on the investment results of the variable investment options that you choose. The amount we pay to the policy’s beneficiary upon the death of the last surviving insured person (we call this the “death benefit”) may be similarly affected. That’s why the policy is referred to as a “variable” life insurance policy. We call the investments you make in the policy “premiums” or “premium payments.” The amount we require as your first premium depends upon the specifics of your policy and the insured persons. Except as noted in the Detailed Information section of this prospectus, you can make any other premium payments you wish at any time. That’s why the policy is called a “flexible premium” policy.

In your application for the policy you will tell us how much life insurance coverage you want on the lives of the insured persons. This is called the “Total Face Amount.” The Total Face Amount is comprised of the Base Face Amount and any Supplemental Face Amount you elect. You choose the proportion of your policy’s Total Face Amount that is made up of Base Face Amount and Supplemental Face Amount based on your individual needs and objectives, which may change through time. Some of these considerations are discussed under “Base Face Amount vs. Supplemental Face Amount” in this prospectus; however, you should discuss your insurance needs and financial objectives with your registered representative before purchasing any life insurance product (see “Death benefit”).

If the life insurance protection described in this prospectus is provided under a master group policy, the term “policy” as used in this prospectus refers to the certificate we issue and not to the master group policy.

Summary of policy benefits

Death benefit

When the last surviving insured person dies, we will pay the death benefit minus any policy debt and unpaid fees and charges. There are two ways of calculating the death benefit (Option 1 and Option 2). You choose which one you want in the application. The two death benefit options are:

• Option 1 - The death benefit will equal the greater of (1) the Total Face Amount plus any amount payable under a supplementary benefit rider, or (2) the minimum death benefit (as described under “The minimum death benefit” provision in the “Detailed Information” section of this prospectus).

• Option 2 - The death benefit will equal the greater of (1) the Total Face Amount plus any amount payable under a supplementary benefit rider, plus the policy value on the date of death of the last surviving insured person, or (2) the minimum death benefit.

Surrender of the policy

You may surrender the policy in full at any time. If you do, we will pay you the policy value less any outstanding policy debt that then applies. This is called your “net cash surrender value.” You must return your policy when you request a surrender.

If you have not taken a loan on your policy, the “policy value” of your policy will, on any given date, be equal to:

• the amount you invested,

• gain or loss of the investment experience of the investment options you’ve chosen,

• minus all charges we deduct, and

• minus all withdrawals you have made.

If you take a loan on your policy, your policy value will be computed somewhat differently. See “Effects of policy loans.”

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Withdrawals

You may make a withdrawal of part of your net cash surrender value once in each policy month. Each withdrawal must be at least $500. Your policy value is automatically reduced by the amount of the withdrawal. We reserve the right to refuse a withdrawal if it would reduce the net cash surrender value or the Total Face Amount below certain minimum amounts.

Policy loans

If your policy is in full force and has sufficient policy value, you may borrow from it at any time by completing the appropriate form. Generally, the minimum amount of each loan is $500. The maximum amount you can borrow is determined by a formula as described in your policy. Interest is charged on each loan. You can pay the interest or allow it to become part of the outstanding loan balance. You can repay all or part of a loan at any time. If there is an outstanding loan when the last surviving insured person dies, it will be deducted from the death benefit. Policy loans permanently affect the calculation of your policy value, and may also result in adverse tax consequences.

Optional supplementary benefit riders

When you apply for the policy, you can request any of the optional supplementary benefit riders that we make available. Availability of riders varies from state to state. Charges for most riders will be deducted monthly from the policy value.

Investment options

The policy offers a number of investment options, as listed on page 1 of this prospectus. These investment options are subaccounts of Separate Account A (the “Account” or “Separate Account”), a separate account operated by us under Michigan law. We also currently offer two “fixed account” options—the standard fixed account option, and the enhanced yield fixed account option offered as a supplementary benefit rider. The variable investment options have returns that vary depending upon the investment results of underlying portfolios. These options are referred to in this prospectus as “investment accounts.” The fixed accounts and the investment accounts are sometimes collectively referred to in this prospectus as the “accounts.” The investment accounts cover a broad spectrum of investment styles and strategies. Although the portfolios of the series funds that underlie those investment accounts operate like publicly traded mutual funds, there are important differences between the investment accounts and publicly-traded mutual funds. You can transfer money from one investment account to another without tax liability. Moreover, any dividends and capital gains distributed by each underlying portfolio are automatically reinvested and reflected in the portfolio’s value and create no taxable event for you. If and when policy earnings are distributed (generally as a result of a surrender or withdrawal), they will be treated as ordinary income instead of as capital gains. Also, you must keep in mind that you are purchasing an insurance policy and you will be assessed charges at the policy level as well as at the fund level. Such policy level charges, in aggregate, are significant and will reduce the investment performance of your policy.

Summary of policy risks

Lapse risk

If the net cash surrender value is insufficient to pay the charges when due your policy can terminate (i.e. “lapse”). This can happen because you haven’t paid enough premium or because the investment performance of the investment accounts you’ve chosen has been poor or because of a combination of both factors. You will be given a “grace period” within which to make additional premium payments to keep the policy in effect. If lapse occurs, you may be given the opportunity to reinstate the policy by making the required premium payments and satisfying certain other conditions (see “Lapse and reinstatement”).

Since withdrawals reduce your policy value, withdrawals increase the risk of lapse. Policy loans also increase the risk of lapse.

Investment risk

As mentioned above, the investment performance of any investment account may be good or bad. Your policy value will rise or fall based on the investment performance of the investment accounts you’ve chosen. Some investment accounts are riskier than others. These risks (and potential rewards) are discussed in detail in the prospectuses of the underlying portfolios.

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Transfer risk

There is a risk that you will not be able to transfer your policy value from one investment account to another because of limitations on the dollar amount or frequency of transfers you can make. The limitations on transfers out of the fixed account options are more restrictive than those that apply to transfers out of investment accounts.

Early surrender risk

Depending on the policy value at the time you are considering surrender, there may be little or no surrender value payable to you.

Market timing risk

Variable investment accounts in variable life insurance products can be a prime target for abusive transfer activity because these products value their investment accounts on a daily basis and allow transfers among investment accounts without immediate tax consequences. As a result, some investors may seek to frequently transfer into and out of investment accounts in reaction to market news or to exploit a perceived pricing inefficiency. Whatever the reason, long-term investors in an investment account can be harmed by frequent transfer activity since such activity may expose the investment account’s underlying portfolio to increased portfolio transaction costs and/or disrupt the portfolio manager’s ability to effectively manage the portfolio’s investments in accordance with the portfolio’s investment objectives 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 impose restrictions on transfers (see “Transfers of existing policy value”) and reserve the right to change, suspend or terminate telephone, facsimile and internet transaction privileges (see “How you communicate with us”). In addition, we reserve the right to take other actions at any time to restrict trading, including, but not limited to: (i) restricting the number of transfers made during a defined period, (ii) restricting the dollar amount of transfers, and (iii) restricting transfers into and out of certain investment accounts. We also reserve the right to defer a transfer at any time we are unable to purchase or redeem shares of the underlying portfolio.

While we seek to identify and prevent disruptive frequent trading activity, it may not always be possible to do so.

Therefore, no assurance can be given that the restrictions we impose will be successful in preventing all disruptive frequent trading and avoiding harm to long-term investors.

Tax risks

Life insurance death benefits are ordinarily not subject to income tax. Other Federal and state taxes may apply as further discussed below. In general, you will be taxed on the amount of lifetime distributions that exceed the premiums paid under the policy. Any taxable distribution will be treated as ordinary income (rather than as capital gains) for tax purposes.

In order for you to receive the tax benefits extended to life insurance under the Internal Revenue Code, your policy must comply with certain requirements of the Code. We will monitor your policy for compliance with these requirements, but a policy might fail to qualify as life insurance in spite of our monitoring. If this were to occur, you would be subject to income tax on the income credited to your policy for the period of disqualification and all subsequent periods. The tax laws also contain a so-called “7 pay limit” that limits the amount of premium that can be paid in relation to the policy’s death benefit. If the limit is violated, the policy will be treated as a “modified endowment contract,” which can have adverse tax consequences. There are also certain Treasury Department rules referred to as the “investor control rules” that determine whether you would be treated as the “owner” of the assets underlying your policy. If that were determined to be the case, you would be taxed on any income or gains those assets generate. In other words, you would lose the value of the so-called “inside build-up” that is a major benefit of life insurance.

There is a tax risk associated with policy loans. Although no part of a loan is treated as income to you when the loan is made unless your policy is a “modified endowment contract,” surrender or lapse of the policy would result in the loan being treated as a distribution at the time of lapse or surrender. This could result in a considerable tax bill. Under certain circumstances involving large amounts of outstanding loans and an insured person of advanced age, you might find yourself having to choose between high premium requirements to keep your policy from lapsing and a significant tax burden if you allow the lapse to occur.

Tax consequences of ownership or receipt of policy proceeds under Federal, state and local estate, inheritance, gift and other tax laws can vary greatly depending upon the circumstances of each owner or beneficiary. There can also be unfavorable tax consequences on such things as the change of policy ownership or assignment of ownership interests. For

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these and all the other reasons mentioned above, we recommend you consult with a qualified tax adviser before buying the policy and before exercising certain rights under the policy.

FEE TABLES

This section contains tables that describe all of the fees and expenses that you will pay when buying and owning the policy. In the first three tables, certain entries show the minimum charge, the maximum charge and the charge for the representative insured persons.

Other entries show only the maximum charge we can assess and are labeled as such. Except where necessary to show a rate greater than zero, all rates shown in the tables have been rounded to two decimal places as required by prospectus disclosure rules. Consequently, the actual rates charged may be slightly higher or lower than those shown in the tables.

The first table below describes the fees and expenses that you will pay at the time that you pay a premium, transfer policy value between investment accounts or request an unscheduled increase in Supplemental Face Amount. We reserve the right to increase the premium charge beyond the level indicated on the Transaction Fees table in order to correspond with changes in state premium tax levels or in the Federal income tax treatment of the deferred acquisition costs for this type of policy. Currently, state premium tax levels range from 0% to 3.5%.

Transaction Fees
Charge	When Charge is Deducted	Amount Deducted
Maximum premium charge:(1)	Upon payment of premium	30% of Target Premiums and 10% of
		excess of Target Premium paid in
		policy year 1
		15% of Target Premiums and 6% of
		excess of Target Premium paid in
		policy years 2-5
		10% of Target Premiums and 6% of
		excess of Target Premium paid in
		policy years 6-10
		5% of all premiums paid in policy years
		11 and thereafter
Maximum transfer fee:(2)	Upon each transfer into or out of an	$25 (currently $0)
	investment account beyond an annual limit of
	not less than 12
Maximum unscheduled	Upon unscheduled increase in Supplemental	$20 per $1,000 of unscheduled increase
Supplemental Face Amount increase	Face Amount	in Supplemental Face Amount
charge:

(1) The current charges differ from those shown above as follows: Currently, a premium charge of 30% is deducted from each premium paid up to the Target Premium in the first policy year. A premium charge of 15% is deducted from each premium paid up to the Target Premium in policy years 2-5, and a charge of 10% is deducted from each premium paid up to the Target Premium in policy years 6-10. A premium charge of 8% is deducted from premium in excess of the Target Premium in the first policy year and a charge of 4% is deducted from each premium in excess of Target Premium in policy years 2-10. A premium charge of 3% is deducted from all premiums paid in policy years 11 and thereafter. If the premium received in the first policy year is less than the Target Premium, the premium received in the second policy year will be treated as if received in the first policy year until premiums received equal the Target Premium. The Target Premium appears in the Policy Specifications section of the policy and is based on the amount of Base Face Amount at issue.

(2) This charge is not currently imposed, but we reserve the right to do so in the policy.

The next two tables describe the charges and expenses that you will pay periodically during the time you own the policy. These tables do not include fees and expenses paid at the portfolio level. Except for the policy loan interest rate and Enhanced Cash Value rider charge, all of the charges shown in the tables are deducted from your policy value. The second table is devoted only to optional supplementary rider benefits.

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Periodic Charges Other Than Fund Operating Expenses
			Amount Deducted
	When Charge is
Charge	Deducted	Guaranteed Rate	Current Rate
Cost of insurance charge:(1)	Monthly
Minimum charge		$0.00002 per $1,000 of NAR	$0.00001 per $1,000 of NAR
Maximum charge		$83.33 per $1,000 of NAR	$5.57 per $1,000 of NAR
Charge for representative		$0.002 per $1,000 of NAR	$0.0003 per $1,000 of NAR
insured persons
Base Face Amount charge:(2)	Monthly for 10 policy
	years from the Policy
	Issue Date
Minimum charge		$0.03 per $1,000 of Base Face	$0.03 per $1,000 of Base Face
		Amount	Amount
Maximum charge		$0.36 per $1,000 of Base Face	$0.36 per $1,000 of Base Face
		Amount	Amount
Charge for representative		$0.11 per $1,000 of Base Face	$0.11 per $1,000 of Base Face
insured persons		Amount	Amount
Supplemental Face Amount	Monthly for 10 policy
Charge:(3)	years from the Policy
	Issue Date
Minimum charge		$0.02 per $1,000 of	$0.02 per $1,000 of
		Supplemental Face Amount	Supplemental Face Amount
Maximum charge		$0.27 per $1,000 of	$0.27 per $1,000 of
		Supplemental Face Amount	Supplemental Face Amount
Charge for representative		$0.08 per $1,000 of	$0.08 per $1,000 of
insured persons		Supplemental Face Amount	Supplemental Face Amount
Administrative charge:	Monthly	$15.00	$0.00
Asset-based risk charge:(4)	Monthly
Maximum charge		0.15% of policy value	0.02% of policy value
Maximum policy loan interest	Accrues daily	4.25%	4.25%
rate:(5)	Payable annually

(1)	The cost of insurance charge is determined by multiplying the amount of insurance for which we are at risk (the net amount at risk or “NAR”) by the applicable cost of insurance rate. The rates vary widely depending upon the length of time the policy has been in effect, the insurance risk characteristics of the insured persons and (generally) the gender of the insured persons. The “minimum” guaranteed rates shown in the table are the rates in the first policy year for a policy issued to cover two 20 year old female standard non-smoker underwriting risks. The “minimum” current rates shown in the table are the rates in the first policy year for a policy issued to cover two 20 year old female super preferred non-smoker underwriting risks. The “maximum” guaranteed and current rates shown in the table are the rates in the first policy year for two 90 year old male substandard smoker underwriting risks. The “representative insured persons” guaranteed and current rates shown in the table refer to the rates in the first policy year for a 55 year old male standard non-smoker underwriting risk and a 52 year old female standard non-smoker underwriting risk. The charges shown in the table may not be particularly relevant to your current situation. For more information about cost of insurance rates, talk to your John Hancock USA representative.
(2)	This charge is determined by multiplying the Base Face Amount at issue by the applicable rate. The rates vary by the sum of the issue age of the insured persons. The “minimum” guaranteed and current rates shown in the table are for two 20 year old persons. The “maximum” guaranteed and current rates shown in the table are for two 90 year old persons. The representative insured persons guaranteed and current rates referred to in the table are for a 55 year old person and a 52 year old person.
(3)	This charge is determined by multiplying the Supplemental Face Amount at issue by the applicable rate. The rates vary by the sum of the issue ages of the insured persons. The “minimum” guaranteed and current rates shown in the table are for two 20 year old persons. The “maximum” guaranteed and current rates shown in the table are for two 90 year old persons. The “representative insured persons” guaranteed and current rates referred to in the table are for a 55 year old person and a 52 year old person.
(4)	This charge only applies to the portion of the policy value held in the investment accounts. The charge determined does not apply to any fixed account. The “maximum” guaranteed charge shown in the table is for a policy with 20% Base Face Amount and 80%

Supplemental Face Amount at issue. The “maximum” guaranteed charge is 0.15% of policy value in policy years 1-20 and 0.08% in

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policy years 21 and thereafter. If you elect greater proportions of Supplemental Face Amount coverage at issue, the guaranteed limit upon the asset-based risk charge we provide will be higher. For example, a policy with 50% Base Face Amount and 50% Supplemental Face Amount at issue would have a guaranteed charge of 0.10% of policy value in policy years 1-20 and 0.06% in policy years 21 and thereafter. For a policy with 100% Base Face Amount and 0% Supplemental Face Amount at issue, the guaranteed charge would be 0.025% of policy value in policy years 1-20 and 0.02% in policy years 21 and thereafter. The current charge is the same for all policies, regardless of the percentages of Base Face Amount at issue and Supplemental Face Amount at issue. The current charge is 0.02% of policy value in policy years 1-10, 0.01% in policy years 11-20 and 0.00% in policy years 21 and thereafter.

  (5) 4.25% is the maximum effective annual interest rate we can charge and applies only during policy years 1-10. The effective annual interest rate is 3.00% thereafter (although we reserve the right to increase the rate after the tenth policy year to as much as 3.25%). The amount of any loan is transferred from the accounts to a special loan account which earns interest at an effective annual rate of 3.00%. Therefore, the cost of a loan is the difference between the loan interest we charge and the interest we credit to the special loan account.

		Rider Charges
			Amount Deducted
	When Charge is
Charge	Deducted	Guaranteed Rate	Current Rate
Enhanced Cash Value Rider:(1)	Upon payment of	2% of premium paid up to the	2% of premium paid up to the
	premium	Target Premium in policy year 1	Target Premium in policy year 1
Policy Split Option Rider:	Monthly	$0.06 per $1,000 of the current	$0.06 per $1,000 of the current
		Total Face Amount	Total Face Amount
Return of Premium Death Benefit	Monthly
Rider:(2)
Minimum charge		$0.00002 per $1,000 of NAR	$0.00001 per $1,000 of NAR
Maximum charge		$83.33 per $1,000 of NAR	$5.57 per $1,000 of NAR
Charge for representative		$0.002 per $1,000 of NAR	$0.0003 per $1,000 of NAR
insured persons
Overloan Protection Rider:(3)	At exercise of benefit
Minimum charge		0.04%	0.04%
Maximum charge		8.00%	8.00%

(1)	If the premium received in the first policy year is less than the Target Premium, the premium received in the second policy year will be treated as if received in the first policy year until premiums received equal the Target Premium.
(2)	The charge for this rider is determined by multiplying the amount of insurance for which we are at risk (the net amount at risk or “NAR”) by the applicable cost of insurance rate. The rates vary widely depending upon the length of time the policy has been in effect, the insurance risk characteristics of the insured persons and (generally) the gender of the insured persons. The “minimum” guaranteed rates shown in the table are the rates in the first policy year for a policy issued to cover two 20 year old female standard non-smoker underwriting risks. The “minimum” current rates shown in the table are the rates in the first policy year for a policy issued to cover two 20 year old female super preferred non-smoker underwriting risks. The “maximum” guaranteed and current rates shown in the table are the rates in the first policy year for two 90 year old male substandard smoker underwriting risks. The “representative insured persons” guaranteed and current rates shown in the table refer to a 55 year old male standard non-smoker underwriting risk and a 52 year old female standard non-smoker underwriting risk. The charges shown in the table may not be particularly relevant to your current situation. For more information about the cost of insurance rates, talk to your John Hancock USA representative.
(3)	The charge for this rider is determined as a percentage of unloaned account value. The rates vary by the attained age of the younger insured person at the time of exercise. The rates also differ according to the tax qualification test elected at issue. The guaranteed minimum rate for the guideline premium test is .04% (currently .04%) and the guaranteed maximum rate is 2.50% (currently (2.50%). The guaranteed minimum rate for the cash value accumulation test is .04% (currently .04%) and the guaranteed maximum rate is 8.00% (currently 8.00%). The minimum rate shown in the table is for the younger insured person who has reached or would have reached age 120 and either the guideline premium test or the cash value accumulation test has been elected. The maximum rate shown is for the younger insured person who has reached or would have reached at 75 and the cash value accumulation test has been elected.

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The next table describes the minimum and maximum portfolio level fees and expenses charged by any of the portfolios underlying a variable investment option offered through this prospectus, expressed as a percentage of average net assets (rounded to two decimal places). These expenses are deducted from portfolio assets.

Total Annual Portfolio Operating Expenses	Minimum		Maximum
Range of expenses, including management fees, distribution and/
	0.49	%	1.57	%
or service (12b-1) fees, and other expenses

The next table describes the fees and expenses for each portfolio underlying a variable investment option offered through this prospectus. None of the portfolios charge a sales load or surrender fee. The fees and expenses do not reflect the fees and expenses of any variable insurance contract or qualified plan that may use the portfolio as its underlying investment medium. Except for the American Asset Allocation, American International, American Growth, American Growth-Income, American Blue Chip Income and Growth, American Bond and PIMCO VIT All Asset portfolios, all of the portfolios shown in the table are NAV class shares that are not subject to Rule 12b-1 fees. Except as indicated in the footnotes appearing at the end of the table, the expense ratios are based upon the portfolio’s actual expenses for the year ended December 31, 2007.

Portfolio Annual Expenses

(as a percentage of portfolio average net assets, rounded to two decimal places)

							Acquired		Total		Contractual		Net
	Management		12b-1		Other		Fund Fees		Operating		Expense		Operating
Portfolio	Fees		Fees		Expenses		and Expenses		Expenses	1	Reimbursement		Expenses
500 Index B2	0.46	%	0.00	%	0.03	%	0.00	%	0.49	%	0.24	%	0.25	%
Active Bond3	0.60	%	0.00	%	0.03	%	0.00	%	0.63	%	0.00	%	0.63	%
All Cap Core3	0.77	%	0.00	%	0.04	%	0.00	%	0.81	%	0.00	%	0.81	%
All Cap Growth3	0.85	%	0.00	%	0.05	%	0.00	%	0.90	%	0.00	%	0.90	%
All Cap Value3	0.83	%	0.00	%	0.02	%	0.00	%	0.85	%	0.00	%	0.85	%
American Asset Allocation4, 5, 6	0.31	%	0.60	%	0.05	%	0.00	%	0.96	%	0.01	%	0.95	%
American Blue Chip Income and
Growth4	0.41	%	0.60	%	0.04	%	0.00	%	1.05	%	0.00	%	1.05	%
American Bond4, 5	0.40	%	0.60	%	0.03	%	0.00	%	1.03	%	0.00	%	1.03	%
American Growth4	0.32	%	0.60	%	0.03	%	0.00	%	0.95	%	0.00	%	0.95	%
American Growth-Income4	0.26	%	0.60	%	0.03	%	0.00	%	0.89	%	0.00	%	0.89	%
American International4	0.49	%	0.60	%	0.05	%	0.00	%	1.14	%	0.00	%	1.14	%
Blue Chip Growth3, 7	0.81	%	0.00	%	0.02	%	0.00	%	0.83	%	0.00	%	0.83	%
Capital Appreciation3	0.73	%	0.00	%	0.04	%	0.00	%	0.77	%	0.00	%	0.77	%
Capital Appreciation Value3, 6	0.85	%	0.00	%	0.11	%	0.00	%	0.96	%	0.00	%	0.96	%
Classic Value3	0.80	%	0.00	%	0.07	%	0.00	%	0.87	%	0.00	%	0.87	%
Core Allocation Plus3, 6	0.92	%	0.00	%	0.14	%	0.00	%	1.06	%	0.00	%	1.06	%
Core Bond3	0.64	%	0.00	%	0.11	%	0.00	%	0.75	%	0.01	%	0.74	%
Core Equity3	0.77	%	0.00	%	0.04	%	0.00	%	0.81	%	0.00	%	0.81	%
Disciplined Diversification3, 6, 8	0.80	%	0.00	%	0.14	%	0.00	%	0.94	%	0.24	%	0.70	%
Emerging Growth3	0.80	%	0.00	%	0.17	%	0.00	%	0.97	%	0.00	%	0.97	%
Emerging Small Company3	0.97	%	0.00	%	0.05	%	0.00	%	1.02	%	0.00	%	1.02	%
Equity-Income3, 7	0.81	%	0.00	%	0.03	%	0.00	%	0.84	%	0.00	%	0.84	%
Financial Services3	0.81	%	0.00	%	0.05	%	0.00	%	0.86	%	0.00	%	0.86	%
Franklin Templeton Founding 6, 9	0.05	%	0.00	%	0.03	%	0.86	%	0.94	%	0.05	%	0.89	%
Allocation
Fundamental Value3	0.76	%	0.00	%	0.04	%	0.00	%	0.80	%	0.00	%	0.80	%
Global3, 10, 11, 12	0.81	%	0.00	%	0.11	%	0.00	%	0.92	%	0.01	%	0.91	%
Global Allocation3	0.85	%	0.00	%	0.13	%	0.05	%	1.03	%	0.00	%	1.03	%
Global Bond3	0.70	%	0.00	%	0.11	%	0.00	%	0.81	%	0.00	%	0.81	%
Global Real Estate3	0.93	%	0.00	%	0.13	%	0.00	%	1.06	%	0.00	%	1.06	%
Health Sciences3, 7	1.05	%	0.00	%	0.09	%	0.00	%	1.14	%	0.00	%	1.14	%

10

							Acquired		Total		Contractual		Net
	Management		12b-1		Other		Fund Fees		Operating		Expense		Operating
Portfolio	Fees		Fees		Expenses		and Expenses		Expenses	1	Reimbursement		Expenses
High Yield3	0.66	%	0.00	%	0.04	%	0.00	%	0.70	%	0.00	%	0.70	%
Income and Value3	0.80	%	0.00	%	0.06	%	0.00	%	0.86	%	0.00	%	0.86	%
Index Allocation6, 13	0.05	%	0.00	%	0.03	%	0.53	%	0.61	%	0.06	%	0.55	%
International Core3	0.89	%	0.00	%	0.13	%	0.00	%	1.02	%	0.00	%	1.02	%
International Equity Index B2	0.53	%	0.00	%	0.04	%	0.01	%	0.58	%	0.23	%	0.35	%
International Opportunities3	0.87	%	0.00	%	0.12	%	0.00	%	0.99	%	0.00	%	0.99	%
International Small Cap3	0.91	%	0.00	%	0.21	%	0.00	%	1.12	%	0.00	%	1.12	%
International Value3, 10	0.81	%	0.00	%	0.16	%	0.00	%	0.97	%	0.02	%	0.95	%
Investment Quality Bond3	0.59	%	0.00	%	0.07	%	0.00	%	0.66	%	0.00	%	0.66	%
Large Cap3	0.71	%	0.00	%	0.07	%	0.00	%	0.78	%	0.01	%	0.77	%
Large Cap Value3	0.81	%	0.00	%	0.04	%	0.00	%	0.85	%	0.00	%	0.85	%
Lifestyle Aggressive	0.04	%	0.00	%	0.02	%	0.87	%	0.93	%	0.00	%	0.93	%
Lifestyle Balanced	0.04	%	0.00	%	0.02	%	0.82	%	0.88	%	0.00	%	0.88	%
Lifestyle Conservative	0.04	%	0.00	%	0.02	%	0.76	%	0.82	%	0.00	%	0.82	%
Lifestyle Growth	0.04	%	0.00	%	0.02	%	0.85	%	0.91	%	0.00	%	0.91	%
Lifestyle Moderate	0.04	%	0.00	%	0.02	%	0.80	%	0.86	%	0.00	%	0.86	%
Managed3	0.69	%	0.00	%	0.02	%	0.00	%	0.71	%	0.00	%	0.71	%
Mid Cap Index3, 14	0.47	%	0.00	%	0.03	%	0.00	%	0.50	%	0.01	%	0.49	%
Mid Cap Intersection3	0.87	%	0.00	%	0.06	%	0.00	%	0.93	%	0.00	%	0.93	%
Mid Cap Stock3	0.84	%	0.00	%	0.05	%	0.00	%	0.89	%	0.01	%	0.88	%
Mid Cap Value3	0.85	%	0.00	%	0.05	%	0.00	%	0.90	%	0.00	%	0.90	%
Mid Value3, 7	0.97	%	0.00	%	0.07	%	0.00	%	1.04	%	0.00	%	1.04	%
Money Market B2	0.50	%	0.00	%	0.01	%	0.00	%	0.51	%	0.23	%	0.28	%
Natural Resources3	1.00	%	0.00	%	0.08	%	0.00	%	1.08	%	0.00	%	1.08	%
Optimized All Cap3	0.71	%	0.00	%	0.04	%	0.00	%	0.75	%	0.00	%	0.75	%
Optimized Value3	0.65	%	0.00	%	0.04	%	0.00	%	0.69	%	0.00	%	0.69	%
Overseas Equity3	0.97	%	0.00	%	0.14	%	0.00	%	1.11	%	0.00	%	1.11	%
Pacific Rim3	0.80	%	0.00	%	0.27	%	0.00	%	1.07	%	0.01	%	1.06	%
PIMCO VIT All Asset15	0.18	%	0.25	%	0.45	%	0.69	%	1.57	%	0.02	%	1.55	%
Real Estate Securities3	0.70	%	0.00	%	0.03	%	0.00	%	0.73	%	0.00	%	0.73	%
Real Return Bond3, 16, 17	0.68	%	0.00	%	0.06	%	0.00	%	0.74	%	0.00	%	0.74	%
Science and Technology3, 7	1.05	%	0.00	%	0.09	%	0.00	%	1.14	%	0.00	%	1.14	%
Short-Term Bond3	0.58	%	0.00	%	0.02	%	0.00	%	0.60	%	0.00	%	0.60	%
Small Cap3	0.85	%	0.00	%	0.06	%	0.01	%	0.92	%	0.00	%	0.92	%
Small Cap Growth3	1.07	%	0.00	%	0.06	%	0.00	%	1.13	%	0.01	%	1.12	%
Small Cap Index3, 14	0.48	%	0.00	%	0.03	%	0.00	%	0.51	%	0.00	%	0.51	%
Small Cap Opportunities3	0.99	%	0.00	%	0.04	%	0.00	%	1.03	%	0.00	%	1.03	%
Small Cap Value3	1.06	%	0.00	%	0.05	%	0.00	%	1.11	%	0.00	%	1.11	%
Small Company Value3, 7	1.02	%	0.00	%	0.04	%	0.00	%	1.06	%	0.00	%	1.06	%
Strategic Bond3	0.67	%	0.00	%	0.07	%	0.00	%	0.74	%	0.00	%	0.74	%
Strategic Income3	0.69	%	0.00	%	0.09	%	0.00	%	0.78	%	0.00	%	0.78	%
Total Bond Market B2	0.47	%	0.00	%	0.06	%	0.00	%	0.53	%	0.28	%	0.25	%
Total Return3, 11, 16	0.69	%	0.00	%	0.06	%	0.00	%	0.75	%	0.00	%	0.75	%
Total Stock Market Index3, 14	0.48	%	0.00	%	0.04	%	0.00	%	0.52	%	0.01	%	0.51	%
U.S. Core3	0.76	%	0.00	%	0.05	%	0.00	%	0.81	%	0.01	%	0.80	%
U.S. Government Securities3	0.61	%	0.00	%	0.07	%	0.00	%	0.68	%	0.00	%	0.68	%
U.S. High Yield Bond3	0.73	%	0.00	%	0.05	%	0.00	%	0.78	%	0.01	%	0.77	%
U.S Large Cap3	0.82	%	0.00	%	0.03	%	0.00	%	0.85	%	0.00	%	0.85	%

11

							Acquired		Total		Contractual		Net
	Management		12b-1		Other		Fund Fees		Operating		Expense		Operating
Portfolio	Fees		Fees		Expenses		and Expenses		Expenses	1	Reimbursement		Expenses
Utilities3	0.82	%	0.00	%	0.15	%	0.00	%	0.97	%	0.01	%	0.96	%
Value3	0.74	%	0.00	%	0.04	%	0.00	%	0.78	%	0.00	%	0.78	%
M Fund, Inc.
Brandes International Equity18	0.67	%	0.00	%	0.20	%	0.00	%	0.87	%	0.00	%	0.87	%
Business Opportunity Value18	0.63	%	0.00	%	0.24	%	0.00	%	0.87	%	0.00	%	0.87	%
Frontier Capital Appreciation18	0.90	%	0.00	%	0.16	%	0.00	%	1.06	%	0.00	%	1.06	%
Turner Core Growth18	0.45	%	0.00	%	0.18	%	0.00	%	0.63	%	0.00	%	0.63	%

¹Total Operating Expenses include fees and expenses incurred indirectly by a portfolio as a result of its investment in other investment companies (each an “Acquired Fund”). The Total Operating Expenses shown may not correlate to the portfolio’s ratio of expenses to average net assets shown in the financial highlights section in the prospectus for the portfolio, which does not include Acquired Fund fees and expenses. Acquired Fund fees and expenses are estimated, not actual, amounts based on the portfolio’s current fiscal year.

²John Hancock Trust (the “Trust”) sells shares of these portfolios only to certain variable life insurance and variable annuity separate accounts of ours and our affiliates. As reflected in the table, each portfolio is subject to an expense cap pursuant to an agreement between the Trust and John Hancock Investment Management Services, LLC (the “Adviser”). The expense cap is as follows: the Adviser has agreed to waive its advisory fee (or, if necessary, reimburse expenses of the portfolio) in an amount so that the rate of the portfolio’s Total Operating Expenses does not exceed its Net Operating Expenses as listed in the table above. A portfolio’s Total Operating Expenses includes all of its operating expenses including advisory fees and Rule 12b-1 fees, but excludes taxes, brokerage commissions, interest, litigation and indemnification expenses and extraordinary expenses of the portfolio not incurred in the ordinary course of the portfolio’s business. Under the agreement, the Adviser’s obligation to provide the expense cap with respect to a particular portfolio will remain in effect until May 1, 2009 and will terminate after that date only if the Trust, without the prior written consent of the Adviser, sells shares of the portfolio to (or has shares of the portfolio held by) any person other than the variable life insurance or variable annuity insurance separate accounts of ours or any of our affiliates that are specified in the agreement.

³Effective January 1, 2006, the Adviser has contractually agreed to waive its advisory fee for certain portfolios or otherwise reimburse the expenses of those portfolios. The reimbursement will equal, on an annualized basis, 0.02% of that portion of the aggregate net assets of all the participating portfolios that exceeds $50 billion. The amount of the reimbursement will be calculated daily and allocated among all the participating portfolios in proportion to the daily net assets of each portfolio. The reimbursement will remain in effect until May 1, 2009.

See the Trust prospectus for information on the participating portfolios.

⁴Capital Research Management Company (the adviser to the master fund for each of the Trust feeder funds) is voluntarily waiving a portion of its management fee. The fees shown do not reflect the waiver. See the financial highlights table in the American Funds’ prospectus or annual report for further information.

⁵The table reflects the fees and expenses of the master and feeder portfolios. The Adviser has contractually limited other expenses at the feeder portfolio level to 0.03% until May 1, 2010, and the table reflects this limit. Other portfolio level expenses consist of operating expenses of the portfolio, excluding advisor fees, 12b-1 fees, transfer agent fees, blue sky fees, taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of business.

⁶For portfolios that have not started operations or have had operations of less than six months as of December 31, 2007, expenses are based on estimates of expenses expected to be incurred over the next year.

⁷T. Rowe Price has voluntarily agreed to waive a portion of its subadvisory fee for certain portfolios. This waiver is based on the combined average daily net assets of these portfolios and the following funds of John Hancock Funds II: Blue Chip Growth, Equity-Income, Health Sciences, Science & Technology, Small Company Value, Spectrum Income and Real Estate Equity portfolios. Based on the combined average daily net assets of the portfolios, the percentage fee reduction (as a percentage of the subadvisory fee) as of November 1, 2006 is as follows: 0% for the first $750 million, 5% for the next $750 million, 7.5% for the next $1.5 billion, and 10% if over $3 billion. The Adviser has also voluntarily agreed to reduce the advisory fee for each portfolio by the amount that the subadvisory fee is reduced. This voluntary fee waiver may be terminated by T. Rowe Price or the Adviser. The fees shown do not reflect this waiver. For more information, please see the prospectus for the underlying portfolios.

⁸The Adviser has contractually agreed to reimburse expenses of the portfolio that exceed 0.70% of the average annual net assets of the portfolio. Expenses include all expenses of the portfolio except Rule 12b-1 fees, class specific expenses such as blue sky and transfer agency fees, portfolio brokerage, interest, and litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of business. This contractual reimbursement will be in effect until May 1, 2010 and thereafter until terminated by the Adviser on notice to the Trust.

⁹The Adviser has contractually agreed to limit portfolio expenses to 0.025% until May 1, 2010. Portfolio expenses includes advisory fee and other operating expenses of the portfolio, but excludes 12b-1 fees, underlying portfolio expenses, taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of business.

12

¹⁰The Adviser has contractually agreed to waive its advisory fees so that the amount retained by the Adviser after payment of the subadvisory fees for the portfolio does not exceed 0.45% of the portfolio’s average net assets. This advisory fee waiver will remain in place until May 1, 2010.

¹¹The advisory fee rate shown reflects the tier schedule that is currently in place as described in the prospectus for the underlying portfolio.

¹²The Adviser has contractually agreed to reduce its advisory fee for a class of shares of a portfolio in an amount equal to the amount by which the expenses of such class of the portfolio exceed the expense limit (as a percentage of the average annual net assets of the portfolio attributable to the class) of 0.15% and, if necessary, to remit to that class of the portfolio an amount necessary to ensure that such expenses do not exceed that expense limit. “Expenses” means all the expenses of a class of a portfolio excluding advisory fees, Rule 12b-1 fees, transfer agency fees and service fees, blue sky fees, taxes, portfolio brokerage commissions, interest, and litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Trust’s business. This contractual reimbursement will be in effect until May 1, 2010 and thereafter until terminated by the Adviser on notice to the portfolio.

¹³The Adviser has contractually agreed to reimburse expenses of the portfolio that exceed 0.02% of the average annual net assets of the portfolio. Expenses includes all expenses of the portfolio except Rule 12b-1 fees, underlying portfolio expenses, class specific expenses such as blue sky and transfer agency fees, portfolio brokerage, interest, and litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of business. This reimbursement may be terminated any time after May 1, 2010.

¹⁴The Adviser has voluntarily agreed to reduce its advisory fee for a class of shares of the portfolio in an amount equal to the amount by which the expenses of such class of the portfolio exceed the expense limit (as a percentage of the average annual net assets of the portfolio attributable to the class) of 0.05% and, if necessary, to remit to that class of the portfolio an amount necessary to ensure that such expenses do not exceed that expense limit. “Expenses” means all the expenses of a class of a portfolio excluding advisory fees, Rule 12b-1 fees, transfer agency fees and service fees, blue sky fees, taxes, portfolio brokerage commissions, interest, and litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Trust’s business. This expense limitation will continue in effect unless otherwise terminated by the Adviser upon notice to the Trust. This voluntary expense limitation may be terminated at any time.

¹⁵Other expenses for the PIMCO VIT All Asset portfolio reflect an administrative fee of 0.25% and a service fee of 0.20%. Acquired Fund fees and expenses for the portfolio are based upon an allocation of the portfolio’s assets among the underlying portfolios and upon the total annual operating expenses of the Institutional Class shares of these underlying portfolios. Acquired Fund fees and expenses will vary with changes in the expenses of the underlying portfolios, as well as allocation of the portfolio’s assets, and may be higher or lower than those shown above. For a listing of the expenses associated with each underlying portfolio for the most recent fiscal year, please refer to the prospectus for the underlying portfolio. Pacific Investment Management Company LLC (“PIMCO”), the adviser to the portfolio, has contractually agreed for the current fiscal year to reduce its advisory fee to the extent that the underlying portfolio expenses attributable to advisory and administrative fees exceed 0.64% of the total assets invested in the underlying portfolios. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. This expense reduction is implemented based on a calculation of Acquired Fund fees and expenses shown in the table. For more information, please refer to the prospectus for the underlying portfolio.

¹⁶Other Expenses reflect the estimate of amounts to be paid as substitute dividend expenses on securities borrowed for the settlement of short sales.

¹⁷The advisory fees were changed during the previous fiscal year. Rates shown reflect what the advisory fees would have been during the fiscal year 2007 had the new rates been in effect for the whole year.

¹⁸For the period May 1, 2008 to April 30, 2009, M Financial Investment Advisers, Inc., the adviser to the portfolio, has contractually agreed to reimburse the portfolio for any expenses (other than advisory fees, brokerage or other portfolio transaction expenses or expenses for litigation, indemnification, taxes or other extraordinary expenses) to the extent that such expenses exceed 0.25% of a portfolio’s annualized daily average net assets.

13

DETAILED INFORMATION

This section of the prospectus provides additional detailed information that is not contained in the Summary of Benefits and Risks section.

Table of Investment Options and Investment Subadvisers

When you select a Separate Account investment option, we invest your money in shares of a corresponding portfolio of the John Hancock Trust (the “Trust” or “JHT”) (or the PIMCO Variable Insurance Trust (the “PIMCO Trust”) or M Fund, Inc. (the “M Fund”)), and hold the shares in a subaccount of the Separate Account. The Fee Tables show 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 net assets for 2007, 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 policies 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 will earn on any Separate Account investment options you select.

The John Hancock Trust, the PIMCO Trust, and the M Fund are so-called “series” type mutual funds and each is registered under the Investment Company Act of 1940 (“1940 Act”) as an open-end management investment company. John Hancock Investment Management Services, LLC (“JHIMS”) provides investment advisory services to the Trust and receives investment management fees for doing so. JHIMS pays a portion of its investment management fees to other firms that manage the Trust’s portfolios. We are affiliated with JHIMS and may indirectly benefit from any investment management fees JHIMS retains. The All Asset portfolio of the PIMCO Trust receives investment advisory services from Pacific Investment Management Company LLC (“PIMCO”) and pays investment management fees to PIMCO.

Each of the American Asset Allocation, American Blue Chip Income and Growth, American Bond, American Growth- Income, American Growth, and American International portfolios invests in Series 1 shares of the corresponding investment portfolio of the Trust and are subject to a 0.60% 12b-1 fee. The American Asset Allocation, American Growth, American International, American Growth-Income, American Blue Chip Income and Growth and American Bond portfolios operate as “feeder funds,” which means that the portfolio does not buy investment securities directly. Instead, it invests in a “master fund” which in turn purchases investment securities. Each of the American feeder fund portfolios has the same investment objective and limitations as its master fund. The prospectus for the American Fund master fund is included with the prospectuses for the underlying funds. We pay American Funds Distributors, Inc., the principal underwriter for the American Funds Insurance Series, a percentage of some or all of the amounts allocated to the “American” portfolios of the Trust for the marketing support services it provides.

The Brandes International Equity, Turner Core Growth, Frontier Capital Appreciation and Business Opportunity Value portfolios are series of the M Fund, an open-end management investment company registered under the 1940 Act. The assets of the Brandes International Equity, Turner Core Growth, Frontier Capital Appreciation and Business Opportunity Value subaccounts are invested in the corresponding portfolios of the M Fund. M Financial Investment Advisers, Inc. (“M Financial”) is the investment adviser for all portfolios of the M Fund. The entities shown in the table below as “Portfolio Managers” of the M Fund portfolios are sub-investment advisers selected by M Financial and are the entities that manage the portfolio’s assets.

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 that are deducted from a portfolio’s assets for the services we or our affiliates provide to that portfolio. These compensation payments do not, however, result in any charge to you in addition to what is shown in the Fee Tables.

The following table provides a general description of the portfolios that underlie the variable investment options we make available under the policy. You bear the investment risk of any portfolio you choose as an investment option for your policy. 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. You should read the portfolio’s prospectus carefully before investing in the corresponding variable investment option.

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The investment options in the Separate Account are not publicly traded mutual funds. The investment options are only available to you as investment options in the policies, 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 investment options also may be available through participation in certain qualified pension or retirement plans. The portfolios’ investment advisers and managers (i.e. subadvisers) 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 investment option 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 investment options of our Separate Account.

The portfolios available under the policies are as described in the following table:

Portfolio	Portfolio Manager	Investment Objective and Strategy
500 Index B	MFC Global Investment Management (U.S.A.) Limited	To approximate the aggregate total return of a broad-based U.S. domestic equity market index. Under normal market conditions, the portfolio seeks to approximate the aggregate total return of a broad based U.S. domestic equity market index. To pursue this goal, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in the common stocks that are included in the S&P 500 Index* and securities (which may or may not be included in the S&P 500 Index) that the subadviser believes as a group will behave in a manner similar to the index. The subadviser may determine that the portfolio’s investments in certain instruments, such as index futures, total return swaps and ETFs have similar economic characteristics to securities that are in the S&P 500 Index.
Active Bond	Declaration Management & Research LLC & MFC Global Management (U.S.), LLC	To seek income and capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) in a diversified mix of debt securities and instruments.
All Cap Core	Deutsche Investment Management Americas Inc.	To seek long-term growth of capital. Under normal market conditions, the portfolio invests in common stocks and other equity securities within all asset classes (small-, mid- and large-capitalization) of those within the Russell 3000 Index.*
All Cap Growth	Invesco Aim Capital Management, Inc.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests its assets principally in common stocks of companies that the subadviser believes likely to benefit from new or innovative products, services or processes as well as those that have experienced above-average, long-term growth in earnings and have excellent prospects for future growth. Any income received from securities held by the portfolio will be incidental.
All Cap Value	Lord, Abbett & Co. LLC	To seek capital appreciation. Under normal market conditions, the portfolio invests in equity securities of U.S. and multinational companies in all capitalization ranges that the subadviser believes are undervalued. The portfolio will invest at least 50% of its net assets in equity securities of large, seasoned companies with market capitalizations at the time of purchase that fall within the market capitalization range of the Russell 1000 Index.* This range varies daily. The portfolio will invest the remainder of its assets in mid-sized and small company securities.
American Asset Allocation	Capital Research and Management Company (adviser to the American Funds Insurance Series)	To seek to provide high total return (including income and capital gains) consistent with preservation of capital over the long term. The portfolio invests all of its assets in the master fund, Class 1 shares of the Asset Allocation portfolio, a series of American Funds Insurance Series. The portfolio invests in a diversified portfolio of common stocks and other equity securities, bonds and other intermediate and long-term debt securities, and money market instruments. In addition, the portfolio may invest up to 25% of its debt assets in lower quality debt securities (rated Ba or below by Moody’s and BB or below by S&P or unrated but determined to be of equivalent quality). Such securities are sometimes referred to as junk bonds. The portfolio is designed for investors seeking above-average total return.

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Portfolio	Portfolio Manager	Investment Objective and Strategy
American Blue Chip Income and Growth	Capital Research and Management Company (adviser to the American Funds Insurance Series)	To seek to produce income exceeding the average yield on U.S. stocks generally (as represented by the average yield on the S&P 500 Index*) and to provide an opportunity for growth of principal consistent with sound common stock investing. The portfolio invests all of its assets in the master fund, Class 1 shares of the Blue Chip Income and Growth portfolio, a series of American Funds Insurance Series. The Blue Chip Income and Growth portfolio invests primarily in common stocks of larger, more established companies based in the U.S. with market capitalizations of $4 billion and above. The Blue Chip Income and Growth portfolio may also invest up to 10% of its assets in common stocks of larger, non-U.S. companies, so long as they are listed or traded in the U.S. The Blue Chip Income and Growth portfolio will invest, under normal market conditions, at least 90% of its assets in equity securities.
American Bond	Capital Research and Management Company (adviser to the American Funds Insurance Series)	To seek to maximize current income and preserve capital. The portfolio invests all of its assets in the master fund, Class 1 shares of the Bond portfolio, a series of American Funds Insurance Series. The Bond portfolio normally invests at least 80% of its net assets (plus borrowing for investment purposes) in bonds. The Bond portfolio will invest at least 65% of its assets in investment-grade debt securities (including cash and cash equivalents) and may invest up to 35% of its assets in bonds that are rated Ba or below by Moody’s and BB or below by S&P or that are unrated but determined to be of equivalent quality (so called junk bonds). The Bond portfolio may invest in bonds of issuers domiciled outside the U.S.
American Growth	Capital Research and Management Company (adviser to the American Funds Insurance Series)	To seek to make the shareholders’ investment grow. The portfolio invests all of its assets in the master fund, Class 1 shares of the Growth portfolio, a series of American Funds Insurance Series. The Growth portfolio invests primarily in common stocks of companies that appear to offer superior opportunities for growth of capital. The Growth portfolio may also invest up to 15% of its assets in equity securities of issuers domiciled outside the U.S. and Canada.
American Growth-Income	Capital Research and Management Company (adviser to the American Funds Insurance Series)	To seek to make the shareholders’ investments grow and to provide the shareholder with income over time. The portfolio invests all of its assets in the master fund, Class 1 shares of the Growth-Income portfolio, a series of American Funds Insurance Series. The Growth-Income portfolio invests primarily in common stocks or other securities which demonstrate the potential for appreciation and/or dividends. The Growth-Income portfolio may invest a portion of its assets in securities of issuers domiciled outside the U.S. and not included in the S&P 500 Index.*
American International	Capital Research and Management Company (adviser to the American Funds Insurance Series)	To seek to make the shareholders’ investment grow. The portfolio invests all of its assets in the master fund, Class 1 shares of the International portfolio, a series of American Funds Insurance Series. The International portfolio invests primarily in common stocks of companies located outside the U.S.
Blue Chip Growth	T. Rowe Price Associates, Inc.	To provide long-term growth of capital. Current income is a secondary objective. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) in the common stocks of large and medium-sized blue chip growth companies. These are firms that, in the subadviser’s view, are well established in their industries and have the potential for above-average earnings growth.
Capital Appreciation	Jennison Associates LLC	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 65% of its total assets in equity and equity-related securities of companies that, at the time of investment, exceed $1 billion in market capitalization and that the subadviser believes have above-average growth prospects. These companies are generally medium- to large-capitalization companies.
Capital Appreciation Value	T. Rowe Price Associates, Inc.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests primarily in common stocks of established U.S. companies that have above-average potential for capital growth. Common stocks typically constitute at least 50% of the portfolio’s total assets. The remaining assets are generally invested in other securities, including convertible securities, corporate and government debt, foreign securities, futures and options.

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Portfolio	Portfolio Manager	Investment Objective and Strategy
Classic Value	Pzena Investment Management, LLC.	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its assets in domestic equity securities. The portfolio may invest in securities of foreign issuers, but will generally limit such investments to American Depositary Receipts and foreign securities listed and traded on a U.S. exchange or the NASDAQ market.
Core Allocation Plus	Wellington Management Company, LLP	To seek total return, consisting of long-term capital appreciation and current income. Under normal market conditions, the portfolio invests in equity and fixed income securities of issuers located within and outside the U.S. The portfolio will allocate its assets between fixed income securities, which may include investment grade and below investment grade debt securities with maturities that range from short to longer term, and equity securities based upon the subadviser’s targeted asset mix, which may change over time.
Core Bond	Wells Capital Management, Incorporated	To seek total return consisting of income and capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in a broad range of investment grade debt securities, including U.S. Government obligations, corporate bonds, mortgage-backed and other asset-backed securities and money market instruments.
Core Equity	Legg Mason Capital Management, Inc.	To seek long-term capital growth. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities that, in the subadviser’s opinion, offer the potential for capital growth.
Disciplined Diversification	Dimensional Fund Advisers LP	To seek total return consisting of capital appreciation and current income. Under normal market conditions, the portfolio invests primarily in equity securities and fixed income securities of domestic and international issuers, including equities of issuers in emerging markets, in accordance with the following range of allocations:
		Target Allocation	Range of Allocations
		Equity Securities: 70%	65% – 75%
		Fixed Income Securities: 30%	25% – 35%
Emerging Growth	MFC Global Investment Management (U.S.), LLC	To seek superior long-term rates of return through capital appreciation. Under normal market conditions, the portfolio seeks to achieve its objective by investing primarily in high quality securities (those with a proven track record of performance and/or growth) and convertible instruments of small-capitalization U.S. companies.
Emerging Small Company	RCM Capital Management LLC	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus borrowings for investment purposes) at the time of investment in securities of small-capitalization companies. The subadviser defines securities of small-capitalization companies as common stocks and other equity securities of U.S. companies that have a market capitalization that does not exceed the highest market capitalization of any company contained in either the Russell 2000 Index* or the S&P SmallCap 600 Index.*
Equity-Income	T. Rowe Price Associates, Inc.	To provide substantial dividend income and also long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) in equity securities, with at least 65% in common stocks of well established companies paying above-average dividends.
Financial Services	Davis Selected Advisers, L.P.	To seek growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in companies that, at the time of investment, are principally engaged in financial services. The portfolio invests primarily in common stocks of financial services companies.
Franklin Templeton Founding Allocation	MFC Global Investment Management (U.S.A.) Limited	To seek long-term growth of capital. The portfolio invests in other portfolios and in other investment companies as well as other types of investments. The portfolio currently invests primarily in three underlying portfolios: the Global Trust, Income Trust and Mutual Shares Trust, as described in the JHT prospectus. The portfolio may purchase any portfolios except other JHT funds of funds and the American feeder funds. When purchasing shares of other JHT funds, the Franklin Templeton Founding Allocation Trust only purchases NAV shares (which are not subject to Rule 12b-1 fees).

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Portfolio	Portfolio Manager	Investment Objective and Strategy
Fundamental Value	Davis Selected Advisers, L.P.	To seek growth of capital. Under normal market conditions, the portfolio invests primarily in common stocks of U.S. companies with market capitalizations of at least $10 billion. The portfolio may also invest in companies with smaller capitalizations.
Global	Templeton Global Advisors Limited	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests primarily in the equity securities of companies located throughout the world, including emerging markets.
Global Allocation	UBS Global Asset Management (Americas) Inc.	To seek total return, consisting of long-term capital appreciation and current income. Under normal market conditions, the portfolio invests in equity and fixed income securities of issuers located within and outside the U.S. The portfolio will allocate its assets between fixed income securities and equity securities.
Global Bond	Pacific Investment Management Company LLC	To seek maximum total return, consistent with preservation of capital and prudent investment management. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income instruments, which may be represented by futures contracts (including related options) with respect to such securities, and options on such securities. These fixed income instruments may be denominated in non-U.S. currencies or in U.S. dollars, which may be represented by forwards or derivatives, such as options, future contracts, or swap agreements.
Global Real Estate	Deutsche Investment Management Americas Inc.	To seek a combination of long-term capital appreciation and current income. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of U.S. REITs, foreign entities with tax-transparent structures similar to REITs and U.S. and foreign real estate operating companies. Equity securities include common stock, preferred stock and securities convertible into common stock. The portfolio will be invested in issuers located in at least three different countries, including the U.S.
Health Sciences	T. Rowe Price Associates, Inc.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in common stocks of companies engaged, at the time of investment, in the research, development, production, or distribution of products or services related to health care, medicine, or the life sciences (collectively termed “health sciences”).
High Yield	Western Asset Management Company	To realize an above-average total return over a market cycle of three to five years, consistent with reasonable risk. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in high yield securities, including corporate bonds, preferred stocks, U.S. Government and foreign securities, mortgage-backed securities, loan assignments or participations and convertible securities which have the following ratings (or, if unrated, are considered by the subadviser to be of equivalent quality):
		Moody’s	Ba through C
		Standard & Poor’s	BB through D
Income & Value	Capital Guardian Trust Company	To seek the balanced accomplishment of conservation of principal and long-term growth of capital and income. Under normal market conditions, the portfolio invests its assets in both equity and fixed income securities. The subadviser has full discretion to determine the allocation of assets between equity and fixed income securities. Generally, between 25% and 75% of the portfolio’s total assets will be invested in fixed income securities unless the subadviser determines that some other proportion would better serve the portfolio’s investment objective.
Index Allocation	MFC Global Investment Management (U.S.A.) Limited	To seek long term growth of capital. Current income is also a consideration. Under normal market conditions, the portfolio invests in a number of the other index portfolios of JHT. The portfolio invests approximately 70% of its total assets in underlying portfolios which invest primarily in equity securities and approximately 30% of its total assets in underlying portfolios which invest primarily in fixed income securities.

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Portfolio	Portfolio Manager	Investment Objective and Strategy
International Core	Grantham, Mayo, Van Otterloo & Co. LLC	To seek high total return. Under normal market conditions, the portfolio invests at least 80% of its total assets in equity investments. The portfolio typically invests in equity investments in companies from developed markets outside the U.S.
International Equity Index B	SSgA Funds Management, Inc.	To seek to track the performance of a broad-based equity index of foreign companies primarily in developed countries and, to a lesser extent, in emerging markets. Under normal market conditions, the portfolio invests at least 80% of its assets in securities listed in the Morgan Stanley Capital International All Country World Excluding U.S. Index.*
International Opportunities	Marsico Capital Management, LLC	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 65% of its total assets in common stocks of foreign companies that are selected for their long-term growth potential. The portfolio may invest in companies of any size throughout the world. The portfolio invests in issuers from at least three different countries not including the U.S. The portfolio may invest in common stocks of companies economically tied to emerging markets. Some issuers of securities in the portfolio may be based in or economically tied to the U.S.
International Small Cap	Franklin Templeton Investment Corp.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) in investments of small companies outside the U.S., including emerging markets, which have total stock market capitalization or annual revenues of $4 billion or less.
International Value	Templeton Investment Counsel, LLC	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 65% of its total assets in equity securities of companies located outside the U.S., including in emerging markets.
Investment Quality Bond	Wellington Management Company, LLP	To provide a high level of current income consistent with the maintenance of principal and liquidity. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in bonds rated investment grade at the time of investment. The portfolio will tend to focus on corporate bonds and U.S. Government bonds with intermediate to longer term maturities.
Large Cap	UBS Global Asset Management (Americas) Inc.	To seek to maximize total return, consisting of capital appreciation and current income. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of U.S. large-capitalization companies. The portfolio defines large-capitalization companies as those with a market capitalization range, at the time of investment, equal to that of the portfolio’s benchmark, the Russell 1000 Index.*
Large Cap Value	BlackRock Investment Management, LLC	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) in equity securities of large-capitalization companies selected from those that are, at the time of purchase, included in the Russell 1000 Value Index.* The portfolio will seek to achieve its investment objective by investing primarily in a diversified portfolio of equity securities of large-capitalization companies located in the U.S. The portfolio will seek to outperform the Russell 1000 Value Index by investing in equity securities that the subadviser believes are selling at or below normal valuations.
Lifestyle Aggressive	MFC Global Investment Management (U.S.A.) Limited	To seek long-term growth of capital. Current income is not a consideration. The portfolio operates as a fund of funds and invests 100% of its assets in underlying portfolios which invest primarily in equity securities.
Lifestyle Balanced	MFC Global Investment Management (U.S.A.) Limited	To seek 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 invests approximately 40% of its assets in underlying portfolios which invest primarily in fixed income securities and approximately 60% in underlying portfolios which invest primarily in equity securities.
Lifestyle Conservative	MFC Global Investment Management (U.S.A.) Limited	To seek a high level of current income with some consideration given to growth of capital. The portfolio operates as a fund of funds and invests approximately 80% of its assets in underlying portfolios which invest primarily in fixed income securities and approximately 20% in underlying portfolios which invest primarily in equity securities.

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Portfolio	Portfolio Manager	Investment Objective and Strategy
Lifestyle Growth	MFC Global Investment Management (U.S.A.) Limited	To seek long-term growth of capital. Current income is also a consideration. The portfolio operates as a fund of funds and invests approximately 20% of its assets in underlying portfolios which invest primarily in fixed income securities and approximately 80% in underlying portfolios which invest primarily in equity securities.
Lifestyle Moderate	MFC Global Investment Management (U.S.A.) Limited	To seek 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 invests approximately 60% of its assets in underlying portfolios which invest primarily in fixed income securities and approximately 40% in underlying portfolios which invest primarily in equity securities.
Managed	Grantham, Mayo, Van Otterloo & Co. LLC & Declaration Management & Research LLC	To seek income and long-term capital appreciation. Under normal market conditions, the portfolio invests primarily in a diversified mix of common stocks of large-capitalization U.S. companies and bonds with an overall intermediate term average maturity.
Mid Cap Index	MFC Global Investment Management (U.S.A.) Limited	To seek to approximate the aggregate total return of a mid-capitalization U.S. domestic equity market index. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in the common stocks that are included in the S&P MidCap 400 Index* and securities (which may or may not be included in the S&P MidCap 400 Index) that the subadviser believes as a group will behave in a manner similar to the index.
Mid Cap Intersection	Wellington Management Company, LLP	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of medium-sized companies with significant capital appreciation potential. For the purposes of the portfolio, medium-sized companies are those with market capitalizations, at the time of investment, within the market capitalization range of companies represented in either the Russell MidCap Index* or the S&P MidCap 400 Index.*
Mid Cap Stock	Wellington Management Company, LLP	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of medium-sized companies with significant capital appreciation potential. For the portfolio, “medium-sized companies” are those with market capitalizations within the collective market capitalization range of companies represented in either the Russell MidCap Index* or the S&P MidCap 400 Index.*
Mid Cap Value	Lord, Abbett & Co. LLC	To seek capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in mid-sized companies, with market capitalizations within the market capitalization range of companies in the Russell MidCap Index.* This range varies daily. The portfolio invests 65% of its total assets in equity securities which it believes to be undervalued in the marketplace.
Mid Value	T. Rowe Price Associates, Inc.	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets in companies with market capitalizations that are within the Russell MidCap Index* or the Russell MidCap Value Index.* The portfolio invests in a diversified mix of common stocks of mid-size U.S. companies that are believed to be undervalued by various measures and offer good prospects for capital appreciation.
Money Market B	MFC Global Investment Management (U.S.A.) Limited	To obtain maximum current income consistent with preservation of principal and liquidity. Under normal market conditions, the portfolio invests in high quality, U.S. dollar denominated money market instruments.
Natural Resources	Wellington Management Company, LLP	To seek long-term total return. Under normal market conditions, the portfolio will invest at least 80% of its net assets (plus any borrowings for investment purposes) in equity and equity-related securities of natural resource-related companies worldwide, including emerging markets. Natural resource-related companies include companies that own or develop energy, metals, forest products and other natural resources, or supply goods and services to such companies.

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Portfolio	Portfolio Manager	Investment Objective and Strategy
Optimized All Cap	MFC Global Investment Management (U.S.A.) Limited	To seek long-term growth of capital. Under normal market conditions the portfolio invests at least 65% of its total assets in equity securities of U.S. companies. The portfolio will generally focus on equity securities of U.S. companies across the three market capitalization ranges of large, mid and small.
Optimized Value	MFC Global Investment Management (U.S.A.) Limited	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 65% of its total assets in equity securities of U.S. companies with the potential for long-term growth of capital. The portfolio invests in U.S. companies with a market capitalization range, at the time of investment, equal to that of the portfolio’s benchmark, the Russell 1000 Value Index.*
Overseas Equity	Capital Guardian Trust Company	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of a diversified mix of large established and medium sized foreign companies located primarily in developed countries (outside of the U.S.) and, to a lesser extent, in emerging markets.
Pacific Rim	MFC Global Investment Management (U.S.A.) Limited	To achieve long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in common stocks and equity-related securities of established, larger-capitalization non-U.S. companies located in the Pacific Rim region, including emerging markets that have attractive long-term prospects for growth of capital. Current income from dividends and interest will not be an important consideration in the selection of portfolio securities.
PIMCO VIT All Asset Portfolio (a series of the PIMCO Variable Insurance Trust) (only Class M is available for sale)	Pacific Investment Management Company LLC	To seek maximum real return consistent with preservation of real capital and prudent investment management. The portfolio invests primarily in a diversified mix of common stocks of large and mid-sized U.S. companies and bonds with an overall intermediate term average maturity.
Real Estate Securities	Deutsche Investment Management Americas Inc.	To seek to achieve a combination of long-term capital appreciation and current income. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of REITs and real estate companies. Equity securities include common stock, preferred stock and securities convertible into common stock.
Real Return Bond	Pacific Investment Management Company LLC	To seek maximum real return, consistent with preservation of real capital and prudent investment management. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus borrowings for investment purposes) in inflation-indexed bonds of varying maturities issued by the U.S. and non-U.S. governments, their agencies or instrumentalities and corporations, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements.
Science & Technology	T. Rowe Price Associates, Inc. & RCM Capital Management LLC	To seek long-term growth of capital. Current income is incidental to the portfolio’s objective. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) in the common stocks of companies expected to benefit from the development, advancement, and/or use of science and technology. For purposes of satisfying this requirement, common stock may include equity linked notes and derivatives relating to common stocks, such as options on equity linked notes.
Short-Term Bond	Declaration Management & Research, LLC	To seek income and capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) at the time of investment in a diversified mix of debt securities and instruments. The securities and instruments will have an average credit quality rating of A or AA and a weighted average effective maturity between one and three years, and no more than 15% of the portfolio’s net assets will be invested in high yield bonds.

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Portfolio	Portfolio Manager	Investment Objective and Strategy
Small Cap	Independence Investments LLC	To seek maximum capital appreciation consistent with reasonable risk to principal. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) in equity securities of small-capitalization companies whose market capitalizations, at the time of investment, do not exceed the greater of $2 billion, the market capitalization of the companies in the Russell 2000 Index,* and the market capitalization of the companies in the S&P SmallCap 600 Index.*
Small Cap Growth	Wellington Management Company, LLP	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in small-capitalization companies. For the purposes of the portfolio, “small-capitalization companies” are those with market capitalizations, at the time of investment, not exceeding the maximum market capitalization of any company represented in either the Russell 2000 Index* or the S&P SmallCap 600 Index.*
Small Cap Index	MFC Global Investment Management (U.S.A) Limited	To seek to approximate the aggregate total return of a small-capitalization U.S. domestic equity market index. Under normal market conditions, the portfolio invests, at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in the common stocks that are included in the Russell 2000 Index* and securities (which may or may not be included in the Russell 2000 Index) that the subadviser believes as a group will behave in a manner similar to the index.
Small Cap Opportunities	Munder Capital Management	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of small-capitalization companies. “Small-capitalization companies” are those companies with market capitalizations, at the time of investment, within the range of the companies in the Russell 2000 Index.*
Small Cap Value	Wellington Management Company, LLP	To seek long-term capital appreciation. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in small-capitalization companies that are believed to be undervalued by various measures and offer good prospects for capital appreciation. For the purposes of the portfolio, “small-capitalization companies” are those with market capitalizations, at the time of investment, not exceeding the maximum market capitalization of any company represented in either the Russell 2000 Index* or the S&P SmallCap 600 Index.*
Small Company Value	T. Rowe Price Associates, Inc.	To seek long-term growth of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in companies with market capitalizations, at the time of investment, that do not exceed the maximum market capitalization of any security in the Russell 2000 Index.* The portfolio invests in small companies whose common stocks are believed to be undervalued.
Strategic Bond	Western Asset Management Company	To seek a high level of total return consistent with preservation of capital. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in fixed income securities.
Strategic Income	MFC Global Investment Management (U.S.), LLC	To seek a high level of current income. Under normal market conditions, the portfolio invests at least 80% of its assets in foreign government and corporate debt securities from developed and emerging markets, U.S. Government and agency securities and domestic high yield bonds.
Total Bond Market B	Declaration Management & Research LLC	To seek to track the performance of the Lehman Brothers Aggregate Bond Index** (which represents the U.S. investment grade bond market). Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) in securities listed in the Lehman Brothers Aggregate Bond Index.
Total Return	Pacific Investment Management Company LLC	To seek maximum total return, consistent with preservation of capital and prudent investment management. Under normal market conditions, the portfolio invests at least 65% of its total assets in a diversified portfolio of fixed income instruments of varying maturities, which may be represented by forwards or derivatives, such as options, futures contracts, or swap agreements.

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Portfolio	Portfolio Manager	Investment Objective and Strategy
Total Stock Market Index	MFC Global Investment Management (U.S.A.) Limited	To seek to approximate the aggregate total return of a broad U.S. domestic equity market index. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) at the time of investment in the common stocks that are included in the Dow Jones Wilshire 5000 Index,* and securities (which may or may not be included in the Dow Jones Wilshire 5000 Index) that the subadviser believes as a group will behave in a manner similar to the index.
U.S. Core	Grantham, Mayo, Van Otterloo & Co. LLC	To seek a high total return. Under normal market conditions, the portfolio invests at least 80% of its net assets in investments tied economically to the U.S., and it typically invests in equity investments in U.S. companies whose stocks are included in the S&P 500 Index* or in companies with size and growth characteristics similar to companies that issue stocks included in the Index.
U.S. Government Securities	Western Asset Management Company	To obtain a high level of current income consistent with preservation of capital and maintenance of liquidity. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in debt obligations and mortgage-backed securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities and derivative securities such as collateralized mortgage obligations backed by such securities and futures contracts. The portfolio may invest the balance of its assets in non-U.S. Government securities including, but not limited to, fixed rate and adjustable rate mortgage-backed securities, asset-backed securities, corporate debt securities and money market instruments.
U.S. High Yield Bond	Wells Capital Management, Incorporated	To seek total return with a high level of current income. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) in U.S. corporate debt securities that are, at the time of investment, below investment grade, including preferred and other convertible securities in below investment grade debt securities (sometimes referred to as junk bonds or high yield securities). The portfolio also invests in corporate debt securities and may buy preferred and other convertible securities and bank loans.
U.S. Large Cap	Capital Guardian Trust Company	To seek long-term growth of capital and income. Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity and equity-related securities of U.S. companies with market capitalizations, at the time of investment, greater than $500 million.
Utilities	Massachusetts Financial Services Company	To seek capital growth and current income (income above that available from the portfolio invested entirely in equity securities). Under normal market conditions, the portfolio invests at least 80% of its net assets (plus any borrowing for investment purposes) in securities of companies in the utilities industry. Securities in the utilities industry may include equity and debt securities of domestic and foreign companies (including emerging markets).
Value	Van Kampen	To realize an above-average total return over a market cycle of three to five years, consistent with reasonable risk. Under normal market conditions, the portfolio invests in equity securities of companies with capitalizations, at the time of investment, similar to the market capitalization of companies in the Russell MidCap Value Index.*
Brandes International Equity (a series of M Fund, Inc.)	Brandes Investment Partners, LP	To seek to provide long-term capital appreciation. The portfolio invests mainly in equity securities of foreign issuers, including common stocks, preferred stocks and securities that are convertible into common stocks. The portfolio focuses on stocks with capitalizations of $1 billion or more. The portfolio also may invest in emerging market securities.
Business Opportunity Value (a series of M Fund, Inc.)	Iridian Asset Management LLC	To seek to provide long-term capital appreciation. The portfolio invests primarily in equity securities of U.S. issuers in the large-to-medium-capitalization segment of the U.S. stock market.
Frontier Capital Appreciation (a series of M Fund, Inc.)	Frontier Capital Management Company, LLC	To seek to provide maximum capital appreciation. The portfolio invests in common stock of U.S. companies of all sizes, with emphasis on stocks of companies with capitalizations that are consistent with the capitalizations of those companies found in the Russell 2500 Index.*
Turner Core Growth (a series of M Fund, Inc.)	Turner Investment Partners, Inc.	To seek to provide long-term capital appreciation. The portfolio invests mainly in common stocks of U.S. companies that the subadviser believes have strong earnings growth potential.

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*”Dow Jones Wilshire 5000 Index ^®” is a trademark of Wilshire Associates. “MSCI All Country World ex US Index” is a trademark of Morgan Stanley & Co. Incorporated. ”Russell 1000, ^®” “Russell 2000, ^®” “Russell 2500, ^®” “Russell 3000, ^®” “Russell MidCap, ^®” and “Russell MidCap Value ^®” are trademarks of Frank Russell Company. ”S&P 500, ^®” “S&P MidCap 400, ^®” and “S&P SmallCap 600 ^®” are trademarks of The McGraw-Hill Companies, Inc. None of the portfolios are sponsored, endorsed, managed, advised, sold or promoted by any of these companies, and none of these companies make any representation regarding the advisability of investing in the portfolios.

The indexes referred to in the portfolio descriptions track companies having the ranges of approximate market capitalization, as of February 29, 2008, set out below:

Dow Jones Wilshire 5000 Index — $25 million to $468.29 billion MSCI All Country World Ex US Index — $56 million to $309 billion Russell 1000 Index — $302 million to $468.29 billion Russell 2000 Index — $25 million to $7.68 billion

Russell 2500 Index — $25 million to $16.12 billion Russell 3000 Index — $25 million to $468.29 billion Russell MidCap Index — $302 million to $49.3 billion Russell MidCap Value Index — $463 million to $49.3 billion S&P 500 Index — $744 million to $468.29 billion S&P MidCap 400 Index — $302 million to $11.13 billion S&P SmallCap 600 Index — $65 million to $5.26 billion

**The Lehman Brothers Aggregate Bond Index is a bond index. A bond index relies on indicators such as quality, liquidity, term and duration as relevant measures of performance.

You bear the investment risk of any portfolio you choose as an investment option for your policy. A full description of each portfolio, including the investment objectives, policies and restrictions of, and the risks relating to investments in, each portfolio is contained in the portfolio prospectuses. The portfolio prospectuses should be read carefully before allocating purchase payments to an investment option.

If the 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 of the Trust or another open-end registered investment company. Substitution may be made with respect to both existing investments and the investment of future purchase payments. However, we will make no such substitution without first notifying you and obtaining approval of the appropriate insurance regulatory authorities and the SEC (to the extent required by the 1940 Act).

We will purchase and redeem series fund shares for the Account at their net asset value without any sales or redemption charges. Shares of a series fund represent an interest in one of the funds of the series fund which corresponds to a subaccount of the Account. Any dividend or capital gains distributions received by the Account will be reinvested in shares of that same fund at their net asset value as of the dates paid.

On each business day, shares of each series fund are purchased or redeemed by us for each subaccount based on, among other things, the amount of net premiums allocated to the subaccount, distributions reinvested, and transfers to, from and among subaccounts, all to be effected as of that date. Such purchases and redemptions are effected at each series fund’s net asset value per share determined for that same date. A “business day” is any date on which the New York Stock Exchange is open for trading. We compute policy values for each business day as of the close of that day (usually 4:00 p.m. Eastern time).

We will vote shares of the portfolios held in the Account at the shareholder meetings according to voting instructions received from persons having the voting interest under the policies. We will determine the number of portfolio shares for which voting instructions may be given not more than 90 days prior to the meeting. Proxy material will be distributed to each person having the voting interest under the contract together with appropriate forms for giving voting instructions. We will vote all portfolio shares that we hold (including our own shares and those we hold in the Account for policy owners) in proportion to the instructions so received. The effect of this proportional voting is that a small number of policy owners can determine the outcome of a vote.

We determine the number of a series fund’s shares held in a subaccount attributable to each owner by dividing the amount of a policy’s account value held in the subaccount by the net asset value of one share in the series fund. Fractional votes will be counted. We determine the number of shares as to which the owner may give instructions as of the record date for a series fund’s meeting. Owners of policies may give instructions regarding the election of the Board of Trustees or Board of Directors of a series fund, ratification of the selection of independent auditors, approval of series fund investment advisory agreements and other matters requiring a shareholder vote. We will furnish owners with information and forms to enable owners to give voting instructions. However, we may, in certain limited circumstances permitted by the SEC’s rules, disregard

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voting instructions. If we do disregard voting instructions, you will receive a summary of that action and the reasons for it in the next semi-annual report to owners.

The voting privileges described above reflect our understanding of applicable Federal securities law requirements. To the extent that applicable law, regulations or interpretations change to eliminate or restrict the need for such voting privileges, we reserve the right to proceed in accordance with any such revised requirements. We also reserve the right, subject to compliance with applicable law, including approval of owners if so required, (1) to transfer assets determined by John Hancock USA to be associated with the class of policies to which your policy belongs from the Account to another separate account or subaccount, (2) to deregister the Account under the 1940 Act, (3) to substitute for the fund shares held by a subaccount any other investment permitted by law, and (4) to take any action necessary to comply with or obtain any exemptions from the 1940 Act. Any such change will be made only if, in our judgment, the change would best serve the interests of owners of policies in your policy class or would be appropriate in carrying out the purposes of such policies. We would notify owners of any of the foregoing changes and to the extent legally required, obtain approval of affected owners and any regulatory body prior thereto. Such notice and approval, however, may not be legally required in all cases.

Description of John Hancock USA

We are a stock life insurance company incorporated in Maine on August 20, 1955 by a special act of the Maine legislature and redomesticated under the laws of Michigan. We are a licensed life insurance company in the District of Columbia and all states of the United States except New York. Our ultimate parent is Manulife Financial Corporation (“MFC”), a publicly traded company based in Toronto, Canada. MFC is the holding company of John Hancock USA and its subsidiaries. However, neither John Hancock USA nor any of its affiliated companies guarantees the investment performance of the Account.

We have received the following ratings from independent rating agencies:

A++ A.M. Best Superior

Companies have a very strong ability to meet their obligations; 1st category of 15

AA+ Fitch Ratings

Very strong capacity to meet policyholder and contract obligations; 2nd category of 9

AAA Standard & Poor’s

Extremely strong financial security characteristics; 1st category of 8

Aa1 Moody’s

Excellent in financial strength; 2nd category of 9

These ratings, which are current as of the date of this prospectus and are subject to change, are assigned as a measure of our ability to honor any guarantees provided by the policy and any applicable optional riders, but do not specifically relate to our products, the performance (return) of these products, the value of any investment in these products upon withdrawal or to individual securities held in any portfolio. These ratings do not apply to the safety and performance of the Separate Account.

With respect to the fixed portion of the policies issued by John Hancock USA, the Manufacturers Life Insurance Company unconditionally guarantees to make funds available to John Hancock USA for the timely payment of contractual claims pursuant to a Guarantee Agreement dated March 31, 1996. The guarantee may be terminated by The Manufacturers Life Insurance Company upon notice to John Hancock USA. Termination will not affect The Manufacturers Life Insurance Company’s continuing liability with respect to policies issued by John Hancock USA prior to termination of the guarantee except if:

• the liability to pay contractual claims under the contracts is assumed by another insurer; or

• we are sold and the buyer’s guarantee is substituted for The Manufacturers Life Insurance Company’s guarantee.

Description of Separate Account A

The investment accounts shown on page 1 are in fact subaccounts of Separate Account A, a separate account operated by us under Michigan law. The Account meets the definition of “separate account” under the Federal securities laws and is registered as a unit investment trust under the 1940 Act. Such registration does not involve supervision by the SEC of the management of the Account or of us.

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The Account’s assets are our property. Each policy provides that amounts we hold in the Account pursuant to the policies cannot be reached by any other persons who may have claims against us and can’t be used to pay any indebtedness of John Hancock USA other than those arising out of policies that use the Account. Income, gains and losses credited to, or charged against, the Account reflect the Account’s own investment experience and not the investment experience of John Hancock USA’s other assets.

New subaccounts may be added and made available to policy owners from time to time. Existing subaccounts may be modified or deleted at any time.

The fixed account options

Our obligations under any fixed account option are backed by our general account assets. Our general account consists of assets owned by us other than those in the Account and in other separate accounts that we may establish. Subject to applicable law, we have sole discretion over the investment of assets of the general account and policy owners do not share in the investment experience of, or have any preferential claim on, those assets. Instead, we guarantee that the policy value allocated to any fixed account will accrue interest daily at an effective annual rate that we determine without regard to the actual investment experience of the general account. We currently offer two fixed account options — the standard fixed account, and the enhanced yield fixed account offered as a supplementary benefit rider. The effective annual rate we declare for the fixed account options will never be less than 3%. We reserve the right to offer one or more additional fixed accounts with characteristics that differ from those of the current fixed account options, but we are under no obligation to do so.

Because of exemptive and exclusionary provisions, interests in our fixed account options have not been and will not be registered under the Securities Act of 1933 (“1933 Act”) and our general account has not been registered as an investment company under the 1940 Act. Accordingly, neither the general account nor any interests therein are subject to the provisions of these acts, and we have been advised that the staff of the SEC has not reviewed the disclosure in this prospectus relating to any fixed account. Disclosure regarding fixed accounts may, however, be subject to certain generally-applicable provisions of the Federal securities laws relating to accuracy and completeness of statements made in prospectuses.

The death benefit

In your application for the policy, you will tell us how much life insurance coverage you want on the lives of the insured persons. This is called the “Total Face Amount.” Total Face Amount is composed of the Base Face Amount and any Supplemental Face Amount you elect. The Supplemental Face Amount you can have generally cannot exceed 400% of the Base Face Amount at the Issue Date. The Issue Date is shown in the Policy Specifications page of the policy. Thereafter, increases to the Supplemental Face Amount in any one policy year cannot exceed 25% of the Total Face Amount at the Issue Date. There are a number of factors you should consider in determining whether to elect coverage in the form of Base Face Amount or in the form of Supplemental Face Amount. These factors are discussed under “Base Face Amount vs. Supplemental Face Amount” below.

When the last surviving insured person dies, we will pay the death benefit minus any outstanding policy debt and unpaid fees and charges. There are two ways of calculating the death benefit. You must choose which one you want in the application. The two death benefit options are described below.

• Option 1 - The death benefit will equal the greater of (1) the Total Face Amount plus any amount payable under a supplementary benefit rider, or (2) the minimum death benefit (as described below).

• Option 2 - The death benefit will equal the greater of (1) the Total Face Amount plus any amount payable under a supplementary benefit rider, plus the policy value on the date of death of the last surviving insured person, or (2) the minimum death benefit.

For the same premium payments, the death benefit under Option 2 will tend to be higher than the death benefit under Option 1. On the other hand, the Face Amount charge and resulting cost of insurance charges (based on the higher net amount at risk) will be higher under Option 2. Because of that, the policy value will tend to be higher under Option 1 than under Option 2 for the same premium payments.

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Limitations on payment of death benefit

If either insured person commits suicide within certain time periods, the amount payable will be limited as described in the policy. Also, if an application misstated the age or gender of either of the insured persons, we will adjust the amount of any death benefit as described in the policy.

Base Face Amount vs. Supplemental Face Amount

As noted above, you should consider a number of factors in determining whether to elect coverage in the form of Base Face Amount or in the form of Supplemental Face Amount. Some of these factors include the following:

• As shown in the Fee Tables, we calculate the premium charge as a percentage of premiums paid up to and in excess of the Target Premium. Your Target Premium appears in the Policy Specifications section of your policy and is based on the amount of Base Face Amount you elect at issue. This means for the same amount of premium paid, your premium charges deducted from premium payments will be higher if you elect greater proportions of Base Face Amount at issue versus Supplemental Face Amount. For example, a premium payment of $10,000 on a policy with 20% Base Face Amount coverage and a Target Premium of $2,000 will have a premium charge of $1,240 in policy year 1. The same premium payment on a policy with 50% Base Face Amount coverage and a Target Premium of $5,000 will have a premium charge of $1,900 and a policy with 100% Base Face Amount coverage and a Target Premium of $10,000 will have a premium charge of $3,000.

• Likewise, as shown in the Fee Tables, the charge per $1000 of Base Face Amount is higher than the per $1000 charge of Supplemental Face Amount. This means for the same amount of Total Face Amount, your Face Amount charges deducted from policy value will be higher if you elect greater proportions of Base Face Amount at issue versus Supplemental Face Amount.

• However, if you elect greater proportions of Supplemental Face Amount coverage at issue, the guaranteed limit upon the asset-based risk charge we provide will be higher. As shown in the Fee Tables, the “maximum” guaranteed charge of 0.15% of policy value in policy years 1-20 is for a policy with 80% Supplemental Face Amount at issue. A policy with 50% Supplemental Face Amount at issue would have a guaranteed charge of 0.10%; whereas a policy with 100% Base Face Amount at issue would have a guaranteed charge of 0.025%. Please see the Fee Tables for a description of the guaranteed and current asset-based risk charges in all policy years. The asset-based risk charge percentages assessed on a current basis may be the same for both Base Face Amount and Supplemental Face Amount.

• Also, after the younger insured person reaches or would have reached age 121, any Supplemental Face Amount will terminate. If your priority is to maximize the death benefit when the younger insured person reaches or would have reached age 121, then you may wish to maximize the proportion of the Base Face Amount.

The lower premium charges and Face Amount charges applied to Supplemental Face Amount will tend to result in higher cash value accumulation, or alternatively lower premium payments, for the same amount of death benefit compared to Base Face Amount coverage. However, if the Company should increase the asset-based risk charges under your policy to the maximum limits, the higher guaranteed asset-based risk charge resulting from a higher amount of Supplemental Face Amount at issue could increase the policy’s risk of lapse, requiring additional premium payments. You should also consider that the amount of compensation paid to the selling broker-dealer will be higher if you elect greater proportions of Base Face Amount coverage at issue.

Ultimately, individual needs and objectives vary. You should discuss your individual needs with your registered representative.

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The minimum death benefit

In order for a policy to qualify as life insurance under Federal tax law, there has to be a minimum amount of insurance in relation to policy value. There are two tests that can be applied under Federal tax law — the “guideline premium test” and the “cash value accumulation test.” You must elect which test you wish to have applied at issue. Once elected, the test cannot be changed without our approval.

Under the guideline premium test, we compute the minimum death benefit each business day by multiplying the policy value on that date by the death benefit factor applicable on that date. Factors for some ages are shown in the table below:

Younger Insured Attained Age	Applicable Factor
40 and under	250%
45	215%
50	185%
55	150%
60	130%
65	120%
70	115%
75	105%
90	105%
95 and above	100%

A table showing the factor for each policy year will appear in the policy.

Under the cash value accumulation test, we compute the minimum death benefit each business day by multiplying the policy value on that date by the death benefit factor applicable on that date. The factor decreases as attained age increases. A table showing the factor for each policy year will appear in the policy.

The cash value accumulation test may be preferable if you want to fund the policy so that the minimum death benefit will increase earlier than would be required under the guideline premium test, or if you want to fund the policy at the “7 pay” limit for the full 7 years (see “Tax considerations”).

To the extent that the calculation of the minimum death benefit under the selected life insurance qualification test causes the death benefit to exceed our limits, we reserve the right to return premiums or distribute a portion of the policy value so that the resulting amount of insurance is maintained within our limits. Alternatively, if we should decide to accept the additional amount of insurance, we may require additional evidence of insurability.

When the younger insured person reaches 121

If the policy is still in effect on the policy anniversary nearest the 121st birthday of the younger of the two insured persons (whether or not the younger insured person is alive), the following things will happen (whether or not there is any net cash surrender value).

• We will stop any monthly deduction charges

• We will stop accepting any premium payments

• We will not allow any new loans and loan interest will continue to be charged if there is an outstanding loan

• We will no longer process withdrawals

• We will continue to credit interest to a fixed account

• Any Supplemental Face Amount will terminate

Requesting an increase in coverage

After the first policy year, we may approve an unscheduled increase or addition in the Supplemental Face Amount at any time, subject to the maximum limit stated in the policy. Unscheduled increases are also subject to a one time charge as described in the Fee Tables. Generally, each such increase must be at least $50,000. Scheduled increases in any one policy year can not exceed 25% of the Total Face Amount at issue. We will require evidence that both insured persons qualify for the same risk classification that applied to them at issue. An approved increase will take effect on the policy anniversary on or next following the date we approve the request. If you elect scheduled increases to your Supplemental Face Amount when you

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apply for the policy, you may not elect to purchase the Four Year Term Rider, Policy Split Option Rider, or Return of Premium Death Benefit Rider.

Requesting a decrease in coverage

After the first policy year, we may approve a reduction in the Base Face Amount or the Supplemental Face Amount, but only if:

• the remaining Total Face Amount is at least $250,000 and Base Face Amount will be at least $100,000, and

• the remaining Total Face Amount will at least equal the minimum required by the tax laws to maintain the policy’s life insurance status.

We reserve the right to require that the Supplemental Face Amount be fully depleted before the Base Face Amount can be reduced.

Change of death benefit option

Under our current administrative rules, we permit the death benefit option to be changed from Option 2 to Option 1, after the first policy year. We reserve the right to limit a request for a change if the change would cause the policy to fail to qualify as life insurance for tax purposes.

A change in the death benefit option will result in a change in the policy’s Total Face Amount, in order to avoid any change in the amount of the death benefit. The new Total Face Amount will be equal to the Total Face Amount prior to the change plus the policy value as of the date of the change. The change will take effect on the monthly deduction date on or next following the date the written request for the change is received at our Service Office.

Notwithstanding other policy limits, if the change from Option 2 to 1 yields a Total Face Amount that is larger than 400% of the Total Face Amount at issue, we will allow for the increase.

If you change the death benefit option, the Federal tax law test (“guideline premium test” or “cash value accumulation test”) that you elected at issue will continue to apply. Please read “The minimum death benefit” for more information about these Federal tax law tests.

Tax consequences of coverage changes

A change in the death benefit option or Total Face Amount will often change the policy’s limits under the Federal tax law test that you elected. To avoid having the policy cease to qualify as life insurance for tax purposes, we reserve the right to (i) refuse or limit a change in the death benefit option or Total Face Amount and (ii) change the Guideline Single Premium or Guideline Level Premium, as applicable. Please read “Tax considerations” to learn about possible tax consequences of changing your insurance coverage under the policy.

Your beneficiary

You name your beneficiary when you apply for the policy. The beneficiary is entitled to the proceeds we pay following the death of the last surviving insured person. Until the death of the last surviving insured person you can change your beneficiary by written request. Such a change requires the consent of any named irrevocable beneficiary. A new beneficiary designation will not affect any payments we make before we receive it. If no beneficiary is living when the last surviving insured person dies, we will pay the insurance proceeds to the owner or the owner’s estate.

Ways in which we pay out policy proceeds

You may choose to receive proceeds from the policy as a single sum. This includes proceeds that become payable because of death or surrender. As permitted by state law and our current administrative procedures, death claim proceeds may be placed into an interest-bearing John Hancock retained asset account in the beneficiary’s name. We will provide the beneficiary with a checkbook, so checks may be written for all or a part of the proceeds. The retained asset account is part of our general account and is subject to the claims of our creditors. It is not a bank account and it is not insured by the FDIC or any other government agency. We may also in the future direct proceeds from surrenders into a John Hancock retained asset account. Alternatively, you can select to have proceeds of $1,000 or more applied to any of the other payment options we may offer at the time. You cannot choose an option if the monthly payments under the option would be less than $50. We will issue a supplementary agreement when the proceeds are applied to any alternative payment option. That agreement will spell out

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the terms of the option in full. If no alternative payment option has been chosen, proceeds may be paid as a single sum. Please contact our Service Office for more information.

Changing a payment option

You can change the payment option at any time before the proceeds are payable. If you haven’t made a choice, the payee of the proceeds has a prescribed period in which he or she can make that choice.

Tax impact of payment option chosen

There may be tax consequences to you or your beneficiary depending upon which payment option is chosen. You should consult with a qualified tax adviser before making that choice.

Premiums

Planned premiums

The Policy Specifications page of your policy will show the “Planned Premium” for the policy. You choose this amount in the policy application. You will also choose how often to pay premiums — annually, semi-annually or quarterly. You may also choose to pay premiums by monthly electronic funds transfers. The premium reminder notice we send you is based on the amount and period you choose. However, payment of Planned Premiums is not necessarily required. You need only pay enough premium to keep the policy in force (see “Lapse and reinstatement.”)

Minimum initial premium

The Minimum Initial Premium is set forth in the Policy Specifications page of your policy. After the payment of the initial premium, premiums may be paid at any time and in any amount until the younger insured person’s attained age 121, subject to the limitations on premium amount described below.

Maximum premium payments

Federal tax law limits the amount of premium payments you can make relative to the amount of your policy’s insurance coverage. We will not knowingly accept any amount by which a premium payment exceeds this limit. If you exceed certain other limits, the law may impose a penalty on amounts you take out of your policy. More discussion of these tax law requirements is provided under “Tax considerations.”

Large premium payments may expose us to unanticipated investment risk. In order to limit our investment risk exposure under certain market conditions, we may refuse to accept additional premium payments. This may be the case, for example, in an environment of decreasing interest rates, where we may not be able to acquire investments for our general account that will sufficiently match the liabilities we are incurring under our fixed account guarantees. Excessive allocations may also interfere with the effective management of our variable investment account portfolios, if we are unable to make an orderly investment of the additional premium into the portfolios. Also, we may refuse to accept an amount of additional premium if the amount of the additional premium would increase our insurance risk exposure, and the insured persons don’t provide us with adequate evidence that he or she continues to meet our requirements for issuing insurance.

We will notify you in writing of our refusal to accept additional premium under these provisions within three days following the date that it is received by us, and will promptly thereafter take the necessary steps to return the premium to you. Notwithstanding the foregoing limits on the additional premium that we will accept, we will not refuse to accept any premium necessary to prevent the policy from terminating.

Processing premium payments

No premiums will be accepted prior to our receipt of a completed application at our Service Office. All premiums received prior to the Issue Date of the policy will be held in the general account and credited with interest from the date of receipt at the rate of return then being earned on amounts allocated to the Money Market B investment account. After the Issue Date but prior to the Allocation Date, premiums received are allocated to the Money Market B investment account. The “Allocation Date” of the policy is the 10th day after the Issue Date. The Issue Date is shown on the Policy Specifications page of the policy. On the Allocation Date, the Net Premiums paid plus interest credited, if any, will be allocated among the

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investment accounts or the fixed accounts in accordance with the policy owner’s instructions. The “Net Premium” is the premium paid less the applicable premium charges we deduct from it.

Any Net Premium received on or after the Allocation Date will be allocated among investment accounts or the fixed accounts as of the business day on or next following the date the premium is received at the Service Office. Monthly deductions are normally due on the Policy Date and at the beginning of each policy month thereafter. However, if the monthly deductions are due prior to the Contract Completion Date, they will be deducted from policy value on the Contract Completion Date instead of the dates they were due (see “Procedures for issuance of a policy” for the definition of “Contract Completion Date.”)

Payment of premiums will not guarantee that the policy will stay in force. Conversely, failure to pay premiums will not necessarily cause the policy to lapse.

Ways to pay premiums

If you pay premiums by check or money order, they must be drawn on a U.S. bank in U.S. dollars and made payable to “John Hancock.” We will not accept credit card checks. We will not accept starter or third party checks if they fail to satisfy our administrative requirements. Premiums after the first must be sent to the John Hancock USA Service Office at the appropriate address shown on the back cover of this prospectus.

We will also accept premiums:

• by wire or by exchange from another insurance company, or

• via an electronic funds transfer program (any owner interested in making monthly premium payments must use this method).

Lapse and reinstatement

Lapse

A policy will go into default if at the beginning of any policy month the policy’s net cash surrender value would be zero or below after deducting the monthly deductions then due. Therefore, a policy could lapse eventually if increases in policy value (prior to deduction of policy charges) are not sufficient to cover policy charges. A lapse could have adverse tax consequences as described under “Tax considerations.” We will notify you of the default and will allow a 61 day grace period in which you may make a premium payment sufficient to bring the policy out of default. The required payment will be equal to the amount necessary to bring the net cash surrender value to zero, if it was less than zero on the date of default, plus the monthly deductions due at the date of default and payable at the beginning of each of the two policy months thereafter, plus any applicable premium charge. If the required payment is not received by the end of the grace period, the policy will terminate (i.e., “lapse”) with no value.

Death during grace period

If the last surviving insured person should die during the grace period, the policy value used in the calculation of the death benefit will be the policy value as of the date of default and the insurance benefit will be reduced by any outstanding monthly deductions due at the time of death.

Reinstatement

By making a written request, you can reinstate a policy that has gone into default and terminated at any time within the three-year period following the date of termination subject to the following conditions:

(a) You must provide evidence satisfactory to us of the insurability of the insured persons (or the last surviving insured person), and of any insured persons covered under any supplementary benefit rider that you wish to reinstate; and

(b) You must pay a premium equal to the amount that was required to bring the policy out of default immediately prior to termination, plus the amount needed to keep the policy in force to the next scheduled date for payment of the Planned Premium.

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If the reinstatement is approved, the date of reinstatement will be the later of the date we approve your request or the date the required payment is received at our Service Office. The policy value on the date of reinstatement, prior to the crediting of any Net Premium paid in connection with the reinstatement, will be equal to the policy value on the date the policy terminated. Any policy debt not paid upon termination of a policy will be reinstated if the policy is reinstated.

Generally, the incontestability provision will apply from the effective date of reinstatement. Your policy will indicate if this is not the case. A surrendered policy cannot be reinstated.

The policy value

From each premium payment you make, we deduct the applicable premium charges described under “Deduction from premium payments.” We invest the rest (known as the “Net Premium”) in the accounts (fixed or investment) you’ve elected. Special investment rules apply to premiums processed prior to the Allocation Date (see “Processing premium payments”).

Over time, the amount you’ve invested in any investment account will increase or decrease the same as if you had invested the same amount directly in the corresponding underlying portfolio and had reinvested all portfolios’ dividends and distributions in additional portfolio shares, except that we will deduct certain additional charges which will reduce your policy value. We describe these charges under “Description of charges at the policy level.”

We calculate the unit values for each investment account once every business day as of the close of trading on the New York Stock Exchange, usually 4:00 p.m. Eastern time. Sales and redemptions within any investment account will be transacted using the unit value next calculated after we receive your request either in writing or other form that we specify. If we receive your request before the close of our business day, we’ll use the unit value calculated as of the end of that business day. If we receive your request at or after the close of our business day, we’ll use the unit value calculated as of the end of the next business day. If a scheduled transaction falls on a day that is not a business day, we’ll process it as of the end of the next business day.

The amount you’ve invested in any fixed account will earn interest at the rates we declare from time to time. For any fixed account, we guarantee that this rate will be at least 3%. If you want to know what the current declared rate is for any fixed account, just call or write to us. The asset-based risk charge only applies to that portion of the policy value held in the investment accounts. The charge determined does not apply to any fixed account. Otherwise, the policy level charges applicable to any fixed account are the same as those applicable to the investment accounts. We reserve the right to offer one or more additional fixed accounts with characteristics that differ from those of the current fixed accounts, but we are under no obligation to do so.

Allocation of future premium payments

At any time, you may change the accounts (fixed or investment) in which future premium payments will be invested. You make the original allocation in the application for the policy. The percentages you select must be in whole numbers and must total 100%.

Transfers of existing policy value

You may also transfer your existing policy value from one account (fixed or investment) to another. To do so, you must tell us how much to transfer, either as a whole number percentage or as a specific dollar amount. A confirmation of each transfer will be sent to you. Without our approval, the maximum amount you may transfer to or from any account in any policy year is $1,000,000.

The policies are not designed for professional market timing organizations or other persons or entities that use programmed or frequent transfers among investment accounts. As a consequence, we have reserved the right to impose limits on the number and frequency of transfers into and out of investment accounts and to impose a fee of up to $25 for any transfer beyond an annual limit (which will not be less than 12). No transfer fee will be imposed on any transfer from an investment account into a fixed account if the transfer occurs during the following periods:

• within 18 months after the policy’s Issue Date, or

• within 60 days after the later of the effective date of a material change in the investment objectives of any investment account or the date you are notified of the change.

Subject to the restrictions set forth below, you may transfer existing policy value into or out of investment accounts. Transfers out of a fixed account are subject to additional limitations noted below.

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Our current practice is to restrict transfers into or out of investment accounts to two per calendar month (except with respect to those policies described in the following paragraphs). For purposes of this restriction, and in applying the limitation on the number of free transfers, any transfers made during the period from the opening of a business day (usually 9:00 a.m. Eastern time) to the close of that business day (usually 4:00 p.m. Eastern time) are considered one transfer. You may, however, transfer to the Money Market B investment account even if the two transfer per month limit has been reached, but only if 100% of the account value in all investment accounts is transferred to the Money Market B investment account. If such a transfer to the Money Market B investment account is made, then for the 30 calendar day period after such transfer no transfers from the Money Market B investment account to any other accounts (fixed or investment) may be made. If your policy offers a dollar cost averaging or automatic asset allocation rebalancing program, any transfers pursuant to such program are not considered transfers subject to these restrictions on frequent trading. The restrictions described in this paragraph will be applied uniformly to all policy owners subject to the restrictions.

Policies such as yours may be purchased by a corporation or other entity as a means to informally finance the liabilities created by an employee benefit plan, and to this end the entity may aggregately manage the policies purchased to match its liabilities under the plan. Policies sold under these circumstances are subject to special transfer restrictions. In lieu of the two transfers per month restriction, we will allow the policy owner under these circumstances to rebalance the investment options in its policies within the following limits: (i) during the 10 calendar day period after any policy values are transferred from one investment account into a second investment account, the values can only be transferred out of the second investment account if they are transferred into the Money Market B investment account; and (ii) any policy values that would otherwise not be transferable by application of the 10 day limit described above and that are transferred into the Money Market B investment account may not be transferred out of the Money Market B investment account into any other accounts (fixed or investment) for 30 calendar days. The restrictions described in this paragraph will be applied uniformly to all policy owners subject to the restrictions.

Subject to our approval, we may offer policies purchased by a corporation or other entity that has purchased policies to match its liabilities under an employee benefit plan, as described above, the ability to electronically rebalance the investment options in its policies. Under these circumstances, in lieu of imposing any specific limit upon the number and timing of transfers, we will monitor aggregate trades among the subaccounts for frequency, pattern and size for potentially harmful investment practices. If we detect trading activity that we believe may be harmful to the overall operation of any investment account or underlying portfolio, we may impose conditions on policies employing electronic rebalancing to submit trades, including setting limits upon the number and timing of transfers, and revoking privileges to make trades by any means other than written communication submitted via U.S. mail.

While we seek to identify and prevent disruptive frequent trading activity, it may not always be possible to do so. Therefore no assurance can be given that the restrictions we impose will be successful in preventing all disruptive frequent trading and avoiding harm to long-term investors. The restrictions described in these paragraphs will be applied uniformly to all policy holders subject to the restrictions.

Rule 22c-2 under the 1940 Act requires us to provide tax identification numbers and other policy owner transaction information to the Trust or to other investment companies in which the Separate Account invests, at their request. An investment company will use this information to identify any pattern or frequency of investment account transfers that may violate their frequent trading policy. An investment company may require us to impose trading restrictions in addition to those described above if violations of their frequent trading policy are discovered.

The most you can transfer at any one time out of the enhanced yield fixed account is the greater of (i) the fixed account maximum transfer amount of $2,000, or (ii) the enhanced yield fixed account maximum transfer percentage of 10% multiplied by the amount in the enhanced yield fixed account on the immediately preceding policy anniversary. Transfers out of the standard fixed account option are limited to the greater of (i) the fixed account maximum transfer amount of $2,000, or (ii) the standard fixed account maximum transfer percentage of 15% multiplied by the amount of the fixed account on the immediately preceding policy anniversary. Any transfer which involves a transfer out of a fixed account may not involve a transfer to the Money Market B investment account.

We reserve the right to impose a minimum amount limit on transfers out of any fixed account. We also reserve the right to impose different restrictions on any additional fixed account that we may offer in the future.

Dollar cost averaging. We may offer policy owners a dollar cost averaging (“DCA”) program. Under the DCA program, you will designate an amount that will be transferred monthly from one investment account into any other investment

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account(s) or the fixed accounts(s). If insufficient funds exist to effect a DCA transfer, the transfer will not be effected and you will be so notified. No fee is charged for this program.

We reserve the right to cease to offer this program as of 90 days after written notice is sent to you.

Asset allocation balancer transfers. Under the asset allocation balancer program you will designate an allocation of policy value among investment accounts. We will move amounts among the investment accounts at specified intervals you select—annually, semi-annually, quarterly or monthly. A change to your premium allocation instructions will automatically result in a change in asset allocation balancer instructions so that the two are identical unless you either instruct us otherwise or have elected the dollar cost averaging program. No fee is charged for this program.

We reserve the right to cease to offer this program as of 90 days after written notice is sent to you.

Surrender and withdrawals

Surrender

You may surrender your policy in full at any time. If you do, we will pay you the policy value less any policy debt that then applies. This is called your “Net Cash Surrender Value.” You must return your policy when you request a surrender. We will process surrenders on the day we receive the surrender request (unless such day is not a business day, in which case we will process surrenders as of the business day next following the date of the receipt).

Withdrawals

You may make a withdrawal of part of your net cash surrender value once in each policy month. Generally, each withdrawal must be at least $500. We will automatically reduce the policy value of your policy by the amount of the withdrawal. Unless otherwise specified by you, each account (fixed and investment) will be reduced in the same proportion as the policy value is then allocated among them. We will not permit a withdrawal if it would cause your surrender value to fall below 3 months’ worth of monthly deductions (see “Deductions from policy value”). We also reserve the right to refuse any withdrawal that would cause the policy’s Total Face Amount to fall below $250,000 or the Base Face Amount to fall below $100,000.

Because it reduces the policy value, any withdrawal will reduce your death benefit under either Option 1 or Option 2 (see “The death benefit”). Under Option 1, such a withdrawal may also reduce the Total Face Amount. Generally, any such reduction in the Total Face Amount will be implemented by first reducing any Supplemental Face Amount then in effect. If such a reduction in Total Face Amount would cause the policy to fail the Internal Revenue Code’s definition of life insurance, we will not permit the withdrawal.

For example, assume a policy owner that has elected death benefit Option 1 requests a withdrawal of $5,000 on a policy with a Total Face Amount of $300,000. The $5,000 withdrawal would reduce the Total Face Amount from $300,000 to $295,000.

Policy loans

You may borrow from your policy at any time by completing a form satisfactory to us. The maximum amount you can borrow is the greater of (i) 90% of net cash surrender value and (ii) the amount determined as set out below.

• We first determine the net cash surrender value of your policy.

• We then subtract an amount equal to the monthly deductions then being deducted from policy value times the number of full policy months until the next policy anniversary.

• We then multiply the resulting amount by 1.25 % in policy years 1 through 10 and 0% thereafter (although we reserve the right to increase the percentage after the tenth policy year to as much as .25%).

• We then subtract the third item above from the second item above.

The minimum amount of each loan is $500. The interest charged on any loan is currently an effective annual rate of 4.25% in the first 10 policy years and 3.00% thereafter. However, we reserve the right to increase the percentage after the tenth policy year to as much as 3.25%. Accrued interest will be added to the loan daily and will bear interest at the same rate as the original loan amount. Unless otherwise specified by you, the amount of the loan is deducted from the accounts (fixed

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and investment) in the same proportion as the policy value is then allocated among them. The amount of the loan is then placed in a special loan account. This special loan account will earn interest at an effective annual rate of 3%. The tax consequences of a loan interest credited differential of 0% are unclear. You should consult a tax adviser before effecting a loan to evaluate possible tax consequences. If we determine that a loan will be treated as a taxable distribution because of the differential between the loan interest rate and the rate being credited on the special loan account, we reserve the right to increase the rate charged on the loan to a rate that would, in our reasonable judgment, result in the transaction being treated as a loan under Federal tax law. The right to increase the rate charged on the loan is restricted in some states. Please see your John Hancock USA representative for details. We process policy loans as of the business day on or next following the day we receive the loan request. We will not allow any new loans at and after the policy anniversary nearest the date the younger insured person reaches or would have reached age 121.

Repayment of policy loans

You can repay all or part of a loan at any time. Each repayment will be allocated among the accounts as set out below.

• The same proportionate part of the loan as was borrowed from any fixed account will be repaid to that fixed account.

• The remainder of the repayment will be allocated among the accounts in the same way a new premium payment would be allocated (unless otherwise specified by you).

If you want a payment to be used as a loan repayment, you must include instructions to that effect. Otherwise, all payments will be assumed to be premium payments. We process loan repayments as of the day we receive the repayment.

Effects of policy loans

The policy value, the net cash surrender value, and any death benefit are permanently affected by any loan, whether or not it is repaid in whole or in part. This is because the amount of the loan is deducted from the accounts and placed in a special loan account. The accounts and the special loan account will generally have different rates of investment return.

The amount of the outstanding loan (which includes accrued and unpaid interest) is subtracted from the amount otherwise payable when the policy proceeds become payable.

Taking out a loan on the policy increases the risk that the policy may lapse because of the difference between the interest rate charged on the loan and the interest rate credited to the special loan account. Also, whenever the outstanding loan equals or exceeds your policy value after the younger insured person reaches or would have reached age 121, the policy will terminate 31 days after we have mailed notice of termination to you (and to any assignee of record at such assignee’s last known address) specifying the amount that must be paid to avoid termination, unless a repayment of at least the amount specified is made within that period. Policy loans may also result in adverse tax consequences under certain circumstances (see “Tax considerations”).

Description of charges at the policy level

Deduction from premium payments

Premium charge

A charge to help defray our sales costs and related taxes.

Enhanced Cash Value Rider charge

A charge imposed if you elect this rider. This charge is deducted only from premiums received in the first two policy years. The charge is 2% of premiums received in the first two policy years until the total charges deducted equals 2% of one year’s Target Premium. See “Optional supplementary benefit riders you can add.”

Deductions from policy value

Administrative charge

A monthly charge to help cover our administrative costs. This charge is not currently imposed but we reserve the right to do so.

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Base Face Amount charge

A monthly charge for the first 10 policy years to primarily help cover sales costs. To determine the charge we multiply the amount of Base Face Amount at issue by a rate which varies by the insured persons’ sex, age, death benefit option and risk classification at issue.

Supplemental Face Amount charge

A monthly charge for the first 10 policy years to primarily help cover sales costs. To determine the charge we multiply the amount of Supplemental Face Amount at issue by a rate which varies by the insured persons’ sex, age, death benefit option and risk classification at issue.

Unscheduled Supplemental Face Amount Increase charge

A charge assessed against the policy value for each unscheduled increase in Supplemental Face Amount. The charge is determined by multiplying the amount of the unscheduled increase in Supplemental Face Amount by the applicable rate. See the Fee Table section for additional information.

Cost of insurance charge

A monthly charge for the cost of insurance. To determine the charge, we multiply the net amount of insurance for which we are then at risk by a cost of insurance rate. The rate is derived from an actuarial table. The table in your policy will show the maximum cost of insurance rates. The cost of insurance rates that we currently apply are generally less than the maximum rates. The current rates will never be more than the maximum rates shown in the policy. The cost of insurance rates we use will depend on the age at issue, the insurance risk characteristics and (usually) gender of the insured persons, and the length of time the policy has been in effect. Regardless of the table used, cost of insurance rates generally increase each year that you own your policy, as the insured persons’ age increases. (The insured person’s “age” on any date is his or her age on the birthday nearest that date.) For death benefit Option 1, the net amount at risk is equal to the greater of zero, or the result of (a) minus (b) where:

(a) is the death benefit (excluding the Four Year Term Rider) as of the first day of the Policy Month, divided by 1.0024663; and

(b) is the policy value as of the first day of the Policy Month after the deduction of all other monthly deductions.

Since the net amount at risk for death benefit Option 1 is based on a formula that includes as factors the death benefit and the policy value, the net amount at risk is affected by the investment performance of the investment accounts chosen, payment of premiums and charges assessed.

If the minimum death benefit is greater than the death benefit (excluding the Four Year Term Rider), the cost of insurance charge will reflect the amount of that additional benefit.

For death benefit Option 2, the net amount at risk is equal to the death benefit (excluding the Four Year Term Rider), divided by 1.0024663.

Asset-based risk charge

A monthly charge to help cover sales, administrative and other costs. The charge is a percentage of that portion of your policy value allocated to investment accounts. This charge only applies to that portion of the policy value held in the investment accounts. The charge determined does not apply to any fixed account.

Loan interest rate

The maximum loan interest charged on any loan is shown in the Fee Tables and described under “Policy loans” in this prospectus.

Transfer fee

We currently do not impose a fee upon transfers of policy value among the investment options, but reserve the right to do so in the policy (see “Transfers of existing policy value”).

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Supplementary benefits charges

Monthly charges for any supplementary insurance benefits added to the policy by means of a rider.

Additional information about how certain policy charges work

Sales expenses and related charges

The premium and Face Amount charges help to compensate us for the cost of selling our policies (see “Description of charges at the policy level”). The amount of the charges in any policy year does not specifically correspond to sales expenses for that year. We expect to recover our total sales expenses over the life of the policies. To the extent that the premium and Face Amount charges do not cover total sales expenses, the sales expenses may be recovered from other sources, including gains from the asset-based risk charge and other gains with respect to the policies, or from our general assets. Similarly, administrative expenses not fully recovered by the administrative charge may also be recovered from such other sources.

Method of deduction

We deduct the monthly deductions described in the Fee Tables section from your policy’s accounts (fixed and investment) in proportion to the amount of policy value you have in each, unless otherwise specified by you.

Reduced charges for eligible classes

The charges otherwise applicable may be reduced with respect to policies issued to a class of associated individuals or to a trustee, employer or similar entity where we anticipate that the sales to the members of the class will result in lower than normal sales or administrative expenses, lower taxes or lower risks to us. We will make these reductions in accordance with our rules in effect at the time of the application for a policy. The factors we consider in determining the eligibility of a particular group for reduced charges, and the level of the reduction, are as follows: the nature of the association and its organizational framework; the method by which sales will be made to the members of the class; the facility with which premiums will be collected from the associated individuals and the association’s capabilities with respect to administrative tasks; the anticipated lapse and surrender rates of the policies; the size of the class of associated individuals and the number of years it has been in existence; the aggregate amount of premiums paid; and any other such circumstances which result in a reduction in sales or administrative expenses, lower taxes or lower risks. Any reduction in charges will be reasonable and will apply uniformly to all prospective policy purchasers in the class and will not unfairly discriminate against any owner.

Other charges we could impose in the future

Except for a portion of the premium charge, we currently make no charge for our Federal income taxes. However, if we incur, or expect to incur, income taxes attributable to any subaccount of the Account or this class of policies in future years, we reserve the right to make a charge for such taxes. Any such charge would reduce what you earn on any affected investment accounts. However, we expect that no such charge will be necessary.

We also reserve the right to increase the premium charge in order to correspond with changes in the state premium tax levels or in the Federal income tax treatment of the deferred acquisition costs for this type of policy. Currently, state premium tax levels range from 0% to 3.5%.

Under current laws, we may incur state and local taxes (in addition to premium taxes) in several states. At present, these taxes are not significant. If there is a material change in applicable state or local tax laws, we may make charges for such taxes.

Description of charges at the portfolio level

The portfolios must pay investment management fees and other operating expenses. These fees and expenses (shown in the tables of portfolio annual expenses under “Fee Tables”) are different for each portfolio and reduce the investment return of each portfolio. Therefore, they also indirectly reduce the return you will earn on any investment accounts you select. Expenses of the portfolios are not fixed or specified under the terms of the policy, and those expenses may vary from year to year.

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Other policy benefits, rights and limitations

Optional supplementary benefit riders you can add

When you apply for a policy, you can request any of the optional supplementary benefit riders that we then make available. Availability of any rider, the benefits it provides and the charges for it may vary by state. Our rules and procedures will govern eligibility for any rider and, in some cases, the configuration of the actual rider benefits. You should consider how an optional rider may impact your overall insurance and financial objectives. Each rider contains specific details that you should review before you decide to choose the rider. Your registered representative can provide you with additional information regarding these riders. Charges for most riders will be deducted from the policy value. We may change these charges (or the rates that determine them), but not above any applicable maximum amount stated in the Policy Specifications page of your policy. We may add to, delete from or modify the list of optional supplementary benefit riders.

Enhanced Cash Value Rider

You may elect to have your policy issued with an optional Enhanced Cash Value Rider. This rider provides an enhanced cash value benefit (in addition to the surrender value) if you surrender the policy within the first 9 years. The benefit is equal to a percentage of cumulative premiums paid in the first two policy years, up to the Target Premium shown in the policy. The percentage used in each policy year will be specified in the rider form. Since the rider may increase the amount of insurance for which we are at risk, it may increase the amount of the insurance charge described under “Deductions from policy value.” The maximum amount you may borrow from the policy or withdraw from the policy through partial withdrawals is not affected by this rider. This rider can only be elected at the time of application for the policy. This rider may not be available in all states. This rider may not be elected with the Guideline Premium Test.

Policy Split Option Rider

At the time of policy issue, you may elect this rider that will permit the Total Face Amount to be evenly split into two separate policies, one for each insured person, but only if the insured persons get divorced or certain Federal tax law changes occur. The rider may be canceled at any time, but it will automatically terminate upon the death of either insured person. If you elect the Return of Premium Death Benefit Rider or if you elect increases to your Supplemental Face Amount, you may not elect this rider.

Return of Premium Death Benefit Rider

You may elect to have your policy issued with an optional Return of Premium Death Benefit Rider. This rider provides an additional death benefit payable upon the death of the last surviving insured person. The Return of Premium Death Benefit has an initial value equal to your initial premium times the “Percentage of Premium” you select (which may range between 0% and 100%). We show the Percentage of Premium you select in the Policy Specifications page. If you elect the Policy Split Option rider or if you elected increases to your Supplemental Face Amount, you may not elect this rider.

You may increase the initial Return of Premium Death Benefit in two ways:

• You may make additional premium payments. We will apply the Percentage of Premium stated in the Policy Specifications page to the premium payment and increase your Return of Premium Death Benefit by that amount at the time you make the payment.

• You may elect a Return of Premium Death Benefit Increase Rate. You may elect an annual effective rate from 0 - 5% to increase your Return of Premium Death Benefit. We show the rate you elect in the Policy Specifications page. The Return of Premium Death Benefit will accumulate monthly at the Return of Premium Death Benefit Increase Rate you select.

This benefit is only available to you if you elect death benefit Option 1. If you elect the Policy Split Option rider or if you elect increases to your Supplemental Face Amount, you may not elect this rider.

Overloan Protection Rider

This rider will prevent your policy from lapsing on any date if policy debt exceeds the death benefit. The benefit is subject to a number of eligibility requirements relating to, among other things, the number of years the policy has been in force, the attained age of the younger insured person, the death benefit option elected and the tax status of the policy.

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When the Overloan Protection benefit in this rider is invoked, all values in the investment accounts are immediately transferred to the fixed account and will continue to grow at the current fixed account interest rate. Transfer fees do not apply to these transfers. Thereafter, policy changes and transactions are limited as set forth in the rider; for example, death benefit increases or decreases, additional premium payments, policy loans, withdrawals, surrender and transfers are no longer allowed. Any outstanding policy debt will remain. Interest will continue to be charged at the policy’s specified loan interest rate, and the policy’s loan account will continue to be credited with the policy’s loan interest credited rate. Any supplementary benefit rider requiring a monthly deduction will automatically be terminated.

When the Overloan Protection Rider causes the policy to be converted into a fixed policy, there is risk that the Internal Revenue Service could contend that the policy has been effectively terminated and that the outstanding loan balance should be treated as a distribution. Depending on the circumstances, all or part of such deemed distribution may be taxable as income. You should consult a tax adviser as to the risks associated with the Overloan Protection Rider.

Four Year Term Rider

Subject to our underwriting practices, you may be eligible to elect the Four Year Term Rider at the time of policy issue. This rider provides an additional death benefit if the death of the last surviving insured person occurs during the four year period following policy issue. This rider may also be referred to as the Estate Preservation Rider. The benefit will take effect on the Policy Date stated in your Policy Specifications page and will terminate four years from that date. You may not renew this benefit once it has been terminated.

We will reduce the amount of insurance under this benefit proportionally upon the occurrence of any reduction in the Total Face Amount of your policy or upon a partial withdrawal. On receiving due proof of death of the last surviving insured person, we will pay the death benefit amount to the same beneficiary and in the same manner as the proceeds payable under your policy.

We do not currently charge a separate fee for this rider. If you elect the Return of Premium Death Benefit Rider or if you elect increases to your Supplemental Face Amount, you may not elect this rider.

Enhanced Yield Fixed Account Rider

You may elect to allocate your premiums or policy value to the enhanced yield fixed account that we offer by rider. Obligations under the enhanced yield fixed account are backed by our general account. We will credit interest at the rate we declare prospectively. The rate of interest will be based on our expectations for the enhanced yield fixed account’s future investment earnings, persistency, mortality, expenses and reinsurance costs and future tax, reserve and capital requirements, but in no event will the minimum amount be less than the rate shown in your policy and as described under “The fixed account options” in this prospectus. Additional transfer restrictions apply to amounts in an enhanced yield fixed account (see “Transfers of existing policy value”). We currently do not charge a separate fee for this rider.

Variations in policy terms

Insurance laws and regulations apply to us in every state in which our policies are sold. As a result, various terms and conditions of your insurance coverage may vary from the terms and conditions described in this prospectus, depending upon where you reside. These variations will be reflected in your policy or in endorsements attached to your policy.

We may vary the charges and other terms of our policies where special circumstances result in sales or administrative expenses, mortality risks or other risks that are different from those normally associated with the policies. These include the type of variations discussed under “Reduced charges for eligible classes.” No variation in any charge will exceed any maximum stated in this prospectus with respect to that charge.

Any variation discussed above will be made only in accordance with uniform rules that we adopt and that we apply fairly to our customers.

Procedures for issuance of a policy

Generally, the policy is available with a minimum Total Face Amount at issue of $250,000 and a minimum Base Face Amount at issue of $100,000. At the time of issue, each insured person must have an attained age of no more than 90. Each insured person must meet certain health and other insurance risk criteria called “underwriting standards.”

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Policies issued in Montana or in connection with certain employee plans will not directly reflect the sex of the insured persons in either the premium rates or the charges or values under the policy.

Commencement of insurance coverage

After you apply for a policy, it can sometimes take up to several weeks for us to gather and evaluate all the information we need to decide whether to issue a policy to you and, if so, what the insured persons’ risk classification should be. After we approve an application for a policy and assign an appropriate insurance risk classification, we will prepare the policy for delivery. We will not pay a death benefit under a policy unless the policy is in effect when the last surviving insured person dies (except for the circumstances described under “Temporary coverage prior to policy delivery” below).

The policy will take effect only if all of the following conditions are satisfied.

• The policy is delivered to and received by the applicant

• The Minimum Initial Premium is received by us

• Each insured person is living and there has been no deterioration in the insurability of the insured person since the date of the application

The date all of the above conditions are satisfied is referred to in this prospectus as the “Contract Completion Date.” If all of the above conditions are satisfied, the policy will take effect on the date shown in the policy as the “Policy Date.” That is the date on which we begin to deduct monthly charges. Policy months, policy years and policy anniversaries are all measured from the Policy Date.

Backdating

Under limited circumstances, we may backdate a policy, upon request, by assigning a Policy Date earlier than the date the application is signed. However, in no event will a policy be backdated earlier than the earliest date allowed by state law, which is generally three months to one year prior to the date of application for the policy. The most common reasons for backdating are to preserve a younger age at issue for one or both of the insured persons or to retain a common monthly deduction date in certain corporate-owned life insurance cases involving multiple policies issued over time. If used to preserve age, backdating will result in lower insurance charges. However, monthly deductions will begin earlier than would otherwise be the case. Monthly deductions for the period the Policy Date is backdated will actually be deducted from policy value on the Contract Completion Date.

Temporary coverage prior to policy delivery

If a specified amount of premium is paid with the application for a policy and other conditions are met, we will provide temporary survivorship term life insurance coverage on the insured persons for a period prior to the time coverage under the policy takes effect. Such temporary survivorship term coverage will be subject to the terms and conditions described in the Temporary Life Insurance Agreement and Receipt attached to the application for the policy, including conditions to coverage and limits on amount and duration of coverage.

Monthly deduction dates

Each charge that we deduct monthly is assessed against your policy value at the close of business on the Policy Date and at the close of the first day in each subsequent policy month.

Changes that we can make as to your policy

We reserve the right to make any changes in the policy necessary to ensure the policy is within the definition of life insurance under the Federal tax laws and is in compliance with any changes in Federal or state tax laws.

In our policies, we reserve the right to make certain changes if they would serve the best interests of policy owners or would be appropriate in carrying out the purposes of the policies. These changes include those listed below.

• Changes necessary to comply with or obtain or continue exemptions under the Federal securities laws

• Combining or removing fixed accounts or investment accounts

• Changes in the form of organization of any separate account

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Any such changes will be made only to the extent permitted by applicable laws and only in the manner permitted by such laws. When required by law, we will obtain your approval of the changes and the approval of any appropriate regulatory authority.

The owner of the policy

Who owns the policy? That’s up to the person who applies for the policy. The owner of the policy is the person who can exercise most of the rights under the policy, such as the right to choose the accounts in which to invest or the right to surrender the policy. In many cases, the person buying the policy is also the person who will be the owner. However, the application for a policy can name another person or entity (such as a trust) as owner. Whenever we’ve used the term “you” in this prospectus, we’ve assumed that the reader is the person who has whatever right or privilege is being discussed. There may be tax consequences if the owner and the insured person are different, so you should discuss this issue with your tax adviser.

While either of the insured persons is alive, you will have a number of options under the policy. These options include those listed below.

• Determine when and how much you invest in the various accounts

• Borrow or withdraw amounts you have in the accounts

• Change the beneficiary who will receive the death benefit

• Change the amount of insurance

• Turn in (i.e., “surrender”) the policy for the full amount of its net cash surrender value

• Choose the form in which we will pay out the death benefit or other proceeds

It is possible to name so-called “joint owners” of the policy. If more than one person owns a policy, all owners must join in most requests to exercise rights under the policy.

Policy cancellation right

You have the right to cancel your policy within 10 days after you receive it (the period may be longer in some states). This is often referred to as the “free look” period. During this period, your premiums will be allocated as described under “Processing premium payments” in this prospectus. To cancel your policy, simply deliver or mail the policy to:

• John Hancock USA at one of the addresses shown on the back cover of this prospectus, or

• the John Hancock USA representative who delivered the policy to you.

The date of cancellation will be the date of such mailing or delivery. In most states, you will receive a refund of any premiums you’ve paid. In some states, the refund will be your policy value on the date of cancellation.

Reports that you will receive

At least annually, we will send you a statement setting forth at least the following information as of the end of the most recent reporting period: the amount of the death benefit, the portion of the policy value in either fixed account and in each investment account, premiums received and charges deducted from premiums since the last report, any outstanding policy loan (and interest charged for the preceding policy year), and any further information required by law. Moreover, you also will receive confirmations of premium payments, transfers among accounts, policy loans, partial withdrawals and certain other policy transactions.

Semiannually we will send you a report containing the financial statements of the portfolios, including a list of securities held in each portfolio.

Assigning your policy

You may assign your rights in the policy to someone else as collateral for a loan or for some other reason. Assignments do not require the consent of any revocable beneficiary. A copy of the assignment must be forwarded to us. We are not responsible for any payment we make or any action we take before we receive a copy of the assignment at our Service Office. Nor are we responsible for the validity of the assignment or its efficacy in meeting your objectives. An absolute assignment is a change of ownership. All collateral assignees of record must usually consent to any surrender, withdrawal or loan from the policy.

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When we pay policy proceeds

General

We will ordinarily pay any death benefit, withdrawal, surrender value or loan within 7 days after we receive the last required form or request (and, with respect to the death benefit, any other documentation that may be required). As permitted by state law and our current administrative procedures, death claim proceeds may be placed into an interest-bearing John Hancock retained asset account in the beneficiary’s name. We will provide the beneficiary with a checkbook, so checks may be written for all or a part of the proceeds. The retained asset account is part of our general account and is subject to the claims of our creditors. It is not a bank account and it is not insured by the FDIC or any other government agency. We may also in the future direct proceeds from surrenders into a John Hancock retained asset account. Please contact our Service Office for more information.

Delay to challenge coverage

We may challenge the validity of your insurance policy based on any material misstatements made to us in the application for the policy. We cannot make such a challenge, however, beyond certain time limits that are specified in the policy.

Delay for check clearance

We reserve the right to defer payment of that portion of your policy value that is attributable to a premium payment made by check for a reasonable period of time (not to exceed 15 days) to allow the check to clear the banking system.

Delay of separate account proceeds

We reserve the right to defer payment of any death benefit, loan or other distribution that is derived from an investment account if (1) the New York Stock Exchange is closed (other than customary weekend and holiday closings) or trading on the New York Stock Exchange is restricted; (2) an emergency exists, as determined by the SEC, as a result of which disposal of securities is not reasonably practicable or it is not reasonably practicable to fairly determine the policy value; or (3) the SEC by order permits the delay for the protection of owners. Transfers and allocations of policy value among the investment accounts may also be postponed under these circumstances. If we need to defer calculation of separate account values for any of the foregoing reasons, all delayed transactions will be processed at the next values that we do compute.

Delay of general account surrender proceeds

State laws allow us to defer payment of any portion of the net cash surrender value derived from any fixed account for up to 6 months. These laws were enacted many years ago to help insurance companies in the event of a liquidity crisis.

How you communicate with us

General rules

You should mail or express all checks and money orders for premium payments and loan repayments to the John Hancock USA Service Office at the appropriate address shown on the back cover.

Under our current rules, certain requests must be made in writing and be signed and dated by you. Those requests include the ones listed below.

• loans

• surrenders or withdrawals

• change of death benefit option

• increase or decrease in Total Face Amount

• change of beneficiary

• election of payment option for policy proceeds

• tax withholding elections

• election of telephone/internet transaction privilege

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The following requests may be made either in writing (signed and dated by you) or by telephone or fax or through the Company’s secured website, if a special form is completed (see “Telephone, facsimile and internet transactions” below).

• transfers of policy value among accounts

• change of allocation among accounts for new premium payments

You should mail or express all written requests to our Service Office at the appropriate address shown on the back cover. You should also send notice of the insured person’s death and related documentation to our Service Office. We do not consider that we’ve “received” any communication until such time as it has arrived at the proper place and in the proper and complete form.

We have special forms that should be used for a number of the requests mentioned above. You can obtain these forms from our Service Office or your John Hancock USA representative. Each communication to us must include your name, your policy number and the name of each of the insured persons. We cannot process any request that doesn’t include this required information. Any communication that arrives after the close of our business day, or on a day that is not a business day, will be considered “received” by us on the next following business day. Our business day currently closes at 4:00 p.m. Eastern time, but special circumstances (such as suspension of trading on a major exchange) may dictate an earlier closing time.

Telephone, facsimile and internet transactions

If you complete a special authorization form, you can request transfers among accounts and changes of allocation among accounts simply by telephoning us at 1-800-521-1234 or by faxing us at 617-572-4702 or through the Company’s secured website. Any fax or internet request should include your name, daytime telephone number, policy number and, in the case of transfers and changes of allocation, the names of the accounts involved. We will honor telephone and internet instructions from anyone who provides the correct identifying information, so there is a risk of loss to you if this service is used by an unauthorized person. However, you will receive written confirmation of all telephone/internet transactions. There is also a risk that you will be unable to place your request due to equipment malfunction or heavy phone line or internet usage. If this occurs, you should submit your request in writing.

If you authorize telephone or internet transactions, you will be liable for any loss, expense or cost arising out of any unauthorized or fraudulent telephone or internet instructions which we reasonably believe to be genuine, unless such loss, expense or cost is the result of our mistake or negligence. We employ procedures which provide safeguards against the execution of unauthorized transactions which are reasonably designed to confirm that instructions received by telephone or internet are genuine. These procedures include requiring personal identification, the use of a unique password for internet authorization, recording of telephone calls, and providing written confirmation to the owner. If we do not employ reasonable procedures to confirm that instructions communicated by telephone or internet are genuine, we may be liable for any loss due to unauthorized or fraudulent instructions.

As stated earlier in this prospectus, the policies are not designed for professional market timing organizations or other persons or entities that use programmed or frequent transfers among investment options. To discourage disruptive frequent trading, we have imposed certain transfer restrictions (see “Transfers of existing policy value”). In addition, we also reserve the right to change our telephone, facsimile and internet transaction privileges outlined in this section at any time, and to suspend or terminate any or all of those privileges with respect to any owners who we feel are abusing the privileges to the detriment of other owners.

Distribution of policies

John Hancock Distributors LLC (“JH Distributors”), a Delaware limited liability company affiliated with us, is the principal distributor and underwriter of the securities offered through 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 Trust, whose securities are used to fund certain investment accounts under the policies and under other annuity and life insurance products we offer.

JH Distributors’ principal address is 200 Bloor Street East, Toronto, Canada M4W 1E5 and it also maintains offices with us at 197 Clarendon Street, Boston, Massachusetts 02116. JH Distributors is a broker-dealer registered under the Securities Exchange Act of 1934 (the “1934 Act”) and a member of the Financial Industry Regulatory Authority (“FINRA”).

We offer the policies for sale through individuals who are licensed as insurance agents and who are registered representatives of broker-dealers that have entered into selling agreements with JH Distributors. These broker-dealers may include our affiliate Signator Investors, Inc. In addition, we, either directly or through JH Distributors, have entered into

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agreements with other financial intermediaries that provide marketing, sales support and certain administrative services to help promote the policies (“financial intermediaries”). In a limited number of cases, we have entered into loans, leases or other financial agreements with these broker-dealers or financial intermediaries or their affiliates.

Compensation

The broker-dealers and other financial intermediaries that distribute or support the marketing of our policies may be compensated by means of various compensation and revenue sharing arrangements. A general description of these arrangements is set out below under “Standard compensation” and “Additional compensation and revenue sharing.” These arrangements may differ between firms, and not all broker-dealers or financial intermediaries will receive the same compensation and revenue sharing benefits for distributing our policies. Also, a broker-dealer may receive more or less compensation or other benefits for the promotion and sale of our policy than it would expect to receive from another issuer.

Under their own arrangements, broker-dealers determine how much of any amounts received from us is to be paid to their registered representatives. Our affiliated broker-dealer may pay its registered representatives additional compensation and benefits, such as bonus payments, expense payments, health and retirement benefits or the waiver of overhead costs or expenses in connection with the sale of the policies that they would not receive in connection with the sale of policies issued by unaffiliated companies.

Policy owners do not pay any compensation or revenue sharing benefits 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 fund’s distribution plan (“12b-1 fees”), the fees and charges imposed under the policy and other sources.

You should contact your registered representative for more information on compensation arrangements in connection with your purchase of a policy. We provide additional information on special compensation or reimbursement arrangements involving broker-dealers and other financial intermediaries in the Statement of Additional Information, which is available upon request.

Standard compensation. JH Distributors pays compensation to broker-dealers for the promotion and sale of the policies, and for providing ongoing service in relation to policies that have already been purchased. We may also pay a limited number of broker-dealers commissions or overrides to “wholesale” the policies; that is, to provide marketing support and training services to the broker-dealer firms that do the actual selling.

The compensation JH Distributors pays to broker-dealers may vary depending on the selling agreement. The compensation paid is not expected to exceed the following schedule: policy year 1, 113% of the premium paid up to the Target Premium and 5% of any premium paid in excess of Target Premium; policy years 2-5, 6% of the premium paid up to the Target Premium and 5% of any premium paid in excess of Target Premium; policy years 6-10, 5% of the premium paid up to the Target Premium and 5% of any premium paid in excess of Target Premium; and policy years 11+, 3% of premium paid up to the Target Premium and 2% of any premium paid in excess of Target Premium. In addition, a broker-dealer may receive compensation in an amount per $1,000 of unscheduled increase in Supplemental Face Amount. This compensation schedule is exclusive of additional compensation and revenue sharing and inclusive of overrides and expense allowances paid to broker-dealers for sale of the policies (not including riders).

Additional compensation and revenue sharing. To the extent permitted by SEC and FINRA rules and other applicable laws and regulations, we may enter into special compensation or reimbursement arrangements (“revenue sharing”), either directly or through JH Distributors, with selected broker-dealers and other financial intermediaries. In consideration of these arrangements, a firm may feature our policy in its sales system, give us preferential access to sales staff, or allow JH Distributors or its affiliates to participate in conferences, seminars or other programs attended by the firm’s sales force. We hope to benefit from these revenue sharing and other arrangements through increased sales of our policies.

Selling broker-dealers and other financial intermediaries may receive, directly or indirectly, additional payments in the form of cash, other compensation or reimbursement. These additional compensation or reimbursement arrangements may include, for example, payments in connection with the firm’s “due diligence” examination of the policies, payments for providing conferences or seminars, sales or training programs for invited registered representatives and other employees, payment for travel expenses, including lodging, incurred by registered representatives and other employees for such seminars or training programs, seminars for the public or client seminars, advertising and sales campaigns regarding the policies, payments to assist a firm in connection with its systems, operations and marketing expenses and/or other events or activities sponsored by the firms. We may contribute to, as well as sponsor, various educational programs, sales promotions, and/or

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other contests in which participating firms and their sales persons may receive gifts and prizes such as merchandise, cash or other rewards as may be permitted under FINRA rules and other applicable laws and regulations.

Tax considerations

This description of Federal income tax consequences is only a brief summary and is neither exhaustive nor authoritative. It was written to support the promotion of our products. It does not constitute legal or tax advice, and it is not intended to be used and cannot be used to avoid any penalties that may be imposed on you. Tax consequences will vary based on your own particular circumstances, and for further information you should consult a qualified tax adviser. Federal, state and local tax laws, regulations and interpretations can change from time to time. As a result, the tax consequences to you and the beneficiary may be altered, in some cases retroactively. The policy may be used in various arrangements, including non-qualified deferred compensation or salary continuation plans, split dollar insurance plans, executive bonus plans, retiree medical benefit plans and others. The tax consequences of such plans may vary depending on the particular facts and circumstances of each individual arrangement. Therefore, if the value of using the policy in any such arrangement depends in part on the tax consequences, a qualified tax adviser should be consulted for advice.

General

We are taxed as a life insurance company. Under current tax law rules, we include the investment income (exclusive of capital gains) of the Separate Account in our taxable income and take deductions for investment income credited to our “policy holder 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 the Separate Account for any resulting income tax costs, other than a “DAC tax” charge we may impose against the Separate Account to compensate us for the finance costs attributable to the acceleration of our income tax liabilities by reason of a “DAC tax adjustment.” We also claim certain tax credits or deductions relating to foreign taxes paid and dividends received by the series funds. These benefits can be material. We do not pass these benefits through to the Separate Account, principally because: (i) the deductions and credits are allowed to us and not the policy owners under applicable tax law; and (ii) the deductions and credits do not represent investment return on the Separate Account assets that are passed through to policy owners.

The policies permit us to deduct a charge for any taxes we incur that are attributable to the operation or existence of the policies or the Separate Account. Currently, we do not anticipate making any specific charge for such taxes other than any DAC tax charge and state and local premium 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.

Death benefit proceeds and other policy distributions

Generally, death benefits paid under policies such as yours are not subject to income tax. Earnings on your policy value are ordinarily not subject to income tax as long as we don’t pay them out to you. If we do pay out any amount of your policy value upon surrender or partial withdrawal, all or part of that distribution would generally be treated as a return of the premiums you’ve paid and not subjected to income tax. However certain distributions associated with a reduction in death benefit or other policy benefits within the first 15 years after issuance of the policy are ordinarily taxable in whole or in part. Amounts you borrow are generally not taxable to you.

However, some of the tax rules change if your policy is found to be a modified endowment contract. This can happen if you’ve paid premiums in excess of limits prescribed by the tax laws. Additional taxes and penalties may be payable for policy distributions of any kind, including loans. (See “7-pay premium limit and modified endowment contract status” below.)

We expect the policy to receive the same Federal income and estate tax treatment as fixed benefit life insurance policies. Section 7702 of the Internal Revenue Code (the “Code”) defines a life insurance contract for Federal tax purposes. For a policy to be treated as a life insurance contract, it must satisfy either the cash value accumulation test or the guideline premium test. These tests limit the amount of premium that you may pay into the policy. We will monitor compliance with these standards. If we determine that a policy does not satisfy section 7702, we may take whatever steps are appropriate and reasonable to bring it into compliance with section 7702.

If the policy complies with section 7702, the death benefit proceeds under the policy ordinarily should be excludable from the beneficiary’s gross income under section 101 of the Code.

Increases in policy value as a result of interest or investment experience will not be subject to Federal income tax unless and until values are received through actual or deemed distributions. In general, unless the policy is a modified endowment

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contract, the owner will be taxed on the amount of distributions that exceed the premiums paid under the policy. An exception to this general rule occurs in the case of a decrease in the policy’s death benefit or any other change that reduces benefits under the policy in the first 15 years after the policy is issued and that results in a cash distribution to the policy owner. Changes that reduce benefits include partial withdrawals, death benefit option changes, and distributions required to keep the policy in compliance with section 7702. For purposes of this rule any distribution within the two years immediately before a reduction in benefits will also be treated as if it caused the reduction. A cash distribution that reduces policy benefits will be taxed in whole or in part (to the extent of any gain in the policy) under rules prescribed in section 7702. The taxable amount is subject to limits prescribed in section 7702(f)(7). Any taxable distribution will be ordinary income to the owner (rather than capital gain).

Distributions for tax purposes include amounts received upon surrender or partial withdrawals. You may also be deemed to have received a distribution for tax purposes if you assign all or part of your policy rights or change your policy’s ownership.

It is possible that, despite our monitoring, a policy might fail to qualify as a life insurance contract under section 7702 of the Code. This could happen, for example, if we inadvertently failed to return to you any premium payments that were in excess of permitted amounts, or if any of the funds failed to meet certain investment diversification or other requirements of the Code. If this were to occur, you would be subject to income tax on the income credited to the policy from the date of issue to the date of the disqualification and for subsequent periods.

Tax consequences of ownership or receipt of policy proceeds under Federal, state and local estate, inheritance, gift and other tax laws will depend on the circumstances of each owner or beneficiary. If the person insured by the policy is also its owner, either directly or indirectly through an entity such as a revocable trust, the death benefit will be includible in his or her estate for purposes of the Federal estate tax. If the owner is not the person insured, the value of the policy will be includible in the owner’s estate upon his or her death. Even if ownership has been transferred, the death proceeds or the policy value may be includible in the former owner’s estate if the transfer occurred less than three years before the former owner’s death or if the former owner retained certain kinds of control over the policy. You should consult your tax adviser regarding these possible tax consequences.

Because there may be unfavorable tax consequences (including recognition of taxable income and the loss of income tax-free treatment for any death benefit payable to the beneficiary), you should consult a qualified tax adviser prior to changing the policy’s ownership or making any assignment of ownership interests.

Policy loans

We expect that, except as noted below (see “7-pay premium limit and modified endowment contract status”), loans received under the policy will be treated as indebtedness of an owner and that no part of any loan will constitute income to the owner. However, if the policy terminates for any reason other than the payment of the death benefit, the amount of any outstanding loan that was not previously considered income will be treated as if it had been distributed to the owner upon such termination. This could result in a considerable tax bill. Under certain circumstances involving large amounts of outstanding loans, you might find yourself having to choose between high premiums required to keep your policy from lapsing and a significant tax burden if you allow the lapse to occur.

Diversification rules and ownership of the Account

Your policy will not qualify for the tax benefits of a life insurance contract unless the Account follows certain rules requiring diversification of investments underlying the policy. In addition, the rules require that the policy owner not have “investment control” over the underlying assets.

In certain circumstances, the owner of a variable life insurance policy may be considered the owner, for Federal income tax purposes, of the assets of the separate account used to support the policy. In those circumstances, income and gains from the separate account assets would be includible in the policy owner’s gross income. The Internal Revenue Service (“IRS”) has stated in published rulings that a variable policy owner will be considered the owner of separate account assets if the policy owner possesses incidents of ownership in those assets, such as the ability to exercise investment control over the assets. A Treasury Decision issued in 1986 stated that guidance would be issued in the form of regulations or rulings on the “extent to which Policyholders may direct their investments to particular sub-accounts of a separate account without being treated as owners of the underlying assets.” As of the date of this prospectus, no comprehensive guidance on this point has been issued. In Rev. Rul. 2003-91, however, the IRS ruled that a contract holder would not be treated as the owner of assets underlying a variable life insurance or annuity contract despite the owner’s ability to allocate funds among as many as twenty subaccounts.

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The ownership rights under your policy are similar to, but different in certain respects from, those described in IRS rulings in which it was determined that policyholders were not owners of separate account assets. Since you have greater flexibility in allocating premiums and policy values than was the case in those rulings, it is possible that you would be treated as the owner of your policy’s proportionate share of the assets of the Account.

We do not know what future Treasury Department regulations or other guidance may require. We cannot guarantee that the funds will be able to operate as currently described in the series funds’ prospectuses, or that a series fund will not have to change any fund’s investment objectives or policies. We have reserved the right to modify your policy if we believe doing so will prevent you from being considered the owner of your policy’s proportionate share of the assets of the Account, but we are under no obligation to do so.

7-pay premium limit and modified endowment contract status

At the time of policy issuance, we will determine whether the Planned Premium schedule will exceed the 7-pay limit discussed below. If so, our standard procedures prohibit issuance of the policy unless you sign a form acknowledging that fact.

The 7-pay limit is the total of net level premiums that would have been payable at any time for a comparable fixed policy to be fully “paid-up” after the payment of 7 equal annual premiums. “Paid-up” means that no further premiums would be required to continue the coverage in force until maturity, based on certain prescribed assumptions. If the total premiums paid at any time during the first 7 policy years exceed the 7-pay limit, the policy will be treated as a modified endowment contract, which can have adverse tax consequences.

Policies classified as modified endowment contracts are subject to the following tax rules:

• First, all partial withdrawals from such a policy are treated as ordinary income subject to tax up to the amount equal to the excess (if any) of the policy value immediately before the distribution over the investment in the policy at such time. If you own any other modified endowment contracts issued to you in the same calendar year by the same insurance company or its affiliates, their values will be combined with the value of the policy from which you take the withdrawal for purposes of determining how much of the withdrawal is taxable as ordinary income.

• Second, loans taken from or secured by such a policy and assignments or pledges of any part of its value are treated as partial withdrawals from the policy and taxed accordingly. Past-due loan interest that is added to the loan amount is treated as an additional loan.

• Third, a 10% additional income tax is imposed on the portion of any distribution (including distributions on surrender) from, or loan taken from or secured by, such a policy that is included in income except where the distribution or loan:

• is made on or after the date on which the policy owner attains age 59 ¹/2;

• is attributable to the policy owner becoming disabled; or

• is part of a series of substantially equal periodic payments for the life (or life expectancy) of the policy owner or the joint lives (or joint life expectancies) of the policy owner and the policy owner’s beneficiary.

These exceptions to the 10% additional tax do not apply in situations where the policy is not owned by an individual.

Furthermore, any time there is a “material change” in a policy, the policy will begin a new 7-pay testing period as if it were a newly-issued policy. The material change rules for determining whether a policy is a modified endowment contract are complex. In general, however, the determination of whether a policy will be a modified endowment contract after a material change depends upon the relationship among the death benefit of the policy at the time of such change, the policy value at the time of the change, and the additional premiums paid into the policy during the seven years starting with the date on which the material change occurs.

Moreover, if there is at any time a reduction in benefits (such as a reduction in the death benefit or the reduction or cancellation of certain rider benefits) under a survivorship policy, the 7-pay limit will generally be recalculated based on the reduced benefits and the policy will be re-tested, using the lower limit, from the date it was issued. If the premiums paid to date at any point after the date of issue are greater than the recalculated 7-pay limit, the policy will become a modified endowment contract.

If your policy is issued as a result of a section 1035 exchange, it may be considered to be a modified endowment contract if the death benefit under the new policy is smaller than the death benefit under the exchanged policy, or if you

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reduce coverage in your new policy after it is issued. Therefore, if you desire to reduce the face amount as part of a 1035 exchange, a qualified tax adviser should be consulted for advice.

All modified endowment contracts issued by the same insurer (or its affiliates) to the same owner during any calendar year generally are required to be treated as one contract for the purpose of applying the modified endowment contract rules. A policy received in exchange for a modified endowment contract will itself also be a modified endowment contract. You should consult your tax adviser if you have questions regarding the possible impact of the 7-pay limit on your policy.

Corporate and H.R. 10 retirement plans

The policy may be acquired in connection with the funding of retirement plans satisfying the qualification requirements of section 401 of the Code. If so, the Code provisions relating to such plans and life insurance benefits thereunder should be carefully scrutinized. We are not responsible for compliance with the terms of any such plan or with the requirements of applicable provisions of the Code.

Withholding

To the extent that policy distributions to you are taxable, they are generally subject to withholding for your Federal income tax liability. However if you reside in the United States, you can generally choose not to have tax withheld from distributions.

Life insurance purchases by residents of Puerto Rico

In Rev. Rul. 2004-75, 2004-31 I.R.B. 109, the Internal Revenue Service ruled that income received by residents of Puerto Rico under a life insurance policy issued by a United States company is U.S.-source income that is subject to United States Federal income tax.

Life insurance purchases by non-resident aliens

If you are not a U.S. citizen or resident, you will generally be subject to U.S. Federal withholding tax on taxable distributions from life insurance policies at a 30% rate, unless a lower treaty rate applies. In addition, you may be subject to state and/or municipal taxes and taxes imposed by your country of citizenship or residence. You should consult with a qualified tax adviser before purchasing a policy.

Financial statements reference

The financial statements of John Hancock USA and the Account can be found in the Statement of Additional Information. The financial statements of John Hancock USA should be distinguished from the financial statements of the Account and should be considered only as bearing upon the ability of John Hancock USA to meet its obligations under the policies.

Registration statement filed with the SEC

This prospectus omits certain information contained in the Registration Statement which has been filed with the SEC. More details may be obtained from the SEC upon payment of the prescribed fee.

Independent registered public accounting firm

The financial statements of John Hancock Life Insurance Company (U.S.A.) at December 31, 2007 and 2006, and for each of the three years in the period ended December 31, 2007, and the financial statements of Separate Account A of John Hancock Life Insurance Company (U.S.A.) at December 31, 2007, and for each of the two years in the period ended December 31, 2007, appearing in the 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.

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In addition to this prospectus, John Hancock USA has filed with the SEC a Statement of Additional Information (the “SAI”) which contains additional information about John Hancock USA and the Account, including information on our history, services provided to the Account and legal and regulatory matters. The SAI and personalized illustrations of death benefits, policy values and surrender values are available, without charge, upon request. You may obtain the personalized illustrations from your John Hancock USA representative. The SAI may be obtained by contacting the John Hancock USA Service Office. You should also contact the John Hancock USA Service Office to request any other information about your policy or to make any inquiries about its operation.

SERVICE OFFICE

Express Delivery	Mail Delivery
Specialty Products	Specialty Products & Distribution
197 Clarendon Street, C-6	P.O. Box 192
Boston, MA 02117	Boston, MA 02117-0192
Phone:	Fax:
1-800-521-1234	617-572-4702

Information about the Account (including the SAI) can be reviewed and copied at the SEC’s Public Reference Branch, 100 F Street, NE, Room 1580, Washington, DC, 20549. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 202-551-5850. Reports and other information about the Account are available on the SEC’s Internet website at http://www.sec.gov. Copies of such information may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC at 100 F Street, NE, Washington, DC 20549-0102.

1940 Act File No. 811-4834 — 1933 Act File No. 333-148991

Statement of Additional Information dated                     , 2008

for interests in

John Hancock Life Insurance Company (U.S.A.) Separate Account A (“Registrant”)

Interests are made available under

MAJESTIC SURVIVORSHIP VULX

a flexible premium variable universal life survivorship insurance policy issued by

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) (“JOHN HANCOCK USA” or “DEPOSITOR”)

This is a Statement of Additional Information (“SAI”). It is not the prospectus. The prospectus, dated the same date as this SAI, may be obtained from a John Hancock USA representative or by contacting the John Hancock USA Servicing Office at Specialty Products, 197 Clarendon Street, C-6, Boston, MA 02117 or telephoning 1-800-827-4546.

TABLE OF CONTENTS

Contents of this SAI	Page No.
Description of the Depositor	2
Description of the Registrant	2
Services	2
Independent Registered Public Accounting Firm	2
Legal and Regulatory Matters	2
Principal Underwriter/Distributor	3
Additional Information About Charges	4
Financial Statements of Registrant and Depositor	F-1

Description of the Depositor

Under the Federal securities laws, the entity responsible for organization of the registered separate account underlying the variable life insurance policy is known as the “Depositor”. The Depositor is John Hancock USA, a stock life insurance company organized under the laws of Maine on August 20, 1955 by a special act of the Maine legislature and redomesticated under the laws of Michigan. We are a licensed life insurance company in the District of Columbia and all states of the United States except New York. Until 2004, John Hancock USA had been known as The Manufacturers Life Insurance Company (U.S.A.).

Our ultimate parent is Manulife Financial Corporation (“MFC”), a publicly traded company based in Toronto, Canada. MFC is the holding company of The Manufacturers Life Insurance Company and its subsidiaries, collectively known as Manulife Financial.

Description of the Registrant

Under the Federal securities laws, the registered separate account underlying the variable life insurance policy is known as the “Registrant.” In this case, the Registrant is John Hancock Life Insurance Company (U.S.A.) Separate Account A (the “Account”), a separate account established by John Hancock USA under Michigan law. The variable investment options shown on page 1 of the prospectus are subaccounts of the Account. The Account meets the definition of “separate account” under the Federal securities laws and is registered as a unit investment trust under the Investment Company Act of 1940 (“1940 Act”). Such registration does not involve supervision by the Securities and Exchange Commission (“SEC”) of the management of the Account or of John Hancock USA.

New subaccounts may be added and made available to policy owners from time to time. Existing subaccounts may be modified or deleted at any time.

Services

Administration of policies issued by John Hancock USA and of registered separate accounts organized by John Hancock USA may be provided by John Hancock Life Insurance Company, or other affiliates. Neither John Hancock USA nor the separate accounts are assessed any charges for such services.

Custodianship and depository services for the Registrant are provided by State Street Bank. State Street Bank’s address is 225 Franklin Street, Boston, Massachusetts, 02110.

Independent Registered Public Accounting Firm

The financial statements of John Hancock Life Insurance Company (U.S.A.) at December 31, 2007 and 2006, and for each of the three years in the period ended December 31, 2007, and the financial statements of Separate Account A of John Hancock Life Insurance Company (U.S.A.) at December 31, 2007, and for each of the two years in the period ended December 31, 2007, 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.

Legal and Regulatory Matters

There are no legal proceedings to which the Depositor, the Account or the principal underwriter is a party or to which the assets of the Account are subject that are likely to have a material adverse effect on the Account or the ability of the principal underwriter to perform its contract with the Account or of the Depositor to meet its obligations under the policies.

On June 25, 2007, John Hancock Investment Management Services, LLC (the “Adviser”) and John Hancock Distributors LLC (the “Distributor”) and two of their affiliates (collectively, the “John Hancock Affiliates”) reached a settlement with the SEC that resolved an investigation of certain practices relating to the John Hancock Affiliates’ variable annuity and mutual fund operations involving directed brokerage and revenue sharing. Under the terms of the settlement, each John Hancock Affiliate was censured and agreed to pay a $500,000 civil penalty to the United States Treasury. In addition, the Adviser and the Distributor agreed to pay disgorgement of $14,838,943 and prejudgment interest of $2,001,999 to the John Hancock Trust funds that participated in the Adviser’s commission recapture program during the period from

2

2000 to April 2004. Collectively, all John Hancock Affiliates agreed to pay a total disgorgement of $16,926,420 and prejudgment interest of $2,361,460 to the entities advised or distributed by John Hancock Affiliates. The Adviser discontinued the use of directed brokerage in recognition of the sale of fund shares in April 2004.

Principal Underwriter/Distributor

John Hancock Distributors LLC (“JH Distributors”), a Delaware limited liability company that we control, is the principal distributor and underwriter of the securities offered through this prospectus. JH Distributors acts as the principal distributor of a number of other annuity and life insurance products we and our affiliates offer. JH Distributors also acts as the principal underwriter of John Hancock Trust (the “Trust”), whose securities are used to fund certain variable investment options under the policies and under other annuity and life insurance products we offer.

JH Distributors’ principal address is 200 Bloor Street East, Toronto, Canada M4W 1E5 and it also maintains offices with us at 197 Clarendon Street, Boston, Massachusetts 02116. JH Distributors is a broker-dealer registered under the Securities Act of 1934 (the “1934 Act”) and is a member of the Financial Industry Regulatory Authority (“FINRA”).

We offer the policies for sale through individuals who are licensed as insurance agents and who are registered representatives of broker-dealers that have entered into selling agreements with JH Distributors. These broker-dealers may include our affiliate Signator Investors, Inc.

The aggregate dollar amount of underwriting commissions paid to JH Distributors by the Depositor and its affiliates in connection with the sale of variable life products in 2007, 2006, and 2005 was $226,336,094, $128,705,303, and $33,325,216, respectively. JH Distributors did not retain any of these amounts during such periods.

The compensation JH Distributors pays to broker-dealers may vary depending on the selling agreement. Compensation is exclusive of additional compensation and revenue sharing and inclusive of overrides and expense allowances paid to broker-dealers for sale of the policies (not including riders). The compensation paid is not expected to exceed the following schedule: policy year 1, 113% of the premium paid up to the target premium and 5% of any premium paid in excess of target premium; policy years 2-5, 6% of the premium paid up to the target premium and 5% of any premium paid in excess of target premium; policy years 6-10, 5% of the premium paid up to the target premium and 5% of any premium paid in excess of target premium; and policy years 11+, 3% of premium paid up to the target premium and 2% of any premium paid in excess of target premium. In addition, a broker-dealer may receive compensation in an amount per $1,000 of unscheduled increase in Supplemental Face Amount.

The registered representative through whom your policy is sold will be compensated pursuant to the registered representative’s own arrangement with his or her broker-dealer. Compensation to broker-dealers for the promotion and sale of the policies is not paid directly by policy owners but will be recouped through the fees and charges imposed under the policy.

Additional compensation and revenue sharing arrangements may be offered to certain broker-dealer firms or other financial intermediaries. The terms of such arrangements may differ among firms we select based on various factors. In general, the arrangements involve three types of payments or any combination thereof:

• Fixed dollar payments: The amount of these payments varies widely. JH Distributors may, for example, make one or more payments in connection with a firm’s conferences, seminars or training programs, seminars for the public, advertising and sales campaigns regarding the policies, to assist a firm in connection with its systems, operations and marketing expenses, or for other activities of a selling firm or wholesaler. JH Distributors may make these payments upon the initiation of a relationship with a firm, and at any time thereafter.

• Payments based upon sales: These payments are based upon a percentage of the total amount of money received, or anticipated to be received, for sales through a firm of some or all of the insurance products that we and/or our affiliates offer. JH Distributors makes these payments on a periodic basis.

• Payments based upon “assets under management”: These payments are based upon a percentage of the policy value of some or all of our (and/or our affiliates’) insurance products that were sold through the firm. JH Distributors makes these payments on a periodic basis.

Our affiliated broker-dealer may pay their respective registered representatives additional cash incentives, such as bonus payments, expense payments, health and retirement benefits or the waiver of overhead costs or expenses in connection with the sale of the policies that they would not receive in connection with the sale of policies issued by unaffiliated companies.

3

Additional Information About Charges

A policy will not be issued until the underwriting process has been completed to the Depositor’s satisfaction. The underwriting process generally includes the obtaining of information concerning your age, medical history, occupation and other personal information. This information is then used to determine the cost of insurance charge.

Reduction In Charges

The policy is available for purchase by corporations and other groups or sponsoring organizations. Group or sponsored arrangements may include reduction or elimination of withdrawal charges and deductions for employees, officers, directors, agents and immediate family members of the foregoing. John Hancock USA reserves the right to reduce any of the Policy’s charges on certain cases where it is expected that the amount or nature of such cases will result in savings of sales, underwriting, administrative, commissions or other costs. Eligibility for these reductions and the amount of reductions will be determined by a number of factors, including the number of lives to be insured, the total premiums expected to be paid, total assets under management for the policyowner, the nature of the relationship among the insured individuals, the purpose for which the policies are being purchased, expected persistency of the individual policies, and any other circumstances which John Hancock USA believes to be relevant to the expected reduction of its expenses. Some of these reductions may be guaranteed and others may be subject to withdrawal or modifications, on a uniform case basis. Reductions in charges will not be unfairly discriminatory to any policyowners. John Hancock USA may modify from time to time, on a uniform basis, both the amounts of reductions and the criteria for qualification.

4

AUDITED CONSOLIDATED FINANCIAL STATEMENTS

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

Years Ended December 31, 2007, 2006, and 2005

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

INDEX TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

Report of Independent Registered Public Accounting Firm	F-2
Audited Consolidated Financial Statements:
Consolidated Balance Sheets as of December 31, 2007 and 2006	F-3
Consolidated Statements of Income for the years ended December 31, 2007, 2006, and 2005	F-4
Consolidated Statements of Changes in Shareholder’s Equity and Comprehensive Income for the years ended December 31, 2007, 2006, and 2005	F-5
Consolidated Statements of Cash Flows for the years ended December 31, 2007, 2006, and 2005	F-6
Notes to Consolidated Financial Statements	F-7

Report of Independent Registered Public Accounting Firm

The Board of Directors

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

We have audited the accompanying consolidated balance sheets of John Hancock Life Insurance Company (U.S.A.) (the Company) as of December 31, 2007 and 2006, and the related consolidated statements of income, changes in shareholder’s equity and comprehensive income, and cash flows for each of the three years in the period ended December 31, 2007. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company’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 Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. 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 consolidated financial position of John Hancock Life Insurance Company (U.S.A.) at December 31, 2007 and 2006 and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2007 in conformity with U.S. generally accepted accounting principles.

As discussed in Note 1 to the accompanying consolidated financial statements, the Company has restated its financial statements for the years ended December 31, 2006 and 2005.

As discussed in Note 1 to the accompanying consolidated financial statements, in 2007 the Company changed its method of accounting for collateral related to certain derivative activities, and in 2006 the Company changed its method of accounting for defined benefit pension and other post retirement benefit plans.

/s/ ERNST & YOUNG LLP

Boston, Massachusetts

April 25, 2008

F-2

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

CONSOLIDATED BALANCE SHEETS

	December 31,
	2007		2006
			Restated
	(in millions)
Assets
Investments
Fixed maturities:
Available-for-sale - at fair value (cost: 2007 - $13,050; 2006 - $11,187)	$	13,689	$	11,629
Equity securities:
Available-for-sale - at fair value (cost: 2007 - $781; 2006 - $840)		956		1,022
Mortgage loans on real estate		2,414		2,446
Real estate		1,543		1,401
Policy loans		2,519		2,340
Short term investments		2,723		645
Other invested assets		325		144
Total Investments		24,169		19,627
Cash and cash equivalents		3,345		4,112
Accrued investment income		310		247
Deferred policy acquisition costs		5,664		4,655
Deferred sales inducements		264		235
Amounts due from and held for affiliates		2,967		2,886
Reinsurance recoverable		1,390		1,295
Other assets		1,259		1,276
Separate account assets		105,380		90,462
Total Assets	$	144,748	$	124,795
Liabilities and Shareholder’s Equity
Liabilities:
Future policy benefits	$	24,594	$	22,379
Policyholders’ funds		300		298
Unearned revenue		543		766
Unpaid claims and claim expense reserves		720		704
Dividends payable to policyholders		210		200
Amounts due to affiliates		4,615		2,996
Deferred income tax liability		1,000		812
Other liabilities		2,002		1,492
Separate account liabilities		105,380		90,462
Total Liabilities		139,364		120,109
Shareholder’s Equity:
Capital stock		5		5
Additional paid in capital		2,222		2,216
Retained earnings		2,572		1,988
Accumulated other comprehensive income		585		477
Total Shareholder’s Equity		5,384		4,686
Total Liabilities and Shareholder’s Equity	$	144,748	$	124,795

The accompanying notes are an integral part of these consolidated financial statements.

F-3

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

CONSOLIDATED STATEMENTS OF INCOME

	For the years ended December 31,
	2007		2006		2005
			Restated		Restated
	(in millions)
Revenues
Premiums	$	875	$	1,014	$	870
Fee income		3,262		2,483		1,769
Net investment income		1,337		1,163		1,169
Net realized investment and other gains		162		32		231
Total revenues		5,636		4,692		4,039
Benefits and expenses
Benefits to policyholders		2,375		1,889		1,579
Other operating costs and expenses		1,269		1,117		921
Amortization of deferred policy acquisition costs and deferred sales inducements		584		536		327
Dividends to policyholders		416		395		400
Total benefits and expenses		4,644		3,937		3,227
Income before income taxes		992		755		812
Income taxes		273		230		253
Net income	$	719	$	525	$	559

The accompanying notes are an integral part of these consolidated financial statements.

F-4

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

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER’S EQUITY

AND COMPREHENSIVE INCOME

	Capital Stock		Additional Paid In Capital		Retained Earnings			Accumulated Other Comprehensive Income			Total Shareholder’s Equity			Outstanding Shares
	(in millions, except for shares outstanding)													(thousands)
Balance at January 1, 2005 — As previously reported	$	5	$	2,024	$	1,062		$	828		$	3,919		4,829
Restatements						42			(90	)		(48	)
Balance at January 1, 2005 — Restated		5		2,024		1,104			738			3,871		4,829
Comprehensive income:
Net income — Restated						559						559
Other comprehensive income, net of tax:
Net unrealized investment losses — Restated									(104	)		(104	)
Net losses on cash flow hedges									(1	)		(1	)
Minimum pension liability									(21	)		(21	)
Foreign currency translation adjustment — Restated									(87	)		(87	)
Comprehensive income — Restated												346
Capital contribution from parent				13								13
Transactions with affiliates				8								8
Dividend paid to parent						(200	)					(200	)
Balance at December 31, 2005 — Restated	$	5	$	2,045	$	1,463		$	525		$	4,038		4,829
Balance at January 1, 2006 — Restated	$	5	$	2,045	$	1,463		$	525		$	4,038		4,829
Comprehensive income:
Net income — Restated						525						525
Other comprehensive income, net of tax:
Net unrealized investment losses — Restated									(46	)		(46	)
Minimum pension liability									5			5
Foreign currency translation adjustment — Restated									(5	)		(5	)
Comprehensive income — Restated												479
SFAS 158 transition adjustment									(2	)		(2	)
Common stock issued to parent				71								71
Transaction with affiliate				87								87
Stock options				13								13
Balance at December 31, 2006 — Restated	$	5	$	2,216	$	1,988		$	477		$	4,686		4,829
Balance at January 1, 2007 — Restated	$	5	$	2,216	$	1,988		$	477		$	4,686		4,829
Comprehensive income:
Net income						719						719
Other comprehensive income, net of tax:
Net unrealized investment gains									124			124
Net losses on cash flow hedges									(13	)		(13	)
Change in funded status of pension plan and amortization of periodic pension costs									1			1
Foreign currency translation adjustment									(4	)		(4	)
Comprehensive income												827
Dividend paid to parent						(135	)					(135	)
Stock options				6								6
Balance at December 31, 2007	$	5	$	2,222	$	2,572		$	585		$	5,384		4,829

The accompanying notes are an integral part of these consolidated financial statements.

F-5

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

CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the years ended December 31,
	2007			2006			2005
				Restated			Restated
	(in millions)
Cash flows provided by (used in) operating activities:
Net income	$	719		$	525		$	559
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Net realized investment and other gains		(162	)		(32	)		(231	)
Amortization of premium/discount – fixed maturities		9			13			27
Capitalization of deferred policy acquisition costs and deferred sales inducements		(1,700	)		(1,154	)		(976	)
Amortization of deferred policy acquisition costs and deferred sales inducements		584			536			327
Depreciation and amortization		26			26			27
(Increase) decrease in accrued investment income		(63	)		(1	)		58
Decrease (increase) in other assets and other liabilities, net		371			507			(325	)
Increase (decrease) in policyholder liabilities and accruals, net		781			479			(397	)
Increase in deferred income tax liability		127			128			124
Net cash provided by (used in) operating activities		692			1,027			(807	)
Cash flows used in investing activities:
Sales of:
Fixed maturities available-for-sale		8,814			9,657			8,293
Equity securities available-for-sale		304			355			153
Maturities, prepayments and scheduled redemptions of:
Fixed maturities available-for-sale		485			658			230
Mortgage loans on real estate		1,453			1,105			508
Real estate sold		—			27			9
Cash received on sale of mortgage backed security to affiliate		15			—			—
Purchases of:
Fixed maturities available-for-sale		(11,150	)		(10,327	)		(9,294	)
Equity securities available-for-sale		(229	)		(690	)		(261	)
Other invested assets		(121	)		(74	)		(6	)
Mortgage loans on real estate issued		(1,409	)		(1,128	)		(529	)
Purchases of real estate		(168	)		(16	)		(35	)
Net purchases of short-term investments		(2,013	)		(162	)		(112	)
Other, net		(249	)		(281	)		368
Net cash used in investing activities		(4,268	)		(876	)		(676	)
Cash flows provided by financing activities:
Common stock issued to parent		—			71			—
Capital contribution from parent		—			—			13
Cash received on sale of real estate to affiliate		—			150			—
Net cash transferred related to Taiwan operations		—			—			(24	)
Universal life and investment-type contract deposits		2,748			2,832			2,144
Universal life and investment-type contract maturities and withdrawals		(509	)		(1,266	)		(938	)
Net transfers to separate accounts from policyholders funds		(881	)		(433	)		(341	)
Unearned revenue on financial reinsurance		(149	)		(49	)		49
Increase in amounts due to/from affiliates, net		1,768			14			1,869
Excess tax benefits related to share based payments		2			2			—
Net reinsurance recoverable		(35	)		49			20
Dividend paid to parent		(135	)		—			(200	)
Net cash provided by financing activities		2,809			1,370			2,592
Net (decrease) increase in cash and cash equivalents		(767	)		1,521			1,109
Cash and cash equivalents at beginning of year		4,112			2,591			1,482
Cash and cash equivalents at end of year	$	3,345		$	4,112		$	2,591

The accompanying notes are an integral part of these consolidated financial statements.

F-6

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Summary of Significant Accounting Policies

Business

John Hancock Life Insurance Company (U.S.A.) (JH USA or The Company) is a wholly owned subsidiary of The Manufacturers Investment Corporation (MIC). MIC 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 company. MFC and its subsidiaries are collectively known as Manulife Financial.

The Company offers and issues individual and group annuity contracts, and individual life insurance and group pension contracts. All of these contracts (collectively, the contracts) are sold primarily in the United States. Amounts invested in the fixed portion of the contracts are allocated to the general account of the Company. Amounts invested in the variable portion of the contracts are allocated to the separate accounts of the Company. Each of these separate accounts invest in either the shares of various portfolios of the John Hancock Trust (JHT), a no-load, open-end investment management company organized as a Massachusetts business trust, or in various portfolios of open-end investment management companies offered and managed by unaffiliated third parties.

John Hancock Investment Management Services, LLC (JHIMS), a subsidiary of the Company, is the investment advisor to JHT. On November 1, 2005, JHIMS amended its Limited Liability Company Agreement to admit a new member. This amendment decreased the Company’s consolidated ownership interest in JHIMS from 100% to 95%. JH USA directly owns 57% of JHIMS, while its wholly owned subsidiary, John Hancock Life Insurance Company of New York, owns 38%. The remaining 5% of JHIMS is owned by an affiliate, John Hancock Funds, LLC.

Basis of Presentation

The accompanying consolidated financial statements include the accounts of the Company and its majority owned and or controlled subsidiaries. All significant intercompany transactions and balances have been eliminated.

The accompanying consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (GAAP), which require management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Partnerships, joint venture interests and other equity investments in which the Company does not have a controlling financial interest, but has significant influence, are recorded using the equity method of accounting and are included in other invested assets.

Restatements

The accompanying consolidated financial statements and footnote disclosures have been restated as of December 31, 2006 and for the years ended December 31, 2006 and 2005, respectively. There were two items requiring restatement as described below.

During the years 2001 through 2006, the Company was not properly recording the changes in the fair value of non-functional currency available-for-sale investments in accumulated other comprehensive income (OCI) or the realized gains and losses related to such securities in the consolidated statements of income. For available-for-sale fixed maturities and equity securities, foreign exchange movements at each balance sheet date were recorded in foreign currency translation adjustments instead of net unrealized investment gains (losses). In addition, when these non-functional currency available-for-sale securities were sold, the applicable foreign exchange gain or loss was not relieved from accumulated other comprehensive income and recorded in the consolidated statements of income. Certain of these available-for-sale investments supported life and annuity contracts where the investment results of the realized and unrealized investment and other gains (losses) are included in the calculation of current or future gross profits for purposes of amortizing deferred policy acquisition costs (DAC). As a result of the error, DAC was not adjusted for the realized and unrealized foreign exchange gains (losses). The after-tax adjustments to correctly record the related activity decreased total consolidated shareholder’s equity by $48.0 million as of January 1, 2005 (the cumulative consolidated income statement and OCI effect for the years 2001 through 2004), and decreased total consolidated shareholder’s equity by $96.0 million and $89.0 million as of December 31, 2006 and 2005, respectively. Consolidated net income was increased by $12.6 million and $10.7 million for the years ended December 31, 2006 and 2005, respectively, as a result of these adjustments.

Certain intercompany reinsurance activity was not properly presented in the Consolidated Statements of Cash Flows for the years ended December 31, 2006 and 2005. As a result of this error, cash flows provided by (used in) operating activities increased by $402 million and $53 million for the years ended December 31, 2006 and 2005, respectively; cash flows used in investing activities increased by $127 million and $112 million for the years ended December 31, 2006 and 2005, respectively; and cash flows provided by financing activities decreased by $275 million for the year ended December 31, 2006 and increased by $59 million for the year ended December 31, 2005.

F-7

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 1 – Summary of Significant Accounting Policies – (continued)

The following is a summary of the line items impacted by the Restatement for the 2006 Consolidated Balance Sheet and the Consolidated Statements of Income and Shareholder’s Equity for the years ended December 31, 2006 and 2005:

	Prior to Restatement*		Adjustments			Restated
	(in millions)
December 31, 2006
Deferred policy acquisition costs	$	4,701	$	(46	)	$	4,655
Total assets		124,841		(46	)		124,795
Deferred income tax liability		762		50			812
Total liabilities		120,059		50			120,109
Retained earnings		1,922		66			1,988
Accumulated other comprehensive income		639		(162	)		477
Total shareholder’s equity		4,782		(96	)		4,686
Total liabilities and shareholder’s equity		124,841		(46	)		124,795
December 31, 2005
Retained earnings		1,410		53			1,463
Accumulated other comprehensive income		667		(142	)		525
Total shareholder’s equity		4,127		(89	)		4,038
January 1, 2005
Retained earnings		1,062		42			1,104
Accumulated other comprehensive income		828		(90	)		738
Total shareholder’s equity		3,919		(48	)		3,871
For the year ended December 31, 2006
Net realized investment and other gains		5		27			32
Total revenue		4,665		27			4,692
Amortization of deferred policy acquisition costs and deferred sales inducements		529		7			536
Total benefits and expenses		3,930		7			3,937
Income before income taxes		735		20			755
Income taxes		223		7			230
Net income		512		13			525
For the year ended December 31, 2005
Net realized investment and other gains		209		22			231
Total revenue		4,017		22			4,039
Amortization of deferred policy acquisition costs and deferred sales inducements		322		5			327
Total benefits and expenses		3,222		5			3,227
Income before income taxes		795		17			812
Income taxes		247		6			253
Net income		548		11			559

The consolidated statements of cash flows were restated as applicable for the items noted above.

* Certain prior year amounts have been reclassified to conform to the current year presentation.

Investments

The Company classifies its fixed maturity securities as available-for-sale and records these securities at fair value. Unrealized gains and losses related to available-for-sale securities are reflected in shareholder’s equity, net of policyholder related amounts and deferred income taxes. Interest income is generally recognized on the accrual basis. The amortized cost of fixed maturity securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization is included in net investment income. The amortized cost of fixed maturity securities is adjusted for impairments in value deemed to be other than temporary, and such adjustments are reported as a component of net realized investment and other gains.

F-8

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 1 – Summary of Significant Accounting Policies – (continued)

For mortgage-backed securities, the Company recognizes income using a constant effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from anticipated prepayments, the effective yield is recalculated to reflect actual payments to date and anticipated future payments, and any resulting adjustment is included in net investment income.

Net realized investment and other gains, other than those related to separate accounts for which the Company does not bear the investment risk, are determined on a specific identification method and are reported net of amounts credited to participating group annuity contract holder accounts. A decline in the value of a specific security that is considered other-than-temporary results in a write-down of the cost basis of the security and a charge to income in the period of recognition. Unrealized gains and losses, other than unrealized losses that are considered to be other-than-temporary, are reflected directly in accumulated other comprehensive income after adjustments for deferred income taxes, deferred policy acquisition costs, deferred sales inducements, and participating group annuity contracts.

Equity securities include common stock and preferred stock. Equity securities that have readily determinable fair values are carried at fair value. For equity securities that the Company classifies as available-for-sale, unrealized gains and losses on equity securities are reflected in shareholder’s equity, as described above for available-for-sale fixed maturities securities. Equity securities that do not have readily determinable fair values are carried at cost and are included in other invested assets. Impairments in value deemed to be other than temporary are reported as a component of net realized investment and other gains (losses).

Mortgage loans on real estate are carried at unpaid principal balances and are adjusted for amortization of premium or discount, less allowance for probable losses. Premiums or discounts are amortized over the life of the mortgage loan contract in a manner that results in a constant effective yield. Interest income and amortization amounts and other costs that are recognized as an adjustment of yield are included as components of net investment income. When it is probable that the Company will be unable to collect all amounts of principal and interest due according to the contractual terms of the mortgage loan agreement, the loan is deemed to be impaired and a valuation allowance for probable losses is established. The valuation allowance is based on the present value of the expected future cash flows, discounted at the loan’s original effective interest rate, or is based on the collateral value of the loan if higher and the loan is collateral dependent. The Company estimates this level to be adequate to absorb estimated probable credit losses that exist at the balance sheet date. Any change to the valuation allowance for mortgage loans on real estate is reported as a component of net realized investment and other gains. Interest received on impaired mortgage loans on real estate is included in net investment income in the period received. If foreclosure becomes probable, the measurement method used is based on the collateral value. Foreclosed real estate is recorded at the collateral’s fair value at the date of foreclosure, which establishes a new cost basis.

Interest on fixed maturity securities and performing mortgage loans is recorded as income when earned and is adjusted for any amortization of premiums or accretion of discounts. Interest on restructured mortgage loans is recorded as income based on the rate to be paid; interest on delinquent mortgage loans is recorded as income on a cash basis. Dividends are recorded as income on the ex-dividend date.

Investment real estate, which the Company has the intent to hold for the production of income, is carried at depreciated cost, using the straight-line method of depreciation, less adjustments for impairments in value. In those cases where it is determined that the carrying amount of investment real estate is not recoverable, an impairment loss is recognized based on the difference between the depreciated cost and fair value of the asset. The Company reports impairment losses as part of net realized investment and other gains.

Policy loans are reported at unpaid principal balances, which approximate fair value.

Short-term investments, which include investments with maturities when purchased greater than 90 days and less than one year, are reported at fair value.

Derivative Financial Instruments

The Company uses various derivative instruments to hedge and manage its exposures to changes in interest rate levels, foreign exchange rates and equity market prices, and also to manage the duration of assets and liabilities.

All derivative instruments are reported on the Consolidated Balance Sheets in other invested assets or other liabilities at fair value, with changes in fair value recorded in income or other comprehensive income, depending on the nature of the derivative instrument. Changes in the fair value of derivatives not designated as hedges are recognized in income.

F-9

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 1 – Summary of Significant Accounting Policies – (continued)

In certain cases, the Company uses hedge accounting by designating derivative instruments as either fair value hedges or cash flow hedges. For derivative instruments that are designated and qualify as fair value hedges, any changes in fair value of the derivative instruments as well as the offsetting changes in fair value of the hedged items are recorded in net realized investment and other gains. For fair value hedges, when the derivative has been terminated, a final fair value change is recorded in net realized investment and other gains, as well as the offsetting changes in fair value for the hedged item. At maturity, expiration or sale of the hedged item, a final fair value change for the hedged item is recorded in net realized investment and other gains, as well as offsetting changes in fair value for the derivative. Basis adjustments are recognized into income as part of net realized investment and other gains.

For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the change in fair value of the derivative instrument is recorded in accumulated other comprehensive income, and then reclassified into income when the hedged item affects income. When a cash flow hedge is terminated, the effective portion of the accumulated derivative gain or loss continues to be reported in accumulated other comprehensive income and then is reclassified into income when the hedged item affects income. If it is determined that the forecasted transaction is not probable of occurring, the balance remaining in accumulated other comprehensive income is immediately recognized in earnings.

Hedge effectiveness is assessed quarterly using a variety of techniques including regression analysis and cumulative dollar offset. When it is determined that a derivative is not effective as a hedge, the Company discontinues hedge accounting. In certain cases, there is no hedge ineffectiveness because the derivative instrument was constructed such that all the terms of the derivative exactly match the hedged risk in the hedged item.

In cases where the Company receives or pays a premium as consideration for entering into a derivative instrument (i.e., interest rate caps and floors, and swaptions), the premium is amortized into investment income over the term of the derivative instrument. The change in fair value of such premiums (i.e., the inherent ineffectiveness of the derivative) is excluded from the assessment of hedge effectiveness and is included in net realized investment and other gains (losses). Changes in fair value of derivatives that are not hedges are included in net realized investment and other gains (losses).

Cash and Cash Equivalents

Cash and cash equivalents include cash and all highly liquid debt investments with a remaining maturity of three months or less when purchased.

Deferred Policy Acquisition Costs (DAC) and Deferred Sales Inducements (DSI)

Commissions and other expenses that vary with, and are primarily related to, the production of new business are deferred to the extent recoverable and included as an asset. DAC associated with annuity contracts and group pension contracts are being amortized generally in proportion to the present value of expected gross profits from surrender charges and investment, mortality, and expense margins. The amortization is adjusted retrospectively when estimates of current or future gross profits are revised. Assuming the unrealized gains or losses on securities had been realized at year-end, DAC is adjusted for the impact on estimated future gross profits for such unrealized gains (losses). The impact of any such adjustments is included in net unrealized gains (losses) in accumulated other comprehensive income. DAC associated with traditional non-participating individual insurance contracts is amortized over the premium-paying period of the related policies. DAC is reviewed annually to determine recoverability from future income and, if not recoverable, is immediately expensed. As of December 31, 2007 and 2006, the Company’s DAC was deemed recoverable.

The Company currently offers enhanced crediting rates or bonus payments to contract holders on certain of its individual annuity products (Deferred Sales Inducements or DSI). Those inducements that are incremental to amounts the Company credits on similar contracts without sales inducements and are higher than the contracts’ expected ongoing crediting rates for periods after the inducements are capitalized at inception. The capitalized amounts are then amortized over the life of the underlying contracts consistent with the methodology used to amortize DAC. DSI is reviewed annually to determine recoverability from future income, and if not recoverable, is immediately expensed. As of December 31, 2007 and 2006, the Company’s DSI was deemed recoverable.

F-10

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 1 – Summary of Significant Accounting Policies – (continued)

Reinsurance

The Company utilizes reinsurance agreements to provide for greater diversification of business, allowing management to control exposure to potential losses arising from large risks and provide additional capacity for growth.

Assets and liabilities related to reinsurance ceded contracts are reported on a gross basis. The accompanying consolidated statements of income reflect premiums, benefits and settlement expenses net of reinsurance ceded. Reinsurance 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. The Company remains liable to its policyholders to the extent that counterparties to reinsurance ceded contracts do not meet their contractual obligations.

Goodwill

Goodwill, included in other assets, represents the excess of the purchase price paid by the Company over the fair value of the assets and liabilities of Wood Logan Associates (WLA) at the dates the outstanding shares of WLA were acquired. Prior to the adoption of Statement of Financial Accounting Standards No. 142 (SFAS 142), Goodwill and Other Intangible Assets, this goodwill was being amortized over its expected useful life. No goodwill amortization was recorded after the adoption of this standard.

The Company tests goodwill and other non-amortizing intangible assets for impairment on an annual basis, and also in response to any events which suggest that these assets may be impaired (triggering events). Amortizable intangible assets are tested only in response to triggering events. Impairments would be recorded whenever an intangible asset’s fair value is deemed to be less than its carrying value. No impairment was indicated as a result of testing performed in 2007 or 2006.

Separate Accounts

Separate account assets and liabilities reported in the Company’s Consolidated Balance Sheets represent funds that are administered and invested by the Company to meet specific investment objectives of the contract holders. Net investment income and net realized investment and other gains or losses generally accrue directly to such contract holders who bear the investment risk, subject, in some cases, to principal guarantees and minimum guaranteed rates of income. The assets of each separate account are legally segregated and are not subject to claims that arise out of any other business of the Company. Separate account assets are reported at fair value. Deposits, surrenders, net investment income, and net realized investment and other gains or losses and the related liability charges of separate accounts are offset within the same line item in the Consolidated Statements of Income. Fees charged to contract holders, principally mortality, policy administration, and surrender charges, are included in the revenues of the Company.

Future Policy Benefits and Policyholders’ Funds

Policyholder liabilities for traditional non-participating life insurance policies, reinsurance policies, and accident and health policies are computed using the net level premium method. The calculations are based upon estimates as to future mortality, morbidity, persistency, maintenance expenses, and interest rate yields that were applicable in the year of issue. The assumptions include a provision for the risk of adverse deviation.

For payout annuities in loss recognition, policyholder liabilities are computed using estimates of expected mortality, expenses, and investment yields as determined at the time these contracts first moved into loss recognition. Payout annuity reserves are adjusted for the impact of net realized investment and other gains associated with the underlying assets.

For fixed and variable annuities, group pension contracts, variable life contracts, and universal life insurance contracts with no substantial mortality or morbidity risk, policyholder liabilities equal the policyholder account values before surrender charges and additional reserves established on certain guarantees offered in certain variable annuity products. Account values are increased for deposits received and interest credited and are reduced by withdrawals, mortality charges, and administrative expenses charged to the policyholders. Benefit liabilities for annuities during the accumulation period are equal to accumulated contract holders’ fund balances and after annuitization are equal to the present value of expected future payments. Policy benefits charged to expense also include the change in the additional reserve for certain guarantees offered in certain investment type products.

F-11

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 1 – Summary of Significant Accounting Policies – (continued)

Benefits for fixed and variable annuities, variable life contracts, universal life insurance contracts, and group pension contracts include interest credited to policyholder account values and benefit claims incurred during the period in excess of policyholder account values.

For traditional participating life insurance policies, policyholder liabilities are computed using the net level premium reserve for death and endowment policy benefits. Mortality and interest assumptions are the same as the non-forfeiture benefit assumptions at the time the policy was issued. For the years 2005 through 2007, interest rate assumptions used in the calculation of the liabilities for traditional participating life insurance policies ranged from 2.5% to 7.8%. As of December 31, 2007 and 2006, participating insurance liabilities expressed as a percentage of total actuarial reserves and account values were 36.1% and 39.2%, respectively.

Estimates of future policy benefit reserves, claim reserves and expenses are reviewed continually and adjusted as necessary; such adjustments are reflected in current earnings. Although considerable variability is inherent in such estimates, management believes that future policy benefit reserves and unpaid claims and claim expense reserves are adequate.

Participating Insurance

For those participating policies in force as of September 23, 1999 and as a result of the demutualization of MLI, separate sub-accounts were established within the participating accounts of the Company. These sub-accounts permit this participating business to be operated as a separate Closed Block of business. As of December 31, 2007 and 2006, $8,997 million and $8,894 million of policyholder liabilities and accruals related to the participating policyholders’ accounts were included in the Closed Block.

JH USA’s Board of Directors approves the amount of policyholder dividends to be paid annually. The aggregate amount of policyholder dividends is calculated based on actual interest, mortality, morbidity and expense experience for the year, and on management’s judgment as to the appropriate level of statutory surplus to be retained by the Company.

Revenue Recognition

Premiums on long-duration life insurance and reinsurance contracts are recognized as revenue when due. Premiums on short-duration contracts are earned over the related contract period. Net premiums on limited-payment contracts are recognized as revenue and the difference between the gross premium received and the net premium is deferred and recognized in income based on either a constant relationship to insurance in force or the present value of annuity benefits, depending on the product type.

Fee income from annuity contracts, pension contracts, and insurance contracts consists of charges for mortality, expense, surrender and administration that have been assessed against the policyholder account balances. To the extent such charges compensate the Company for future services, they are deferred and will be recognized in income over the period earned using the same assumptions as those associated with the amortization of DAC.

Share Based Payments

The Company adopted SFAS 123(R), Share Based Payment, on January 1, 2006. This standard requires that the costs resulting from share based payment transactions with employees be recognized in the financial statements using a fair value based measurement method. The Company had previously adopted the fair value recognition provisions of SFAS 123, Accounting for Stock Options, effective January 1, 2003 prospectively for all options granted to employees on or after January 1, 2002.

Certain Company employees are provided compensation in the form of stock options, deferred share units, and restricted share units in MFC. The fair value of the stock options granted by MFC to the Company’s employees is recorded by the Company over the vesting periods. The fair value of the deferred share units granted by MFC to Company employees is recognized in the accounts of the Company over the vesting periods of the units. The intrinsic fair value of the restricted share units granted by MFC to the Company’s employees is recognized in the accounts of the Company over the vesting periods of the units. The share-based payments are a legal obligation of MFC, but in accordance with U.S. generally accepted accounting principles, are recorded in the accounts of the Company in other operating costs and expenses.

F-12

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 1 – Summary of Significant Accounting Policies – (continued)

Upon adoption of SFAS 123(R), the Company was required to determine the portion of additional paid in capital that was generated from the realization of excess tax benefits prior to the adoption of SFAS 123(R) available to offset deferred tax assets that may need to be written off in future periods had the Company adopted the SFAS 123 fair value recognition provisions in 2001. The Company elected to calculate this pool of additional paid in capital using the shortcut method as permitted by FASB Staff Position (FSP) 123(R)-3, Transition Election to Accounting for the Tax Effects of Share Based Payment Awards.

SFAS 123(R) also requires the benefits of tax deductions in excess of recognized compensation expense to be reported as a financing cash flow, rather than as an operating cash flow. This requirement reduces net operating cash flows and increase net financing cash flows in periods after adoption. In 2007 the Company recognized $2 million of excess tax benefits which was reclassified from net operating cash flows to net financing cash flows. Upon adoption in 2006, the Company recognized $2 million of excess tax benefits related to share based payments which was reclassified from net operating cash flows to net financing cash flows.

Federal Income Taxes

The provision for Federal income taxes includes amounts currently payable or recoverable and deferred income taxes, computed under the liability method, resulting from temporary differences between the tax basis and book basis of assets and liabilities. A valuation allowance is established for deferred tax assets when it is more likely than not that an amount will not be realized.

Foreign Currency Translation

The consolidated balance sheets of the Company’s foreign operations and the Company’s non-U.S. dollar investments are translated into U.S. dollars using translation rates in effect at the Consolidated Balance Sheet dates. The Consolidated Statements of Income of the Company’s foreign operations are translated into U.S. dollars using average translation rates prevailing during the respective periods. Translation adjustments are included in accumulated other comprehensive income.

Recent Accounting Pronouncements

FASB Staff Position FIN39-1

Amendment of Offsetting of Amounts Related to Certain Contracts (FSP FIN39-1)

In April 2007, the FASB issued FSP FIN 39-1 to amend the reporting standards for offsetting amounts related to derivative instruments with the same counterparty. FSP FIN 39-1 specifies that an entity that has in the past elected to offset fair value of derivative assets and liabilities may change its policy election. The Company early adopted FSP FIN 39-1 in the quarter ended December 31, 2007, changing its accounting policy from net to gross balance sheet presentation for offsetting derivative balances with the same counterparty. This accounting policy change was applied retrospectively to all periods presented, resulting in an increase of derivative assets equally offset by an increase in derivative liabilities at December 31, 2007 and 2006 of $57 million and $13 million, respectively.

Statement of Financial Accounting Standards No.159, the Fair Value Option for Financial Assets and Financial Liabilities (SFAS 159)

In February 2007, the FASB issued SFAS 159. SFAS 159’s objective is to enable companies to mitigate the earnings volatility caused by measuring related assets and liabilities differently, without having to apply complex hedge accounting provisions. SFAS 159 provides the option to use fair value accounting for most financial assets and financial liabilities, with changes in fair value reported in earnings. Selection of the fair value option is irrevocable, and can be applied on a partial basis, i.e., to some but not all similar financial assets or liabilities.

F-13

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 1 – Summary of Significant Accounting Policies – (continued)

SFAS 159 will be effective for the Company beginning January 1, 2008, and will then be prospectively applicable. The Company is currently evaluating the impact of adoption of SFAS 159 will have on its consolidated financial position and results of operations.

Statement of Financial Accounting Standards No.158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106 and 123(R) (SFAS 158)

In September 2006, the FASB issued SFAS 158. SFAS 158 requires the Company to recognize in its consolidated balance sheet either assets or liabilities for overfunded or underfunded status of its defined benefit postretirement plans. Changes in the funded status of a defined benefit postretirement plan are recognized in accumulated comprehensive income in the year the changes occur.

SFAS 158 was effective for the Company on December 31, 2006. As a result of the adoption of SFAS 158 as of December 31, 2006, the Company recorded a decrease of $2 million, net of tax benefit of $1 million, to accumulated other comprehensive income to recognize the funded status of its defined benefit pension and other post-retirement benefit plans.

Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157)

On September 15, 2006, the FASB issued SFAS 157. This standard, which provides guidance on how to measure fair values of assets and liabilities, applies whenever other standards require or permit assets or liabilities to be measured at fair value, but does not discuss when to use fair value accounting. SFAS 157 establishes a fair value measurement hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to market-unobservable data. It requires enhanced disclosure of fair value measurements including tabular disclosure by level of fair valued assets and liabilities within the hierarchy and tabular presentation of continuity within the period of those fair value items valued using the lowest hierarchy level.

SFAS 157 will be effective for the Company beginning January 1, 2008 and will then be prospectively applicable. The Company expects that the adoption of SFAS 157 will have a material effect on its consolidated financial position and results of operations. The impact of adoption is currently being refined.

FASB Financial Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48)

In June 2006 the FASB issued FIN 48. FIN 48 prescribes recognition and measurement model for impact of tax positions taken or expected to be taken in a tax return, and provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 requires evaluation of whether a tax position taken on a tax return is more likely than not to be sustained if challenged, and if so, evaluation of the largest benefit that is more than 50% likely of being realized on ultimate settlement. Differences between these benefits and actual tax positions result in either (A) an increase in a liability for income taxes payable or a reduction of an income tax refund receivable, (B) a reduction in a deferred tax asset or an increase in a deferred tax liability, or both A and B. FIN 48 requires recording a cumulative effect of adoption in retained earnings as of the beginning of the year of adoption.

FIN 48 was effective for the Company’s consolidated financial statements beginning January 1, 2007. The Company had no cumulative effect of adoption to its January 1, 2007 consolidated retained earnings. Adoption of FIN 48 had no material impact on the Company’s consolidated financial position at December 31, 2007 and consolidated results of operations for the year ended December 31, 2007.

AICPA Statement of Position 05-1, Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection With Modifications or Exchanges of Insurance Contracts (SOP 05-1)

In September 2005, the Accounting Standards Executive Committee (AcSEC) of the American Institute of Certified Public Accountants (AICPA) issued SOP 05-1. SOP 05-1 provides guidance on accounting for deferred acquisition costs of internal replacements of insurance and investment contracts. An internal replacement that is determined to result in a replacement contract that is substantially changed from the replaced contract should be accounted for as an extinguishment of the replaced contract. Unamortized deferred acquisition costs, unearned revenue liabilities, and deferred sales inducement assets from extinguished contracts should no longer be deferred and instead be charged off to expense.

F-14

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 1 – Summary of Significant Accounting Policies – (continued)

SOP 05-1 was effective for the Company’s internal replacements occurring on or after January 1, 2007. Retrospective adoption is not permitted. In connection with the Company’s adoption of SOP 05-1 as of January 1, 2007, there was no impact to the Company’s consolidated financial position or results of operations.

Emerging Issues Task Force Issue No. 04-5, Investor’s Accounting for an Investment in a Limited Partnership When the Investor Is the Sole General Partner and the Limited Partners Have Certain Rights (EITF 04-5)

In July 2005, the Emerging Issues Task Force of the FASB issued EITF 04-5. EITF 04-5 mandates a rebuttable presumption that the general partner of a partnership (or managing member of a limited liability company) controls the partnership and should consolidate it, unless limited partners have either substantive kickout rights (defined as the ability to remove the general partner without cause by action of simple majority) or have substantive participating rights (defined as the ability to be actively involved in managing the partnership) or the partnership is a Variable Interest Entity (VIE), in which case VIE consolidated accounting rules should instead be followed. The Company’s adoption of EITF 04-5 in 2006 resulted in no impact to its consolidated financial position and results of operations.

Note 2 – Investments

The following information summarizes the components of net investment income and net realized investment and other gains (losses):

	For the year ended December 31,
	2007		2006			2005
	(in millions)
Net investment income
Fixed maturities	$	798	$	730		$	705
Equity securities		38		24			17
Mortgage loans on real estate		145		152			157
Real estate		100		98			92
Policy loans		185		166			202
Short term investments		145		61			29
Other		7		(8	)		2
Gross investment income		1,418		1,223			1,204
Less investment expenses		81		60			35
Net investment income	$	1,337	$	1,163		$	1,169
			Restated			Restated
Net realized investment and other gains (losses)
Fixed maturities	$	69	$	(27	)	$	196
Equity securities		38		44			20
Mortgage loans on real estate		13		13			20
Real estate		—		7			(2	)
Derivatives and other invested assets		42		(5	)		(3	)
Net realized investment and other gains	$	162	$	32		$	231

Gross gains were realized on the sale of available-for-sale securities of $203 million, $189 million (Restated), and $273 million (Restated) for the years ended December 31, 2007, 2006, and 2005, and gross losses were realized on the sale of available-for-sale securities of $51 million, $132 million, and $77 million for the years ended December 31, 2007, 2006, and 2005. In addition, other-than-temporary impairments on available-for-sale securities of $74 million, $64 million, and $14 million for the years ended December 31, 2007, 2006, and 2005 were recognized in the Consolidated Statements of Income.

F-15

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 2 – Investments – (continued)

As of December 31, 2007 and 2006, all fixed maturity and equity securities were classified as available-for-sale and reported at fair value. The amortized cost and fair value are summarized below as of the dates indicated:

	December 31, 2007
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in millions)
Available-for-Sale:
Corporate securities	$	10,364	$	574	$	(121	)	$	10,817
Asset-backed & mortgage-backed securities		992		15		(2	)		1,005
Obligations of states and political subdivisions		83		4		—			87
Debt securities issued by foreign governments		893		145		—			1,038
U.S. Treasury securities and obligations of U.S. government corporations and agencies		718		24		—			742
Total fixed maturities available-for-sale		13,050		762		(123	)		13,689
Equity securities		781		193		(18	)		956
Total fixed maturities and equity securities available-for-sale	$	13,831	$	955	$	(141	)	$	14,645

	December 31, 2006
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in millions)
Available-for-Sale:
Corporate securities	$	7,543	$	477	$	(64	)	$	7,956
Asset-backed & mortgage-backed securities		35		—		(1	)		34
Obligations of states and political subdivisions		10		1		—			11
Debt securities issued by foreign governments		45		7		(1	)		51
U.S. Treasury securities and obligations of U.S. government corporations and agencies		3,554		26		(3	)		3,577
Total fixed maturities available-for-sale		11,187		511		(69	)		11,629
Equity securities		840		187		(5	)		1,022
Total fixed maturities and equity securities available-for-sale	$	12,027	$	698	$	(74	)	$	12,651

The amortized cost and fair value of fixed maturities as of December 31, 2007, by contractual maturity, are shown below:

	Amortized Cost		Fair Value
	(in millions)
Available-for-Sale:
Due in one year or less	$	386	$	387
Due after one year through five years		1,777		1,817
Due after five years through ten years		3,967		4,042
Due after ten years		5,928		6,438
		12,058		12,684
Asset-backed and mortgage-backed securities		992		1,005
Total fixed maturities available-for-sale	$	13,050	$	13,689

Expected maturities may differ from contractual maturities because eligible borrowers may exercise their right to call or prepay obligations with or without call or prepayment penalties.

As of December 31, 2007, fixed maturity securities with a fair value of $7 million (2006—$8 million) were on deposit with government authorities as required by law.

F-16

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 2 – Investments – (continued)

Available-for-sale securities with amortized cost of $0 million and $1 million were non-income producing as of December 31, 2007 and 2006, respectively.

The Company participates in a security lending program for the purpose for enhancing income on securities held. At December 31, 2007 and 2006, $1,476 million and $1,320 million, respectively, of the Company’s securities, at market value, were on loan to various brokers or dealers, and were fully collateralized by cash and highly liquid securities. The market value of the loaned securities is monitored on a daily basis, and the collateral is maintained at a level of at least 102% of the loaned securities’ market value.

Depreciation expense on investment real estate was $26 million in 2007, 2006, and 2005, respectively. Accumulated depreciation was $218 million and $193 million at December 31, 2007 and 2006, respectively.

Analysis of unrealized losses on fixed maturities securities

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 Manulife Loan Review Committee (the committee) reviews all securities where market value is less than eighty percent of amortized cost for six months or more to determine whether impairments need to be taken. The committee meets with the management responsible for restructurings, as well as the management of each industry team, and portfolio management. The analysis focuses on each investee 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 Manulife Credit Committee. The Loan Review Committee includes Manulife’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 maturities 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 is deemed to be other than temporarily impaired the difference between amortized cost and fair value is charged to earnings.

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 committee’s assessment of an 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 Manulife investment professionals who determine the fair value estimates and other than temporary impairments, and (4) the risk that new information obtained by Manulife, or changes in other facts and circumstances lead to a change in the intent to hold the security to maturity or until it recovers in value. Any of these situations could result in a charge to earnings in a future period.

The cost amounts for both fixed maturity securities and equity securities are net of the other-than-temporary impairment charges.

As of December 31, 2007 and 2006, there were 339 and 425 fixed maturity securities with an aggregate gross unrealized loss of $123 million and $69 million as of December 31, 2007 and 2006, of which the single largest unrealized loss was $16 million and $2 million as of December 31, 2007 and 2006, respectively. The Company anticipates that these fixed maturity securities will perform in accordance with their contractual terms and currently has the ability and intent to hold these securities until they recover or mature.

F-17

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 2 – Investments – (continued)

As of December 31, 2007 and 2006, there were 174 and 75 equity securities with an aggregate gross unrealized loss of $18 million and $5 million as of December 31, 2007 and 2006, of which the single largest unrealized loss was $1 million and $1 million as of December 31, 2007 and 2006, respectively. The Company anticipates that these equity securities will recover in value.

Unrealized Losses on Fixed Maturity and Equity Securities
	As of December 31, 2007
	Less than 12 months					12 months or more					Total
Description of securities:	Carrying Value of Securities with Gross Unrealized Losses		Unrealized Losses			Carrying Value of Securities with Gross Unrealized Losses		Unrealized Losses			Carrying Value of Securities with Gross Unrealized Losses		Unrealized Losses
U.S. Treasury obligations and direct obligations of U.S. government agencies	$	6	$	—		$	24	$	—		$	30	$	—
Federal agency mortgage-backed securities		99		(2	)		32		—			131		(2	)
Fixed maturity securities issued by foreign governments		—		—			8		—			8		—
Corporate securities		1,521		(50	)		1,462		(71	)		2,983		(121	)
Total fixed maturity securities		1,626		(52	)		1,526		(71	)		3,152		(123	)
Equity securities		145		(18	)		—		—			145		(18	)
Total fixed maturity and equity securities	$	1,771	$	(70	)	$	1,526	$	(71	)	$	3,297	$	(141	)
Unrealized Losses on Fixed Maturity and Equity Securities
	As of December 31, 2006
	Less than 12 months					12 months or more					Total
Description of securities:	Carrying Value of Securities with Gross Unrealized Losses		Unrealized Losses			Carrying Value of Securities with Gross Unrealized Losses		Unrealized Losses			Carrying Value of Securities with Gross Unrealized Losses		Unrealized Losses
U.S. Treasury obligations and direct obligations of U.S. government agencies	$	478	$	(2	)	$	47	$	(1	)	$	525	$	(3	)
Federal agency mortgage-backed securities		7		—			17		(1	)		24		(1	)
Fixed maturity securities issued by foreign governments		—		—			10		(1	)		10		(1	)
Corporate securities		1,200		(26	)		1,319		(38	)		2,519		(64	)
Total fixed maturity securities		1,685		(28	)		1,393		(41	)		3,078		(69	)
Equity securities		77		(3	)		19		(2	)		96		(5	)
Total fixed maturity and equity securities	$	1,762	$	(31	)	$	1,412	$	(43	)	$	3,174	$	(74	)

Gross unrealized losses above include unrealized losses from hedging adjustments. Gross unrealized losses from hedging adjustments represent the amount of the unrealized loss that result from the security being designated as a hedged item in a fair value hedge. When a security is so designated, its cost basis is adjusted in response to movements in interest rates. These adjustments, which are non-cash and reverse over time as the asset and derivative mature, impact the amount of unrealized loss on a security. The remaining portion of the gross unrealized loss represents the impact of interest rates on the non-hedged portion of the portfolio and unrealized losses due to creditworthiness on the total fixed maturity portfolio.

F-18

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 2 – Investments – (continued)

At December 31, 2007 and 2006, the fixed maturity securities had a total gross unrealized loss of $123 million and $69 million, respectively, including basis adjustments related to hedging relationships. Unrealized losses can be created by rising interest rates or by rising credit concerns and hence widening credit spreads. Credit concerns tend to play a larger role in the unrealized losses 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. The gross unrealized loss on below investment grade fixed maturity securities increased to $19 million at December 31, 2007 from $1 million at December 31, 2006 primarily due to interest rate changes.

Mortgage loans on real estate

Mortgage loans on real estate are evaluated periodically as part of the Company’s loan review procedures and are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the mortgage agreement. The allowance for losses is maintained at a level believed adequate by management to absorb estimated probable credit losses that exist at the balance sheet date. Management’s periodic evaluation of the adequacy of the allowance for losses is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payments), the estimated value of the underlying collateral, composition of the loan portfolio, current economic conditions, and other relevant factors. This evaluation is inherently subjective as it requires estimating the amounts and timing of future cash flows expected to be received on impaired mortgage loans that may be susceptible to significant change. Any change to the valuation allowance for mortgage loans on real estate is reported as a component of net realized investment and other gains.

Changes in the allowance for possible losses on mortgage loans on real estate were as follows:

(in millions)	Balance at Beginning of Period		Additions		Deductions		Balance at End of Period
Year ended December 31, 2007	$	3	$	5	$	5	$	3
Year ended December 31, 2006	$	5	$	1	$	3	$	3
Year ended December 31, 2005	$	7	$	3	$	5	$	5

At December 31, 2007 and 2006, the total recorded investment in mortgage loans considered to be impaired along with the related provision for losses, were as follows:

	As of December 31,
	2007			2006
	(in millions)
Impaired mortgage loans on real estate with provision for losses	$	12		$	12
Provision for losses		(3	)		(3	)
Net impaired mortgage loans on real estate	$	9		$	9

The average recorded investment in impaired mortgage loans and the interest income recognized on impaired mortgage loans were as follows:

	Years Ended December 31,
	2007		2006		2005
	(in millions)
Average recorded investment in impaired mortgage loans	$	12	$	16	$	31
Interest income recognized on impaired mortgage loans	$	—	$	—	$	—

F-19

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 2 – Investments – (continued)

The payment terms of mortgage loans on real estate may be restructured or modified from time to time. 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 were no restructured mortgage loans as of December 31, 2007 and 2006.

At December 31, 2007, the mortgage portfolio was diversified by specific collateral property type and geographic region as displayed below:

Collateral Property Type	Carrying Amount			Geographic Concentration	Carrying Amount
	(in millions)				(in millions)
Apartments	$	322		East North Central	$	272
Industrial		493		East South Central		35
Office buildings		941		Middle Atlantic		441
Retail		451		Mountain		207
Multi family		4		New England		124
Mixed use		74		Pacific		684
Agricultural		64		South Atlantic		509
Other		68		West North Central		14
				West South Central		131
Allowance for losses		(3	)	Allowance for losses		(3	)
Total	$	2,414		Total	$	2,414

Mortgage loans with outstanding principal balances of $11 million were non-income producing as of December 31, 2007. There was $1 million of non-income producing real estate as of December 31, 2007.

Note 3 – Derivatives and Hedging Instruments

The Company uses various derivative instruments to hedge and manage its exposure to changes in interest rate levels, foreign exchange rates, and equity market prices, and to manage the duration of assets and liabilities.

The fair value of derivative instruments classified as assets at December 31, 2007 and 2006 was $216 million and $52 million, respectively, and is reported on the Consolidated Balance Sheets in other assets. The fair value of derivative instruments classified as liabilities at December 31, 2007 and 2006 was $309 million, and $104 million, respectively, and is reported on the Consolidated Balance Sheets in other liabilities.

Fair Value Hedges

The Company uses interest rate futures contracts and interest rate swap agreements 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 (e.g., 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 and currency rate swap agreements is accrued and recognized as a component of net investment income.

The Company uses cross currency rate swap agreements to manage exposures to foreign currency arising from its consolidated balance sheet assets and liabilities. Cross currency swap agreements involve an initial and financial exchange of principal amounts between parties as well as the exchange of fixed or floating interest payments in one currency for the receipt of fixed or floating interest payments in another currency.

F-20

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 3 – Derivatives and Hedging Instruments – (continued)

Product Derivatives

The Company offers certain variable annuity products with a guaranteed minimum withdrawal benefit (GMWB) rider. This rider is effectively an embedded option on the basket of the mutual funds which is sold to contract holders. Beginning in November 2007, for certain contracts issued during 2007, the Company started a hedging program to reduce its exposure to the GMWB rider. This dynamic hedging program uses interest rate swaps, equity index futures (including but not limited to the Dow Jones Industrial, Standard & Poor’s 500, Russell 2000, and Dow Jones Euro Sox 50 indices), and foreign currency futures to match the sensitivities of the GMWB rider liability to the market risk factors.

For the years ended December 31, 2007, 2006 and 2005, the Company recognized net gains of $0.2 million and $3 million, and net losses of $2 million, respectively, related to the ineffective portion of its fair value hedges.

Cash Flow Hedges

The Company also uses interest rate swap agreements to hedge the variable cash flows arising from floating-rate assets held on its Consolidated Balance Sheet. Under interest rate swap agreements, the Company agrees with other parties to exchange, at specific intervals, the difference between fixed-rate and floating-rate interest amounts calculated by reference to an agreed notional principal amount. Generally, no cash is exchanged at the outset of the contract and neither party makes principal payments.

The Company uses cross currency swaps to manage exposures to foreign currency and variable interest rates arising from its on-balance sheet assets. Cross currency swaps involve an initial and final exchange of principal amounts between parties as well as the exchange of fixed or floating interest payments in one currency for the receipt of fixed or floating interest payments in another currency. The Company uses foreign currency forward contracts to hedge foreign exchange risk, as it generates revenue and holds assets in U.S. dollars, but incurs a significant portion of its maintenance and policy acquisition expenses in Canadian dollars. These foreign currency contracts qualify as cash flow hedges of foreign currency expenses.

For the years ended December 31, 2007 and 2006 the Company recognized gains of $0 million and $0 million related to the ineffective portion of its cash flow hedges. For the years ended December 31, 2007 and 2006 all of the Company’s hedged forecast transactions qualified as cash flow hedges.

For the year ended December 31, 2007, a net gain of $0.5 million was reclassified from accumulated other comprehensive income to earnings. It is anticipated that approximately $0.2 million will be reclassified from accumulated other comprehensive income to earnings within the next twelve months. The maximum length for which variable cash flows are hedged is 3.6 years.

For the years ended December 31, 2007 and 2006, no cash flow hedges were discontinued because it was probable that the original forecasted transactions would not occur by the end of the originally specified time period documented at inception of the hedging relationship.

For the years ended December 31, 2007, 2006 and 2005, losses of $0.3 million, $9.8 million, and $8.3 million, (net of tax of $0.2 million, $5.3 million, and $4.5 million) representing the effective portion of the change in fair value of derivative instruments designated as cash flow hedges were added to accumulated other comprehensive income, resulting in a balance of $0.1 million, $0.4 million, and $5.1 million (net of tax of $0.1 million, $0.3 million and $2.8 million) at December 31, 2007, 2006 and 2005, respectively.

For the years ended December 31, 2007 and 2006, the Company recognized net gains of $21.6 million and net losses of $17.8 million, respectively, related to derivatives in a non-hedge relationship. These amounts are recorded in net realized investment and other gains and losses.

The Company enters into interest rate swap agreements, cancelable interest rate swap agreements, total return swaps, interest rate futures contracts, credit default swaps and interest rate cap and floor agreements to manage exposure to interest rates as described above under Fair Value Hedges, without designating the derivatives as hedging instruments.

In addition, the Company uses interest rate floor agreements to hedge the interest rate risk associated with minimum interest rate guarantees in certain of its businesses without designating the derivatives as hedging instruments.

F-21

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 3 – Derivatives and Hedging Instruments – (continued)

Outstanding derivative instruments were as follows:

	As of December 31,
	2007						2006
	Notional Amount		Carrying Value		Fair Value		Notional Amount		Carrying Value		Fair Value
	(in millions)
Assets:
Derivatives:
Interest rate swap agreements	$	1,653	$	28.2	$	28.2	$	1,230	$	33.8	$	33.8
Currency rate swap agreements		1,214		178.9		178.9		1,030		18.4		18.4
Foreign exchange forward agreements		89		8.9		8.9		38		0.2		0.2
Liabilities:
Derivatives:
Interest rate swap agreements	$	1,818	$	22.1	$	22.1	$	1,893	$	48.5	$	48.5
Currency rate swap agreements		1,567		276.4		276.4		1,128		45.1		45.1
Equity Swaps		0.5		1.4		1.4		—		—		—
Foreign exchange forward agreements		212		8.8		8.8		323		10.4		10.4
Embedded derivatives		2		—		—		2		—		—

Note 4 – Income Taxes

JH USA and its subsidiaries (collectively the companies) join with MIC and other affiliates in filing a consolidated federal income tax return. John Hancock Life Insurance Company of New York (JHNY), a wholly-owned subsidiary of the Company, filed a separate federal income tax return for the year ended December 31, 2005. JHNY joined the companies in filing a consolidated federal income tax return for the years ended December 31, 2007 and 2006.

In accordance with the income tax sharing agreements in effect for the applicable tax years, the Company’s income tax provision (or benefit) is computed as if JH USA and the companies each filed separate federal income tax returns. The tax charge to each of the respective companies will not be more than that which each company would have paid on a separate return basis. 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. Tax benefits from operating losses are provided at the U.S. statutory rate plus any tax credits attributable, provided the consolidated group utilizes such benefits currently.

The components of income tax expense were as follows:

	For the Year Ended December 31,
	2007		2006			2005
	(in millions)
Current taxes:
Federal	$	223	$	(7	)	$	128
Deferred taxes:
Federal - Restated		50		237			125
Total income tax expense - Restated	$	273	$	230		$	253

F-22

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 4 – Income Taxes – (continued)

A reconciliation of income taxes computed by applying the 35% federal income tax rate to income before income taxes to income tax expense charged to operations follows:

	For the Year Ended December 31,
	2007			2006			2005
	(in millions)
Tax at 35% — Restated	$	348		$	264		$	284
Add (deduct):
Prior year taxes		(43	)		(4	)		(9	)
Tax exempt investment income		(160	)		(42	)		(28	)
Unrecognized tax benefits		161			9			3
Credits		(35	)		—			—
Other		2			3			3
Total income tax expense — Restated	$	273		$	230		$	253

Deferred income tax assets and liabilities result from tax affecting the differences between the financial statement values and income tax values of assets and liabilities at each consolidated balance sheet date. The significant components of the Company’s deferred tax assets and liabilities were as follows:

	December 31,
	2007		2006
			Restated
	(in millions)
Deferred tax assets:
Policy reserve adjustments	$	785	$	891
Tax credits		139		79
Net operating loss carryforwards		86		—
Other		30		7
Total deferred tax assets		1,040		977
Deferred tax liabilities:
Deferred policy acquisition costs	$	1,147	$	974
Unrealized gains on securities available-for-sale		447		419
Premiums receivable		24		21
Investments		303		236
Reinsurance		104		97
Other		15		42
Total deferred tax liabilities		2,040		1,789
Net deferred tax liabilities	$	1,000	$	812

F-23

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 4 – Income Taxes – (continued)

As of December 31, 2007, the Company had $246 million of operating loss carry forwards that will expire in various years through 2022. As of December 31, 2007, the Company had $139 million of unused tax credits. Unused tax credits will expire in various years through 2025. The Company believes that it will realize the full benefit of its deferred tax assets.

The Company made income tax payments of $28 million, $9 million, and $66 million in 2007, 2006, and 2005, respectively.

The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions the Company is no longer subject to U.S. federal, state or local income tax examinations by taxing authorities for years before 1998. The Internal Revenue Service (IRS) completed its examinations for years 1998 through 2003 on December 31, 2005. The Company has filed protests with the IRS Appeals Division of various adjustments raised by the IRS in its examinations of these years. The IRS commenced an examination of the Company’s U.S. income tax returns for years 2004 through 2005 in the third quarter of 2007 that is anticipated to be completed by the end of 2009.

The Company adopted the provisions of FIN 48 on January 1, 2007. In connection with the adoption of FIN 48, the Company did not recognize an increase or decrease in its liability for unrecognized tax benefits.

A reconciliation of the beginning and ending amount of unrecognized tax benefits for 2007 is as follows:

	Amount of Unrecognized Tax Benefits as of December 31, 2007
	(in millions)
Balance as of January 1, 2007	$	230
Additions based on tax positions related to the current year		77
Reductions based on tax positions related to current year		(7	)
Additions for tax positions of prior years		89
Reductions for tax positions of prior years		(10	)
Balance as of December 31, 2007	$	379

Included in the balance as of December 31, 2007, are $291 million of unrecognized benefits that, if recognized, would affect the Company’s effective tax rate.

Included in the balance as of December 31, 2007, are $88 million of tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest or penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of taxes to an earlier period.

The Company recognizes interest expense related to unrecognized tax benefits in other operating costs and expenses and penalties in income tax expense. During the years ended December 31, 2007, and 2006, the Company recognized approximately $(24) and $17 million, in interest (benefit) expense, respectively. The Company had approximately $39 million and $63 million accrued for interest as of December 31, 2007 and December 31, 2006, respectively. The Company did not recognize any material amounts of penalties during the years ended December 31, 2007, 2006, and 2005.

F-24

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 5 – Related Party Transactions

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 direct 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. Costs incurred under the agreements were $336 million, $323 million, and $293 million for the years ended December 31, 2007, 2006, and 2005. As of December 31, 2007 the Company has amounts receivable from MFC and MLI of $18 million. As of December 31, 2006 the Company had accrued liabilities to MFC and MLI of $26 million.

There are two service agreements, both effective as of April 28, 2004, between the Company and John Hancock Life Insurance Company (JHLICO). Under one agreement, the Company provides services to JHLICO, and under the other JHLICO provides services to the Company. In both cases, the Provider of the services can also employ a Provider Affiliate to provide services. In the case of the service agreement where JHLICO provides services to the Company, a Provider Affiliate means JHLICO’s parent, John Hancock Financial Services, Inc., (JHFS), and its direct and indirect subsidiaries. Net services provided by the Company to JHLICO were $126 million for the year ended December 31, 2007, $111 million for the year ended December 31, 2006, and $92 million for the year ended December 31, 2005. As of December 31, 2007 and 2006 there were accrued receivables from JHLICO to the Company of $87 million and $104 million, respectively.

Management believes the allocation methods used for service agreements are reasonable and appropriate in the circumstances; however, the Company’s Consolidated Balance Sheets may not necessarily be indicative of the financial condition that would have existed if the Company operated as an unaffiliated entity.

On December 14, 2006, the Company issued one share of common stock to MIC for $71 million in cash.

MFC also provides a claims paying guarantee to certain U.S. policyholders.

On December 20, 2002, the Company entered into a reinsurance agreement with Manulife Reinsurance Limited (Bermuda) (MRBL), an affiliated company, to reinsure a block of variable annuity business. The contract reinsures all risks; however, the primary risk reinsured is investment and lapse risk with only limited coverage of mortality risk. Accordingly, the contract was classified as financial reinsurance and given deposit-type accounting treatment. Under the terms of the agreement, the Company received a ceding commission of $397 million, $371 million, and $338 million for the years ended December 31, 2007, 2006, and 2005, respectively. These are classified as unearned revenue. The amounts are being amortized to income as payments are made to MRBL. The balance of this unearned revenue as of December 31, 2007 and 2006 was $437 million and $425 million, respectively.

On December 31, 2003, the Company entered into a reinsurance agreement with MRBL, to reinsure 90% of the non-reinsured risk of the closed block of participating life insurance business. As approximately 90% of the mortality risk is covered under previously existing contracts with third party reinsurers and the resulting limited mortality risk is inherent in the new contract with MRBL, it was classified as financial reinsurance and given deposit-type accounting treatment. The Company retained title to the invested assets supporting this block of business. These invested assets are held in a trust on behalf of MRBL and are included in amounts due from and held for affiliates in the Consolidated Balance Sheets. The amounts held at December 31, 2007 and 2006 were $2,737 million and $2,616 million, respectively, and are accounted for as invested assets available-for-sale.

F-25

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 5 – Related Party Transactions – (continued)

Pursuant to a promissory note issued December 19, 2000 and to a Credit Agreement of the same date, the Company borrowed $250 million from an affiliate, Manulife Hungary Holdings KFT (MHHL). The maturity date with respect to this note is 365 days following the date of the borrowing; however, the note is normally renegotiated at each anniversary date. Interest is calculated at a fluctuating rate equal to 3-month U.S. dollar London Inter-Bank Offer Rate (LIBOR) plus 25 basis points and is payable quarterly. The interest rate was 5.09% as of December 31, 2007. On December 30, 2002, the Company repaid $176 million of the original principal balance. On December 21, 2007 the Company repaid $70 million of the remaining principal balance. The principal balance outstanding as of December 31, 2007 and 2006 was $4 million and $74 million, respectively. Interest expense was $4.2 million for the year ended December 31, 2007 (2006 - $4.0 million; 2005 - $2.6 million) Interest expense on all borrowings from related parties is included in other operating costs and expenses on the Consolidated Statements of Income.

Pursuant to a promissory note issued August 7, 2001 and to a Credit Agreement of the same date, the Company borrowed $4 million from MHHL. The maturity date with respect to this note is 365 days after the date of the borrowing; however, the note is normally renegotiated at each anniversary date. Interest is calculated at a fluctuating rate equal to 3-month LIBOR plus 25 basis points and is payable quarterly. The interest rate was 5.09% as of December 31, 2007. Interest expense was $0.2 million for the year ended December 31, 2007 (2006 - $0.2 million; 2005 - $0.1 million).

Pursuant to a demand promissory note dated August 16, 2006, the Company borrowed $8 million from an affiliate, P.T. Manulife Aset Manajemen Indonesia. Interest was calculated at a fluctuating rate equal to 3-month LIBOR and was payable quarterly. The interest rate was 5.37% as of December 31, 2006. The Company repaid the note on February 20, 2007. Interest expense was $0.1 million for the year ended December 31, 2007 (2006 - $0.2 million).

Pursuant to a Note Purchase Agreement dated November 10, 2006, the Company borrowed $90 million from JHLICO. The note matures on December 1, 2011 and is secured by a mortgage on the Company’s property at 601 Congress Street, Boston, MA. The note provides for interest-only payments of $0.4 million per month commencing January 1, 2007 through November 1, 2011. The interest rate for the term of this note is fixed at 5.73%. Interest expense was $5.2 million for the year ended December 31, 2007 (2006 - $0.4 million).

Pursuant to a subordinated promissory note dated December 22, 2006, the Company borrowed $136 million from an affiliate, Manulife Holdings (Delaware) LLC (MHDL). Interest is calculated at a fluctuating rate equal to 3 month LIBOR plus 30 basis points and is payable quarterly. The interest rate was 5.27% as of December 31, 2007. The note matures on December 15, 2016. Interest expense was $7.9 million for the year ended December 31, 2007 (2006 - $0.2 million).

Pursuant to a senior promissory note dated March 1, 2007, the Company borrowed $477 million from MHDL. Interest is calculated at a fluctuating rate equal to 3-month LIBOR plus 33.5 basis points and is payable quarterly. The interest rate was 5.29% as of December 31, 2007. The note matures on December 15, 2016. Interest expense was $23.4 million for the year ended December 31, 2007.

Effective January 1, 2005, the Company transferred its Taiwan branch operations to an affiliate, Manulife (International) Limited (MIL). Assets of $295 million and liabilities of $176 million were transferred. The loss on the intercompany transfer of $77 million, net of tax benefit of $42 million, was accounted for as a transaction between entities under common control and recorded as a reduction to additional paid in capital.

During the fourth quarter of 2005, a block of business of the Taiwan branch was transferred back to the Company through reinsurance, in two steps. First MIL entered into a modified coinsurance agreement with an affiliate, Manufacturers Life Reinsurance Limited (MLRL), transferring the business to MLRL. Then MLRL entered into a modified coinsurance agreement with the Company, transferring the business to the Company. The Company recorded reinsurance recoverable of $152 million, assumed policyholder liabilities of $123 million, and received a ceding commission of $102 million. These transactions were also accounted for as transactions between entities under common control, and the gain of $85 million, net of tax expense of $46 million, was recorded as an increase to additional paid in capital.

The net effect on the Company’s additional paid in capital for the transfer and reinsurance of the Taiwan branch business was an increase of $8 million in 2005.

Subsequent to the transfer it was determined that reserves on the Taiwan business needed to be strengthened by $10 million net of tax benefit of $5 million. This activity was reported in the Company’s 2005 Consolidated Statement of Income.

F-26

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 5 – Related Party Transactions – (continued)

On December 28, 2006 the Company sold real estate held for investment with a net book value of $17 million to JHILCO for $150 million in cash. Since this sale was accounted for as a transaction between entities under common control, the difference between the net book value and sales price resulted in an increase of $87 million (net of tax of $46 million) to the Company’s additional paid in capital as of December 31, 2006.

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 Liquidity Pool and Loan Facility Agreement effective November 13, 2007. The maximum aggregate amounts that the Company can accept into the Liquidity Pool are $5.0 billion in U.S. dollar deposits and $200.0 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 the funds will be reset daily to the one-month U.S. Dollar London Inter-Bank Bid (LIBID).

The following table exhibits the affiliates and their participation in the Company’s Liquidity Pool:

	December 31, 2007		December 31, 2006
Affiliate	(in millions)
The Manufacturers Investment Corporation	$	25	$	62
Manulife Holdings (Delaware) LLC		36		—
Manulife Reinsurance Ltd		158		308
Manulife Reinsurance (Bermuda) Ltd		155		318
Manulife Hungary Holdings KFT		48		33
Manulife Insurance Company		31		51
John Hancock Life Insurance Company		1,736		550
John Hancock Variable Life Insurance Company		90		202
John Hancock Insurance Company of Vermont		95		71
John Hancock Reassurance Co, Ltd		271		236
John Hancock Financial Services, Inc		550		56
The Berkeley Financial Group, LLC		12		28
John Hancock Subsidiaries, LLC		68		4
Total	$	3,275	$	1,919

The balances above are reported on the Consolidated Balance Sheets as amounts due to affiliates.

Note 6 – Reinsurance

The effect of reinsurance on life, health, and annuity premiums written and earned was as follows:

	For the years ended December 31,
	2007						2006						2005
	Premiums						Premiums						Premiums
	Written			Earned			Written			Earned			Written			Earned
Direct	$	1,148		$	1,149		$	1,294		$	1,294		$	1,319		$	1,319
Assumed		426			420			369			405			287			315
Ceded		(694	)		(694	)		(685	)		(685	)		(764	)		(764	)
Net Premiums	$	880		$	875		$	978		$	1,014		$	842		$	870

Benefits to policyholders under life, health and annuity ceded reinsurance contracts were $725 million, $423 million, and $492 million for the years ended December 31, 2007, 2006, and 2005, respectively.

F-27

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 6 – Reinsurance – (continued)

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 among the reinsurers.

Note 7 – Pension Benefit Plans and Other Postretirement Benefit Plans

The Company provides pension benefits to substantially all of its U.S. based employees. These benefits are provided through both funded qualified (the Plan) and unfunded non-qualified defined benefit and qualified defined contribution pension plans. Through the non-qualified defined benefit plans, the Company provides supplemental pension benefits to employees with compensation and/or pension benefits in excess of the qualified plan limits under applicable law. The Company uses a December 31 measurement date. Pension benefits are provided to participants of the Plan after three years of vesting. The normal form of payment under the Plan is a life annuity, payable at the normal retirement age of 65. Various optional forms of payment are available including lump sum. Early retirement benefits are actuarially equivalent to the projected age 65 cash balance account, but are subsidized for participants who were age 45 with five or more years vesting service on July 1, 1998 and who terminate employment after attaining age 50 and completing 10 years of service.

Under the Plan, accrued benefits as of July 1, 1998 under the prior plan formula, which was based on service and final average compensation, were converted to opening cash balance accounts. Cash balance accounts are credited with contribution and interest credits. Interest credits are a function of the market yield on 1-year U.S. Treasury Constant Maturities.

As of December 31, 2006, the Plan was merged with the qualified pension plan of JHLICO, with JHFS as plan sponsor. The plan features and designs were generally maintained for the different participant populations. Pursuant to the merger, all of the assets of the former plans are commingled. The aggregate pool of assets from the former plans is available to meet the obligations of the merged plan. As a result of the merger, the aggregate gains for the combined Plan fell within the 10% gain/loss corridor and resulted in an expense reduction of approximately $3 million for JH USA.

A Plan amendment to harmonize Plan features and designs for future benefit accruals for the different participant populations was agreed upon in a May 3, 2007 resolution. Additional contribution credits for participants with at least 10 years of service as of January 1, 2008 were also established as a transition measure to the harmonized design for the period 2008 through 2011. Pension benefits accrued prior to the effective date will continue to be governed by the prior plan provisions. The amendment triggered a mid-year remeasurement of assets and liabilities for pension and retiree welfare plans, which resulted in a $3 million increase in Accumulated Other Comprehensive Income. This increase was partially offset with the year-end remeasurement of assets and obligations that resulted in a $2 million decrease in Accumulated Other Comprehensive Income.

In addition, the Company provides and maintains an unfunded non-qualified defined benefit pension plan for employees whose qualified pension benefits are restricted by Internal Revenue Code limitations. Cash balance accounts are credited annually with contributions and interest credits. Interest credits are a function of the market yield on 1-year U.S. Treasury Constant Maturities. The Company makes annual cash balance credits for each participant’s compensation that is in excess of the compensation limit outlined in the Internal Revenue Code. These contributions serve to restore to each participant the benefit the participant would be entitled to under the qualified plan but for the compensation and benefit limitations in the Internal Revenue Code. The Company provides benefits to employees who terminate after three years of vesting service.

A new nonqualified pension plan was established as of January 1, 2008 with participant directed investment options. The prior plan was frozen as of January 1, 2008. The benefits accrued under the prior plan continue to be subject to the prior plan provisions.

Defined contribution plans include the Investment Incentive Plan and the Savings and Investment Plan. The Company’s expense for defined contribution plans was $7 million in 2007 (2006 - $3 million; 2005 - $4 million).

F-28

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 7 – Pension Benefit Plans and Other Postretirement Benefit Plans – (continued)

The Company has an employee welfare plan for medical and life insurance covering its retired employees hired before January 1, 2005, who have attained age 50 and have 10 or more years of service with the Company. This welfare plan provides primary medical coverage for retirees and spouses under age 65. When the retirees or the covered spouses reach age 65, Medicare provides primary coverage and this plan provides secondary coverage. This plan is contributory with the amount of contribution based on the service of the employees as at the time of retirement with contributions not required for certain select retirees. It also provides the employee with a life insurance benefit of 100% of the basic coverage just prior to retirement up to a maximum of $2.5 million.

The Plan was amended effective January 1, 2007 whereby participants who had not reached a certain age and years of service with the Company were no longer eligible for such Company contributory benefits. Also the number of years of service required to be eligible for the benefit was increased to 15 years. The future retiree life insurance coverage amount was frozen as of December 31, 2006.

Information applicable to the Employee Retirement Plans and the Post-retirement Benefit Plan as estimated by a consulting actuary for the years ended December 31, 2007 and 2006 was as follows:

Obligations and Funded Status:

	Years Ended December 31,
	Employee Retirement Plans						Post-retirement Benefit Plan
	2007			2006			2007			2006
	(in millions)
Change in benefit obligation:
Benefit obligation at beginning of year	$	121		$	118		$	28		$	35
Service cost		7			6			—			—
Interest cost		7			6			2			2
Actuarial (gain)/loss		9			(2	)		1			(7	)
Plan amendments		(7	)		—			—			—
Curtailment		(4	)		—			—			—
Benefits paid		(9	)		(7	)		(1	)		(2	)
Benefit obligation at end of year	$	124		$	121		$	30		$	28
Change in plan assets:
Fair value of plan assets at beginning of year	$	75		$	71		$	—		$	—
Actual return on plan assets		6			9						—
Employer contribution		3			2			1			2
Benefits paid		(9	)		(7	)		(1	)		(2	)
Fair value of plan assets at end of year	$	75		$	75		$	—		$	—
Funded status at end of year	$	(49	)	$	(46	)	$	(30	)	$	(28	)
Current liabilities		(2	)		(2	)		—			—
Noncurrent liabilities		(47	)		(44	)		(30	)		(28	)
Net financial position	$	(49	)	$	(46	)	$	(30	)	$	(28	)
Amounts recognized in the accumulated other comprehensive income Prior service cost	$	(5	)	$	2		$	—		$	—
Net actuarial loss/(gain)		48			43			(11	)		(12	)
Total	$	43		$	45		$	(11	)	$	(12	)

F-29

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 7 – Pension Benefit Plans and Other Postretirement Benefit Plans – (continued)

The incremental effects of applying SFAS 158 to individual line items in the Consolidated Balance Sheet on December 31, 2006 were as follows:

	Pre SFAS 158		Incremental effect of adopting SFAS 158			Post SFAS 158
	Restated					Restated
	(in millions)
Other assets	$	1,299	$	(23	)	$	1,276
Total assets	$	124,818	$	(23	)	$	124,795
Deferred income tax liability	$	810	$	2		$	812
Other liabilities	$	1,520	$	(28	)	$	1,492
Total liabilities	$	120,135	$	(26	)	$	120,109
Accumulated other comprehensive income	$	474	$	3		$	477
Total shareholder’s equity	$	4,683	$	3		$	4,686

Information for pension plans with accumulated benefit obligations in excess of plan assets:

	As of December 31,
	2007		2006
	(in millions)
Accumulated benefit obligations	$	117	$	107
Projected benefit obligations		124		121
Fair value of plan assets		75		75

Components of Net Periodic Benefit Cost:

	Years Ended December 31,
	Pension Benefits									Other Postretirement Benefits
	2007			2006			2005			2007		2006		2005
	(in millions)
Service cost	$	7		$	6		$	6		$	—	$	—	$	2
Interest cost		7			6			6			2		2		2
Expected return on plan assets		(6	)		(5	)		(5	)		—		—		—
Amortization of prior service cost		—			—			—			—		—		1
Recognized actuarial loss (gain)		1			3			3			—		—		(1	)
Net periodic benefit cost	$	9		$	10		$	10		$	2	$	2	$	4

The amounts included in accumulated other comprehensive income expected to be recognized as components of net periodic cost in 2008 are as follows:

	Pension Benefits			Other Postretirement Benefits
	(in millions)
Amortization of prior service cost	$	(0.5	)	$	0.1
Amortization of actuarial (gain) loss, net		0.1			—
Total	$	(0.4	)	$	0.1

F-30

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 7 – Pension Benefit Plans and Other Postretirement Benefit Plans – (continued)

Assumptions:

Weighted-average assumptions used to determine benefit obligation were as follows:

	Years Ended December 31,
	Pension Benefits				Other Postretirement Benefits
	2007		2006		2007		2006
Discount rate	6.00	%	5.75	%	6.00	%	5.75	%
Rate of compensation increase	5.10	%	4.00	%	N/A		N/A
Health care trend rate for following year	N/A		N/A		9.00	%	9.50	%
Ultimate trend rate	N/A		N/A		5.00	%	5.00	%
Year ultimate rate reached	N/A		N/A		2016		2016

Weighted-average assumptions used to determine net periodic benefit cost were as follows:

	Years Ended December 31,
	Pension Benefits				Other Postretirement Benefits
	2007		2006		2007		2006
Discount rate	5.75	%	5.50	%	5.75	%	5.50	%
Expected long-term return on plan assets	8.25	%	8.25	%	N/A		N/A
Rate of compensation increase	4.00	%	4.00	%	N/A		N/A
Health care trend rate for following year	N/A		N/A		9.50	%	10.00	%
Ultimate trend rate	N/A		N/A		5.00	%	5.00	%
Year ultimate rate reached	N/A		N/A		2016		2016

The Company generally determines the assumed long-term rate of return on plan assets based on the rate expected to be earned for plan assets. The asset mix based on the long-term investment policy and range of target allocation percentages of the plans and the Capital Asset Pricing Model are used as part of that determination. Current conditions and published commentary and guidance from SEC staff are also considered.

Assumed health care cost trend rates have a significant effect on the amounts reported for the healthcare plans. A one-percentage point change in assumed health care cost trend rates would have the following effects:

	1-Percentage Point Increase		1-Percentage Point Decrease
	(in millions)
Effect on total service and interest costs in 2007	$	0.1	$	(0.1	)
Effect on postretirement benefit obligations as of December 31, 2007	$	1.7	$	(1.5	)

Plan Assets

The Company’s weighted-average asset allocations for its pension plans at December 31, 2007 and 2006 by asset category were as follows:

	Plan Assets at December 31,
	2007		2006
Asset Category
Equity securities	64	%	66	%
Fixed maturity securities	26		29
Real estate	3		5
Other	7		—
Total	100	%	100	%

F-31

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 7 – Pension Benefit Plans and Other Postretirement Benefit Plans – (continued)

The target asset allocations for the Company’s pension plans are summarized below for major asset categories:

Asset Category
Equity securities	50%-80%
Fixed maturity securities	23% - 35%
Real estate	0% - 5%
Other	5% - 15%

The plans did not own any of the Company’s stock at December 31, 2007 and 2006.

Cash Flows

Contributions

The Company’s funding policy for its qualified defined benefit plans is to contribute annually an amount at least equal to the minimum annual contribution required under the Employee Retirement Income Security Act (ERISA) and other applicable laws, and generally, not greater than the maximum amount that can be deducted for Federal income tax purposes. In 2007 and 2006, no contributions were made to the qualified plans. The funding policy for its non-qualified defined benefit plans is to contribute the amount of the benefit payments made during the year. In 2007 and 2006, $3 million and $2 million, respectively, were contributed to the non-qualified plans. The Company expects to contribute approximately $0 million to its qualified pension plans in 2008 and approximately $2 million to its non-qualified pension plans in 2008.

The Company’s policy is to fund its other postretirement benefits in amounts at or below the annual tax qualified limits.

Projected Employer Pension Benefits Payments

Projections for benefit payments for the next ten years are as follows:

Year	Total Qualified		Total Nonqualified		Total
	(in millions)
2008	$	8	$	2	$	10
2009		9		2		11
2010		9		2		11
2011		9		2		11
2012		7		3		10
2013-2017		41		12		53

Projected Employer Postretirement Benefits Payments (includes Future Service Accruals)

Year	Gross Payments		Medicare Part D Subsidy		Net Payments
	(in millions)
2008	$	1.9	$	0.1	$	1.8
2009		1.9		0.1		1.8
2010		2.0		0.2		1.8
2011		2.1		0.2		1.9
2012		2.1		0.2		1.9
2013-2017		11.0		0.7		10.3

F-32

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 8 – Commitments and Contingencies

Commitments

As of December 31, 2007, the Company had outstanding commitments involving seven mortgage applications in the United States for a total of $112 million to be disbursed in 2008.

On December 19, 2006 the Company entered into a purchase and sale agreement to acquire $154 million of real estate to be held for investment. The purchase closed on February 6, 2007.

The Company leases office space under non-cancelable operating lease agreements of various expiration dates. Rental expenses were $12 million for the year ended December 31, 2007 (2006 - $11 million; 2005 - $11 million).

During 2001, the Company entered into an office ground lease agreement, which expires on September 20, 2096. The terms of the lease agreement provide for adjustments in future periods. The approximate minimum aggregate rental commitments on the ground lease together with other rental office space commitments are as follows:

	Operating Leases
	(in millions)
2008	$	2
2009		2
2010		2
2011		2
2012		2
Thereafter		413
Total	$	423

There were no other material operating leases in existence as of December 31, 2007.

Legal Proceedings. The Company is regularly involved in litigation, both as a defendant and as a plaintiff. The litigation naming it as a defendant ordinarily involves its activities as a provider of insurance protection and wealth management products, employer and taxpayer. In addition, state regulatory bodies, state attorneys general, the United States Securities and Exchange Commission, the Financial Industry 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. The Company does not believe that the conclusion of any current legal or regulatory matters, either individually or in the aggregate, will have a material adverse effect on its consolidated financial position and results of operations.

Note 9 – Shareholder’s Equity

Capital Stock

The Company has two classes of capital stock:

Preferred stock, $1.00 par value, 50,000,000 shares authorized, 100,000 shares issued and outstanding at December 31, 2007 and 2006.

Common stock, $1.00 par value, 50,000,000 shares authorized, 4,728,935 shares issued and outstanding at December 31, 2007 and 2006.

All outstanding common and preferred stock is owned by the Company’s parent, MIC.

F-33

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 9 – Shareholder’s Equity – (continued)

Accumulated Other Comprehensive Income

Changes in accumulated other comprehensive income for the years indicated are presented below:

	Net Unrealized Investment Gains (Losses)			Net Accumulated Gain (Loss) on Cash Flow Hedges			Foreign Currency Translation Adjustment			Minimum Pension Liability Adjustment			Accumulated Other Comprehensive Income
	(in millions)
Balance at January 1, 2005 — Restated	$	610		$	9		$	123		$	(4	)	$	738
Gross unrealized gains (net of deferred income tax expense of $1 million) — Restated		1												1
Reclassification adjustment for gains realized in net income (net of deferred income tax expense of $67 million) — Restated		(125	)											(125	)
Adjustment for participating group annuity contracts (net of deferred income tax benefit of $7 million)		(14	)											(14	)
Adjustment for deferred policy acquisition costs and deferred sales inducements (net of deferred income tax expense of $18 million) — Restated		34												34
Net unrealized investment losses — Restated		(104	)											(104	)
Foreign currency translation adjustment — Restated								(87	)					(87	)
Minimum pension liability (net of deferred income tax benefit of $11)											(21	)		(21	)
Net accumulated losses on cash flow hedges (net of deferred income tax benefit of $0)					(1	)								(1	)
Balance at December 31, 2005 — Restated	$	506		$	8		$	36		$	(25	)	$	525

	Net Unrealized Investment Gains (Losses)			Net Accumulated Gain (Loss) on Cash Flow Hedges		Foreign Currency Translation Adjustment			Minimum Pension Liability Adjustment			Additional Pension and Postretirement Unrecognized Net Periodic Cost			Accumulated Other Comprehensive Income
	(in millions)
Balance at January 1, 2006 — Restated	$	506		$	8	$	36		$	(25	)	$	0		$	525
Gross unrealized losses (net of deferred income tax benefit of $32 million) — Restated		(60	)													(60	)
Reclassification adjustment for losses realized in net income (net of deferred income tax benefit of $2 million) — Restated		5														5
Adjustment for participating group annuity contracts (net of deferred income tax expense of $15 million)		28														28
Adjustment for deferred policy acquisition costs and deferred sales inducements (net of deferred income tax benefit of $10 million) — Restated		(19	)													(19	)
Net unrealized investment losses — Restated		(46	)													(46	)
Foreign currency translation adjustment — Restated							(5	)								(5	)
Minimum pension liability (net of deferred income tax expense of $3 million)										5						5
SFAS 158 transition adjustment										20			(22	)		(2	)
Net accumulated losses on cash flow hedges (net of deferred income tax benefit of $0)					—											—
Balance at December 31, 2006 — Restated	$	460		$	8	$	31		$	_—		$	(22	)	$	477

F-34

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 9 – Shareholder’s Equity – (continued)

	Net Unrealized Investment Gains (Losses)			Net Accumulated Gain (Loss) on Cash Flow Hedges			Foreign Currency Translation Adjustment			Additional Pension and Postretirement Unrecognized Net Periodic Cost			Accumulated Other Comprehensive Income
	(in millions)
Balance at January 1, 2007 — Restated	$	460		$	8		$	31		$	(22	)	$	477
Gross unrealized gains (net of deferred income tax expense of $135 million)		250												250
Reclassification adjustment for gains realized in net income (net of deferred income tax expense of $51 million)		(94	)											(94	)
Adjustment for participating group annuity contracts (net of deferred income tax expense of $11 million)		19												19
Adjustment for deferred policy acquisition costs and deferred sales inducements (net of deferred income tax benefit of $27 million)		(51	)											(51	)
Net unrealized investment gains		124												124
Foreign currency translation adjustment								(4	)					(4	)
Change in funded status of pension plan, less amortization of periodic pension costs											1			1
Net accumulated losses on cash flow hedges (net of deferred income tax benefit of $7)					(13	)								(13	)
Balance at December 31, 2007	$	584		$	(5	)	$	27		$	(21	)	$	585

Net unrealized investment gains included in the Consolidated Balance Sheets as a component of shareholder’s equity are summarized below:

	2007			2006			2005
As of December 31:	(in millions)
Balance, end of year comprises:
Unrealized investment gains (losses) on:
Fixed maturities available for sale — Restated	$	855		$	634		$	864
Equity securities available for sale — Restated		435			417			258
Other, net		(6	)		(7	)		8
Total — Restated		1,284			1,044			1,130
Amounts of unrealized investment gains attributable to:
Deferred policy acquisition costs and deferred sales inducements — Restated		208			130			102
Participating group annuity contracts		176			208			251
Deferred income taxes — Restated		316			246			271
Total		700			584			624
Net unrealized investment gains — Restated	$	584		$	460		$	506

F-35

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 9 – Shareholder’s Equity—(continued)

Statutory Results

JH USA and its domestic insurance subsidiary, JHNY, prepare their statutory-basis financial statements in accordance with accounting practices prescribed or permitted by the states of domicile. For JH USA, the State of Michigan only recognizes statutory accounting practices prescribed or permitted by Michigan insurance regulations and laws. The National Association of Insurance Commissioners’ Accounting Practices and Procedures manual has been adopted as a component of prescribed or permitted practices by Michigan. The Michigan Commissioner of Insurance has the right to permit other specific practices that deviate from prescribed practices, otherwise known as permitted practices.

At December 31, 2007, 2006, and 2005 there were no permitted practices.

The Company’s statutory net loss for the year ended December 31, 2007 was $41 million (unaudited). The Company’s statutory capital and surplus was $1,493 million as of December 31, 2007 (unaudited).

Michigan has enacted laws governing the payment of dividends by insurers. Under Michigan insurance law, no insurer may pay any shareholder dividends from any source other than statutory unassigned funds without the prior approval of the Michigan Division of Insurance. Michigan law also limits the dividends an insurer may pay in any twelve month period, without the prior permission of the Michigan Division of Insurance, to the greater of (i) 10% of its statutory policyholders’ surplus as of the preceding December 31 or (ii) the individual company’s statutory net gain from operations for the preceding calendar year, if such insurer is a life company.

As a result of the demutualization of MLI there are regulatory restrictions on the amounts of participating profit that can be transferred to shareholders. These restrictions generally take the form of a fixed percentage of policyholder dividends. The transfers are governed by the terms of MLI’s Plan of Demutualization.

Note 10 – Segment Information

The Company operates in three business segments. Two segments, Protection and Wealth Management, primarily serve retail and institutional customers. The third, Corporate, includes activities not allocated to the other two segments, and the Company’s reinsurance operations.

The Company’s reportable segments are strategic business units offering different products and services. The reportable segments are managed separately, as they focus on different products, markets and distribution channels.

Protection Segment. Offers a variety of individual life insurance products, including participating whole life, term life, universal life and variable life insurance. Products are distributed through multiple distribution channels, including insurance agents and brokers and alternative distribution channels that include banks, financial planners, and direct marketing.

Wealth Management Segment. Offers individual and group annuity contracts and group pension contracts. This segment distributes its products through multiple distribution channels, including insurance agents and brokers affiliated with the Company, securities brokerage firms, financial planners, and banks.

Corporate Segment. Includes corporate operations primarily related to certain financing activities and income on capital not specifically allocated to the reporting segments. The Company’s reinsurance operations are also reported in this segment. Reinsurance refers to the transfer of all or part of certain risks related to policies issued by the Company to a reinsurer, or to the assumption of risk from other insurers.

The accounting policies of the segments are the same as those described above in Note 1 – Summary of Significant Accounting Policies. Allocations of net investment income are based on the amount of invested assets allocated to each segment. Other costs and operating expenses are allocated to each segment based on a review of the nature of such costs, cost allocations utilizing time studies, and other relevant allocation methodologies.

F-36

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 10 – Segment Information – (continued)

The following tables summarize selected consolidated financial information by segment for the periods indicated:

	Protection		Wealth Management			Corporate			Consolidated
	(in millions)
Year ended December 31, 2007
Revenues:
Revenues from external customers	$	1,844	$	2,057		$	236		$	4,137
Net investment income		782		242			313			1,337
Net realized investment and other gains (losses)		68		(6	)		100			162
Revenues	$	2,694	$	2,293		$	649		$	5,636
Net income:	$	210	$	318		$	191		$	719
Supplemental Information:
Equity in net loss of investees accounted for by the equity method		—		—		$	(2	)	$	(2	)
Carrying value of investments accounted for by the equity method		—		—			37			37
Amortization of deferred policy acquisition costs and deferred sales inducements	$	301	$	277			6			584
Interest expense		—		27			41			68
Income tax expense		108		55			110			273
Segment assets		21,436		111,302			12,010			144,748

	Protection		Wealth Management		Corporate			Consolidated
	(in millions)
Year ended December 31, 2006
Revenues:
Revenues from external customers	$	1,483	$	1,632	$	382		$	3,497
Net investment income		712		225		226			1,163
Net realized investment and other gains (losses) — Restated		104		20		(92	)		32
Revenues — Restated	$	2,299	$	1,877	$	516		$	4,692
Net income (loss): — Restated	$	208	$	324	$	(7	)	$	525
Supplemental Information:
Equity in net loss of investees accounted for by the equity method		—		—	$	(2	)	$	(2	)
Carrying value of investments accounted for by the equity method		—		—		40			40
Amortization of deferred policy acquisition costs and deferred sales inducements — Restated	$	242	$	303		(9	)		536
Interest expense		—		21		5			26
Income tax expense — Restated		111		115		4			230
Segment assets — Restated		19,006		95,752		10,037			124,795

F-37

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 10 – Segment Information – (continued)

	Protection		Wealth Management		Corporate			Consolidated
	(in millions)
Year ended December 31, 2005
Revenues:
Revenues from external customers	$	1,207	$	1,225	$	207		$	2,639
Net investment income		723		220		226			1,169
Net realized investment and other gains — Restated		111		32		88			231
Revenues — Restated	$	2,041	$	1,477	$	521		$	4,039
Net income — Restated	$	160	$	272	$	127		$	559
Supplemental Information:
Equity in net loss of investees accounted for by the equity method		—		—	$	(2	)	$	(2	)
Carrying value of investments accounted for by the equity method		—		—		42			42
Amortization of deferred policy acquisition costs and deferred sales inducements — Restated	$	79	$	243		5			327
Interest expense		—		26		3			29
Income tax expense — Restated		86		95		71			253

Note 11 – Fair Value of Financial Instruments

The following discussion outlines the methodologies and assumptions used to determine the fair value of the Company’s financial instruments. The aggregate fair value amounts presented below do not represent the underlying value of the Company and, accordingly, care should be exercised in drawing conclusions about the Company’s business or financial condition based on the fair value information presented below.

For fixed maturity securities and equity securities, fair values were based on quoted market prices where available. Where no quoted market price was available, fair values were estimated using values obtained from independent pricing services or, in the case of fixed maturity private placements, by discounting expected future cash flows using a current market rate applicable to yield, credit quality, and average life of the investments.

The fair value of mortgage loans was estimated using discounted cash flows and took 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 values of policy loans, short term investments, and cash and cash equivalents approximated their respective carrying values.

The fair values of fixed rate deferred and immediate annuities, which do not subject the Company to significant mortality or morbidity risks, were estimated by using the cash surrender values.

Fair values of derivative financial instruments were based on current settlement values. These values were based on quoted market prices for the financial futures contracts and brokerage quotes that utilize pricing models or formulas using current assumptions for all swaps and other agreements.

F-38

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 11 – Fair Value of Financial Instruments – (continued)

The following table presents the carrying values and fair values of the Company’s financial instruments:

	December 31,
	2007				2006
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)
Assets:
Fixed maturities	$	13,689	$	13,689	$	11,629	$	11,629
Equity securities		956		956		1,022		1,022
Mortgage loans on real estate		2,414		2,424		2,446		2,478
Policy loans		2,519		2,519		2,340		2,340
Short term investments		2,723		2,723		645		645
Cash and cash equivalents		3,345		3,345		4,112		4,112
Derivative financial instruments		216		216		52		52
Liabilities:
Fixed rate deferred and immediate annuities		2,777		2,739		2,526		2,487
Derivative financial instruments		309		309		104		104

Note 12 – Certain Separate Accounts

The Company issues variable annuity and variable life contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder. All contracts contain certain guarantees, which are discussed more fully below.

During 2007 and 2006 there were no gains or losses on transfers of assets from the general account to the separate account. The assets supporting the variable portion of both traditional variable annuities and variable annuities with guarantees are carried at fair value and reported on the Consolidated Balance Sheets as total separate account assets with an equivalent total reported for separate account liabilities. Amounts assessed against the contract holders for mortality, administrative, and other services are included in revenues and changes in liabilities for minimum guarantees are included in benefits to policyholders in the Consolidated Statements of Income.

Many of the variable annuity contracts issued by the Company offer various guaranteed minimum death, income and /or withdrawal benefits. Guaranteed Minimum Death Benefit (GMDB) features guarantee the contract holder either (a) 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 or (c) the highest contract value on a specified anniversary date minus any withdrawals following the contract anniversary. Contracts issued after December 31, 2002 have a proportional reduction in the amount guaranteed for partial withdrawal instead of a dollar-for-dollar reduction. As of December 31, 2007, 40% of the in-force contract values have reduction of benefit on a dollar-for dollar basis, and 60% on a proportional basis.

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 (7-10 years), and which may be larger than what the contract account balance would purchase at then-current annuity purchase rates.

In 2004, the Company introduced a Guaranteed Minimum Withdrawal Benefit (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.

F-39

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 12 – Certain Separate Accounts – (continued)

Reinsurance has been utilized to mitigate risk related to GMDB and GMIB. Hedging has been utilized to mitigate risk related to some of the GMWB.

The Company’s variable annuity contracts with guarantees may offer more than one type of guarantee in each contract. Therefore, the amounts listed are not mutually exclusive. For guarantees of amounts in the event of death, the net amount at risk is defined as the GMDB in excess of the account balance at the Consolidated Balance Sheet date. For guarantees of amounts at annuitization, the net amount at risk is defined as the excess of the current annuitization income base over the current account value. For guarantees of partial withdrawal amounts, 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 table below shows the net amount at risk net of reinsurance.

As of December 31, 2007 and 2006, the Company had the following variable annuity contracts with guarantees:

	December 31, 2007			December 31, 2006
	(in millions, except percent)
Guaranteed Minimum Death Benefit:
Return of net deposits
In the event of death:
Account value	$	17,510		$	11,869
Net amount at risk – net of reinsurance		47			1
Average attained age of contract holders		55			56
Return of net deposits plus a minimum return
In the event of death:
Account value	$	714		$	786
Net amount at risk – net of reinsurance		—			—
Average attained age of contract holders		65			64
Guaranteed minimum return rate		5	%		5	%
Highest specified anniversary account value minus withdrawals post anniversary
In the event of death:
Account value	$	32,750		$	30,956
Net amount at risk – net		190			53
Average attained age of contract holders		54			54
Guaranteed Minimum Income Benefit:
Account value	$	9,552		$	11,277
Net amount at risk – net of reinsurance		29			27
Average attained age of contract holders		52			51
Guaranteed Minimum Withdrawal Benefit:
Account value	$	28,582		$	19,275
Net amount at risk		116			1
Average attained age of contract holders		54			54

F-40

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 12 – Certain Separate Accounts – (continued)

Account balances of variable contracts with guarantees invest in variable separate accounts with the following characteristics:

Type of Fund	December 31, 2007		December 31, 2006
	(in billions)
Domestic Equity	$	12.6	$	13.7
International Equity		3.0		2.5
Balanced		30.1		22.7
Bonds		3.6		3.4
Money Market		0.9		0.7
Total	$	50.2	$	43.0

The reserve roll forwards for the separate accounts as of December 31, 2007 and 2006 were as follows:

	Guaranteed Minimum Death Benefit (GMDB)			Guaranteed Minimum Income Benefit (GMIB)			Guaranteed Minimum Withdrawal Benefit (GMWB)			Totals
	(in millions)
Balance at January 1, 2007	$	80		$	208		$	95		$	383
Incurred guarantee benefits		(48	)		(122	)		—			(170	)
Other reserve changes		57			70			473			600
Balance at December 31, 2007		89			156			568			813
Reinsurance recoverable		(36	)		(586	)		—			(622	)
Net balance at December 31, 2007	$	53		$	(430	)	$	568		$	191
Balance at January 1, 2006	$	75		$	169		$	(14	)	$	230
Incurred guarantee benefits		(51	)		(33	)		—			(84	)
Other reserve changes		56			72			109			237
Balance at December 31, 2006		80			208			95			383
Reinsurance recoverable		(35	)		(518	)		—			(553	)
Net balance at December 31, 2006	$	45		$	(310	)	$	95		$	(170	)

The gross reserves and ceded reserves for GMDB and the gross reserves for GMIB were determined in accordance with Statement of Position 03-1 – Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts (SOP 03-1), whereas the asset for GMIB reinsurance and gross reserve for GMWB were determined in accordance with SFAS 133 Accounting for Derivative Instruments and Hedging Activities (SFAS 133). The Company regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefits to policyholders, if actual experience or other evidence suggests that earlier assumptions should be revised.

The following assumptions and methodology were used to determine the above amounts as of December 31, 2007 and 2006:

• Data used included 1,000 stochastically generated investment performance scenarios. For SFAS 133 calculations, risk neutral scenarios have been used.

• Mean return and volatility assumptions have been determined for each of the asset classes noted above. Market consistent observed volatilities are used where available for SFAS 133 calculations.

• Annuity mortality was based on 1994 MGDB table multiplied by factors varied by rider types (living benefit/GMDB only) and qualified/non-qualified business.

• Annuity base lapse rates vary by contract type and duration and range from 1% to 42 % (2006 – 1% to 42%).

• Partial withdrawal rates for GMWB are approximately 4.6% per year (2006 – 5.0%).

• The discount rate is 7.0% (inforce issued before 2004) or 6.4% (inforce issued after 2003) for SOP 03-1 calculations and 4.72% (2006 – 5.24%) for SFAS 133 calculations.

F-41

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 13 – Deferred Policy Acquisition Costs and Deferred Sales Inducements

The components of the change in Deferred Policy Acquisition Costs were as follows:

	2007			2006
				Restated
For the years ended December 31,	(in millions)
Balance, January 1	$	4,655		$	4,070
Capitalization		1,637			1,115
Amortization		(550	)		(501	)
Effect of net unrealized gains on available-for-sale securities		(78	)		(29	)
Balance, December 31	$	5,664		$	4,655

The components of the change in Deferred Sales Inducements were as follows:

	2007			2006
For the years ended December 31,	(in millions)
Balance, January 1	$	235		$	231
Capitalization		63			39
Amortization		(34	)		(35	)
Balance, December 31	$	264		$	235

Note 14 – Share Based Payments

The Company participates in the stock compensation plans of MFC. The Company adopted the fair-value-based method of accounting for share-based payments effective January 1, 2002 using the prospective method described in SFAS 148, Accounting for Stock-Based Compensation-Transition and Disclosure. The Company uses the Black-Scholes option pricing model to estimate the value of stock options granted to employees and continues to use this model after adopting SFAS 123R on January 1, 2006. Had the Company adopted SFAS 123R in prior periods, the impact of that guidance would have approximated the impact of SFAS 123. The stock-based compensation is a legal obligation of MFC, but in accordance with U.S. generally accepted accounting principles, is recorded in the accounts of the Company in other operating costs and expenses.

Stock Options (ESOP)

Under MFC’s Executive Stock Option Plan (ESOP), stock options are granted to selected individuals. Options provide the holder with the right to purchase common shares at an exercise price equal to the closing market price of MFC’s common shares on the Toronto Stock Exchange on the business day immediately preceding the date the options were granted. The options vest over a period not exceeding four years and expire not more than 10 years from the grant date. A total of 73.6 million common shares have been reserved for issuance under the ESOP.

MFC grants deferred share units (DSUs) under the ESOP and the Stock Plan for Non-Employee Directors. Under the ESOP, the holder is entitled to receive cash payment equal to the value of the same number of common shares plus credited dividends on retirement or termination of employment. These DSUs vest over a three-year period and each DSU entitles the holder to receive one common share on retirement or termination of employment. When dividends are paid on MFC’s common shares, holders of DSUs are deemed to receive dividends at the same rate, payable in the form of additional DSUs. Under the Stock Plan for Non-Employee Directors, each eligible director may elect to receive his or her annual director’s retainer and fees in DSUs or common shares in lieu of cash. Upon termination of board service, an eligible director who has elected to receive DSUs will be entitled to receive cash equal to the value of the DSUs accumulated in his or her account or, at his or her direction, an equivalent number of common shares. A total of one million common shares of MFC have been reserved for issuance under the Stock Plan for Non-Employee Directors. In 2007, MFC issued a total of 191,000 DSUs (2006 – 181,000) to certain employees who elected to defer receipt of all or part of their annual bonus. Also in 2007, MFC issued a total of 260,000 DSUs (2006 – 720,000) to certain employees who elected to defer payment of all or part of their 2004 restricted share units. Restricted share units are discussed below. The DSUs issued in 2007 and 2006 vested immediately upon issue.

F-42

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Note 14 – Share Based Payments – (continued)

Stock Options (ESOP) – continued

The Company recorded compensation expense for stock options granted of $4.5 million during the year ended December 31, 2007 (2006 - $4.5 million; 2005 - $4.5 million).

Global Share Ownership Plan (GSOP)

Effective January 1, 2001, MFC established the Global Share Ownership Plan (GSOP) for its eligible employees and the Stock Plan for Non-Employee Directors. Under the GSOP, qualifying employees can choose to have up to 5% of their annual base earnings applied toward the purchase of common shares of MFC. Subject to certain conditions, MFC will match a percentage of the employee’s eligible contributions to certain maximums. MFC’s contributions vest immediately. All contributions are used by the GSOP’s trustee to purchase common shares in the open market. The Company’s compensation expense related to the GSOP was $1.1 million for the year ended December 31, 2007 (2006 - $0.9 million; 2005 - $0.3 million).

Restricted Share Unit Plan (RSU)

In 2003, MFC established the Restricted Share Unit (RSU) Plan. For the year ended December 31, 2007, MFC granted a total of 1.5 million (2006 – 1.6 million) RSUs to certain eligible employees under this plan. RSUs represent phantom common shares of MFC that entitle a participant to receive payment equal to the market value of the same number of common shares, plus credited dividends, at the time the RSUs vest. RSUs vest three years from the grant date, subject to performance conditions, and the related compensation expense is recognized over this period, except where the employee is eligible to retire prior to the vesting date, in which case the cost is recognized over the period between the grant date and the date on which the employee is eligible to retire. The Company’s compensation expense related to RSUs was $16.3 million for the year ended December 31, 2007 (2006 - $13.8 million; 2005 - $27.4 million).

F-43

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

Audited Financial Statements

Year ended December 31, 2007 with Report of Independent Registered Public Accounting Firm

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

Audited Financial Statements

Year ended December 31, 2007

Contents

Report of Independent Registered Public Accounting Firm	3
Statements of Assets and Contract Owners’ Equity	6
Statements of Operations and Changes in Contract Owners’ Equity	10
Notes to Financial Statements	75
Organization	75
Significant Accounting Policies	76
Contract Charges	77
Purchases and Sales of Investments	77
Transaction with Affiliates	80
Diversification Requirements	81
Financial Highlights	82

Report of Independent Registered Public Accounting Firm

To the Contract Owners of

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

We have audited the accompanying statements of assets and contract owners’ equity of John Hancock Life Insurance Company (U.S.A.) Separate Account A (the “Account”), comprised of the following sub-accounts:

500 Index Trust B Series 0	Financial Services Trust Series 1
500 Index Trust Series 1	Fundamental Value Trust Series 0
Active Bond Trust Series 0	Fundamental Value Trust Series 1
Active Bond Trust Series 1	Global Allocation Trust Series 0
All Cap Core Trust Series 0	Global Allocation Trust Series 1
All Cap Core Trust Series 1	Global Bond Trust Series 0
All Cap Growth Trust Series 0	Global Bond Trust Series 1
All Cap Growth Trust Series 1	Global Trust Series 0
All Cap Value Trust Series 0	Global Trust Series 1
All Cap Value Trust Series 1	Growth & Income Trust Series 0
American Blue Chip Income and Growth Trust Series 1	Health Sciences Trust Series 0
American Bond Trust Series 1	Health Sciences Trust Series 1
American Growth Trust Series 1	High Yield Trust Series 0
American Growth-Income Trust Series 1	High Yield Trust Series 1
American International Trust Series 1	Income & Value Trust Series 0
Blue Chip Growth Trust Series 0	Income & Value Trust Series 1
Blue Chip Growth Trust Series 1	International Core Trust Series 0
Capital Appreciation Trust Series 0	International Core Trust Series 1
Capital Appreciation Trust Series 1	International Equity Index Trust A Series 1
Classic Value Trust Series 0	International Equity Index Trust B Series 0
Classic Value Trust Series 1	International Opportunities Trust Series 0
Core Bond Trust Series 0	International Opportunities Trust Series 1
Core Bond Trust Series 1	International Small Cap Trust Series 0
Core Equity Trust Series 0	International Small Cap Trust Series 1
Core Equity Trust Series 1	International Value Trust Series 0
Dynamic Growth Trust Series 0	International Value Trust Series 1
Dynamic Growth Trust Series 1	Investment Quality Bond Trust Series 0
Emerging Growth Trust Series 0	Investment Quality Bond Trust Series 1
Emerging Growth Trust Series 1	Large Cap Trust Series 0
Emerging Markets Value Trust Series 0	Large Cap Trust Series 1
Emerging Markets Value Trust Series 1	Large Cap Value Trust Series 0
Emerging Small Company Trust Series 0	Large Cap Value Trust Series 1
Emerging Small Company Trust Series 1	Lifestyle Aggressive Trust Series 0
Equity-Income Trust Series 0	Lifestyle Aggressive Trust Series 1
Equity-Income Trust Series 1	Lifestyle Balanced Trust Series 0
Financial Services Trust Series 0	Lifestyle Balanced Trust Series 1

3

Lifestyle Conservative Trust Series 0	Small Cap Trust Series 1
Lifestyle Conservative Trust Series 1	Small Cap Value Trust Series 0
Lifestyle Growth Trust Series 0	Small Cap Value Trust Series 1
Lifestyle Growth Trust Series 1	Small Company Trust Series 0
Lifestyle Moderate Trust Series 0	Small Company Trust Series 1
Lifestyle Moderate Trust Series 1	Small Company Value Trust Series 0
Managed Trust Series 0	Small Company Value Trust Series 1
Mid Cap Index Trust Series 0	Special Value Trust Series 0
Mid Cap Index Trust Series 1	Special Value Trust Series 1
Mid Cap Intersection Trust Series 0	Strategic Bond Trust Series 0
Mid Cap Stock Trust Series 0	Strategic Bond Trust Series 1
Mid Cap Stock Trust Series 1	Strategic Income Trust Series 0
Mid Cap Value Trust Series 0	Strategic Income Trust Series 1
Mid Cap Value Trust Series 1	Strategic Opportunities Trust Series 0
Mid Value Trust Series 0	Strategic Opportunities Trust Series 1
Money Market Trust B Series 0	Total Bond Market Trust B Series 0
Money Market Trust Series 1	Total Return Trust Series 0
Natural Resources Trust Series 0	Total Return Trust Series 1
Natural Resources Trust Series 1	Total Stock Market Index Trust Series 0
Overseas Equity Trust Series 0	Total Stock Market Index Trust Series 1
Pacific Rim Trust Series 0	U.S. Core Trust Series 0
Pacific Rim Trust Series 1	U.S. Core Trust Series 1
Quantitative All Cap Trust Series 0	U.S. Global Leaders Growth Trust Series 0
Quantitative All Cap Trust Series 1	U.S. Global Leaders Growth Trust Series 1
Quantitative Mid Cap Trust Series 0	U.S. Government Securities Trust Series 0
Quantitative Mid Cap Trust Series 1	U.S. Government Securities Trust Series 1
Quantitative Value Trust Series 0	U.S. High Yield Bond Trust Series 0
Quantitative Value Trust Series 1	U.S. High Yield Bond Trust Series 1
Real Estate Securities Trust Series 0	U.S. Large Cap Trust Series 0
Real Estate Securities Trust Series 1	U.S. Large Cap Trust Series 1
Real Return Bond Trust Series 0	Utilities Trust Series 0
Real Return Bond Trust Series 1	Utilities Trust Series 1
Science & Technology Trust Series 0	Value Trust Series 0
Science & Technology Trust Series 1	Value Trust Series 1
Short-Term Bond Trust Series 0	All Asset Portfolio Series 0
Small Cap Growth Trust Series 0	All Asset Portfolio Series 1
Small Cap Index Trust Series 0	Brandes International Equity Trust
Small Cap Index Trust Series 1	Business Opportunity Value Trust
Small Cap Opportunities Trust Series 0	CSI Equity Trust
Small Cap Opportunities Trust Series 1	Frontier Capital Appreciation Trust
Small Cap Trust Series 0	Turner Core Growth Trust

4

of John Hancock Life Insurance Company (U.S.A.) as of December 31, 2007, and the related statements of operations and changes in contract owners’ equity for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Account’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights 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 of 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 made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2007, by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the sub-accounts of John Hancock Life Insurance Company (U.S.A.) Separate Account A at December 31, 2007, and the results of their operations and the changes in their contract owners’ equity for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

	/s/ Ernst & Young LLP
Toronto, Canada	Chartered Accountants
April 15, 2008	Licensed Public Accountants

5

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

Statements of Assets and Contract Owners’ Equity

December 31, 2007

Assets
Investments at fair value:
Sub-accounts invested in John Hancock Trust portfolios:
500 Index Trust B Series 0 - 3,521,770 shares (cost $56,497,255)	$	65,187,967
500 Index Trust Series 1 - 3,286,569 shares (cost $34,490,705)		41,542,238
Active Bond Trust Series 0 - 87,738 shares (cost $849,295)		824,734
Active Bond Trust Series 1 - 1,154,873 shares (cost $11,096,593)		10,855,803
All Cap Core Trust Series 0 - 18,027 shares (cost $364,626)		357,657
All Cap Core Trust Series 1 - 694,462 shares (cost $10,146,139)		13,771,188
All Cap Growth Trust Series 0 - 16,037 shares (cost $302,513)		320,583
All Cap Growth Trust Series 1 - 804,528 shares (cost $10,931,990)		16,066,423
All Cap Value Trust Series 0 - 93,295 shares (cost $1,039,193)		759,424
All Cap Value Trust Series 1 - 430,319 shares (cost $4,797,535)		3,511,406
American Blue Chip Income and Growth Trust Series 1 - 556,036 shares (cost $9,142,304)		8,273,820
American Bond Trust Series 1 - 300,246 shares (cost $3,994,562)		3,942,230
American Growth Trust Series 1 - 2,153,841 shares (cost $44,486,498)		46,630,648
American Growth-Income Trust Series 1 - 923,491 shares (cost $17,105,478)		18,035,767
American International Trust Series 1 - 1,328,091 shares (cost $31,641,583)		35,473,301
Blue Chip Growth Trust Series 0 - 130,040 shares (cost $2,703,736)		2,816,663
Blue Chip Growth Trust Series 1 - 1,968,919 shares (cost $30,371,777)		42,725,551
Capital Appreciation Trust Series 0 - 118,051 shares (cost $1,117,643)		1,187,598
Capital Appreciation Trust Series 1 - 2,281,775 shares (cost $20,420,289)		22,931,837
Classic Value Trust Series 0 - 135,994 shares (cost $2,107,880)		1,664,561
Classic Value Trust Series 1 - 755,796 shares (cost $11,220,750)		9,243,380
Core Bond Trust Series 0 - 5,881 shares (cost $74,450)		73,690
Core Bond Trust Series 1 - 8,207 shares (cost $104,157)		103,082
Core Equity Trust Series 0 - 28,715 shares (cost $422,692)		380,474
Core Equity Trust Series 1 - 114,305 shares (cost $1,678,507)		1,512,250
Dynamic Growth Trust Series 0 - 35,881 shares (cost $237,863)		237,176
Dynamic Growth Trust Series 1 - 938,668 shares (cost $5,034,085)		6,195,207
Emerging Growth Trust Series 0 - 55,620 shares (cost $620,982)		536,174
Emerging Growth Trust Series 1 - 105,453 shares (cost $1,147,587)		1,014,458
Emerging Markets Value Trust Series 0 - 28,427 shares (cost $416,535)		413,901
Emerging Markets Value Trust Series 1 - 72,739 shares (cost $1,106,807)		1,059,804
Emerging Small Company Trust Series 0 - 48,019 shares (cost $1,283,792)		1,178,859
Emerging Small Company Trust Series 1 - 1,955,525 shares (cost $56,201,552)		47,910,351
Equity-Income Trust Series 0 - 350,882 shares (cost $6,406,376)		5,764,993
Equity-Income Trust Series 1 - 3,521,091 shares (cost $54,412,898)		57,992,370
Financial Services Trust Series 0 - 55,118 shares (cost $972,667)		800,870
Financial Services Trust Series 1 - 219,301 shares (cost $3,858,268)		3,188,630
Fundamental Value Trust Series 0 - 174,427 shares (cost $2,867,984)		2,869,319
Fundamental Value Trust Series 1 - 941,430 shares (cost $13,580,195)		15,533,588
Global Allocation Trust Series 0 - 142,158 shares (cost $1,743,936)		1,589,323
Global Allocation Trust Series 1 - 535,815 shares (cost $6,164,695)		6,011,840
Global Bond Trust Series 0 - 149,341 shares (cost $2,216,765)		2,264,010
Global Bond Trust Series 1 - 556,341 shares (cost $8,316,659)		8,456,390

6

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

Statements of Assets and Contract Owners’ Equity

December 31, 2007

Assets (continued)
Investments at fair value:
Sub-accounts invested in John Hancock Trust portfolios:
Global Trust Series 0 - 97,451 shares (cost $1,894,070)	$	1,744,368
Global Trust Series 1 - 826,993 shares (cost $11,720,510)		14,819,721
Growth & Income Trust Series 0 - 293,314 shares (cost $3,984,306)		3,716,284
Health Sciences Trust Series 0 - 110,524 shares (cost $1,720,273)		1,671,128
Health Sciences Trust Series 1 - 539,883 shares (cost $8,574,814)		8,152,233
High Yield Trust Series 0 - 101,592 shares (cost $1,040,251)		961,063
High Yield Trust Series 1 - 1,268,869 shares (cost $12,963,320)		12,054,256
Income & Value Trust Series 0 - 50,582 shares (cost $613,364)		549,317
Income & Value Trust Series 1 - 2,943,731 shares (cost $30,786,501)		31,968,921
International Core Trust Series 0 - 190,493 shares (cost $2,922,892)		2,735,485
International Core Trust Series 1 - 1,985,887 shares (cost $23,940,038)		28,576,915
International Equity Index Trust A Series 1 - 448,110 shares (cost $8,409,872)		10,033,176
International Equity Index Trust B Series 0 - 260,555 shares (cost $5,535,687)		5,487,278
International Opportunities Trust Series 0 - 129,473 shares (cost $2,357,538)		2,286,484
International Opportunities Trust Series 1 - 378,330 shares (cost $7,170,201)		6,681,311
International Small Cap Trust Series 0 - 138,113 shares (cost $3,120,366)		2,586,848
International Small Cap Trust Series 1 - 744,509 shares (cost $16,874,136)		13,989,318
International Value Trust Series 0 - 242,904 shares (cost $4,456,918)		4,143,934
International Value Trust Series 1 - 2,265,306 shares (cost $37,546,339)		38,827,351
Investment Quality Bond Trust Series 0 - 79,298 shares (cost $909,138)		894,483
Investment Quality Bond Trust Series 1 - 1,751,784 shares (cost $20,824,248)		19,795,158
Large Cap Trust Series 0 - 66,822 shares (cost $1,052,087)		962,931
Large Cap Trust Series 1 - 1,515,134 shares (cost $24,167,045)		21,878,540
Large Cap Value Trust Series 0 - 196,125 shares (cost $4,644,178)		4,389,271
Large Cap Value Trust Series 1 - 515,572 shares (cost $11,646,573)		11,533,344
Lifestyle Aggressive Trust Series 0 - 2,514,253 shares (cost $27,658,805)		27,229,364
Lifestyle Aggressive Trust Series 1 - 2,346,093 shares (cost $26,113,153)		25,384,726
Lifestyle Balanced Trust Series 0 - 3,496,909 shares (cost $48,446,507)		47,697,845
Lifestyle Balanced Trust Series 1 - 5,630,369 shares (cost $73,007,498)		76,629,316
Lifestyle Conservative Trust Series 0 - 181,974 shares (cost $2,408,890)		2,371,123
Lifestyle Conservative Trust Series 1 - 594,412 shares (cost $7,819,637)		7,739,240
Lifestyle Growth Trust Series 0 - 8,386,090 shares (cost $117,035,692)		115,560,317
Lifestyle Growth Trust Series 1 - 8,126,050 shares (cost $103,725,257)		111,895,709
Lifestyle Moderate Trust Series 0 - 429,078 shares (cost $5,691,524)		5,582,305
Lifestyle Moderate Trust Series 1 - 1,102,290 shares (cost $14,295,237)		14,329,767
Managed Trust Series 0 - 130,001 shares (cost $1,738,760)		1,648,412
Mid Cap Index Trust Series 0 - 179,789 shares (cost $3,501,114)		3,130,123
Mid Cap Index Trust Series 1 - 732,714 shares (cost $12,963,773)		12,756,543
Mid Cap Intersection Trust Series 0 - 1,199 shares (cost $14,632)		13,958
Mid Cap Stock Trust Series 0 - 232,132 shares (cost $3,876,034)		3,721,080
Mid Cap Stock Trust Series 1 - 1,713,310 shares (cost $25,904,662)		27,378,695
Mid Cap Value Trust Series 0 - 213,555 shares (cost $3,412,010)		2,735,641
Mid Cap Value Trust Series 1 - 1,854,109 shares (cost $30,454,813)		23,788,217
Mid Value Trust Series 0 - 75,469 shares (cost $918,972)		804,502
Money Market Trust B Series 0 - 37,963,831 shares (cost $37,963,831)		37,963,831

7

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

Statements of Assets and Contract Owners’ Equity

December 31, 2007

Assets (continued)
Investments at fair value:
Sub-accounts invested in John Hancock Trust portfolios:
Money Market Trust Series 1 - 8,159,390 shares (cost $81,593,898)	$	81,593,898
Natural Resources Trust Series 0 - 162,237 shares (cost $5,252,972)		4,644,832
Natural Resources Trust Series 1 - 699,322 shares (cost $22,147,170)		20,147,455
Overseas Equity Trust Series 0 - 61,794 shares (cost $910,852)		859,551
Pacific Rim Trust Series 0 - 182,958 shares (cost $2,284,462)		1,924,722
Pacific Rim Trust Series 1 - 1,202,965 shares (cost $14,465,540)		12,583,017
Quantitative All Cap Trust Series 0 - 23,065 shares (cost $403,491)		355,207
Quantitative All Cap Trust Series 1 - 49,642 shares (cost $837,211)		761,997
Quantitative Mid Cap Trust Series 0 - 9,375 shares (cost $98,577)		80,716
Quantitative Mid Cap Trust Series 1 - 190,548 shares (cost $1,946,927)		1,633,000
Quantitative Value Trust Series 0 - 7,203 shares (cost $108,634)		91,988
Quantitative Value Trust Series 1 - 36,062 shares (cost $518,198)		460,514
Real Estate Securities Trust Series 0 - 302,553 shares (cost $5,740,176)		3,733,509
Real Estate Securities Trust Series 1 - 3,095,079 shares (cost $60,263,921)		38,378,974
Real Return Bond Trust Series 0 - 45,465 shares (cost $604,568)		610,144
Real Return Bond Trust Series 1 - 325,505 shares (cost $4,350,481)		4,407,333
Science & Technology Trust Series 0 - 100,388 shares (cost $1,345,339)		1,493,768
Science & Technology Trust Series 1 - 1,519,530 shares (cost $18,625,888)		22,565,014
Short-Term Bond Trust Series 0 - 31,393 shares (cost $311,216)		296,348
Small Cap Growth Trust Series 0 - 80,119 shares (cost $875,179)		828,429
Small Cap Index Trust Series 0 - 168,495 shares (cost $2,704,403)		2,392,630
Small Cap Index Trust Series 1 - 646,482 shares (cost $9,429,280)		9,173,582
Small Cap Opportunities Trust Series 0 - 21,842 shares (cost $512,315)		448,408
Small Cap Opportunities Trust Series 1 - 398,800 shares (cost $8,969,465)		8,235,210
Small Cap Trust Series 0 - 30,985 shares (cost $432,074)		360,047
Small Cap Trust Series 1 - 32,286 shares (cost $459,561)		374,839
Small Cap Value Trust Series 0 - 127,950 shares (cost $2,456,315)		2,068,955
Small Cap Value Trust Series 1 - 44,422 shares (cost $801,684)		719,629
Small Company Trust Series 0 - 271 shares (cost $3,714)		3,064
Small Company Trust Series 1 - 177,634 shares (cost $2,547,055)		2,001,938
Small Company Value Trust Series 0 - 193,847 shares (cost $4,026,963)		3,529,955
Small Company Value Trust Series 1 - 1,218,100 shares (cost $24,291,304)		22,218,148
Special Value Trust Series 0		—
Special Value Trust Series 1		—
Strategic Bond Trust Series 0 - 95,379 shares (cost $1,081,618)		1,037,727
Strategic Bond Trust Series 1 - 1,095,536 shares (cost $12,604,197)		11,952,294
Strategic Income Trust Series 0 - 90,242 shares (cost $1,225,722)		1,237,215
Strategic Income Trust Series 1 - 90,966 shares (cost $1,229,801)		1,248,960
Strategic Opportunities Trust Series 0		—
Strategic Opportunities Trust Series 1		—
Total Bond Market Trust B Series 0 - 233,968 shares (cost $2,325,191)		2,299,903
Total Return Trust Series 0 - 299,643 shares (cost $4,128,342)		4,159,047
Total Return Trust Series 1 - 1,668,903 shares (cost $23,182,787)		23,214,442
Total Stock Market Index Trust Series 0 - 109,853 shares (cost $1,465,064)		1,425,887
Total Stock Market Index Trust Series 1 - 606,635 shares (cost $6,630,777)		7,874,116

8

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

Statements of Assets and Contract Owners’ Equity

December 31, 2007

Assets (continued)
Investments at fair value:
Sub-accounts invested in John Hancock Trust portfolios:
U.S. Core Trust Series 0 - 24,682 shares (cost $530,594)	$	479,315
U.S. Core Trust Series 1 - 1,926,186 shares (cost $41,694,470)		37,387,276
U.S. Global Leaders Growth Trust Series 0 - 19,368 shares (cost $259,664)		260,696
U.S. Global Leaders Growth Trust Series 1 - 146,971 shares (cost $1,856,155)		1,976,766
U.S. Government Securities Trust Series 0 - 34,804 shares (cost $458,968)		445,142
U.S. Government Securities Trust Series 1 - 1,050,789 shares (cost $14,201,657)		13,481,617
U.S. High Yield Bond Trust Series 0 - 31,324 shares (cost $412,429)		391,865
U.S. High Yield Bond Trust Series 1 - 48,478 shares (cost $642,981)		605,496
U.S. Large Cap Trust Series 0 - 99,153 shares (cost $1,647,168)		1,582,484
U.S. Large Cap Trust Series 1 - 2,940,193 shares (cost $38,930,785)		47,013,690
Utilities Trust Series 0 - 130,550 shares (cost $1,991,103)		1,869,476
Utilities Trust Series 1 - 625,705 shares (cost $9,570,430)		8,972,614
Value Trust Series 0 - 107,242 shares (cost $2,224,952)		1,860,649
Value Trust Series 1 - 1,262,448 shares (cost $23,470,566)		21,916,100
Sub-accounts invested in Outside Trust portfolios:
All Asset Portfolio Series 0 - 9,500 shares (cost $112,919)	$	111,631
All Asset Portfolio Series 1 - 115,734 shares (cost $1,374,521)		1,359,873
Brandes International Equity Trust - 73,424 shares (cost $1,435,795)		1,354,678
Business Opportunity Value Trust - 61,710 shares (cost $777,817)		747,303
CSI Equity Trust - 110,115 shares (cost $1,800,425)		1,727,702
Frontier Capital Appreciation Trust - 21,071 shares (cost $537,983)		521,298
Turner Core Growth Trust - 40,487 shares (cost $786,500)		790,298
Total assets	$	1,758,291,751
Contract Owners’ Equity
Variable universal life insurance contracts	$	1,758,291,751

See accompanying notes.

9

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

Statements of Operations and Changes in Contract Owners’ Equity

	Sub-Account
	500 Index Trust B Series 0						500 Index Trust Series 1
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	1,793,239		$	603,292		$	962,338		$	379,652
Net investment income (loss)		1,793,239			603,292			962,338			379,652
Realized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Net realized gain (loss)		1,768,898			1,289,484			2,202,852			3,850,373
Realized gains (losses)		1,768,898			1,289,484			2,202,852			3,850,373
Unrealized appreciation (depreciation) during the period		(851,884	)		5,704,407			(1,138,283	)		1,484,651
Net increase (decrease) in assets from operations		2,710,253			7,597,183			2,026,907			5,714,676
Changes from principal transactions:
Transfer of net premiums		4,424,020			3,554,662			4,198,278			4,139,296
Transfer on terminations		(7,311,555	)		(12,533,242	)		(5,302,375	)		(4,906,651	)
Transfer on policy loans		(198,858	)		(117,497	)		(56,190	)		(287,332	)
Net interfund transfers		10,810,069			1,883,186			(1,480,772	)		(4,981,006	)
Net increase (decrease) in assets from principal transactions		7,723,676			(7,212,891	)		(2,641,059	)		(6,035,693	)
Total increase (decrease) in assets		10,433,929			384,292			(614,152	)		(321,017	)
Assets, beginning of period		54,754,038			54,369,746			42,156,390			42,477,407
Assets, end of period	$	65,187,967		$	54,754,038		$	41,542,238		$	42,156,390

(a) Fund available in prior year but no activity.

See accompanying notes.

10

Sub-Account
Active Bond Trust Series 0						Active Bond Trust Series 1						All Asset Portfolio Series 0
Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	47,954		$	335		$	961,470		$	301,914		$	6,663		$	1,106
	47,954			335			961,470			301,914			6,663			1,106
	—			—			—			—			—			74
	(79	)		158			14,618			(901	)		336			(6	)
	(79	)		158			14,618			(901	)		336			68
	(28,612	)		4,051			(551,769	)		163,350			(1,379	)		106
	19,263			4,544			424,319			464,363			5,620			1,280
	155,491			41,775			625,709			881,869			27,918			5,869
	(46,514	)		(11,546	)		(883,288	)		(1,332,163	)		(10,577	)		(2,749	)
	(36	)		(3,082	)		(4,838	)		(10,765	)		—			—
	516,960			147,879			(296,985	)		(525,709	)		58,177			24,673
	625,901			175,026			(559,402	)		(986,768	)		75,518			27,793
	645,164			179,570			(135,083	)		(522,405	)		81,138			29,073
	179,570			—			10,990,886			11,513,291			30,493			1,420
$	824,734		$	179,570		$	10,855,803		$	10,990,886		$	111,631		$	30,493

11

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	All Asset Portfolio Series 1						All Cap Core Trust Series 0
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)
Income:
Dividend income distribution	$	91,599		$	52,790		$	4,224		$	23
Net investment income (loss)		91,599			52,790			4,224			23
Realized gains (losses) on investments:
Capital gain distributions		—			3,048			—			—
Net realized gain (loss)		1,262			4,504			4,902			(190	)
Realized gains (losses)		1,262			7,552			4,902			(190	)
Unrealized appreciation (depreciation) during the period		2,904			(18,890	)		(8,955	)		1,986
Net increase (decrease) in assets from operations		95,765			41,452			171			1,819
Changes from principal transactions:
Transfer of net premiums		118,484			117,181			93,900			9,800
Transfer on terminations		(76,909	)		(76,331	)		(48,086	)		(2,723	)
Transfer on policy loans		—			—			—			—
Net interfund transfers		(7,930	)		289,925			157,240			145,536
Net increase (decrease) in assets from principal transactions		33,645			330,775			203,054			152,613
Total increase (decrease) in assets		129,410			372,227			203,225			154,432
Assets, beginning of period		1,230,463			858,236			154,432			—
Assets, end of period	$	1,359,873		$	1,230,463		$	357,657		$	154,432

(a) Fund available in prior year but no activity.

See accompanying notes.

12

Sub-Account
All Cap Core Trust Series 1						All Cap Growth Trust Series 0						All Cap Growth Trust Series 1
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	211,478		$	103,137		$	438			—		$	7,519			—
	211,478			103,137			438			—			7,519			—
	—			—			—			—			—			—
	1,372,992			1,105,188			24,153			(536	)		782,199			104,627
	1,372,992			1,105,188			24,153			(536	)		782,199			104,627
	(1,140,526	)		929,941			9,209			8,862			1,076,691			934,777
	443,944			2,138,266			33,800			8,326			1,866,409			1,039,404
	960,553			1,175,857			77,812			16,265			1,006,496			1,221,725
	(2,207,032	)		(1,689,117	)		(21,010	)		(8,791	)		(1,697,564	)		(1,701,598	)
	(10,782	)		(100,742	)		(958	)		—			(180,840	)		112,777
	(911,853	)		(1,084,525	)		41,039			174,100			(1,377,956	)		(537,874	)
	(2,169,114	)		(1,698,527	)		96,883			181,574			(2,249,864	)		(904,970	)
	(1,725,170	)		439,739			130,683			189,900			(383,455	)		134,434
	15,496,358			15,056,619			189,900			—			16,449,878			16,315,444
$	13,771,188		$	15,496,358		$	320,583		$	189,900		$	16,066,423		$	16,449,878

13

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	All Cap Value Trust Series 0						All Cap Value Trust Series 1
	Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	10,688		$	5		$	62,471		$	28,752
Net investment income (loss)		10,688			5			62,471			28,752
Realized gains (losses) on investments:
Capital gain distributions		287,737			101			1,464,985			640,858
Net realized gain (loss)		7,078			1,244			15,235			4,828
Realized gains (losses)		294,815			1,345			1,480,220			645,686
Unrealized appreciation (depreciation) during the period		(287,442	)		7,673			(1,257,041	)		(267,584	)
Net increase (decrease) in assets from operations		18,061			9,023			285,650			406,854
Changes from principal transactions:
Transfer of net premiums		255,118			20,488			270,749			285,175
Transfer on terminations		(118,714	)		(35,091	)		(292,219	)		(277,021	)
Transfer on policy loans		(7	)		(1,563	)		(8,743	)		(574	)
Net interfund transfers		434,401			177,708			(255,886	)		161,701
Net increase (decrease) in assets from principal transactions		570,798			161,542			(286,099	)		169,281
Total increase (decrease) in assets		588,859			170,565			(449	)		576,135
Assets, beginning of period		170,565			—			3,511,855			2,935,720
Assets, end of period	$	759,424		$	170,565		$	3,511,406		$	3,511,855

(a) Fund available in prior year but no activity.

See accompanying notes.

14

Sub-Account
American Blue Chip Income and Growth Trust Series 1						American Bond Trust Series 1						American Growth Trust Series 1
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	201,392		$	25,885		$	123,107			—		$	485,037		$	76,269
	201,392			25,885			123,107			—			485,037			76,269
	1,438,527			79,671			949			—			4,396,109			162,016
	200,112			41,053			70,021			1,913			1,907,506			405,375
	1,638,639			120,724			70,970			1,913			6,303,615			567,391
	(1,750,554	)		685,440			(96,562	)		43,871			(2,651,719	)		1,896,767
	89,477			832,049			97,515			45,784			4,136,933			2,540,427
	717,910			534,365			460,056			88,317			4,469,392			3,251,402
	(826,655	)		(307,327	)		(181,122	)		(30,332	)		(3,484,887	)		(1,735,263	)
	(70,612	)		(19,186	)		(16,042	)		—			(163,756	)		(71,997	)
	1,614,513			1,657,920			2,457,938			969,803			8,533,674			8,552,872
	1,435,156			1,865,772			2,720,830			1,027,788			9,354,423			9,997,014
	1,524,633			2,697,821			2,818,345			1,073,572			13,491,356			12,537,441
	6,749,187			4,051,366			1,123,885			50,313			33,139,292			20,601,851
$	8,273,820		$	6,749,187		$	3,942,230		$	1,123,885		$	46,630,648		$	33,139,292

15

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	American Growth-Income Trust Series 1						American International Trust Series 1
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	437,534		$	105,368		$	685,146		$	163,622
Net investment income (loss)		437,534			105,368			685,146			163,622
Realized gains (losses) on investments:
Capital gain distributions		767,689			11,270			2,652,993			187,867
Net realized gain (loss)		323,544			140,329			1,993,458			1,130,217
Realized gains (losses)		1,091,233			151,599			4,646,451			1,318,084
Unrealized appreciation (depreciation) during the period		(1,012,239	)		1,169,540			(342,069	)		1,752,926
Net increase (decrease) in assets from operations		516,528			1,426,507			4,989,528			3,234,632
Changes from principal transactions:
Transfer of net premiums		1,964,843			1,379,596			4,181,384			2,189,227
Transfer on terminations		(1,249,156	)		(745,682	)		(2,653,550	)		(1,716,751	)
Transfer on policy loans		(67,616	)		1,634			(164,755	)		(125,369	)
Net interfund transfers		4,464,728			1,796,231			6,151,446			4,277,660
Net increase (decrease) in assets from principal transactions		5,112,799			2,431,779			7,514,525			4,624,767
Total increase (decrease) in assets		5,629,327			3,858,286			12,504,053			7,859,399
Assets, beginning of period		12,406,440			8,548,154			22,969,248			15,109,849
Assets, end of period	$	18,035,767		$	12,406,440		$	35,473,301		$	22,969,248

(a) Fund available in prior year but no activity.

See accompanying notes.

16

Sub-Account
Blue Chip Growth Trust Series 0						Blue Chip Growth Trust Series 1						Brandes International Equity Trust
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)
$	12,018		$	52		$	294,864		$	77,469		$	11,372		$	185
	12,018			52			294,864			77,469			11,372			185
	—			—			—			—			69,505			781
	67,415			1,934			1,205,255			(171,540	)		2,817			138
	67,415			1,934			1,205,255			(171,540	)		72,322			919
	83,918			29,035			3,408,325			3,576,791			(81,202	)		84
	163,351			31,021			4,908,444			3,482,720			2,492			1,188
	376,042			187,279			3,246,084			2,918,096			97,771			4,790
	(111,818	)		(22,952	)		(3,842,220	)		(4,759,106	)		(37,878	)		(1,758	)
	(154	)		(12,253	)		(58,731	)		(129,783	)		(6	)		—
	1,921,554			282,999			265,650			(2,548,605	)		1,277,213			10,866
	2,185,624			435,073			(389,217	)		(4,519,398	)		1,337,100			13,898
	2,348,975			466,094			4,519,227			(1,036,678	)		1,339,592			15,086
	467,688			1,594			38,206,324			39,243,002			15,086			—
$	2,816,663		$	467,688		$	42,725,551		$	38,206,324		$	1,354,678		$	15,086

17

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Business Opportunity Value Trust						Capital Appreciation Trust Series 0
	Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	2,270		$	100		$	3,877			—
Net investment income (loss)		2,270			100			3,877			—
Realized gains (losses) on investments:
Capital gain distributions		24,291			647			3,114			19,227
Net realized gain (loss)		2,978			183			26,677			(14,141	)
Realized gains (losses)		27,269			830			29,791			5,086
Unrealized appreciation (depreciation) during the period		(30,941	)		427			62,651			7,315
Net increase (decrease) in assets from operations		(1,402	)		1,357			96,319			12,401
Changes from principal transactions:
Transfer of net premiums		88,526			6,268			407,193			199,197
Transfer on terminations		(28,141	)		(2,945	)		(101,502	)		(42,399	)
Transfer on policy loans		—			—			(1,368	)		(4,750	)
Net interfund transfers		666,478			17,162			237,088			384,779
Net increase (decrease) in assets from principal transactions		726,863			20,485			541,411			536,827
Total increase (decrease) in assets		725,461			21,842			637,730			549,228
Assets, beginning of period		21,842			—			549,868			640
Assets, end of period	$	747,303		$	21,842		$	1,187,598		$	549,868

(a) Fund available in prior year but no activity.

See accompanying notes.

18

Sub-Account
Capital Appreciation Trust Series 1						Classic Value Trust Series 0						Classic Value Trust Series 1
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	65,697			—		$	31,581		$	4,404		$	171,983		$	94,742
	65,697			—			31,581			4,404			171,983			94,742
	93,491			564,724			173,659			7,712			1,141,257			195,315
	4,371			28,515			5,062			405			49,942			290,916
	97,862			593,239			178,721			8,117			1,191,199			486,231
	2,274,454			(257,978	)		(456,592	)		13,358			(2,704,536	)		853,836
	2,438,013			335,261			(246,290	)		25,879			(1,341,354	)		1,434,809
	1,699,841			1,549,691			309,235			193,261			602,005			929,869
	(1,892,884	)		(1,924,664	)		(85,151	)		(20,379	)		(364,750	)		(301,457	)
	(111,092	)		7,875			(270	)		—			—			—
	(975,588	)		16,487,602			1,224,528			262,001			(76,629	)		2,764,283
	(1,279,723	)		16,120,504			1,448,342			434,883			160,626			3,392,695
	1,158,290			16,455,765			1,202,052			460,762			(1,180,728	)		4,827,504
	21,773,547			5,317,782			462,509			1,747			10,424,108			5,596,604
$	22,931,837		$	21,773,547		$	1,664,561		$	462,509		$	9,243,380		$	10,424,108

19

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Core Bond Trust Series 0						Core Bond Trust Series 1
	Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	4,075		$	149		$	8,371		$	2,606
Net investment income (loss)		4,075			149			8,371			2,606
Realized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Net realized gain (loss)		169			(44	)		1,460			61
Realized gains (losses)		169			(44	)		1,460			61
Unrealized appreciation (depreciation) during the period		(936	)		175			(1,814	)		656
Net increase (decrease) in assets from operations		3,308			280			8,017			3,323
Changes from principal transactions:
Transfer of net premiums		25,717			1,323			25,713			9,765
Transfer on terminations		(5,996	)		(2,076	)		(5,560	)		(3,975	)
Transfer on policy loans		—			—			—			—
Net interfund transfers		33,686			17,448			(11,555	)		60,407
Net increase (decrease) in assets from principal transactions		53,407			16,695			8,598			66,197
Total increase (decrease) in assets		56,715			16,975			16,615			69,520
Assets, beginning of period		16,975			—			86,467			16,947
Assets, end of period	$	73,690		$	16,975		$	103,082		$	86,467

(a) Fund available in prior year but no activity.

See accompanying notes.

20

Sub-Account
Core Equity Trust Series 0						Core Equity Trust Series 1						CSI Equity Trust
Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)
$	122			—			—			—		$	15,766		$	3,208
	122			—			—			—			15,766			3,208
	17,534			11			101,790			70,187			152,508			2,194
	2,928			73			10,487			10,258			7,858			494
	20,462			84			112,277			80,445			160,366			2,688
	(50,153	)		7,934			(222,980	)		(3,498	)		(106,763	)		34,040
	(29,569	)		8,018			(110,703	)		76,947			69,369			39,936
	150,840			6,409			257,348			227,884			537,602			147,343
	(26,277	)		(3,186	)		(98,065	)		(79,055	)		(74,849	)		(16,536	)
	—			—			(30	)		(2,278	)		—			—
	199,663			74,576			214,364			106,704			759,062			265,775
	324,226			77,799			373,617			253,255			1,221,815			396,582
	294,657			85,817			262,914			330,202			1,291,184			436,518
	85,817			—			1,249,336			919,134			436,518			—
$	380,474		$	85,817		$	1,512,250		$	1,249,336		$	1,727,702		$	436,518

21

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Dynamic Growth Trust Series 0						Dynamic Growth Trust Series 1
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution		—			—			—			—
Net investment income (loss)		—			—			—			—
Realized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Net realized gain (loss)		7,219			(34	)		377,200			1,390,636
Realized gains (losses)		7,219			(34	)		377,200			1,390,636
Unrealized appreciation (depreciation) during the period		(3,450	)		2,763			163,101			(770,806	)
Net increase (decrease) in assets from operations		3,769			2,729			540,301			619,830
Changes from principal transactions:
Transfer of net premiums		45,392			25,416			363,282			508,193
Transfer on terminations		(21,588	)		(4,706	)		(451,172	)		(522,523	)
Transfer on policy loans		—			—			(4,782	)		4,768
Net interfund transfers		152,405			33,740			254,107			(2,704,081	)
Net increase (decrease) in assets from principal transactions		176,209			54,450			161,435			(2,713,643	)
Total increase (decrease) in assets		179,978			57,179			701,736			(2,093,813	)
Assets, beginning of period		57,198			19			5,493,471			7,587,284
Assets, end of period	$	237,176		$	57,198		$	6,195,207		$	5,493,471

(a) Fund available in prior year but no activity.

(h) Reflects the period of commencement of operations on April 30, 2007 through December 31, 2007.

See accompanying notes.

22

Sub-Account
Emerging Growth Trust Series 0						Emerging Growth Trust Series 1						Emerging Markets Value Trust Series 0
Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07 (h)
$	802			—		$	1,166			—		$	2,063
	802			—			1,166			—			2,063
	95,928			852			337,588			495,420			6,748
	(8,063	)		(838	)		(282,845	)		(164,321	)		4,689
	87,865			14			54,743			331,099			11,437
	(86,407	)		1,600			(16,590	)		(191,033	)		(2,634	)
	2,260			1,614			39,319			140,066			10,866
	126,310			34,216			114,584			138,579			44,669
	(27,561	)		(5,139	)		(115,404	)		(316,156	)		(1,608	)
	(2,960	)		—			(22,637	)		—			—
	286,070			121,364			(289,227	)		(41,834	)		359,974
	381,859			150,441			(312,684	)		(219,411	)		403,035
	384,119			152,055			(273,365	)		(79,345	)		413,901
	152,055			—			1,287,823			1,367,168			—
$	536,174		$	152,055		$	1,014,458		$	1,287,823		$	413,901

23

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Emerging Markets Value Trust Series 1			Emerging Small Company Trust Series 0
	Year Ended Dec. 31/07 (h)			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	9,221			—			—
Net investment income (loss)		9,221			—			—
Realized gains (losses) on investments:
Capital gain distributions		31,309			131,063			948
Net realized gain (loss)		139,949			(3,833	)		(4,796	)
Realized gains (losses)		171,258			127,230			(3,848	)
Unrealized appreciation (depreciation) during the period		(47,002	)		(118,000	)		13,104
Net increase (decrease) in assets from operations		133,477			9,230			9,256
Changes from principal transactions:
Transfer of net premiums		39,112			201,446			44,750
Transfer on terminations		45,411			(43,540	)		(12,220	)
Transfer on policy loans		—			(4,134	)		(9,681	)
Net interfund transfers		841,804			690,642			291,066
Net increase (decrease) in assets from principal transactions		926,327			844,414			313,915
Total increase (decrease) in assets		1,059,804			853,644			323,171
Assets, beginning of period		—			325,215			2,044
Assets, end of period	$	1,059,804		$	1,178,859		$	325,215

(h) Reflects the period of commencement of operations on April 30, 2007 through December 31, 2007.

See accompanying notes.

24

Sub-Account
Emerging Small Company Trust Series 1						Equity-Income Trust Series 0						Equity-Income Trust Series 1
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
	—			—		$	125,665		$	3,317		$	1,722,512		$	831,303
	—			—			125,665			3,317			1,722,512			831,303
	11,789,406			2,793,605			496,991			13,196			6,731,413			3,420,441
	1,130,848			1,336,013			82,371			(1,643	)		1,314,356			1,067,562
	12,920,254			4,129,618			579,362			11,553			8,045,769			4,488,003
	(8,900,908	)		(2,790,626	)		(725,092	)		83,725			(7,808,973	)		4,361,714
	4,019,346			1,338,992			(20,065	)		98,595			1,959,308			9,681,020
	2,846,231			3,306,553			1,076,356			189,829			2,948,264			3,826,199
	(6,676,606	)		(6,728,372	)		(308,899	)		(38,425	)		(5,812,838	)		(5,816,576	)
	(292,213	)		(71,857	)		(11,141	)		(7,574	)		(161,717	)		(282,833	)
	(1,913,505	)		(1,739,357	)		3,731,310			1,018,894			51,641			(1,173,854	)
	(6,036,093	)		(5,233,033	)		4,487,626			1,162,724			(2,974,650	)		(3,447,064	)
	(2,016,747	)		(3,894,041	)		4,467,561			1,261,319			(1,015,342	)		6,233,956
	49,927,098			53,821,139			1,297,432			36,113			59,007,712			52,773,756
$	47,910,351		$	49,927,098		$	5,764,993		$	1,297,432		$	57,992,370		$	59,007,712

25

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Financial Services Trust Series 0						Financial Services Trust Series 1
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	9,065		$	6		$	43,022		$	9,681
Net investment income (loss)		9,065			6			43,022			9,681
Realized gains (losses) on investments:
Capital gain distributions		116,733			—			491,645			53
Net realized gain (loss)		20,061			1,307			410,599			639,507
Realized gains (losses)		136,794			1,307			902,244			639,560
Unrealized appreciation (depreciation) during the period		(201,896	)		30,098			(1,239,534	)		150,764
Net increase (decrease) in assets from operations		(56,037	)		31,411			(294,268	)		800,005
Changes from principal transactions:
Transfer of net premiums		275,165			30,841			371,582			474,351
Transfer on terminations		(42,777	)		(6,906	)		(593,269	)		(347,077	)
Transfer on policy loans		(4,972	)		—			(12,090	)		(23,970	)
Net interfund transfers		342,566			231,194			(1,236,835	)		1,160,796
Net increase (decrease) in assets from principal transactions		569,982			255,129			(1,470,612	)		1,264,100
Total increase (decrease) in assets		513,945			286,540			(1,764,880	)		2,064,105
Assets, beginning of period		286,925			385			4,953,510			2,889,405
Assets, end of period	$	800,870		$	286,925		$	3,188,630		$	4,953,510

(a) Fund available in prior year but no activity.

See accompanying notes.

26

Sub-Account
Frontier Capital Appreciation Trust						Fundamental Value Trust Series 0						Fundamental Value Trust Series 1
Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
	—			—		$	40,272		$	352		$	254,539		$	106,909
	—			—			40,272			352			254,539			106,909
	29,760			862			85,541			1,348			640,185			444,899
	2,511			36			42,158			5,116			370,072			601,160
	32,271			898			127,699			6,464			1,010,257			1,046,059
	(16,153	)		(532	)		(122,515	)		123,860			(642,351	)		725,236
	16,118			366			45,456			130,676			622,445			1,878,204
	67,390			3,278			482,052			51,196			1,172,295			1,114,499
	(18,582	)		(864	)		(190,360	)		(61,490	)		(1,160,032	)		(1,215,764	)
	—			—			—			—			(54,292	)		(17,773	)
	446,250			7,342			1,069,449			1,340,783			(41,098	)		41,252
	495,058			9,756			1,361,141			1,330,489			(83,127	)		(77,786	)
	511,176			10,122			1,406,597			1,461,165			539,318			1,800,418
	10,122			—			1,462,722			1,557			14,994,270			13,193,852
$	521,298		$	10,122		$	2,869,319		$	1,462,722		$	15,533,588		$	14,994,270

27

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Global Allocation Trust Series 0						Global Allocation Trust Series 1
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	84,803		$	115		$	386,461		$	44,435
Net investment income (loss)		84,803			115			386,461			44,435
Realized gains (losses) on investments:
Capital gain distributions		114,686			—			602,201			—
Net realized gain (loss)		(215	)		234			50,951			119,281
Realized gains (losses)		114,471			234			653,152			119,281
Unrealized appreciation (depreciation) during the period		(161,836	)		7,219			(775,095	)		352,483
Net increase (decrease) in assets from operations		37,438			7,568			264,518			516,199
Changes from principal transactions:
Transfer of net premiums		98,196			38,710			476,837			554,855
Transfer on terminations		(65,442	)		(8,006	)		(166,213	)		(440,918	)
Transfer on policy loans		—			—			(2,723	)		(1,367	)
Net interfund transfers		1,397,460			82,628			198,650			2,756,792
Net increase (decrease) in assets from principal transactions		1,430,214			113,332			506,551			2,869,362
Total increase (decrease) in assets		1,467,652			120,900			771,069			3,385,561
Assets, beginning of period		121,671			771			5,240,771			1,855,210
Assets, end of period	$	1,589,323		$	121,671		$	6,011,840		$	5,240,771

See accompanying notes.

28

Sub-Account
Global Bond Trust Series 0						Global Bond Trust Series 1						Global Trust Series 0
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	116,183			—		$	534,781			—		$	18,387		$	254
	116,183			—			534,781			—			18,387			254
	—			115			—			79,801			90,659			—
	4,957			604			1,834			(22,725	)		8,145			1,198
	4,957			719			1,834			57,076			98,804			1,198
	44,019			3,194			114,085			251,709			(166,756	)		17,089
	165,159			3,913			650,700			308,785			(49,565	)		18,541
	429,114			53,697			554,666			689,580			422,288			31,396
	(107,028	)		(13,204	)		(658,757	)		(776,492	)		119,846			(10,218	)
	(2,788	)		—			(55,974	)		3,685			(3,452	)		(220	)
	1,431,758			301,668			1,898,375			(406,487	)		1,022,249			187,636
	1,751,056			342,161			1,738,310			(489,714	)		1,560,931			208,594
	1,916,215			346,074			2,389,010			(180,929	)		1,511,366			227,135
	347,795			1,721			6,067,380			6,248,309			233,002			5,867
$	2,264,010		$	347,795		$	8,456,390		$	6,067,380		$	1,744,368		$	233,002

29

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Global Trust Series 1						Growth & Income Trust Series 0
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06 (e)
Income:
Dividend income distribution	$	353,471		$	180,582		$	48,976		$	530
Net investment income (loss)		353,471			180,582			48,976			530
Realized gains (losses) on investments:
Capital gain distributions		835,309			—			256,191			5,592
Net realized gain (loss)		829,026			735,475			36,947			5,733
Realized gains (losses)		1,664,335			735,475			293,138			11,325
Unrealized appreciation (depreciation) during the period		(1,813,863	)		1,704,588			(320,619	)		52,641
Net increase (decrease) in assets from operations		203,943			2,620,645			21,495			64,496
Changes from principal transactions:
Transfer of net premiums		678,780			793,862			645,075			190,882
Transfer on terminations		(1,246,315	)		(1,250,644	)		(259,612	)		(36,501	)
Transfer on policy loans		(33,196	)		(10,853	)		(21,897	)		(10,134	)
Net interfund transfers		(309,074	)		634,153			2,215,045			869,737
Net increase (decrease) in assets from principal transactions		(909,805	)		166,518			2,578,611			1,013,984
Total increase (decrease) in assets		(705,862	)		2,787,163			2,600,106			1,078,480
Assets, beginning of period		15,525,583			12,738,420			1,116,178			37,698
Assets, end of period	$	14,819,721		$	15,525,583		$	3,716,284		$	1,116,178

(e) Fund renamed on May 1, 2006. Previously known as Growth & Income Trust II.

See accompanying notes.

30

Sub-Account
Health Sciences Trust Series 0						Health Sciences Trust Series 1						High Yield Trust Series 0
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
	—			—			—			—		$	89,864		$	352
	—			—			—			—			89,864			352
	225,244			2,610			1,322,229			531,956			—			—
	24,747			(916	)		132,164			556,241			(2,570	)		(169	)
	249,991			1,694			1,454,393			1,088,197			(2,570	)		(169	)
	(84,314	)		35,148			(515,362	)		(607,234	)		(89,231	)		10,022
	165,677			36,842			939,031			480,963			(1,937	)		10,205
	354,521			87,302			419,570			600,699			249,019			38,587
	(91,115	)		(22,935	)		(597,024	)		(644,801	)		(73,447	)		(10,604	)
	(7,188	)		(1,496	)		(12,045	)		(25,008	)		(1,998	)		(909	)
	610,946			538,318			1,558,253			(1,793,911	)		567,918			181,532
	867,164			601,189			1,368,754			(1,863,021	)		741,492			208,606
	1,032,841			638,031			2,307,785			(1,382,058	)		739,555			218,811
	638,287			256			5,844,448			7,226,506			221,508			2,697
$	1,671,128		$	638,287		$	8,152,233		$	5,844,448		$	961,063		$	221,508

31

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	High Yield Trust Series 1						Income & Value Trust Series 0
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	1,679,840		$	1,087,997		$	12,155		$	12
Net investment income (loss)		1,679,840			1,087,997			12,155			12
Realized gains (losses) on investments:
Capital gain distributions		—			—			37,951			—
Net realized gain (loss)		152,766			117,033			621			25
Realized gains (losses)		152,766			117,033			38,572			25
Unrealized appreciation (depreciation) during the period		(1,605,107	)		330,524			(64,835	)		795
Net increase (decrease) in assets from operations		227,499			1,535,554			(14,108	)		832
Changes from principal transactions:
Transfer of net premiums		884,871			1,081,136			75,501			2,753
Transfer on terminations		(1,383,069	)		(1,609,754	)		(26,250	)		(2,028	)
Transfer on policy loans		(8,461	)		(68,349	)		—			—
Net interfund transfers		(3,647,767	)		(857,929	)		481,462			30,511
Net increase (decrease) in assets from principal transactions		(4,154,426	)		(1,454,896	)		530,713			31,236
Total increase (decrease) in assets		(3,926,927	)		80,658			516,605			32,068
Assets, beginning of period		15,981,183			15,900,525			32,712			644
Assets, end of period	$	12,054,256		$	15,981,183		$	549,317		$	32,712

(f) Fund renamed on May 1, 2006. Previously known as International Stock Trust.

See accompanying notes.

32

Sub-Account
Income & Value Trust Series 1						International Core Trust Series 0						International Core Trust Series 1
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06 (f)			Year Ended Dec. 31/07			Year Ended Dec. 31/06 (f)
$	1,372,479		$	704,508		$	48,270		$	1,110		$	642,297		$	158,017
	1,372,479			704,508			48,270			1,110			642,297			158,017
	2,359,520			—			286,706			8,445			3,776,141			1,201,970
	836,265			551,833			42,731			(986	)		2,779,577			2,545,690
	3,195,785			551,833			329,437			7,459			6,555,718			3,747,660
	(4,095,384	)		1,682,834			(229,966	)		42,516			(4,023,761	)		1,848,630
	472,880			2,939,175			147,741			51,085			3,174,254			5,754,307
	2,427,444			2,711,114			408,238			215,085			1,554,153			1,812,205
	(4,743,428	)		(4,327,101	)		(140,348	)		(20,894	)		(3,206,079	)		(3,400,943	)
	(261,625	)		(145,388	)		(5,530	)		(6,307	)		(46,576	)		(71,665	)
	(1,670,229	)		(799,184	)		1,665,772			418,896			(809,638	)		(1,719,453	)
	(4,247,838	)		(2,560,559	)		1,928,132			606,780			(2,508,140	)		(3,379,856	)
	(3,774,958	)		378,616			2,075,873			657,865			666,114			2,374,451
	35,743,879			35,365,263			659,612			1,747			27,910,801			25,536,350
$	31,968,921		$	35,743,879		$	2,735,485		$	659,612		$	28,576,915		$	27,910,801

33

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	International Equity Index Trust A Series 1						International Equity Index Trust B Series 0
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	369,805		$	46,558		$	153,706		$	416
Net investment income (loss)		369,805			46,558			153,706			416
Realized gains (losses) on investments:
Capital gain distributions		449,357			47,159			215,570			408
Net realized gain (loss)		424,967			432,213			52,496			1,498
Realized gains (losses)		874,324			479,372			268,066			1,906
Unrealized appreciation (depreciation) during the period		86,366			867,805			(122,460	)		73,993
Net increase (decrease) in assets from operations		1,330,495			1,393,735			299,312			76,315
Changes from principal transactions:
Transfer of net premiums		755,925			837,600			901,391			146,334
Transfer on terminations		(530,812	)		(508,101	)		(158,276	)		(24,551	)
Transfer on policy loans		(16,360	)		(28,105	)		(21,960	)		(3,022	)
Net interfund transfers		804,787			1,117,293			3,736,787			533,144
Net increase (decrease) in assets from principal transactions		1,013,540			1,418,687			4,457,942			651,905
Total increase (decrease) in assets		2,344,035			2,812,422			4,757,254			728,220
Assets, beginning of period		7,689,141			4,876,719			730,024			1,804
Assets, end of period	$	10,033,176		$	7,689,141		$	5,487,278		$	730,024

See accompanying notes.

34

Sub-Account
International Opportunities Trust Series 0						International Opportunities Trust Series 1						International Small Cap Trust Series 0
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	23,943		$	34		$	72,270		$	13,211		$	53,876		$	288
	23,943			34			72,270			13,211			53,876			288
	264,721			279			846,471			118,028			464,256			—
	20,356			(497	)		412,717			26,778			9,903			3,641
	285,077			(218	)		1,259,188			144,806			474,159			3,641
	(99,657	)		28,604			(831,861	)		324,760			(557,890	)		24,280
	209,363			28,420			499,597			482,777			(29,855	)		28,209
	498,874			47,418			210,359			217,415			473,498			79,429
	(110,505	)		(20,875	)		(171,646	)		(72,082	)		(132,075	)		(11,019	)
	(743	)		—			(3,035	)		—			(6,488	)		(2,431	)
	1,378,052			255,939			2,413,349			2,925,898			1,979,443			205,214
	1,765,678			282,482			2,449,027			3,071,231			2,314,378			271,193
	1,975,041			310,902			2,948,624			3,554,008			2,284,523			299,402
	311,443			541			3,732,687			178,679			302,325			2,923
$	2,286,484		$	311,443		$	6,681,311		$	3,732,687		$	2,586,848		$	302,325

35

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	International Small Cap Trust Series 1						International Value Trust Series 0
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	466,646		$	157,915		$	125,014		$	632
Net investment income (loss)		466,646			157,915			125,014			632
Realized gains (losses) on investments:
Capital gain distributions		4,743,134			—			398,467			1,483
Net realized gain (loss)		1,837,428			1,505,269			43,206			6,824
Realized gains (losses)		6,580,562			1,505,269			441,673			8,307
Unrealized appreciation (depreciation) during the period		(5,208,835	)		1,440,515			(410,284	)		97,301
Net increase (decrease) in assets from operations		1,838,373			3,103,699			156,403			106,240
Changes from principal transactions:
Transfer of net premiums		1,172,486			750,207			716,917			111,309
Transfer on terminations		(1,467,013	)		(1,357,295	)		(299,008	)		(57,959	)
Transfer on policy loans		(63,085	)		138,455			(3,186	)		(1,628	)
Net interfund transfers		(413,535	)		(2,966,480	)		2,502,655			911,198
Net increase (decrease) in assets from principal transactions		(771,147	)		(3,435,113	)		2,917,378			962,920
Total increase (decrease) in assets		1,067,226			(331,414	)		3,073,781			1,069,160
Assets, beginning of period		12,922,092			13,253,506			1,070,153			993
Assets, end of period	$	13,989,318		$	12,922,092		$	4,143,934		$	1,070,153

(a) Fund available in prior year but no activity.

See accompanying notes.

36

Sub-Account
International Value Trust Series 1						Investment Quality Bond Trust Series 0						Investment Quality Bond Trust Series 1
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	1,656,852		$	572,982		$	48,230		$	359		$	1,767,466		$	1,184,183
	1,656,852			572,982			48,230			359			1,767,466			1,184,183
	6,048,453			1,374,504			—			—			—			—
	2,311,583			2,285,620			(1,640	)		(258	)		(17,899	)		(56,364	)
	8,360,036			3,660,124			(1,640	)		(258	)		(17,899	)		(56,364	)
	(6,679,249	)		4,523,705			(15,844	)		1,189			(568,776	)		(438,864	)
	3,337,639			8,756,811			30,746			1,290			1,180,791			688,955
	2,191,322			2,515,639			85,621			31,472			1,754,292			1,553,533
	(3,345,617	)		(3,383,294	)		18,764			(4,246	)		(2,245,423	)		(2,772,974	)
	(203,967	)		(17,524	)		—			—			(99,773	)		(30,651	)
	(3,101,829	)		4,100,747			649,129			81,707			(500,514	)		129,292
	(4,460,091	)		3,215,568			753,514			108,933			(1,091,418	)		(1,120,800	)
	(1,122,452	)		11,972,379			784,260			110,223			89,373			(431,845	)
	39,949,803			27,977,424			110,223			—			19,705,785			20,137,630
$	38,827,351		$	39,949,803		$	894,483		$	110,223		$	19,795,158		$	19,705,785

37

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Large Cap Growth Trust Series 0			Large Cap Growth Trust Series 1
	Year Ended Dec. 31/06 (k)			Year Ended Dec. 31/06 (k)
Income:
Dividend income distribution	$	118		$	69,618
Net investment income (loss)		118			69,618
Realized gains (losses) on investments:
Capital gain distributions		—			—
Net realized gain (loss)		(77	)		1,936,958
Realized gains (losses)		(77	)		1,936,958
Unrealized appreciation (depreciation) during the period		—			(1,555,843	)
Net increase (decrease) in assets from operations		41			450,733
Changes from principal transactions:
Transfer of net premiums		5,914			604,638
Transfer on terminations		(5,791	)		(705,854	)
Transfer on policy loans		—			19,540
Net interfund transfers		(751	)		(19,837,497	)
Net increase (decrease) in assets from principal transactions		(628	)		(19,919,173	)
Total increase (decrease) in assets		(587	)		(19,468,440	)
Assets, beginning of period		587			19,468,440
Assets, end of period		—			—

(k) Terminated as an investment option and funds transferred to Capital Appreciation Trust on May 1, 2006.

(a) Fund available in prior year but no activity.

See accompanying notes.

38

Sub-Account
Large-Cap Trust Series 0						Large Cap Trust Series 1						Large Cap Value Trust Series 0
Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	7,672		$	12		$	132,076		$	56		$	34,760		$	222
	7,672			12			132,076			56			34,760			222
	52,771			69			1,038,068			605			189,942			3,600
	3,678			152			(36,030	)		18,501			52,080			900
	56,449			221			1,002,038			19,106			242,022			4,500
	(96,871	)		7,693			(2,344,656	)		55,368			(281,728	)		26,816
	(32,750	)		7,926			(1,210,542	)		74,530			(4,946	)		31,538
	139,896			45,520			887,413			27,809			964,644			90,862
	(20,240	)		(2,819	)		(1,859,590	)		(31,567	)		(240,791	)		(45,091	)
	(288	)		—			(5,675	)		—			(11,972	)		—
	686,970			138,716			23,522,894			461,159			3,133,560			468,170
	806,338			181,417			22,545,042			457,401			3,845,441			513,941
	773,588			189,343			21,334,500			531,931			3,840,495			545,479
	189,343			—			544,040			12,109			548,776			3,297
$	962,931		$	189,343		$	21,878,540		$	544,040		$	4,389,271		$	548,776

39

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Large Cap Value Trust Series 1						Lifestyle Aggressive Trust Series 0
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06 (v)
Income:
Dividend income distribution	$	106,622		$	28,634		$	1,560,866		$	51,349
Net investment income (loss)		106,622			28,634			1,560,866			51,349
Realized gains (losses) on investments:
Capital gain distributions		658,000			514,009			350,291			135,936
Net realized gain (loss)		229,178			439,507			204,755			(94,620	)
Realized gains (losses)		887,178			953,516			555,046			41,316
Unrealized appreciation (depreciation) during the period		(658,647	)		(30,955	)		(1,105,402	)		674,627
Net increase (decrease) in assets from operations		335,153			951,195			1,010,510			767,292
Changes from principal transactions:
Transfer of net premiums		1,398,787			724,418			7,171,598			1,107,856
Transfer on terminations		(982,909	)		(633,914	)		(3,153,767	)		(707,482	)
Transfer on policy loans		(89,179	)		(20,143	)		41,276			(194,401	)
Net interfund transfers		2,641,414			1,028,955			12,845,466			8,210,156
Net increase (decrease) in assets from principal transactions		2,968,113			1,099,316			16,904,573			8,416,129
Total increase (decrease) in assets		3,303,266			2,050,511			17,915,083			9,183,421
Assets, beginning of period		8,230,078			6,179,567			9,314,281			130,860
Assets, end of period	$	11,533,344		$	8,230,078		$	27,229,364		$	9,314,281

(v) Fund renamed on May 1, 2006. Previously known as Lifestyle Aggressive 1000 Trust.

(w) Fund renamed on May 1, 2006. Previously known as Lifestyle Balanced 640 Trust.

See accompanying notes.

40

Sub-Account
Lifestyle Aggressive Trust Series 1						Lifestyle Balanced Trust Series 0						Lifestyle Balanced Trust Series 1
Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
Dec. 31/07			Dec. 31/06 (v)			Dec. 31/07			Dec. 31/06 (w)			Dec. 31/07			Dec. 31/06 (w)
$	2,342,068		$	1,424,276		$	2,360,435		$	88,793		$	5,589,797		$	3,043,963
	2,342,068			1,424,276			2,360,435			88,793			5,589,797			3,043,963
	586,273			3,771,812			75,896			97,180			125,307			3,622,070
	515,482			224,522			420,212			(106,518	)		1,790,919			579,806
	1,101,755			3,996,334			496,108			(9,338	)		1,916,226			4,201,876
	(1,418,513	)		(2,600,262	)		(1,443,117	)		690,815			(3,008,389	)		(160,654	)
	2,025,310			2,820,348			1,413,426			770,270			4,497,634			7,085,185
	3,240,646			3,368,697			8,330,737			2,033,630			6,894,368			7,399,831
	(3,482,822	)		(3,910,924	)		(2,789,078	)		(427,998	)		(7,404,984	)		(5,801,085	)
	(47,968	)		(205,211	)		(515,531	)		(38,384	)		(737,138	)		(278,643	)
	520,977			4,309,225			26,958,204			11,631,394			7,864,939			4,832,074
	230,833			3,561,787			31,984,332			13,198,642			6,617,185			6,152,177
	2,256,143			6,382,135			33,397,758			13,968,912			11,114,819			13,237,362
	23,128,583			16,746,448			14,300,087			331,175			65,514,497			52,277,135
$	25,384,726		$	23,128,583		$	47,697,845		$	14,300,087		$	76,629,316		$	65,514,497

41

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Lifestyle Conservative Trust Series 0						Lifestyle Conservative Trust Series 1
	Year Ended			Year Ended			Year Ended			Year Ended
	Dec. 31/07			Dec. 31/06 (x)			Dec. 31/07			Dec. 31/06 (x)
Income:
Dividend income distribution	$	149,949		$	3,958		$	587,671		$	315,474
Net investment income (loss)		149,949			3,958			587,671			315,474
Realized gains (losses) on investments:
Capital gain distributions		5,614			1,802			18,790			203,717
Net realized gain (loss)		28,664			(1,724	)		59,912			14,603
Realized gains (losses)		34,278			78			78,702			218,320
Unrealized appreciation (depreciation) during the period		(99,035	)		61,267			(275,697	)		16,032
Net increase (decrease) in assets from operations		85,192			65,303			390,676			549,826
Changes from principal transactions:
Transfer of net premiums		451,381			25,744			445,083			500,729
Transfer on terminations		(160,838	)		(50,639	)		(828,244	)		(819,190	)
Transfer on policy loans		—			—			(97,219	)		20,341
Net interfund transfers		620,709			1,334,171			900,176			118,963
Net increase (decrease) in assets from principal transactions		911,252			1,309,276			419,796			(179,157	)
Total increase (decrease) in assets		996,444			1,374,579			810,472			370,669
Assets, beginning of period		1,374,679			100			6,928,768			6,558,099
Assets, end of period	$	2,371,123		$	1,374,679		$	7,739,240		$	6,928,768

(x) Fund renamed on May 1, 2006. Previously known as Lifestyle Conservative 280 Trust.

(y) Fund renamed on May 1, 2006. Previously known as Lifestyle Growth 820 Trust.

(z) Fund renamed on May 1, 2006. Previously known as Lifestyle Moderate 460 Trust.

See accompanying notes.

42

Sub-Account
Lifestyle Growth Trust Series 0						Lifestyle Growth Trust Series 1						Lifestyle Moderate Trust Series 0
Year Ended			Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
Dec. 31/07			Dec. 31/06 (y)			Dec. 31/07			Dec. 31/06 (y)			Dec. 31/07			Dec. 31/06 (z)
$	5,777,178		$	301,720		$	8,387,879		$	5,055,136		$	256,715		$	8,951
	5,777,178			301,720			8,387,879			5,055,136			256,715			8,951
	339,272			334,603			541,431			5,768,339			7,057			8,023
	703,199			(213,768	)		1,691,912			518,338			54,134			(1,704	)
	1,042,471			120,835			2,233,343			6,286,677			61,191			6,319
	(3,194,853	)		1,717,298			(2,941,947	)		(331,483	)		(175,711	)		65,996
	3,624,796			2,139,853			7,679,275			11,010,330			142,195			81,266
	23,765,227			7,383,097			10,316,980			12,148,756			704,335			266,850
	(7,503,056	)		(1,571,805	)		(11,410,810	)		(8,763,246	)		(269,131	)		(64,613	)
	(837,620	)		(25,860	)		(445,875	)		(359,087	)		6,559			(175,000	)
	60,881,033			27,109,654			7,999,767			9,086,609			3,376,010			1,452,605
	76,305,584			32,895,086			6,460,062			12,113,032			3,817,773			1,479,842
	79,930,380			35,034,939			14,139,337			23,123,362			3,959,968			1,561,108
	35,629,937			594,998			97,756,372			74,633,010			1,622,337			61,229
$	115,560,317		$	35,629,937		$	111,895,709		$	97,756,372		$	5,582,305		$	1,622,337

43

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Lifestyle Moderate Trust Series 1						Managed Trust Series 0
	Year Ended			Year Ended			Year Ended			Year Ended
	Dec. 31/07			Dec. 31/06 (z)			Dec. 31/07			Dec. 31/06
Income:
Dividend income distribution	$	1,083,014		$	483,554		$	82,572		$	4,176
Net investment income (loss)		1,083,014			483,554			82,572			4,176
Realized gains (losses) on investments:
Capital gain distributions		18,853			475,364			32,284			18,691
Net realized gain (loss)		212,655			234,262			18,561			(849	)
Realized gains (losses)		231,508			709,626			50,845			17,842
Unrealized appreciation (depreciation) during the period		(595,438	)		274			(105,169	)		16,307
Net increase (decrease) in assets from operations		719,084			1,193,454			28,248			38,325
Changes from principal transactions:
Transfer of net premiums		1,277,745			1,745,457			361,451			62,642
Transfer on terminations		(1,332,442	)		(1,208,882	)		(134,259	)		(31,630	)
Transfer on policy loans		(118,581	)		3,297			(24,534	)		(216	)
Net interfund transfers		93,092			1,956,168			467,206			603,080
Net increase (decrease) in assets from principal transactions		(80,186	)		2,496,040			669,864			633,876
Total increase (decrease) in assets		638,898			3,689,494			698,112			672,201
Assets, beginning of period		13,690,869			10,001,375			950,300			278,099
Assets, end of period	$	14,329,767		$	13,690,869		$	1,648,412		$	950,300

(z) Fund renamed on May 1, 2006. Previously known as Lifestyle Moderate 460 Trust.

(l) Terminated as an investment option and funds transferred to Mid Cap Index Trust on December 4, 2006.

See accompanying notes.

44

Sub-Account
Mid Cap Core Trust Series 0			Mid Cap Core Trust Series 1			Mid Cap Index Trust Series 0
Year Ended			Year Ended			Year Ended			Year Ended
Dec. 31/06 (l)			Dec. 31/06 (l)			Dec. 31/07			Dec. 31/06
$	3,059		$	37,975		$	35,846		$	225
	3,059			37,975			35,846			225
	39,721			516,508			367,760			1,513
	(33,076	)		(432,170	)		38,650			(2,851	)
	6,645			84,338			406,410			(1,338	)
	7			(18,174	)		(393,324	)		22,387
	9,711			104,139			48,932			21,274
	58,424			325,784			768,323			116,212
	(11,037	)		(117,022	)		(168,465	)		(26,250	)
	(4,712	)		274			(14,719	)		(2,419	)
	(53,608	)		(1,532,493	)		1,793,017			586,616
	(10,933	)		(1,323,457	)		2,378,156			674,159
	(1,222	)		(1,219,318	)		2,427,088			695,433
	1,222			1,219,318			703,035			7,602
	—			—		$	3,130,123		$	703,035

45

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Mid Cap Index Trust Series 1						Mid Cap Intersection Trust Series 0
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07 (h)
Income:
Dividend income distribution	$	174,923		$	61,677		$	2
Net investment income (loss)		174,923			61,677			2
Realized gains (losses) on investments:
Capital gain distributions		1,659,938			430,916			—
Net realized gain (loss)		618,483			682,196			(11	)
Realized gains (losses)		2,278,421			1,113,112			(11	)
Unrealized appreciation (depreciation) during the period		(1,548,827	)		(257,247	)		(674	)
Net increase (decrease) in assets from operations		904,517			917,542			(683	)
Changes from principal transactions:
Transfer of net premiums		1,090,750			1,040,241			15
Transfer on terminations		(1,152,348	)		(1,456,521	)		(547	)
Transfer on policy loans		(57,862	)		(124,446	)		—
Net interfund transfers		(751,002	)		2,646,293			15,173
Net increase (decrease) in assets from principal transactions		(870,462	)		2,105,567			14,641
Total increase (decrease) in assets		34,055			3,023,109			13,958
Assets, beginning of period		12,722,488			9,699,379			—
Assets, end of period	$	12,756,543		$	12,722,488		$	13,958

(h) Reflects the period of commencement of operations on April 30, 2007 through December 31, 2007.

See accompanying notes.

46

Sub-Account
Mid Cap Stock Trust Series 0						Mid Cap Stock Trust Series 1						Mid Cap Value Trust Series 0
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	133			—			—			—		$	23,421		$	304
	133			—			—			—			23,421			304
	636,087			717			6,313,944			887,583			581,529			6,630
	32,037			(883	)		1,627,866			1,162,230			1,845			(1,892	)
	668,124			(166	)		7,941,810			2,049,813			583,374			4,738
	(242,466	)		87,480			(2,936,149	)		625,573			(725,903	)		49,568
	425,791			87,314			5,005,661			2,675,386			(119,108	)		54,610
	484,049			92,140			1,696,656			1,810,827			740,163			73,564
	(213,988	)		(57,375	)		(2,481,038	)		(2,374,001	)		(153,009	)		(21,769	)
	(20,289	)		(1,867	)		(270,900	)		(29,046	)		(13,063	)		(2,951	)
	1,930,988			993,786			1,927,703			(2,352,749	)		1,677,692			495,755
	2,180,760			1,026,684			872,421			(2,944,969	)		2,251,783			544,599
	2,606,551			1,113,998			5,878,082			(269,583	)		2,132,675			599,209
	1,114,529			531			21,500,613			21,770,196			602,966			3,757
$	3,721,080		$	1,114,529		$	27,378,695		$	21,500,613		$	2,735,641		$	602,966

47

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Mid Cap Value Trust Series 1						Mid Value Trust Series 0
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	300,713		$	155,083		$	13,086		$	63
Net investment income (loss)		300,713			155,083			13,086			63
Realized gains (losses) on investments:
Capital gain distributions		7,566,880			3,687,391			93,426			1,596
Net realized gain (loss)		272,821			263,764			(14,783	)		25
Realized gains (losses)		7,839,701			3,951,155			78,643			1,621
Unrealized appreciation (depreciation) during the period		(7,700,604	)		(1,471,419	)		(121,053	)		6,583
Net increase (decrease) in assets from operations		439,810			2,634,819			(29,324	)		8,267
Changes from principal transactions:
Transfer of net premiums		1,722,472			2,042,952			244,557			23,739
Transfer on terminations		(2,098,020	)		(1,631,265	)		(32,859	)		(2,255	)
Transfer on policy loans		(44,574	)		(93,138	)		(36	)		—
Net interfund transfers		(372,925	)		(808,770	)		532,957			59,408
Net increase (decrease) in assets from principal transactions		(793,047	)		(490,221	)		744,619			80,892
Total increase (decrease) in assets		(353,237	)		2,144,598			715,295			89,159
Assets, beginning of period		24,141,454			21,996,856			89,207			48
Assets, end of period	$	23,788,217		$	24,141,454		$	804,502		$	89,207

See accompanying notes.

48

Sub-Account
Money Market Trust B Series 0						Money Market Trust Series 1						Natural Resources Trust Series 0
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	1,085,503		$	298,096		$	3,493,376		$	3,660,440		$	33,314		$	769
	1,085,503			298,096			3,493,376			3,660,440			33,314			769
	—			—			—			—			1,359,670			24,298
	—			—			—			—			82,855			(17,363	)
	—			—			—			—			1,442,525			6,935
	—			—			—			—			(643,513	)		35,332
	1,085,503			298,096			3,493,376			3,660,440			832,326			43,036
	152,054,687			56,274,641			16,257,293			30,870,510			757,632			210,526
	71,764,178			37,732,026			(17,195,345	)		(17,666,851	)		(213,859	)		(40,979	)
	(272,717	)		(169,508	)		(219,034	)		(17,303	)		(14,347	)		(3,235	)
	(201,467,732	)		(80,956,842	)		(2,366,766	)		(16,372,197	)		2,440,759			632,243
	22,078,416			12,880,317			(3,523,852	)		(3,185,841	)		2,970,185			798,555
	23,163,919			13,178,413			(30,476	)		474,599			3,802,511			841,591
	14,799,912			1,621,499			81,624,374			81,149,775			842,321			730
$	37,963,831		$	14,799,912		$	81,593,898		$	81,624,374		$	4,644,832		$	842,321

49

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Natural Resources Trust Series 1						Overseas Equity Trust Series 0
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	196,328		$	59,999		$	14,038		$	13
Net investment income (loss)		196,328			59,999			14,038			13
Realized gains (losses) on investments:
Capital gain distributions		7,009,094			2,012,912			77,006			48
Net realized gain (loss)		875,442			1,051,313			35,071			1,702
Realized gains (losses)		7,884,536			3,064,225			112,077			1,750
Unrealized appreciation (depreciation) during the period		(2,475,207	)		(1,367,088	)		(70,899	)		19,598
Net increase (decrease) in assets from operations		5,605,657			1,757,136			55,216			21,361
Changes from principal transactions:
Transfer of net premiums		827,458			908,841			202,717			9,858
Transfer on terminations		(987,318	)		(1,115,912	)		(39,400	)		(13,646	)
Transfer on policy loans		(174,541	)		(115,369	)		—			—
Net interfund transfers		3,502,823			951,302			388,098			235,320
Net increase (decrease) in assets from principal transactions		3,168,422			628,862			551,415			231,532
Total increase (decrease) in assets		8,774,079			2,385,998			606,631			252,893
Assets, beginning of period		11,373,376			8,987,378			252,920			27
Assets, end of period	$	20,147,455		$	11,373,376		$	859,551		$	252,920

See accompanying notes.

50

Sub-Account
Pacific Rim Trust Series 0						Pacific Rim Trust Series 1						Quantitative All Cap Trust Series 0
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	29,814		$	733		$	250,556		$	125,367		$	4,428		$	199
	29,814			733			250,556			125,367			4,428			199
	417,845			—			3,464,415			—			37,922			1,098
	37,356			(2,305	)		1,570,469			2,018,512			2,016			(45	)
	455,201			(2,305	)		5,034,884			2,018,512			39,938			1,053
	(390,932	)		31,170			(4,058,552	)		(826,808	)		(48,087	)		(197	)
	94,083			29,598			1,226,888			1,317,071			(3,721	)		1,055
	475,922			163,000			783,753			984,132			43,946			4,101
	(154,434	)		(53,323	)		(1,432,940	)		(1,376,954	)		(13,771	)		(1,155	)
	(3,423	)		—			(47,909	)		(9,436	)		(2,877	)		—
	885,044			487,655			(1,044,074	)		(963,754	)		309,409			18,206
	1,203,109			597,332			(1,741,170	)		(1,366,012	)		336,707			21,152
	1,297,192			626,930			(514,282	)		(48,941	)		332,986			22,207
	627,530			600			13,097,299			13,146,240			22,221			14
$	1,924,722		$	627,530		$	12,583,017		$	13,097,299		$	355,207		$	22,221

51

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Quantitative All Cap Trust Series 1						Quantitative Mid Cap Trust Series 0
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	9,154		$	5,741		$	428			—
Net investment income (loss)		9,154			5,741			428			—
Realized gains (losses) on investments:
Capital gain distributions		101,270			44,858			13,351			2,909
Net realized gain (loss)		11,067			5,513			5,453			(2,924	)
Realized gains (losses)		112,337			50,371			18,804			(15	)
Unrealized appreciation (depreciation) during the period		(99,573	)		14,364			(17,611	)		(445	)
Net increase (decrease) in assets from operations		21,918			70,476			1,621			(460	)
Changes from principal transactions:
Transfer of net premiums		120,056			107,027			22,800			14,673
Transfer on terminations		(113,520	)		(46,707	)		(6,010	)		(1,213	)
Transfer on policy loans		228			401			—			—
Net interfund transfers		111,800			69,258			(82,476	)		125,505
Net increase (decrease) in assets from principal transactions		118,564			129,979			(65,686	)		138,965
Total increase (decrease) in assets		140,482			200,455			(64,065	)		138,505
Assets, beginning of period		621,515			421,060			144,781			6,276
Assets, end of period	$	761,997		$	621,515		$	80,716		$	144,781

(a) Fund available in prior year but no activity.

See accompanying notes.

52

Sub-Account
Quantitative Mid Cap Trust Series 1						Quantitative Value Trust Series 0						Quantitative Value Trust Series 1
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	7,638			—		$	1,992			—		$	11,018		$	4,130
	7,638			—			1,992			—			11,018			4,130
	356,386			697,226			8,696			—			53,637			35,894
	(469,601	)		(30,985	)		2,611			47			2,736			37,160
	(113,215	)		666,241			11,307			47			56,373			73,054
	100,839			(615,888	)		(20,389	)		3,743			(92,252	)		15,877
	(4,738	)		50,353			(7,090	)		3,790			(24,861	)		93,061
	143,312			160,684			17,164			1,016			37,857			22,797
	(196,305	)		(187,170	)		(8,984	)		(446	)		(28,881	)		(39,265	)
	(18,602	)		(1,227	)		—			—			—			—
	(488,505	)		754,981			52,166			34,372			(112,763	)		(69,704	)
	(560,100	)		727,268			60,346			34,942			(103,787	)		(86,172	)
	(564,838	)		777,621			53,256			38,732			(128,648	)		6,889
	2,197,838			1,420,217			38,732			—			589,162			582,273
$	1,633,000		$	2,197,838		$	91,988		$	38,732		$	460,514		$	589,162

53

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Real Estate Securities Trust Series 0						Real Estate Securities Trust Series 1
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	86,308		$	3,459		$	1,280,686		$	916,893
Net investment income (loss)		86,308			3,459			1,280,686			916,893
Realized gains (losses) on investments:
Capital gain distributions		1,615,796			32,161			24,247,003			8,748,824
Net realized gain (loss)		(249,586	)		3,682			1,927,470			5,317,829
Realized gains (losses)		1,366,210			35,843			26,174,473			14,066,653
Unrealized appreciation (depreciation) during the period		(2,141,138	)		134,471			(34,719,793	)		1,369,012
Net increase (decrease) in assets from operations		(688,620	)		173,773			(7,264,634	)		16,352,558
Changes from principal transactions:
Transfer of net premiums		1,102,924			203,776			2,174,087			2,637,377
Transfer on terminations		(286,489	)		(44,538	)		(6,511,863	)		(5,666,674	)
Transfer on policy loans		(28,366	)		(7,326	)		(619,240	)		(230,126	)
Net interfund transfers		2,125,814			1,147,689			(5,285,073	)		(2,558,582	)
Net increase (decrease) in assets from principal transactions		2,913,883			1,299,601			(10,242,089	)		(5,818,005	)
Total increase (decrease) in assets		2,225,263			1,473,374			(17,506,723	)		10,534,553
Assets, beginning of period		1,508,246			34,872			55,885,697			45,351,144
Assets, end of period	$	3,733,509		$	1,508,246		$	38,378,974		$	55,885,697

See accompanying notes.

54

Sub-Account
Real Return Bond Trust Series 0						Real Return Bond Trust Series 1						Science & Technology Trust Series 0
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	32,852		$	112		$	275,943		$	65,057			—			—
	32,852			112			275,943			65,057			—			—
	—			83			—			49,046			—			—
	(1,311	)		(135	)		(32,138	)		(5,999	)		50,017			(2,032	)
	(1,311	)		(52	)		(32,138	)		43,047			50,017			(2,032	)
	4,693			885			158,813			(99,316	)		87,991			60,444
	36,234			945			402,618			8,788			138,008			58,412
	99,965			8,622			324,157			287,252			197,943			48,078
	(24,401	)		(8,236	)		(317,107	)		(277,337	)		(63,196	)		(15,329	)
	(608	)		—			(2,740	)		(72,817	)		(10,211	)		(9,669	)
	368,600			127,754			1,077,878			432,276			613,558			536,169
	443,556			128,140			1,082,188			369,374			738,094			559,249
	479,790			129,085			1,484,806			378,162			876,102			617,661
	130,354			1,269			2,922,527			2,544,365			617,666			5
$	610,144		$	130,354		$	4,407,333		$	2,922,527		$	1,493,768		$	617,666

55

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Science & Technology Trust Series 1						Short-Term Bond Trust Series 0
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)
Income:
Dividend income distribution		—			—		$	18,627		$	559
Net investment income (loss)		—			—			18,627			559
Realized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Net realized gain (loss)		1,871,904			1,191,792			1,101			379
Realized gains (losses)		1,871,904			1,191,792			1,101			379
Unrealized appreciation (depreciation) during the period		1,494,881			(209,171	)		(15,322	)		453
Net increase (decrease) in assets from operations		3,366,785			982,621			4,406			1,391
Changes from principal transactions:
Transfer of net premiums		1,827,550			2,204,585			57,153			2,269
Transfer on terminations		(2,371,093	)		(2,508,723	)		(11,459	)		(2,828	)
Transfer on policy loans		(133,057	)		(219,342	)		—			—
Net interfund transfers		1,698,856			(2,167,118	)		212,321			33,095
Net increase (decrease) in assets from principal transactions		1,022,256			(2,690,598	)		258,015			32,536
Total increase (decrease) in assets		4,389,041			(1,707,977	)		262,421			33,927
Assets, beginning of period		18,175,973			19,883,950			33,927			—
Assets, end of period	$	22,565,014		$	18,175,973		$	296,348		$	33,927

(a) Fund available in prior year but no activity.

See accompanying notes.

56

Sub-Account
Small Cap Growth Trust Series 0						Small Cap Index Trust Series 0						Small Cap Index Trust Series 1
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
	—			—		$	31,008		$	173		$	165,947		$	42,090
	—			—			31,008			173			165,947			42,090
	73,889			—			223,957			876			1,277,968			227,435
	(7,006	)		538			23,625			1,867			326,861			291,057
	66,883			538			247,582			2,743			1,604,829			518,492
	(48,125	)		1,375			(365,020	)		53,408			(1,994,433	)		860,973
	18,758			1,913			(86,430	)		56,324			(223,657	)		1,421,555
	103,600			10,024			494,308			83,625			917,948			846,420
	(35,542	)		(1,895	)		(99,473	)		(27,513	)		(639,174	)		(850,250	)
	(3,530	)		(556	)		(9,139	)		—			(122,195	)		(87,331	)
	708,045			27,583			1,365,260			606,572			(573,342	)		482,817
	772,573			35,156			1,750,956			662,684			(416,763	)		391,656
	791,331			37,069			1,664,526			719,008			(640,420	)		1,813,211
	37,098			29			728,104			9,096			9,814,002			8,000,791
$	828,429		$	37,098		$	2,392,630		$	728,104		$	9,173,582		$	9,814,002

57

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Small Cap Opportunities Trust Series 0						Small Cap Opportunities Trust Series 1
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	8,864		$	487		$	181,173		$	67,934
Net investment income (loss)		8,864			487			181,173			67,934
Realized gains (losses) on investments:
Capital gain distributions		28,381			1,698			574,433			254,106
Net realized gain (loss)		6,838			(2,337	)		736,850			272,497
Realized gains (losses)		35,219			(639	)		1,311,283			526,603
Unrealized appreciation (depreciation) during the period		(70,445	)		6,537			(2,273,914	)		360,342
Net increase (decrease) in assets from operations		(26,362	)		6,385			(781,458	)		954,879
Changes from principal transactions:
Transfer of net premiums		126,455			78,306			691,614			919,780
Transfer on terminations		(37,907	)		(13,239	)		(733,016	)		(655,763	)
Transfer on policy loans		—			—			(46,869	)		10,946
Net interfund transfers		81,976			232,591			(1,087,964	)		(728,740	)
Net increase (decrease) in assets from principal transactions		170,524			297,658			(1,176,235	)		(453,777	)
Total increase (decrease) in assets		144,162			304,043			(1,957,693	)		501,102
Assets, beginning of period		304,246			203			10,192,903			9,691,801
Assets, end of period	$	448,408		$	304,246		$	8,235,210		$	10,192,903

See accompanying notes.

58

Sub-Account
Small Cap Trust Series 0						Small Cap Trust Series 1						Small Cap Value Trust Series 0
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
	—			—			—			—		$	15,496		$	107
	—			—			—			—			15,496			107
	62,492			335			67,496			78,979			269,234			17,161
	2,039			(1,047	)		(22,635	)		(60,654	)		(11,899	)		(1,869	)
	64,531			(712	)		44,861			18,325			257,335			15,292
	(75,682	)		3,654			(79,496	)		(44,033	)		(403,867	)		16,508
	(11,151	)		2,942			(34,635	)		(25,708	)		(131,036	)		31,907
	54,043			15,191			52,547			26,634			462,987			52,003
	(18,694	)		(4,600	)		(49,460	)		(22,686	)		(104,233	)		(12,771	)
	(608	)		—			—			—			(9,211	)		—
	255,467			67,131			(733,718	)		281,024			1,471,487			273,458
	290,208			77,722			(730,631	)		284,972			1,821,030			312,690
	279,057			80,664			(765,266	)		259,264			1,689,994			344,597
	80,990			326			1,140,105			880,841			378,961			34,364
$	360,047		$	80,990		$	374,839		$	1,140,105		$	2,068,955		$	378,961

59

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Small Cap Value Trust Series 1			Small Company Trust Series 0
	Year Ended Dec. 31/07 (a)			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	3,824			—			—
Net investment income (loss)		3,824			—			—
Realized gains (losses) on investments:
Capital gain distributions		67,109			454			62
Net realized gain (loss)		(423	)		9			(122	)
Realized gains (losses)		66,686			463			(60	)
Unrealized appreciation (depreciation) during the period		(82,056	)		(698	)		48
Net increase (decrease) in assets from operations		(11,546	)		(235	)		(12	)
Changes from principal transactions:
Transfer of net premiums		10,879			1,785			1,716
Transfer on terminations		(4,131	)		(397	)		(253	)
Transfer on policy loans		(652	)		—			—
Net interfund transfers		725,079			—			14
Net increase (decrease) in assets from principal transactions		731,175			1,388			1,477
Total increase (decrease) in assets		719,629			1,153			1,465
Assets, beginning of period		—			1,911			446
Assets, end of period	$	719,629		$	3,064		$	1,911

(a) Fund available in prior year but no activity.

See accompanying notes.

60

Sub-Account
Small Company Trust Series 1						Small Company Value Trust Series 0						Small Company Value Trust Series 1
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
	—			—		$	4,217		$	86		$	35,795		$	15,313
	—			—			4,217			86			35,795			15,313
	394,778			116,281			457,067			11,136			3,822,437			3,530,789
	168,385			(65,465	)		9,008			(14,065	)		2,324,824			1,436,650
	563,163			50,816			466,075			(2,929	)		6,147,261			4,967,439
	(650,973	)		88,888			(581,872	)		84,913			(6,416,043	)		(1,697,527	)
	(87,810	)		139,704			(111,580	)		82,070			(232,987	)		3,285,225
	88,045			66,313			892,231			150,992			2,000,278			2,003,986
	(190,048	)		(113,932	)		(201,827	)		(54,865	)		(2,718,129	)		(1,620,945	)
	—			—			(12,134	)		(4,640	)		(133,484	)		(135,962	)
	(19,943	)		1,574,454			1,573,770			1,213,762			(1,219,537	)		(830,500	)
	(121,946	)		1,526,835			2,252,040			1,305,249			(2,070,872	)		(583,421	)
	(209,756	)		1,666,539			2,140,460			1,387,319			(2,303,859	)		2,701,804
	2,211,694			545,155			1,389,495			2,176			24,522,007			21,820,203
$	2,001,938		$	2,211,694		$	3,529,955		$	1,389,495		$	22,218,148		$	24,522,007

61

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Special Value Trust Series 0						Special Value Trust Series 1
	Year Ended Dec. 31/07 (j)			Year Ended Dec. 31/06 (a)			Year Ended Dec. 31/07 (j)			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	2,718			—		$	16,500		$	125
Net investment income (loss)		2,718			—			16,500			125
Realized gains (losses) on investments:
Capital gain distributions		27,648			—			243,640			44,833
Net realized gain (loss)		(33,600	)		113			(247,945	)		285,712
Realized gains (losses)		(5,952	)		113			(4,305	)		330,545
Unrealized appreciation (depreciation) during the period		(1,283	)		1,283			(20,451	)		(251,463	)
Net increase (decrease) in assets from operations		(4,517	)		1,396			(8,256	)		79,207
Changes from principal transactions:
Transfer of net premiums		13,131			1,236			96,806			114,717
Transfer on terminations		(5,241	)		(1,046	)		(38,988	)		(180,681	)
Transfer on policy loans		(7	)		(1,582	)		210			233
Net interfund transfers		(37,502	)		34,132			(538,652	)		(886,964	)
Net increase (decrease) in assets from principal transactions		(29,619	)		32,740			(480,624	)		(952,695	)
Total increase (decrease) in assets		(34,136	)		34,136			(488,880	)		(873,488	)
Assets, beginning of period		34,136			—			488,880			1,362,368
Assets, end of period		—		$	34,136			—		$	488,880

(j) Terminated as an investment option and funds transferred to Small Cap Value Trust on November 12, 2007.

(a) Fund available in prior year but no activity.

See accompanying notes.

62

Sub-Account
Strategic Bond Trust Series 0						Strategic Bond Trust Series 1						Strategic Income Trust Series 0
Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	50,479		$	411		$	1,107,278		$	699,660		$	23,491		$	2,366
	50,479			411			1,107,278			699,660			23,491			2,366
	—			—			—			—			—			7
	(8,390	)		(298	)		139,651			118,586			6,548			139
	(8,390	)		(298	)		139,651			118,586			6,548			146
	(47,194	)		3,302			(1,272,073	)		(68,951	)		12,528			(835	)
	(5,105	)		3,415			(25,144	)		749,295			42,567			1,677
	180,973			26,949			817,884			914,527			158,967			12,368
	(41,004	)		(4,104	)		(1,104,329	)		(1,171,988	)		(38,840	)		(2,788	)
	(115	)		(3,075	)		(27,045	)		(4,832	)		—			—
	806,480			73,313			503,217			977,767			997,497			60,475
	946,334			93,083			189,727			715,474			1,117,624			70,055
	941,229			96,498			164,583			1,464,769			1,160,191			71,732
	96,498			—			11,787,711			10,322,942			77,024			5,292
$	1,037,727		$	96,498		$	11,952,294		$	11,787,711		$	1,237,215		$	77,024

63

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Strategic Income Trust Series 1						Strategic Opportunities Trust Series 0
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07 (i)			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	25,475		$	24,641		$	3,490		$	4
Net investment income (loss)		25,475			24,641			3,490			4
Realized gains (losses) on investments:
Capital gain distributions		—			131			—			—
Net realized gain (loss)		1,052			(20	)		52,084			439
Realized gains (losses)		1,052			111			52,084			439
Unrealized appreciation (depreciation) during the period		27,725			(2,718	)		(27,535	)		27,534
Net increase (decrease) in assets from operations		54,252			22,034			28,039			27,977
Changes from principal transactions:
Transfer of net premiums		185,693			136,435			23,313			23,849
Transfer on terminations		(103,200	)		(61,816	)		(28,163	)		(9,229	)
Transfer on policy loans		—			—			(1,563	)		(1,555	)
Net interfund transfers		327,285			431,894			(408,652	)		345,934
Net increase (decrease) in assets from principal transactions		409,778			506,513			(415,065	)		358,999
Total increase (decrease) in assets		464,030			528,547			(387,026	)		386,976
Assets, beginning of period		784,930			256,383			387,026			50
Assets, end of period	$	1,248,960		$	784,930			—		$	387,026

(i) Terminated as an investment option and funds transferred to Large Cap Trust on April 30, 2007.

(m) Terminated as an investment option and funds transferred to Large Cap Value Trust on December 4, 2006.

See accompanying notes.

64

Sub-Account
Strategic Opportunities Trust Series 1						Strategic Value Trust Series 0			Strategic Value Trust Series 1
Year Ended Dec. 31/07 (i)			Year Ended Dec. 31/06			Year Ended Dec. 31/06 (m)			Year Ended Dec. 31/06 (m)
$	177,962		$	2,807		$	320		$	42,889
	177,962			2,807			320			42,889
	—			—			2,831			380,309
	3,833,913			(1,997,979	)		(2,506	)		(249,018	)
	3,833,913			(1,997,979	)		325			131,291
	(2,469,048	)		4,709,582			—			(8,428	)
	1,542,827			2,714,410			645			165,752
	484,666			1,722,710			965			166,783
	(750,538	)		(3,493,303	)		(4,230	)		(160,937	)
	(36,222	)		(19,651	)		—			1,317
	(24,678,920	)		(1,446,347	)		2,620			(1,741,794	)
	(24,981,014	)		(3,236,591	)		(645	)		(1,734,631	)
	(23,438,187	)		(522,181	)		—			(1,568,879	)
	23,438,187			23,960,368			—			1,568,879
	—		$	23,438,187			—			—

65

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Total Bond Market Trust B Series 0						Total Return Trust Series 0
	Year Ended Dec. 31/07 (g)			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	123,255		$	91		$	239,003		$	1,828
Net investment income (loss)		123,255			91			239,003			1,828
Realized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Net realized gain (loss)		2,085			176			10,390			1,677
Realized gains (losses)		2,085			176			10,390			1,677
Unrealized appreciation (depreciation) during the period		(29,781	)		4,494			1,943			28,773
Net increase (decrease) in assets from operations		95,559			4,761			251,336			32,278
Changes from principal transactions:
Transfer of net premiums		513,591			69,021			680,672			53,917
Transfer on terminations		(59,727	)		(10,367	)		(179,746	)		(38,843	)
Transfer on policy loans		(2,724	)		—			—			—
Net interfund transfers		1,591,507			98,276			2,122,309			1,234,850
Net increase (decrease) in assets from principal transactions		2,042,647			156,930			2,623,235			1,249,924
Total increase (decrease) in assets		2,138,206			161,691			2,874,571			1,282,202
Assets, beginning of period		161,697			6			1,284,476			2,274
Assets, end of period	$	2,299,903		$	161,697		$	4,159,047		$	1,284,476

(g) Fund renamed on October 1, 2007. Previously known as Bond Index Trust B.

See accompanying notes.

66

Sub-Account
Total Return Trust Series 1						Total Stock Market Index Trust Series 0						Total Stock Market Index Trust Series 1
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	1,706,525		$	706,894		$	25,347		$	207		$	167,502		$	58,730
	1,706,525			706,894			25,347			207			167,502			58,730
	—			—			42,222			106			296,247			31,416
	(81,145	)		3,751			70,081			(1,164	)		256,171			267,656
	(81,145	)		3,751			112,303			(1,058	)		552,418			299,072
	213,851			42,260			(83,173	)		44,093			(350,330	)		564,574
	1,839,231			752,905			54,477			43,242			369,590			922,376
	1,376,271			2,029,832			449,408			29,439			729,354			599,811
	(1,705,059	)		(1,844,656	)		(78,531	)		(43,995	)		(470,200	)		(640,058	)
	(81,528	)		(183,263	)		—			—			(53,783	)		(323	)
	(498,310	)		1,035,667			454,086			511,725			177,074			216,723
	(908,626	)		1,037,580			824,963			497,169			382,445			176,153
	930,605			1,790,485			879,440			540,411			752,035			1,098,529
	22,283,837			20,493,352			546,447			6,036			7,122,081			6,023,552
$	23,214,442		$	22,283,837		$	1,425,887		$	546,447		$	7,874,116		$	7,122,081

67

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	Turner Core Growth Trust						U.S. Core Trust Series 0
	Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)			Year Ended Dec. 31/07			Year Ended Dec. 31/06 (u)
Income:
Dividend income distribution	$	1,375		$	76		$	9,679		$	1,774
Net investment income (loss)		1,375			76			9,679			1,774
Realized gains (losses) on investments:
Capital gain distributions		24,525			504			42,372			17,188
Net realized gain (loss)		4,365			97			(1,514	)		(3,435	)
Realized gains (losses)		28,890			601			40,858			13,753
Unrealized appreciation (depreciation) during the period		3,958			(159	)		(48,673	)		(2,525	)
Net increase (decrease) in assets from operations		34,223			518			1,864			13,002
Changes from principal transactions:
Transfer of net premiums		88,887			6,224			61,461			25,514
Transfer on terminations		(26,960	)		(2,263	)		(27,139	)		(17,542	)
Transfer on policy loans		—			—			(1,203	)		—
Net interfund transfers		680,591			9,078			236,214			180,993
Net increase (decrease) in assets from principal transactions		742,518			13,039			269,333			188,965
Total increase (decrease) in assets		776,741			13,557			271,197			201,967
Assets, beginning of period		13,557			—			208,118			6,151
Assets, end of period	$	790,298		$	13,557		$	479,315		$	208,118

(a) Fund available in prior year but no activity.

(u) Fund renamed on May 1, 2006. Previously known as Growth & Income Trust.

See accompanying notes.

68

Sub-Account
U.S. Core Trust Series 1						U.S. Global Leaders Growth Trust Series 0						U.S. Global Leaders Growth Trust Series 1
Year Ended Dec. 31/07			Year Ended Dec. 31/06 (u)			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	898,455		$	521,432		$	2,822			—		$	25,205			—
	898,455			521,432			2,822			—			25,205			—
	3,613,890			5,011,958			—			21			—			15,709
	(3,335,597	)		(2,971,182	)		2,238			(64	)		29,214			102,215
	278,293			2,040,776			2,238			(43	)		29,214			117,924
	(533,839	)		1,187,810			(154	)		1,211			13,665			(64,660	)
	642,909			3,750,018			4,906			1,168			68,084			53,264
	2,666,487			3,129,445			89,839			8,006			182,196			245,169
	(4,589,409	)		(5,572,018	)		(20,196	)		1,170			(204,890	)		(127,042	)
	(106,067	)		141,079			—			—			28			(979	)
	(4,493,408	)		(3,151,876	)		142,916			32,357			37,139			(1,006,041	)
	(6,522,397	)		(5,453,370	)		212,559			41,533			14,473			(888,893	)
	(5,879,488	)		(1,703,352	)		217,465			42,701			82,557			(835,629	)
	43,266,764			44,970,116			43,231			530			1,894,209			2,729,838
$	37,387,276		$	43,266,764		$	260,696		$	43,231		$	1,976,766		$	1,894,209

69

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	U.S. Government Securities Trust Series 0						U.S. Government Securities Trust Series 1
	Year Ended Dec. 31/07			Year Ended Dec. 31/06 (a)			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	22,113		$	170		$	1,076,183		$	605,971
Net investment income (loss)		22,113			170			1,076,183			605,971
Realized gains (losses) on investments:
Capital gain distributions		—			—			—			—
Net realized gain (loss)		1,808			353			(218,555	)		(77,748	)
Realized gains (losses)		1,808			353			(218,555	)		(77,748	)
Unrealized appreciation (depreciation) during the period		(14,941	)		1,115			(458,622	)		(2,993	)
Net increase (decrease) in assets from operations		8,980			1,638			399,006			525,230
Changes from principal transactions:
Transfer of net premiums		131,901			13,749			1,705,541			1,320,020
Transfer on terminations		(22,257	)		(7,383	)		(1,706,120	)		(1,391,563	)
Transfer on policy loans		—			—			29,512			(108,129	)
Net interfund transfers		283,830			34,684			622,200			(470,069	)
Net increase (decrease) in assets from principal transactions		393,474			41,050			651,133			(649,741	)
Total increase (decrease) in assets		402,454			42,688			1,050,139			(124,511	)
Assets, beginning of period		42,688			—			12,431,478			12,555,989
Assets, end of period	$	445,142		$	42,688		$	13,481,617		$	12,431,478

(a) Fund available in prior year but no activity.

See accompanying notes.

70

Sub-Account
U.S. High Yield Bond Trust Series 0						U.S. High Yield Bond Trust Series 1						U.S. Large Cap Trust Series 0
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	26,036		$	72		$	59,118		$	466		$	13,050		$	25
	26,036			72			59,118			466			13,050			25
	—			—			—			—			—			—
	(190	)		503			19,079			36,586			11,901			1,227
	(190	)		503			19,079			36,586			11,901			1,227
	(21,932	)		1,374			(77,055	)		39,542			(75,722	)		11,046
	3,914			1,949			1,142			76,594			(50,771	)		12,298
	113,149			7,796			51,349			26,229			334,841			17,831
	(28,082	)		(7,926	)		(100,922	)		(25,767	)		(65,012	)		(7,742	)
	—			—			—			—			(176	)		(9,849	)
	258,883			42,179			(246,814	)		818,863			1,104,724			246,296
	343,950			42,049			(296,387	)		819,325			1,374,377			246,536
	347,864			43,998			(295,245	)		895,919			1,323,606			258,834
	44,001			3			900,741			4,822			258,878			44
$	391,865		$	44,001		$	605,496		$	900,741		$	1,582,484		$	258,878

71

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Sub-Account
	U.S. Large Cap Trust Series 1						Utilities Trust Series 0
	Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	564,936		$	295,058		$	22,534		$	108
Net investment income (loss)		564,936			295,058			22,534			108
Realized gains (losses) on investments:
Capital gain distributions		—			—			289,013			554
Net realized gain (loss)		2,068,272			1,281,208			61,885			1,954
Realized gains (losses)		2,068,272			1,281,208			350,898			2,508
Unrealized appreciation (depreciation) during the period		(2,593,560	)		3,731,789			(156,526	)		34,914
Net increase (decrease) in assets from operations		39,648			5,308,055			216,906			37,530
Changes from principal transactions:
Transfer of net premiums		3,163,976			3,569,623			233,640			21,396
Transfer on terminations		(5,927,324	)		(6,569,426	)		(80,249	)		(13,861	)
Transfer on policy loans		(250,258	)		(70,558	)		(5,982	)		—
Net interfund transfers		(2,479,401	)		(2,380,583	)		1,206,478			253,071
Net increase (decrease) in assets from principal transactions		(5,493,007	)		(5,450,944	)		1,353,887			260,606
Total increase (decrease) in assets		(5,453,359	)		(142,889	)		1,570,793			298,136
Assets, beginning of period		52,467,049			52,609,938			298,683			547
Assets, end of period	$	47,013,690		$	52,467,049		$	1,869,476		$	298,683

See accompanying notes.

72

Sub-Account
Utilities Trust Series 1						Value Trust Series 0						Value Trust Series 1
Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06			Year Ended Dec. 31/07			Year Ended Dec. 31/06
$	186,957		$	82,771		$	15,479		$	72		$	312,864		$	78,703
	186,957			82,771			15,479			72			312,864			78,703
	2,154,409			432,940			376,974			2,420			6,702,626			2,916,856
	1,770,893			80,071			10,653			(355	)		1,702,124			1,248,841
	3,925,302			513,011			387,627			2,065			8,404,750			4,165,697
	(2,035,248	)		1,328,655			(385,415	)		21,115			(6,896,804	)		(176,442	)
	2,077,011			1,924,437			17,691			23,252			1,820,810			4,067,958
	390,065			480,798			409,071			38,092			1,279,680			1,257,867
	(373,461	)		(426,448	)		(162,359	)		(38,483	)		(2,809,053	)		(2,483,842	)
	(98,374	)		(4,231	)		(3,462	)		(212	)		(65,599	)		(136,116	)
	(2,695,543	)		4,584,235			1,337,191			239,341			(2,007,077	)		1,223,808
	(2,777,313	)		4,634,354			1,580,441			238,738			(3,602,049	)		(138,283	)
	(700,302	)		6,558,791			1,598,132			261,990			(1,781,239	)		3,929,675
	9,672,916			3,114,125			262,517			527			23,697,339			19,767,664
$	8,972,614		$	9,672,916		$	1,860,649		$	262,517		$	21,916,100		$	23,697,339

73

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

Statements of Operations and Changes in Contract Owners’ Equity

(continued)

	Total
	Year Ended Dec. 31/07			Year Ended Dec. 31/06
Income:
Dividend income distribution	$	62,239,951		$	26,664,947
Net investment income (loss)		62,239,951			26,664,947
Realized gains (losses) on investments:
Capital gain distributions		138,262,479			57,764,070
Net realized gain (loss)		49,607,959			36,644,250
Realized gains (losses)		187,870,438			94,408,320
Unrealized appreciation (depreciation) during the period		(160,550,255	)		40,384,230
Net increase (decrease) in assets from operations		89,560,134			161,457,497
Changes from principal transactions:
Transfer of net premiums		333,580,302			208,809,569
Transfer on terminations		(101,255,483	)		(119,708,697	)
Transfer on policy loans		(8,463,484	)		(4,443,020	)
Net interfund transfers		(2,992,947	)		(2,138,269	)
Net increase (decrease) in assets from principal transactions		220,868,388			82,519,583
Total increase (decrease) in assets		310,428,522			243,977,080
Assets, beginning of period		1,447,863,229			1,203,886,149
Assets, end of period	$	1,758,291,751		$	1,447,863,229

See accompanying notes.

74

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

Notes to Financial Statements

December 31, 2007

1. Organization

John Hancock Life Insurance Company (U.S.A.) Separate Account A (the “Account”) is a separate account administered and sponsored by John Hancock Life Insurance Company (U.S.A.) (JHUSA or the “Company”). The Account operates as a Unit Investment Trust registered under the Investment Company Act of 1940, as amended (the “Act”) and has eighty-two active investment sub-accounts that invest in shares of a particular John Hancock Trust (the “Trust”) portfolio and seven sub-accounts that invest in shares of other outside investment trusts. The Trust is registered under the Act as an open-end management investment company, commonly known as a mutual fund, which does not transact with the general public. Instead, the Trust deals primarily with insurance companies by providing the investment medium for variable contracts. The Account is a funding vehicle for the allocation of net premiums under single premium variable life and variable universal life insurance 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.

The Company is required to maintain assets in the Account with a total fair value 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.

Additional assets are held in the Company’s general account to cover the contingency that the guaranteed minimum death benefit might exceed the death benefit which would have been payable in the absence of such guarantee.

Each sub-account that invests in Portfolios of the John Hancock Trust may offer two classes of units to fund the Contracts issued by the Company. These classes, Series 1 and Series 0 represent an interest in the same Trust Portfolio but in different share classes of that Portfolio. Series 1 represents interests in Series 1 shares of the Portfolio and Series 0 represents interests in Series NAV shares of the Trust’s Portfolio. Series 1 and Series NAV shares differ in the level of 12b-1 fees and other expenses assessed against the Portfolio’s assets.

75

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

Notes to Financial Statements (continued)

The following sub-accounts of the Account were terminated as investment options and the funds were transferred to existing sub-account funds as follows:

Terminated	Transferred To	Effective Date
Special Value Trust	Small Cap Value Trust	November 12, 2007
Strategic Opportunities Trust	Large Cap Trust	April 30, 2007

As the result of portfolio changes, the following sub-account of the Account was renamed as follows:

Previous Name	New Name	Effective Date
Bond Index Trust B	Total Bond Market Trust B	October 1, 2007

The following sub-accounts of the Account were commenced as an investment option:

New Fund	Effective Date
Emerging Markets Value Trust	April 30, 2007
Mid Cap Intersection Trust	April 30, 2007

Where a fund has two series, the changes noted above apply to both Series 0 and Series 1.

2. Significant Accounting Policies

Investments of each sub-account consist of shares in the respective portfolios of the Trusts. These shares are carried at fair value which is calculated using the fair value of the investment securities underlying each Trust portfolio. Transactions are recorded on the trade date. Income from dividends is recorded on the ex-dividend date. Realized gains and losses on the sale of investments are computed on the basis of the specifically identified cost of the investment sold.

In addition to the Account, a contract holder may also allocate funds to the fixed account contained within 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 Act. Net interfund transfers include interfund transfers between separate and general accounts.

The operations of the Account are included in the federal income tax return of the Company, which is taxed as a life Insurance Company under the provisions of the Internal Revenue Code (the "Code"). Under the current provisions of the Code, the Company does not expect to incur federal income taxes on the earnings of the Account to the extent the earnings are credited under the Contracts. Based on this, no charge is being made currently to the Account for federal income taxes. The Company will periodically reassess this position, taking into account changes in the tax law. Such a charge may be made in future years for any federal income taxes that would be attributable to the Contracts.

76

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

Notes to Financial Statements (continued)

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement No. 157, Fair Value Measurement (SFAS 157), which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. Management believes the adoption of SFAS 157 will not have a material impact on the Account’s financial position or results of operations.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported herein. Actual results could differ from those estimates.

3. Contract Charges

The Company deducts certain charges from gross premiums before placing the remaining net premiums in the sub-account. In the event of a surrender by the contract holder, surrender charges may be levied by the Company against the contract value at the time of termination to cover sales and administrative expenses associated with underwriting and issuing the Contract. Additionally, each month a deduction consisting of an administrative charge, a charge for cost of insurance, and charges for supplementary benefits is deducted from the contract value. Contract charges are paid through the redemption of sub-account units and are reflected as terminations.

4. Purchases and Sales of Investments

The cost of purchases and proceeds from sales of investments for the year ended December 31, 2007 were as follows:

	Purchases		Sales
Sub-accounts:
500 Index Trust B Series 0	$	18,815,510	$	9,298,596
500 Index Trust Series 1		5,144,392		6,823,112
Active Bond Trust Series 0		800,627		126,771
Active Bond Trust Series 1		1,940,378		1,538,311
All Cap Core Trust Series 0		312,752		105,474
All Cap Core Trust Series 1		1,402,504		3,360,140
All Cap Growth Trust Series 0		430,272		332,951
All Cap Growth Trust Series 1		751,924		2,994,270
All Cap Value Trust Series 0		1,044,656		175,433
All Cap Value Trust Series 1		1,989,775		748,418
American Blue Chip Income and Growth Trust Series 1		4,748,906		1,673,833
American Bond Trust Series 1		8,513,464		5,668,578
American Growth Trust Series 1		20,251,357		6,015,788
American Growth-Income Trust Series 1		7,803,036		1,485,014
American International Trust Series 1		17,054,905		6,202,241
Blue Chip Growth Trust Series 0		2,636,817		439,174
Blue Chip Growth Trust Series 1		5,518,503		5,612,857
Capital Appreciation Trust Series 0		1,017,641		469,240

77

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

Notes to Financial Statements (continued)

	Purchases		Sales
Sub-accounts:
Capital Appreciation Trust Series 1	$	1,292,609	$	2,413,143
Classic Value Trust Series 0		1,985,948		332,366
Classic Value Trust Series 1		2,263,705		789,838
Core Bond Trust Series 0		71,696		14,214
Core Bond Trust Series 1		101,725		84,755
Core Equity Trust Series 0		463,340		121,459
Core Equity Trust Series 1		673,320		197,913
Dynamic Growth Trust Series 0		263,258		87,049
Dynamic Growth Trust Series 1		1,297,010		1,135,575
Emerging Growth Trust Series 0		559,604		81,016
Emerging Growth Trust Series 1		1,220,876		1,194,806
Emerging Markets Value Trust Series 0		487,628		75,782
Emerging Markets Value Trust Series 1		4,729,180		3,762,322
Emerging Small Company Trust Series 0		1,118,696		143,219
Emerging Small Company Trust Series 1		12,416,108		6,662,795
Equity-Income Trust Series 0		6,292,489		1,182,207
Equity-Income Trust Series 1		13,071,393		7,592,118
Financial Services Trust Series 0		863,480		167,702
Financial Services Trust Series 1		3,263,817		4,199,763
Fundamental Value Trust Series 0		2,154,558		667,604
Fundamental Value Trust Series 1		2,416,590		1,604,994
Global Allocation Trust Series 0		1,871,366		241,663
Global Allocation Trust Series 1		1,650,690		155,477
Global Bond Trust Series 0		2,702,686		835,447
Global Bond Trust Series 1		3,353,302		1,080,211
Global Trust Series 0		2,318,459		648,482
Global Trust Series 1		2,288,318		2,009,342
Growth & Income Trust Series 0		3,272,862		389,084
Health Sciences Trust Series 0		1,308,244		215,836
Health Sciences Trust Series 1		5,916,604		3,225,622
High Yield Trust Series 0		1,175,498		344,142
High Yield Trust Series 1		10,945,176		13,419,762
Income & Value Trust Series 0		649,251		68,432
Income & Value Trust Series 1		4,434,950		4,950,790
International Core Trust Series 0		2,998,834		735,725
International Core Trust Series 1		8,188,703		6,278,406
International Equity Index Trust A Series 1		3,179,283		1,346,581
International Equity Index Trust B Series 0		8,989,806		4,162,588
International Opportunities Trust Series 0		2,217,725		163,382
International Opportunities Trust Series 1		9,077,493		5,709,725
International Small Cap Trust Series 0		3,359,562		527,052
International Small Cap Trust Series 1		16,136,206		11,697,572
International Value Trust Series 0		4,326,004		885,145
International Value Trust Series 1		13,002,299		9,757,084
Investment Quality Bond Trust Series 0		935,316		133,572
Investment Quality Bond Trust Series 1		3,306,584		2,630,536
Large Cap Trust Series 0		931,193		64,434
Large Cap Trust Series 1		28,223,694		4,508,507
Large Cap Value Trust Series 0		5,226,471		1,156,329
Large Cap Value Trust Series 1		5,274,466		1,541,730

78

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

Notes to Financial Statements (continued)

	Purchases		Sales
Sub-accounts:
Lifestyle Aggressive Trust Series 0	$	20,567,621	$	1,751,890
Lifestyle Aggressive Trust Series 1		6,052,981		2,893,806
Lifestyle Balanced Trust Series 0		39,471,626		5,050,962
Lifestyle Balanced Trust Series 1		19,853,316		7,521,026
Lifestyle Conservative Trust Series 0		1,643,705		576,891
Lifestyle Conservative Trust Series 1		2,354,474		1,328,217
Lifestyle Growth Trust Series 0		90,783,266		8,361,233
Lifestyle Growth Trust Series 1		23,083,676		7,694,305
Lifestyle Moderate Trust Series 0		4,875,233		793,688
Lifestyle Moderate Trust Series 1		3,665,246		2,643,566
Managed Trust Series 0		1,435,923		651,203
Mid Cap Index Trust Series 0		3,183,720		401,959
Mid Cap Index Trust Series 1		3,426,085		2,461,687
Mid Cap Intersection Trust Series 0		15,178		535
Mid Cap Stock Trust Series 0		3,319,911		502,930
Mid Cap Stock Trust Series 1		13,012,155		5,825,790
Mid Cap Value Trust Series 0		3,550,384		693,652
Mid Cap Value Trust Series 1		13,202,380		6,127,833
Mid Value Trust Series 0		994,100		142,969
Money Market Trust B Series 0		97,118,167		73,954,249
Money Market Trust Series 1		59,990,694		60,021,170
Natural Resources Trust Series 0		5,026,244		663,075
Natural Resources Trust Series 1		15,567,193		5,193,349
Overseas Equity Trust Series 0		978,577		336,119
Pacific Rim Trust Series 0		2,567,848		917,081
Pacific Rim Trust Series 1		7,643,210		5,669,408
Quantitative All Cap Trust Series 0		444,469		65,412
Quantitative All Cap Trust Series 1		379,437		150,449
Quantitative Mid Cap Trust Series 0		108,970		160,878
Quantitative Mid Cap Trust Series 1		1,270,449		1,466,525
Quantitative Value Trust Series 0		113,557		42,522
Quantitative Value Trust Series 1		213,772		252,904
Real Estate Securities Trust Series 0		6,087,085		1,471,098
Real Estate Securities Trust Series 1		27,549,953		12,264,353
Real Return Bond Trust Series 0		859,883		383,475
Real Return Bond Trust Series 1		2,127,697		769,566
Science & Technology Trust Series 0		986,105		248,013
Science & Technology Trust Series 1		7,195,348		6,173,092
Short-Term Bond Trust Series 0		583,894		307,252
Small Cap Growth Trust Series 0		951,299		104,837
Small Cap Index Trust Series 0		2,295,311		289,391
Small Cap Index Trust Series 1		2,560,463		1,533,311
Small Cap Opportunities Trust Series 0		546,821		339,052
Small Cap Opportunities Trust Series 1		3,766,054		4,186,683
Small Cap Trust Series 0		401,400		48,700
Small Cap Trust Series 1		1,795,796		2,458,931
Small Cap Value Trust Series 0		2,540,897		435,138
Small Cap Value Trust Series 1		815,602		13,494
Small Company Trust Series 0		2,239		397
Small Company Trust Series 1		1,952,240		1,679,407

79

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

Notes to Financial Statements (continued)

	Purchases		Sales
Sub-accounts:
Small Company Value Trust Series 0	$	3,081,091	$	367,767
Small Company Value Trust Series 1		7,911,702		6,124,343
Special Value Trust Series 0		135,408		134,660
Special Value Trust Series 1		563,034		783,517
Strategic Bond Trust Series 0		1,241,475		244,662
Strategic Bond Trust Series 1		2,938,955		1,641,950
Strategic Income Trust Series 0		1,736,818		595,703
Strategic Income Trust Series 1		601,896		166,642
Strategic Opportunities Trust Series 0		57,862		469,437
Strategic Opportunities Trust Series 1		288,867		25,091,919
Total Bond Market Trust B Series 0		2,631,207		465,303
Total Return Trust Series 0		3,674,403		812,165
Total Return Trust Series 1		4,769,319		3,971,419
Total Stock Market Index Trust Series 0		1,662,854		770,324
Total Stock Market Index Trust Series 1		1,427,944		581,750
U.S. Core Trust Series 0		400,775		79,392
U.S. Core Trust Series 1		5,953,599		7,963,650
U.S. Global Leaders Growth Trust Series 0		270,907		55,525
U.S. Global Leaders Growth Trust Series 1		345,965		306,287
U.S. Government Securities Trust Series 0		745,064		329,479
U.S. Government Securities Trust Series 1		4,986,126		3,258,809
U.S. High Yield Bond Trust Series 0		414,591		44,604
U.S. High Yield Bond Trust Series 1		726,160		963,429
U.S. Large Cap Trust Series 0		1,626,077		238,651
U.S. Large Cap Trust Series 1		3,841,599		8,769,670
Utilities Trust Series 0		2,265,880		600,446
Utilities Trust Series 1		10,360,128		10,796,075
Value Trust Series 0		2,478,217		505,325
Value Trust Series 1		8,813,349		5,399,908
All Asset Portfolio Series 0		94,342		12,161
All Asset Portfolio Series 1		298,404		173,161
Brandes International Equity Trust		1,480,213		62,237
Business Opportunity Value Trust		811,095		57,672
CSI Equity Trust		1,445,884		55,795
Frontier Capital Appreciation Trust		582,494		57,675
Turner Core Growth Trust		822,479		54,061
	$	904,863,331	$	483,492,545

5. Transaction with Affiliates

John Hancock Distributors LLC, a registered broker-dealer and wholly owned subsidiary of JHUSA, acts as the principal 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 who are also authorized as variable life insurance agents under applicable state insurance laws. Registered representatives are compensated on a commission basis.

80

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

Notes to Financial Statements (continued)

JHUSA has a formal service agreement with its ultimate parent company, MFC, which can be terminated by either party upon two months’ notice. Under this Agreement, JHUSA pays for legal, actuarial, investment and certain other administrative services.

The majority of the investments held by the Account are invested in the Trust (Note 1).

6. Diversification Requirements

The Internal Revenue Service has issued regulations under Section 817(h) of the Code. Under the provisions of Section 817(h) of the Code, a variable life contract will not be treated as a life contract for federal tax purposes for any period for which the investments of the Separate 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 harbour test or diversification requirements set forth in regulations issued by the Secretary of Treasury. The Company believes that the Account satisfies the current requirements of the regulations, and it intends that the Account will continue to meet such requirements.

81

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	500 Index Trust B Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	3,377,590		3,985,641		—
Units issued	656,369		274,420		4,349,389
Units redeemed	(514,632	)	(882,471	)	(363,748	)
Units, end of period	3,519,327		3,377,590		3,985,641
Unit value, end of period $	26.53		15.76 to 25.20		13.63 to 21.81
Assets, end of period $	65,187,967		54,754,038		54,369,746
Investment income ratio*	3.00	%	1.14	%	0.00	%
Total return, lowest to highest**	1.47% to 5.25	%	13.10% to 15.57	%	2.90% to 9.07	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	500 Index Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	3,238,434		3,760,865		3,558,971		2,723,784		1,830,318
Units issued	307,967		558,512		638,838		1,039,943		1,354,207
Units redeemed	(504,204	)	(1,080,943	)	(436,944	)	(204,756	)	(460,741	)
Units, end of period	3,042,197		3,238,434		3,760,865		3,558,971		2,723,784
Unit value, end of period $	13.66		13.02		11.30		10.83		9.82
Assets, end of period $	41,542,238		42,156,390		42,477,407		38,544,765		26,754,612
Investment income ratio*	2.22	%	0.94	%	1.50	%	0.88	%	0.82	%
Total return**	4.90	%	15.27	%	4.29	%	10.26	%	28.00	%

82

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Active Bond Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	4,172		—
Units issued	17,127		4,810
Units redeemed	(2,881	)	(638	)
Units, end of period	18,418		4,172
Unit value, end of period $	44.78		43.05
Assets, end of period $	824,734		179,570
Investment income ratio*	10.09	%	0.52	%
Total return, lowest to highest**	2.87% to 4.03	%	4.44% to 5.10	%

(a) Fund available in prior year but no activity.

	Sub-Account
	Active Bond Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	828,866		906,616		—
Units issued	72,230		72,511		1,281,945
Units redeemed	(114,255	)	(150,261	)	(375,329	)
Units, end of period	786,841		828,866		906,616
Unit value, end of period $	13.80		13.26		12.70
Assets, end of period $	10,855,803		10,990,886		11,513,291
Investment income ratio*	8.81	%	2.77	%	0.00	%
Total return**	4.05	%	4.42	%	1.59	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

83

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	All Asset Portfolio Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	2,781		135		—
Units issued	7,717		3,145		135
Units redeemed	(1,073	)	(499	)	—
Units, end of period	9,425		2,781		135
Unit value, end of period $	11.84		10.97		10.51
Assets, end of period $	111,631		30,493		1,420
Investment income ratio*	8.85	%	7.25	%	12.18	%
Total return, lowest to highest**	5.74% to 8.00	%	3.40% to 5.33	%	1.92	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	All Asset Portfolio Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04 (d)
Units, beginning of period	79,490		57,862		6,742		—
Units issued	12,737		35,431		61,430		6,847
Units redeemed	(10,885	)	(13,803	)	(10,310	)	(105	)
Units, end of period	81,342		79,490		57,862		6,742
Unit value, end of period $	16.72		15.48		14.83		14.00
Assets, end of period $	1,359,873		1,230,463		858,236		94,388
Investment income ratio*	7.29	%	5.55	%	4.96	%	6.59	%
Total return**	8.00	%	4.36	%	5.95	%	12.00	%

(d) Reflects the period from commencement of operations on May 3, 2004 through December 31, 2004.

84

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	All Cap Core Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	11,893		—
Units issued	22,754		12,575
Units redeemed	(7,828	)	(682	)
Units, end of period	26,819		11,893
Unit value, end of period $	13.34		12.98
Assets, end of period $	357,657		154,432
Investment income ratio*	1.58	%	0.13	%
Total return, lowest to highest**	0.17% to 2.70	%	10.72% to 14.77	%

(a) Fund available in prior year but no activity.

	Sub-Account
	All Cap Core Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	743,412		828,823		983,111		1,000,982		975,021
Units issued	54,025		149,820		35,817		98,257		176,770
Units redeemed	(153,918	)	(235,231	)	(190,105	)	(116,128	)	(150,809	)
Units, end of period	643,519		743,412		828,823		983,111		1,000,982
Unit value, end of period $	21.40		20.85		18.17		16.66		14.32
Assets, end of period $	13,771,188		15,496,358		15,056,619		16,373,327		14,330,968
Investment income ratio*	1.41	%	0.68	%	0.79	%	0.43	%	0.00	%
Total return**	2.66	%	14.75	%	9.08	%	16.33	%	31.55	%

85

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	All Cap Growth Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	15,291		—
Units issued	32,831		17,562
Units redeemed	(25,091	)	(2,271	)
Units, end of period	23,031		15,291
Unit value, end of period $	13.92		12.42
Assets, end of period $	320,583		189,900
Investment income ratio*	0.16	%	0.00	%
Total return, lowest to highest**	4.36% to 12.08	%	2.94% to 6.63	%

(a) Fund available in prior year but no activity.

	Sub-Account
	All Cap Growth Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	706,258		746,548		813,617		892,043		829,943
Units issued	29,987		64,128		46,378		63,325		202,308
Units redeemed	(120,670	)	(104,418	)	(113,447	)	(141,751	)	(140,208	)
Units, end of period	615,575		706,258		746,548		813,617		892,043
Unit value, end of period $	26.10		23.29		21.85		20.05		18.82
Assets, end of period $	16,066,423		16,449,878		16,315,444		16,314,369		16,791,502
Investment income ratio*	0.05	%	0.00	%	0.00	%	0.00	%	0.00	%
Total return**	12.06	%	6.58	%	8.98	%	6.52	%	29.23	%

86

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	All Cap Value Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	13,493		—
Units issued	54,729		17,209
Units redeemed	(12,940	)	(3,716	)
Units, end of period	55,282		13,493
Unit value, end of period $	13.74		12.64
Assets, end of period $	759,424		170,565
Investment income ratio*	2.38	%	0.01	%
Total return, lowest to highest**	2.47% to 8.68	%	6.65% to 13.82	%

(a) Fund available in prior year but no activity.

	Sub-Account
	All Cap Value Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	200,061		190,173		348,168		285,504		82,277
Units issued	24,805		47,919		59,250		336,402		300,362
Units redeemed	(40,209	)	(38,031	)	(217,245	)	(273,738	)	(97,135	)
Units, end of period	184,657		200,061		190,173		348,168		285,504
Unit value, end of period $	19.02		17.55		15.44		14.60		12.59
Assets, end of period $	3,511,406		3,511,855		2,935,720		5,084,421		3,595,544
Investment income ratio*	1.75	%	0.90	%	0.56	%	0.40	%	0.05	%
Total return**	8.32	%	13.71	%	5.71	%	15.96	%	38.36	%

87

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	American Blue Chip Income and Growth Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03 (s)
Units, beginning of period	358,100		244,289		179,279		75,766		—
Units issued	195,210		132,663		80,849		110,409		76,675
Units redeemed	(87,740	)	(18,852	)	(15,839	)	(6,896	)	(909	)
Units, end of period	465,570		358,100		244,289		179,279		75,766
Unit value, end of period $	13.21 to 19.72		12.99 to 19.40		16.58		15.53		14.21
Assets, end of period $	8,273,820		6,749,187		4,051,366		2,784,837		1,076,622
Investment income ratio*	2.50	%	0.50	%	0.27	%	0.00	%	0.00	%
Total return, lowest to highest**	(2.84)% to 1.65	%	13.18% to 16.99	%	6.76	%	9.32	%	13.68	%

(s) Reflects the period from commencement of operations on July 9, 2003 through December 31, 2003.

	Sub-Account
	American Bond Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (r)
Units, beginning of period	87,501		3,980		—
Units issued	643,737		87,757		3,996
Units redeemed	(416,777	)	(4,236	)	(16	)
Units, end of period	314,461		87,501		3,980
Unit value, end of period $	11.10 to 13.87		10.78 to 13.47		10.11 to 12.64
Assets, end of period $	3,942,230		1,123,885		50,313
Investment income ratio*	4.22	%	0.00	%	0.00	%
Total return, lowest to highest**	2.36% to 2.96	%	5.39% to 6.57	%	1.13	%

(r) Reflects the period from commencement of operations on October 31, 2005 through December 31, 2005.

88

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	American Growth Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03 (s)
Units, beginning of period	1,738,879		1,143,247		545,616		137,745		—
Units issued	892,176		700,598		673,912		427,410		141,286
Units redeemed	(288,071	)	(104,966	)	(76,281	)	(19,539	)	(3,541	)
Units, end of period	2,342,984		1,738,879		1,143,247		545,616		137,745
Unit value, end of period $	14.71		13.15 to 19.79		11.97 to 18.02		15.57		13.89
Assets, end of period $	46,630,648		33,139,292		20,601,851		8,493,287		1,912,823
Investment income ratio*	1.21	%	0.29	%	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	3.36% to 11.93	%	5.98% to 9.80	%	8.06% to 15.79	%	12.10	%	11.09	%

(s) Reflects the period from commencement of operations on July 9, 2003 through December 31, 2003.

	Sub-Account
	American Growth-Income Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03 (s)
Units, beginning of period	679,810		521,355		449,119		82,521		—
Units issued	441,217		216,940		149,136		380,820		82,865
Units redeemed	(80,746	)	(58,485	)	(76,900	)	(14,222	)	(344	)
Units, end of period	1,040,281		679,810		521,355		449,119		82,521
Unit value, end of period $	13.20 to 19.70		12.61 to 18.83		10.99 to 16.40		15.56		14.15
Assets, end of period $	18,035,767		12,406,440		8,548,154		6,986,508		1,167,422
Investment income ratio*	2.89	%	1.04	%	0.45	%	0.27	%	0.00	%
Total return, lowest to highest**	(0.67)% to 4.64	%	11.61% to 14.80	%	2.77% to 5.44	%	9.96	%	13.18	%

(s) Reflects the period from commencement of operations on July 9, 2003 through December 31, 2003.

89

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	American International Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03 (s)
Units, beginning of period	953,997		691,580		464,968		162,566		—
Units issued	613,619		465,773		275,981		508,234		1,310,329
Units redeemed	(231,849	)	(203,356	)	(49,369	)	(205,832	)	(1,147,763	)
Units, end of period	1,335,767		953,997		691,580		464,968		162,566
Unit value, end of period $	17.60 to 30.98		14.72 to 25.91		12.41 to 21.86		18.05		15.19
Assets, end of period $	35,473,301		22,969,248		15,109,849		8,393,946		2,468,646
Investment income ratio*	2.31	%	0.86	%	0.64	%	0.48	%	0.00	%
Total return, lowest to highest**	9.35% to 19.58	%	10.32% to 18.54	%	12.31% to 21.07	%	18.88	%	21.48	%

(s) Reflects the period from commencement of operations on July 9, 2003 through December 31, 2003.

	Sub-Account
	Blue Chip Growth Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	7,642		29		—
Units issued	39,576		9,536		29
Units redeemed	(6,425	)	(1,923	)	—
Units, end of period	40,793		7,642		29
Unit value, end of period $	69.05		61.21		55.85
Assets, end of period $	2,816,663		467,688		1,594
Investment income ratio*	0.81	%	0.03	%	0.00	%
Total return, lowest to highest**	5.35% to 12.81	%	7.94% to 10.44	%	4.67	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

90

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Blue Chip Growth Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	1,513,575		1,703,650		1,815,010		1,870,417		1,921,586
Units issued	193,922		77,248		152,090		179,087		255,924
Units redeemed	(206,265	)	(267,323	)	(263,450	)	(234,494	)	(307,093	)
Units, end of period	1,501,232		1,513,575		1,703,650		1,815,010		1,870,417
Unit value, end of period $	28.46		25.24		23.03		21.81		20.01
Assets, end of period $	42,725,551		38,206,324		39,243,002		39,592,296		37,420,129
Investment income ratio*	0.72	%	0.20	%	0.40	%	0.11	%	0.04	%
Total return**	12.75	%	9.59	%	5.60	%	9.03	%	29.17	%

	Sub-Account
	Brandes International Equity Trust
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	438		—
Units issued	37,706		892
Units redeemed	(1,696	)	(454	)
Units, end of period	36,448		438
Unit value, end of period $	37.17		34.41
Assets, end of period $	1,354,678		15,086
Investment income ratio*	3.86	%	3.65	%
Total return, lowest to highest**	0.84% to 8.01	%	14.79% to 26.78	%

(a) Fund available in prior year but no activity.

91

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Business Opportunity Value Trust
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	1,426		—
Units issued	48,372		2,108
Units redeemed	(3,525	)	(682	)
Units, end of period	46,273		1,426
Unit value, end of period $	16.15		15.32
Assets, end of period $	747,303		21,842
Investment income ratio*	1.25	%	1.63	%
Total return, lowest to highest**	0.63% to 5.44	%	11.94% to 13.89	%

(a) Fund available in prior year but no activity.

	Sub-Account
	Capital Appreciation Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	44,224		53		—
Units issued	76,983		52,244		53
Units redeemed	(35,695	)	(8,073	)	—
Units, end of period	85,512		44,224		53
Unit value, end of period $	13.89		12.43		12.15
Assets, end of period $	1,187,598		549,868		640
Investment income ratio*	0.46	%	0.00	%	0.00	%
Total return, lowest to highest**	7.66% to 11.70	%	0.97% to 7.46	%	8.44	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

92

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Capital Appreciation Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	1,713,529		427,964		215,907		137,603		74,887
Units issued	83,337		1,757,436		387,465		104,968		93,279
Units redeemed	(179,895	)	(471,871	)	(175,408	)	(26,664	)	(30,563	)
Units, end of period	1,616,971		1,713,529		427,964		215,907		137,603
Unit value, end of period $	14.18		12.71		12.43		10.90		9.97
Assets, end of period $	22,931,837		21,773,547		5,317,782		2,353,509		1,371,982
Investment income ratio*	0.29	%	0.00	%	0.00	%	0.00	%	0.00	%
Total return**	11.61	%	2.26	%	13.99	%	9.33	%	29.47	%

	Sub-Account
	Classic Value Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	35,333		155		—
Units issued	135,655		37,458		160
Units redeemed	(25,522	)	(2,280	)	(5	)
Units, end of period	145,466		35,333		155
Unit value, end of period $	11.44		13.09		11.27
Assets, end of period $	1,664,561		462,509		1,747
Investment income ratio*	2.74	%	2.65	%	3.70	%
Total return, lowest to highest**	(12.58)% to (12.50)	%	13.46% to 16.14	%	4.11	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

93

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Classic Value Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04 (d)
Units, beginning of period	590,103		367,626		14,835		—
Units issued	53,006		376,498		461,900		18,133
Units redeemed	(44,518	)	(154,021	)	(109,109	)	(3,298	)
Units, end of period	598,591		590,103		367,626		14,835
Unit value, end of period $	15.44		17.67		15.22		13.91
Assets, end of period $	9,243,380		10,424,108		5,596,604		206,397
Investment income ratio*	1.61	%	1.06	%	2.63	%	0.68	%
Total return**	(12.58	)%	16.04	%	9.42	%	11.31	%

(d) Reflects the period from commencement of operations on May 3, 2004 through December 31, 2004.

	Sub-Account
	Core Bond Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	1,619		—
Units issued	6,309		1,819
Units redeemed	(1,320	)	(200	)
Units, end of period	6,608		1,619
Unit value, end of period $	11.15		10.48
Assets, end of period $	73,690		16,975
Investment income ratio*	8.63	%	2.71	%
Total return, lowest to highest**	4.77% to 6.36	%	3.76% to 4.71	%

(a) Fund available in prior year but no activity.

94

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Core Bond Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	6,596		1,342		—
Units issued	7,031		6,046		1,360
Units redeemed	(6,226	)	(792	)	(18	)
Units, end of period	7,401		6,596		1,342
Unit value, end of period $	13.93		13.11		12.63
Assets, end of period $	103,082		86,467		16,947
Investment income ratio*	6.90	%	3.31	%	0.00	%
Total return**	6.27	%	3.79	%	1.04	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Core Equity Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	6,970		—
Units issued	35,758		7,761
Units redeemed	(9,909	)	(791	)
Units, end of period	32,819		6,970
Unit value, end of period $	11.59		12.31
Assets, end of period $	380,474		85,817
Investment income ratio*	0.05	%	0.00	%
Total return, lowest to highest**	(6.41)% to (5.85)	%	6.73% to 12.62	%

(a) Fund available in prior year but no activity.

95

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Core Equity Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04 (d)
Units, beginning of period	77,672		60,991		4,828		—
Units issued	34,366		37,117		57,288		4,889
Units redeemed	(12,140	)	(20,436	)	(1,125	)	(61	)
Units, end of period	99,898		77,672		60,991		4,828
Unit value, end of period $	15.14		16.08		15.07		14.23
Assets, end of period $	1,512,250		1,249,336		919,134		68,707
Investment income ratio*	0.00	%	0.00	%	0.00	%	0.00	%
Total return**	(5.89	)%	6.73	%	5.90	%	13.84	%

(d) Reflects the period from commencement of operations on May 3, 2004 through December 31, 2004.

	Sub-Account
	CSI Equity Trust
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	25,653		—
Units issued	70,933		26,545
Units redeemed	(3,101	)	(892	)
Units, end of period	93,485		25,653
Unit value, end of period $	18.48		17.02
Assets, end of period $	1,727,702		436,518
Investment income ratio*	1.50	%	1.71	%
Total return, lowest to highest**	4.87% to 8.61	%	16.88% to 17.90	%

(a) Fund available in prior year but no activity.

96

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Dynamic Growth Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	4,413		2		—
Units issued	18,549		4,735		2
Units redeemed	(6,242	)	(324	)	—
Units, end of period	16,720		4,413		2
Unit value, end of period $	14.19		12.96		11.70
Assets, end of period $	237,176		57,198		19
Investment income ratio*	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	1.69% to 9.44	%	3.07% to 10.83	%	4.01	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Dynamic Growth Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	907,896		1,392,191		1,148,353		1,137,436		465,959
Units issued	203,631		177,716		511,560		138,220		1,016,653
Units redeemed	(174,540	)	(662,011	)	(267,722	)	(127,303	)	(345,176	)
Units, end of period	936,987		907,896		1,392,191		1,148,353		1,137,436
Unit value, end of period $	6.61		6.05		5.45		4.85		4.41
Assets, end of period $	6,195,207		5,493,471		7,587,284		5,568,057		5,013,740
Investment income ratio*	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Total return**	9.27	%	11.02	%	12.40	%	10.01	%	29.04	%

97

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Emerging Growth Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	11,398		—
Units issued	33,099		12,581
Units redeemed	(5,859	)	(1,183	)
Units, end of period	38,638		11,398
Unit value, end of period $	13.88		13.34
Assets, end of period $	536,174		152,055
Investment income ratio*	0.24	%	0.00	%
Total return, lowest to highest**	0.36% to 4.02	%	2.01% to 11.59	%

(a) Fund available in prior year but no activity.

	Sub-Account
	Emerging Growth Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03 (t)
Units, beginning of period	61,315		72,642		35,131		14,999		—
Units issued	38,789		29,567		73,530		26,543		17,815
Units redeemed	(53,609	)	(40,894	)	(36,019	)	(6,411	)	(2,816	)
Units, end of period	46,495		61,315		72,642		35,131		14,999
Unit value, end of period $	21.82		21.00		18.82		17.48		16.35
Assets, end of period $	1,014,458		1,287,823		1,367,168		614,154		245,303
Investment income ratio*	0.09	%	0.00	%	0.00	%	0.00	%	0.00	%
Total return**	3.88	%	11.59	%	7.65	%	6.90	%	30.84	%

(t) Reflects the period from commencement of operations on May 5, 2003 through December 31, 2003.

98

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Emerging Markets Value Trust Series 0
	Year Ended Dec. 31/07 (h)
Units, beginning of period	—
Units issued	40,759
Units redeemed	(6,250	)
Units, end of period	34,509
Unit value, end of period $	11.99
Assets, end of period $	413,901
Investment income ratio*	1.63	%
Total return, lowest to highest**	7.16% to 19.94	%

(h) Reflects the period of commencement of operations on April 30, 2007 through December 31, 2007.

	Sub-Account
	Emerging Markets Value Trust Series 1
	Year Ended Dec. 31/07 (h)
Units, beginning of period	—
Units issued	323,440
Units redeemed	(252,782	)
Units, end of period	70,658
Unit value, end of period $	15.00
Assets, end of period $	1,059,804
Investment income ratio*	1.19	%
Total return, lowest to highest**	19.99	%

(h) Reflects the period of commencement of operations on April 30, 2007 through December 31, 2007.

99

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Emerging Small Company Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	27,387		176		—
Units issued	75,648		30,808		176
Units redeemed	(11,181	)	(3,597	)	—
Units, end of period	91,854		27,387		176
Unit value, end of period $	12.83		11.87		11.59
Assets, end of period $	1,178,859		325,215		2,044
Investment income ratio*	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	0.05% to 8.08	%	(5.35)% to 2.44	%	4.14	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Emerging Small Company Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	755,137		833,633		934,063		1,067,807		1,164,612
Units issued	8,589		27,379		23,031		35,210		75,601
Units redeemed	(93,059	)	(105,875	)	(123,461	)	(168,954	)	(172,406	)
Units, end of period	670,667		755,137		833,633		934,063		1,067,807
Unit value, end of period $	71.43		66.12		64.56		61.46		55.11
Assets, end of period $	47,910,351		49,927,098		53,821,139		57,409,523		58,849,795
Investment income ratio*	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Total return**	8.05	%	2.41	%	5.04	%	11.52	%	39.73	%

100

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Equity-Income Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	44,286		1,467		—
Units issued	185,002		46,313		1,469
Units redeemed	(38,959	)	(3,494	)	(2	)
Units, end of period	190,329		44,286		1,467
Unit value, end of period $	30.29		29.30		24.61
Assets, end of period $	5,764,993		1,297,432		36,113
Investment income ratio*	3.24	%	0.68	%	0.00	%
Total return, lowest to highest**	(0.41)% to 3.39	%	14.00% to 19.05	%	1.57	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Equity-Income Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	2,003,642		2,132,819		2,412,742		2,332,214		2,036,266
Units issued	147,768		178,419		246,902		284,993		492,879
Units redeemed	(246,017	)	(307,596	)	(526,825	)	(204,465	)	(196,931	)
Units, end of period	1,905,393		2,003,642		2,132,819		2,412,742		2,332,214
Unit value, end of period $	30.44		29.45		24.74		23.81		20.74
Assets, end of period $	57,992,370		59,007,712		52,773,756		57,447,214		48,366,495
Investment income ratio*	2.88	%	1.51	%	1.27	%	1.24	%	1.40	%
Total return**	3.35	%	19.02	%	3.92	%	14.81	%	25.57	%

101

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Financial Services Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	12,570		21		—
Units issued	32,535		13,168		23
Units redeemed	(7,485	)	(619	)	(2	)
Units, end of period	37,620		12,570		21
Unit value, end of period $	21.29		22.83		18.53
Assets, end of period $	800,870		286,925		385
Investment income ratio*	1.55	%	0.01	%	0.00	%
Total return, lowest to highest**	(6.73)% to (3.84)	%	19.86% to 23.16	%	8.43	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Financial Services Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	260,203		186,864		163,128		118,024		60,661
Units issued	145,683		205,741		64,532		60,023		75,287
Units redeemed	(226,136	)	(132,402	)	(40,796	)	(14,919	)	(17,924	)
Units, end of period	179,750		260,203		186,864		163,128		118,024
Unit value, end of period $	17.74		19.04		15.46		14.09		12.76
Assets, end of period $	3,188,630		4,953,510		2,889,405		2,297,778		1,506,136
Investment income ratio*	1.17	%	0.28	%	0.38	%	0.34	%	0.17	%
Total return**	(6.81	)%	23.11	%	9.78	%	10.38	%	33.58	%

102

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Frontier Capital Appreciation Trust
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	249		—
Units issued	12,492		271
Units redeemed	(1,309	)	(22	)
Units, end of period	11,432		249
Unit value, end of period $	45.60		40.75
Assets, end of period $	521,298		10,122
Investment income ratio*	0.00	%	0.00	%
Total return, lowest to highest**	2.22% to 11.92	%	6.09% to 16.35	%

(a) Fund available in prior year but no activity.

	Sub-Account
	Fundamental Value Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	115,334		141		—
Units issued	153,127		124,158		141
Units redeemed	(51,091	)	(8,965	)	—
Units, end of period	217,370		115,334		141
Unit value, end of period $	13.20		12.68		11.07
Assets, end of period $	2,869,319		1,462,722		1,557
Investment income ratio*	1.90	%	0.07	%	0.00	%
Total return, lowest to highest**	1.75% to 4.08	%	12.76% to 14.55	%	5.45	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

103

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Fundamental Value Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	843,213		849,648		695,383		590,460		423,266
Units issued	82,479		133,558		220,265		491,439		201,632
Units redeemed	(86,073	)	(139,993	)	(66,000	)	(386,516	)	(34,438	)
Units, end of period	839,619		843,213		849,648		695,383		590,460
Unit value, end of period $	18.50		17.78		15.53		14.27		12.76
Assets, end of period $	15,533,588		14,994,270		13,193,852		9,921,146		7,535,099
Investment income ratio*	1.61	%	0.78	%	0.41	%	0.54	%	0.24	%
Total return**	4.04	%	14.51	%	8.85	%	11.80	%	29.83	%

	Sub-Account
	Global Allocation Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	9,883		71		—
Units issued	131,974		10,770		101
Units redeemed	(18,980	)	(958	)	(30	)
Units, end of period	122,877		9,883		71
Unit value, end of period $	12.93		12.31		10.84
Assets, end of period $	1,589,323		121,671		771
Investment income ratio*	10.45	%	0.24	%	0.00	%
Total return, lowest to highest**	2.47% to 5.06	%	9.71% to 13.58	%	3.65	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

104

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Global Allocation Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	379,029		152,291		132,952		89,002		64,406
Units issued	45,341		261,551		39,049		53,031		30,291
Units redeemed	(10,802	)	(34,813	)	(19,710	)	(9,081	)	(5,695	)
Units, end of period	413,568		379,029		152,291		132,952		89,002
Unit value, end of period $	14.54		13.83		12.18		11.47		10.18
Assets, end of period $	6,011,840		5,240,771		1,855,210		1,525,012		905,583
Investment income ratio*	6.89	%	1.08	%	0.98	%	0.93	%	0.40	%
Total return**	5.14	%	13.50	%	6.20	%	12.73	%	26.43	%

	Sub-Account
	Global Bond Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	17,041		89		—
Units issued	124,717		18,077		89
Units redeemed	(40,549	)	(1,125	)	—
Units, end of period	101,209		17,041		89
Unit value, end of period $	22.37		20.41		19.39
Assets, end of period $	2,264,010		347,795		1,721
Investment income ratio*	8.78	%	0.00	%	0.00	%
Total return, lowest to highest**	7.85% to 9.61	%	1.63% to 5.64	%	(2.91	)%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

105

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Global Bond Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	297,509		322,524		286,806		236,589		157,748
Units issued	133,164		120,068		98,791		107,553		133,285
Units redeemed	(52,452	)	(145,083	)	(63,073	)	(57,336	)	(54,444	)
Units, end of period	378,221		297,509		322,524		286,806		236,589
Unit value, end of period $	22.36		20.39		19.37		20.73		18.80
Assets, end of period $	8,456,390		6,067,380		6,248,309		5,945,240		4,448,611
Investment income ratio*	8.07	%	0.00	%	4.56	%	3.61	%	3.32	%
Total return**	9.63	%	5.27	%	(6.54	)%	10.24	%	15.39	%

	Sub-Account
	Global Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	17,172		521		—
Units issued	156,179		20,726		521
Units redeemed	(46,469	)	(4,075	)	—
Units, end of period	126,882		17,172		521
Unit value, end of period $	13.75		13.57		11.27
Assets, end of period $	1,744,368		233,002		5,867
Investment income ratio*	2.20	%	0.33	%	0.00	%
Total return, lowest to highest**	(1.71)% to 1.32	%	12.88% to 20.42	%	4.59	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

106

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Global Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	616,455		608,573		643,035		666,250		683,601
Units issued	42,055		100,069		31,573		81,135		868,398
Units redeemed	(77,847	)	(92,187	)	(66,035	)	(104,350	)	(885,749	)
Units, end of period	580,663		616,455		608,573		643,035		666,250
Unit value, end of period $	25.52		25.19		20.93		18.90		16.47
Assets, end of period $	14,819,721		15,525,583		12,738,420		12,156,585		10,976,035
Investment income ratio*	2.27	%	1.27	%	1.25	%	1.69	%	0.90	%
Total return**	1.34	%	20.32	%	10.72	%	14.75	%	27.46	%

	Sub-Account
	Growth & Income Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (e)		Year Ended Dec. 31/05 (b)
Units, beginning of period	14,132		538		—
Units issued	35,773		15,640		538
Units redeemed	(4,693	)	(2,046	)	—
Units, end of period	45,212		14,132		538
Unit value, end of period $	82.20		78.98		70.07
Assets, end of period $	3,716,284		1,116,178		37,698
Investment income ratio*	1.91	%	0.14	%	0.00	%
Total return, lowest to highest**	1.54% to 4.07	%	10.92% to 12.72	%	4.78	%

(e) Fund renamed on May 1, 2006. Previously known as Growth & Income Trust II.

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

107

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Health Sciences Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	43,543		19		—
Units issued	66,550		54,129		20
Units redeemed	(13,260	)	(10,605	)	(1	)
Units, end of period	96,833		43,543		19
Unit value, end of period $	17.26		14.66		13.52
Assets, end of period $	1,671,128		638,287		256
Investment income ratio*	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	11.46% to 17.73	%	4.52% to 13.10	%	9.75	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Health Sciences Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	309,378		414,571		289,642		208,392		122,493
Units issued	212,104		132,428		188,126		173,743		243,917
Units redeemed	(154,754	)	(237,621	)	(63,197	)	(92,493	)	(158,018	)
Units, end of period	366,728		309,378		414,571		289,642		208,392
Unit value, end of period $	22.23		18.89		17.43		15.48		13.42
Assets, end of period $	8,152,233		5,844,448		7,226,506		4,482,118		2,796,636
Investment income ratio*	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Total return**	17.67	%	8.37	%	12.64	%	15.31	%	36.22	%

108

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	High Yield Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	17,277		232		—
Units issued	82,542		19,407		240
Units redeemed	(26,067	)	(2,362	)	(8	)
Units, end of period	73,752		17,277		232
Unit value, end of period $	13.03		12.82		11.61
Assets, end of period $	961,063		221,508		2,697
Investment income ratio*	14.21	%	0.42	%	0.00	%
Total return, lowest to highest**	1.64% to 3.36	%	7.71% to 10.48	%	0.79	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	High Yield Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	820,106		900,558		887,651		896,166		666,553
Units issued	465,144		570,917		1,156,583		1,033,024		998,417
Units redeemed	(676,615	)	(651,369	)	(1,143,676	)	(1,041,539	)	(768,804	)
Units, end of period	608,635		820,106		900,558		887,651		896,166
Unit value, end of period $	19.81		19.49		17.65		17.03		15.33
Assets, end of period $	12,054,256		15,981,183		15,900,525		15,113,826		13,739,135
Investment income ratio*	11.78	%	6.72	%	5.02	%	4.85	%	5.63	%
Total return**	1.64	%	10.37	%	3.70	%	11.06	%	24.44	%

109

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Income & Value Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	2,772		59		—
Units issued	48,931		2,848		59
Units redeemed	(5,665	)	(135	)	—
Units, end of period	46,038		2,772		59
Unit value, end of period $	11.93		11.80		10.85
Assets, end of period $	549,317		32,712		644
Investment income ratio*	4.99	%	0.17	%	0.00	%
Total return, lowest to highest**	(1.62)% to 1.11	%	6.71% to 8.77	%	2.71	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Income & Value Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	1,661,476		1,786,282		2,007,363		759,656		864,729
Units issued	31,753		58,241		114,938		1,540,620		182,791
Units redeemed	(223,547	)	(183,047	)	(336,019	)	(292,913	)	(287,864	)
Units, end of period	1,469,682		1,661,476		1,786,282		2,007,363		759,656
Unit value, end of period $	21.75		21.51		19.80		18.82		17.48
Assets, end of period $	31,968,921		35,743,879		35,365,263		37,770,719		13,279,144
Investment income ratio*	3.96	%	1.99	%	1.70	%	0.62	%	2.02	%
Total return**	1.11	%	8.66	%	5.22	%	7.64	%	26.49	%

110

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	International Core Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (f)		Year Ended Dec. 31/05 (b)
Units, beginning of period	44,439		147		—
Units issued	167,352		47,659		160
Units redeemed	(46,458	)	(3,367	)	(13	)
Units, end of period	165,333		44,439		147
Unit value, end of period $	16.55		14.84		11.89
Assets, end of period $	2,735,485		659,612		1,747
Investment income ratio*	2.70	%	0.45	%	0.00	%
Total return, lowest to highest**	3.06% to 11.46	%	12.48% to 24.81	%	10.00	%

(f) Fund renamed on May 1, 2006. Previously known as International Stock Trust.

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	International Core Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (f)		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	1,379,369		1,574,644		1,597,724		1,779,013		1,828,065
Units issued	172,874		199,302		208,412		270,167		5,436,968
Units redeemed	(284,716	)	(394,577	)	(231,492	)	(451,456	)	(5,486,020	)
Units, end of period	1,267,527		1,379,369		1,574,644		1,597,724		1,779,013
Unit value, end of period $	22.54		20.23		16.22		13.99		12.10
Assets, end of period $	28,576,915		27,910,801		25,536,350		22,347,931		21,527,031
Investment income ratio*	2.20	%	0.60	%	0.76	%	0.84	%	0.48	%
Total return**	11.42	%	24.77	%	15.94	%	15.59	%	30.26	%

(f) Fund renamed on May 1, 2006. Previously known as International Stock Trust.

111

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	International Equity Index Trust A Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (c)		Year Ended Dec. 31/04 (d)
Units, beginning of period	354,913		282,461		280,538		—
Units issued	102,021		175,803		135,805		329,326
Units redeemed	(55,702	)	(103,351	)	(133,882	)	(48,788	)
Units, end of period	401,232		354,913		282,461		280,538
Unit value, end of period $	25.00		21.66		17.26		14.81
Assets, end of period $	10,033,176		7,689,141		4,876,719		4,153,578
Investment income ratio*	3.92	%	0.72	%	0.75	%	0.48	%
Total return**	15.42	%	25.48	%	16.61	%	18.44	%

(c) Fund renamed on May 2, 2005. Previously known as International Equity Index Fund.

(d) Reflects the period from commencement of operations on May 3, 2004 through December 31, 2004.

	Sub-Account
	International Equity Index Trust B Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	17,730		56		—
Units issued	194,216		19,452		60
Units redeemed	(96,878	)	(1,778	)	(4	)
Units, end of period	115,068		17,730		56
Unit value, end of period $	47.69		41.18		32.39
Assets, end of period $	5,487,278		730,024		1,804
Investment income ratio*	5.61	%	0.17	%	0.00	%
Total return, lowest to highest**	6.22% to 15.82	%	15.34% to 27.11	%	9.94	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

112

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	International Opportunities Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	20,208		43		—
Units issued	113,238		22,683		43
Units redeemed	(9,906	)	(2,518	)	—
Units, end of period	123,540		20,208		43
Unit value, end of period $	18.51		15.41		12.43
Assets, end of period $	2,286,484		311,443		541
Investment income ratio*	2.04	%	0.04	%	0.00	%
Total return, lowest to highest**	14.07% to 20.10	%	13.70% to 23.96	%	15.80	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	International Opportunities Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	194,092		11,505		—
Units issued	375,594		299,463		11,596
Units redeemed	(280,419	)	(116,876	)	(91	)
Units, end of period	289,267		194,092		11,505
Unit value, end of period $	23.10		19.23		15.53
Assets, end of period $	6,681,311		3,732,687		178,679
Investment income ratio*	1.99	%	0.67	%	0.00	%
Total return**	20.10	%	23.84	%	24.24	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

113

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	International Small Cap Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	21,182		262		—
Units issued	175,012		30,818		340
Units redeemed	(31,737	)	(9,898	)	(78	)
Units, end of period	164,457		21,182		262
Unit value, end of period $	15.73		14.27		11.18
Assets, end of period $	2,586,848		302,325		2,923
Investment income ratio*	3.85	%	0.32	%	0.00	%
Total return, lowest to highest**	(8.01)% to 10.20	%	13.15% to 27.73	%	5.67	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	International Small Cap Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	460,765		603,603		483,045		495,768		371,074
Units issued	349,294		271,647		542,640		272,973		5,550,626
Units redeemed	(357,136	)	(414,485	)	(422,082	)	(285,696	)	(5,425,932	)
Units, end of period	452,923		460,765		603,603		483,045		495,768
Unit value, end of period $	30.89		28.05		21.96		19.94		16.47
Assets, end of period $	13,989,318		12,922,092		13,253,506		9,633,024		8,166,604
Investment income ratio*	2.73	%	1.23	%	0.84	%	0.12	%	0.00	%
Total return**	10.13	%	27.73	%	10.11	%	21.06	%	54.95	%

114

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	International Value Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	73,556		88		—
Units issued	244,711		82,565		89
Units redeemed	(58,404	)	(9,097	)	(1	)
Units, end of period	259,863		73,556		88
Unit value, end of period $	15.95		14.55		11.23
Assets, end of period $	4,143,934		1,070,153		993
Investment income ratio*	4.71	%	0.22	%	0.00	%
Total return, lowest to highest**	5.24% to 9.61	%	17.67% to 29.61	%	4.80	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	International Value Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	1,763,611		1,600,518		1,081,276		800,132		510,644
Units issued	222,231		580,310		1,004,722		621,132		5,952,337
Units redeemed	(420,853	)	(417,217	)	(485,480	)	(339,988	)	(5,662,849	)
Units, end of period	1,564,989		1,763,611		1,600,518		1,081,276		800,132
Unit value, end of period $	24.81		22.65		17.48		15.81		13.01
Assets, end of period $	38,827,351		39,949,803		27,977,424		17,098,318		10,409,668
Investment income ratio*	4.22	%	1.73	%	0.72	%	1.15	%	0.72	%
Total return**	9.52	%	29.60	%	10.54	%	21.55	%	44.87	%

115

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Investment Quality Bond Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	10,501		—
Units issued	82,285		11,284
Units redeemed	(12,561	)	(783	)
Units, end of period	80,225		10,501
Unit value, end of period $	11.15		10.50
Assets, end of period $	894,483		110,223
Investment income ratio*	10.61	%	1.26	%
Total return, lowest to highest**	4.83% to 6.23	%	3.64% to 4.76	%

(a) Fund available in prior year but no activity.

	Sub-Account
	Investment Quality Bond Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	883,152		934,699		1,166,118		1,248,563		1,375,351
Units issued	67,579		80,538		179,811		91,517		142,991
Units redeemed	(115,413	)	(132,085	)	(411,230	)	(173,962	)	(269,779	)
Units, end of period	835,318		883,152		934,699		1,166,118		1,248,563
Unit value, end of period $	23.70		22.31		21.55		21.07		20.10
Assets, end of period $	19,795,158		19,705,785		20,137,630		24,567,760		25,097,289
Investment income ratio*	8.98	%	5.99	%	5.63	%	5.94	%	4.96	%
Total return**	6.21	%	3.57	%	2.27	%	4.81	%	7.32	%

116

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Large Cap Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	14,830		—
Units issued	64,255		15,487
Units redeemed	(4,802)		(657)
Units, end of period	74,283		14,830
Unit value, end of period $	12.96		12.77
Assets, end of period $	962,931		189,343
Investment income ratio*	1.18	%	0.02	%
Total return, lowest to highest**	(1.46)% to 1.53	%	13.34% to 14.38	%

(a) Fund available in prior year but no activity.

	Sub-Account
	Large Cap Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	34,072		869		—
Units issued	1,587,795		148,535		130,131
Units redeemed	(270,631	)	(115,332	)	(129,262	)
Units, end of period	1,351,236		34,072		869
Unit value, end of period $	16.19		15.97		13.96
Assets, end of period $	21,878,540		544,040		12,109
Investment income ratio*	0.79	%	0.02	%	0.00	%
Total return**	1.40	%	14.36	%	11.70	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

117

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Large Cap Value Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	40,849		285		—
Units issued	353,983		51,967		313
Units redeemed	(82,024	)	(11,403	)	(28	)
Units, end of period	312,808		40,849		285
Unit value, end of period $	14.03		13.43		11.58
Assets, end of period $	4,389,271		548,776		3,297
Investment income ratio*	1.30	%	0.12	%	0.00	%
Total return, lowest to highest**	0.67% to 4.45	%	11.34% to 16.03	%	5.24	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Large Cap Value Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03 (t)
Units, beginning of period	316,288		275,325		238,973		98,687		—
Units issued	164,214		198,243		338,735		371,768		108,524
Units redeemed	(55,862	)	(157,280	)	(302,383	)	(231,482	)	(9,837	)
Units, end of period	424,640		316,288		275,325		238,973		98,687
Unit value, end of period $	27.16		26.02		22.44		19.43		15.96
Assets, end of period $	11,533,344		8,230,078		6,179,567		4,644,416		1,574,632
Investment income ratio*	1.02	%	0.46	%	0.00	%	1.05	%	0.00	%
Total return**	4.38	%	15.94	%	15.48	%	21.80	%	27.65	%

(t) Reflects the period from commencement of operations on May 5, 2003 through December 31, 2003.

118

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Lifestyle Aggressive Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (v)		Year Ended Dec. 31/05 (b)
Units, beginning of period	698,032		11,325		—
Units issued	1,303,383		808,006		11,962
Units redeemed	(123,337	)	(121,299	)	(637	)
Units, end of period	1,878,078		698,032		11,325
Unit value, end of period $	14.50		13.34		11.55
Assets, end of period $	27,229,364		9,314,281		130,860
Investment income ratio*	8.96	%	1.56	%	0.07	%
Total return, lowest to highest**	2.48% to 8.66	%	10.16% to 15.48	%	5.92	%

(v) Fund renamed on May 1, 2006. Previously known as Lifestyle Aggressive 1000 Trust.

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Lifestyle Aggressive Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (v)		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	1,034,272		864,648		708,565		500,142		432,720
Units issued	131,507		321,777		209,457		284,558		136,427
Units redeemed	(120,033	)	(152,153	)	(53,374	)	(76,135	)	(69,005	)
Units, end of period	1,045,746		1,034,272		864,648		708,565		500,142
Unit value, end of period $	24.27		22.36		19.37		17.51		15.08
Assets, end of period $	25,384,726		23,128,583		16,746,448		12,404,137		7,544,107
Investment income ratio*	9.34	%	7.30	%	1.75	%	0.65	%	0.39	%
Total return**	8.55	%	15.46	%	10.64	%	16.05	%	34.91	%

(v) Fund renamed on May 1, 2006. Previously known as Lifestyle Aggressive 1000 Trust.

119

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Lifestyle Balanced Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (w)		Year Ended Dec. 31/05 (b)
Units, beginning of period	1,155,928		30,197		—
Units issued	2,847,801		1,310,263		31,584
Units redeemed	(386,859	)	(184,532	)	(1,387	)
Units, end of period	3,616,870		1,155,928		30,197
Unit value, end of period $	13.19		12.37		10.97
Assets, end of period $	47,697,845		14,300,087		331,175
Investment income ratio*	7.59	%	1.76	%	0.18	%
Total return, lowest to highest**	3.29% to 6.60	%	9.80% to 12.80	%	3.32	%

(w) Fund renamed on May 1, 2006. Previously known as Lifestyle Balanced 640 Trust.

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Lifestyle Balanced Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (w)		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	2,622,654		2,359,219		1,949,465		1,517,216		1,176,180
Units issued	543,402		476,514		527,854		619,032		504,076
Units redeemed	(284,902	)	(213,079	)	(118,100	)	(186,783	)	(163,040	)
Units, end of period	2,881,154		2,622,654		2,359,219		1,949,465		1,517,216
Unit value, end of period $	26.60		24.98		22.16		20.73		18.27
Assets, end of period $	76,629,316		65,514,497		52,277,135		40,415,463		27,714,579
Investment income ratio*	7.47	%	5.23	%	3.73	%	2.06	%	2.31	%
Total return**	6.47	%	12.73	%	6.88	%	13.49	%	23.98	%

(w) Fund renamed on May 1, 2006. Previously known as Lifestyle Balanced 640 Trust.

120

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Lifestyle Conservative Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (x)		Year Ended Dec. 31/05 (b)
Units, beginning of period	122,621		10		—
Units issued	127,951		128,552		23
Units redeemed	(49,805	)	(5,941	)	(13	)
Units, end of period	200,767		122,621		10
Unit value, end of period $	11.81		11.21		10.34
Assets, end of period $	2,371,123		1,374,679		100
Investment income ratio*	9.09	%	0.65	%	0.00	%
Total return, lowest to highest**	4.04% to 5.35	%	7.10% to 8.44	%	1.05	%

(x) Fund renamed on May 1, 2006. Previously known as Lifestyle Conservative 280 Trust.

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Lifestyle Conservative Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (x)		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	288,038		295,628		289,630		290,414		100,707
Units issued	70,842		22,359		41,647		55,248		271,208
Units redeemed	(53,571	)	(29,949	)	(35,649	)	(56,032	)	(81,501	)
Units, end of period	305,309		288,038		295,628		289,630		290,414
Unit value, end of period $	25.35		24.06		22.18		21.56		19.86
Assets, end of period $	7,739,240		6,928,768		6,558,099		6,244,993		5,766,764
Investment income ratio*	8.00	%	4.66	%	4.82	%	3.44	%	3.49	%
Total return**	5.38	%	8.44	%	2.88	%	8.59	%	11.55	%

(x) Fund renamed on May 1, 2006. Previously known as Lifestyle Conservative 280 Trust.

121

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Lifestyle Growth Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (y)		Year Ended Dec. 31/05 (b)
Units, beginning of period	2,785,384		52,831		—
Units issued	6,247,658		3,144,750		53,230
Units redeemed	(633,029	)	(412,197	)	(399	)
Units, end of period	8,400,013		2,785,384		52,831
Unit value, end of period $	13.76		12.79		11.26
Assets, end of period $	115,560,317		35,629,937		594,998
Investment income ratio*	7.85	%	2.18	%	0.25	%
Total return, lowest to highest**	3.01% to 7.55	%	9.70% to 13.58	%	4.59	%

(y) Fund renamed on May 1, 2006. Previously known as Lifestyle Growth 820 Trust.

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Lifestyle Growth Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (y)		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	4,080,709		3,536,083		2,873,853		2,239,933		1,909,803
Units issued	564,108		862,632		853,307		903,333		572,430
Units redeemed	(300,696	)	(318,006	)	(191,077	)	(269,413	)	(242,300	)
Units, end of period	4,344,121		4,080,709		3,536,083		2,873,853		2,239,933
Unit value, end of period $	25.76		23.96		21.11		19.43		16.95
Assets, end of period $	111,895,709		97,756,372		74,633,010		55,819,902		37,967,569
Investment income ratio*	7.77	%	5.91	%	2.67	%	1.35	%	1.16	%
Total return**	7.52	%	13.50	%	8.66	%	14.59	%	29.56	%

(y) Fund renamed on May 1, 2006. Previously known as Lifestyle Growth 820 Trust.

122

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Lifestyle Moderate Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (z)		Year Ended Dec. 31/05 (b)
Units, beginning of period	138,568		5,779		—
Units issued	380,409		188,312		5,805
Units redeemed	(66,356	)	(55,523	)	(26	)
Units, end of period	452,621		138,568		5,779
Unit value, end of period $	12.33		11.71		10.60
Assets, end of period $	5,582,305		1,622,337		61,229
Investment income ratio*	8.30	%	1.43	%	0.00	%
Total return, lowest to highest**	3.32% to 5.34	%	8.31% to 10.49	%	2.15	%

(z) Fund renamed on May 1, 2006. Previously known as Lifestyle Moderate 460 Trust.

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Lifestyle Moderate Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (z)		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	560,538		452,129		413,158		302,011		209,139
Units issued	100,670		181,674		100,065		164,068		153,027
Units redeemed	(103,996	)	(73,265	)	(61,094	)	(52,921	)	(60,155	)
Units, end of period	557,212		560,538		452,129		413,158		302,011
Unit value, end of period $	25.72		24.42		22.12		21.24		19.13
Assets, end of period $	14,329,767		13,690,869		10,001,375		8,774,966		5,776,547
Investment income ratio*	7.58	%	4.05	%	4.07	%	2.60	%	2.74	%
Total return**	5.29	%	10.42	%	4.15	%	11.04	%	17.83	%

(z) Fund renamed on May 1, 2006. Previously known as Lifestyle Moderate 460 Trust.

123

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Managed Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	16,920		5,322		—
Units issued	23,036		12,065		5,382
Units redeemed	(11,169	)	(467	)	(60	)
Units, end of period	28,787		16,920		5,322
Unit value, end of period $	57.27		56.17		52.26
Assets, end of period $	1,648,412		950,300		278,099
Investment income ratio*	5.82	%	0.96	%	0.00	%
Total return, lowest to highest**	1.07% to 1.95	%	6.62% to 8.49	%	1.17	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Mid Cap Index Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	50,336		597		—
Units issued	184,482		55,816		605
Units redeemed	(26,436	)	(6,077	)	(8	)
Units, end of period	208,382		50,336		597
Unit value, end of period $	15.02		13.97		12.73
Assets, end of period $	3,130,123		703,035		7,602
Investment income ratio*	1.85	%	0.11	%	0.00	%
Total return, lowest to highest**	0.35% to 7.55	%	4.26% to 9.74	%	5.18	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

124

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Mid Cap Index Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	594,832		497,551		450,865		387,204		239,658
Units issued	68,909		203,449		187,023		144,053		218,923
Units redeemed	(108,990	)	(106,168	)	(140,337	)	(80,392	)	(71,377	)
Units, end of period	554,751		594,832		497,551		450,865		387,204
Unit value, end of period $	22.99		21.39		19.49		17.40		15.02
Assets, end of period $	12,756,543		12,722,488		9,699,379		7,846,188		5,817,582
Investment income ratio*	1.32	%	0.60	%	0.47	%	0.37	%	0.00	%
Total return**	7.51	%	9.72	%	12.02	%	15.83	%	34.56	%

	Sub-Account
	Mid Cap Intersection Trust Series 0
	Year Ended Dec. 31/07 (h)
Units, beginning of period	—
Units issued	1,555
Units redeemed	(56)
Units, end of period	1,499
Unit value, end of period $	9.31
Assets, end of period $	13,958
Investment income ratio*	0.04	%
Total return, lowest to highest**	(6.87)% to (2.91)	%

(h) Reflects the period of commencement of operations on April 30, 2007 through December 31, 2007.

125

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Mid Cap Stock Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	27,958		15		—
Units issued	58,906		30,456		16
Units redeemed	(11,338	)	(2,513	)	(1	)
Units, end of period	75,526		27,958		15
Unit value, end of period $	49.27		39.87		35.07
Assets, end of period $	3,721,080		1,114,529		531
Investment income ratio*	0.01	%	0.00	%	0.00	%
Total return, lowest to highest**	10.93% to 23.59	%	7.52% to 13.66	%	11.28	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Mid Cap Stock Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	1,169,706		1,344,785		690,470		540,411		325,090
Units issued	316,331		142,422		1,039,391		227,147		452,345
Units redeemed	(280,679	)	(317,501	)	(385,076	)	(77,088	)	(237,024	)
Units, end of period	1,205,358		1,169,706		1,344,785		690,470		540,411
Unit value, end of period $	22.72		18.38		16.19		14.13		11.87
Assets, end of period $	27,378,695		21,500,613		21,770,196		9,756,344		6,414,678
Investment income ratio*	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Total return**	23.57	%	13.55	%	14.57	%	19.04	%	42.33	%

126

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Mid Cap Value Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	47,593		333		—
Units issued	218,495		58,311		357
Units redeemed	(51,706)		(11,051)		(24)
Units, end of period	214,382		47,593		333
Unit value, end of period $	12.76		12.67		11.28
Assets, end of period $	2,735,641		602,966		3,757
Investment income ratio*	1.19	%	0.13	%	0.00	%
Total return, lowest to highest**	(4.59)% to 0.72	%	10.59% to 12.30	%	2.50	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Mid Cap Value Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	1,084,532		1,109,434		907,760		668,954		545,462
Units issued	230,551		97,312		448,868		613,525		261,583
Units redeemed	(253,801	)	(122,214	)	(247,194	)	(374,719	)	(138,091	)
Units, end of period	1,061,282		1,084,532		1,109,434		907,760		668,954
Unit value, end of period $	22.41		22.26		19.83		18.36		14.75
Assets, end of period $	23,788,217		24,141,454		21,996,856		16,664,733		9,867,204
Investment income ratio*	1.13	%	0.68	%	0.42	%	0.53	%	0.38	%
Total return**	0.69	%	12.27	%	8.00	%	24.46	%	25.36	%

127

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Mid Value Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	4,130		3		—
Units issued	39,323		5,013		4
Units redeemed	(6,395)		(886)		(1)
Units, end of period	37,058		4,130		3
Unit value, end of period $	21.71		21.60		17.95
Assets, end of period $	804,502		89,207		48
Investment income ratio*	3.40	%	0.15	%	0.00	%
Total return, lowest to highest**	(3.42)% to 0.51	%	14.99% to 20.34	%	3.89	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Money Market Trust B Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	917,876		105,299		—
Units issued	5,797,520		3,022,032		194,282
Units redeemed	(4,469,314	)	(2,209,455	)	(88,983	)
Units, end of period	2,246,082		917,876		105,299
Unit value, end of period $	16.90		16.12		15.40
Assets, end of period $	37,963,831		14,799,912		1,621,499
Investment income ratio*	4.36	%	4.51	%	1.39	%
Total return, lowest to highest**	1.92% to 4.82	%	3.05% to 4.70	%	1.32	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

128

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Money Market Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	3,532,527		3,667,916		3,643,720		4,368,151		4,876,540
Units issued	2,384,421		2,080,974		2,481,631		2,071,959		15,281,567
Units redeemed	(2,539,753	)	(2,216,363	)	(2,457,435	)	(2,796,390	)	(15,789,956	)
Units, end of period	3,377,195		3,532,527		3,667,916		3,643,720		4,368,151
Unit value, end of period $	24.17		23.11		22.13		21.55		21.38
Assets, end of period $	81,593,898		81,624,374		81,149,775		78,523,906		93,383,242
Investment income ratio*	4.46	%	4.35	%	2.63	%	0.81	%	0.59	%
Total return**	4.56	%	4.45	%	2.66	%	0.81	%	0.59	%

	Sub-Account
	Natural Resources Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	49,789		53		—
Units issued	178,705		63,441		63
Units redeemed	(33,516	)	(13,705	)	(10	)
Units, end of period	194,978		49,789		53
Unit value, end of period $	23.82		16.92		13.83
Assets, end of period $	4,644,832		842,321		730
Investment income ratio*	1.30	%	0.21	%	0.00	%
Total return, lowest to highest**	18.70% to 40.81	%	6.27% to 22.32	%	12.18	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

129

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Natural Resources Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03 (t)
Units, beginning of period	283,163		273,647		151,374		62,937		—
Units issued	180,936		148,608		225,518		200,834		63,737
Units redeemed	(107,525	)	(139,092	)	(103,245	)	(112,397	)	(800	)
Units, end of period	356,574		283,163		273,647		151,374		62,937
Unit value, end of period $	56.50		40.16		32.84		22.38		18.00
Assets, end of period $	20,147,455		11,373,376		8,987,378		3,387,254		1,132,857
Investment income ratio*	1.17	%	0.51	%	0.00	%	0.11	%	0.00	%
Total return**	40.67	%	22.29	%	46.78	%	24.31	%	44.00	%

(t) Reflects the period from commencement of operations on May 5, 2003 through December 31, 2003.

	Sub-Account
	Overseas Equity Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	13,281		2		—
Units issued	42,926		18,684		2
Units redeemed	(16,096	)	(5,405	)	—
Units, end of period	40,111		13,281		2
Unit value, end of period $	21.43		19.04		15.90
Assets, end of period $	859,551		252,920		27
Investment income ratio*	3.12	%	0.01	%	0.00	%
Total return, lowest to highest**	5.73% to 12.53	%	11.40% to 19.76	%	12.39	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

130

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Pacific Rim Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	44,502		47		—
Units issued	141,802		52,089		49
Units redeemed	(61,298	)	(7,634	)	(2	)
Units, end of period	125,006		44,502		47
Unit value, end of period $	15.40		14.10		12.68
Assets, end of period $	1,924,722		627,530		600
Investment income ratio*	2.14	%	0.27	%	0.00	%
Total return, lowest to highest**	(0.46)% to 9.19	%	2.51% to 11.22	%	17.05	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Pacific Rim Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	893,146		995,501		929,262		885,530		959,821
Units issued	243,919		351,692		386,497		503,540		2,687,834
Units redeemed	(350,851	)	(454,047	)	(320,258	)	(459,808	)	(2,762,125	)
Units, end of period	786,214		893,146		995,501		929,262		885,530
Unit value, end of period $	16.01		14.67		13.21		10.50		8.98
Assets, end of period $	12,583,017		13,097,299		13,146,240		9,758,540		7,954,829
Investment income ratio*	1.85	%	0.94	%	0.86	%	0.45	%	0.15	%
Total return**	9.14	%	11.05	%	25.75	%	16.90	%	40.72	%

131

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Quantitative All Cap Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	1,680		1		—
Units issued	28,784		1,766		1
Units redeemed	(4,591	)	(87	)
Units, end of period	25,873		1,680		1
Unit value, end of period $	13.73		13.22		11.47
Assets, end of period $	355,207		22,221		14
Investment income ratio*	3.64	%	2.19	%	0.00	%
Total return, lowest to highest**	(0.84)% to 3.82	%	9.88% to 15.24	%	4.91	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Quantitative All Cap Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03 (t)
Units, beginning of period	27,796		21,687		11,146		2,831		—
Units issued	11,476		18,378		15,697		19,166		2,861
Units redeemed	(6,436	)	(12,269	)	(5,156	)	(10,851	)	(30	)
Units, end of period	32,836		27,796		21,687		11,146		2,831
Unit value, end of period $	23.21		22.36		19.42		17.88		15.56
Assets, end of period $	761,997		621,515		421,060		199,302		44,046
Investment income ratio*	1.33	%	1.03	%	0.96	%	0.90	%	0.35	%
Total return**	3.79	%	15.17	%	8.58	%	14.91	%	24.49	%

(t) Reflects the period from commencement of operations on May 5, 2003 through December 31, 2003.

132

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Quantitative Mid Cap Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	11,901		537		—
Units issued	7,533		16,374		673
Units redeemed	(12,682	)	(5,010	)	(136	)
Units, end of period	6,752		11,901		537
Unit value, end of period $	11.96		12.17		11.69
Assets, end of period $	80,716		144,781		6,276
Investment income ratio*	0.54	%	0.00	%	0.00	%
Total return, lowest to highest**	(5.80)% to (1.73)	%	(1.15)% to 4.10	%	5.53	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Quantitative Mid Cap Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	143,828		96,745		88,903		60,518		52,149
Units issued	57,592		74,509		44,603		47,955		25,283
Units redeemed	(92,292	)	(27,426	)	(36,761	)	(19,570	)	(16,914	)
Units, end of period	109,128		143,828		96,745		88,903		60,518
Unit value, end of period $	14.96		15.28		14.68		12.92		10.93
Assets, end of period $	1,633,000		2,197,838		1,420,217		1,148,626		661,466
Investment income ratio*	0.38	%	0.00	%	0.00	%	0.00	%	0.00	%
Total return**	(2.08	)%	4.09	%	13.62	%	18.21	%	38.53	%

133

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Quantitative Value Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	2,847		—
Units issued	7,399		2,882
Units redeemed	(3,118)		(35)
Units, end of period	7,128		2,847
Unit value, end of period $	12.91		13.61
Assets, end of period $	91,988		38,732
Investment income ratio*	2.39	%	0.00	%
Total return, lowest to highest**	(5.53)% to (5.17)	%	16.59% to 21.36	%

(a) Fund available in prior year but no activity.

	Sub-Account
	Quantitative Value Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04 (d)
Units, beginning of period	30,356		36,352		1,058		—
Units issued	7,487		22,747		36,662		2,082
Units redeemed	(12,817	)	(28,743	)	(1,368	)	(1,024	)
Units, end of period	25,026		30,356		36,352		1,058
Unit value, end of period $	18.40		19.41		16.02		14.67
Assets, end of period $	460,514		589,162		582,273		15,522
Investment income ratio*	1.89	%	0.97	%	0.07	%	0.00	%
Total return**	(5.19	)%	21.16	%	9.19	%	17.36	%

(d) Reflects the period from commencement of operations on May 3, 2004 through December 31, 2004.

134

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Real Estate Securities Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	15,832		506		—
Units issued	45,828		17,143		507
Units redeemed	(15,246)		(1,817)		(1)
Units, end of period	46,414		15,832		506
Unit value, end of period $	80.44		95.27		68.95
Assets, end of period $	3,733,509		1,508,246		34,872
Investment income ratio*	2.83	%	0.62	%	0.00	%
Total return, lowest to highest**	(15.56)% to (1.55)	%	30.03% to 38.17	%	4.37	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Real Estate Securities Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	488,639		547,618		612,965		625,133		629,691
Units issued	17,780		83,833		79,384		62,910		63,441
Units redeemed	(108,778	)	(142,812	)	(144,731	)	(75,078	)	(67,999	)
Units, end of period	397,641		488,639		547,618		612,965		625,133
Unit value, end of period $	96.52		114.37		82.82		74.04		56.08
Assets, end of period $	38,378,974		55,885,697		45,351,144		45,385,043		35,054,800
Investment income ratio*	2.61	%	1.80	%	2.01	%	2.39	%	2.67	%
Total return**	(15.61	)%	38.10	%	11.85	%	32.04	%	39.15	%

135

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Real Return Bond Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	13,027		127		—
Units issued	78,889		13,691		141
Units redeemed	(37,154)		(791)		(14)
Units, end of period	54,762		13,027		127
Unit value, end of period $	11.14		10.01		9.96
Assets, end of period $	610,144		130,354		1,269
Investment income ratio*	11.24	%	0.18	%	0.00	%
Total return, lowest to highest**	8.41% to 11.36	%	(0.09)% to 1.65	%	0.45	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Real Return Bond Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03 (t)
Units, beginning of period	200,725		175,430		120,093		101,029		—
Units issued	122,221		72,149		73,152		131,176		105,327
Units redeemed	(51,034	)	(46,854	)	(17,815	)	(112,112	)	(4,298	)
Units, end of period	271,912		200,725		175,430		120,093		101,029
Unit value, end of period $	16.21		14.56		14.50		14.30		13.11
Assets, end of period $	4,407,333		2,922,527		2,544,365		1,717,117		1,324,485
Investment income ratio*	7.48	%	2.37	%	0.00	%	0.50	%	0.00	%
Total return**	11.33	%	0.39	%	1.43	%	9.07	%	4.88	%

(t) Reflects the period from commencement of operations on May 5, 2003 through December 31, 2003.

136

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Science & Technology Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	51,885		—		—
Units issued	71,624		60,218		1
Units redeemed	(18,607	)	(8,333	)	(1	)
Units, end of period	104,902		51,885		—
Unit value, end of period $	14.24		11.90		11.27
Assets, end of period $	1,493,768		617,666		5
Investment income ratio*	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	6.67% to 19.62	%	3.75% to 8.36	%	1.82	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Science & Technology Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	1,205,352		1,391,437		1,531,628		1,574,239		1,372,512
Units issued	408,580		95,725		326,354		242,241		1,070,042
Units redeemed	(362,386	)	(281,810	)	(466,545	)	(284,852	)	(868,315	)
Units, end of period	1,251,546		1,205,352		1,391,437		1,531,628		1,574,239
Unit value, end of period $	18.03		15.08		14.29		14.00		13.88
Assets, end of period $	22,565,014		18,175,973		19,883,950		21,441,064		21,846,463
Investment income ratio*	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Total return**	19.57	%	5.53	%	2.08	%	2.40	%	50.40	%

137

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Short-Term Bond Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	1,839		—
Units issued	29,998		2,669
Units redeemed	(16,281	)	(830	)
Units, end of period	15,556		1,839
Unit value, end of period $	19.05 to 19.05		18.45 to 18.45
Assets, end of period $	296,348		33,927
Investment income ratio*	12.02	%	1.92	%
Total return, lowest to highest**	1.04% to 3.25	%	3.60% to 4.55	%

(a) Fund available in prior year but no activity.

	Sub-Account
	Small Cap Growth Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	2,159		2		—
Units issued	45,710		4,651		3
Units redeemed	(5,578	)	(2,494	)	(1	)
Units, end of period	42,291		2,159		2
Unit value, end of period $	19.59		17.19		15.15
Assets, end of period $	828,429		37,098		29
Investment income ratio*	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	6.76% to 13.98	%	4.81% to 13.47	%	12.27	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

138

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Small Cap Index Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	47,031		691		—
Units issued	128,807		53,950		704
Units redeemed	(18,027	)	(7,610	)	(13	)
Units, end of period	157,811		47,031		691
Unit value, end of period $	15.16		15.48		13.16
Assets, end of period $	2,392,630		728,104		9,096
Investment income ratio*	2.07	%	0.06	%	0.00	%
Total return, lowest to highest**	(2.06)% to (1.09	)%	8.80% to 17.64	%	3.33	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Small Cap Index Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	503,406		482,672		477,338		325,861		264,595
Units issued	55,899		71,939		130,103		248,720		233,983
Units redeemed	(78,342	)	(51,205	)	(124,769	)	(97,243	)	(172,717	)
Units, end of period	480,963		503,406		482,672		477,338		325,861
Unit value, end of period $	19.08		19.50		16.58		15.96		13.60
Assets, end of period $	9,173,582		9,814,002		8,000,791		7,616,093		4,431,369
Investment income ratio*	1.67	%	0.48	%	0.52	%	0.30	%	0.00	%
Total return**	(2.16	)%	17.62	%	3.89	%	17.33	%	45.79	%

139

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Small Cap Opportunities Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	23,676		17		—
Units issued	39,779		26,666		22
Units redeemed	(25,686	)	(3,007	)	(5	)
Units, end of period	37,769		23,676		17
Unit value, end of period $	11.87		12.85		11.63
Assets, end of period $	448,408		304,246		203
Investment income ratio*	2.34	%	0.39	%	0.00	%
Total return, lowest to highest**	(7.60)% to (6.53)	%	4.03% to 10.47	%	3.46	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Small Cap Opportunities Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03 (t)
Units, beginning of period	389,017		408,563		175,331		16,308		—
Units issued	112,989		49,530		430,156		426,510		21,289
Units redeemed	(161,640	)	(69,076	)	(196,924	)	(267,487	)	(4,981	)
Units, end of period	340,366		389,017		408,563		175,331		16,308
Unit value, end of period $	24.20		26.20		23.72		22.01		17.50
Assets, end of period $	8,235,210		10,192,903		9,691,801		3,859,270		285,388
Investment income ratio*	1.85	%	0.70	%	0.00	%	0.13	%	0.00	%
Total return**	(7.66	)%	10.45	%	7.77	%	25.78	%	40.00	%

(t) Reflects the period from commencement of operations on May 5, 2003 through December 31, 2003.

140

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Small Cap Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	6,574		29		—
Units issued	26,273		7,410		29
Units redeemed	(3,791	)	(865	)	—
Units, end of period	29,056		6,574		29
Unit value, end of period $	12.39		12.32		11.45
Assets, end of period $	360,047		80,990		326
Investment income ratio*	0.00	%	0.00	%	0.00	%
Total return, lowest to highest**	0.57% to 0.77	%	(0.12)% to 7.62	%	4.22	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Small Cap Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	74,129		61,597		—
Units issued	107,327		70,295		182,475
Units redeemed	(157,241	)	(57,763	)	(120,878	)
Units, end of period	24,215		74,129		61,597
Unit value, end of period $	15.48		15.38		14.30
Assets, end of period $	374,839		1,140,105		880,841
Investment income ratio*	0.00	%	0.00	%	0.00	%
Total return**	0.65	%	7.55	%	14.40	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

141

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Small Cap Value Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	10,694		1,157		—
Units issued	61,228		11,085		1,157
Units redeemed	(11,783	)	(1,548	)	—
Units, end of period	60,139		10,694		1,157
Unit value, end of period $	34.40		35.44		29.70
Assets, end of period $	2,068,955		378,961		34,364
Investment income ratio*	1.24	%	0.06	%	0.00	%
Total return, lowest to highest**	(4.00)% to (2.92	)%	13.65% to 19.32	%	2.55	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Small Cap Value Trust Series 1
	Year Ended Dec. 31/07 (a)
Units, beginning of period	—
Units issued	59,725
Units redeemed	(1,111	)
Units, end of period	58,614
Unit value, end of period $	12.28
Assets, end of period $	719,629
Investment income ratio*	0.60	%
Total return, lowest to highest**	(1.78	)%

(a) Fund available in prior year but no activity.

142

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Small Company Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	163		40		—
Units issued	149		214		51
Units redeemed	(33	)	(91	)	(11	)
Units, end of period	279		163		40
Unit value, end of period $	11.00		11.76		11.13
Assets, end of period $	3,064		1,911		446
Investment income ratio*	0.00	%	0.00	%	0.00	%
Total return**	(6.46	)%	5.66	%	1.61	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Small Company Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04 (d)
Units, beginning of period	129,431		33,689		4,484		—
Units issued	87,014		188,007		30,727		149,721
Units redeemed	(91,099	)	(92,265	)	(1,522	)	(145,237	)
Units, end of period	125,346		129,431		33,689		4,484
Unit value, end of period $	15.97		17.09		16.18		15.22
Assets, end of period $	2,001,938		2,211,694		545,155		68,244
Investment income ratio*	0.00	%	0.00	%	0.00	%	0.00	%
Total return**	(6.53	)%	5.60	%	6.32	%	21.76	%

(d) Reflects the period from commencement of operations on May 3, 2004 through December 31, 2004.

143

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Small Company Value Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	103,645		187		—
Units issued	189,323		114,103		194
Units redeemed	(26,631	)	(10,645	)	(7	)
Units, end of period	266,337		103,645		187
Unit value, end of period $	13.25		13.41		11.61
Assets, end of period $	3,529,955		1,389,495		2,176
Investment income ratio*	0.16	%	0.02	%	0.00	%
Total return, lowest to highest**	(2.27)% to (1.14	)%	5.55% to 15.50	%	5.47	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Small Company Value Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	1,212,971		1,245,748		1,260,713		1,150,161		1,002,491
Units issued	192,846		154,295		187,060		308,204		453,829
Units redeemed	(293,503	)	(187,072	)	(202,025	)	(197,652	)	(306,159	)
Units, end of period	1,112,314		1,212,971		1,245,748		1,260,713		1,150,161
Unit value, end of period $	19.98		20.22		17.52		16.36		13.07
Assets, end of period $	22,218,148		24,522,007		21,820,203		20,631,270		15,034,590
Investment income ratio*	0.14	%	0.06	%	0.26	%	0.16	%	0.39	%
Total return**	(1.19	)%	15.42	%	7.04	%	25.19	%	33.67	%

144

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Special Value Trust Series 0
	Year Ended Dec. 31/07 (j)		Year Ended Dec. 31/06 (a)
Units, beginning of period	2,745		—
Units issued	8,085		2,929
Units redeemed	(10,830	)	(184	)
Units, end of period	—		2,745
Unit value, end of period $	12.41		12.44
Assets, end of period $	—		34,136
Investment income ratio*	3.30	%	0.00	%
Total return, lowest to highest**	(1.38)% to (0.22	)%	5.51% to 10.88	%

(j) Terminated as an investment option and funds transferred to Small Cap Value Trust on November 12, 2007.

(a) Fund available in prior year but no activity.

	Sub-Account
	Special Value Trust Series 1
	Year Ended Dec. 31/07 (j)		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03 (t)
Units, beginning of period	21,971		67,855		63,126		42,051		—
Units issued	13,218		8,248		15,342		24,527		44,876
Units redeemed	(35,189	)	(54,132	)	(10,613	)	(3,452	)	(2,825	)
Units, end of period	—		21,971		67,855		63,126		42,051
Unit value, end of period $	22.19		22.25		20.08		19.01		15.82
Assets, end of period $	—		488,880		1,362,368		1,200,169		665,250
Investment income ratio*	2.59	%	0.02	%	0.00	%	0.00	%	0.00	%
Total return**	(0.31	)%	10.84	%	5.61	%	20.18	%	26.56	%

(j) Terminated as an investment option and funds transferred to Small Cap Value Trust on November 12, 2007.

(t) Reflects the period from commencement of operations on May 5, 2003 through December 31, 2003.

145

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Strategic Bond Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	8,781		—
Units issued	107,814		9,607
Units redeemed	(22,188	)	(826	)
Units, end of period	94,407		8,781
Unit value, end of period $	10.99		10.99
Assets, end of period $	1,037,727		96,498
Investment income ratio*	10.36	%	1.21	%
Total return, lowest to highest**	0.02% to 2.07	%	6.69% to 7.25	%

(a) Fund available in prior year but no activity.

	Sub-Account
	Strategic Bond Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	506,732		475,070		472,670		454,870		391,405
Units issued	78,328		87,186		51,793		88,124		181,832
Units redeemed	(70,456	)	(55,524	)	(49,393	)	(70,324	)	(118,367	)
Units, end of period	514,604		506,732		475,070		472,670		454,870
Unit value, end of period $	23.23		23.26		21.73		21.16		19.84
Assets, end of period $	11,952,294		11,787,711		10,322,942		10,001,024		9,023,050
Investment income ratio*	9.25	%	6.50	%	2.75	%	3.75	%	4.76	%
Total return**	(0.15	)%	7.06	%	2.70	%	6.67	%	13.11	%

146

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Strategic Income Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	7,198		515		—
Units issued	156,738		11,672		515
Units redeemed	(54,717	)	(4,989	)	—
Units, end of period	109,219		7,198		515
Unit value, end of period $	11.33		10.70		10.28
Assets, end of period $	1,237,215		77,024		5,292
Investment income ratio*	3.04	%	6.15	%	69.96	%
Total return, lowest to highest**	3.96% to 5.85	%	2.73% to 4.08	%	1.23	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Strategic Income Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04 (d)
Units, beginning of period	54,207		18,409		3,766		—
Units issued	38,500		39,532		15,773		4,389
Units redeemed	(11,238	)	(3,734	)	(1,130	)	(623	)
Units, end of period	81,469		54,207		18,409		3,766
Unit value, end of period $	15.33		14.48		13.93		13.62
Assets, end of period $	1,248,960		784,930		256,383		51,273
Investment income ratio*	2.74	%	4.57	%	6.20	%	3.65	%
Total return**	5.88	%	3.97	%	2.28	%	8.93	%

(d) Reflects the period from commencement of operations on May 3, 2004 through December 31, 2004.

147

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Strategic Opportunities Trust Series 0
	Year Ended Dec. 31/07 (i)		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	28,880		4		—
Units issued	3,991		31,585		5
Units redeemed	(32,871	)	(2,709	)	(1	)
Units, end of period	—		28,880		4
Unit value, end of period $	14.31		13.40		11.94
Assets, end of period $	—		387,026		50
Investment income ratio*	0.85	%	0.00	%	0.00	%
Total return, lowest to highest**	6.76	%	7.14% to 12.25	%	7.27	%

(i) Terminated as an investment option and funds transferred to Large Cap Trust on April 30, 2007.

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Strategic Opportunities Trust Series 1
	Year Ended Dec. 31/07 (i)		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	1,463,792		1,678,316		1,853,876		2,066,438		2,124,457
Units issued	6,857		49,925		68,412		130,505		207,014
Units redeemed	(1,470,649	)	(264,449	)	(243,972	)	(343,067	)	(265,033	)
Units, end of period	—		1,463,792		1,678,316		1,853,876		2,066,438
Unit value, end of period $	17.10		16.01		14.28		13.01		11.59
Assets, end of period $	—		23,438,187		23,960,368		24,121,175		23,938,705
Investment income ratio*	0.78	%	0.01	%	0.43	%	0.09	%	0.00	%
Total return**	6.79	%	12.15	%	9.72	%	12.31	%	25.85	%

(i) Terminated as an investment option and funds transferred to Large Cap Trust on April 30, 2007.

148

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Total Bond Market Trust B Series 0
	Year Ended Dec. 31/07 (g)		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	10,174		—		—
Units issued	152,876		10,718		1
Units redeemed	(27,962	)	(544	)	(1	)
Units, end of period	135,088		10,174		—
Unit value, end of period $	17.03		15.89		15.27
Assets, end of period $	2,299,903		161,697		6
Investment income ratio*	12.97	%	0.12	%	0.00	%
Total return, lowest to highest**	5.28% to 7.13	%	4.07% to 4.95	%	0.39	%

(g) Fund renamed on October 1, 2007. Previously known as Bond Index Trust B.

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Total Return Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	112,748		207		—
Units issued	293,781		127,574		225
Units redeemed	(70,402	)	(15,033	)	(18	)
Units, end of period	336,127		112,748		207
Unit value, end of period $	12.37		11.39		10.99
Assets, end of period $	4,159,047		1,284,476		2,274
Investment income ratio*	9.08	%	0.34	%	0.00	%
Total return, lowest to highest**	7.18% to 8.61	%	3.67% to 4.15	%	(0.07	)%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

149

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Total Return Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	1,170,580		1,115,248		1,021,035		1,051,424		804,407
Units issued	157,071		159,856		158,392		163,844		401,469
Units redeemed	(203,620	)	(104,524	)	(64,179	)	(194,233	)	(154,452	)
Units, end of period	1,124,031		1,170,580		1,115,248		1,021,035		1,051,424
Unit value, end of period $	20.65		19.04		18.37		17.93		17.08
Assets, end of period $	23,214,442		22,283,837		20,493,352		18,308,958		17,963,495
Investment income ratio*	7.57	%	3.34	%	2.28	%	3.84	%	2.61	%
Total return**	8.49	%	3.60	%	2.48	%	4.96	%	5.01	%

	Sub-Account
	Total Stock Market Index Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	11,816		151		—
Units issued	33,080		18,251		151
Units redeemed	(15,586	)	(6,586	)	—
Units, end of period	29,310		11,816		151
Unit value, end of period $	48.65		46.25		40.10
Assets, end of period $	1,425,887		546,447		6,036
Investment income ratio*	2.76	%	0.06	%	0.00	%
Total return, lowest to highest**	1.41% to 5.19	%	12.21% to 15.33	%	3.30	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

150

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Total Stock Market Index Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	511,025		498,306		503,811		391,161		255,300
Units issued	66,195		75,161		90,402		192,234		153,399
Units redeemed	(40,044	)	(62,442	)	(95,907	)	(79,584	)	(17,538	)
Units, end of period	537,176		511,025		498,306		503,811		391,161
Unit value, end of period $	14.66		13.94		12.09		11.44		10.24
Assets, end of period $	7,874,116		7,122,081		6,023,552		5,762,135		4,003,691
Investment income ratio*	2.22	%	0.93	%	1.07	%	0.58	%	0.00	%
Total return**	5.18	%	15.29	%	5.70	%	11.73	%	30.55	%

	Sub-Account
	Turner Core Growth Trust
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	506		—
Units issued	25,433		653
Units redeemed	(1,817	)	(147	)
Units, end of period	24,122		506
Unit value, end of period $	32.76		26.76
Assets, end of period $	790,298		13,557
Investment income ratio*	0.79	%	1.67	%
Total return, lowest to highest**	13.70% to 22.43	%	3.17% to 8.52	%

(a) Fund available in prior year but no activity.

151

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	U.S. Core Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (u)		Year Ended Dec. 31/05 (b)
Units, beginning of period	18,108		585		—
Units issued	29,854		20,589		608
Units redeemed	(6,797	)	(3,066	)	(23	)
Units, end of period	41,165		18,108		585
Unit value, end of period $	11.64		11.49		10.52
Assets, end of period $	479,315		208,118		6,151
Investment income ratio*	2.55	%	1.27	%	0.00	%
Total return, lowest to highest**	0.22% to 1.31	%	7.97% to 10.74	%	1.88	%

(u) Fund renamed on May 1, 2006. Previously known as Growth & Income Trust.

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	U.S. Core Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (u)		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	1,964,359		2,228,980		2,469,930		2,677,391		2,701,501
Units issued	62,365		59,817		117,404		144,437		212,552
Units redeemed	(350,502	)	(324,438	)	(358,354	)	(351,898	)	(236,662	)
Units, end of period	1,676,222		1,964,359		2,228,980		2,469,930		2,677,391
Unit value, end of period $	22.31		22.03		20.18		19.77		18.52
Assets, end of period $	37,387,276		43,266,764		44,970,116		48,840,004		49,584,271
Investment income ratio*	2.22	%	1.22	%	1.38	%	0.86	%	0.97	%
Total return**	1.27	%	9.18	%	2.04	%	6.78	%	26.59	%

(u) Fund renamed on May 1, 2006. Previously known as Growth & Income Trust.

152

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	U.S. Global Leaders Growth Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	3,895		49		—
Units issued	23,619		4,034		49
Units redeemed	(4,870	)	(188	)	—
Units, end of period	22,644		3,895		49
Unit value, end of period $	11.51		11.10		10.90
Assets, end of period $	260,696		43,231		530
Investment income ratio*	1.97	%	0.00	%	1.81	%
Total return, lowest to highest**	3.72% to 4.85	%	1.81% to 6.90	%	1.93	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	U.S. Global Leaders Growth Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04 (d)
Units, beginning of period	139,449		204,597		9,299		—
Units issued	22,982		31,551		219,589		11,925
Units redeemed	(22,001	)	(96,699	)	(24,291	)	(2,626	)
Units, end of period	140,430		139,449		204,597		9,299
Unit value, end of period $	14.08		13.58		13.34		13.23
Assets, end of period $	1,976,766		1,894,209		2,729,838		123,009
Investment income ratio*	1.31	%	0.00	%	0.23	%	1.17	%
Total return**	3.63	%	1.81	%	0.87	%	5.82	%

(d) Reflects the period from commencement of operations on May 3, 2004 through December 31, 2004.

153

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	U.S. Government Securities Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06 (a)
Units, beginning of period	3,488		—
Units issued	57,871		5,259
Units redeemed	(26,129	)	(1,771	)
Units, end of period	35,230		3,488
Unit value, end of period $	12.64		12.24
Assets, end of period $	445,142		42,688
Investment income ratio*	9.75%		0.76%
Total return, lowest to highest**	2.42% to 3.25%		4.24% to 4.74%

(a) Fund available in prior year but no activity.

	Sub-Account
	U.S. Government Securities Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	733,672		773,526		941,170		1,240,879		1,299,367
Units issued	226,897		57,942		56,823		124,017		295,436
Units redeemed	(189,210	)	(97,796	)	(224,467	)	(423,726	)	(353,924	)
Units, end of period	771,359		733,672		773,526		941,170		1,240,879
Unit value, end of period $	17.48		16.94		16.23		15.98		15.53
Assets, end of period $	13,481,617		12,431,478		12,555,989		15,039,513		19,272,188
Investment income ratio*	8.15	%	4.94	%	1.81	%	2.10	%	3.30	%
Total return**	3.15	%	4.39	%	1.58	%	2.89	%	1.73	%

154

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	U.S. High Yield Bond Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	3,854		—		—
Units issued	33,298		4,937		—
Units redeemed	(3,826	)	(1,083	)	—
Units, end of period	33,326		3,854		—
Unit value, end of period $	11.76		11.42		10.42
Assets, end of period $	391,865		44,001		3
Investment income ratio*	11.70	%	0.41	%	0.00	%
Total return, lowest to highest**	3.00% to 3.60	%	6.52% to 9.60	%	1.17	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	U.S. High Yield Bond Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	63,180		371		—
Units issued	45,222		316,818		372
Units redeemed	(67,119	)	(254,009	)	(1	)
Units, end of period	41,283		63,180		371
Unit value, end of period $	14.66		14.25		13.01
Assets, end of period $	605,496		900,741		4,822
Investment income ratio*	8.89	%	0.06	%	0.00	%
Total return**	2.86	%	9.57	%	4.08	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

155

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	U.S. Large Cap Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	20,867		4		—
Units issued	125,664		25,907		5
Units redeemed	(18,640	)	(5,044	)	(1	)
Units, end of period	127,891		20,867		4
Unit value, end of period $	12.37		12.41		11.21
Assets, end of period $	1,582,484		258,878		44
Investment income ratio*	1.47	%	0.03	%	0.00	%
Total return, lowest to highest**	(3.98)% to (0.26	)%	7.68% to 10.68	%	3.58	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	U.S. Large Cap Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	3,105,894		3,446,247		3,711,231		1,199,921		1,128,167
Units issued	187,105		65,275		111,873		3,153,720		228,970
Units redeemed	(500,425	)	(405,628	)	(376,857	)	(642,410	)	(157,216	)
Units, end of period	2,792,574		3,105,894		3,446,247		3,711,231		1,199,921
Unit value, end of period $	16.83		16.89		15.26		14.43		13.19
Assets, end of period $	47,013,690		52,467,049		52,609,938		53,540,709		15,824,781
Investment income ratio*	1.08	%	0.57	%	0.43	%	0.14	%	0.40	%
Total return**	(0.34	)%	10.66	%	5.81	%	9.39	%	37.06	%

156

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Utilities Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	19,690		47		—
Units issued	110,966		21,615		49
Units redeemed	(33,941	)	(1,972	)	(2	)
Units, end of period	96,715		19,690		47
Unit value, end of period $	19.33		15.17		11.57
Assets, end of period $	1,869,476		298,683		547
Investment income ratio*	2.35	%	0.10	%	0.00	%
Total return, lowest to highest**	12.22% to 27.43	%	25.74% to 31.06	%	3.87	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Utilities Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	507,965		214,242		262,919		86,095		59,608
Units issued	372,247		461,446		295,499		229,797		232,158
Units redeemed	(510,366	)	(167,723	)	(344,176	)	(52,973	)	(205,671	)
Units, end of period	369,846		507,965		214,242		262,919		86,095
Unit value, end of period $	24.26		19.04		14.54		12.44		9.61
Assets, end of period $	8,972,614		9,672,916		3,114,125		3,271,438		827,660
Investment income ratio*	2.06	%	1.34	%	0.45	%	0.63	%	0.97	%
Total return**	27.40	%	31.00	%	16.82	%	29.42	%	34.54	%

157

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

Notes to Financial Statements (continued)

7. Financial Highlights

	Sub-Account
	Value Trust Series 0
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05 (b)
Units, beginning of period	18,887		46		—
Units issued	137,891		22,949		46
Units redeemed	(33,129	)	(4,108	)	—
Units, end of period	123,649		18,887		46
Unit value, end of period $	15.05		13.90		11.48
Assets, end of period $	1,860,649		262,517		527
Investment income ratio*	1.55	%	0.08	%	0.00	%
Total return, lowest to highest**	(0.18)% to 8.26	%	13.77% to 21.03	%	5.54	%

(b) Reflects the period from commencement of operations on May 2, 2005 through December 31, 2005.

	Sub-Account
	Value Trust Series 1
	Year Ended Dec. 31/07		Year Ended Dec. 31/06		Year Ended Dec. 31/05		Year Ended Dec. 31/04		Year Ended Dec. 31/03
Units, beginning of period	792,456		800,166		857,071		927,735		901,064
Units issued	56,113		175,256		64,856		103,866		172,244
Units redeemed	(171,323	)	(182,966	)	(121,761	)	(174,530	)	(145,573	)
Units, end of period	677,246		792,456		800,166		857,071		927,735
Unit value, end of period $	32.36		29.90		24.71		21.95		19.06
Assets, end of period $	21,916,100		23,697,339		19,767,664		18,811,290		17,679,245
Investment income ratio*	1.34	%	0.37	%	0.62	%	0.60	%	1.19	%
Total return**	8.22	%	21.04	%	12.56	%	15.18	%	38.76	%

158

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

Notes to Financial Statements (continued)

(*) These ratios, which are not annualized, represent the dividends, excluding distributions of capital gains, received by the sub-account from the underlying Trust portfolio, net of management fees assessed by the Trust portfolio adviser, divided by the average net assets of the sub-account. The recognition of investment income by the sub-account is affected by the timing of the declarations of dividends by the underlying Trust portfolio in which the sub-accounts invest. It is the practice of the Trusts, for income tax reasons, to declare dividends in April for investment income received in the previous calendar year for all sub-accounts of the Trust except for the Money Market Trust which declares and reinvests dividends on a daily basis. Any dividend distribution received from a sub-account of the Trust is reinvested immediately, at the net asset value, in shares of that sub-account and retained as assets of the corresponding sub-account so that the unit value of the sub-account is not affected by the declaration and reinvestment of dividends.

(**) These ratios, which are not annualized, represent the total return for the period indicated, including changes in the value of the underlying Trust portfolio. There are no expenses of the Account that result in a direct reduction in unit values. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented.

159

PART C

OTHER INFORMATION

Item 26. Exhibits

The following exhibits are filed as part of this Registration Statement:

(a) Resolutions of Board of Directors of the John Hancock Life Insurance Company (U.S.A.) (formerly, The Manufacturers Life Insurance Company (U.S.A.)) establishing Separate Account N. Incorporated by reference to exhibit A (1) to the pre-effective amendment no. 1 file number 333-71312 filed with the Commission on January 2, 2002.

(b) Not applicable.

(c) (1) Distribution Agreement between John Hancock Life Insurance Company (U.S.A.) and ManEquity, Inc. dated January 1, 2001. Incorporated by reference to post-effective amendment number 9 file number 333-85284 filed with the Commission in April, 2007.

(2) Form of General Agent Servicing Agreement by and among John Hancock Life Insurance Company (U.S.A.) and John Hancock Distributors. Incorporated by reference to pre-effective number 1 file number 333-126668 filed with the Commission on October 12, 2005.

(3) Form of General Agent Selling Agreement by and among John Hancock Life Insurance Company, John Hancock Variable Life Insurance Company, John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company of New York and John Hancock Distributors. Incorporated by reference to post-effective amendment number 9 file number 333-85284 filed with the Commission in April, 2007.

(d) (1) Form of Specimen Flexible Premium Variable Life Insurance Policy filed herewith.

(2) Form of Specimen Enhanced Cash Value Rider. Incorporated by reference to the initial registration statement file number 333-148991 filed with the Commission on January 30, 2008.

(3) Form of Speciman Policy Split Option Rider. Incorporated by reference to the initial registration statement file number 333-148991 filed with the Commission on January 30, 2008.

(4) Form of Specimen Return of Premium Death Benefit Rider. Incorporated by reference to the initial registration statement file number 333-148991 filed with the Commission on January 30, 2008.

(5) Form of Specimen Overloan Protection Rider. Incorporated by reference to the initial registration statement file number 333-148991 filed with the Commission on January 30, 2008.

(6) Form of Specimen Four Year Term Rider. Incorporated by reference to the initial registration statement file number 333-148991 filed with the Commission on January 30, 2008.

(7) Form of Specimen Enhanced Yield Fixed Account Rider. Incorporated by reference to the initial registration statement file number 333-148991 filed with the Commission on January 30, 2008.

(e) Form of Specimen Application for the Majestic Survivorship VULX Insurance Policy filed herewith.

(f) (1) Restated Articles of Redomestication of the John Hancock Life Insurance Company (U.S.A.) (formerly, The Manufacturers Life Insurance Company (U.S.A.)) dated December 30, 1992. Incorporated by reference to post-effective amendment number 9 file number 333-85284 filed with the Commission in April, 2007.

(a) Amendment to the Articles of Redomestication of the John Hancock Life Insurance Company (U.S.A.) (formerly, The Manufacturers Life Insurance Company (U.S.A.)) dated July 16, 2004. Incorporated by reference to pre-effective amendment no. 1 file number 333-126668 filed with the Commission on October 12, 2005.

(b) Amendment to the Articles of Redomestication dated January 1, 2005. Incorporated by reference to post-effective amendment number 9 file number 333-85284 filed with the Commission in April, 2007.

(2) By-laws of the John Hancock Life Insurance Company (U.S.A.) (formerly, The Manufacturers Life Insurance Company (U.S.A.)) dated December 2, 1992. Incorporated by reference to pre-effective amendment no. 1 file number 333-126668 filed with the Commission on October 12, 2005.

(a) Amendment to the By-laws of the John Hancock Life Insurance Company (U.S.A.) (formerly, The Manufacturers Life Insurance Company (U.S.A.)) dated June 7, 2000. Incorporated by reference to pre-effective amendment no. 1 file number 333-126668 filed with the Commission on October 12, 2005.

(b) Amendment to the By-laws of the John Hancock Life Insurance Company (U.S.A.) (formerly, The Manufacturers Life Insurance Company (U.S.A.)) dated March 12, 1999. Incorporated by reference to pre-effective amendment no. 1 file number 333-126668 filed with the Commission on October 12, 2005.

(c)Amendment to the By-laws of the John Hancock Life Insurance Company (U.S.A.) (formerly, The Manufacturers Life Insurance Company (U.S.A.)) dated July 16, 2004. Incorporated by reference to post-effective amendment number 9 file number 333-85284 filed with the Commission in April, 2007.

(g) The Depositor maintains reinsurance arrangements in the normal course of business, none of which are material.

(h)(1) Form of Participation Agreement among The Manufacturers Insurance Company (U.S.A.), The Manufacturers Insurance Company of New York, PIMCO Variable Insurance Trust and PIMCO Advisors Distributors LLC dated April 30, 2004. Incorporated by reference to pre-effective amendment no. 1 file number 333-126668 filed with the Commission on October 12, 2005.

(2) 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 file number 333-126668 filed with the Commission on October 12, 2005.

(3) 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 number 9 file number 333-85284 filed with the Commission in April, 2007.

(4) 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 on behalf of series of the Trust that are feeder funds of the American Funds Insurance Series dated April 16, 2007. Incorporated by reference to post-effective amendment number 9 file number 333-85284 filed with the Commission in April, 2007.

(i) (1) Service Agreement between John Hancock Life Insurance Company (U.S.A.) (formerly, The Manufacturers Life Insurance Company (U.S.A.)) and John Hancock Life Insurance Company dated April 28, 2004. Incorporated by reference to post-effective amendment number 9 file number 333-85284 filed with the Commission in April, 2007.

(j) Not applicable.

(k) Opinion and consent of counsel regarding the legality of the securities being registered is filed herewith.

(l) Not Applicable.

(m) Not Applicable.

(n) Consents of Independent Registered Public Accounting Firm are filed herewith.

(o) Not Applicable.

(p) Not Applicable.

(q) Memorandum Regarding Issuance, Face Amount Increase, Redemption and Transfer Procedures for the Policies. Incorporated by reference to Exhibit A(6) to pre-effective amendment no. 1 file number 333-100597 filed with the Commission on December 16, 2002.

Powers of Attorney

(i) Powers of Attorney for James R. Boyle, Marc Costantini , John D. DesPrez III, Steven A. Finch, Katherine MacMillan, Stephen R. McArthur, Hugh McHaffie, Rex Schlaybaugh, Jr., Diana Scott, and Warren A. Thomson are filed herewith.

Item 27. Directors and Officers of the Depositor

OFFICERS AND DIRECTORS OF JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) as of April 1, 2008

Name and Principal Business Address	Position with Depositor
Directors
James R. Boyle**	Director
Marc Costantini*	Director
John D. DesPrez III*	Director
Steven A. Finch**	Director
Katherine MacMillan*****	Director
Stephen R. McArthur****	Director
Hugh McHaffie*	Director
Rex Schlaybaugh, Jr.*******	Director

Name and Principal Business Address	Position with Depositor
Diana Scott*	Director
Warren A. Thomson**	Director
Officers
John D. DesPrez III*	Chairman and President
Hugh McHaffie*	Executive Vice President, Wealth Management
James R. Boyle**	Executive Vice President, Life Insurance
Stephen R. McArthur****	Executive Vice President and General Manager, Reinsurance
Steven A. Finch**	Executive Vice President and General Manager, JH Insurance
Katherine MacMillan*****	Executive Vice President and General Manager, JH RPS
Marc Costantini*	Executive Vice President and General Manager, JH Annuities
Jonathan C. Chiel*	Executive Vice President and General Counsel
Warren A. Thomson**	Executive Vice President US Investments
Scott Hartz**	Executive Vice President and Chief Investment Officer, US Investments
Lynne Patterson*	Senior Vice President and Chief Financial Officer
Diana Scott*	Senior Vice President, Human Resources
Peter Levitt	Senior Vice President and Treasurer
Jeffery J. Whitehead	Vice President and Controller
Emanuel Alves*	Vice President, Counsel and Corporate Secretary
Mitchell A. Karman**	Vice President, Chief Compliance Officer and Counsel
John Brabazon**	Vice President & CFO, US Investments
Peter Mitsopoulos******	Vice President, Treasury
Krishna Ramdial*****	Vice President, Treasury
Philip Clarkson**	Vice President, Taxation
Brian Collins****	Vice President, Taxation
John H. Durfey****	Assistant Secretary
Kwong Yiu****	Assistant Secretary
Grace O’Connell*	Assistant Secretary
Deanna Garland**	Assistant Secretary

* Principal Business Office is 601 Congress Street, Boston, MA 02210

** Principal Business Office is 197 Clarendon Street, Boston, MA 02117

*** Principal Business Office is 200 Clarendon Street, Boston, MA 02117

**** Principal Business Office is 200 Bloor Street, Toronto, Canada M4W1E5

***** Principal Business Office is 250 Bloor Street, Toronto, Canada M4W1E5

****** Principal Business Office is 380 Stuart Street, Boston, MA 02117

******* Principal Business Office is 400 Renaissance Center, Detroit, MI 48243

Item 28. Persons Controlled by or Under Common Control with the Depositor or the Registrant

Registrant is a separate account of John Hancock (USA), operated as a unit investment trust. Registrant supports benefits payable under John Hancock USA’s variable life insurance policies by investing assets allocated to various investment options in shares of John Hancock Trust and other mutual funds registered under the Investment Company Act of 1940 as open-end management investment companies of the “series” type.

A list of persons directly or indirectly controlled by or under common contract with John Hancock (USA) as of December 31, 2007 appears below:

Subsidiary Name

Manulife Reinsurance Limited (Bermuda)

Cavalier Cable, Inc.

John Hancock Investment Management Services, LLC

Manulife Reinsurance (Bermuda) Limited

Manulife Service Corporation

John Hancock Life Insurance Company of NewYork

Ennal, Inc.

John Hancock Distributors LLC

Item 29. Indemnification

The Form of Selling Agreement or Service Agreement between John Hancock Distributors LLC (“JH Distributors”) and various broker-dealers may provide that the selling broker-dealer indemnify and hold harmless JH Distributors and the Company, including their affiliates, officers, directors, employees and agents against losses, claims, liabilities or expenses (including reasonable attorney’s fees), arising out of or based upon a breach of the Selling or Service Agreement, or any applicable law or regulation or any applicable rule of any self-regulatory organization or similar provision consistent with industry practice.

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 that 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 30. Principal Underwriter

(a) Set forth below is information concerning other investment companies for which JH Distributors, the principal underwriter of the contracts, acts as investment adviser or principal underwriter.

Name of Investment Company	Capacity in Which Acting
John Hancock Variable Life Separate Account S	Principal Underwriter
John Hancock Variable Life Separate Account U	Principal Underwriter
John Hancock Variable Life Separate Account V	Principal Underwriter
John Hancock Variable Life Separate Account UV	Principal Underwriter
John Hancock Variable Annuity Separate Account I	Principal Underwriter
John Hancock Variable Annuity Separate Account JF	Principal Underwriter
John Hancock Variable Annuity Separate Account U	Principal Underwriter
John Hancock Variable Annuity Separate Account V	Principal Underwriter
John Hancock Variable Annuity 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 H	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 J	Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account K	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 B	Principal Underwriter
John Hancock Life Insurance Company of New York Separate Account A	Principal Underwriter

(b) John Hancock Life Insurance Company (U.S.A.) is the sole member of JH Distributors and the following comprise the Board of Managers and Officers of JH Distributors as of April 1, 2008.

Name	Title
Edward Eng*****	Board Manager
Steven A. Finch**	Board Manager
Lynne Patterson*	Board Manager
Warren A. Thomson**	Board Manager
Christopher Walker****	Board Manager

Name	Title
Karen Walsh*	Board Manager
Emanuel Alves*	Secretary
Philip Clarkson***	Vice President, U.S. Taxation
Brian Collins****	Vice President, U.S. Taxation
David Crawford****	Assistant Secretary
Edward Eng*****	Vice President, Product Development Retirement Plan Services
Steven A. Finch**	President and CEO
Peter Levitt*****	Senior Vice President, Treasurer
Heather Justason****	Chief Operating Officer
Jeff Long*	Chief Financial Officer and Financial Operations Principal
Kathleen Pettit**	Vice President and Chief Compliance Officer
Krishna Ramdial*****	Vice President, Treasury
Pamela Schmidt**	General Counsel
Karen Walsh*	Vice President, Annuity Distribution

* Principal Business Office is 601 Congress Street, Boston, MA 02210

** Principal Business Office is 197 Clarendon Street, Boston, MA 02117

**** Principal Business Office is 200 Bloor Street, Toronto, Canada M4W1E5

***** Principal Business Office is 250 Bloor Street, Toronto, Canada M4W1E5

(c) John Hancock Distributors LLC

The information contained in the section titled “Principal Underwriter and Distributor” in the Statement of Additional Information, contained in this Registration Statement, is hereby incorporated by reference in response to Item 31.(c)(2-5).

Item 31. Location of Accounts and Records

The following entities prepare, maintain, and preserve the records required by Section 31(a) of the Act for the Registrant through written agreements between the parties to the effect that such services will be provided to the Registrant for such periods prescribed by the Rules and Regulations of the Commission under the Act and such records will be surrendered promptly on request: John Hancock Distributors LLC, John Hancock Place, Boston, Massachusetts 02117, serves as Registrant’s distributor and principal underwriter, and, in such capacities, keeps records regarding shareholders account records, cancelled stock certificates. John Hancock Life Insurance Company (U.S.A.) (at the same address), in its capacity as Registrant’s depositor keeps all other records required by Section 31 (a) of the Act.

Item 32. Management Services

All management services contracts are discussed in Part A or Part B.

Item 33. Fee Representation

Representation of Insurer Pursuant to Section 26 of the Investment Company Act of 1940

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

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has caused this pre-effective amendment to the Registration Statement to be signed on its behalf in the City of Boston, Massachusetts, as of the 6th day of June, 2008.

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

SEPARATE ACCOUNT A

(Registrant)

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

By: /s/ John D. DesPrez III

John D. DesPrez III

Chairman

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

(Depositor)

By: /s/ John D. DesPrez III

John D. DesPrez III

Chairman

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, this pre-effective amendment to the Registration Statement has been signed by the following persons in the capacities indicated as of the 6th day of June, 2008.

/s/ Lynne Patterson Lynne Patterson	Senior Vice President and Chief Financial Officer
/s/ Jeffery Whitehead Jeffery Whitehead	Vice President and Controller
* James R. Boyle	Director
* Marc Costantini	Director
* John D. DesPrez III	Director
* Steven A. Finch	Director
* Katherine MacMillan	Director
* Hugh McHaffie	Director
* John R. Ostler	Director
* Rex Schlaybaugh Jr.	Director
* Diana Scott	Director
* Warren Thomson	Director
/s/ James C. Hoodlet James C. Hoodlet Pursuant to Power of Attorney