AUDITED STATUTORY - BASIS FINANCIAL STATEMENTS

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

For the Years Ended December 31, 2020, 2019 and 2018

With Report of Independent Auditors

AUDITED STATUTORY-BASIS FINANCIAL STATEMENTS

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

Years Ended December 31, 2020, 2019 and 2018

Contents

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

Report of Independent Auditors

The Board of Directors and Stockholder

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

We have audited the accompanying statutory-basis financial statements of John Hancock Life Insurance Company (U.S.A.) (the Company), which comprise the balance sheets as of December 31, 2020 and 2019, and the related statements of operations, changes in capital and surplus and cash flow for each of the three years in the period ended December 31, 2020, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

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

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

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

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

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

As described in Note 2 to the statutory-basis financial statements, the Company prepared these financial statements using accounting practices prescribed or permitted by the Michigan Department of Insurance and Financial Services, which is a basis of accounting other than U.S. generally accepted accounting principles. The effects on the financial statements of the variances between these statutory accounting practices and U.S. generally accepted accounting principles, although not reasonably determinable, are presumed to be material.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles paragraph, the statutory-basis financial statements referred to above do not present fairly, in conformity with U.S. generally accepted accounting principles, the financial position of the Company at December 31, 2020 and 2019, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2020.

1

Opinion on Statutory-Basis of Accounting

In our opinion, the statutory-basis financial statements referred to above present fairly, in all material respects, the financial position of the Company at December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, on the basis of accounting described in Note 2.

/s/ Ernst & Young LLP

Boston, Massachusetts

March 31, 2021

2

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

BALANCE SHEETS—STATUTORY BASIS

	December 31,
	2020		2019
(in millions)
Admitted assets
Cash and invested assets:
Bonds	$	49,194	$	47,193
Stocks:
Preferred stocks		36		15
Common stocks		1,082		1,050
Investments in affiliates		2,879		2,824
Mortgage loans on real estate		11,573		11,647
Real estate:
Company occupied		151		161
Investment properties		4,058		4,045
Cash, cash equivalents and short-term investments		6,620		3,816
Policy loans		2,765		2,888
Derivatives		20,197		13,049
Receivable for collateral on derivatives		210		154
Receivable for securities		1		2
Other invested assets		9,388		9,487
Total cash and invested assets		108,154		96,331
Investment income due and accrued		775		701
Premiums due		49		77
Amounts recoverable from reinsurers		360		216
Funds held by or deposited with reinsured companies		2,890		3,042
Other reinsurance receivable		284		225
Amounts due from affiliates		171		246
Other assets		1,981		1,720
Assets held in separate accounts		151,488		140,747
Total admitted assets	$	266,152	$	243,305

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

3

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

BALANCE SHEETS—STATUTORY BASIS

	December 31,
	2020		2019
(in millions)
Liabilities and capital and surplus
Liabilities:
Policy and contract obligations:
Policy reserves	$	68,229	$	65,942
Policyholders’ and beneficiaries’ funds		2,494		2,260
Consumer notes		138		138
Dividends payable to policyholders		348		376
Policy benefits in process of payment		577		456
Other amount payable on reinsurance		502		545
Other policy obligations		40		46
Total policy and contract obligations		72,328		69,763
Payable to parent and affiliates		2,725		1,934
Transfers to (from) separate account, net		(325)		(323)
Asset valuation reserve		2,888		2,798
Reinsurance in unauthorized companies		55		190
Funds withheld from unauthorized reinsurers		167		161
Interest maintenance reserve		1,795		1,557
Net deferred tax liability		79		101
Derivatives		13,303		7,297
Payables for collateral on derivatives		2,096		828
Payables for securities		192		520
Funds held under coinsurance		8,904		8,074
Other general account obligations		1,449		1,182
Obligations related to separate accounts		151,488		140,747
Total liabilities		257,144		234,829
Capital and surplus:
Preferred stock (par value $1; 50,000,000 shares authorized; 100,000 shares issued and outstanding at December 31, 2020 and 2019)		-		-
Common stock (par value $1; 50,000,000 shares authorized; 4,728,940 shares issued and outstanding at December 31, 2020 and 2019)		5		5
Paid-in surplus		3,219		3,219
Surplus notes		585		585
Unassigned surplus		5,199		4,667
Total capital and surplus		9,008		8,476
Total liabilities and capital and surplus	$	266,152	$	243,305

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

4

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

STATEMENTS OF OPERATIONS—STATUTORY-BASIS

	Years Ended December 31,
	2020			2019			2018
(in millions)
Premiums and other revenues:
Life, long-term care and annuity premiums, net	$	11,667		$	14,948		$	5,816
Consideration for supplementary contracts with life contingencies		141			145			132
Net investment income		4,095			4,406			4,665
Amortization of interest maintenance reserve		149			151			179
Commissions and expense allowance on reinsurance ceded		593			638			468
Reserve adjustment on reinsurance ceded		(4,593	)		(7,575	)		(7,820)
Separate account administrative and contract fees		1,683			1,711			1,786
Other revenue		71			145			193
Total premiums and other revenues		13,806			14,569			5,419
Benefits paid or provided:
Death, surrender and other contract benefits, net		12,880			12,851			12,322
Annuity benefits		787			1,122			1,735
Disability and long-term care benefits		943			853			801
Interest and adjustments on policy or deposit-type funds		48			32			(52)
Payments on supplementary contracts with life contingencies		210			207			203
Increase (decrease) in life and long-term care reserves		2,297			1,863			(5,078)
Total benefits paid or provided		17,165			16,928			9,931
Insurance expenses and other deductions:
Commissions and expense allowance on reinsurance assumed		975			1,052			1,078
General expenses		972			1,041			1,186
Insurance taxes, licenses and fees		149			159			167
Net transfers to (from) separate accounts		(6,427	)		(7,050	)		(7,616)
Investment income ceded		2,664			1,577			1,052
Other (income) deductions		(264	)		20			(459)
Total insurance expenses and other deductions		(1,931	)		(3,201	)		(4,592)
Income (loss) from operations before dividends to policyholders, federal income taxes and net realized capital gains (losses)		(1,428	)		842			80
Dividends to policyholders		92			110			111
Income (loss) from operations before federal income taxes and net realized capital gains (losses)		(1,520	)		732			(31)
Federal income tax expense (benefit)		(64	)		(286	)		(725)
Income (loss) from operations before net realized capital gains (losses)		(1,456	)		1,018			694
Net realized capital gains (losses)		2,066			198			340
Net income (loss)	$	610		$	1,216		$	1,034

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

5

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

STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS—STATUTORY-BASIS

	Preferred and Common Stock		Paid-in Surplus		Surplus Notes		Unassigned Surplus (Deficit)			Total Capital and Surplus
(in millions)
Balances at January 1, 2018	$	5	$	3,219	$	585	$	4,300		$	8,109
Net income (loss)								1,034			1,034
Change in net unrealized capital gains (losses)								(220	)		(220)
Change in net deferred income tax								(17	)		(17)
Decrease (increase) in non-admitted assets								43			43
Change in liability for reinsurance in unauthorized reinsurance								3			3
Decrease (increase) in asset valuation reserves								125			125
Dividend paid to parent								(600	)		(600)
Change in surplus as a result of reinsurance								380			380
Other adjustments, net						-		13			13
Balances at December 31, 2018		5		3,219		585		5,061			8,870
Net income (loss)								1,216			1,216
Change in net unrealized capital gains (losses)								397			397
Change in net deferred income tax								(78	)		(78)
Decrease (increase) in non-admitted assets								(46	)		(46)
Change in liability for reinsurance in unauthorized reinsurance								(189	)		(189)
Decrease (increase) in asset valuation reserves								(817	)		(817)
Dividend paid to parent								(845	)		(845)
Change in surplus as a result of reinsurance								(29	)		(29)
Other adjustments, net						-		(3	)		(3)
Balances at December 31, 2019		5		3,219		585		4,667			8,476
Net income (loss)								610			610
Change in net unrealized capital gains (losses)								683			683
Change in net deferred income tax								149			149
Decrease (increase) in non-admitted assets								(95	)		(95)
Change in liability for reinsurance in unauthorized reinsurance								135			135
Change in reserve due to change in valuation basis								20			20
Decrease (increase) in asset valuation reserves								(90	)		(90)
Dividend paid to parent								(975	)		(975)
Change in surplus as a result of reinsurance								85			85
Other adjustments, net						-		10			10
Balances at December 31, 2020	$	5	$	3,219	$	585	$	5,199		$	9,008

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

6

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

STATEMENTS OF CASH FLOW—STATUTORY-BASIS

	Years Ended December 31,
	2020			2019			2018
(in millions)
Operations
Premiums and other considerations collected, net of reinsurance	$	14,021		$	15,079		$	13,901
Net investment income received		4,139			4,394			4,828
Separate account fees		1,683			1,711			1,786
Commissions and expenses allowance on reinsurance ceded		593			638			468
Miscellaneous income		304			207			668
Benefits and losses paid		(19,600	)		(23,052	)		(22,601)
Net transfers from (to) separate accounts		6,462			7,038			7,670
Commissions and expenses (paid) recovered		(4,808	)		(3,467	)		(3,763)
Dividends paid to policyholders		(120	)		(127	)		(126)
Federal and foreign income and capital gain taxes (paid) recovered		(479	)		677			(617)
Net cash provided by (used in) operating activities		2,195			3,098			2,214
Investment activities
Proceeds from sales, maturities, or repayments of investments:
Bonds		18,253			15,032			22,532
Stocks		203			142			566
Mortgage loans on real estate		919			1,698			880
Real estate		315			106			2,507
Other invested assets		1,054			1,558			2,066
Derivatives		1,969			-			-
Net gains (losses) on cash, cash equivalents and short term investments		18			1			(4)
Total investment proceeds		22,731			18,537			28,547
Cost of investments acquired:
Bonds		21,825			17,230			25,992
Stocks		118			105			114
Mortgage loans on real estate		830			1,261			1,975
Real estate		216			359			213
Other invested assets		1,307			1,354			2,530
Derivatives		-			139			12
Total cost of investments acquired		24,296			20,448			30,836
Net increase (decrease) in receivable/payable for securities and collateral on derivatives		885			(395	)		(547)
Net (increase) decrease in policy loans		123			(100	)		(62)
Net cash provided by (used in) investment activities		(557	)		(2,406	)		(2,898)
Financing and miscellaneous activities
Borrowed funds		497			(10	)		(42)
Net deposits (withdrawals) on deposit-type contracts		233			(135	)		(288)
Dividend paid to Parent		(975	)		(845	)		(600)
Other cash provided (applied)		1,411			1,126			471
Net cash provided by (used in) financing and miscellaneous activities		1,166			136			(459)
Net increase (decrease) in cash, cash equivalents and short-term investments		2,804			828			(1,143)
Cash, cash equivalents and short-term investments at beginning of year		3,816			2,988			4,131
Cash, cash equivalents and short-term investments at end of year	$	6,620		$	3,816		$	2,988
Non-cash activities during the year:
Premium and other operating activity related to reinsurance transactions, net	$	2,166		$	(109	)	$	7,873
Transfer of invested assets related to reinsurance transactions and other affiliate transactions, net		(2,166	)		109			(7,873)

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

7

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

1. Organization and Nature of Operations

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

The Company is licensed to conduct insurance business in 49 states, the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands, and provides a wide range of financial protection and wealth management products and services to both individual and institutional customers located primarily in the United States. Through its insurance operations, the Company offers a variety of individual life insurance products that are distributed through multiple distribution channels, including insurance agents, brokers, banks, financial planners, and direct marketing. The Company also offers mutual fund products and services which include a variety of retirement products to retirement plans. The Company distributes these products through multiple distribution channels, including insurance agents and affiliated brokers, securities brokerage firms, financial planners, pension plan sponsors, pension plan consultants, and banks. The Company discontinued new sales of its individual long-term care product but maintains in-force retail and group long-term care business. Effective March 31, 2018, the Company discontinued new sales of its corporate and bank-owned life insurance products.

The Company is also registered as a foreign reinsurer in several jurisdictions outside of the United States as part of its International Group Program that offers pooling services and reinsurance coverage for group employee contracts issued by its network partners to local companies, which are subsidiaries, branches or affiliates of multinational corporations.

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

The Company has two wholly-owned life insurance subsidiaries, John Hancock Life Insurance Company of New York (“JHNY”) and John Hancock Life & Health Insurance Company (“JHLH”), as well as a wholly-owned captive insurance subsidiary, Manulife (Michigan) Reassurance Company (“MMRC”).

The Company’s results and operations have been and may continue to be adversely impacted by the COVID-19 pandemic and the recent economic downturn. The adverse effects include but are not limited to significant volatility in equity markets and decline in interest rates, increase in credit risk, strain on commodity markets, foreign currency exchange rate volatility, increases in insurance claims, persistency and redemptions, and disruption of business operations. The breadth and depth of these events and how long they will continue have introduced additional uncertainty around estimates used in determining the carrying value of certain assets and liabilities included in these financial statements.

2. Significant Accounting Policies

Use of Estimates

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

Basis of Presentation

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

8

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

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

For bonds other than loan-backed and structured securities, the Company has a process in place to identify securities that could potentially have an impairment that is other-than-temporary. The Company recognizes other-than-temporary impairment losses on bonds with unrealized losses when the entity does not have the intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in value. Declines in value due to credit difficulties are also considered to be other-than-temporarily impaired when the Company does not have the intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in value. The entire difference between amortized cost and fair value on such bonds with credit difficulties is recognized as an impairment loss in income.

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

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

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

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

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

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

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

9

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

Policy loans are reported at unpaid principal balances.

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

Other invested assets consist of ownership interests in partnerships and limited liability companies (“LLCs”) which are carried based on the underlying audited GAAP equity, with the exception of affordable housing tax credit properties, which are carried at amortized cost. The related net unrealized capital gains (losses) are reported in unassigned surplus, net of any adjustments for federal income taxes. The Company records its share of income using the most recent financial information available, which is generally on a three month lag. Depending on the timing of receipt of the audited financial statements of these other invested assets, the investee level financial data may be up to one year in arrears.

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

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

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

Separate Accounts: Separate account assets and liabilities reported in the accompanying Balance Sheets represent funds that are separately administered, principally for annuity contracts and variable life insurance policies, and for which the contract holder, rather than the Company, bears the investment risk. Separate account obligations are intended to be satisfied from separate account assets and not from assets of the general account. Separate accounts are generally reported at fair value. The operations of the separate accounts are not included in the Statements of Operations; however, income earned on amounts initially invested by the Company in the formation of new separate accounts is included in other revenue. Fees charged to contract holders, principally mortality, policy administration, and surrender charges are included in separate account administrative and contract fees. The assets in the separate accounts are not pledged to others as collateral or otherwise restricted. For the years ended December 31, 2020, 2019 and 2018, there were no gains (losses) on transfers of assets from the general account to the separate account.

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

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

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

10

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

• The Company waives deduction of deferred fractional premiums on the death of lives insured and annuity contract holders and returns any premium beyond the date of death. Surrender values on policies do not exceed the corresponding benefit reserves. At December 31, 2020 and 2019, the Company held reserves of $ 1,055 million and $ 1,032 million, respectively, on insurance in-force for which gross premiums were less than net premiums according to the standard of valuation set by the State of Michigan.

• Reserves for individual life insurance policies are maintained using the 1941, 1958, 1980, 2001 and 2017 Commissioner’s Standard Ordinary Mortality Tables and using principally the Commissioner’s Reserve Valuation Method. Reserves and assumptions for policies following Valuation Manual 20 (“VM-20”) or Valuation Manual 21 (“VM-21”) will be outlined in the Company’s principle-based reserving (“PBR”) Actuarial Report, following Valuation Manual 31 (“VM-31”).

• Annuity and supplementary contracts with life contingency reserves are based principally on modifications of the 1937 Standard Annuity Table, the Group Annuity Mortality Tables for 1951, 1971, 1983, and 1994, the 1971 and 1983 Individual Annuity Mortality Tables, the A-2000 Individual Annuity Mortality Table, and the 2012 Individual Annuity Reserving Mortality Table.

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

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

• For life insurance, the calendar year exact method is used to calculate the reserve at December 31, 2020 and 2019. Reserves at December 31, 2020 and 2019 are calculated based on the rated age. For certain policies with substandard table ratings, substandard multiple extras are applied via the Lotter method.

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

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

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

• Reserves for variable deferred annuity contracts are calculated in accordance with Valuation Manual 21 (“VM-21”) which has replaced Actuarial Guideline 43 (“AG-43”).

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

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

11

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The Company records a liability for unsecured policy reserves ceded to reinsurers not authorized in the State of Michigan to assume such business. Changes to those amounts are credited or charged directly to unassigned surplus. Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves. Commissions and expense allowances allowed by reinsurers on business ceded are reported as income when received. Investment income ceded includes separate account fee income, net investment income and realized investment and other gains (losses), which was ceded to the affiliated reinsurers. NAIC SAP prescribes that no gain be recognized upon inception of a reinsurance treaty. The initial gain is recorded directly to unassigned surplus and released into income over the life of the treaty.

Federal Income Taxes: Total federal income taxes are based upon the Company’s best estimate of its current and deferred tax assets or liabilities. Current tax expense is reported in the Statements of Operations as federal income tax expense if resulting from operations and within net realized capital gains (losses) if resulting from capital transactions. Changes in the balances of deferred taxes, which provide for book versus tax temporary differences, are subject to limitations and are reported within various lines within surplus. The provision for federal and foreign income taxes incurred in the Statements of Operations is different from that which would be obtained by applying the statutory federal income tax rate to income before income tax (including realized capital gains). For additional information, see the Federal Income Taxes Note for reconciliation of effective tax rate.

Participating Insurance and Policyholder Dividends: Participating business represented approximately 14% and 15% of the Company’s aggregate reserve for life contracts at December 31, 2020 and 2019, respectively. The amount of policyholders’ dividends to be paid is approved annually by the Company’s Board of Directors. Policyholder dividends are recognized when declared rather than over the term of the related policies. The determination of the amount of policyholders’ dividends is complex and varies by policy type. In general, the aggregate amount of policyholders’ dividends is calculated based upon actual interest, mortality, morbidity, persistency, and expense experience for the year, as well as management’s judgment as to the appropriate level of statutory surplus to be retained by the Company.

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

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

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

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

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

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

12

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

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

The effects of the foregoing variances from GAAP on the accompanying statutory-basis financial statements have not been determined, but are presumed to be material.

3. Permitted Statutory Accounting Practices

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

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

As of December 31, 2020 and 2019, the Director had not prescribed or permitted the Company to use any accounting practices that would result in the Company’s income or financial position to deviate from NAIC SAP.

13

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

4. Accounting Changes

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

Adoption of New Accounting Standards

Effective January 1, 2020, NAIC Valuation Manual 21 (“VM-21”) – Requirements for Principle-Based Reserves for Variable Annuities was adopted as the new statutory reserving standard replacing Actuarial Guideline 43 (“AG43”) – Commissioners Annuity Reserve Valuation Method (“CARVM”) for Variable Annuities. The requirement is applicable to all variable annuity business in force. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

Effective December 31, 2019, the NAIC made non-substantive revisions to Statement of Statutory Accounting Principles (“SSAP”) No. 100R, Fair Value Measurements to adopt with modification the disclosure amendments reflected in Accounting Standards Update (“ASU”) 2018-13 Changes to the Disclosure Requirements for Fair Value Measurement. The revisions included elimination of certain fair value disclosures. The Company adopted the amendment in 2019. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

Effective January 1, 2018, the NAIC made substantive revisions to SSAP No. 100, Fair Value Measurements. The revised guidance allows the use of net asset value as a practical expedient for fair value when 1) specifically allowed in a SSAP or 2) when specific conditions exist. The Company adopted the amendment in 2018. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

Effective January 1, 2018, the NAIC made substantive revisions to SSAP No. 86, Accounting for Derivative Instruments and Hedging, Income Generation, and Replication (Synthetic Asset) Transactions to adopt ASU 2017-04 Settlement of Valuation Margin. The revised guidance requires the recognition of changes in variation margin as unrealized gains/losses until the derivative contract has matured, terminated and/or expired. The guidance applies to both over-the-counter (“OTC”) derivatives and (“ETF”) exchange-traded futures, regardless of whether the counterparty or exchange considers the variation margin payment to be collateral or a legal settlement. The Company adopted the amendment in 2018. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

In November 2018, the NAIC adopted SSAP No. 108 – Derivatives Hedging Variable Annuity Guarantees as a substantive guidance which permits and specifies the requirements for applying a special accounting treatment for derivative contracts hedging variable annuity guarantee benefits that are subject to fluctuations as a result of interest rate sensitivity. The provisions of SSAP No. 108 are separate and distinct from the statutory guidance in SSAP No. 86 - Derivatives. Application of the adopted guidance is limited to the derivative transactions specified in SSAP No. 108 and permitted only if all of the requirements for the special accounting treatment are met. The guidance is effective beginning January 1, 2020. The Company has not elected hedge accounting under SSAP 108.

In November 2018, the NAIC made non-substantive revisions to SSAP No. 51R – Life Contracts to adopt ASU 2018-28 Updates to Liquidity Disclosures. The revisions included enhancements to the existing disclosures on annuity actuarial reserves and deposit type liabilities by withdrawal characteristics and added life liquidity disclosures. The Company adopted the amendment in 2019. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

14

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

In November 2018, the NAIC made non-substantive revisions to SSAP No. 86 - Derivatives to incorporate hedge documentation and assessment efficiencies from ASU 2017-12 Targeted Improvements to Accounting for Hedging Activities as issued by Financial Accounting Standards Board (“FASB”). The revisions will allow companies to perform subsequent assessments of hedge effectiveness qualitatively if certain conditions are met, allow companies more time to perform the initial quantitative hedge effectiveness assessment and clarify that companies may apply the “criterial terms match” method for a group of forecasted transactions if they meet the requirements. The revisions were effective beginning January 1, 2019 and the Company adopted the amendment in 2019. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

In March 2017, the NAIC made substantive revisions to SSAP No. 69 – Statement of Cash Flow to adopt ASU 2016-15 Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments as issued by the FASB, without modifications. The revisions clarified the classification of eight specific cash flow issues with the objective of reducing diversity in practice. The amendment is to be applied retrospectively, effective for fiscal years beginning after December 15, 2018 and interim periods within those years. The Company adopted the amendment in 2019. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

In June 2017, the NAIC adopted revisions to SSAP No. 37, Mortgage Loans. The revision requires an age analysis of mortgage loans disclosure, aggregated by type, with identification of mortgage loans in which the entity is a participant or co-lender in a mortgage loan agreement, capturing: 1) recorded investment of current mortgage loans, 2) recorded investment of mortgage loans classified as 30-59 days, 60-89 days, 90-179 days, and 180 days and greater past due; 3) recorded investment of mortgage loans 90 days and 180 days past due still accruing interest; 4) interest accrued for mortgage loans 90 days and 180 days past due; and 5) recorded investment and number of mortgage loans where interest has been reduced, by percent reduced. The Company adopted the amendment in 2018. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

In August 2017, the NAIC adopted non-substantive revisions to SSAP No. 69 – Statement of Cash Flow to adopt ASU 2016-18 Statement of Cash Flows: Restricted Cash as issued by the FASB. The revision clarifies that restricted cash and cash equivalents shall not be reported as operating, investing or financing activities, but shall be reported with cash and cash equivalents when reconciling beginning and ending amounts on the cash flow statement. A consequential change was incorporated in SSAP No. 1 – Accounting Policies, Risks & Uncertainties and Other Disclosures to ensure information on restricted cash, cash equivalents and short-term investments is reported in the restricted asset disclosure. The revision was effective December 31, 2019, to be adopted retrospectively to allow for comparative cash flow statements. The Company adopted the amendment in 2019. The guidance did not have a material impact on the Company’s financial position, results of operations, and financial statement disclosures.

In August 2016, the NAIC adopted substantive revisions to SSAP No. 51 – Life Contracts in order to allow principle-based reserving (“PBR”) for life insurance contracts as specified in the NAIC Valuation Manual – 20 (“VM-20”). Current statutory accounting guidance refers to existing model laws for reserving guidance which are primarily based on formulaic methodology. Also, in June 2016, the NAIC adopted updates to Appendix A-820: Minimum Life and Annuity Reserve Standards as part of the PBR project, which incorporate relevant aspects of the 2009 revisions to the Standard Valuation Law (Model #820) into Appendix A-820. The effective date was January 1, 2017 but companies were allowed to defer adoption for three years until January 1, 2020. The Company had adopted VM-20 for certain products launched in 2018 and 2019. As of January 1, 2020, VM-20 was implemented for all new life insurance contracts. Adoption of VM-20 is on a prospective basis, therefore, there is no impact to surplus upon adoption.

Future Adoption of New Accounting Standards

In April 2020, the NAIC adopted INT 20-1 Reference Rate Reform as an interpretation of statutory accounting guidance to incorporate the US GAAP guidance from ASU 2020-04, Reference Rate Reform (Topic 848) “Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. The effective date of this guidance begins on March 12, 2020 and sunsets on Dec 31, 2022. The guidance provides limited period elective application of accounting relief (expedients) to address the direct effects from the reference rate reform on affected contracts and hedging relationships. The Company is currently assessing which expedients to adopt and the impact of this guidance on its financial statements.

15

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

On September 22, 2017, The Bilateral Agreement Between the United States of America and the European Union (EU) on Prudential Measures Regarding Insurance and Reinsurance, known as the Covered Agreement, was signed by the United States Department of the Treasury and the US Trade Representative. The Covered Agreement includes provisions that serve to reduce reinsurance collateral requirements for certified reinsurers that are licensed and domiciled in Qualified Jurisdictions. On June 25, 2019, the NAIC Executive Committee adopted revisions to the Credit for Reinsurance Model Law (#785) and Credit for Reinsurance Model Regulation (#786), which implement the reinsurance collateral provisions of the Covered Agreements with the European Union (EU) and the United Kingdom (UK). These revisions create a new type of jurisdiction, which is called a Reciprocal Jurisdiction and eliminate reinsurance collateral requirements and local presence requirements for EU and UK reinsurers that maintain a minimum amount of own-funds equivalent to $250 million and a solvency capital requirement (SCR) of 100% under Solvency II. The revisions also provide Reciprocal Jurisdiction status for accredited U.S. jurisdictions and Qualified Jurisdictions if they meet certain requirements in the credit for reinsurance models. U.S. states must adopt these revisions prior to September 1, 2022 or face potential federal preemption by the Federal Insurance Office. To avoid preemption, the laws must be enacted prior to September 1, 2022, and must adhere exactly to the models as they have been adopted by the NAIC. On December 7, 2019, the Statutory Accounting Principles (E) Working Group adopted revisions to Appendix A-785 to incorporate the updates from the adopted Credit for Reinsurance Model Law (#785) and the Credit for Reinsurance Model Regulation (#786) that include the relevant provisions from the Covered Agreement. The Company is assessing the impact on the Company’s financial position, results of operations, and financial statement disclosures.

Reconciliation Between Audited Financial Statements and NAIC Annual Statements

There were no differences in net income (loss) or capital and surplus between the audited financial statements and the NAIC statements as filed as of and for the years ended December 31, 2020, 2019 and 2018.

5. Investments

Bonds

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

	Carrying   Value		Gross Unrealized Gains		Gross Unrealized Losses		Fair     Value
(in millions)
December 31, 2020:
U.S. government and agencies	$	4,323	$	381	$	(77)	$	4,627
States and political subdivisions		2,915		756		(1)		3,670
Foreign governments		2,456		82		(5)		2,533
Corporate bonds		33,455		6,791		(44)		40,202
Mortgage-backed and asset-backed securities		6,045		992		(4)		7,033
Total bonds	$	49,194	$	9,002	$	(131)	$	58,065
December 31, 2019:
U.S. government and agencies	$	3,468	$	225	$	(37)	$	3,656
States and political subdivisions		2,661		509		(3)		3,167
Foreign governments		2,372		70		(10)		2,432
Corporate bonds		32,496		4,123		(58)		36,561
Mortgage-backed and asset-backed securities		6,196		601		(2)		6,795
Total bonds	$	47,193	$	5,528	$	(110)	$	52,611

16

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

A summary of the carrying value and fair value of the Company’s investments in bonds at December 31, 2020, by contractual maturity, is as follows:

	Carrying Value		Fair     Value
(in millions)
Due in one year or less	$	893	$	910
Due after one year through five years		6,205		6,601
Due after five years through ten years		8,319		9,336
Due after ten years		27,732		34,185
Mortgage-backed and asset-backed securities		6,045		7,033
Total	$	49,194	$	58,065

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

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

	December 31,
	2020		2019
(in millions)
At fair value:
Bonds and cash pledged in support of over-the-counter derivative instruments	$	305	$	211
Bonds and cash pledged in support of exchange-traded futures		601		344
Bonds and cash pledged in support of cleared interest rate swaps		1,058		880
Total fair value	$	1,964	$	1,435
At carrying value:
Bonds on deposit with government authorities	$	14	$	14
Mortgage loans pledged in support of real estate		-		-
Bonds held in trust		92		93
Pledged collateral under reinsurance agreements		2,899		2,755
Total carrying value	$	3,005	$	2,862

At December 31, 2020 and 2019, the Company held below investment grade corporate bonds of $2,968 million and $2,412 million, with an aggregate fair value of $3,116 million and $2,508 million, respectively. The Company performs periodic evaluations of the relative credit standing of the issuers of these bonds.

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

At the end of each quarter, the MFC Loan Review Committee reviews all securities where there is evidence of impairment or a significant unrealized loss at the Balance Sheet date. Impairment is considered to have occurred, based on management’s judgment, when it is deemed probable that the Company will not be able to collect all amounts due according to the debt security’s contractual terms. The analysis focuses on each company’s or project’s ability to service its debts in a timely fashion and the length of time the security has been trading below amortized cost. The results of this analysis are reviewed by the Transaction and Portfolio Review Committee at MFC. This committee includes MFC’s Chief Financial Officer, Chief Investment Officer, Chief Risk Officer, Chief Credit Officer, and other senior management. This quarterly process includes a fresh assessment of the credit quality of each investment in the entire fixed maturity security portfolio.

17

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

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

There are a number of significant risks and uncertainties inherent in the process of monitoring impairments and determining if impairment is other-than-temporary. These risks and uncertainties include (1) the risk that the Company’s assessment of an issuer’s ability to meet all of its contractual obligations will change based on changes in the credit characteristics of that issuer; (2) the risk that the economic outlook will be worse than expected or have more of an impact on the issuer than anticipated; (3) the risk that fraudulent information could be provided to the Company’s investment professionals who determine the fair value estimates and other-than-temporary impairments; and (4) the risk that new information obtained by the Company or changes in other facts and circumstances lead the Company to change its intent to hold the security to maturity or until it recovers in value. Any of these situations could result in a charge to income in a future period.

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

Year Ended December 31, 2020

CUSIP#	CV Before OTTI		NPV of Projected CFs		Credit OTTI Recognized in Loss		CV After OTTI		Fair     Value
51817TAB8	$	29	$	24	$	5	$	24	$	21
		-		-		-		-		-
		-		-		-		-		-
Total	$	29	$	24	$	5	$	24	$	21

Year Ended December 31, 2019

CUSIP#	CV Before OTTI		NPV of Projected CFs		Credit OTTI Recognized in Loss		CV After OTTI		Fair     Value
	$	-	$	-	$	-	$	-	$	-
		-		-		-		-		-
		-		-		-		-		-
Total	$	-	$	-	$	-	$	-	$	-

18

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

When a decline in fair value is other-than-temporary, an impairment loss is recognized as a realized loss equal to the entire difference between the bond’s carrying value or amortized cost and its fair value.

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

	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross   Unrealized   Losses
(in millions)
December 31, 2020:
U.S. government and agencies	$	2,208	$	(77)	$	-	$	-	$	2,208	$	(77)
States and political subdivisions		57		(1)		-		-		57		(1)
Foreign governments		-		-		54		(5)		54		(5)
Corporate bonds		1,018		(33)		175		(11)		1,193		(44)
Mortgage-backed and asset-backed securities		238		(4)		9		-		247		(4)
Total	$	3,521	$	(115)	$	238	$	(16)	$	3,759	$	(131)
	Less than 12 months				12 months or more				Total
	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross   Unrealized   Losses
(in millions)
December 31, 2019:
U.S. government and agencies	$	1,619	$	(36)	$	63	$	(1)	$	1,682	$	(37)
States and political subdivisions		110		(3)		-		-		110		(3)
Foreign governments		-		-		49		(10)		49		(10)
Corporate bonds		1,074		(12)		512		(46)		1,586		(58)
Mortgage-backed and asset-backed securities		57		(1)		139		(1)		196		(2)
Total	$	2,860	$	(52)	$	763	$	(58)	$	3,623	$	(110)

At December 31, 2020 and 2019, there were 146 and 172 bonds that had a gross unrealized loss, of which the single largest unrealized loss was $56 million and $29 million, respectively. The Company anticipates that these bonds will perform in accordance with their contractual terms and the Company currently has the ability and intent to hold these bonds until they recover or mature. Unrealized losses can be created by rising interest rates or by rising credit concerns and therefore widening credit spreads. Credit concerns are apt to play a larger role in the unrealized loss on below investment grade securities. Unrealized losses on investment grade securities principally relate to changes in interest rates or changes in credit spreads since the securities were acquired. Credit rating agencies’ statistics indicate that investment grade securities have been found to be less likely to develop credit concerns.

For the years ended December 31, 2020, 2019 and 2018, realized capital losses include $112 million, $27 million, and $72 million related to bonds that have experienced an other-than-temporary decline in value and were comprised of 52, 13, and 21 securities, respectively.

19

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The total recorded investment in restructured corporate bonds at December 31, 2020, 2019 and 2018 was $0 million, $0 million, and $0 million, respectively. There were 0, 1, and 1 restructured corporate bonds for which an impairment was recognized during 2020, 2019 and 2018, respectively. The Company accrues interest income on impaired securities to the extent deemed collectible and the loan continues to perform under its original or restructured contractual terms. Interest income on non-performing loans generally is recognized on a cash basis.

The sales of investments in bonds, including non-cash sales from reinsurance transactions, resulted in the following:

	Years Ended December 31,
	2020		2019		2018
(in millions)
Proceeds	$	16,955	$	12,389	$	28,102
Realized gross gains		625		356		729
Realized gross losses		(67)		(50)		(407)

The Company had no nonadmitted accrued investment income from bonds (unaffiliated) at December 31, 2020 and 2019.

Affiliate Transactions

In 2020, the Company sold certain bonds to an affiliate, John Hancock Reassurance Company Limited (“JHRECO”). These bonds had a book value of $178 million and fair value of $206 million. The Company recognized $28 million in pre-tax realized gains before transfer to the IMR.

In 2020, the Company sold certain bonds to an affiliate, John Hancock Funding Company LLC, (“JHFLLC”). These bonds had a book value of $99 million and fair value of $98 million. The Company recognized $1 million in pre-tax realized losses before transfer to the IMR.

In 2020, the Company acquired at fair value, certain bonds from an affiliate, JHRECO, for $304 million.

In 2020, the Company acquired at fair value, certain bonds from an affiliate, JHLH, for $76 million.

In 2020, the Company acquired at fair value, certain bonds from an affiliate, JHNY, for $65 million.

In 2019, the company seeded certain bonds to an affiliate, JHFLLC. These bonds had a book value of $63 million and fair value of $62 million. The Company recognized $1 million in pre-tax realized losses before transfer to the IMR.

In 2019, the Company sold certain bonds to an affiliate, JHRECO. These bonds had a book value of $893 million and fair value of $943 million. The Company recognized $50 million in pre-tax realized gains before transfer to the IMR.

In 2019, the Company sold certain bonds to an affiliate, JHLH. These bonds had a book value of $82 million and fair value of $93 million. The Company recognized $11 million in pre-tax realized gains before transfer to the IMR.

In 2019, the Company sold certain bonds to an affiliate, JHNY. These bonds had a book value of $121 million and fair value of $130 million. The Company recognized $9 million in pre-tax realized gains before transfer to the IMR.

In 2019, the Company acquired at fair value, certain bonds from an affiliate, JHNY, for $123 million.

In 2019, the Company acquired at fair value, certain bonds from an affiliate, JHLH, for $98 million.

In 2019, the Company acquired at fair value, certain bonds from an affiliate, JHRECO, for $1,088 million.

In 2019, the Company acquired at fair value, certain bonds from an affiliate, Manulife Reinsurance Bermuda Ltd (“MRBL”), for $109 million in lieu of a reinsurance cash settlement.

20

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

In 2019, the Company acquired at fair value, certain bonds from an affiliate, MRBL, for $27 million.

In 2019, the Company acquired at fair value, certain bonds from an affiliate, JHFLLC, for $3 million.

In 2018, the Company sold certain bonds to an affiliate, MRBL. These bonds had a book value of $449 million and fair value of $501 million. The Company recognized $52 million in pre-tax realized gains before transfer to the IMR.

In 2018, the Company sold certain bonds to an affiliate, JHNY. These bonds had a book value of $293 million and fair value of $313 million. The Company recognized $20 million in pre-tax realized gains before transfer to the IMR.

In 2018, the Company sold certain bonds and stocks to an affiliate, JHFLLC. These bonds and stocks had a book value of $53 million and fair value of $53 million. The Company did not recognize any pre-tax realized gains before transfer to the IMR.

In 2018, the Company acquired at fair value, certain bonds from an affiliate, JHNY, for $647 million.

In 2018, the Company acquired at fair value, certain bonds from an affiliate, JHLH, for $48 million.

21

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

Preferred and Common Stocks

Cost and fair value of the Company’s investments in preferred and common stocks are summarized as follow:

	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(in millions)
December 31, 2020:
Preferred stocks:
Nonaffiliated	$	29	$	7	$	-		$	36
Affiliates		-		-		-			-
Common stocks:
Nonaffiliated		698		399		(15	)		1,082
Affiliates*		1,589		1,290		-			2,879
Total stocks	$	2,316	$	1,696	$	(15	)	$	3,997
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(in millions)
December 31, 2019:
Preferred stocks:
Nonaffiliated	$	15	$	4	$	-		$	19
Affiliates		-		-		-			-
Common stocks:
Nonaffiliated		784		283		(17	)		1,050
Affiliates*		1,589		1,235		-			2,824
Total stocks	$	2,388	$	1,522	$	(17	)	$	3,893

*Affiliates - fair value represents the carrying value

At December 31, 2020 and 2019, there were 73 and 120 nonaffiliated equity securities that had a gross unrealized loss excluding securities that have been written down to zero. The single largest unrealized loss was $3 million and $4 million at December 31, 2020 and 2019, respectively. The Company anticipates that these equity securities will recover in value in the near term.

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

For the years ended December 31, 2020, 2019 and 2018, realized capital losses include $18 million, $7 million, and $11 million related to preferred and common stocks that have experienced an other-than-temporary decline in value and were comprised of 144, 132, and 95 securities, respectively. These are primarily made up of impairments on public and private common stocks.

22

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

Affiliate Transactions

In 2018, the Company sold certain common stocks to an affiliate, MRBL. These stocks had a book value of $264 million and fair value of $306 million. The Company recognized $42 million in pre-tax realized gains.

Mortgage Loans on Real Estate

At December 31, 2020 and 2019, the mortgage loan portfolio was diversified by geographic region and specific collateral property type as displayed below. The Company controls credit risk through credit approvals, limits, and monitoring procedures.

  December 31, 2020:

Property Type	Carrying Value
(in millions)
Apartments	$	2,904
Industrial		838
Office buildings		2,855
Retail		3,165
Agricultural		-
Agribusiness		140
Mixed use		7
Other		1,668
Allowance		(4)
Total mortgage loans on real estate	$	11,573

  December 31, 2019:

Property Type	Carrying Value
(in millions)
Apartments	$	2,863
Industrial		752
Office buildings		3,073
Retail		3,263
Agricultural		-
Agribusiness		223
Mixed use		7
Other		1,470
Allowance		(4)
Total mortgage loans on real estate	$	11,647

Geographic Concentration	Carrying Value
(in millions)
East North Central	$	1,358
East South Central		234
Middle Atlantic		1,861
Mountain		630
New England		610
Pacific		3,696
South Atlantic		2,119
West North Central		319
West South Central		743
Canada / Other		7
Allowance		(4)
Total mortgage loans on real estate	$	11,573

Geographic Concentration	Carrying Value
(in millions)
East North Central	$	1,453
East South Central		276
Middle Atlantic		1,700
Mountain		538
New England		633
Pacific		3,710
South Atlantic		2,275
West North Central		325
West South Central		737
Canada / Other		4
Allowance		(4)
Total mortgage loans on real estate	$	11,647

The aggregate mortgages outstanding to any one borrower do not exceed $461 million.

During 2020, the respective maximum and minimum lending rates for commercial mortgage loans issued were 4.52% and 2.21%. The Company issued no agricultural loans during 2020 or 2019. The Company issued no purchase money mortgages in 2020 and 2019. At the issuance of a loan, the percentage of any one loan to value of security, exclusive of insured, guaranteed, or purchase money mortgages does not exceed 75%. Impaired mortgage loans without an allowance for credit losses were $0

23

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

million, $0 million, and $0 million at December 31, 2020, 2019 and 2018, respectively. The average recorded investment in impaired loans was $10 million, $39 million, and $56 million at December 31, 2020, 2019 and 2018, respectively. The Company recognized $1 million, $3 million, and $4 million of interest income during the period the loans were impaired for the years ended December 31, 2020, 2019 and 2018, respectively.

The following table shows the age analysis of mortgage loans aggregated by type:

	Farm		Residential		Commercial		Mezzanine		Total
(in millions)
December 31, 2020:
Recorded Investment
Current	$	239	$	-	$	11,171	$	167	$	11,577
30 - 59 Days Past Due		-		-		-		-		-
60 - 89 Days Past Due		-		-		-		-		-
90 - 179 Days Past Due		-		-		-		-		-
180 + Days Past Due		-		-		-		-		-
December 31, 2019:
Recorded Investment
Current	$	349	$	-	$	11,165	$	137	$	11,651
30 - 59 Days Past Due		-		-		-		-		-
60 - 89 Days Past Due		-		-		-		-		-
90 - 179 Days Past Due		-		-		-		-		-
180 + Days Past Due		-		-		-		-		-

The Company had no recorded investment of mortgage loans 90 to 179 days or 180 days or greater past due still accruing interest or where interest has been reduced in 2020 and 2019. The Company was not a participant or co-lender in a mortgage loan agreement in 2020 and 2019.

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

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

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

	December 31,
	2020		2019
(in millions)
AAA	$	305	$	335
AA		2,975		2,845
A		5,137		5,169
BBB		2,536		3,145
BB		609		147
B and lower and unrated		11		6
Total	$	11,573	$	11,647

24

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

Affiliate Transactions

In 2019, the Company sold certain mortgages to an affiliate, John Hancock GA Mortgage Trust (“JHGMT”). These mortgages had a book value of $785 million and fair value of $800 million at the date of the transaction. The Company recognized $15 million in pre-tax realized gains before transfer to the IMR.

In 2019, the Company acquired at fair value, certain mortgages from an affiliate, Hancock Mortgage REIT Inc., (“HMREIT”), for $119 million.

In 2018, the Company sold certain mortgages to an affiliate, JHLH. These mortgages had a book value of $8 million and fair value of $8 million at the date of the transaction. The Company recognized $0 million in pre-tax realized losses before transfer to the IMR.

In 2018, the Company acquired, at fair value, certain mortgages from an affiliate, JHNY, for $105 million.

In 2018, the Company acquired, at fair value, certain mortgages from an affiliate, JHLH, for $29 million.

Real Estate

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

	December 31,
	2020			2019
(in millions)
Properties occupied by the company	$	195		$	239
Properties held for the production of income		5,088			4,996
Properties held for sale		-			-
Less accumulated depreciation		(1,074	)		(1,029)
Total	$	4,209		$	4,206

The Company recorded $0 million, $0 million, and $0 million of impairments on real estate investments during the years ended December 31, 2020, 2019 and 2018, respectively.

On December 3, 2020, the Company sold real estate previously classified as properties occupied by the Company. The real estate property had a book value of $13 million and fair value of $177 million which resulted in pre-tax realized gains to operations of $164 million.

Affiliate Transactions

On June 30, 2020, the Company committed to invest an additional $100 million into Hancock U.S Real Estate Fund, L.P. (“HUSREF”). As of December 31, 2020, the Company funded $60 million of the commitment.

In 2018, the Company entered into a joint venture arrangement with the University of California Board of Regents (“UC”). As part of this arrangement, the Company sold six U.S. commercial real estate properties and one other invested asset with the characteristics of real estate to Broadway Green LLC, Broadway Wacker LLC and Broadway Congress LLC, all joint venture entities formed by UC. The Company provides management services to these joint ventures and owns 10% of their equity. The real estate properties had a book value of $728 million and fair value of $985 million which resulted in pre-tax realized gains to operations of $231 million (after 10% deferral of realized gain).

25

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

Other Invested Assets

The Company had no investments in partnerships or LLCs that exceed 10% of its admitted assets at December 31, 2020 and 2019.

Other invested assets primarily consist of investments in partnerships and LLCs. The Company recorded $21 million, $97 million, and $39 million of impairments on partnerships and LLCs during the years ended December 31, 2020, 2019 and 2018, respectively. These impairments are based on significant judgement by the Company in determining whether the objective evidence of other-than-temporary impairment exists. The Company considers relevant facts and circumstances in evaluating whether the impairment of an other invested asset is other-than-temporary. Relevant facts and circumstances include (1) the length of time the fair value has been below cost; (2) the financial position of the investee; (3) the Company’s ability and intent to hold the other invested asset until it recovers. To the extent the Company determines that an other invested asset is deemed to be other-than-temporarily impaired, the difference between book and fair value would be charged to income.

Affiliate Transactions

In 2020, the Company acquired at fair value, certain other invested assets from an affiliate, JHFLLC, for $55 million.

In 2019, Manulife Private Capital and Manulife Investment Management Private Markets launched a closed-end pooled fund that offers third-party investors the opportunity to invest alongside JHUSA’s and MLI’s general account and/or their affiliates (collectively the “General Account”) in private equity funds and private equity co-investments in the US and in Canada. The fund was seeded with a pool of private equity fund investments and direct private equity co-investments from the Company. The assets sold by the Company, to seed the fund, had a book value of $451 million and fair value of $459 million which resulted in a gain to operations of $8 million.

In 2019, the Company acquired at fair value, certain other invested assets from an affiliate, JHFLLC, for $35 million.

In 2018, the Company entered into an agreement to launch John Hancock Infrastructure Fund, LP (the “Fund”), a closed-end pooled fund that will offer investors the opportunity to invest alongside the Company in a targeted infrastructure strategy focused primarily on U.S investments. The fund was seeded with the partial sale of 9 assets owned by the Company. The assets sold had a book value of $1,045 million and fair value of $1,094 million which resulted in a gain to operations of $49 million.

In 2018, the Company acquired at fair value, certain other invested assets from an affiliate, JHNY, for $4 million.

In 2018, the Company acquired at fair value, certain other invested assets from an affiliate, JHLH, for $9 million.

In 2018, the Company acquired at fair value, certain other invested assets from an affiliate, John Hancock Partnership Holdings I (“JHPH I”), for $39 million.

In 2018, the Company acquired at fair value, certain other invested assets from an affiliate, John Hancock Partnership Holdings II (“JHPH II”), for $39 million.

In 2018, the Company acquired at fair value, certain other invested assets from an affiliate, JHFLLC, for $6 million.

Other

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

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

26

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

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

The Company had no direct exposure through investments in subprime mortgage loans as of December 31, 2020 or 2019.

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

The Company has entered into certain repurchase agreements with an aggregate carrying value of $0 million and $0 million as of December 31, 2020 and 2019, respectively. For such agreements, the Company agrees to a specified term, price, and interest rate through the date of the repurchase.

The Company established a facility with an affiliate, MRBL whereby cash collateral can be received under a repurchase agreement program. There was no repurchase agreement activity in 2020 and 2019.

For securities lending transactions, the Company’s policy is to require a minimum of 102% of the fair value of securities loaned to be maintained as collateral. Positions are marked to market and adjusted on a daily basis to ensure the 102% margin requirement is maintained. There were no securities on loan as of December 31, 2020 or 2019.

27

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

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

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

	2020			2019			2018
(in millions)
Income:
Bonds	$	2,135		$	2,117		$	2,279
Preferred stocks		-			-			-
Common stocks		17			125			126
Mortgage loans on real estate		566			569			594
Real estate		461			432			638
Policy loans		177			188			175
Cash, cash equivalents and short-term investments		20			45			38
Other invested assets		783			920			1,069
Derivatives		493			519			427
Other income		7			-			(21	)
Total investment income		4,659			4,915			5,325
Expenses
Investment expenses		(372	)		(331	)		(424	)
Investment taxes, licenses and fees, excluding federal income taxes		(55	)		(51	)		(76	)
Investment interest expense		(44	)		(42	)		(48	)
Depreciation on real estate and other invested assets		(93	)		(85	)		(112	)
Total investment expenses		(564	)		(509	)		(660	)
Net investment income	$	4,095		$	4,406		$	4,665

Realized capital gains (losses) and amounts transferred to the IMR are as follows:

	2020		2019		2018
(in millions)
Realized capital gains (losses)	$	3,010	$	735	$	730
Less amount transferred to the IMR (net of related tax benefit (expense) of $(174) in 2020, $(89) in 2019, and $2 in 2018)		653		336		(6	)
Realized capital gains (losses) before tax		2,357		399		736
Less federal income taxes on realized capital gains (losses) before effect of transfer to the IMR		291		201		396
Net realized capital gains (losses)	$	2,066	$	198	$	340

6. Derivatives

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

28

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

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

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

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

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

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

Swaptions are contractual agreements whereby the holder has the right, but not obligation, to enter into a given swap agreement on a specified future date.

Types of Derivatives and Derivative Strategies

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

The Company uses interest rate swap agreements in effective cash flow and fair value hedge accounting relationships. These derivatives hedge the variable cash flows associated with certain floating-rate bonds, as well as, future fixed income asset acquisitions, which will support the Company’s long-term care and life insurance businesses. These derivatives reduce the impact of future interest rate changes on the cost of acquiring adequate assets to support the investment income assumptions used in pricing these products. For its fair value hedging relationships, the Company uses interest rate swap agreements and interest rate treasury locks to hedge the risk of changes in fair value of existing fixed rate assets and liabilities arising from changes in benchmark interest rates.

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

The Company uses exchange-traded interest rate futures primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, and to hedge against changes in interest rates on anticipated liability issuances by replicating U.S. Treasury or swap curve performance. The Company utilizes exchange-traded interest rate futures in other hedging relationships.

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

29

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

Foreign Currency Contracts. Foreign currency derivatives, including foreign currency swaps, foreign currency forwards, and foreign currency futures are used by the Company to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies.

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

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

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

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

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

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

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

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

30

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

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

		December 31, 2020
(in millions)		Notional Amount		Carrying Value Assets		Carrying Value Liabilities		Fair Value Assets		Fair Value   Liabilities
Effective Hedge Accounting Relationships
Fair value hedges	Interest rate swaps	$	1,359	$	-	$	-	$	287	$	195
	Foreign currency swaps		-		-		-		-		-
Cash flow hedges	Interest rate swaps		5,217		-		-		766		367
	Foreign currency swaps		321		27		-		38		1
	Foreign currency forwards		-		-		-		-		-
	Interest rate treasury locks		3,310		-		-		457		49
	Equity total return swaps		41		-		-		3		-
Total Derivatives in Effective Hedge Accounting Relationships		$	10,248	$	27	$	-	$	1,551	$	612
Other Hedging Relationships
	Interest rate swaps	$	128,049	$	16,628	$	12,731	$	16,628	$	12,731
	Interest rate treasury locks		12,270		2,120		168		2,120		168
	Interest rate options		7,512		479		-		479		-
	Interest rate futures		10,281		-		-		-		-
	Foreign currency swaps		1,413		441		376		441		376
	Foreign currency forwards		655		31		10		31		10
	Foreign currency futures		835		-		-		-		-
	Equity total return swaps		374		15		17		15		17
	Equity index options		6,168		456		1		456		1
	Equity index futures		4,723		-		-		-		-
	Credit default swaps		-		-		-		-		-
Total Derivatives in Other Hedging Relationships		$	172,280	$	20,170	$	13,303	$	20,170	$	13,303
Replication Synthetic Asset Transactions
	Interest rate swaps	$	4,276	$	-	$	-	$	762	$	-
	Credit default swaps		-		-		-		-		-
Total Derivatives in Replication Synthetic Asset Transactions		$	4,276	$	-	$	-	$	762	$	-
Total Derivatives		$	186,804	$	20,197	$	13,303	$	22,483	$	13,915

31

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

		December 31, 2019
(in millions)		Notional Amount		Carrying Value Assets		Carrying Value Liabilities		Fair Value Assets		Fair Value Liabilities
Effective Hedge Accounting Relationships
Fair value hedges	Interest rate swaps	$	1,570	$	-	$	-	$	260	$	142
	Foreign currency swaps		14		-		3		-		4
Cash flow hedges	Interest rate swaps		6,050		-		-		666		386
	Foreign currency swaps		322		34		-		46		-
	Foreign currency forwards		-		-		-		-		-
	Interest rate treasury locks		2,114		-		-		170		23
	Equity total return swaps		41		-		-		8		-
Total Derivatives in Effective Hedge Accounting Relationships		$	10,111	$	34	$	3	$	1,150	$	555
Other Hedging Relationships
	Interest rate swaps	$	130,584	$	10,762	$	6,884	$	10,762	$	6,884
	Interest rate treasury locks		12,529		1,200		84		1,200		84
	Interest rate options		8,247		304		-		304		-
	Interest rate futures		7,784		-		-		-		-
	Foreign currency swaps		1,423		387		313		387		313
	Foreign currency forwards		540		4		1		4		1
	Foreign currency futures		843		-		-		-		-
	Equity total return swaps		310		12		9		12		9
	Equity index options		5,295		346		3		346		3
	Equity index futures		4,586		-		-		-		-
	Credit default swaps		-		-		-		-		-
Total Derivatives in Other Hedging Relationships		$	172,141	$	13,015	$	7,294	$	13,015	$	7,294
Replication Synthetic Asset Transactions
	Interest rate swaps	$	4,276	$	-	$	-	$	268	$	122
	Credit default swaps		-		-		-		-		-
Total Derivatives in Replication Synthetic Asset Transactions		$	4,276	$	-	$	-	$	268	$	122
Total Derivatives		$	186,528	$	13,049	$	7,297	$	14,433	$	7,971

Hedging Relationships

The Company generally does not enter into derivative contracts for speculative purposes. In certain circumstances, these hedges also meet the requirements for hedge accounting and are reported in a manner consistent with the hedged asset or liability. For the years ended December 31, 2020, 2019 and 2018, respectively, the Company recorded unrealized gains (losses) of $376 million, $278 million, and $231 million, respectively, related to derivatives that no longer qualify for hedge accounting.

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

Cash Flow Hedges. The Company uses interest rate swaps and interest rate treasury locks to hedge the variability in cash flows from variable rate financial instruments and forecasted transactions. The Company also uses cross currency swaps and forward agreements to hedge currency exposure on foreign currency financial instruments and foreign currency denominated expenses, respectively. Total return swaps are used to hedge the variability in cash flows associated with certain stock-based compensation awards. Inflation swaps are used to reduce inflation risk generated from inflation-indexed liabilities.

32

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

For the year ended December 31, 2020, all of the Company’s hedged forecast transactions qualified as cash flow hedges and no cash flow hedges were discontinued because it was probable that the original forecasted transactions would occur by the end of the originally specified time period documented at inception of the hedging relationship.

The maximum time frame for which variable cash flows are hedged is 26 years.

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

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

The Company also has a macro equity risk hedging program using equity futures and interest rate swaps, as well as equity index options. This program is designed to reduce the Company’s overall exposure to public equity markets arising from several sources including, but not limited to, variable annuity guarantees not dynamically hedged, separate account fees not associated with guarantees, and Company equity holdings.

The Company uses foreign currency swaps and foreign currency forwards to reduce the risk from fluctuations in foreign currency exchange rates associated with its assets and liabilities denominated in foreign currencies.

33

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

For the years ended December 31, 2020, 2019 and 2018 net gains and losses related to derivatives in other hedging relationships were recognized by the Company, and the components were recorded in net unrealized and net realized gains (losses) as follows:

	Years ended December 31,
	2020		2019		2018
(in millions)
Other Hedging Relationships
Net unrealized capital gain (loss):
Interest rate swaps	$	19	$	(171)	$	(193)
Interest rate treasury locks		836		916		(417)
Interest rate options		204		89		(35)
Interest rate futures		92		(379)		212
Foreign currency swaps		7		18		-
Foreign currency forwards		16		(2)		6
Foreign currency futures		(3)		5		(11)
Equity total return swaps		(4)		(15)		9
Equity index options		122		177		(133)
Equity index futures		(48)		(169)		121
Credit default swaps		-		-		-
Total net unrealized capital gain (loss)	$	1,241	$	469	$	(441)
Net realized capital gain (loss):
Interest rate swaps	$	19	$	11	$	(225)
Interest rate treasury locks		1,240		428		43
Interest rate options		(3)		(17)		(5)
Interest rate futures		723		873		(411)
Foreign currency swaps		4		6		4
Foreign currency forwards		(17)		21		(16)
Foreign currency futures		(40)		18		61
Equity total return swaps		6		(17)		(2)
Equity index options		76		(1)		49
Equity index futures		(238)		(944)		157
Credit default swaps		-		1		-
Total net realized capital gain (loss)	$	1,770	$	379	$	(345)
Total gain (loss) from derivatives in other hedging relationships	$	3,011	$	848	$	(786)

The table above does not include unrealized gains (losses) of ($2) million, $17 million, ($28) million and realized gains (losses) of $0 million, $6 million and $12 million for the years ended December 31, 2020, 2019 and 2018, respectively. These gains (losses) represent a portion of equity total return swaps used to hedge restricted share units, but that are no longer in an effective accounting hedge relationship. The gains (losses) are recorded in the General Insurance Expenses line in the Statement of Operations.

The Company also deferred net realized gains (losses) of $144 million, $36 million, and ($229) million (including $31 million,$23 million, and ($226) million of gains (losses) for derivatives in other hedging relationships, respectively) related to interest rates for the years ended December 31, 2020, 2019 and 2018, respectively. Deferred net realized gains and losses are reported in IMR and amortized over the remaining period to expiration date.

Credit Default Swaps

The Company replicates exposure to specific issuers by selling credit protection via CDS in order to complement its cash bond investing. The Company does not employ leverage in its CDS program and therefore, does not write CDS protection in excess of its government bond holdings.

34

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The Company had no CDS protection sold at December 31, 2020 and 2019.

The Company held no purchased credit protection at December 31, 2020 and 2019. The average credit rating of the counterparties guaranteeing the underlying credits is A and the weighted average maturity is 0 years.

Credit Risk

The Company’s exposure to loss on derivatives is limited to the amount of any net gains that may have accrued with a particular counterparty. Gross derivative counterparty exposure is measured as the total fair value (including accrued interest) of all outstanding contracts in a gain position excluding any offsetting contracts in negative positions and the impact of collateral on hand. The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to the derivative financial instruments. The current credit exposure of the Company’s derivative contracts is limited to the fair value in excess of the collateral held at the reporting date.

The Company manages its credit risk by entering into transactions with creditworthy counterparties, obtaining collateral where appropriate, and entering into master netting agreements that provide for a netting of payments and receipts with a single counterparty. The Company enters into credit support annexes with its OTC derivative dealers in order to manage its credit exposure to those counterparties. As part of the terms and conditions of those agreements, the pledging and accepting of collateral in connection with the Company’s derivative usage is required. As of December 31, 2020 and 2019, the Company accepted collateral consisting of cash of $2,096 million and $828 million, and various securities with a fair value of $7,166 million and $6,105 million, respectively, which is held in separate custodial accounts and not reflected within these financial statements. In addition, the Company has pledged collateral to support both the OTC derivative instruments, exchange traded futures and cleared interest rate swap transactions. For further details regarding pledged collateral see the Investments Note.

Under U.S. regulations, certain interest rate swap agreements and credit default swap agreements are required to be cleared through central clearing houses. These transactions are contractual agreements that require initial and variation margin collateral postings and are settled on a daily basis through a clearing house. As such, they reduce the credit risk exposure in the event of default by a counterparty.

Financing Premiums

The following table presents the Company’s aggregate, non-discounted total premium cost for derivative contracts with financing premiums and the premium cost due in each of the following four years, and thereafter.

Fiscal Year	Derivative Premium     Payments Due
(in millions)
2021	$	143
2022		-
2023		-
2024		-
Thereafter		-
Total Future Settled Premiums	$	143

35

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

	Undiscounted Future Premium Commitments		Derivative Fair Value With Premium Commitments		Derivative Fair Value     Excluding Impact of Future Settled Premiums
(in millions)
Prior Year	$	98	$	64	$	162
Current Year	$	143	$	92	$	235

Transactions with Affiliates

The Company has entered into a currency swap agreement with JHFC which is recorded at fair value. JHFC utilizes the currency swap to hedge currency exposure on foreign currency financial instruments. The Company has also entered into currency swap agreements with external counterparties which offset the currency swap agreement with JHFC. As of December 31, 2020 and 2019, the currency swap agreements with JHFC and the external counterparties had offsetting fair values of $367 million and $310 million, respectively.

The Company has entered into equity total return swap agreements with MLI which is recorded at fair value. JHUSA utilizes the equity total return swaps to hedge equity exposure on restricted share units (“RSU”). As of December 31, 2020 and 2019, the equity total return swap agreements with MLI had a fair value of $10 million and $17 million.

The Company has entered into a foreign currency forward agreement with John Hancock Funding Company, LLC (“JHF LLC”), which is recorded at fair value. JHF LLC utilizes the foreign currency forward to hedge currency exposure on a non-functional currency asset. The Company has also entered into a foreign currency forward with an external counterparty, which offsets the foreign currency forward agreement with JHF LLC. As of December 31, 2020 and 2019, the foreign currency forwards with JHF LLC and the external counterparty had offsetting fair values of $2 million and $0 million.

7. Fair Value

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy:

• Financial Instruments Measured at Fair Value and Reported in the Balance Sheet after Initial Recognition – This category includes assets and liabilities measured at fair value. Financial instruments in this category include bonds and preferred stocks carried at the lower of cost or fair value due to their SVO quality rating, common stocks, derivatives, and separate account assets and liabilities.

• Other Financial Instruments Not Reported at Fair Value After Initial Recognition – This category includes assets and liabilities as follows:

Bonds – For bonds, including corporate debt, U.S. Treasury, commercial and residential mortgage-backed securities, asset-backed securities, collateralized debt obligations, issuances by foreign governments, and obligations of state and political subdivisions, fair values are based on quoted market prices when available. When market prices are not available, fair value is generally estimated using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality (matrix pricing). The significant inputs into these models include, but are not limited to, yield curves, credit risks and spreads, measures of volatility, and prepayment speeds.

Mortgage Loans on Real Estate – The fair value of unimpaired mortgage loans is estimated using discounted cash flows and takes into account the contractual maturities and discount rates, which were based on current market rates for similar maturity ranges and adjusted for risk due to the property type. The fair value of impaired mortgage loans is based on the net of the collateral less estimated cost to obtain and sell. Fair value of commercial mortgages is derived through an internal valuation methodology using both observable and unobservable inputs. Unobservable inputs include credit assumptions and liquidity spread adjustments. Fair value of fixed-rate residential mortgages is determined using the discounted cash flow method. Inputs

36

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

used for valuation are primarily comprised of prevailing interest rates and prepayment rates, if applicable. Fair value of variable-rate residential mortgages is assumed to be their carrying value.

Cash, Cash Equivalents and Short-Term Investments – The carrying values for cash, cash equivalents, and short-term investments approximate their fair value due to the short-term maturities of these instruments.

Policy Loans – These loans are carried at unpaid principal balances, which approximate their fair values.

Policy Reserves – Policy reserves consist of guaranteed investment contracts. The fair values associated with these financial instruments are determined by projecting cash flows and discounting the cash flows at current corporate rates, defined as U.S. Treasury rates plus MFC’s corporate spread. The fair value attributable to credit risk represents the present value of the spread.

Policyholders’ and Beneficiaries’ Funds – Includes term certain contracts and supplementary contracts without life contingencies. The fair values associated with the term certain contracts and supplementary contracts without life contingencies are determined by projecting cash flows and discounting the cash flows at current corporate rates, defined as U.S. Treasury rates plus MFC’s corporate spread. The fair value attributable to credit risk represents the present value of the spread. Fair value disclosure is not required for those balances that can be withdrawn by the policyholder at any time without prior notice or penalty. The fair value is the amount estimated to be payable to the policyholder as of the reporting date which is generally the carrying value and provides no additional disclosure value.

Consumer Notes – The fair value of consumer notes is determined by projecting cash flows and using a spread assumption associated with the specific risks in the Signature Note contracts. The spread is calculated by taking the difference between the contractual crediting rate and the yield curve as of the issue date of each Signature Note. The calculated spread is added to the yield curve as of each future valuation date to determine the fair value of the Signature Notes.

Financial Instruments Measured at Fair Value and Reported in the Balance Sheet after Initial Recognition

Valuation Hierarchy

The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:

• Level 1 – Fair value measurements that reflect unadjusted, quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date reflecting market transactions. Level 1 assets primarily include exchange traded equity securities and certain separate account assets.

• Level 2 – Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in inactive markets, inputs that are observable that are not prices (such as interest rates, credit risks, etc.), and inputs that are derived from or corroborated by observable market data. Most bonds are classified within Level 2. Also, included in the Level 2 category are certain separate account assets and liabilities and derivative assets and liabilities.

• Level 3 – Fair value measurements using significant nonmarket observable inputs. These include valuations for assets and liabilities that are derived using data, some or all of which is not market observable data, including assumptions about risk. Level 3 securities include impaired bonds and less liquid securities, such as structured asset-backed securities, commercial mortgage-backed securities, and other securities that have little or no price transparency.

Determination of Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (not a forced liquidation or distress sale) between market participants at the measurement date, that is, an exit value.

When available, quoted market prices are used to determine fair value. If quoted market prices are not available, fair value is typically based upon alternative valuation techniques such as discounted cash flows, matrix pricing, consensus pricing services and other techniques. Broker quotes are generally used when external public vendor prices are not available.

37

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The Company has a process in place that includes a review of price movements relative to the market, a comparison of prices between vendors, and a comparison to internal matrix pricing which uses predominately external observable data. Judgement is applied in adjusting external observable data for items including liquidity and credit factors.

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy:

Bonds

Refer to the previous page for the determination of fair value of bonds. Generally, impaired bonds with a NAIC designation rating of 6 whose cost is greater than its fair value are reported at fair value and are classified within Level 3.

Preferred Stocks

Preferred stocks with active markets are classified within Level 1, as fair values are based on quoted market prices. Preferred stocks not traded in active markets are classified within Level 3.

Common Stocks

Common stocks with active markets are classified within Level 1, as fair values are based on quoted market prices. Common stocks not traded in active markets are classified within Level 3.

Derivatives

The fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives or through the use of pricing models for OTC derivatives. The pricing models used are based on market standard valuation methodologies, and the inputs to these models are consistent with what a market participant would use when pricing the instruments. Derivative valuations can be affected by changes in interest rates, currency exchange rates, financial indices, credit spreads, default risk (including the counterparties to the contract), and volatility. The Company’s derivatives are generally classified within Level 2 given the significant inputs to the pricing models for most OTC derivatives are observable or can be corroborated by observable market data. Inputs that are observable generally include interest rates, foreign currency exchange rates, and interest rate curves. However, certain OTC derivatives may rely on inputs that are significant to the fair value, that are unobservable in the market or cannot be derived principally from or corroborated by observable market data and would be classified within Level 3. Inputs that are unobservable generally include broker quotes, volatilities, and inputs that are outside of the observable portion of the interest rate curve or other relevant market measures. These unobservable inputs may involve significant management judgment or estimation.

Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and consistent with what market participants would use when pricing such instruments. The credit risk of both the counterparty and the Company are considered in determining the fair value for all OTC derivatives after taking into account the effects of netting agreements and collateral arrangements.

Separate Account Assets and Liabilities

For separate accounts structured as a non-unitized fund, the fair value of separate account assets is based on the fair value of the underlying assets owned by the separate account. For separate accounts structured as a unitized fund, the fair value of the separate account assets is based on the fair value of the underlying funds owned by the separate account. Assets owned by the Company’s separate accounts primarily include: investments in mutual funds, bonds, common stock, short-term investments, real estate, and cash and cash equivalents. Investment performance related to separate account assets is fully offset by corresponding amounts credited to contract holders whose interest in the separate account assets is recorded by the Company as separate account liabilities. Separate account liabilities are set equal to the fair value of separate account assets.

The fair value of fund investments is based upon quoted market prices or reported net asset value (“NAV”). Fund investments that are traded in an active market and have a NAV that the Company can access at the measurement date are classified within Level 1. Level 2 assets consist primarily of bonds which are valued using matrix pricing with independent pricing data.

Separate account assets classified as Level 3 consist primarily of fixed maturity and equity investments in private companies, which own timber and agriculture and carry them at fair value. The values of the timber and agriculture investments are estimated using generally accepted valuation techniques. A comprehensive appraisal is performed shortly after initial purchase and at two or three-year intervals thereafter. Appraisal updates are conducted according to client contracts, generally at one-year or six-month intervals. In the quarters in which an investment is not independently appraised or its valuation updated, the market value is reviewed by management. The valuation of an investment is adjusted only if there has been a significant change

38

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

in economic circumstances related to the investment since acquisition or the most recent independent valuation and upon the independent appraiser’s review and concurrence with management. Further, these valuations are prepared giving consideration to the income, cost, and sales comparison approaches of estimating asset value. The significant unobservable inputs used in the fair value measurement of the Company’s timberland investments are harvest volumes, timber prices, operating costs and discount rates. Significant changes to any one of these inputs in isolation could result in a significant change to fair value measurement. Holding other factors constant, an increase to either harvest volumes or timber prices would tend to increase the fair value of a timberland investment, while an increase in operating costs or discount rate would have the opposite effect. These investments are classified as Level 3 by the companies owning them, and therefore the equity investments in these companies are considered to be Level 3 by the Company.

39

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The following table presents the Company’s assets and liabilities that are measured and reported at fair value in the Balance Sheets after initial recognition by fair value hierarchy level:

	December 31, 2020
	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3		Net Asset Value (NAV)
(in millions)
Assets:
Bond with NAIC 6 rating:
Industrial and misc	$	16	$	16	$	-	$	-	$	16	$	-
Loan-backed and structured securities		-		-		-		-		-		-
Total bonds with NAIC 6 rating		16		16		-		-		16		-
Preferred stocks:
Industrial and misc		16		16		-		-		16		-
Total preferred stocks		16		16		-		-		16		-
Common stocks:
Industrial and misc		1,082		1,082		994		-		88		-
Total common stocks		1,082		1,082		994		-		88		-
Derivatives:
Interest rate swaps		16,628		16,628		-		16,628		-		-
Interest rate treasury locks		2,120		2,120		-		117		2,003		-
Interest rate options		479		479		-		133		346		-
Interest rate futures		-		-		-		-		-		-
Foreign currency swaps		441		441		-		441		-		-
Foreign currency forwards		31		31		-		31		-		-
Foreign currency futures		-		-		-		-		-		-
Equity total return swaps		15		15		-		-		15		-
Equity index options		456		456		-		456		-		-
Equity index futures		-		-		-		-		-		-
Credit default swaps		-		-		-		-		-		-
Total derivatives		20,170		20,170		-		17,806		2,364		-
Assets held in separate accounts		151,488		151,488		146,818		2,884		1,786		-
Total assets	$	172,772	$	172,772	$	147,812	$	20,690	$	4,270	$	-
Liabilities:
Derivatives:
Interest rate swaps	$	12,731	$	12,731	$	-	$	12,731	$	-	$	-
Interest rate treasury locks		168		168		-		31		137		-
Interest rate options		-		-		-		-		-		-
Interest rate futures		-		-		-		-		-		-
Foreign currency swaps		376		376		-		376		-		-
Foreign currency forwards		10		10		-		10		-		-
Foreign currency futures		-		-		-		-		-		-
Equity total return swaps		17		17		-		-		17		-
Equity index options		1		1		-		1		-		-
Equity index futures		-		-		-		-		-		-
Credit default swaps		-		-		-		-		-		-
Total derivatives		13,303		13,303		-		13,149		154		-
Liabilities held in separate accounts		151,488		151,488		146,818		2,884		1,786		-
Total liabilities	$	164,791	$	164,791	$	146,818	$	16,033	$	1,940	$	-

40

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

	December 31, 2019
	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3		Net Asset Value (NAV)
(in millions)
Assets:
Bond with NAIC 6 rating:
Industrial and misc	$	5	$	5	$	-	$	-	$	5	$	-
Loan-backed and structured securities		-		-		-		-		-		-
Total bonds with NAIC 6 rating		5		5		-		-		5		-
Preferred stocks:
Industrial and misc		3		3		-		-		3		-
Total preferred stocks		3		3		-		-		3		-
Common stocks:
Industrial and misc		1,050		1,050		961		-		89		-
Total common stocks		1,050		1,050		961		-		89		-
Derivatives:
Interest rate swaps		10,762		10,762		-		10,737		25		-
Interest rate treasury locks		1,200		1,200		-		229		971		-
Interest rate options		304		304		-		76		228		-
Interest rate futures		-		-		-		-		-		-
Foreign currency swaps		387		387		-		387		-		-
Foreign currency forwards		4		4		-		4		-		-
Foreign currency futures		-		-		-		-		-		-
Equity total return swaps		12		12		-		-		12		-
Equity index options		346		346		-		346		-		-
Equity index futures		-		-		-		-		-		-
Credit default swaps		-		-		-		-		-		-
Total derivatives		13,015		13,015		-		11,779		1,236		-
Assets held in separate accounts		140,747		140,747		136,201		2,730		1,816		-
Total assets	$	154,820	$	154,820	$	137,162	$	14,509	$	3,149	$	-
Liabilities:
Derivatives:
Interest rate swaps	$	6,884	$	6,884	$	-	$	6,787	$	97	$	-
Interest rate treasury locks		84		84		-		-		84		-
Interest rate options		-		-		-		-		-		-
Interest rate futures		-		-		-		-		-		-
Foreign currency swaps		313		313		-		313		-		-
Foreign currency forwards		1		1		-		1		-		-
Foreign currency futures		-		-		-		-		-		-
Equity total return swaps		9		9		-		-		9		-
Equity index options		3		3		-		3		-		-
Equity index futures		-		-		-		-		-		-
Credit default swaps		-		-		-		-		-		-
Total derivatives		7,294		7,294		-		7,104		190		-
Liabilities held in separate accounts		140,747		140,747		136,201		2,730		1,816		-
Total liabilities	$	148,041	$	148,041	$	136,201	$	9,834	$	2,006	$	-

41

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

Fair Value of Financial Instruments Not Reported at Fair Value in the Balance Sheet

The table below presents the carrying amounts and fair value by fair value hierarchy level for certain assets and liabilities that are not reported at fair value in the Balance Sheets:

	December 31, 2020
	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3
(in millions)
Assets:
Bonds (1)	$	49,178	$	55,558	$	283	$	52,342	$	2,933
Preferred stocks		20		20		-		-		20
Mortgage loans on real estate		11,573		13,400		-		-		13,400
Cash, cash equivalents and short term investments		6,620		6,620		3,957		2,663		-
Policy loans		2,765		2,765		-		2,765		-
Derivatives in effective hedge accounting and RSAT relationships		27		2,313		-		1,915		398
Total assets	$	70,183	$	80,676	$	4,240	$	59,685	$	16,751
Liabilities:
Consumer notes	$	138	$	176	$	-	$	-	$	176
Borrowed money		500		500		-		500		-
Policy reserves		1,205		1,210		-		-		1,210
Policyholders’ and beneficiaries’ funds		790		954		-		954		-
Derivatives in effective hedge accounting and RSAT relationships		-		612		-		563		49
Total liabilities	$	2,633	$	3,452	$	-	$	2,017	$	1,435
	December 31, 2019
	Carrying Value		Total Fair Value		Level 1		Level 2		Level 3
(in millions)
Assets:
Bonds (1)	$	47,188	$	50,177	$	-	$	47,652	$	2,525
Preferred stocks		12		16		-		-		16
Mortgage loans on real estate		11,647		12,735		-		-		12,735
Cash, cash equivalents and short term investments		3,816		3,816		2,864		952		-
Policy loans		2,888		2,888		-		2,888		-
Derivatives in effective hedge accounting and RSAT relationships		34		1,418		-		1,270		148
Total assets	$	65,585	$	71,050	$	2,864	$	52,762	$	15,424
Liabilities:
Consumer notes	$	138	$	162	$	-	$	-	$	162
Borrowed money		-		-		-		-		-
Policy reserves		1,268		1,267		-		-		1,267
Policyholders’ and beneficiaries’ funds		795		960		-		960		-
Derivatives in effective hedge accounting and RSAT relationships		3		677		-		310		367
Total liabilities	$	2,204	$	3,066	$	-	$	1,270	$	1,796

(1) Bonds are carried at amortized cost unless they have NAIC designation rating of 6. Fair value of bonds exclude leveraged leases of $2,491 million and $2,429 million at December 31, 2020 and 2019, respectively. The Company calculates the carrying value by accruing income at its expected internal rate of return.

42

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

Level 3 Financial Instruments

The changes in Level 3 financial instruments measured and reported at fair value for the years ended December 31, 2020, 2019 and 2018, are summarized as follows:

			Net realized/unrealized gains (losses) included in:																Transfers
	Balance at January 1, 2020		Net income (1)		Surplus		Amounts credited to separate account liabilities (2)		Purchases		Issuances		Sales			Settlements			Into Level 3 (3)		Out of Level 3 (3)		Balance at   December    31, 2020
(in millions)
Bonds with NAIC 6 rating:
Impaired corporate bonds	$	5	$	-	$	-	$	-	$	12	$	-	$	(1	)	$	-		$	-	$	-	$	16
Impaired mortgage-backed and asset-backed securities		-		-		-		-		-		-		-			-			-		-		-
Total bonds with NAIC 6 rating		5		-		-		-		12		-		(1	)		-			-		-		16
Preferred stocks:
Industrial and misc		3		-		-		-		13		-		-			-			-		-		16
Total preferred stocks		3		-		-		-		13		-		-			-			-		-		16
Common stocks:
Industrial and misc		89		2		2		-		2		-		(7	)		-			-		-		88
Total common stocks		89		2		2		-		2		-		(7	)		-			-		-		88
Net derivatives		1,046		889		1,140		-		-		-		-			(889	)		-		24		2,210
Separate account assets/liabilities		1,816		64		-		-		25		-		(119	)		-			-		-		1,786
Total	$	2,959	$	955	$	1,142	$	-	$	52	$	-	$	(127	)	$	(889	)	$	-	$	24	$	4,116

43

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

			Net realized/unrealized gains (losses) included in:																	Transfers
	Balance at January 1, 2019		Net income (1)		Surplus			Amounts credited to separate account liabilities (2)		Purchases		Issuances		Sales			Settlements			Into Level 3 (3)		Out of Level 3 (3)			Balance at   December   31, 2019
(in millions)
Bonds with NAIC 6 rating:
Impaired corporate bonds	$	6	$	-	$	-		$	-	$	-	$	-	$	(1	)	$	-		$	-	$	-		$	5
Impaired mortgage-backed and asset-backed securities		-		-		-			-		-		-		-			-			-		-			-
Total bonds with NAIC 6 rating		6		-		-			-		-		-		(1	)		-			-		-			5
Preferred stocks:
Industrial and misc		3		-		-			-		-		-		-			-			-		-			3
Total preferred stocks		3		-		-			-		-		-		-			-			-		-			3
Common stocks:
Industrial and misc		111		14		(18	)		-		1		-		(19	)		-			-		-			89
Total common stocks		111		14		(18	)		-		1		-		(19	)		-			-		-			89
Net derivatives		290		425		752			-		10		-		-			(425	)		-		(6	)		1,046
Separate account assets/liabilities		1,804		26		-			-		35		-		(55	)		-			6		-			1,816
Total	$	2,214	$	465	$	734		$	-	$	46	$	-	$	(75	)	$	(425	)	$	6	$	(6	)	$	2,959

44

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

			Net realized/unrealized gains (losses) included in:																Transfers
	Balance at January 1, 2018		Net income (1)		Surplus			Amounts credited to separate account liabilities (2)		Purchases		Issuances		Sales		Settlements			Into Level 3 (3)		Out of Level 3 (3)			Balance at   December   31, 2018
(in millions)
Bonds with NAIC 6 rating:
Impaired corporate bonds	$	10	$	-	$	-		$	-	$	-	$	-	$	(1)	$	-		$	-	$	(3	)	$	6
Impaired mortgage-backed and asset-backed securities		6		1		-			-		-		-		(7)		-			-		-			-
Total bonds with NAIC 6 rating		16		1		-			-		-		-		(8)		-			-		(3	)		6
Preferred stocks:
Industrial and misc		-		-		-			-		3		-		-		-			-		-			3
Total preferred stocks		-		-		-			-		3		-		-		-			-		-			3
Common stocks:
Industrial and misc		134		44		3			-		4		-		(76)		-			2		-			111
Total common stocks		134		44		3			-		4		-		(76)		-			2		-			111
Net derivatives		728		-		(389	)		-		8		-		-		(46	)		-		(11	)		290
Separate account assets/liabilities		1,844		133		-			-		42		-		(209)		-			3		(9	)		1,804
Total	$	2,722	$	178	$	(386	)	$	-	$	57	$	-	$	(293)	$	(46	)	$	5	$	(23	)	$	2,214

(1) This amount is included in net realized capital gains (losses) on the Statements of Operations.

(2) Changes in the fair value of separate account assets are credited directly to separate account liabilities in accordance with NAIC SAP and are not reflected in income.

(3) For financial instruments that are transferred into and/or out of Level 3, the Company uses the fair value of the instruments at the beginning of the reporting period.

45

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The transfers into Level 3 primarily result from securities that were impaired during the year or securities where a lack of observable market data (versus the previous year) resulted in reclassifying instruments into Level 3. The transfers out of Level 3 primarily result from observable market data becoming available for that instrument, thus eliminating the need to extrapolate market data beyond observable points. Additionally, securities carried at fair value at the beginning of the period but carried at amortized cost at the end of the period due to rating change or change in fair value relative to amortized cost, are included in transfers out of Level 3. Conversely, any securities carried at amortized cost at the beginning of the period and carried at fair value at the end of the year due to SVO rating change or change in fair value relative to amortized cost, are included into transfers into Level 3.

8. Reinsurance

Certain premiums and benefits are assumed from or ceded to affiliate and other insurance companies under various reinsurance agreements. The Company entered into these reinsurance agreements to shift underlying risk on certain of its products, and to improve cash flow and statutory capital. The ceded reinsurance agreements provide the Company with increased capacity to write larger risks and maintain its exposure to loss within its capital resources.

Total reinsurance amounts included in the Company’s accompanying statutory-basis financial statements were as follows:

	Years ended December 31,
	2020			2019			2018
(in millions)
Premiums earned
Direct	$	18,998		$	20,649		$	20,067
Assumed		522			519			603
Ceded		(7,853	)		(6,220	)		(14,854)
Net	$	11,667		$	14,948		$	5,816
Benefits to policyholders ceded	$	(14,395	)	$	(15,433	)	$	(15,881)

Reserve amounts ceded to reinsurers not authorized in the State of Michigan are mostly covered by funds withheld assets, letters of credit or trust agreements. Amounts payable or recoverable for reinsurance on policy and contract liabilities are not subject to periodic or maximum limits. At December 31, 2020, any material recoveries were collateralized or settled by the assuming company.

Neither the Company nor any of its related parties control, directly or indirectly, any external reinsurers with whom the Company conducts business. No policies issued by the Company have been reinsured with a foreign company, which is controlled, either directly or indirectly, by a party not primarily engaged in the business of insurance. The Company does not have any reinsurance agreements in effect under which the reinsurer may unilaterally cancel the agreement. At December 31, 2020, there were no reinsurance agreements in effect such that the amount of losses paid or accrued through the statement date may result in a payment to the reinsurer of amounts which, in aggregate and allowing for offset of mutual credits from other reinsurance agreements with the same reinsurer, exceed the total direct premium collected under the reinsured policies.

As of December 31, 2020, if all reinsurance agreements were cancelled the estimated aggregate reduction in unassigned surplus is $4,725 million.

The following tables and commentary disclose the reinsurance treaty transactions considered material to the Company.

46

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

Non-Affiliated Reinsurance

The table and commentary below consist of the impact of the New York Life (“NYL”) Agreements:

	Years ended December 31,
	2020			2019			2018
(in millions)
Premiums ceded	$	(208	)	$	(233	)	$	(219)
Premiums assumed		83			93			88
Benefits ceded		(629	)		(601	)		(594)
Benefits assumed		252			240			238
Other reinsurance receivable (payable)		(1	)		-			-
Funds held by or deposited with reinsured companies		2,885			3,038			3,183

The John Hancock Life Insurance Company (“JHLICO”) closed block was established upon the demutualization of JHLICO for those designated participating policies that were in-force on February 1, 2000.

Effective July 1, 2015, the Company entered into coinsurance reinsurance agreements with NYL to cede 100% quota share (“QS”) of the Company’s JHLICO Closed Block policies (“NYL 100% Coinsurance”). In addition, NYL agreed to retrocede 40% QS of the same policy risks back to the Company under a coinsurance funds withheld (“FWH”) agreement (“NYL 40% FWH Retrocession”). Collectively, these agreements are known as the NYL Agreements. The NYL 100% Coinsurance keeps the assets supporting the JHLICO Closed Block together in NYL, and the NYL 40% FWH Retrocession adjusts the net reinsurance to NYL to 60% of the JHLICO Closed Block policies at risk.

The table and commentary below consist of the impact of the Reinsurance Group of America (“RGA”) Agreements:

	Year ended December 31,
	2020			2019			2018
(in millions)
Premiums ceded, net	$	-		$	(1	)	$	(2,792)
Benefits ceded, net		(536	)		(623	)		(541)
Other reinsurance receivable		69			81			96
Other amounts payable on reinsurance		-			-			-

Effective July 1, 2018, the Company entered into a coinsurance agreement with RGA to cede 100% quota share (“QS”) of a significant block of individual pay-out annuities. The transaction was structured such that the Company transferred the policy liabilities of $2,520 million and related invested assets of $2,829 million. The Company incurred a pre-tax loss of $72 million net of realized capital gains, including a ceding commission paid of $33 million, and a decrease of $43 million to statutory surplus. Under the terms of the agreement, the Company will maintain responsibility for servicing the policies.

Effective April 1, 2012, the Company entered into a coinsurance agreement with RGA to cede its fixed deferred annuities at 90% quota share (“QS”). Subsequently, the treaty increased to 100% QS effective February 29, 2016. The transaction was structured such that the Company transferred the actuarial liabilities and related invested assets. Under the terms of the agreement, the Company will maintain responsibility for servicing the policies.

47

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The table and commentary below consist of the impact of the Jackson National Life Insurance Company (“Jackson”) Agreement:

	Year ended December 31,
	2020			2019			2018
(in millions)
Premiums ceded, net	$	-		$	-		$	(5,317)
Benefits ceded, net		(455	)		(474	)		(134)
Funds held by or deposited with reinsured companies		-			-			-
Other reinsurance receivable		50			45			20
Other amounts payable on reinsurance		-			-			-

Effective October 1, 2018, the Company entered into 100% quota share coinsurance agreement with Jackson, a wholly-owned subsidiary of Prudential plc, to reinsure a block of legacy group pay-out annuities. The transaction was structured such that the Company transferred the policy liabilities of $4,292 million and related invested assets of $5,400 million. The Company incurred a pre-tax loss of $914 million net of realized capital gains, including a ceding commission paid of $222 million, and a decrease of $699 million to statutory surplus. Under the terms of the agreement, the Company will maintain responsibility for servicing the policies.

The table and commentary below consist of the impact of the Global Atlantic Financial Group Limited (“Global Atlantic”) Agreements:

	Year ended
	December 31,
	2020
(in millions)
Premiums ceded, net	$	(2,438)
Benefits ceded, net		(8)
Funds held by or deposited with reinsured companies		-
Other reinsurance receivable		2
Other amounts payable on reinsurance		-

Effective July 1, 2020, the Company entered into two agreements to reinsure a block of legacy bank-owned life insurance (“BOLI”) contracts with subsidiaries of the Global Atlantic Financial Group Ltd, a subsidiary of KKR & Co. Inc. The first agreement is a monthly renewable term agreement with Global Atlantic Assurance Limited, domesticated in Bermuda, and the other agreement is a 100% coinsurance arrangement with Commonwealth Annuity & Life Insurance Company, licensed in Michigan. Under the terms of both agreements, the Company will maintain responsibility for servicing the policies. Under the coinsurance arrangement, the transaction was structured such that the Company transferred the policy liabilities of $2,101 million and related invested assets of $2,410 million. The Company incurred a pre-tax gain of $174 million net of realized capital gains, including a ceding commission received of $179 million, and an increase in statutory surplus of $138 million, net of tax, which was deferred and will be amortized over a period of approximately twenty years.

48

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

At the beginning of 2020, the Company had a number of reinsurance agreements with Scottish Re (U.S.), Inc. (“SRUS”). On March 6, 2019, SRUS was declared impaired and placed into rehabilitation by the Delaware Chancery Court. The Company reached a settlement agreement with the Receiver of SRUS, which was approved by the Delaware Chancery Court on February 28, 2020. Under the terms of the settlement, the yearly renewable term reinsurance agreements between the Company and SRUS were terminated effective as of January 1, 2020; certain term coinsurance agreements were novated to Hannover Life Reassurance Company of America (“Hannover Life”) effective January 1, 2019; and the arbitration between the Company and SRUS was dismissed with prejudice. The Company recorded an increase in pre-tax income of $30 million comprised of a cash payment and an increase in surplus of approximately $117 million related to the reversal of certain provisions previously established for the term coinsurance business novated to Hannover Life. The Company is expected to receive approximately $7 million from Hannover Life as settlement for the 2020 net claims recoverable balance. As of December 31, 2020, the Company has established full provisions to offset the reserve credit and net reinsurance receivables for policies not novated to Hannover Life.

Affiliated Reinsurance

The table and commentary below consist of the impact of the reinsurance agreements with an affiliate, JHNY:

	Years ended December 31,
	2020			2019			2018
(in millions)
Premiums ceded, net	$	(138	)	$	(159	)	$	(167)
Benefits ceded, net		(439	)		(396	)		(408)
Funds held by or deposited with reinsured companies		-			-			-
Other reinsurance receivable		59			42			39
Other amounts payable on reinsurance		6			3			5
Treaty settlement received (paid)		171			207			208

On January 1, 2010, the assets supporting the policyholders who reside in the state of New York (“NY business”) were transferred to JHNY from the Company. The transfer included participating traditional life insurance, variable universal life insurance, universal life insurance, fixed deferred and immediate annuities, participating pension contracts where assets were held in separate accounts, and variable annuities. The NY business was transferred using assumption reinsurance, modified coinsurance and coinsurance with cut-through provisions.

49

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The table and commentary below consist of the impact of the reinsurance agreements with an affiliate, JHRECO:

	Years ended December 31,
	2020			2019			2018
(in millions)
Premiums ceded	$	(482	)	$	(510	)	$	(501)
Premiums ceded, impact of treaty recaptured		-			-			-
Benefits ceded		(638	)		(615	)		(573)
Other reinsurance receivable		8			-			13
Other amounts payable on reinsurance		-			-			-
Funds held under coinsurance		8,628			7,771			7,131
Treaty settlement received (paid)		27			5			20

The Company reinsures a portion of the risk related to certain life policies with JHRECO.

The Company reinsures a large portion of the Long Term Care (“LTC”) risk under a single accounting and capital regime, which helps to manage JHUSA’s overall risk profile and reduce strain on statutory surplus. JHUSA’s indirect parent company, MFC, is regulated on a global basis by the Canadian insurance regulator, The Office of the Superintendent of Financial Institution (“OSFI”), and reports its results on a consolidated International Financial Reporting Standards (“IFRS”) basis. As such, the agreement has no impact on the parent company financial results.

JHRECO does not retrocede any risks to a third party or affiliates. The risks assumed by JHRECO are solely the responsibility of JHRECO, but they are also retained within the parent company group. Reserve credits taken were $9,589 million and $9,306 million at December 31, 2020 and 2019, respectively. Total amount of funds withheld (including capital) on behalf of the captive reinsurer that back the long term care liabilities was $8,628 million and $7,766 million at December 31, 2020 and 2019, respectively.

The table and commentary below consist of the impact of the reinsurance agreements with an affiliate, MRBL:

	Years ended December 31,
	2020			2019			2018
(in millions)
Premiums ceded	$	(2,797	)	$	(3,243	)	$	(3,763)
Benefits ceded		(8,739	)		(10,026	)		(10,700)
Other reinsurance receivable		59			7			185
Other amounts payable on reinsurance		287			367			660
Funds withheld from unauthorized reinsurers		167			16			7
Funds held under coinsurance		-			81			143
Treaty settlement received (paid)		867			(448	)		178

The Company reinsures 87% of certain group annuity contracts in-force with MRBL. The reinsurance agreement covers all contracts, excluding the guaranteed benefit rider.

The Company reinsures 90% of a significant block of variable annuity contracts in-force with MRBL. All substantial risks, including all guaranteed benefits (GMDB, Guaranteed Minimum Income Benefit (“GMIB”), and GMWB), related to certain specified policies not already reinsured to third parties, are reinsured under the agreement. The base contracts are reinsured on

50

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

a modified coinsurance basis, while the guaranteed benefit reinsurance coverage is apportioned in accordance with the reinsurance agreement provisions between modified coinsurance and coinsurance FWH. The assets supporting the reinsured policies remain invested with the Company. Since the inception of the treaty in 2008, several amendments have been enacted to refine certain aspects of the treaty. The net MRBL reinsurance recoverable includes the impact of ongoing reinsurance cash flows and is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies with changes to ceded reserves and cost of reinsurance recognized as a component of benefits to policyholders on the Statements of Operations.

The Company’s indirect parent company, MFC, is regulated on a global basis by the Canadian insurance regulator, OSFI, and reports on a consolidated IFRS basis. The Company utilizes a dynamic hedging program to manage risks on an economic basis. The IFRS accounting for these derivatives aligns with MFC’s market-based reserving regime. The US statutory accounting and reserving framework does not provide appropriate alignment of economic risk management strategies (hedging) and associated reserve methodologies. The treaty with MRBL provides a mechanism to allow management of the majority of the variable annuity risk under a single consolidated reserve and capital regime, rather than managing the block simultaneously under two very diverse frameworks.

As a coinsurance / modified coinsurance treaty, MRBL holds $780 million and $2,063 million as a coinsurance reserve and JHUSA holds $2,199 million and $249 million as a modified coinsurance reserve at December 31, 2020 and 2019, respectively. The IFRS reserves that MRBL holds for variable annuities are similar in concept to VM-21. The calculations are a real-world stochastic calculation at CTE(70), based on the guaranteed benefits and fees in isolation rather than the whole contract, including the cash flows generated from the dynamic hedging program and including margins for adverse deviation. The real-world stochastic scenarios are subject to Canadian Institute of Actuaries equity and bond fund return calibration criteria. Reserve credits taken were $167 million and $16 million at December 31, 2020 and 2019, respectively, and there is no supporting collateral.

MRBL does not retrocede any risks to a third party. The risks assumed by MRBL are solely the responsibility of MRBL, but they are also retained within MFC. This transaction has no impact on MFC’s financial statements as it reports its risks on a consolidated basis.

On September 30, 2018, the Company entered into a combination coinsurance and modified coinsurance agreement with MRBL to cede 95% of certain single life and survivorship variable universal life products. The transactions included the transfer from JHUSA of $662 million of policy liabilities. The transactions resulted in a pre-tax gain of $500 million, including a ceding commission received of $500 million, and an increase in surplus of $395 million net of tax, which was deferred and will be amortized over a period of approximately 20 years.

The Company entered into a Stop Loss Reinsurance Agreement with MRBL, effective April 1, 2017, simultaneous with entering into a coinsurance with partial funds withheld agreement with MMRC, as described below.

The table and commentary below consist of the impact of the reinsurance agreement with an affiliate, Manulife Reinsurance Limited (“MRL”):

	Years ended December 31,
	2020			2019			2018
(in millions)
Premiums ceded	$	30		$	(102	)	$	(133)
Benefits ceded		(579	)		(623	)		(595)
Other reinsurance receivable		-			-			-
Other amounts payable on reinsurance		-			7			7
Funds withheld from unauthorized reinsurers		-			145			329
Treaty settlement received (paid)		(23	)		(30	)		(30)

51

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The Company entered into a coinsurance/modified coinsurance agreement with an affiliate, MRL, to reinsure 90% of all risks not already reinsured to third parties on various universal life contracts effective December 15, 2000. Subsequent amendments added further universal life and some term contracts. The Company amended the agreement during 2014 to simplify treaty administration and to modify the structure of the treaty to a modified coinsurance FWH structure. Effective December 31, 2020, the Company novated universal life policies from MRL to MRBL. The above table includes the 2020 activity with MRL, prior to the novation.

The table and commentary below consist of the impact of the reinsurance agreements with an affiliate, JHLH:

	Years ended December 31,
	2020			2019			2018
(in millions)
Premiums ceded	$	(28	)	$	(27	)	$	(28)
Premiums assumed		-			-			-
Benefits ceded		(26	)		(24	)		(22)
Benefits assumed		23			19			19
Other reinsurance receivable		-			1			-
Other amounts payable on reinsurance		6			4			5
Funds held under coinsurance		-			-			-
Treaty settlement received (paid)		(20	)		(22	)		(23)

On December 31, 2016, the Company entered into a coinsurance agreement with an affiliate, JHLH, to reinsure 100% of a block of single premium universal life policies.

The table and commentary below consist of the impact of the reinsurance agreement with an affiliate, MMRC:

	Years ended December 31,
	2020			2019			2018
(in millions)
Premiums ceded	$	(161	)	$	(150	)	$	(135)
Premiums assumed		-			-			-
Benefits ceded		(44	)		(22	)		(17)
Benefits assumed		-			-			-
Other reinsurance receivable		-			7			-
Other amounts payable on reinsurance		9			-			22
Funds held under coinsurance		276			222			102
Treaty settlement received (paid)		(63	)		(6	)		(68)

Effective April 1, 2017, the Company entered into a coinsurance with partial FWH agreement with an affiliate, MMRC, to reinsure 100% of the Company’s in-force single-life term life insurance policies and related riders, for certain policy years.

The reinsurance agreement with MMRC was entered into to address the surplus strain caused by the excess of XXX NAIC reserves over the VM-20 reserve levels. This transaction was within the scope of Actuarial Guideline 48, the NAIC Term Life and Universal Life with Secondary Guarantees (XXX/AXXX) Credit for Reinsurance Model Regulation (“AG 48”). In accordance with the terms of AG 48, the obligations of MMRC under the reinsurance agreement are supported by a FWH account and a credit-linked note. The FWH account is funded with assets meeting the definition of “Primary Security” under

52

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

AG 48 and in an amount equal to or in excess of the VM-20 reserve. The credit-linked note is in the amount of the excess of the statutory reserves over the then current “Required Level of Primary Security”.

The Company did not commute any material ceded reinsurance in 2020.

9. Federal Income Taxes

The components of the net deferred tax asset/(liability) are as follows:

	December 31, 2020
	(1)			(2)			(3)
							(Col 1 + 2)
	Ordinary			Capital			Total
(in millions)
(a) Gross deferred tax assets	$	1,560		$	87		$	1,647
(b) Statutory valuation allowance adjustments		121			-			121
(c) Adjusted gross deferred tax assets (a - b)		1,439			87			1,526
(d) Deferred tax assets nonadmitted		-			-			-
(e) Subtotal net admitted deferred tax asset (c - d)		1,439			87			1,526
(f) Deferred tax liabilities		1,488			117			1,605
(g) Net admitted deferred tax asset / (net deferred tax liability) (e - f)	$	(49	)	$	(30	)	$	(79)
	December 31, 2019
	(4)			(5)			(6)
							(Col 4 + 5)
	Ordinary			Capital			Total
(in millions)
(a) Gross deferred tax assets	$	1,534		$	69		$	1,603
(b) Statutory valuation allowance adjustments		121			-			121
(c) Adjusted gross deferred tax assets (a - b)		1,413			69			1,482
(d) Deferred tax assets nonadmitted		-			-			-
(e) Subtotal net admitted deferred tax asset (c - d)		1,413			69			1,482
(f) Deferred tax liabilities		1,489			94			1,583
(g) Net admitted deferred tax asset / (net deferred tax liability) (e - f)	$	(76	)	$	(25	)	$	(101)
	Change
	(7)			(8)			(9)
	(Col 1 - 4)			(Col 2 - 5)			(Col 7 + 8)
	Ordinary			Capital			Total
(in millions)
(a) Gross deferred tax assets	$	26		$	18		$	44
(b) Statutory valuation allowance adjustments		-			-			-
(c) Adjusted gross deferred tax assets (a - b)		26			18			44
(d) Deferred tax assets nonadmitted		-			-			-
(e) Subtotal net admitted deferred tax asset (c - d)		26			18			44
(f) Deferred tax liabilities		(1	)		23			22
(g) Net admitted deferred tax asset / (net deferred tax liability) (e - f)	$	27		$	(5	)	$	22

53

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The Company has recorded a valuation allowance against specific general business tax credit carryforwards of $121 million and $121 million for the years ended December 31, 2020 and 2019, respectively. These tax credits were generated by the legacy JHFC group and are subject to the separate return limitation rules. These credits will not begin to expire until 2027, however due to restrictions on the utilization, management believes that it is more likely than not that the Company will not realize the benefit. In assessing the need for a valuation allowance, management considered the future reversal of taxable temporary differences, future taxable income exclusive of reversing temporary differences, taxable income in the carry back period, as well as tax planning strategies. Tax planning strategies were considered to the extent they were both prudent and feasible and if implemented, would result in the realization of deferred tax assets.

The amount of adjusted gross deferred tax assets admitted under each component and the resulting increase in deferred tax assets by character are as follows:

	December 31, 2020
	(1)		(2)		(3)
					(Col 1 + 2)
	Ordinary		Capital		Total
(in millions)
2. Admission calculation components SSAP No. 101
(a) Federal income taxes paid in prior years recoverable through loss carrybacks.	$	-	$	76	$	76
(b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation. (The lesser of 2(b)1 and 2(b)2 below)		196		-		196
1. Adjusted gross deferred tax assets expected to be realized following the Balance Sheet date.		196		-		196
2. Adjusted gross deferred tax assets allowed per limitation threshold.		1,349		-		1,349
(c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities.		1,243		11		1,254
(d) Deferred tax assets admitted as the result of application of SSAP No. 101. Total (2(a) + 2(b) + 2(c))	$	1,439	$	87	$	1,526

54

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

	December 31, 2019
	(4)			(5)		(6)
						(Col 4 + 5)
	Ordinary			Capital		Total
(in millions)
2. Admission calculation components SSAP No. 101
(a) Federal income taxes paid in prior years recoverable through loss carrybacks.	$	-		$	58	$	58
(b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation. (The lesser of 2(b)1 and 2(b)2 below)		354			-		354
1. Adjusted gross deferred tax assets expected to be realized following the Balance Sheet date.		354			-		354
2. Adjusted gross deferred tax assets allowed per limitation threshold.		1,269			-		1,269
(c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities.		1,059			11		1,070
(d) Deferred tax assets admitted as the result of application of SSAP No. 101. Total (2(a) + 2(b) + 2(c))	$	1,413		$	69	$	1,482
	Change
	(7)			(8)		(9)
	(Col 1 - 4)			(Col 2 - 5)		(Col 7 + 8)
	Ordinary			Capital		Total
(in millions)
2. Admission calculation components SSAP No. 101
(a) Federal income taxes paid in prior years recoverable through loss carrybacks.	$	-		$	18	$	18
(b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation. (The lesser of 2(b)1 and 2(b)2 below)		(158	)		-		(158)
1. Adjusted gross deferred tax assets expected to be realized following the Balance Sheet date.		(158	)		-		(158)
2. Adjusted gross deferred tax assets allowed per limitation threshold.		80			-		80
(c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities.		184			-		184
(d) Deferred tax assets admitted as the result of application of SSAP No. 101. Total (2(a) + 2(b) + 2(c))	$	26		$	18	$	44

55

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

	2020	2019
(in millions)
(a) Ratio percentage used to determine recovery period and threshold limitation amount	849%	845%
(b) Amount of adjusted capital and surplus used to determine recovery period and threshold limitation in 2(b)2 above	$    8,997	$    8,461

Impact of tax planning strategies is as follows:

	December 31, 2020
	(1)			(2)
	Ordinary			Capital
(in millions)
(a) Determination of Adjusted Gross Deferred Tax Assets and Net Admitted Deferred Tax Assets by tax character as a percentage.
1. Adjusted Gross DTAs Amount From Note 9A1(c)	$	1,439		$	87
2. Percentage of Adjusted Gross DTAs By Tax Character Attributable To The Impact of Tax Planning Strategies		0	%		0%
3. Net Admitted Adjusted Gross DTAs Amount from Note 9A1(e)	$	1,439		$	87
4. Percentage of Net Admitted Adjusted Gross DTAs by Tax Character Attributable To The Impact of Tax Planning Strategies		0	%		0%
	December 31, 2019
	(3)			(4)
	Ordinary			Capital
(in millions)
(a) Determination of Adjusted Gross Deferred Tax Assets and Net Admitted Deferred Tax Assets by tax character as a percentage.
1. Adjusted Gross DTAs Amount From Note 9A1(c)	$	1,413		$	69
2. Percentage of Adjusted Gross DTAs By Tax Character Attributable To The Impact of Tax Planning Strategies		0	%		0%
3. Net Admitted Adjusted Gross DTAs Amount from Note 9A1(e)	$	1,413		$	69
4. Percentage of Net Admitted Adjusted Gross DTAs by Tax Character Attributable To The Impact of Tax Planning Strategies		0	%		0%

56

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

	Change
	(5)		(6)
	(Col 1 - 3)		(Col 2 - 4)
	Ordinary		Capital
(in millions)
(a) Determination of Adjusted Gross Deferred Tax Assets and Net Admitted Deferred Tax Assets by tax character as a percentage.
1. Adjusted Gross DTAs Amount From Note 9A1(c)	$	26	$	18
2. Percentage of Adjusted Gross DTAs By Tax Character Attributable To The Impact of Tax Planning Strategies		0%		0%
3. Net Admitted Adjusted Gross DTAs Amount from Note 9A1(e)	$	26	$	18
4. Percentage of Net Admitted Adjusted Gross DTAs by Tax Character Attributable To The Impact of Tax Planning Strategies		0%		0%

The Company’s tax planning strategies do not include the use of reinsurance.

There are no unrecognized deferred tax liabilities for amounts described in ASC 740-10-25-3.

Current income taxes incurred consist of the following major components:

	Years Ended December 31,
	(1)		(2)		(3)
					(Col 1 - 2)
	2020		2019		Change
(in millions)
1. Current income tax
(a) Federal	$	(64)	$	(286)		$      222
(b) Foreign		-		-		-
(c) Subtotal		(64)		(286)		222
(d) Federal income tax on net capital gains		291		201		90
(e) Utilization of capital loss carryforwards		-		-		-
(f) Other		-		-		-
(g) Federal and foreign income taxes incurred	$	227	$	(85)		$      312

57

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows:

	December 31,
	(1)		(2)		(3)
					(Col 1 - 2)
	2020		2019		Change
(in millions)
2. Deferred tax assets:
(a) Ordinary:
(1) Discounting of unpaid losses	$	-	$	-	$	-
(2) Unearned premium reserve		-		-		-
(3) Policyholder reserves		682		665		17
(4) Investments		103		80		23
(5) Deferred acquisition costs		473		462		11
(6) Policyholder dividends accrual		46		49		(3)
(7) Fixed assets		-		-		-
(8) Compensation and benefits accrual		32		32		-
(9) Pension accrual		21		18		3
(10) Receivables - nonadmitted		62		59		3
(11) Net operating loss carryforward		-		-		-
(12) Tax credit carry-forward		121		121		-
(13) Other (including items <5% of total ordinary tax assets)		20		48		(28)
(99) Subtotal	$	1,560	$	1,534	$	26
(b) Statutory valuation allowance adjustment		121		121		-
(c) Nonadmitted		-		-		-
(d) Admitted ordinary deferred tax assets (2(a)(99) - 2(b) - 2(c))	$	1,439	$	1,413	$	26
(e) Capital:
(1) Investments	$	87	$	69	$	18
(2) Net capital loss carryforward		-		-		-
(3) Real estate		-		-		-
(4) Other (including items <5% of total capital tax assets)		-		-		-
(99) Subtotal	$	87	$	69	$	18
(f) Statutory valuation allowance adjustment		-		-		-
(g) Nonadmitted		-		-		-
(h) Admitted capital deferred tax assets (2(e)(99) - 2(f) - 2(g))	$	87	$	69	$	18
(i) Admitted deferred tax assets (2(d)+2(h))	$	1,526	$	1,482	$	44

58

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

3. Deferred tax liabilities:
(a) Ordinary:
(1) Investments	$	1,176		$	1,100		$	76
(2) Fixed assets		27			18			9
(3) Deferred and uncollected premium		6			12			(6)
(4) Policyholder reserves		208			256			(48)
(5) Other (including items <5% of total ordinary tax liabilities)		71			103			(32)
(99) Subtotal	$	1,488		$	1,489		$	(1)
(b) Capital:
(1) Investments	$	117		$	94		$	23
(2) Real estate		-			-			-
(3) Other (including items <5% of total capital tax liabilities)		-			-			-
(99) Subtotal	$	117		$	94		$	23
(c) Deferred tax liabilities (3(a)(99) + 3(b)(99))	$	1,605		$	1,583		$	22
4. Net deferred tax assets/liabilities (2(i) - 3(c))	$	(79	)	$	(101	)	$	22

The change in net deferred income taxes is comprised of the following:

	December 31,
	2020			2019		Change
(in millions)
Total deferred tax assets	$	1,526		$	1,482	$	44
Total deferred tax liabilities		1,605			1,583		22
Net deferred tax assets (liabilities)	$	(79	)	$	(101)	$	22
Tax effect of unrealized gains and losses							(159)
Tax effect of unrealized foreign exchange gains (losses)							(2)
Other							34
Change in net deferred income taxes						$	149

59

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The provision for federal and foreign income taxes incurred is different from that which would be obtained by applying the statutory federal income tax rate of 21% to income before income tax (including realized capital gains). The significant items causing this difference are as follows:

	Years Ended December 31,
	2020			2019			2018
(in millions)
Ordinary provisions computed at statutory rate	$	67		$	221		$	(7)
Net realized capital gains (losses) before IMR at statutory rate		246			87			153
Change in nonadmitted assets		-			-			-
Reinsurance		47			(49	)		77
Valuation allowance		-			-			-
Tax-exempt income		(18	)		(22	)		1
Nondeductible expenses		3			2			2
Foreign tax expense gross up		5			6			5
Amortization of IMR		(87	)		(32	)		(138)
Tax recorded in surplus		(11	)		(11	)		14
Dividend received deduction		(95	)		(134	)		(159)
Investment in subsidiaries		(15	)		(16	)		(18)
Prior year adjustment		(12	)		(19	)		(69)
Tax credits		(21	)		(27	)		(23)
Change in tax reserve		1			(13	)		33
Pension		-			-			-
Tax rate change		(32	)		-			(185)
Other		-			-			2
Total	$	78		$	(7	)	$	(312)
Federal and foreign income taxes incurred	$	(64	)	$	(286	)	$	(725)
Capital gains tax		291			201			396
Change in net deferred income taxes		(149	)		78			17
Total statutory income tax expense (benefit)	$	78		$	(7	)	$	(312)

As of December 31, 2020, the Company had the following carry forwards:

	Origination     Year		Expiration Year		Amount
(in millions)
Affordable Housing Tax Credits		2007		2027		19
		2008		2028		53
		2009		2029		49
						$      121

The federal income taxes incurred on capital gains available for recoupment in the event of future net capital losses were $268 million, $0 million and $0 million for the years 2020, 2019 and 2018 respectively.

The Company has no deposits under Section 6603 of the Internal Revenue Code.

60

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The Company is included in the consolidated federal income tax return of JHFC with the following entities:

Essex Corporation	John Hancock Insurance Agency Inc.
Farmland Management Services, Inc.	John Hancock Leasing Corp.
Guide Financial, Inc.	John Hancock Life & Health Insurance Company
Hancock Farmland Services, Inc.	John Hancock Life Insurance Company of New York
Hancock Forest Management Inc.	John Hancock Realty Advisors Inc.
Hancock Natural Resource Group Inc.	John Hancock Realty Mgt. Inc.
JH 575 Rengstorff LLC	John Hancock Signature Services Inc.
JH Hostetler LLC	John Hancock Natural Resource Corp.
JH Kearny Mesa 5 LLC	Manulife (Michigan) Reassurance Company
JH Kearny Mesa 7 LLC	Manulife Reinsurance (Bermuda) Limited
JH Kearny Mesa 9 LLC	Manulife Reinsurance Limited
JH Networking Insurance Agency Inc.	Manulife Service Corporation
JH Ott LLC	MCC Asset Management Inc.
JH Tulare 8 LLC	PT Timber Inc.
	JH Signature Insurance Agency, Inc. (formerly
John Hancock Assignment Company	Signator Insurance Agency Inc.)
John Hancock Financial Corporation	The Manufacturers Investment Corporation
John Hancock Financial Network Inc.
John Hancock Funding Company LLC

In accordance with the income tax sharing agreements in effect for the applicable tax years, the Company’s income tax expense (benefit) is computed as if the Company filed separate federal income tax returns with tax benefits provided for operating losses and tax credits when utilized by the consolidated group. Intercompany settlements of income taxes are made through an increase or reduction to amounts due to or from affiliates. Such settlements occur on a periodic basis in accordance with the tax sharing agreements.

Taxes receivable from / (payable to) affiliates are $37 million and $52 million at December 31, 2020 and 2019, respectively, and are included in other assets or current federal income taxes payable on the Balance Sheets.

The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The Company is under continuous examination by the Internal Revenue Service (“IRS”). The IRS completed the audit of tax years 2014-2015 with the exception of one issue that is currently in appeals. The audit of tax years 2016-2018 is currently in process.

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

	2020		2019
(in millions)
Balance at beginning of year	$	71	$	108
Additions based on tax positions related to the current year		1		1
Payments		-		-
Additions for tax positions of prior years		-		-
Reductions for tax positions of prior years		-		(38)
Balance at end of year	$	72	$	71

Included in the balances as of December 31, 2020 and 2019, are $72 million and $71 million, respectively, of unrecognized benefits that, if recognized, would affect the Company’s effective tax rate. Included in the balances as of December 31, 2020 and 2019, are $0 million and $0 million of tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.

The Company’s liability for unrecognized tax benefits is not expected to materially change in the next twelve months.

61

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The Company recognizes interest accrued related to unrecognized tax benefits and penalties in income tax expense in the Statements of Operations. The Company recognized approximately $0 million, $0 million, and ($3) million of interest expense / (benefit) for the years ended December 31, 2020, 2019 and 2018, respectively. The Company had approximately $4 million and $7 million accrued for interest as of December 31, 2020 and 2019, respectively. The Company did not recognize any material penalties for the years ended December 31, 2020, 2019 and 2018.

The Company filed a refund claim with the IRS for the AMT credit carryforward balance that remained as of December 31, 2017. The Company is awaiting the refund and has recorded a current tax recoverable for the full amount of the refundable credit of $243 million.

On March 27, 2020, Congress signed into law the Coronavirus Aid, Relief, and Economic Security Act, (“CARES Act”) in response to the economic fallout of the COVID-19 pandemic in the United States. The CARES Act provided a 5-year carryback for net operating losses arising in tax years 2018, 2019 and 2020 to provide relief to businesses. In 2020, the Company filed a claim with the IRS to carry back 2018 net operating losses to recoup taxes paid in 2017, in lieu of carrying forward to 2019. The effect of the tax rate differential in years 2018 and 2017 (21% vs. 35%, respectively) resulted in a $(32) million benefit on the effective tax rate.

In 2018, the Company updated policy level tax reserves in accordance with the Tax Cuts and Jobs Act and reflected impacts of $108 million in its temporary differences for Actuarial Liabilities in both deferred tax assets and deferred tax liabilities. The transitional deferred tax liability is being amortized into taxable income over 8 years, in the amount of $14 million per year.

10. Capital and Surplus

There are no restrictions placed on the Company’s unassigned surplus other than restrictions on dividend payments described below.

Under Michigan State insurance laws, no insurer may pay any shareholder dividends from any source other than statutory earned surplus without the prior approval of the Director. Dividends to the shareholder that may be paid without prior approval of the Director are limited by the laws of the State of Michigan. Such dividends are permissible if, together with other dividends or distributions made within the preceding 12 months, they do not exceed the greater of 10% of the JHUSA surplus as of December 31 of the preceding year, or the net gain from operations excluding realized capital gains and (losses) for the 12 month period ending December 31 of the immediately preceding year. For the years ended December 31, 2020, 2019 and 2018, the Company paid ordinary dividends of $975 million, $845 million and $600 million and extraordinary dividends of $0 million, $0 million, and $0 million to its parent company MIC, respectively.

Life/health insurance companies are subject to certain Risk-Based Capital (“RBC”) requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life/health insurance company is to be determined based on the various risk factors related to it. As of December 31, 2020 and 2019, based on calculations pursuant to those requirements, the Company’s total adjusted capital exceeds the company action level RBC.

The Company has surplus notes described below in the amount of $585 million outstanding as of December 31, 2020.    The issuance of the surplus notes was approved by the insurance regulators with the following repayment conditions and restrictions: payment of principal and accrued interest otherwise required or permissible cannot be made unless approved by the Board of Directors, approved in writing by the Director, and the Company has sufficient earned surplus or such other funds as may be approved by the Director available for such payment.

Surplus notes in the amount of $450 million were issued on February 25, 1994, for cash pursuant to Rule 144A under the Securities Act of 1933. 100% of the issued and outstanding surplus notes are represented by a global note registered in the name of a nominee of the Depository Trust Company. The interest rate is fixed at 7.375%, and interest is payable semi-annually. The notes mature on February 15, 2024. Interest expense was $33 million for years ended December 31, 2020, 2019 and 2018. Total interest paid through December 31, 2020 was $879 million.

Pursuant to an amended and restated subordinated surplus note dated September 30, 2008, the Company borrowed $136 million from JHFC. Interest is calculated and reset quarterly at a fluctuating rate equal to 3-month London Inter-Bank Offered Rate (“LIBOR”) plus 125 basis points and is payable semi-annually. The note which was to have matured on December 15, 2016

62

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

was extended to December 14, 2021. Interest expense was $3 million, $5 million, and $5 million for the years ended December 31, 2020, 2019 and 2018, respectively. Total interest paid through December 31, 2020 was $32 million.

Under Michigan State liquidation statutes, the claims of the Depository Trust Company and JHFC (“the surplus noteholders”) come before those of the Company’s shareholders. There is no preferential treatment in claims between the surplus noteholders.

11. Related Party Transactions

Service Agreements

The Company has formal service agreements with MFC and MLI, which can be terminated by either party upon two months’ notice. Under the various agreements, the Company will pay a fee for services received under the agreement which includes legal, actuarial, investment, data processing, accounting, and certain other administrative services. Management fees relating to the agreement were $178 million, $216 million, and $296 million, respectively, for the years ended December 31, 2020, 2019 and 2018.

The Company has Administrative Service Agreements with its subsidiaries and affiliates whereby the Company will be reimbursed for operating expenses incurred by the Company. Services provided under the agreement include legal, personnel, marketing, investment accounting, and certain other administrative services and are billed based on intercompany cost allocations or total average daily net assets. The amounts earned under the agreements were $688 million, $744 million, and $748 million for the years ended December 31, 2020, 2019 and 2018, respectively.

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

Other

During 2020, 2019 and 2018, respectively, the Company received dividends of $21 million, $22 million, and $28 million from John Hancock Variable Trust Advisors LLC (“JHVTA”) (formerly John Hancock Investment Management Services LLC), $72 million, $77 million, and $83 million from JHD, $0 million, $100 million, and $100 million from JHNY, $0 million, $0 million, and $0 million from JHLH, $217 million, $251 million, and $404 million from John Hancock Subsidiaries LLC (“JHS LLC”), and $0 million, $0 million, and $1 million from CLA CRE Opportunity Fund I LP and $0 million, $0 million and $27 million from CIP / MCRT Longview Meadows LLC (“Concord Mews”). These dividends are included in the Company’s net investment income.

During 2018, the Company received a return of capital of $80 million from its 91% ownership of Concord Mews.

The Company did not own any shares of the stock of its parent, MIC, or its ultimate parent, MFC at December 31, 2020 and 2019, respectively.

The Company did not recognize any impairment write-down for its investment in subsidiaries, controlled or affiliated companies for the years ended December 31, 2020, 2019 and 2018, respectively.

The Company is the owner and beneficiary of corporate owned life insurance (“COLI”) policies issued by JHLH. The asset balances equal to the cash surrender value of the internal COLI policies was $596 million and $586 million at December 31, 2020 and 2019, respectively.

The Company operates a liquidity pool in which affiliates can invest excess cash. Terms of operation and participation in the liquidity pool are set out in the Second Restated and Amended Liquidity Pool and Loan Facility Agreement effective January 1, 2010. The maximum aggregate amounts that JHUSA can accept into the Liquidity Pool are $5 billion in U.S. dollar deposits and $200 million in Canadian dollar deposits. Under the terms of the agreement, certain participants may receive advances from the Liquidity Pool up to certain predetermined limits. By acting as the banker the Company can earn a spread over the amount it pays its affiliates and this aggregation and resulting economies of scale allows the affiliates to improve the investment return on their excess cash. Interest payable on U.S. dollar funds will be reset daily to the one-month U.S. Dollar- London

63

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

Inter-Bank Bid Rate (“LIBID”) and interest payable on Canadian dollar funds is based off the one-month Canadian Dollar Offering Rate (“CDOR”) plus a spread.

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

	December 31,
	2020		2019
(In millions)
The Manufacturers Investment Corporation	$	1,262	$	320
John Hancock Financial Corporation		53		89
Manulife Reinsurance Limited		23		27
Manulife Reinsurance (Bermuda) Ltd.		185		229
Manulife (Michigan) Reassurance Company		2		7
John Hancock Life & Health Insurance Company		187		228
John Hancock Reassurance Company, Ltd.		172		65
John Hancock Life Insurance Company New York		377		520
John Hancock Variable Trust Advisers LLC (formerly John Hancock Investment Management Services LLC)		20		20
John Hancock Subsidiaries LLC		23		18
John Hancock Insurance Agency, Inc.		6		6
Essex Corporation		1		1
John Hancock Signature Services Inc.		8		7
John Hancock Realty Advisors		2		3
John Hancock Investment Management LLC (formerly John Hancock Advisers LLC)		82		41
Manulife Investment Management (US) LLC (formerly Manulife Asset Management (US) LLC)		33		39
Manulife Investment Management Private Markets (US) LLC (formerly Hancock Capital Investment Management LLC)		7		8
John Hancock Retirement Plan Services LLC		23		49
The Berkeley Financial Group, LLC		3		2
JH Signature Insurance Agency, Inc. (formerly Signator Insurance Agency, Inc.)		23		19
JH Networking Insurance Agency, Inc.		2		6
John Hancock Administrative Services LLC		-		-
John Hancock Financial Network, Inc.		43		45
Hancock Natural Resource Group, Inc.		19		35
Hancock Forest Management, Inc.		4		6
John Hancock Personal Financial Services, LLC		7		2
John Hancock Funding Company LLC		10		(4)
Total	$	2,577	$	1,788

Effective March 31, 1996, MLI provides a claims paying guarantee to certain U.S. policyholders. The claims guarantee agreement was terminated effective August 13, 2008, but still remains in effect with respect to policies issued by the Company prior to that date.

MFC fully and unconditionally guarantees payments from the guarantee periods of the accumulation phase for certain of the Company’s market value adjusted annuity contracts.

64

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

MFC fully and unconditionally guarantees JHLICO’s SignatureNotes. In December 2009, the entity that formerly issued these notes, JHLICO, ceased to exist and its property and obligations became the property and obligations of the Company.

MFC’s guarantees of the market value adjusted deferred annuity contracts and SignatureNotes are unsecured obligations of MFC and are subordinated in right of payment to the prior payment in full of all other obligations of MFC, except for other guarantees or obligations of MFC, which by their terms are designated as ranking equally in right of payment with or subordinate to MFC’s guarantees of the market value adjusted deferred annuity contracts and SignatureNotes.

The Company also enters into debt and reinsurance transactions with its affiliates. Refer to the debt and reinsurance notes for further details.

12. Commitments, Guarantees, Contingencies, and Legal Proceedings

Commitments: The Company has extended commitments to purchase long-term bonds of $383 million, purchase other invested assets of $2,381 million, purchase real estate of $112 million, and issue agricultural and commercial mortgages of $71 million at December 31, 2020. If funded, loans related to real estate mortgages would be fully collateralized by related properties. Approximately 34% of these commitments expire in 2021.

There were no leasing arrangements that the Company entered into as lessee which could have a material financial effect.

During 2001, the Company entered into an office ground lease agreement, which expires on September 20, 2096. In conjunction with the September 25, 2018 sale of the home office property, the total lease commitment for future years related to the office ground lease was reduced by $343 million. During 2012, the Company entered into a parking lease agreement, which expires on December 31, 2050. The terms of the lease agreements provide for adjustments in future periods. The future minimum lease payments, by year and in the aggregate, under these leases and other non-cancelable operating leases along with the associated sub-lease income are as follows:

	Non-cancelable         Operating          Leases
(in millions)
2021	$	9
2022		8
2023		5
2024		3
2025		3
Thereafter		12
Total	$	40

The Company does not have any sublease income related to its office space.

The Company’s investment in leveraged leases relates to equipment used primarily in the transportation industries; however, this type of leasing transaction is not a significant part of the Company’s business activities in terms of revenue, net income, or assets.

As of December 31, 2018, the Company recorded a restructuring charge of approximately $56 million, net of tax, primarily related to a voluntary early retirement program as well as costs to optimize our real estate footprint in the United States.

Guarantees: In the course of business, the Company enters into guarantees which vary in nature and purpose and which are accounted for and disclosed under statutory accounting principles.

The Company has issued guarantee agreements pursuant to which the Company guarantees the obligations of JHNY and JHLH under the OTC International Swaps and Derivatives Association, Inc. (“ISDA”) cleared and exchange-traded derivative agreements and transactions entered into by JHNY and JHLH with external counterparties. The ISDA guarantees are subject

65

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

to an overall limit of $1 billion of Potential Future Exposure, using a three-week and 95% confidence parameters, in calculating the counterparty risk exposure.

The Company is party to a financial support agreement with JHLH pursuant to which it has agreed to maintain JHLH’s capital level such that its risk-based capital ratio shall be at or above 225% of the company action level annually. In addition, under the terms of the financial support agreement, the Company undertakes to provide sufficient liquidity to enable JHLH to make timely payment of its contractual obligations.

Contingencies: The Company acts as an intermediary/broker in OTC derivative instruments. In these cases, the Company enters into derivative transactions on behalf of affiliated companies and then enters into offsetting derivative transactions with the affiliate. In the event of default of either party, the Company is still obligated to fulfill its obligations with the other party.

The Company is subject to insurance guaranty fund laws in the states in which it does business. Pursuant to these laws, insurance companies are assessed, and required to make periodic payments, to be used to pay benefits to policyholders and claimants of insolvent or rehabilitated insurance companies. Many states allow these assessments to be credited against future premium taxes. The Company believes such assessments in excess of amounts accrued will not materially affect its financial position.

Legal Proceedings: The Company is regularly involved in litigation, both as a defendant and as a plaintiff. The litigation naming the Company as a defendant ordinarily involves its activities as a provider of insurance protection and wealth management products, an employer, and a taxpayer. In addition, the Michigan Department of Insurance and Financial Services, the Michigan Attorney General, the Securities and Exchange Commission (“SEC”), the Financial Regulatory Authority, and other government and regulatory bodies regularly make inquiries and, from time to time, require the production of information or conduct examinations concerning the Company’s compliance with, among other things, insurance laws, securities laws, and laws governing the activities of broker-dealers. An estimation of the range of potential outcomes in any given matter is often unavailable until such matters have developed and sufficient information emerges to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals and estimates of reasonably possible losses or ranges of loss based on such reviews.

A class action against the Company in the U.S. District Court for the Southern District of New York (the “Southern District of NY”) in which claims are made that the Company breached, and continues to breach, the contractual terms of certain universal life policies issued between approximately 1990 and 2006 by including impermissible charges in its cost of insurance (“COI”) calculations and certain other rider charges. The Company believes that its COI calculations have been, and continue to be, in accordance with the terms of the policies. In May 2018, the parties agreed to the financial terms of a settlement in the amount of $91 million. On March 18, 2019, the court approved the $91 million settlement, and proceeds were distributed beginning in June 2019.

In June 2018, a class action was initiated against the Company in the Southern District of NY on behalf of owners of performance universal life policies first issued between 2003 and 2009 whose policies are subject to a COI increase announced in 2018. This case has been consolidated with an almost identical related class action that was initiated in October 2018 against the Company in the Southern District of New York and was assigned to the same judge. Discovery has commenced in these cases. No hearings on substantive matters have been scheduled. It is too early to assess the range of potential outcomes for these lawsuits.

66

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

13. Annuity Actuarial Reserves

The Company’s annuity actuarial reserves and deposit fund liabilities and related separate account liabilities that are subject to discretionary withdrawal (with adjustment), subject to discretionary withdrawal (without adjustment), and not subject to discretionary withdrawal provisions are summarized as follows:

	December 31, 2020
	General     Account		Separate Account with   Guarantees		Separate Account   Nonguaranteed		Total		Percent     of Total
(in millions)
Subject to discretionary withdrawal:
With fair value adjustment	$	356	$	241	$	1,590	$	2,187		2%
At book value less current surrender charge of 5% or more		1		-		-		1		0%
At fair value		144		-		132,278		132,422		86%
Total with adjustment or at fair value		501		241		133,868		134,610		88%
At book value without adjustment (minimal or no charge or adjustment)		4,376		-		-		4,376		3%
Not subject to discretionary withdrawal		14,043		199		239		14,481		9%
Total (gross)		18,920		440		134,107		153,467		100%
Reinsurance ceded		9,493		-		-		9,493
Total (net)	$	9,427	$	440	$	134,107	$	143,974
Amount included in book value less current surrender charge above that will move to book value without adjustment in the year after the statement date	$	1	$	-	$	-	$	1

	December 31, 2019
	General         Account		Separate Account with   Guarantees		Separate Account   Nonguaranteed		Total		Percent     of Total
(in millions)
Subject to discretionary withdrawal:
With fair value adjustment	$	459	$	302	$	1,567	$	2,328		2%
At book value less current surrender charge of 5% or more		2		-		-		2		0%
At fair value		-		-		123,248		123,248		85%
Total with adjustment or at fair value		461		302		124,815		125,578		87%
At book value without adjustment (minimal or no charge or adjustment)		4,479		-		-		4,479		3%
Not subject to discretionary withdrawal		14,322		205		189		14,716		10%
Total (gross)		19,262		507		125,004		144,773		100%
Reinsurance ceded		10,116		-		-		10,116
Total (net)	$	9,146	$	507	$	125,004	$	134,657
Amount included in book value less current surrender charge above that will move to book value without adjustment in the year after the statement date	$	-	$	-	$	-	$	-

67

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

14. Life Actuarial Reserves

The Company’s life actuarial reserves and related separate account liabilities that are subject to discretionary withdrawal and not subject to discretionary withdrawal provisions are summarized as follows:

	December 31, 2020
	Account Value		Cash Value		Reserve
A. General Account
(1) Subject to discretionary withdrawal, surrender values, or policy loans:
a. Term Policies with Cash Value	$	-	$	-	$	1
b. Universal Life		4,671		4,610		4,843
c. Universal Life with Secondary Guarantees		15,668		13,900		26,244
d. Indexed Universal Life		464		365		631
e. Indexed Universal Life with Secondary Guarantees		1,861		1,574		2,091
f. Indexed Life		-		-		-
g. Other Permanent Cash Value Life Insurance		17,154		17,154		17,221
h. Variable Life		31		15		24
i. Variable Universal Life		3,068		3,048		2,850
j. Miscellaneous Reserves		-		-		6,624
(2) Not subject to discretionary withdrawal or no cash values
a. Term Policies without Cash Value		-		-		3,043
b. Accidental Death Benefits		-		-		8
c. Disability - Active Lives		-		-		34
d. Disability - Disabled Lives		-		-		149
e. Miscellaneous Reserves		-		-		285
(3) Total (gross: direct + assumed)	$	42,917	$	40,666	$	64,048
(4) Reinsurance Ceded		11,657		11,148		20,837
(5) Total (net) (3) - (4)	$	31,260	$	29,518	$	43,211
B. Separate Account with Guarantees
(1) Subject to discretionary withdrawal, surrender values, or policy loans:
h. Variable Life	$	-	$	-	$	-
i. Variable Universal Life		-		-		-
(2) Not subject to discretionary withdrawal or no cash values
a. Term Policies without Cash Value		-		-		-
b. Accidental Death Benefits		-		-		-
c. Disability - Active Lives		-		-		-
d. Disability - Disabled Lives		-		-		-
e. Miscellaneous Reserves		-		-		-
(3) Total (gross: direct + assumed)	$	-	$	-	$	-
(4) Reinsurance Ceded		-		-		-
(5) Total (net) (3) - (4)	$	-	$	-	$	-
C. Separate Account Nonguaranteed
(1) Subject to discretionary withdrawal, surrender values, or policy loans:
h. Variable Life	$	2,119	$	2,091	$	2,118
i. Variable Universal Life		14,302		14,044		14,093
(2) Not subject to discretionary withdrawal or no cash values
a. Term Policies without Cash Value		-		-		-
b. Accidental Death Benefits		-		-		-
c. Disability - Active Lives		-		-		-
d. Disability - Disabled Lives		-		-		-
e. Miscellaneous Reserves		-		-		-
(3) Total (gross: direct + assumed)	$	16,421	$	16,135	$	16,211
(4) Reinsurance Ceded		-		-		-
(5) Total (net) (3) - (4)	$	16,421	$	16,135	$	16,211

68

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

	December 31, 2019
	Account Value		Cash Value		Reserve
A. General Account
(1) Subject to discretionary withdrawal, surrender values, or policy loans:
a. Term Policies with Cash Value	$	-	$	-	$	-
b. Universal Life		6,018		5,911		6,692
c. Universal Life with Secondary Guarantees		14,070		12,258		24,355
d. Indexed Universal Life		878		627		869
e. Indexed Universal Life with Secondary Guarantees		829		706		735
f. Indexed Life		-		-		-
g. Other Permanent Cash Value Life Insurance		17,608		17,608		18,733
h. Variable Life		-		-		23
i. Variable Universal Life		2,963		2,944		3,054
j. Miscellaneous Reserves		-		-		4,947
(2) Not subject to discretionary withdrawal or no cash values
a. Term Policies without Cash Value		-		-		3,062
b. Accidental Death Benefits		-		-		9
c. Disability - Active Lives		-		-		43
d. Disability - Disabled Lives		-		-		148
e. Miscellaneous Reserves		-		-		320
(3) Total (gross: direct + assumed)	$	42,366	$	40,054	$	62,990
(4) Reinsurance Ceded		9,223		9,150		19,466
(5) Total (net) (3) - (4)	$	33,143	$	30,904	$	43,524
B. Separate Account with Guarantees
(1) Subject to discretionary withdrawal, surrender values, or policy loans:
h. Variable Life	$	-	$	-	$	-
i. Variable Universal Life		-		-		-
(2) Not subject to discretionary withdrawal or no cash values
a. Term Policies without Cash Value		-		-		-
b. Accidental Death Benefits		-		-		-
c. Disability - Active Lives		-		-		-
d. Disability - Disabled Lives		-		-		-
e. Miscellaneous Reserves		-		-		-
(3) Total (gross: direct + assumed)	$	-	$	-	$	-
(4) Reinsurance Ceded		-		-		-
(5) Total (net) (3) - (4)	$	-	$	-	$	-
C. Separate Account Nonguaranteed
(1) Subject to discretionary withdrawal, surrender values, or policy loans:
h. Variable Life	$	1,957	$	1,927	$	1,957
i. Variable Universal Life		12,947		12,647		12,697
(2) Not subject to discretionary withdrawal or no cash values
a. Term Policies without Cash Value		-		-		-
b. Accidental Death Benefits		-		-		-
c. Disability - Active Lives		-		-		-
d. Disability - Disabled Lives		-		-		-
e. Miscellaneous Reserves		-		-		-
(3) Total (gross: direct + assumed)	$	14,904	$	14,574	$	14,654
(4) Reinsurance Ceded		-		-		-
(5) Total (net) (3) - (4)	$	14,904	$	14,574	$	14,654

15. Separate Accounts

Separate accounts held by the Company include individual and group variable annuity and variable life products that offer guaranteed and non-guaranteed returns. The net investment experience of the separate account is credited directly to the policyholder and can be positive or negative.

69

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

For guarantees of amounts in the event of death, the net amount at risk is defined as the excess of the initial sum insured over the current sum insured for fixed premium variable life insurance contracts, and, for other variable life insurance contracts, is equal to the sum insured when the account value is zero and the policy is still in force.

The deposits related to variable annuities generally provide a GMDB. For annuity products, this can take the form of either (a) return of no less than total deposits made to the contract less any partial withdrawals; (b) total deposits made to the contract less any partial withdrawals plus a minimum return; (c) the highest contract value on a specified anniversary date minus any withdrawals following the contract anniversary; or (d) a combination benefit of (b) and (c) above. The assets and liabilities of these accounts are carried at fair value. The GMDB reserve is held in the Company’s general account policy reserves.

The Company sold contracts with GMIB riders from 1998 to 2004. The GMIB rider provides a guaranteed lifetime annuity which may be elected by the contract holder after a stipulated waiting period (7 to 15 years), and which may be larger than what the contract account balance could purchase at then-current annuity purchase rates.

The Company sold contracts with a GMWB rider and has since offered multiple variations of this optional benefit. The GMWB rider provides contract holders a guaranteed annual withdrawal amount over a specified time period or in some cases for as long as they live. In general, guaranteed annual withdrawal amounts are based on deposits and may be reduced if withdrawals exceed allowed amounts. Guaranteed amounts may also be increased as a result of “step-up” provisions which increase the benefit base to higher account values at specified intervals. Guaranteed amounts may also be increased if withdrawals are deferred over a specified period. In addition, certain versions of the GMWB rider extend lifetime guarantees to spouses.

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

For GMDB, the net amount at risk is defined as the current guaranteed minimum death benefit in excess of the current account balance. For GMIB, the net amount at risk is defined as the excess of the current annuitization income base over the current account value. For GMWB, the net amount at risk is defined as the current guaranteed withdrawal amount minus the current account value. For all the guarantees, the net amount at risk is floored at zero at the single contract level.

The deposits related to the variable life insurance contracts are invested in separate accounts and the Company guarantees a specified death benefit if certain specified premiums are paid by the policyholder, regardless of separate account performance.

The assets legally insulated from the general account are attributed to the following products/transactions:

Product/Transaction	Separate Account Legally   Insulated Assets				Separate Account Not Legally Insulated     Assets
	December 31,
(in millions)	2020		2019		2020		2019
Group Annuity Contracts (401K)	$	102,008	$	91,376	$	-	$	-
Variable and Fixed Annuities		28,882		30,453		20		20
Life Insurance		16,710		15,022		-		-
Fixed Products - Institutional and stable value fund		2,067		2,009		-		-
Fixed Products - Retail		29		28		285		324
Investments - Funds		1,487		1,515		-		-
Total	$	151,183	$	140,403	$	305	$	344

70

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

To compensate the general account for the risk taken, the separate account paid risk charges and amounts toward separate account guarantees as follows:

	Risk Charges     Paid to General     Account		Amounts toward Separate Account     Guarantees
(in millions)
2020	$	177	$	61
2019	$	196	$	67
2018	$	210	$	54
2017	$	220	$	62
2016	$	231	$	89

The Company had the following variable annuities with guaranteed benefits:

	December 31,
	2020		2019
(in millions, except for ages)
Account value	$	29,088	$	30,730
Amount of reserve held		2,873		1,000
Net amount at risk - gross		4,757		4,670
Weighted average attained age		70		70

The following assumptions and methodology were used to determine the amounts above at December 31, 2020 and 2019:

● VM-21 is used in 2020 to determine the aggregate reserve for variable annuity products. Actuarial Guideline 43 (“AG 43”) is used in the 2019 reserve calculations.

● For 2020, the prescribed Economic Scenario Generator (“ESG”) is used for VM-21, so there are no calibration criteria requirements. The stochastically generated projection scenarios have met the scenario calibration criteria prescribed in AG 43 for 2019.

● In 2020 and 2019, annuity mortality is based on the Ruark Variable Annuity Table, which is based on an industry study of variable annuity deaths. The table is further adjusted by factors varied by rider types (living benefit/GMDB only) and qualified and non-qualified business.

● In 2020 and 2019, annuity base lapse rates vary by product, policy year, and rider type, where the lapse rates range from 0.5% to 40% for GMDB, GMIB and GMWB. These rates are dynamically reduced for guarantees that are in-the-money and rates are also dynamically increased for GMWBs that are out-of-the-money.

● For variable annuities, the applicable swap curve at December 31 is used for discounting each year.

71

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

Account balances of variable contracts with guarantees were invested in various separate accounts with the following characteristics:

	December 31,
	2020		2019
(in millions)
Type of Fund
Equity	$	26,756	$	26,688
Balanced		8,257		8,787
Bonds		5,588		5,634
Money Market		483		360
Total	$	41,084	$	41,469

Information regarding the separate accounts of the Company is as follows:

	December 31,
	2020						2019
	Nonindexed Guarantee Less than or Equal to 4%		Nonguaranteed Separate Account		Total		Nonindexed Guarantee Less than or Equal to 4%		Nonguaranteed Separate Account		Total
(in millions)
Premiums, deposits and other considerations	$	-	$	13,370	$	13,370	$	-	$	14,538	$	14,538
Reserves for accounts with assets at:
Fair value		440		150,318		150,758		507		139,658		140,165
Amortized cost		-		-		-		-		-		-
Total	$	440	$	150,318	$	150,758	$	507	$	139,658	$	140,165

72

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

	December 31,
	2020						2019
	Nonindexed Guarantee Less than or Equal to 4%		Nonguaranteed Separate Account		Total		Nonindexed Guarantee Less than or Equal to 4%		Nonguaranteed Separate Account		Total
(in millions)
Reserves for separate accounts by withdrawal characteristics:
Subject to discretionary withdrawal:
With fair value adjustment	$	241		$        1,590	$	1,831		$        302		$        1,567	$	1,869
At book value without fair value adjustments and with current surrender charge of 5% or more		-		1,118		1,118		-		1,240		1,240
At fair value		-		145,636		145,636		-		134,458		134,458
At book value without fair value adjustments and with current surrender charge of less than 5%		-		1,735		1,735		-		2,204		2,204
Subtotal		241		150,079		150,320		302		139,469		139,771
Not subject to discretionary withdrawal		199		239		438		205		189		394
Total	$	440		$    150,318	$	150,758		$            507		$    139,658	$	140,165

Amounts transferred to and from separate accounts are as follows:

	December 31,
	2020			2019			2018
(in millions)
Transfers to separate accounts	$	18,902		$	16,277		$	15,071
Transfers from separate accounts		25,329			23,327			22,687
Net transfers to (from) separate accounts	$	(6,427	)	$	(7,050	)	$	(7,616)

73

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

16. Employee Benefit Plans

Retirement Plans: The Company participates in the John Hancock Pension Plan, a qualified defined benefit plan that covers substantially all of its employees. The Company also participates in the John Hancock Non-Qualified Pension Plan, a nonqualified defined benefit plan for employees whose qualified cash balance benefit is restricted by the Internal Revenue Code. Both plans are sponsored by MIC. The non-qualified defined benefit plan was frozen except for grandfathered participants as of January 1, 2008, and the benefits accrued under this plan continue to be subject to the plan’s provisions.

The Company is jointly and severally liable for the funding requirements of the plans and will recognize its allocation, from MIC, of the required contributions to the plans as pension expense in its Statements of Operations. The allocation is derived by utilizing participant data, provided by the plan actuary, to calculate payments into the trust for the qualified plan and payments to participants for the non-qualified plan. The expense for these plans was $32 million, $30 million, and $26 million in 2020, 2019 and 2018, respectively.

The Company participates in the John Hancock Supplemental Retirement Plan, a non-qualified defined contribution plan maintained by MFC, which was established as of January 1, 2008 with participant directed investment options. The expense for this plan was not material for the years ended 2020, 2019 and 2018, respectively. The prior non-qualified defined contribution plan was frozen except for grandfathered participants as of January 1, 2008, and the benefits accrued under the prior plan continue to be subject to the prior plan provisions.

The Company also maintains a separate rabbi trust for the purpose of holding assets to be used to satisfy its obligations with respect to certain other non-qualified retirement plans of $333 million and $313 million at December 31, 2020 and 2019, respectively. In the event of insolvency of the Company, the rabbi trust assets can be used to satisfy claims of general creditors.

During 2018, the Company implemented its North American voluntary early retirement program. The program resulted in the voluntary separation of 229 employees in the U.S. by the end of 2019. A curtailment loss of $7 million resulting from the program was recorded by MIC in earnings during the 4th quarter of 2018. This loss represents the change in net defined benefit and retiree welfare liabilities due to employees separating sooner and with different post-retirement benefits than had previously been assumed. The Company will recognize its allocation of the curtailment loss in earnings as payments to participants are made.

401 (k) Plans: The Company participates in qualified defined contribution plans for its employees who meet certain eligibility requirements. These plans include the Investment-Incentive Plan for John Hancock Employees and the John Hancock Savings and Investment Plan. Both plans are sponsored by JHUSA. Expense is primarily comprised of the amounts the Company contributes to the plans, which fully matches eligible participants’ basic pre-tax or Roth contributions, subject to a 4% per participant maximum. The expense for the defined contribution plans was not material for the years ended 2020, 2019 and 2018, respectively.

Deferred Compensation Plan: The Company maintains the Deferred Compensation Plan for Certain Employees of John Hancock, and the Deferred Compensation Plan of the John Hancock Financial Network, both of which are deferred compensation plans sponsored by MFC. These plans are for a select group of management or highly compensated employees and certain qualified agents. The plans are fully funded and accounts are maintained by a third-party administrator. Under these plans, participants have the flexibility and opportunity to invest their plan balances in mutual funds. The liability for these plans at December 31, 2020 and 2019 was $147 million and $127 million, respectively.

Prior to January 1, 2006, the Company offered the Legacy Deferred Compensation Plan for Certain Employees of John Hancock Life Insurance Company (USA), the legacy plan, which is closed to new participation and is unfunded. These are notional accounts and all liabilities have remained with the Company and are paid out of general account assets when a distribution is taken. The liability for this plan was not material as of December 31, 2020 and 2019 respectively.

Postretirement Benefit Plan: The Company participates in the John Hancock Employee Welfare Plan which is sponsored by MIC. Consistent with the pension plan, the Company is jointly and severally liable for the funding requirements of the plan and will recognize its allocation, from MIC, of the benefits earned by plan participants as postretirement benefits expense in its Statements of Operations. The allocation is derived by utilizing participant data, provided by the plan actuary, to calculate the benefits earned; i.e., service cost, relating to participants employed by the Company. In addition, any difference between actual cash paid for benefits to plan participants and benefits earned is recorded directly to unassigned surplus. The expense

74

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

and charge to surplus for the John Hancock Employee Welfare Plan were not material for the years ended 2020, 2019 and 2018, respectively.

17. Lines of Credit, Consumer Notes and Affiliated Debt

Lines of Credit: At December 31, 2020, JHUSA and MIC share in a committed line of credit established by MFC totaling $1 billion, which was extended to 2023. MFC will commit, when requested, to loan funds at prevailing interest rates as determined in accordance with the line of credit agreement. Under the terms of the agreement, the Company is required to maintain a certain minimum level of net worth and comply with certain other covenants, as long as any amount is owed to the lender under the agreement. At December 31, 2020, the Company had no outstanding borrowings under the agreement.

The Company had a committed line of credit agreement established by MLI totaling $1 billion. MLI committed, when requested, to loan funds at prevailing interest rates as determined in accordance with the line of credit agreement. Under the terms of the agreement, the Company is required to maintain a certain minimum level of net worth and comply with certain other covenants as long as any amount is owed to the lender under the agreement. The committed line of credit expired on March 18, 2018.

At December 31, 2020, the Company, MFC, and other MFC subsidiaries had a committed line of credit through a group of banks totaling $500 million pursuant to a multi-year facility, which was extended to 2023. The banks will commit, when requested, to loan funds at prevailing interest rates as determined in accordance with the line of credit agreement. Under the terms of the agreement, MFC is required to maintain a certain minimum level of net worth, and MFC and the Company are required to comply with certain other covenants, which were met at December 31, 2020. At December 31, 2020, MFC and its subsidiaries, including the Company, had no outstanding borrowings under the agreement.

At December 31, 2020, the Company had a line of credit agreement established with JHS LLC totaling up to $120 million, which will expire February 15, 2022. Under the agreement, the Company may loan funds, when requested, at prevailing interest rates as determined in accordance with the line of credit agreement. At December 31, 2020, the Company had $115 million outstanding borrowings under the agreement with a fair value of $115 million. This loan replaced a senior note receivable for $30 million issued by JHS LLC during 2016, and additional advances of $25 million on February 15, 2017 and $60 million on May 21, 2018. Interest on the loan is calculated at a fluctuating rate equal to the 360 day-year for the actual number of days elapsed and is payable annually. The combined interest income on the loans was $3 million and $4 million for the years ended December 31, 2020 and 2019.    

Pursuant to a revolving promissory note dated November 2, 2020, the Company entered into a line of credit agreement with John Hancock GA Senior Loan Trust (Delaware) (“SL Trust”) totaling up to $50 million. The term of the line of credit will be one year and is expected to be renewed on an annual basis. Under the agreement, the Company may loan funds, when requested, at prevailing interest rates as determined in accordance with the line of credit agreement. Interest on the loan is calculated at a fluctuating rate equal to the 3-month LIBOR rate plus 30 basis points per annum and is payable quarterly. At December 31, 2020, the Company had no outstanding borrowings under the agreement.

Effective June 30, 2020, the Company entered into a senior loan facility with The Manufacturers Life Insurance Company (“MLI”) and Manulife Financial Asia Limited (“MFAL”). Under the terms of the agreement, the Company may loan up to $750 million to MLI and/or MFAL. Interest on the loan is calculated at a fluctuating rate equal to the 3-month LIBOR plus 140 basis points per annum. The loan will be repaid and the facility terminated on or before June 30, 2021. At December 31, 2020, the Company had no outstanding borrowings under the agreement.

Effective April 30, 2020, the Company entered into a short-term loan facility with MLI. Under the terms of the agreement, the Company may loan up to $750 million to MLI at prevailing interest rates in accordance with the loan agreement. Effective June 30, 2020, the loan facility was terminated. The Company had no borrowings under the agreement.

Effective April 17, 2018, the Company entered into a committed line of credit agreement with John Hancock Funding Company LLC, (“JHFLLC”), a wholly-owned subsidiary of JHS LLC, totaling up to $400 million which will expire April 27, 2023. Under the agreement, the Company may loan funds, when requested, at prevailing interest rates as determined in accordance with the line of credit agreement. Interest on the loan is calculated at a fluctuating rate equal to the 360 day-year for the actual number of days elapsed and is payable quarterly. Effective June 13, 2019, the agreement was terminated, and the Company had no outstanding borrowings under the agreement.

75

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

Consumer Notes: The Company issued consumer notes through its SignatureNotes Program. SignatureNotes may be redeemed upon the death of the holder, subject to an annual overall program redemption limitation of 1% of the aggregate securities outstanding, or $1 million, or an individual redemption limitation of $200,000 of aggregate principal. SignatureNotes have a variety of issue dates, maturities, interest rates and call provisions. The notes payable balance as of December 31, 2020 and 2019 was $138 million and $138 million, respectively. Interest ranging from 4.8% to 6.0%. The notes are due in varying amounts to 2032.

Aggregate maturities of consumer notes are as follows: 2021-$0 million; 2022-$13 million; 2023-$33 million; 2024-$0 million; 2025-$0 million; and thereafter $92 million.

Interest expense on consumer notes, included in benefits to policyholders, was $8 million, $4 million, and $10 million in 2020, 2019 and 2018, respectively. Interest paid amounted to $8 million, $6 million, and $8 million in 2020, 2019 and 2018, respectively.

Affiliated Debt: Pursuant to a senior note receivable dated December 9, 2014, the Company had $40 million outstanding with JHS LLC as of December 31, 2016. During 2017, JHS LLC repaid $15 million of the outstanding loan bringing the outstanding principal balance to $25 million with a fair value of $25 million as of December 31, 2017. During 2018, JHS LLC repaid $15 million of the outstanding loan bringing the outstanding principal balance to $10 million with a fair value of $10 million as of December 31, 2018. The senior note was fully repaid on December 9, 2019. Interest on the loan is calculated at a fluctuating rate equal to the 3-month LIBOR rate plus 180 basis points per annum and is payable quarterly. Interest income was $0 million, $0 million, and $1 million for the years ended December 31, 2020, 2019 and 2018, respectively.

FHLB (Federal Home Loan Bank) Agreements: The Company is a member of the Federal Home Loan Bank of Indianapolis (FHLBI). The Company uses advances from the FHLBI as a part of its liquidity management program, and any funds obtained for this purpose would be accounted for as borrowed money.

76

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The following table indicates the aggregate amount of the FHLBI capital stock held related to the agreement:

	December 31, 2020
	(1) (Col 2 +3) Total		(2) General Account		(3) Separate Account
(in millions)
(a) Membership stock - Class A	$	-	$	-	$	-
(b) Membership stock - Class B		21		21		-
(c) Activity stock		2		2		-
(d) Excess stock		-		-		-
(e) Aggregate total	$	23	$	23	$	-
(f) Actual or estimated borrowing capacity as determined by the insurer	$	500
	December 31, 2019
	(1) (Col 2 +3) Total		(2) General Account		(3) Separate Account
(in millions)
(a) Membership stock - Class A	$	-	$	-	$	-
(b) Membership stock - Class B		20		20		-
(c) Activity stock		-		-		-
(d) Excess stock		-		-		-
(e) Aggregate total	$	20	$	20	$	-
(f) Actual or estimated borrowing capacity as determined by the insurer	$	451

FHLBI membership stock of $21 million and $20 million was classified as not eligible for redemption for the years ended December 31, 2020 and 2019, respectively.

The following table indicates the collateral pledged to the FHLBI at the end of the year:

	December 31, 2020
	Fair Value		Carrying Value		Aggregate Total Borrowing
(in millions)
(a) General account	$	2,575	$	2,191	$	500
(b) Separate account		-		-		-
(c) Total collateral pledged	$	2,575	$	2,191	$	500
	December 31, 2019
(in millions)	Fair Value		Carrying Value		Aggregate Total Borrowing
(a) General account	$	-	$	-	$	-
(b) Separate account		-		-		-
(c) Total collateral pledged	$	-	$	-	$	-

77

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The following table indicates the maximum collateral pledged to the FHLBI during the year:

	December 31, 2020
(in millions)	Fair Value		Carrying Value		Amount         Borrowed at    Time of   Maximum Collateral
(a) General account	$	2,701	$	2,326	$	500
(b) Separate account		-		-		-
(c) Total maximum collateral pledged	$	2,701	$	2,326	$	500
	December 31, 2019
(in millions)	Fair Value		Carrying Value		Amount         Borrowed at    Time of   Maximum Collateral
(a) General account	$	572	$	526	$	300
(b) Separate account		-		-		-
(c) Total maximum collateral pledged	$	572	$	526	$	300

78

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

The following table represents the aggregate amount of borrowing from FHLBI at the end of the year:

	December 31, 2020
	(1) (Col 2 +3) Total		(2) General Account		(3) Separate Account		(4) Funding Agreements Reserves Established
(in millions)
(a) Debt	$	500	$	500	$	-	$	-
(b) Funding agreements		-		-		-		-
(c) Other		-		-		-		-
(d) Aggregate total	$	500	$	500	$	-	$	-
	December 31, 2019
	(1) (Col 2 +3) Total		(2) General Account		(3) Separate Account		(4) Funding Agreements Reserves Established
(in millions)
(a) Debt	$	-	$	-	$	-	$	-
(b) Funding agreements		-		-		-		-
(c) Other		-		-		-		-
(d) Aggregate total	$	-	$	-	$	-	$	-

The maximum amount of aggregate borrowings from FHLBI during 2020 was $500 million. The Company is not subject to any prepayment obligations under current borrowing agreements.

18. Closed Block

The Company operates a closed block for the benefit of certain classes of individual or joint traditional participating whole life insurance policies. The JHUSA closed block was established upon the demutualization of MLI for those designated participating policies that were in-force on September 23, 1999.

Assets were allocated to the closed block in an amount that, together with anticipated revenues from policies included in the closed block, was reasonably expected to be sufficient to support such business, including provision for payment of benefits, direct asset acquisition and disposition costs, taxes, and for continuation of dividend scales, assuming experience underlying such dividend scales continues.

Assets allocated to the closed block inure solely to the benefit of policyholders included in the closed block and will not revert to the benefit of the shareholders of the Company. In addition, if the assets allocated to the closed block and the revenues from the closed block business prove to be insufficient to pay the benefits guaranteed in the closed block, the Company will be required to make payments from its general funds in an amount equal to the shortfall.

If, over time, the aggregate performance of the assets and policies of a closed block is better than was assumed in funding that closed block, dividends to policyholders for that closed block will be increased. If, over time, the aggregate performance of the assets and policies of a closed block is less favorable than was assumed in funding that closed block, dividends to policyholders for that closed block will be reduced.

79

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

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

No reallocation, transfer, borrowing, or lending of assets can be made between the closed block and other portions of the Company’s general account, any of its separate accounts, or any affiliate of the Company without prior notification to or approval of the Insurance Department.

The excess of the closed block liabilities over the closed block assets represents the expected future post-tax contribution from the closed block which may be recognized in income over the period the policies and contracts in the closed block remain in force.

The following table sets forth certain summarized financial information relating to the JHUSA closed block.

	December 31,
	2020		2019
(in millions)
Assets:
Bonds	$	1,837	$	2,145
Stocks:
Preferred stocks		-		-
Common stocks		-		-
Mortgage loans on real estate		391		429
Real estate		640		668
Cash, cash equivalents and short-term investments		12		5
Policy loans		1,654		1,780
Other invested assets		655		437
Total cash and invested assets		5,189		5,464
Investment income due and accrued		99		113
Premiums due		4		4
Net deferred tax asset		36		35
Other closed block assets		27		7
Total closed block assets	$	5,355	$	5,623
Obligations:
Policy reserves		5,040		5,346
Policyholders’ and beneficiaries’ funds		54		56
Dividends payable to policyholders		274		295
Policy benefits in process of payment		173		65
Other policy obligations		-		2
Other closed block obligations		194		192
Total closed block obligations	$	5,735	$	5,956

19. Subsequent Events

The Company evaluated the recognition and disclosure of subsequent events for its December 31, 2020 financial statements through March 31, 2021, the date the financial statements were issued. The Company did not have any subsequent events requiring disclosure.

80

A U D I T E D   F I N A N C I A L   S T A T E M E N T S

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

December 31, 2020

1 of 69

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

Separate Account A

Audited Financial Statements

December 31, 2020

Contents

Report of Independent Registered Public Accounting Firm	3
Statements of Assets and Liabilities	6
Statements of Operations and Changes in Contract Owners’ Equity	22
Notes to Financial Statements	54

2 of 69

Report of Independent Registered Public Accounting Firm

To the Board of Directors of John Hancock Life Insurance Company (U.S.A.) and Contract Owners of John Hancock Life Insurance Company (U.S.A.) Separate Account A

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of each of the subaccounts listed in the Appendix that comprise John Hancock Life Insurance Company (U.S.A.) Separate Account A (the “Separate Account”) as of December 31, 2020, and the related statements of operations and changes in contract owners’ equity for the two years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each subaccount as of December 31, 2020 and the results of its operations and changes in contract owners’ equity for each of the two years then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on each of the subaccounts’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2020 by correspondence with the fund companies or their transfer agents, as applicable. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of the Separate Account since 1987.

Boston, Massachusetts

March 31, 2021

3 of 69

Appendix

Subaccounts comprising John Hancock Life

Insurance Company (U.S.A.) Separate Account A

500 Index Fund Series NAV	Lifestyle Balanced Portfolio Series NAV
Active Bond Trust Series I	Lifestyle Conservative Portfolio Series NAV
Active Bond Trust Series NAV	Lifestyle Growth Portfolio Series I
American Asset Allocation Trust Series I	Lifestyle Growth Portfolio Series NAV
American Global Growth Trust Series I	Lifestyle Moderate Portfolio Series NAV
American Growth Trust Series I	M Capital Appreciation
American Growth-Income Trust Series I	M International Equity
American International Trust Series I	M Large Cap Growth
Blue Chip Growth Trust Series I	M Large Cap Value
Blue Chip Growth Trust Series NAV	Managed Volatility Aggressive Portfolio Series I
Capital Appreciation Trust Series I	Managed Volatility Aggressive Portfolio Series NAV
Capital Appreciation Trust Series NAV	Managed Volatility Balanced Portfolio Series I
Capital Appreciation Value Trust Series I	Managed Volatility Balanced Portfolio Series NAV
Capital Appreciation Value Trust Series NAV	Managed Volatility Conservative Portfolio Series I
Core Bond Trust Series I	Managed Volatility Conservative Portfolio Series NAV
Core Bond Trust Series NAV	Managed Volatility Growth Portfolio Series I
Disciplined Value International Trust Series I	Managed Volatility Growth Portfolio Series NAV
Disciplined Value International Trust Series NAV	Managed Volatility Moderate Portfolio Series I
Emerging Markets Value Trust Series I	Managed Volatility Moderate Portfolio Series NAV
Emerging Markets Value Trust Series NAV	Mid Cap Index Trust Series I
Equity Income Trust Series I	Mid Cap Index Trust Series NAV
Equity Income Trust Series NAV	Mid Cap Stock Trust Series I
Financial Industries Trust Series I	Mid Cap Stock Trust Series NAV
Financial Industries Trust Series NAV	Mid Value Trust Series I
Fundamental All Cap Core Trust Series I	Mid Value Trust Series NAV
Fundamental All Cap Core Trust Series NAV	Money Market Trust Series I
Fundamental Large Cap Value Trust Series I	Money-Market Trust Series NAV
Fundamental Large Cap Value Trust Series NAV	Opportunistic Fixed Income Trust Series I
Global Trust Series I	Opportunistic Fixed Income Trust Series NAV
Global Trust Series NAV	PIMCO All Asset
Health Sciences Trust Series I	Real Estate Securities Trust Series I
Health Sciences Trust Series NAV	Real Estate Securities Trust Series NAV
High Yield Trust Series I	Science & Technology Trust Series I
High Yield Trust Series NAV	Science & Technology Trust Series NAV
International Equity Index Series I	Select Bond Trust Series I
International Equity Index Series NAV	Select Bond Trust Series NAV
International Small Company Trust Series I	Short Term Government Income Trust Series I
International Small Company Trust Series NAV	Short Term Government Income Trust Series NAV
Investment Quality Bond Trust Series I	Small Cap Index Trust Series I
Investment Quality Bond Trust Series NAV	Small Cap Index Trust Series NAV
Lifestyle Aggressive Portfolio Series NAV	Small Cap Opportunities Trust Series I

4 of 69

Appendix

Subaccounts comprising John Hancock Life

Insurance Company (U.S.A.) Separate Account A

Small Cap Opportunities Trust Series NAV	Strategic Income Opportunities Trust Series I
Small Cap Stock Trust Series I	Strategic Income Opportunities Trust Series NAV
Small Cap Stock Trust Series NAV	Total Bond Market Series Trust NAV
Small Cap Value Trust Series I	Total Stock Market Index Trust Series I
Small Cap Value Trust Series NAV	Total Stock Market Index Trust Series NAV
Small Company Value Trust Series I	Ultra Short Term Bond Trust Series I
Small Company Value Trust Series NAV	Ultra Short Term Bond Trust Series NAV

5 of 69

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	500 Index Fund Series NAV		Active Bond Trust Series I		Active Bond Trust Series NAV		American Asset Allocation Trust Series I		American Global Growth Trust Series I		American Growth Trust Series I
Total Assets
Investments at fair value	$	528,653,190	$	8,319,677	$	34,836,291	$	181,554,492	$	28,350,410	$	143,898,921
Units outstanding		6,766,562		294,828		377,938		7,271,273		869,401		2,158,216
Unit value	$	78.13	$	28.22	$	92.17	$	24.97	$	32.61	$	66.67
Shares		12,274,279		804,611		3,369,080		14,808,686		1,435,464		6,173,270
Cost	$	370,910,418	$	7,780,773	$	32,660,552	$	193,462,387	$	23,216,078	$	114,758,920

See accompanying notes.

6 of 69

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	American Growth- Income Trust Series I		American International Trust Series I		Blue Chip Growth Trust Series I		Blue Chip Growth Trust Series NAV		Capital Appreciation Trust Series I		Capital Appreciation Trust Series NAV
Total Assets
Investments at fair value	$	138,358,163	$	84,564,162	$	53,437,812	$	162,497,102	$	46,775,691	$	66,872,360
Units outstanding		3,201,858		2,777,292		392,370		488,491		609,729		885,011
Unit value	$	43.21	$	30.45	$	136.19	$	332.65	$	76.72	$	75.56
Shares		8,718,221		3,949,751		1,328,968		4,035,190		6,154,696		8,730,073
Cost	$	146,067,346	$	74,837,168	$	43,425,975	$	136,484,100	$	39,875,101	$	53,749,385

See accompanying notes.

7 of 69

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	Capital Appreciation Value Trust Series I		Capital Appreciation Value Trust Series NAV		Core Bond Trust Series I		Core Bond Trust Series NAV		Disciplined Value International Trust Series I		Disciplined Value International Trust Series NAV
Total Assets
Investments at fair value	$	5,060,791	$	131,932,803	$	16,021,248	$	79,827,975	$	17,880,829	$	42,219,661
Units outstanding		150,716		3,909,527		634,724		3,926,083		625,087		2,281,402
Unit value	$	33.58	$	33.75	$	25.24	$	20.33	$	28.61	$	18.51
Shares		377,953		9,882,521		1,125,878		5,633,590		1,370,178		3,262,725
Cost	$	4,676,810	$	118,161,782	$	15,177,489	$	74,957,737	$	17,131,126	$	40,652,236

See accompanying notes.

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	Emerging Markets Value Trust Series I		Emerging Markets Value Trust Series NAV		Equity Income Trust Series I		Equity Income Trust Series NAV		Financial Industries Trust Series I		Financial Industries Trust Series NAV
Total Assets
Investments at fair value	$	4,953,603	$	65,836,941	$	38,419,773	$	112,647,838	$	2,017,889	$	11,311,519
Units outstanding		279,197		4,606,146		561,594		1,643,417		55,322		256,711
Unit value	$	17.74	$	14.29	$	68.41	$	68.54	$	36.48	$	44.06
Shares		512,265		6,815,418		2,786,060		8,222,470		157,771		887,178
Cost	$	5,047,029	$	63,357,434	$	42,075,783	$	119,980,852	$	2,107,412	$	11,618,415

See accompanying notes.

9 of 69

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	Fundamental All Cap Core Trust Series I		Fundamental All Cap Core Trust Series NAV		Fundamental Large Cap Value Trust Series I		Fundamental Large Cap Value Trust Series NAV		Global Trust Series I		Global Trust Series NAV
Total Assets
Investments at fair value	$	1,679,375	$	31,321,311	$	35,537,521	$	68,680,654	$	9,734,478	$	32,155,117
Units outstanding		21,282		666,204		776,135		2,123,884		236,785		1,441,874
Unit value	$	78.91	$	47.01	$	45.79	$	32.34	$	41.11	$	22.30
Shares		55,701		1,032,004		1,415,837		2,735,191		465,987		1,540,734
Cost	$	1,284,249	$	23,047,392	$	26,164,316	$	53,500,422	$	9,152,882	$	30,032,599

See accompanying notes.

10 of 69

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	Health Sciences Trust Series I		Health Sciences Trust Series NAV		High Yield Trust Series I		High Yield Trust Series NAV		International Equity Index Series I		International Equity Index Series NAV
Total Assets
Investments at fair value	$	13,947,973	$	71,507,304	$	7,857,130	$	37,075,865	$	16,167,574	$	116,909,671
Units outstanding		95,410		625,677		180,407		1,284,997		967,099		1,777,145
Unit value	$	146.19	$	114.29	$	43.55	$	28.85	$	16.72	$	65.79
Shares		448,921		2,257,175		1,490,916		7,157,503		826,986		5,980,034
Cost	$	11,621,556	$	59,292,467	$	7,741,917	$	36,389,783	$	14,187,046	$	101,291,103

See accompanying notes.

11 of 69

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	International Small Company Trust Series I		International Small Company Trust Series NAV		Investment Quality Bond Trust Series I		Investment Quality Bond Trust Series NAV		Lifestyle Aggressive Portfolio Series NAV		Lifestyle Balanced Portfolio Series NAV
Total Assets
Investments at fair value	$	6,206,403	$	33,124,888	$	10,547,765	$	29,697,510	$	15,981,655	$	114,084,730
Units outstanding		285,253		1,513,323		242,688		1,442,243		851,131		7,017,434
Unit value	$	21.76	$	21.89	$	43.46	$	20.59	$	18.78	$	16.26
Shares		421,344		2,247,279		866,702		2,448,270		988,964		6,964,880
Cost	$	5,768,056	$	29,458,735	$	9,917,308	$	27,992,269	$	14,776,995	$	102,394,966

See accompanying notes.

12 of 69

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	Lifestyle Conservative Portfolio Series NAV		Lifestyle Growth Portfolio Series I		Lifestyle Growth Portfolio Series NAV		Lifestyle Moderate Portfolio Series NAV		M Capital Appreciation		M International Equity
Total Assets
Investments at fair value	$	6,915,357	$	1,265,357	$	427,169,862	$	32,494,829	$	24,015,109	$	11,819,046
Units outstanding		477,296		82,488		24,463,210		2,074,696		161,042		288,520
Unit value	$	14.49	$	15.34	$	17.46	$	15.66	$	149.12	$	40.96
Shares		479,567		71,127		24,025,254		2,064,475		834,727		886,650
Cost	$	6,734,568	$	1,162,482	$	387,036,115	$	29,646,251	$	21,057,460	$	10,514,006

See accompanying notes.

13 of 69

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	M Large Cap Growth		M Large Cap Value		Managed Volatility Aggressive Portfolio Series I		Managed Volatility Aggressive Portfolio Series NAV		Managed Volatility Balanced Portfolio Series I		Managed Volatility Balanced Portfolio Series NAV
Total Assets
Investments at fair value	$	23,304,896	$	15,419,374	$	13,335,567	$	189,669,220	$	55,590,747	$	478,624,174
Units outstanding		190,412		498,853		344,760		8,164,953		1,177,961		20,346,206
Unit value	$	122.39	$	30.91	$	38.68	$	23.23	$	47.19	$	23.52
Shares		696,084		1,282,810		1,345,668		19,139,175		4,767,646		40,943,127
Cost	$	18,369,596	$	15,955,345	$	13,935,137	$	193,074,349	$	59,316,218	$	513,002,332

See accompanying notes.

14 of 69

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	Managed Volatility Conservative Portfolio Series I		Managed Volatility Conservative Portfolio Series NAV		Managed Volatility Growth Portfolio Series I		Managed Volatility Growth Portfolio Series NAV		Managed Volatility Moderate Portfolio Series I		Managed Volatility Moderate Portfolio Series NAV
Total Assets
Investments at fair value	$	2,520,825	$	36,517,862	$	64,692,141	$	637,830,613	$	13,328,044	$	106,413,603
Units outstanding		55,544		1,715,593		1,493,978		27,393,085		274,627		4,545,688
Unit value	$	45.38	$	21.29	$	43.30	$	23.28	$	48.53	$	23.41
Shares		216,938		3,134,580		5,377,568		52,931,756		1,165,039		9,293,764
Cost	$	2,484,815	$	36,311,120	$	68,169,915	$	690,737,913	$	14,529,467	$	113,209,278

See accompanying notes.

15 of 69

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	Mid Cap Index Trust Series I		Mid Cap Index Trust Series NAV		Mid Cap Stock Trust Series I		Mid Cap Stock Trust Series NAV		Mid Value Trust Series I		Mid Value Trust Series NAV
Total Assets
Investments at fair value	$	27,371,314	$	89,596,804	$	34,440,630	$	75,352,165	$	11,787,257	$	34,981,815
Units outstanding		381,298		1,897,688		348,666		349,465		290,993		560,299
Unit value	$	71.78	$	47.21	$	98.78	$	215.62	$	40.51	$	62.43
Shares		1,282,629		4,198,538		1,314,026		2,820,066		1,157,884		3,460,120
Cost	$	27,280,009	$	85,659,741	$	23,387,647	$	54,919,246	$	12,251,509	$	35,000,531

See accompanying notes.

16 of 69

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	Money Market Trust Series I		Money-Market Trust Series NAV		Opportunistic Fixed Income Trust Series I		Opportunistic Fixed Income Trust Series NAV		PIMCO All Asset		Real Estate Securities Trust Series I
Total Assets
Investments at fair value	$	28,434,755	$	137,081,176	$	4,828,987	$	34,818,763	$	32,486,949	$	21,742,279
Units outstanding		1,104,050		13,092,507		122,462		877,425		1,539,270		95,225
Unit value	$	25.75	$	10.47	$	39.43	$	39.68	$	21.11	$	228.33
Shares		28,434,755		137,081,176		358,766		2,596,477		2,877,498		1,146,140
Cost	$	28,434,755	$	137,081,176	$	4,538,608	$	32,681,361	$	30,568,767	$	19,377,490

See accompanying notes.

17 of 69

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	Real Estate Securities Trust Series NAV		Science & Technology Trust Series I		Science & Technology Trust Series NAV		Select Bond Trust Series I		Select Bond Trust Series NAV		Short Term Government Income Trust Series I
Total Assets
Investments at fair value	$	57,956,165	$	38,807,295	$	73,604,551	$	3,322,140	$	28,951,175	$	5,960,294
Units outstanding		302,488		324,700		774,755		234,988		2,039,066		510,361
Unit value	$	191.60	$	119.52	$	95.00	$	14.14	$	14.20	$	11.68
Shares		3,076,230		926,852		1,729,837		227,700		1,985,677		484,971
Cost	$	57,640,095	$	25,978,181	$	52,937,037	$	3,185,669	$	27,174,968	$	6,025,443

See accompanying notes.

18 of 69

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	Short Term Government Income Trust Series NAV		Small Cap Index Trust Series I		Small Cap Index Trust Series NAV		Small Cap Opportunities Trust Series I		Small Cap Opportunities Trust Series NAV		Small Cap Stock Trust Series I
Total Assets
Investments at fair value	$	30,066,800	$	10,516,685	$	56,673,880	$	29,188,287	$	22,742,486	$	6,440,589
Units outstanding		2,560,255		185,344		1,248,367		494,576		780,099		99,662
Unit value	$	11.74	$	56.74	$	45.40	$	59.02	$	29.15	$	64.62
Shares		2,446,444		644,800		3,470,538		1,112,358		873,367		540,318
Cost	$	29,816,364	$	9,552,278	$	49,681,805	$	31,102,189	$	23,128,576	$	5,146,404

See accompanying notes.

19 of 69

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	Small Cap Stock Trust Series NAV		Small Cap Value Trust Series I		Small Cap Value Trust Series NAV		Small Company Value Trust Series I		Small Company Value Trust Series NAV		Strategic Income Opportunities Trust Series I
Total Assets
Investments at fair value	$	44,619,241	$	2,301,881	$	42,277,775	$	12,909,937	$	39,910,398	$	7,113,365
Units outstanding		580,371		72,207		470,069		226,628		1,049,103		214,370
Unit value	$	76.88	$	31.88	$	89.94	$	56.97	$	38.04	$	33.18
Shares		3,666,330		156,591		2,889,800		1,223,691		3,808,244		492,615
Cost	$	34,683,504	$	2,784,111	$	48,184,610	$	15,499,082	$	44,928,242	$	6,638,549

See accompanying notes.

20 of 69

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

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2020

	Strategic Income Opportunities Trust Series NAV		Total Bond Market Series Trust NAV		Total Stock Market Index Trust Series I		Total Stock Market Index Trust Series NAV		Ultra Short Term Bond Trust Series I		Ultra Short Term Bond Trust Series NAV
Total Assets
Investments at fair value	$	39,532,854	$	42,435,205	$	18,222,946	$	96,927,016	$	1,619,258	$	9,524,563
Units outstanding		1,601,765		1,458,197		380,721		606,357		150,152		877,969
Unit value	$	24.68	$	29.10	$	47.86	$	159.85	$	10.78	$	10.85
Shares		2,747,245		3,896,713		693,943		3,692,458		141,297		830,389
Cost	$	36,996,737	$	40,710,660	$	15,023,079	$	79,495,688	$	1,622,213	$	9,577,425

See accompanying notes.

21 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	500 Index Fund Series NAV						Active Bond Trust Series I						Active Bond Trust Series NAV
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	8,565,426		$	7,062,349		$	259,182		$	250,369		$	990,808		$	871,575
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		8,565,426			7,062,349			259,182			250,369			990,808			871,575
Realized gains (losses) on investments:
Capital gain distributions received		8,814,248			6,001,492			-			-			-			-
Net realized gain (loss)		27,072,745			18,493,609			105,581			(42,347	)		164,707			7,962
Realized gains (losses)		35,886,993			24,495,101			105,581			(42,347	)		164,707			7,962
Unrealized appreciation (depreciation) during the period		39,214,235			73,842,738			370,142			550,362			1,496,595			1,734,907
Net increase (decrease) in net assets from operations		83,666,654			105,400,188			734,905			758,384			2,652,110			2,614,444
Changes from principal transactions:
Purchase payments		25,613,479			22,213,198			254,484			251,468			2,410,284			2,430,077
Transfers between sub-accounts and the company		2,509,204			19,200,919			328,675			1,772,308			897,915			3,067,374
Transfers on general account policy loans		(1,111,890	)		(2,884,592	)		(372	)		(42,855	)		(49,500	)		(225,560	)
Withdrawals		(13,621,398	)		(12,726,227	)		(1,528,444	)		(233,739	)		(408,200	)		(873,569	)
Annual contract fee		(16,788,947	)		(15,819,263	)		(503,055	)		(514,840	)		(1,677,259	)		(1,503,855	)
Net increase (decrease) in net assets from principal transactions		(3,399,552	)		9,984,035			(1,448,712	)		1,232,342			1,173,240			2,894,467
Total increase (decrease) in net assets		80,267,102			115,384,223			(713,807	)		1,990,726			3,825,350			5,508,911
Net assets at beginning of period		448,386,088			333,001,865			9,033,484			7,042,758			31,010,941			25,502,030
Net assets at end of period	$	528,653,190		$	448,386,088		$	8,319,677		$	9,033,484		$	34,836,291		$	31,010,941
	2020			2019			2020			2019			2020			2019
Units, beginning of period		6,832,554			6,703,776			348,266			296,649			365,810			328,792
Units issued		898,771			911,825			58,417			93,123			61,461			114,919
Units redeemed		(964,763	)		(783,047	)		(111,855	)		(41,506	)		(49,333	)		(77,901	)
Units, end of period		6,766,562			6,832,554			294,828			348,266			377,938			365,810

See accompanying notes.

22 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	American Asset Allocation Trust Series I						American Global Growth Trust Series I						American Growth Trust Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	2,276,018		$	2,085,158		$	14,985		$	111,275		$	96,577		$	720,903
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		2,276,018			2,085,158			14,985			111,275			96,577			720,903
Realized gains (losses) on investments:
Capital gain distributions received		19,704,853			16,403,195			1,848,601			1,700,495			15,436,230			15,581,279
Net realized gain (loss)		(1,784,887	)		(1,335,822	)		278,552			80,281			(1,074,500	)		(1,573,440	)
Realized gains (losses)		17,919,966			15,067,373			2,127,153			1,780,776			14,361,730			14,007,839
Unrealized appreciation (depreciation) during the period		(677,377	)		10,227,970			3,822,608			2,904,995			34,975,952			8,456,203
Net increase (decrease) in net assets from operations		19,518,607			27,380,501			5,964,746			4,797,046			49,434,259			23,184,945
Changes from principal transactions:
Purchase payments		10,646,652			13,715,914			1,732,858			1,572,297			4,179,090			4,112,404
Transfers between sub-accounts and the company		3,919,788			1,217,490			2,781,333			1,194,895			2,757,024			(2,092,595	)
Transfers on general account policy loans		(1,477,758	)		(256,830	)		16,461			(65,849	)		(652,729	)		(374,403	)
Withdrawals		(2,477,640	)		(2,695,228	)		(573,613	)		(285,124	)		(2,857,482	)		(4,090,826	)
Annual contract fee		(8,498,758	)		(7,991,447	)		(915,825	)		(799,016	)		(4,519,432	)		(3,646,822	)
Net increase (decrease) in net assets from principal transactions		2,112,284			3,989,899			3,041,214			1,617,203			(1,093,529	)		(6,092,242	)
Total increase (decrease) in net assets		21,630,891			31,370,400			9,005,960			6,414,249			48,340,730			17,092,703
Net assets at beginning of period		159,923,601			128,553,201			19,344,450			12,930,201			95,558,191			78,465,488
Net assets at end of period	$	181,554,492		$	159,923,601		$	28,350,410		$	19,344,450		$	143,898,921		$	95,558,191
	2020			2019			2020			2019			2020			2019
Units, beginning of period		7,174,763			6,965,681			770,933			694,178			2,167,478			2,307,102
Units issued		678,879			864,165			211,020			233,723			314,018			200,776
Units redeemed		(582,369	)		(655,083	)		(112,552	)		(156,968	)		(323,280	)		(340,400	)
Units, end of period		7,271,273			7,174,763			869,401			770,933			2,158,216			2,167,478

See accompanying notes.

23 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	American Growth-Income Trust Series I						American International Trust Series I						Blue Chip Growth Trust Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	1,699,731		$	1,810,718		$	271,327		$	585,866		$	-		$	-
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		1,699,731			1,810,718			271,327			585,866			-			-
Realized gains (losses) on investments:
Capital gain distributions received		16,859,787			13,768,520			3,351,867			4,277,575			6,780,247			6,242,500
Net realized gain (loss)		(1,830,386	)		22,177			100,247			1,111,109			680,090			301,036
Realized gains (losses)		15,029,401			13,790,697			3,452,114			5,388,684			7,460,337			6,543,536
Unrealized appreciation (depreciation) during the period		(643,682	)		10,151,756			7,450,047			5,833,658			6,739,924			4,395,528
Net increase (decrease) in net assets from operations		16,085,450			25,753,171			11,173,488			11,808,208			14,200,261			10,939,064
Changes from principal transactions:
Purchase payments		5,518,241			5,288,009			3,449,463			3,228,160			953,483			1,090,933
Transfers between sub-accounts and the company		(1,407,343	)		4,566,998			9,838,447			2,463,460			429,650			(1,586,218	)
Transfers on general account policy loans		(205,608	)		(488,091	)		(649,089	)		(318,703	)		(76,907	)		(1,295	)
Withdrawals		(2,272,720	)		(4,522,170	)		(1,958,065	)		(2,029,374	)		(2,972,443	)		(2,550,405	)
Annual contract fee		(5,508,190	)		(5,181,288	)		(2,210,693	)		(2,021,505	)		(2,586,589	)		(2,529,038	)
Net increase (decrease) in net assets from principal transactions		(3,875,620	)		(336,542	)		8,470,063			1,322,038			(4,252,806	)		(5,576,023	)
Total increase (decrease) in net assets		12,209,830			25,416,629			19,643,551			13,130,246			9,947,455			5,363,041
Net assets at beginning of period		126,148,333			100,731,704			64,920,611			51,790,365			43,490,357			38,127,316
Net assets at end of period	$	138,358,163		$	126,148,333		$	84,564,162		$	64,920,611		$	53,437,812		$	43,490,357
	2020			2019			2020			2019			2020			2019
Units, beginning of period		3,279,286			3,246,275			2,401,281			2,328,343			428,862			487,988
Units issued		238,941			387,082			733,997			430,991			26,914			19,073
Units redeemed		(316,369	)		(354,071	)		(357,986	)		(358,053	)		(63,406	)		(78,199	)
Units, end of period		3,201,858			3,279,286			2,777,292			2,401,281			392,370			428,862

See accompanying notes.

24 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Blue Chip Growth Trust Series NAV						Capital Appreciation Trust Series I						Capital Appreciation Trust Series NAV
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	-		$	8,914		$	-		$	10,559		$	-		$	18,464
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		-			8,914			-			10,559			-			18,464
Realized gains (losses) on investments:
Capital gain distributions received		19,963,812			16,165,066			4,146,304			19,535,691			5,363,271			28,503,331
Net realized gain (loss)		2,591,323			286,016			(5,754,843	)		(3,315,236	)		(12,343,987	)		(3,214,705	)
Realized gains (losses)		22,555,135			16,451,082			(1,608,539	)		16,220,455			(6,980,716	)		25,288,626
Unrealized appreciation (depreciation) during the period		19,014,805			11,193,553			18,835,506			(7,902,383	)		31,616,659			(13,826,778	)
Net increase (decrease) in net assets from operations		41,569,940			27,653,549			17,226,967			8,328,631			24,635,943			11,480,312
Changes from principal transactions:
Purchase payments		8,090,562			7,587,416			692,090			734,558			2,178,643			2,647,355
Transfers between sub-accounts and the company		1,879,223			3,846,928			1,450,144			(1,268,405	)		(4,460,994	)		5,171,702
Transfers on general account policy loans		(283,593	)		(925,580	)		(931,033	)		(47,397	)		(37,391	)		(502,536	)
Withdrawals		(3,666,698	)		(4,370,626	)		(1,107,632	)		(1,594,347	)		(2,335,900	)		(1,215,282	)
Annual contract fee		(5,457,362	)		(4,518,977	)		(1,781,370	)		(1,616,136	)		(1,822,561	)		(1,615,420	)
Net increase (decrease) in net assets from principal transactions		562,132			1,619,161			(1,677,801	)		(3,791,727	)		(6,478,203	)		4,485,819
Total increase (decrease) in net assets		42,132,072			29,272,710			15,549,166			4,536,904			18,157,740			15,966,131
Net assets at beginning of period		120,365,030			91,092,320			31,226,525			26,689,621			48,714,620			32,748,489
Net assets at end of period	$	162,497,102		$	120,365,030		$	46,775,691		$	31,226,525		$	66,872,360		$	48,714,620
	2020			2019			2020			2019			2020			2019
Units, beginning of period		486,314			477,819			635,147			721,435			1,007,634			900,078
Units issued		67,189			67,714			64,968			5,698			328,369			272,042
Units redeemed		(65,012	)		(59,219	)		(90,386	)		(91,986	)		(450,992	)		(164,486	)
Units, end of period		488,491			486,314			609,729			635,147			885,011			1,007,634

See accompanying notes.

25 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Capital Appreciation Value Trust Series I						Capital Appreciation Value Trust Series NAV						Core Bond Trust Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	46,189		$	85,155		$	1,311,465		$	1,398,924		$	363,270		$	367,848
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		46,189			85,155			1,311,465			1,398,924			363,270			367,848
Realized gains (losses) on investments:
Capital gain distributions received		357,987			378,229			9,745,465			5,887,893			-			-
Net realized gain (loss)		26,133			17,841			608,301			38,577			79,773			(32,717	)
Realized gains (losses)		384,120			396,070			10,353,766			5,926,470			79,773			(32,717	)
Unrealized appreciation (depreciation) during the period		84,890			453,026			7,563,072			11,604,997			815,542			896,490
Net increase (decrease) in net assets from operations		515,199			934,251			19,228,303			18,930,391			1,258,585			1,231,621
Changes from principal transactions:
Purchase payments		163,083			276,161			7,183,809			6,866,333			433,517			444,837
Transfers between sub-accounts and the company		(1,372,717	)		3,090,323			6,682,225			14,194,295			423,838			(182,164	)
Transfers on general account policy loans		(320	)		(3,477	)		595,754			(880,985	)		(12,839	)		(189,408	)
Withdrawals		(258,299	)		(145,148	)		(1,766,658	)		(1,413,897	)		(430,652	)		(937,174	)
Annual contract fee		(267,946	)		(361,187	)		(4,432,784	)		(3,882,927	)		(731,443	)		(708,616	)
Net increase (decrease) in net assets from principal transactions		(1,736,199	)		2,856,672			8,262,346			14,882,819			(317,579	)		(1,572,525	)
Total increase (decrease) in net assets		(1,221,000	)		3,790,923			27,490,649			33,813,210			941,006			(340,904	)
Net assets at beginning of period		6,281,791			2,490,868			104,442,154			70,628,944			15,080,242			15,421,146
Net assets at end of period	$	5,060,791		$	6,281,791		$	131,932,803		$	104,442,154		$	16,021,248		$	15,080,242
	2020			2019			2020			2019			2020			2019
Units, beginning of period		219,640			108,256			3,633,945			3,057,942			648,955			718,876
Units issued		43,598			132,367			750,991			834,716			104,339			33,183
Units redeemed		(112,522	)		(20,983	)		(475,409	)		(258,713	)		(118,570	)		(103,104	)
Units, end of period		150,716			219,640			3,909,527			3,633,945			634,724			648,955

See accompanying notes.

26 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Core Bond Trust Series NAV						Disciplined Value International Trust Series I						Disciplined Value International Trust Series NAV
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	1,843,999		$	1,697,565		$	332,008		$	530,192		$	807,130		$	1,128,169
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		1,843,999			1,697,565			332,008			530,192			807,130			1,128,169
Realized gains (losses) on investments:
Capital gain distributions received		-			-			-			-			-			-
Net realized gain (loss)		470,830			(156,107	)		(71,840	)		(227,665	)		(660,441	)		(401,821	)
Realized gains (losses)		470,830			(156,107	)		(71,840	)		(227,665	)		(660,441	)		(401,821	)
Unrealized appreciation (depreciation) during the period		3,853,631			3,663,533			178,605			1,968,128			1,314,106			3,902,175
Net increase (decrease) in net assets from operations		6,168,460			5,204,991			438,773			2,270,655			1,460,795			4,628,523
Changes from principal transactions:
Purchase payments		4,682,301			5,189,014			557,180			750,607			2,477,707			2,873,351
Transfers between sub-accounts and the company		3,766,439			4,563,072			(345,206	)		(717,307	)		779,930			(1,878,077	)
Transfers on general account policy loans		156,330			(600,306	)		94,451			(74,388	)		84,327			(206,291	)
Withdrawals		(1,635,391	)		(2,240,026	)		(1,050,024	)		(1,439,588	)		(1,032,615	)		(1,698,959	)
Annual contract fee		(3,446,804	)		(3,140,533	)		(842,287	)		(1,162,124	)		(1,619,752	)		(1,644,418	)
Net increase (decrease) in net assets from principal transactions		3,522,875			3,771,221			(1,585,886	)		(2,642,800	)		689,597			(2,554,394	)
Total increase (decrease) in net assets		9,691,335			8,976,212			(1,147,113	)		(372,145	)		2,150,392			2,074,129
Net assets at beginning of period		70,136,640			61,160,428			19,027,942			19,400,087			40,069,269			37,995,140
Net assets at end of period	$	79,827,975		$	70,136,640		$	17,880,829		$	19,027,942		$	42,219,661		$	40,069,269
	2020			2019			2020			2019			2020			2019
Units, beginning of period		3,752,837			3,545,325			686,950			786,720			2,236,072			2,383,362
Units issued		679,201			782,403			26,214			26,165			385,460			301,266
Units redeemed		(505,955	)		(574,891	)		(88,077	)		(125,935	)		(340,130	)		(448,556	)
Units, end of period		3,926,083			3,752,837			625,087			686,950			2,281,402			2,236,072

See accompanying notes.

27 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Emerging Markets Value Trust Series I						Emerging Markets Value Trust Series NAV						Equity Income Trust Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	103,394		$	148,789		$	1,354,823		$	2,021,936		$	1,022,335		$	806,593
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		103,394			148,789			1,354,823			2,021,936			1,022,335			806,593
Realized gains (losses) on investments:
Capital gain distributions received		(2	)		-			-			-			2,643,815			3,297,825
Net realized gain (loss)		(90,722	)		184,970			(1,529,824	)		336,057			(1,368,171	)		77,996
Realized gains (losses)		(90,724	)		184,970			(1,529,824	)		336,057			1,275,644			3,375,821
Unrealized appreciation (depreciation) during the period		178,471			185,809			2,311,399			4,090,043			(2,198,408	)		4,574,153
Net increase (decrease) in net assets from operations		191,141			519,568			2,136,398			6,448,036			99,571			8,756,567
Changes from principal transactions:
Purchase payments		131,775			157,398			4,322,130			4,656,477			902,105			1,164,242
Transfers between sub-accounts and the company		63,727			(511,544	)		(2,450,540	)		(408,088	)		(2,295,081	)		4,583,205
Transfers on general account policy loans		4,291			(17	)		34,213			(376,124	)		83,790			(198,246	)
Withdrawals		(164,098	)		(120,230	)		(1,845,999	)		(1,430,233	)		(2,273,875	)		(2,093,283	)
Annual contract fee		(176,071	)		(212,766	)		(1,926,367	)		(2,205,944	)		(1,782,408	)		(2,171,993	)
Net increase (decrease) in net assets from principal transactions		(140,376	)		(687,159	)		(1,866,563	)		236,088			(5,365,469	)		1,283,925
Total increase (decrease) in net assets		50,765			(167,591	)		269,835			6,684,124			(5,265,898	)		10,040,492
Net assets at beginning of period		4,902,838			5,070,429			65,567,106			58,882,982			43,685,671			33,645,179
Net assets at end of period	$	4,953,603		$	4,902,838		$	65,836,941		$	65,567,106		$	38,419,773		$	43,685,671
	2020			2019			2020			2019			2020			2019
Units, beginning of period		286,166			328,312			4,758,069			4,738,415			645,048			627,663
Units issued		26,870			33,407			797,084			681,749			31,920			111,968
Units redeemed		(33,839	)		(75,553	)		(949,007	)		(662,095	)		(115,374	)		(94,583	)
Units, end of period		279,197			286,166			4,606,146			4,758,069			561,594			645,048

See accompanying notes.

28 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Equity Income Trust Series NAV						Financial Industries Trust Series I						Financial Industries Trust Series NAV
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	3,023,006		$	1,934,256		$	24,379		$	117,181		$	140,324		$	460,699
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		3,023,006			1,934,256			24,379			117,181			140,324			460,699
Realized gains (losses) on investments:
Capital gain distributions received		7,692,955			7,229,804			172,469			158,020			958,491			600,578
Net realized gain (loss)		(4,773,962	)		(1,594,314	)		(58,553	)		8,008			(186,684	)		211,197
Realized gains (losses)		2,918,993			5,635,490			113,916			166,028			771,807			811,775
Unrealized appreciation (depreciation) during the period		(3,919,049	)		11,572,665			(196,557	)		446,486			(744,432	)		1,558,928
Net increase (decrease) in net assets from operations		2,022,950			19,142,411			(58,262	)		729,695			167,699			2,831,402
Changes from principal transactions:
Purchase payments		6,169,869			5,140,646			43,175			45,210			793,639			757,169
Transfers between sub-accounts and the company		163,765			25,519,252			(609,219	)		(104,567	)		(787,913	)		(211,751	)
Transfers on general account policy loans		(299,560	)		(290,761	)		(24,849	)		(2,895	)		253,139			(514,042	)
Withdrawals		(2,258,013	)		(3,586,567	)		(86,902	)		(102,673	)		(320,096	)		(257,113	)
Annual contract fee		(3,582,766	)		(2,915,407	)		(80,799	)		(103,170	)		(373,986	)		(422,910	)
Net increase (decrease) in net assets from principal transactions		193,295			23,867,163			(758,594	)		(268,095	)		(435,217	)		(648,647	)
Total increase (decrease) in net assets		2,216,245			43,009,574			(816,856	)		461,600			(267,518	)		2,182,755
Net assets at beginning of period		110,431,593			67,422,019			2,834,745			2,373,145			11,579,037			9,396,282
Net assets at end of period	$	112,647,838		$	110,431,593		$	2,017,889		$	2,834,745		$	11,311,519		$	11,579,037
	2020			2019			2020			2019			2020			2019
Units, beginning of period		1,627,370			1,256,507			79,398			87,596			268,845			287,342
Units issued		290,296			566,838			3,122			1,843			46,541			42,370
Units redeemed		(274,249	)		(195,975	)		(27,198	)		(10,041	)		(58,675	)		(60,867	)
Units, end of period		1,643,417			1,627,370			55,322			79,398			256,711			268,845

See accompanying notes.

29 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Fundamental All Cap Core Trust Series I						Fundamental All Cap Core Trust Series NAV						Fundamental Large Cap Value Trust Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	5,311		$	5,028		$	108,031		$	111,937		$	341,618		$	390,536
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		5,311			5,028			108,031			111,937			341,618			390,536
Realized gains (losses) on investments:
Capital gain distributions received		42,654			86,650			774,043			1,751,214			618,441			517,385
Net realized gain (loss)		21,613			8,519			367,886			420,238			1,260,749			517,034
Realized gains (losses)		64,267			95,169			1,141,929			2,171,452			1,879,190			1,034,419
Unrealized appreciation (depreciation) during the period		309,544			256,757			5,458,558			4,435,876			1,413,780			8,341,980
Net increase (decrease) in net assets from operations		379,122			356,954			6,708,518			6,719,265			3,634,588			9,766,935
Changes from principal transactions:
Purchase payments		40,874			27,630			1,206,889			1,237,222			962,067			1,082,646
Transfers between sub-accounts and the company		53,913			(74,767	)		561,549			(469,010	)		(2,970,951	)		1,598,569
Transfers on general account policy loans		99,030			(34,417	)		(148,929	)		(39,596	)		(70,559	)		117,150
Withdrawals		(41,732	)		270			(493,156	)		(805,629	)		(1,395,537	)		(1,190,555	)
Annual contract fee		(81,085	)		(69,674	)		(1,027,946	)		(941,349	)		(1,796,951	)		(1,863,089	)
Net increase (decrease) in net assets from principal transactions		71,000			(150,958	)		98,407			(1,018,362	)		(5,271,931	)		(255,279	)
Total increase (decrease) in net assets		450,122			205,996			6,806,925			5,700,903			(1,637,343	)		9,511,656
Net assets at beginning of period		1,229,253			1,023,257			24,514,386			18,813,483			37,174,864			27,663,208
Net assets at end of period	$	1,679,375		$	1,229,253		$	31,321,311		$	24,514,386		$	35,537,521		$	37,174,864
	2020			2019			2020			2019			2020			2019
Units, beginning of period		19,764			22,449			662,045			693,925			909,007			918,948
Units issued		4,156			732			71,707			61,699			15,179			77,840
Units redeemed		(2,638	)		(3,417	)		(67,548	)		(93,579	)		(148,051	)		(87,781	)
Units, end of period		21,282			19,764			666,204			662,045			776,135			909,007

See accompanying notes.

30 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Fundamental Large Cap Value Trust Series NAV						Global Trust Series I						Global Trust Series NAV
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	665,854		$	659,909		$	115,019		$	211,411		$	391,957		$	652,073
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		665,854			659,909			115,019			211,411			391,957			652,073
Realized gains (losses) on investments:
Capital gain distributions received		1,155,228			869,902			80,188			360,824			263,585			1,057,376
Net realized gain (loss)		1,431,790			1,059,206			(108,948	)		(48,872	)		(310,017	)		(109,444	)
Realized gains (losses)		2,587,018			1,929,108			(28,760	)		311,952			(46,432	)		947,932
Unrealized appreciation (depreciation) during the period		4,287,657			13,228,235			430,506			926,559			1,615,997			2,690,245
Net increase (decrease) in net assets from operations		7,540,529			15,817,252			516,765			1,449,922			1,961,522			4,290,250
Changes from principal transactions:
Purchase payments		3,467,343			3,646,239			324,214			384,427			1,895,379			2,192,983
Transfers between sub-accounts and the company		1,122,451			1,110,520			(465,686	)		(103,904	)		(690,440	)		332,375
Transfers on general account policy loans		75,923			(686,378	)		(15,310	)		61,238			25,826			(214,752	)
Withdrawals		(1,177,948	)		(1,554,671	)		(207,500	)		(493,293	)		(991,564	)		(1,090,314	)
Annual contract fee		(2,120,722	)		(1,990,520	)		(509,995	)		(630,092	)		(1,032,397	)		(1,076,448	)
Net increase (decrease) in net assets from principal transactions		1,367,047			525,190			(874,277	)		(781,624	)		(793,196	)		143,844
Total increase (decrease) in net assets		8,907,576			16,342,442			(357,512	)		668,298			1,168,326			4,434,094
Net assets at beginning of period		59,773,078			43,430,636			10,091,990			9,423,692			30,986,791			26,552,697
Net assets at end of period	$	68,680,654		$	59,773,078		$	9,734,478		$	10,091,990		$	32,155,117		$	30,986,791
	2020			2019			2020			2019			2020			2019
Units, beginning of period		2,070,413			2,045,478			261,680			283,556			1,482,694			1,474,569
Units issued		322,216			263,080			12,018			8,913			141,345			156,343
Units redeemed		(268,745	)		(238,145	)		(36,913	)		(30,789	)		(182,165	)		(148,218	)
Units, end of period		2,123,884			2,070,413			236,785			261,680			1,441,874			1,482,694

See accompanying notes.

31 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Health Sciences Trust Series I						Health Sciences Trust Series NAV						High Yield Trust Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	-		$	-		$	-		$	-		$	487,731		$	459,094
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		-			-			-			-			487,731			459,094
Realized gains (losses) on investments:
Capital gain distributions received		1,349,332			864,511			6,393,644			3,763,884			-			-
Net realized gain (loss)		875,795			(566,802	)		480,852			(1,805,092	)		(98,491	)		(1,040,659	)
Realized gains (losses)		2,225,127			297,709			6,874,496			1,958,792			(98,491	)		(1,040,659	)
Unrealized appreciation (depreciation) during the period		1,170,071			2,722,705			8,110,050			10,550,484			16,746			1,847,706
Net increase (decrease) in net assets from operations		3,395,198			3,020,414			14,984,546			12,509,276			405,986			1,266,141
Changes from principal transactions:
Purchase payments		117,073			161,001			3,716,507			3,638,258			206,650			305,941
Transfers between sub-accounts and the company		(1,476,313	)		(1,334,097	)		2,041,492			(1,792,800	)		(111,461	)		46,577
Transfers on general account policy loans		38,026			(123,075	)		4,794			(384,571	)		(206,331	)		(59,697	)
Withdrawals		(173,440	)		(527,304	)		(1,929,130	)		(1,500,006	)		(333,264	)		(3,650,247	)
Annual contract fee		(411,759	)		(400,342	)		(2,190,760	)		(1,976,897	)		(510,483	)		(610,840	)
Net increase (decrease) in net assets from principal transactions		(1,906,413	)		(2,223,817	)		1,642,903			(2,016,016	)		(954,889	)		(3,968,266	)
Total increase (decrease) in net assets		1,488,785			796,597			16,627,449			10,493,260			(548,903	)		(2,702,125	)
Net assets at beginning of period		12,459,188			11,662,591			54,879,855			44,386,595			8,406,033			11,108,158
Net assets at end of period	$	13,947,973		$	12,459,188		$	71,507,304		$	54,879,855		$	7,857,130		$	8,406,033
	2020			2019			2020			2019			2020			2019
Units, beginning of period		108,381			130,547			611,103			635,945			204,242			312,208
Units issued		24,354			4,474			100,300			73,950			14,139			27,502
Units redeemed		(37,325	)		(26,640	)		(85,726	)		(98,792	)		(37,974	)		(135,468	)
Units, end of period		95,410			108,381			625,677			611,103			180,407			204,242

See accompanying notes.

32 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	High Yield Trust Series NAV						International Equity Index Series I						International Equity Index Series NAV
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	2,171,634		$	2,017,011		$	347,359		$	308,540		$	2,550,804		$	2,254,949
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		2,171,634			2,017,011			347,359			308,540			2,550,804			2,254,949
Realized gains (losses) on investments:
Capital gain distributions received		-			-			136,573			-			984,096			-
Net realized gain (loss)		(780,287	)		(248,593	)		106,274			266,724			724,972			1,356,896
Realized gains (losses)		(780,287	)		(248,593	)		242,847			266,724			1,709,068			1,356,896
Unrealized appreciation (depreciation) during the period		914,817			3,299,227			782,345			1,797,497			7,213,588			12,880,428
Net increase (decrease) in net assets from operations		2,306,164			5,067,645			1,372,551			2,372,761			11,473,460			16,492,273
Changes from principal transactions:
Purchase payments		2,197,594			2,019,681			448,964			396,814			6,801,767			5,883,355
Transfers between sub-accounts and the company		(3,145,615	)		2,940,323			190,902			2,239,796			(1,734,571	)		15,176,363
Transfers on general account policy loans		(219,740	)		(32,082	)		211			(9,633	)		186,582			(702,132	)
Withdrawals		(725,584	)		(901,551	)		(172,127	)		(613,992	)		(2,586,651	)		(2,183,341	)
Annual contract fee		(1,524,914	)		(1,502,928	)		(683,656	)		(646,065	)		(3,311,309	)		(2,663,525	)
Net increase (decrease) in net assets from principal transactions		(3,418,259	)		2,523,443			(215,706	)		1,366,920			(644,182	)		15,510,720
Total increase (decrease) in net assets		(1,112,095	)		7,591,088			1,156,845			3,739,681			10,829,278			32,002,993
Net assets at beginning of period		38,187,960			30,596,872			15,010,729			11,271,048			106,080,393			74,077,400
Net assets at end of period	$	37,075,865		$	38,187,960		$	16,167,574		$	15,010,729		$	116,909,671		$	106,080,393
	2020			2019			2020			2019			2020			2019
Units, beginning of period		1,399,885			1,300,918			993,463			905,382			1,786,011			1,514,607
Units issued		518,210			403,828			104,492			225,783			296,298			507,814
Units redeemed		(633,098	)		(304,861	)		(130,856	)		(137,702	)		(305,164	)		(236,410	)
Units, end of period		1,284,997			1,399,885			967,099			993,463			1,777,145			1,786,011

See accompanying notes.

33 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	International Small Company Trust Series I						International Small Company Trust Series NAV						Investment Quality Bond Trust Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	110,051		$	125,698		$	599,875		$	705,154		$	228,329		$	256,774
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		110,051			125,698			599,875			705,154			228,329			256,774
Realized gains (losses) on investments:
Capital gain distributions received		181,615			239,034			967,868			1,262,018			5,397			-
Net realized gain (loss)		20,755			71,011			(723,401	)		448,525			(12,759	)		(72,961	)
Realized gains (losses)		202,370			310,045			244,467			1,710,543			(7,362	)		(72,961	)
Unrealized appreciation (depreciation) during the period		155,112			718,908			1,419,188			3,644,043			648,352			688,710
Net increase (decrease) in net assets from operations		467,533			1,154,651			2,263,530			6,059,740			869,319			872,523
Changes from principal transactions:
Purchase payments		172,818			178,005			2,461,472			2,566,876			387,590			431,240
Transfers between sub-accounts and the company		(124,077	)		(770	)		(2,089,884	)		853,672			934,794			1,072,262
Transfers on general account policy loans		78,126			2,173			231,636			(501,342	)		(34,476	)		(108,490	)
Withdrawals		(199,417	)		(312,543	)		(1,073,206	)		(1,210,661	)		(844,282	)		(805,429	)
Annual contract fee		(248,092	)		(331,746	)		(905,831	)		(998,618	)		(813,087	)		(777,562	)
Net increase (decrease) in net assets from principal transactions		(320,642	)		(464,881	)		(1,375,813	)		709,927			(369,461	)		(187,979	)
Total increase (decrease) in net assets		146,891			689,770			887,717			6,769,667			499,858			684,544
Net assets at beginning of period		6,059,512			5,369,742			32,237,171			25,467,504			10,047,907			9,363,363
Net assets at end of period	$	6,206,403		$	6,059,512		$	33,124,888		$	32,237,171		$	10,547,765		$	10,047,907
	2020			2019			2020			2019			2020			2019
Units, beginning of period		301,805			327,896			1,596,668			1,547,747			252,846			257,684
Units issued		14,060			12,364			287,287			312,877			74,266			40,054
Units redeemed		(30,612	)		(38,455	)		(370,632	)		(263,956	)		(84,424	)		(44,892	)
Units, end of period		285,253			301,805			1,513,323			1,596,668			242,688			252,846

See accompanying notes.

34 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Investment Quality Bond Trust Series NAV						Lifestyle Aggressive Portfolio Series NAV						Lifestyle Balanced Portfolio Series NAV
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	624,734		$	584,072		$	304,254		$	198,501		$	2,720,191		$	1,795,577
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		624,734			584,072			304,254			198,501			2,720,191			1,795,577
Realized gains (losses) on investments:
Capital gain distributions received		14,463			-			1,060,711			720,776			3,520,595			2,497,086
Net realized gain (loss)		394,320			17			276,247			245,617			527,698			151,660
Realized gains (losses)		408,783			17			1,336,958			966,393			4,048,293			2,648,746
Unrealized appreciation (depreciation) during the period		1,305,131			1,239,252			587,221			1,788,623			5,787,838			8,971,705
Net increase (decrease) in net assets from operations		2,338,648			1,823,341			2,228,433			2,953,517			12,556,322			13,416,028
Changes from principal transactions:
Purchase payments		2,432,432			1,932,485			426,415			398,232			11,463,183			10,614,393
Transfers between sub-accounts and the company		3,030,979			3,114,745			439,442			148,813			8,022,321			6,115,948
Transfers on general account policy loans		(29,986	)		(42,280	)		(32,565	)		(32,500	)		(392,897	)		(14,733	)
Withdrawals		(296,518	)		(536,211	)		(3,948	)		(187,951	)		(1,041,023	)		(736,844	)
Annual contract fee		(1,010,837	)		(831,623	)		(424,962	)		(459,468	)		(9,456,075	)		(8,342,296	)
Net increase (decrease) in net assets from principal transactions		4,126,070			3,637,116			404,382			(132,874	)		8,595,509			7,636,468
Total increase (decrease) in net assets		6,464,718			5,460,457			2,632,815			2,820,643			21,151,831			21,052,496
Net assets at beginning of period		23,232,792			17,772,335			13,348,840			10,528,197			92,932,899			71,880,403
Net assets at end of period	$	29,697,510		$	23,232,792		$	15,981,655		$	13,348,840		$	114,084,730		$	92,932,899
	2020			2019			2020			2019			2020			2019
Units, beginning of period		1,234,989			1,033,066			811,220			813,597			6,441,156			5,873,257
Units issued		620,137			390,740			344,256			211,835			1,144,602			893,829
Units redeemed		(412,883	)		(188,817	)		(304,345	)		(214,212	)		(568,324	)		(325,930	)
Units, end of period		1,442,243			1,234,989			851,131			811,220			7,017,434			6,441,156

See accompanying notes.

35 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Lifestyle Conservative Portfolio Series NAV						Lifestyle Growth Portfolio Series I						Lifestyle Growth Portfolio Series NAV
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	188,705		$	86,583		$	28,114		$	20,998		$	9,667,834		$	6,644,157
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		188,705			86,583			28,114			20,998			9,667,834			6,644,157
Realized gains (losses) on investments:
Capital gain distributions received		109,659			72,685			61,344			54,947			20,498,905			15,737,122
Net realized gain (loss)		88,190			21,355			(4,393	)		5,972			2,178,678			2,278,113
Realized gains (losses)		197,849			94,040			56,951			60,919			22,677,583			18,015,235
Unrealized appreciation (depreciation) during the period		101,221			308,653			59,007			143,907			18,592,111			41,102,916
Net increase (decrease) in net assets from operations		487,775			489,276			144,072			225,824			50,937,528			65,762,308
Changes from principal transactions:
Purchase payments		348,292			339,466			19,740			29,191			31,836,380			32,422,203
Transfers between sub-accounts and the company		2,521,642			(456,337	)		(23,815	)		(95,894	)		1,926,713			(6,823,449	)
Transfers on general account policy loans		4,627			(93,886	)		(11,598	)		(28	)		(586,877	)		(1,259,633	)
Withdrawals		(89,821	)		(188,416	)		(8,440	)		(8,052	)		(5,130,657	)		(5,039,105	)
Annual contract fee		(355,777	)		(326,584	)		(56,300	)		(56,378	)		(22,193,391	)		(21,318,056	)
Net increase (decrease) in net assets from principal transactions		2,428,963			(725,757	)		(80,413	)		(131,161	)		5,852,168			(2,018,040	)
Total increase (decrease) in net assets		2,916,738			(236,481	)		63,659			94,663			56,789,696			63,744,268
Net assets at beginning of period		3,998,619			4,235,100			1,201,698			1,107,035			370,380,166			306,635,898
Net assets at end of period	$	6,915,357		$	3,998,619		$	1,265,357		$	1,201,698		$	427,169,862		$	370,380,166
	2020			2019			2020			2019			2020			2019
Units, beginning of period		305,812			364,449			88,975			99,550			24,102,842			24,249,413
Units issued		331,890			46,444			2,437			4,548			2,093,884			1,899,751
Units redeemed		(160,406	)		(105,081	)		(8,924	)		(15,123	)		(1,733,516	)		(2,046,322	)
Units, end of period		477,296			305,812			82,488			88,975			24,463,210			24,102,842

See accompanying notes.

36 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Lifestyle Moderate Portfolio Series NAV						M Capital Appreciation						M International Equity
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	810,649		$	553,111		$	-		$	51,791		$	172,455		$	276,781
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		810,649			553,111			-			51,791			172,455			276,781
Realized gains (losses) on investments:
Capital gain distributions received		904,523			594,089			489,124			1,312,215			-			-
Net realized gain (loss)		123,411			41,130			(761,807	)		(388,864	)		(101,477	)		(62,979	)
Realized gains (losses)		1,027,934			635,219			(272,683	)		923,351			(101,477	)		(62,979	)
Unrealized appreciation (depreciation) during the period		1,531,207			2,339,171			4,505,338			2,864,495			920,131			1,500,371
Net increase (decrease) in net assets from operations		3,369,790			3,527,501			4,232,655			3,839,637			991,109			1,714,173
Changes from principal transactions:
Purchase payments		3,281,150			3,228,143			1,032,103			1,033,721			583,787			649,771
Transfers between sub-accounts and the company		1,808,599			2,154,146			2,891,318			(11,209	)		226,983			973,994
Transfers on general account policy loans		(185,766	)		23,196			65,565			(224,310	)		(6,280	)		(133,470	)
Withdrawals		(848,643	)		(243,225	)		(468,335	)		(452,566	)		(196,614	)		(187,769	)
Annual contract fee		(2,633,794	)		(2,368,390	)		(659,588	)		(606,803	)		(343,478	)		(350,099	)
Net increase (decrease) in net assets from principal transactions		1,421,546			2,793,870			2,861,063			(261,167	)		264,398			952,427
Total increase (decrease) in net assets		4,791,336			6,321,371			7,093,718			3,578,470			1,255,507			2,666,600
Net assets at beginning of period		27,703,493			21,382,122			16,921,391			13,342,921			10,563,539			7,896,939
Net assets at end of period	$	32,494,829		$	27,703,493		$	24,015,109		$	16,921,391		$	11,819,046		$	10,563,539
	2020			2019			2020			2019			2020			2019
Units, beginning of period		1,984,942			1,776,296			133,588			135,729			280,814			252,594
Units issued		430,342			356,798			44,800			15,638			39,745			48,413
Units redeemed		(340,588	)		(148,152	)		(17,346	)		(17,779	)		(32,039	)		(20,193	)
Units, end of period		2,074,696			1,984,942			161,042			133,588			288,520			280,814

See accompanying notes.

37 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	M Large Cap Growth						M Large Cap Value						Managed Volatility Aggressive Portfolio Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	-		$	-		$	277,583		$	254,760		$	189,310		$	182,398
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		-			-			277,583			254,760			189,310			182,398
Realized gains (losses) on investments:
Capital gain distributions received		2,711,969			1,210,783			150,587			474,371			152,459			1,334,799
Net realized gain (loss)		1,289,924			264,780			(493,862	)		(111,371	)		108,600			250,428
Realized gains (losses)		4,001,893			1,475,563			(343,275	)		363,000			261,059			1,585,227
Unrealized appreciation (depreciation) during the period		1,478,340			4,193,310			(359,784	)		2,073,116			(1,139,863	)		777,477
Net increase (decrease) in net assets from operations		5,480,233			5,668,873			(425,476	)		2,690,876			(689,494	)		2,545,102
Changes from principal transactions:
Purchase payments		1,332,455			1,290,974			907,287			1,153,404			532,442			516,329
Transfers between sub-accounts and the company		(3,365,369	)		176,340			481,288			380,625			30,314			(97,492	)
Transfers on general account policy loans		39,735			(297,499	)		50,689			(227,868	)		(33,817	)		168,045
Withdrawals		(502,721	)		(549,386	)		(332,437	)		(400,385	)		(185,211	)		(726,493	)
Annual contract fee		(893,840	)		(842,018	)		(562,039	)		(631,099	)		(650,194	)		(640,372	)
Net increase (decrease) in net assets from principal transactions		(3,389,740	)		(221,589	)		544,788			274,677			(306,466	)		(779,983	)
Total increase (decrease) in net assets		2,090,493			5,447,284			119,312			2,965,553			(995,960	)		1,765,119
Net assets at beginning of period		21,214,403			15,767,119			15,300,062			12,334,509			14,331,527			12,566,408
Net assets at end of period	$	23,304,896		$	21,214,403		$	15,419,374		$	15,300,062		$	13,335,567		$	14,331,527
	2020			2019			2020			2019			2020			2019
Units, beginning of period		223,415			225,980			479,341			469,580			352,888			373,736
Units issued		19,492			23,192			88,557			59,818			9,225			8,577
Units redeemed		(52,495	)		(25,757	)		(69,045	)		(50,057	)		(17,353	)		(29,425	)
Units, end of period		190,412			223,415			498,853			479,341			344,760			352,888

See accompanying notes.

38 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Managed Volatility Aggressive Portfolio Series NAV						Managed Volatility Balanced Portfolio Series I						Managed Volatility Balanced Portfolio Series NAV
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	2,770,757		$	2,717,252		$	1,344,852		$	1,113,941		$	11,806,104		$	9,344,348
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		2,770,757			2,717,252			1,344,852			1,113,941			11,806,104			9,344,348
Realized gains (losses) on investments:
Capital gain distributions received		2,137,084			19,096,485			2,824,607			2,461,983			24,098,600			20,117,787
Net realized gain (loss)		1,002,239			3,601,221			(87,239	)		474,051			(700,406	)		1,121,602
Realized gains (losses)		3,139,323			22,697,706			2,737,368			2,936,034			23,398,194			21,239,389
Unrealized appreciation (depreciation) during the period		(16,347,403	)		10,603,022			(3,336,796	)		5,018,257			(27,603,893	)		43,481,668
Net increase (decrease) in net assets from operations		(10,437,323	)		36,017,980			745,424			9,068,232			7,600,405			74,065,405
Changes from principal transactions:
Purchase payments		12,776,836			13,669,902			1,089,292			1,204,861			29,285,867			32,789,343
Transfers between sub-accounts and the company		(5,098,015	)		(3,084,733	)		(469,833	)		207,036			(2,018,398	)		(3,844,579	)
Transfers on general account policy loans		(883,089	)		(653,462	)		(27,889	)		1,034,111			(382,816	)		(3,550,913	)
Withdrawals		(4,956,384	)		(6,563,264	)		(1,584,621	)		(3,202,918	)		(11,147,012	)		(13,575,693	)
Annual contract fee		(7,687,983	)		(8,218,361	)		(2,421,619	)		(2,462,132	)		(23,175,862	)		(23,905,064	)
Net increase (decrease) in net assets from principal transactions		(5,848,635	)		(4,849,918	)		(3,414,670	)		(3,219,042	)		(7,438,221	)		(12,086,906	)
Total increase (decrease) in net assets		(16,285,958	)		31,168,062			(2,669,246	)		5,849,190			162,184			61,978,499
Net assets at beginning of period		205,955,178			174,787,116			58,259,993			52,410,803			478,461,990			416,483,491
Net assets at end of period	$	189,669,220		$	205,955,178		$	55,590,747		$	58,259,993		$	478,624,174		$	478,461,990
	2020			2019			2020			2019			2020			2019
Units, beginning of period		8,440,376			8,654,592			1,256,887			1,333,343			20,698,617			21,264,076
Units issued		469,476			498,683			21,754			45,953			819,668			909,945
Units redeemed		(744,899	)		(712,899	)		(100,680	)		(122,409	)		(1,172,079	)		(1,475,404	)
Units, end of period		8,164,953			8,440,376			1,177,961			1,256,887			20,346,206			20,698,617

See accompanying notes.

39 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Managed Volatility Conservative Portfolio Series I						Managed Volatility Conservative Portfolio Series NAV						Managed Volatility Growth Portfolio Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	75,630		$	65,300		$	1,102,461		$	850,957		$	1,339,725		$	1,172,094
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		75,630			65,300			1,102,461			850,957			1,339,725			1,172,094
Realized gains (losses) on investments:
Capital gain distributions received		36,194			(1	)		493,506			-			3,666,561			5,024,434
Net realized gain (loss)		(42,330	)		(72,745	)		(227,440	)		(577,962	)		824,454			1,851,954
Realized gains (losses)		(6,136	)		(72,746	)		266,066			(577,962	)		4,491,015			6,876,388
Unrealized appreciation (depreciation) during the period		7,887			371,336			(106,126	)		4,031,875			(7,083,400	)		4,161,675
Net increase (decrease) in net assets from operations		77,381			363,890			1,262,401			4,304,870			(1,252,660	)		12,210,157
Changes from principal transactions:
Purchase payments		65,103			100,641			2,855,093			2,769,817			2,093,614			2,248,723
Transfers between sub-accounts and the company		(113,366	)		129,471			(707,875	)		(199,603	)		(1,057,307	)		(1,699,149	)
Transfers on general account policy loans		(36,379	)		(17,039	)		(98,633	)		(31,589	)		274,201			520,994
Withdrawals		(73,456	)		(422,286	)		(773,295	)		(2,021,657	)		(2,357,120	)		(4,287,254	)
Annual contract fee		(197,863	)		(225,270	)		(1,915,029	)		(1,962,684	)		(3,521,715	)		(3,551,244	)
Net increase (decrease) in net assets from principal transactions		(355,961	)		(434,483	)		(639,739	)		(1,445,716	)		(4,568,327	)		(6,767,930	)
Total increase (decrease) in net assets		(278,580	)		(70,593	)		622,662			2,859,154			(5,820,987	)		5,442,227
Net assets at beginning of period		2,799,405			2,869,998			35,895,200			33,036,046			70,513,128			65,070,901
Net assets at end of period	$	2,520,825		$	2,799,405		$	36,517,862		$	35,895,200		$	64,692,141		$	70,513,128
	2020			2019			2020			2019			2020			2019
Units, beginning of period		63,779			74,140			1,744,223			1,822,078			1,605,304			1,771,096
Units issued		5,310			5,056			144,910			185,570			29,509			30,714
Units redeemed		(13,545	)		(15,417	)		(173,540	)		(263,425	)		(140,835	)		(196,506	)
Units, end of period		55,544			63,779			1,715,593			1,744,223			1,493,978			1,605,304

See accompanying notes.

40 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Managed Volatility Growth Portfolio Series NAV						Managed Volatility Moderate Portfolio Series I						Managed Volatility Moderate Portfolio Series NAV
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	13,535,312		$	11,554,302		$	347,469		$	287,849		$	2,817,611		$	2,186,445
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		13,535,312			11,554,302			347,469			287,849			2,817,611			2,186,445
Realized gains (losses) on investments:
Capital gain distributions received		36,389,251			46,649,261			597,300			495,031			4,766,191			3,709,141
Net realized gain (loss)		5,584,330			8,916,559			(151,901	)		(54,668	)		(901,065	)		(731,771	)
Realized gains (losses)		41,973,581			55,565,820			445,399			440,363			3,865,126			2,977,370
Unrealized appreciation (depreciation) during the period		(66,699,820	)		45,742,068			(434,986	)		1,338,909			(3,331,332	)		10,125,926
Net increase (decrease) in net assets from operations		(11,190,927	)		112,862,190			357,882			2,067,121			3,351,405			15,289,741
Changes from principal transactions:
Purchase payments		45,251,792			51,917,517			171,819			145,568			7,062,127			7,579,582
Transfers between sub-accounts and the company		(25,836,893	)		(11,012,759	)		(83,809	)		98,680			(1,294,420	)		(166	)
Transfers on general account policy loans		(744,321	)		(2,341,086	)		67,096			25,492			65,159			(541,345	)
Withdrawals		(15,869,304	)		(22,978,903	)		(623,273	)		(297,366	)		(2,437,470	)		(3,519,607	)
Annual contract fee		(31,204,919	)		(32,717,622	)		(634,940	)		(613,235	)		(5,181,508	)		(5,252,376	)
Net increase (decrease) in net assets from principal transactions		(28,403,645	)		(17,132,853	)		(1,103,107	)		(640,861	)		(1,786,112	)		(1,733,912	)
Total increase (decrease) in net assets		(39,594,572	)		95,729,337			(745,225	)		1,426,260			1,565,293			13,555,829
Net assets at beginning of period		677,425,185			581,695,848			14,073,269			12,647,009			104,848,310			91,292,481
Net assets at end of period	$	637,830,613		$	677,425,185		$	13,328,044		$	14,073,269		$	106,413,603		$	104,848,310
	2020			2019			2020			2019			2020			2019
Units, beginning of period		28,695,691			29,489,739			299,597			314,253			4,625,270			4,705,951
Units issued		1,215,275			1,342,887			4,030			3,077			264,757			314,010
Units redeemed		(2,517,881	)		(2,136,935	)		(29,000	)		(17,733	)		(344,339	)		(394,691	)
Units, end of period		27,393,085			28,695,691			274,627			299,597			4,545,688			4,625,270

See accompanying notes.

41 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Mid Cap Index Trust Series I						Mid Cap Index Trust Series NAV						Mid Cap Stock Trust Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	373,650		$	287,564		$	1,193,175		$	896,794		$	-		$	-
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		373,650			287,564			1,193,175			896,794			-			-
Realized gains (losses) on investments:
Capital gain distributions received		2,482,197			2,110,553			7,698,570			6,175,492			3,813,926			3,564,232
Net realized gain (loss)		(144,774	)		(3,805	)		(1,749,161	)		(98,568	)		859,409			692,609
Realized gains (losses)		2,337,423			2,106,748			5,949,409			6,076,924			4,673,335			4,256,841
Unrealized appreciation (depreciation) during the period		345,889			3,408,848			4,107,691			9,081,616			9,643,242			2,323,651
Net increase (decrease) in net assets from operations		3,056,962			5,803,160			11,250,275			16,055,334			14,316,577			6,580,492
Changes from principal transactions:
Purchase payments		515,990			540,069			5,171,573			5,251,789			425,055			479,287
Transfers between sub-accounts and the company		(458,308	)		(1,561,227	)		10,282			2,078,437			(1,690,693	)		(345,128	)
Transfers on general account policy loans		3,502			(13,878	)		(41,456	)		(615,656	)		87,584			(96,993	)
Withdrawals		(817,861	)		(1,020,855	)		(1,879,149	)		(2,088,124	)		(1,672,427	)		(945,743	)
Annual contract fee		(1,168,313	)		(1,307,430	)		(2,832,063	)		(2,951,320	)		(1,151,332	)		(1,123,200	)
Net increase (decrease) in net assets from principal transactions		(1,924,990	)		(3,363,321	)		429,187			1,675,126			(4,001,813	)		(2,031,777	)
Total increase (decrease) in net assets		1,131,972			2,439,839			11,679,462			17,730,460			10,314,764			4,548,715
Net assets at beginning of period		26,239,342			23,799,503			77,917,342			60,186,882			24,125,866			19,577,151
Net assets at end of period	$	27,371,314		$	26,239,342		$	89,596,804		$	77,917,342		$	34,440,630		$	24,125,866
	2020			2019			2020			2019			2020			2019
Units, beginning of period		413,838			471,397			1,869,283			1,815,238			403,956			440,965
Units issued		9,944			9,369			420,343			331,798			21,443			8,127
Units redeemed		(42,484	)		(66,928	)		(391,938	)		(277,753	)		(76,733	)		(45,136	)
Units, end of period		381,298			413,838			1,897,688			1,869,283			348,666			403,956

See accompanying notes.

42 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Mid Cap Stock Trust Series NAV						Mid Value Trust Series I						Mid Value Trust Series NAV
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	-		$	-		$	171,507		$	126,839		$	528,321		$	371,469
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		-			-			171,507			126,839			528,321			371,469
Realized gains (losses) on investments:
Capital gain distributions received		7,833,180			6,963,932			243,580			1,471,500			729,823			4,104,105
Net realized gain (loss)		3,674,158			722,704			(824,508	)		(493,005	)		(1,765,987	)		(1,302,176	)
Realized gains (losses)		11,507,338			7,686,636			(580,928	)		978,495			(1,036,164	)		2,801,929
Unrealized appreciation (depreciation) during the period		18,421,563			4,636,470			1,328,785			940,710			3,647,574			2,225,291
Net increase (decrease) in net assets from operations		29,928,901			12,323,106			919,364			2,046,044			3,139,731			5,398,689
Changes from principal transactions:
Purchase payments		2,653,214			2,891,539			219,178			270,093			2,034,271			2,429,357
Transfers between sub-accounts and the company		(1,816,839	)		3,513,172			(505,104	)		(487,610	)		(782,545	)		792,067
Transfers on general account policy loans		(199,526	)		(468,400	)		1,543			(20,550	)		1,018			(172,023	)
Withdrawals		(2,276,864	)		(1,841,282	)		(339,909	)		(307,371	)		(1,149,126	)		(1,243,813	)
Annual contract fee		(2,026,495	)		(1,781,705	)		(434,321	)		(494,865	)		(1,197,420	)		(1,235,205	)
Net increase (decrease) in net assets from principal transactions		(3,666,510	)		2,313,324			(1,058,613	)		(1,040,303	)		(1,093,802	)		570,383
Total increase (decrease) in net assets		26,262,391			14,636,430			(139,249	)		1,005,741			2,045,929			5,969,072
Net assets at beginning of period		49,089,774			34,453,344			11,926,506			10,920,765			32,935,886			26,966,814
Net assets at end of period	$	75,352,165		$	49,089,774		$	11,787,257		$	11,926,506		$	34,981,815		$	32,935,886
	2020			2019			2020			2019			2020			2019
Units, beginning of period		376,719			355,971			322,699			353,220			578,814			566,264
Units issued		102,606			79,932			8,465			6,966			81,194			106,805
Units redeemed		(129,860	)		(59,184	)		(40,171	)		(37,487	)		(99,709	)		(94,255	)
Units, end of period		349,465			376,719			290,993			322,699			560,299			578,814

See accompanying notes.

43 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Money Market Trust Series I						Money-Market Trust Series NAV						Opportunistic Fixed Income Trust Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	81,901		$	505,532		$	347,646		$	1,901,930		$	182,686		$	295,704
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		81,901			505,532			347,646			1,901,930			182,686			295,704
Realized gains (losses) on investments:
Capital gain distributions received		-			-			2			12			-			(3	)
Net realized gain (loss)		-			-			-			-			(4,211	)		(35,574	)
Realized gains (losses)		-			-			2			12			(4,211	)		(35,577	)
Unrealized appreciation (depreciation) during the period		-			-			1			(1	)		430,054			28,472
Net increase (decrease) in net assets from operations		81,901			505,532			347,649			1,901,941			608,529			288,599
Changes from principal transactions:
Purchase payments		2,040,045			2,113,119			79,545,481			99,533,794			114,296			134,745
Transfers between sub-accounts and the company		7,086,123			413,110			(25,756,667	)		(77,938,239	)		36,946			19,344
Transfers on general account policy loans		302,486			104,705			(4,087,976	)		(485,398	)		30,760			(16,292	)
Withdrawals		(4,767,966	)		(3,572,595	)		(6,888,246	)		(18,268,299	)		(326,617	)		(165,702	)
Annual contract fee		(2,850,264	)		(2,853,997	)		(6,997,439	)		(6,200,123	)		(266,888	)		(252,944	)
Net increase (decrease) in net assets from principal transactions		1,810,424			(3,795,658	)		35,815,153			(3,358,265	)		(411,503	)		(280,849	)
Total increase (decrease) in net assets		1,892,325			(3,290,126	)		36,162,802			(1,456,324	)		197,026			7,750
Net assets at beginning of period		26,542,430			29,832,556			100,918,374			102,374,698			4,631,961			4,624,211
Net assets at end of period	$	28,434,755		$	26,542,430		$	137,081,176		$	100,918,374		$	4,828,987		$	4,631,961
	2020			2019			2020			2019			2020			2019
Units, beginning of period		1,033,832			1,184,300			9,667,957			10,002,508			133,667			141,954
Units issued		605,354			288,107			18,502,172			13,020,621			8,162			8,756
Units redeemed		(535,136	)		(438,575	)		(15,077,622	)		(13,355,172	)		(19,367	)		(17,043	)
Units, end of period		1,104,050			1,033,832			13,092,507			9,667,957			122,462			133,667

See accompanying notes.

44 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Opportunistic Fixed Income Trust Series NAV						PIMCO All Asset						Real Estate Securities Trust Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	1,285,769		$	2,429,809		$	1,393,712		$	882,594		$	428,463		$	511,055
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		1,285,769			2,429,809			1,393,712			882,594			428,463			511,055
Realized gains (losses) on investments:
Capital gain distributions received		-			-			-			-			2,550,429			194,398
Net realized gain (loss)		(192,199	)		(194,919	)		(428,758	)		(89,925	)		1,826,751			2,504,698
Realized gains (losses)		(192,199	)		(194,919	)		(428,758	)		(89,925	)		4,377,180			2,699,096
Unrealized appreciation (depreciation) during the period		3,180,084			94,319			1,016,844			2,858,840			(6,837,236	)		2,969,924
Net increase (decrease) in net assets from operations		4,273,654			2,329,209			1,981,798			3,651,509			(2,031,593	)		6,180,075
Changes from principal transactions:
Purchase payments		2,321,878			2,824,380			1,634,586			1,517,465			406,685			417,131
Transfers between sub-accounts and the company		(5,267,801	)		(1,808,677	)		(2,614,396	)		(1,733,657	)		294,290			(628,326	)
Transfers on general account policy loans		19,831			(197,807	)		(822,299	)		(32,387	)		143,034			(133,590	)
Withdrawals		(1,070,596	)		(2,102,848	)		(828,285	)		(595,803	)		(1,167,730	)		(1,702,404	)
Annual contract fee		(1,303,091	)		(1,411,293	)		(1,073,542	)		(1,191,968	)		(1,058,308	)		(1,145,513	)
Net increase (decrease) in net assets from principal transactions		(5,299,779	)		(2,696,245	)		(3,703,936	)		(2,036,350	)		(1,382,029	)		(3,192,702	)
Total increase (decrease) in net assets		(1,026,125	)		(367,036	)		(1,722,138	)		1,615,159			(3,413,622	)		2,987,373
Net assets at beginning of period		35,844,888			36,211,924			34,209,087			32,593,928			25,155,901			22,168,528
Net assets at end of period	$	34,818,763		$	35,844,888		$	32,486,949		$	34,209,087		$	21,742,279		$	25,155,901
	2020			2019			2020			2019			2020			2019
Units, beginning of period		1,028,847			1,105,573			1,747,524			1,851,468			103,962			118,553
Units issued		138,231			148,107			136,013			124,200			9,629			2,214
Units redeemed		(289,653	)		(224,833	)		(344,267	)		(228,144	)		(18,366	)		(16,805	)
Units, end of period		877,425			1,028,847			1,539,270			1,747,524			95,225			103,962

See accompanying notes.

45 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Real Estate Securities Trust Series NAV						Science & Technology Trust Series I						Science & Technology Trust Series NAV
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	1,149,122		$	1,151,379		$	-		$	32,032		$	-		$	69,373
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		1,149,122			1,151,379			-			32,032			-			69,373
Realized gains (losses) on investments:
Capital gain distributions received		6,677,805			429,361			3,288,757			4,528,570			5,953,957			7,112,141
Net realized gain (loss)		1,417,777			1,928,820			1,553,116			828,216			2,569,229			1,044,504
Realized gains (losses)		8,095,582			2,358,181			4,841,873			5,356,786			8,523,186			8,156,645
Unrealized appreciation (depreciation) during the period		(11,819,305	)		9,521,148			9,746,703			2,546,874			17,523,161			4,132,782
Net increase (decrease) in net assets from operations		(2,574,601	)		13,030,708			14,588,576			7,935,692			26,046,347			12,358,800
Changes from principal transactions:
Purchase payments		3,805,135			3,618,346			360,101			456,755			3,149,828			2,443,658
Transfers between sub-accounts and the company		772,145			2,649,419			(1,499,021	)		167,445			2,568,535			1,559,853
Transfers on general account policy loans		(77,298	)		(226,160	)		(77,331	)		(224,946	)		(169,889	)		(296,895	)
Withdrawals		(1,422,985	)		(1,605,685	)		(706,118	)		(1,103,964	)		(1,358,309	)		(886,664	)
Annual contract fee		(2,077,560	)		(2,088,752	)		(1,303,631	)		(1,215,433	)		(1,969,496	)		(1,638,913	)
Net increase (decrease) in net assets from principal transactions		999,437			2,347,168			(3,226,000	)		(1,920,143	)		2,220,669			1,181,039
Total increase (decrease) in net assets		(1,575,164	)		15,377,876			11,362,576			6,015,549			28,267,016			13,539,839
Net assets at beginning of period		59,531,329			44,153,453			27,444,719			21,429,170			45,337,535			31,797,696
Net assets at end of period	$	57,956,165		$	59,531,329		$	38,807,295		$	27,444,719		$	73,604,551		$	45,337,535
	2020			2019			2020			2019			2020			2019
Units, beginning of period		293,363			281,700			361,566			389,756			751,981			728,285
Units issued		66,864			46,020			26,265			21,265			171,899			109,092
Units redeemed		(57,739	)		(34,357	)		(63,131	)		(49,455	)		(149,125	)		(85,396	)
Units, end of period		302,488			293,363			324,700			361,566			774,755			751,981

See accompanying notes.

46 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Select Bond Trust Series I						Select Bond Trust Series NAV						Short Term Government Income Trust Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	94,297		$	81,217		$	848,871		$	677,551		$	101,711		$	87,156
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		94,297			81,217			848,871			677,551			101,711			87,156
Realized gains (losses) on investments:
Capital gain distributions received		-			-			-			-			-			-
Net realized gain (loss)		30,528			3,637			130,215			(24,669	)		113,542			(67,134	)
Realized gains (losses)		30,528			3,637			130,215			(24,669	)		113,542			(67,134	)
Unrealized appreciation (depreciation) during the period		107,888			183,274			1,346,413			1,492,295			(22,715	)		144,590
Net increase (decrease) in net assets from operations		232,713			268,128			2,325,499			2,145,177			192,538			164,612
Changes from principal transactions:
Purchase payments		70,126			79,607			1,979,848			1,979,696			647,861			659,928
Transfers between sub-accounts and the company		360,474			(156,964	)		178,733			(31,483	)		1,686,968			884,731
Transfers on general account policy loans		(6,642	)		2,383			(22,769	)		(175,151	)		20,456			6,356
Withdrawals		(49,216	)		(205,241	)		(377,214	)		(944,444	)		(927,923	)		(908,803	)
Annual contract fee		(157,127	)		(184,957	)		(1,123,168	)		(1,072,555	)		(931,060	)		(850,310	)
Net increase (decrease) in net assets from principal transactions		217,615			(465,172	)		635,430			(243,937	)		496,302			(208,098	)
Total increase (decrease) in net assets		450,328			(197,044	)		2,960,929			1,901,240			688,840			(43,486	)
Net assets at beginning of period		2,871,812			3,068,856			25,990,246			24,089,006			5,271,454			5,314,940
Net assets at end of period	$	3,322,140		$	2,871,812		$	28,951,175		$	25,990,246		$	5,960,294		$	5,271,454
	2020			2019			2020			2019			2020			2019
Units, beginning of period		221,574			257,968			1,997,767			2,018,413			467,611			487,428
Units issued		111,513			16,914			271,921			225,256			512,510			124,664
Units redeemed		(98,099	)		(53,308	)		(230,622	)		(245,902	)		(469,760	)		(144,481	)
Units, end of period		234,988			221,574			2,039,066			1,997,767			510,361			467,611

See accompanying notes.

47 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Short Term Government Income Trust Series NAV						Small Cap Index Trust Series I						Small Cap Index Trust Series NAV
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	513,093		$	485,972		$	123,153		$	99,347		$	645,675		$	418,537
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		513,093			485,972			123,153			99,347			645,675			418,537
Realized gains (losses) on investments:
Capital gain distributions received		-			(1	)		639,340			948,530			3,244,349			3,689,582
Net realized gain (loss)		24,531			(178,022	)		(57,971	)		(52,218	)		(623,035	)		308,528
Realized gains (losses)		24,531			(178,023	)		581,369			896,312			2,621,314			3,998,110
Unrealized appreciation (depreciation) during the period		431,917			502,856			964,270			1,230,817			6,634,192			4,252,107
Net increase (decrease) in net assets from operations		969,541			810,805			1,668,792			2,226,476			9,901,181			8,668,754
Changes from principal transactions:
Purchase payments		2,896,025			2,245,198			161,779			196,832			3,171,312			2,985,763
Transfers between sub-accounts and the company		(1,319,374	)		7,332,352			(1,120,938	)		(565,357	)		1,852,664			2,373,417
Transfers on general account policy loans		251,867			(271,957	)		22,025			(1,983	)		(14,951	)		(240,782	)
Withdrawals		(572,759	)		(2,060,004	)		(260,510	)		(266,895	)		(1,338,085	)		(1,173,209	)
Annual contract fee		(1,083,314	)		(882,557	)		(330,272	)		(361,644	)		(1,420,638	)		(1,350,637	)
Net increase (decrease) in net assets from principal transactions		172,445			6,363,032			(1,527,916	)		(999,047	)		2,250,302			2,594,552
Total increase (decrease) in net assets		1,141,986			7,173,837			140,876			1,227,429			12,151,483			11,263,306
Net assets at beginning of period		28,924,814			21,750,977			10,375,809			9,148,380			44,522,397			33,259,091
Net assets at end of period	$	30,066,800		$	28,924,814		$	10,516,685		$	10,375,809		$	56,673,880		$	44,522,397
	2020			2019			2020			2019			2020			2019
Units, beginning of period		2,552,823			1,985,657			218,130			240,490			1,170,187			1,093,286
Units issued		802,503			1,016,492			12,822			17,607			285,440			293,078
Units redeemed		(795,071	)		(449,326	)		(45,608	)		(39,967	)		(207,260	)		(216,177	)
Units, end of period		2,560,255			2,552,823			185,344			218,130			1,248,367			1,170,187

See accompanying notes.

48 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Small Cap Opportunities Trust Series I						Small Cap Opportunities Trust Series NAV						Small Cap Stock Trust Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	169,291		$	110,521		$	140,134		$	84,207		$	-		$	-
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		169,291			110,521			140,134			84,207			-			-
Realized gains (losses) on investments:
Capital gain distributions received		1,399,476			2,344,736			1,085,748			1,559,530			612,007			1,035,782
Net realized gain (loss)		(974,326	)		(637,257	)		(908,082	)		(514,440	)		(75,780	)		(551,224	)
Realized gains (losses)		425,150			1,707,479			177,666			1,045,090			536,227			484,558
Unrealized appreciation (depreciation) during the period		1,736,081			4,478,441			2,097,923			2,934,369			1,439,702			306,165
Net increase (decrease) in net assets from operations		2,330,522			6,296,441			2,415,723			4,063,666			1,975,929			790,723
Changes from principal transactions:
Purchase payments		720,398			784,463			1,009,127			1,100,977			52,414			59,879
Transfers between sub-accounts and the company		(168,482	)		(321,089	)		310,327			548,799			2,285,883			(292,379	)
Transfers on general account policy loans		123,754			(136,210	)		(14,369	)		(88,365	)		1,961			1,208
Withdrawals		(1,701,158	)		(1,613,424	)		(415,416	)		(828,202	)		(102,165	)		(87,370	)
Annual contract fee		(1,312,891	)		(1,482,918	)		(549,552	)		(594,320	)		(118,441	)		(116,868	)
Net increase (decrease) in net assets from principal transactions		(2,338,379	)		(2,769,178	)		340,117			138,889			2,119,652			(435,530	)
Total increase (decrease) in net assets		(7,857	)		3,527,263			2,755,840			4,202,555			4,095,581			355,193
Net assets at beginning of period		29,196,144			25,668,881			19,986,646			15,784,091			2,345,008			1,989,815
Net assets at end of period	$	29,188,287		$	29,196,144		$	22,742,486		$	19,986,646		$	6,440,589		$	2,345,008
	2020			2019			2020			2019			2020			2019
Units, beginning of period		543,588			599,954			753,610			747,491			54,992			64,404
Units issued		9,249			5,288			145,901			112,675			56,428			40,883
Units redeemed		(58,261	)		(61,654	)		(119,412	)		(106,556	)		(11,758	)		(50,295	)
Units, end of period		494,576			543,588			780,099			753,610			99,662			54,992

See accompanying notes.

49 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Small Cap Stock Trust Series NAV						Small Cap Value Trust Series I						Small Cap Value Trust Series NAV
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	-		$	-		$	20,758		$	17,919		$	396,363		$	230,021
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		-			-			20,758			17,919			396,363			230,021
Realized gains (losses) on investments:
Capital gain distributions received		3,922,572			7,389,370			230,481			220,484			4,202,018			2,526,736
Net realized gain (loss)		(592,097	)		(201,302	)		(378,817	)		(163,447	)		(2,595,564	)		(1,654,415	)
Realized gains (losses)		3,330,475			7,188,068			(148,336	)		57,037			1,606,454			872,321
Unrealized appreciation (depreciation) during the period		11,054,528			581,986			(198,189	)		632,418			(3,383,986	)		7,136,865
Net increase (decrease) in net assets from operations		14,385,003			7,770,054			(325,767	)		707,374			(1,381,169	)		8,239,207
Changes from principal transactions:
Purchase payments		1,988,458			1,682,344			109,742			78,286			2,905,317			2,662,796
Transfers between sub-accounts and the company		(188,698	)		2,337,878			(395,252	)		(398,311	)		4,787,981			(89,539	)
Transfers on general account policy loans		264,548			(797,840	)		5,209			(4,016	)		38,489			(155,431	)
Withdrawals		(499,938	)		(1,158,533	)		(234	)		(73,416	)		(1,275,088	)		(1,095,347	)
Annual contract fee		(1,013,301	)		(899,993	)		(94,444	)		(121,211	)		(1,438,759	)		(1,531,145	)
Net increase (decrease) in net assets from principal transactions		551,069			1,163,856			(374,979	)		(518,668	)		5,017,940			(208,666	)
Total increase (decrease) in net assets		14,936,072			8,933,910			(700,746	)		188,706			3,636,771			8,030,541
Net assets at beginning of period		29,683,169			20,749,259			3,002,627			2,813,921			38,641,004			30,610,463
Net assets at end of period	$	44,619,241		$	29,683,169		$	2,301,881		$	3,002,627		$	42,277,775		$	38,641,004
	2020			2019			2020			2019			2020			2019
Units, beginning of period		585,403			565,112			87,874			104,188			400,919			402,147
Units issued		119,974			111,380			8,341			4,033			127,213			51,511
Units redeemed		(125,006	)		(91,089	)		(24,008	)		(20,347	)		(58,063	)		(52,739	)
Units, end of period		580,371			585,403			72,207			87,874			470,069			400,919

See accompanying notes.

50 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Small Company Value Trust Series I						Small Company Value Trust Series NAV						Strategic Income Opportunities Trust Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	31,076		$	109,667		$	112,119		$	274,725		$	113,404		$	207,850
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		31,076			109,667			112,119			274,725			113,404			207,850
Realized gains (losses) on investments:
Capital gain distributions received		712,366			6,149,749			2,208,408			14,516,275			-			-
Net realized gain (loss)		(2,322,576	)		(495,665	)		(4,291,178	)		(2,746,983	)		3,560			(35,661	)
Realized gains (losses)		(1,610,210	)		5,654,084			(2,082,770	)		11,769,292			3,560			(35,661	)
Unrealized appreciation (depreciation) during the period		2,593,993			(2,931,674	)		6,772,342			(5,480,277	)		430,394			625,231
Net increase (decrease) in net assets from operations		1,014,859			2,832,077			4,801,691			6,563,740			547,358			797,420
Changes from principal transactions:
Purchase payments		234,099			294,912			2,193,492			2,068,954			216,723			457,191
Transfers between sub-accounts and the company		291,764			(417,569	)		2,676,608			(20,371	)		(74,313	)		(151,421	)
Transfers on general account policy loans		(64,550	)		(49,189	)		203,257			(356,478	)		(26,863	)		(13,593	)
Withdrawals		(1,096,213	)		(498,764	)		(676,353	)		(1,025,014	)		(106,044	)		(1,114,497	)
Annual contract fee		(501,594	)		(623,469	)		(942,892	)		(937,135	)		(394,735	)		(693,475	)
Net increase (decrease) in net assets from principal transactions		(1,136,494	)		(1,294,079	)		3,454,112			(270,044	)		(385,232	)		(1,515,795	)
Total increase (decrease) in net assets		(121,635	)		1,537,998			8,255,803			6,293,696			162,126			(718,375	)
Net assets at beginning of period		13,031,572			11,493,574			31,654,595			25,360,899			6,951,239			7,669,614
Net assets at end of period	$	12,909,937		$	13,031,572		$	39,910,398		$	31,654,595		$	7,113,365		$	6,951,239
	2020			2019			2020			2019			2020			2019
Units, beginning of period		249,902			276,659			909,089			915,140			227,485			278,362
Units issued		15,683			4,353			255,579			129,011			15,865			19,667
Units redeemed		(38,957	)		(31,110	)		(115,565	)		(135,062	)		(28,980	)		(70,544	)
Units, end of period		226,628			249,902			1,049,103			909,089			214,370			227,485

See accompanying notes.

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Strategic Income Opportunities Trust Series NAV						Total Bond Market Series Trust NAV						Total Stock Market Index Trust Series I
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	635,171		$	980,926		$	920,143		$	709,874		$	275,948		$	239,017
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		635,171			980,926			920,143			709,874			275,948			239,017
Realized gains (losses) on investments:
Capital gain distributions received		-			-			-			-			1,376,197			1,012,244
Net realized gain (loss)		(6,697	)		(99,395	)		219,779			(80,807	)		381,261			406,650
Realized gains (losses)		(6,697	)		(99,395	)		219,779			(80,807	)		1,757,458			1,418,894
Unrealized appreciation (depreciation) during the period		2,354,962			2,708,669			1,366,109			1,616,752			884,211			2,266,243
Net increase (decrease) in net assets from operations		2,983,436			3,590,200			2,506,031			2,245,819			2,917,617			3,924,154
Changes from principal transactions:
Purchase payments		2,489,889			2,508,289			3,842,002			2,243,598			350,992			382,570
Transfers between sub-accounts and the company		1,005,475			(452,738	)		6,689,420			3,276,726			131,040			(560,432	)
Transfers on general account policy loans		(25,794	)		(149,382	)		(43,468	)		(117,743	)		(32,921	)		(131,980	)
Withdrawals		(924,352	)		(1,700,537	)		(1,104,822	)		(1,414,059	)		(787,605	)		(343,768	)
Annual contract fee		(1,392,297	)		(1,356,787	)		(1,403,893	)		(1,103,613	)		(804,190	)		(826,474	)
Net increase (decrease) in net assets from principal transactions		1,152,921			(1,151,155	)		7,979,239			2,884,909			(1,142,684	)		(1,480,084	)
Total increase (decrease) in net assets		4,136,357			2,439,045			10,485,270			5,130,728			1,774,933			2,444,070
Net assets at beginning of period		35,396,497			32,957,452			31,949,935			26,819,207			16,448,013			14,003,943
Net assets at end of period	$	39,532,854		$	35,396,497		$	42,435,205		$	31,949,935		$	18,222,946		$	16,448,013
	2020			2019			2020			2019			2020			2019
Units, beginning of period		1,557,469			1,609,612			1,178,953			1,071,752			417,339			460,603
Units issued		227,988			233,142			466,789			267,629			60,443			12,720
Units redeemed		(183,692	)		(285,285	)		(187,545	)		(160,428	)		(97,061	)		(55,984	)
Units, end of period		1,601,765			1,557,469			1,458,197			1,178,953			380,721			417,339

See accompanying notes.

52 of 69

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

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

	Total Stock Market Index Trust Series NAV						Ultra Short Term Bond Trust Series I						Ultra Short Term Bond Trust Series NAV
	2020			2019			2020			2019			2020			2019
Income:
Dividend distributions received	$	1,471,430		$	1,135,002		$	29,960		$	27,116		$	191,235		$	172,299
Expenses:
Mortality and expense risk and administrative charges		-			-			-			-			-			-
Net investment income (loss)		1,471,430			1,135,002			29,960			27,116			191,235			172,299
Realized gains (losses) on investments:
Capital gain distributions received		7,150,455			4,671,474			-			1			-			-
Net realized gain (loss)		3,011,179			1,819,862			2,081			1,586			(5,528	)		(6,589	)
Realized gains (losses)		10,161,634			6,491,336			2,081			1,587			(5,528	)		(6,589	)
Unrealized appreciation (depreciation) during the period		6,356,290			9,606,472			(10,389	)		13,054			(39,071	)		80,585
Net increase (decrease) in net assets from operations		17,989,354			17,232,810			21,652			41,757			146,636			246,295
Changes from principal transactions:
Purchase payments		4,386,745			4,269,464			39,670			65,163			860,630			688,788
Transfers between sub-accounts and the company		1,735,668			2,013,146			194,872			215,619			(136,396	)		2,587,908
Transfers on general account policy loans		269,583			(207,286	)		(8	)		6			148,539			(112,339	)
Withdrawals		(1,532,179	)		(2,456,784	)		(51,406	)		(3,305	)		27,242			(914,394	)
Annual contract fee		(2,436,639	)		(2,186,327	)		(100,895	)		(116,263	)		(395,243	)		(349,777	)
Net increase (decrease) in net assets from principal transactions		2,423,178			1,432,213			82,233			161,220			504,772			1,900,186
Total increase (decrease) in net assets		20,412,532			18,665,023			103,885			202,977			651,408			2,146,481
Net assets at beginning of period		76,514,484			57,849,461			1,515,373			1,312,396			8,873,155			6,726,674
Net assets at end of period	$	96,927,016		$	76,514,484		$	1,619,258		$	1,515,373		$	9,524,563		$	8,873,155
	2020			2019			2020			2019			2020			2019
Units, beginning of period		581,587			570,309			142,580			127,331			831,133			649,459
Units issued		131,310			82,588			28,406			36,327			312,509			470,242
Units redeemed		(106,540	)		(71,310	)		(20,834	)		(21,078	)		(265,673	)		(288,568	)
Units, end of period		606,357			581,587			150,152			142,580			877,969			831,133

See accompanying notes.

53 of 69

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

NOTES TO FINANCIAL STATEMENTS

December 31, 2020

1. Organization

John Hancock Life Insurance Company (U.S.A.) Separate Account A (the “Account”) is a separate account established by John Hancock Life Insurance Company (U.S.A.) (the “Company”). The Account operates as a Unit Investment Trust under the Investment Company Act of 1940, as amended (the “Act”) and is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 Financial Services – Investment Companies. The Account consists of 91 active sub-accounts which are exclusively invested in a corresponding portfolio of the John Hancock Variable Insurance Trust (the “Trust”), and 5 active sub-accounts that are invested in portfolios of other Non-affiliated Trusts (the “Non-affiliated Trusts”). The Trust and Non-affiliated Trusts are registered under the Act as an open-ended management investment company, commonly known as a mutual fund, which does not transact with the general public. The Account is a funding vehicle for the allocation of net premiums under single premium variable life and variable universal life insurance contracts (the “Contracts”) issued by the Company.

The Company is a stock life insurance company organized originally under the laws of the State of Maine in 1955 and later in 1992, the Company changed its state of domicile to the State of Michigan. The Company is an indirect, wholly owned subsidiary of Manulife Financial Corporation (“MFC”), a Canadian based publicly traded life insurance company. MFC and its subsidiaries are known collectively as Manulife Financial.

The Company is required to maintain assets in the Account with a total fair value of at least equal to the reserves and other liabilities relating to the variable benefits under all Contracts participating in the Account. These assets may not be charged with liabilities which arise from any other business the Company conducts. However, all obligations under the Contracts are general corporate obligations of the Company.

In addition to the Account, certain contract owners may also allocate funds to the fixed account, which is part of the Company’s general account. Because of exemptive and exclusionary provisions, interests in the fixed account have not been registered under the Securities Act of 1933, and the Company’s general account has not been registered as an investment company under the Investment Company Act of 1940. Net interfund transfers include transfers between separate and general accounts.

Each sub-account holds shares of a particular series (“Portfolio”) of a registered investment company. Sub-accounts that invest in Portfolios of the Trust may offer 2 classes of units to fund Contracts issued by the Company. These classes, Series I and Series NAV, represent an interest in the same Trust Portfolio, but in different classes of that Portfolio. Series I and Series NAV shares of the Trust Portfolio differ in the level of 12b-1 fees and other expenses assessed against the Portfolio’s assets.

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2020

2. Significant Accounting Policies

Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from reported results using those estimates.

The Company’s results and operations have been and may continue to be adversely impacted by the COVID-19 pandemic and the recent economic downturn. The adverse effects include but are not limited to significant volatility in equity markets and decline in interest rates, increase in credit risk, strain on commodity markets, foreign currency exchange rate volatility, increases in insurance claims, persistency and redemptions, and disruption of business operations. The breadth and depth of these events and how long they will continue have introduced additional uncertainty around estimates used in determining the carrying value of certain assets and liabilities included in these financial statements.

Valuation of Investments

Investments made in the Portfolios of the Trust, and of the Non-affiliated Trusts, are valued at fair value based on the reported net asset values of such Portfolios. Investment transactions are recorded on the trade date. Income from dividends, and gains from realized gain distributions are recorded on the ex-dividend date. Realized gains and losses on the sales of investments are computed on a first-in, first-out basis.

Amounts Receivable/Payable

Receivables/Payables from/to Portfolios/the Company are due to unsettled contract transactions (net of asset-based charges) and/or subsequent/preceding purchases/sales of the respective Portfolios’ shares. The amounts are due from/to either the respective Portfolio and/or the Company for the benefit of contract owners. There are no unsettled policy transactions at December 31, 2020.

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2020

3. Federal Income Taxes

The Account does not file separate tax returns. The taxable income of the Account is consolidated with that of the Company within the consolidated federal tax return. Any tax contingencies arising from the taxable income generated by the Account is the responsibility of the Company and the Company holds any and all tax contingencies on its financial statements. The Company’s consolidated federal tax return for the years 2014 and 2015 are currently under examination by the Internal Revenue Service. The years from 2015 are also open for examination by the internal revenue service. The Account is not a party to the consolidated tax sharing agreement thus no amount of income taxes or tax contingencies are passed through to the Account. The legal form of the Account is not taxable in any state or foreign jurisdictions.

The income taxes topic of the FASB ASC establishes a minimum threshold for financial statement recognition of the benefit of positions taken, or expected to be taken, in filing tax returns (including whether the Account is taxable in certain jurisdictions). The topic requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet the more-likely-than-not threshold would be recorded as tax expense or benefit.

The Account complies with the provisions of FASB ASC Topic 740, Income Taxes. As of December 31, 2020, the Account did not have a liability for any uncertain tax positions. The Account recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statements of Operations and Changes in Contract Owners’ Equity.

4. Transactions with Affiliates

The Company has an administrative services agreement with Manulife Financial, whereby Manulife Financial or its designee, with the consent of the Company, performs certain services on behalf of the Company necessary for the operation of the Account. John Hancock Investment Management Services, LLC (“JHIMS”), a Delaware limited liability company controlled by MFC, serves as investment adviser for the Trust.

John Hancock Distributors, LLC, a registered broker-dealer and wholly owned subsidiary of JHUSA, acts as the principle underwriter of the Contracts pursuant to a distribution agreement with the Company . Contracts are sold by registered representatives of either John Hancock Distributors, LLC or other broker-dealers having distribution agreements with John Hancock Distributors , LLC.

Certain officers of the Account are officers and directors of JHUSA or the Trust.

Contract charges, as described in Note 9, are paid to the Company.

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2020

5. Fair Value Measurements

ASC 820 “Fair Value Measurements and Disclosures” provides a single definition of fair value for accounting purposes, establishes a consistent framework for measuring fair value, and expands disclosure requirements about fair value measurements. ASC 820 defines fair value as the value that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit value. An exit value is not a forced liquidation or distressed sale.

Following ASC 820 guidance, the Account has categorized its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Account’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:

• Level 1 – Fair value measurements that reflect unadjusted, quoted prices in active markets for identical assets and liabilities that the Account has the ability to access at the measurement date.

• Level 2 – Fair value measurements using inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

• Level 3 – Fair value measurements using significant non market observable inputs.

All of the Account’s sub-accounts’ investments in a Portfolio of the Trust were valued at the reported net asset value of the Portfolio and categorized as Level 1 as of December 31, 2020. The following table presents the Account’s assets that are measured at fair value on a recurring basis by fair value hierarchy level under ASC 820, as of December 31, 2020:

	Level 1		Level 2		Level 3		Total
Mutual Funds
Affiliated	$	5,946,894,997		-		-		5,946,894,997
Non Affiliated	$	107,045,374		-		-		107,045,374
Total	$	6,053,940,371		-		-		6,053,940,371

Assets owned by the Account are primarily open-ended mutual fund investments issued by the Trust. These are classified within Level 1, as fair values of the underlying funds are based upon reported net asset values (“NAV”), which represent the values at which each sub-account can redeem its investments.

Changes in valuation techniques may result in transfer in or out of an assigned level within the disclosure hierarchy. Transfers between investment levels may occur as the availability of a price source or data used in an investment’s valuation changes. Transfers between investment levels are recognized at the beginning of the reporting period. There have been no transfers between any level of fair value measurements during the period ended December 31, 2020.

57 of 69

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2020

6. Purchases and Sales of Investments

The cost of purchases including reinvestment of dividend distributions and proceeds from the sales of investments in the Portfolios of the Trust and Non-affiliated Trusts during 2020 were as follows:

Sub-Account	Purchases		Sales
500 Index Fund Series NAV	$	79,249,575	$	65,269,446
Active Bond Trust Series I		1,846,322		3,035,852
Active Bond Trust Series NAV		6,478,647		4,314,598
American Asset Allocation Trust Series I		36,961,991		12,868,836
American Global Growth Trust Series I		7,795,444		2,890,643
American Growth Trust Series I		31,166,663		16,727,384
American Growth-Income Trust Series I		26,573,466		11,889,568
American International Trust Series I		21,099,133		9,005,876
Blue Chip Growth Trust Series I		9,932,033		7,404,593
Blue Chip Growth Trust Series NAV		38,474,349		17,948,403
Capital Appreciation Trust Series I		7,788,310		5,319,808
Capital Appreciation Trust Series NAV		25,215,375		26,330,308
Capital Appreciation Value Trust Series I		1,684,833		3,016,856
Capital Appreciation Value Trust Series NAV		33,331,462		14,013,338
Core Bond Trust Series I		2,905,928		2,860,238
Core Bond Trust Series NAV		15,269,613		9,902,738
Disciplined Value International Trust Series I		963,946		2,217,824
Disciplined Value International Trust Series NAV		6,855,629		5,358,904
Emerging Markets Value Trust Series I		484,051		521,037
Emerging Markets Value Trust Series NAV		10,737,964		11,249,702
Equity Income Trust Series I		5,432,891		7,132,208
Equity Income Trust Series NAV		26,866,571		15,957,316
Financial Industries Trust Series I		296,075		857,825
Financial Industries Trust Series NAV		2,880,061		2,216,464
Fundamental All Cap Core Trust Series I		285,444		166,478
Fundamental All Cap Core Trust Series NAV		3,537,081		2,556,601
Fundamental Large Cap Value Trust Series I		1,552,613		5,864,486
Fundamental Large Cap Value Trust Series NAV		10,607,531		7,419,401
Global Trust Series I		641,533		1,320,604
Global Trust Series NAV		3,437,735		3,575,388
Health Sciences Trust Series I		4,107,723		4,664,806
Health Sciences Trust Series NAV		16,138,311		8,101,763
High Yield Trust Series I		1,050,136		1,517,294
High Yield Trust Series NAV		15,472,853		16,719,479
International Equity Index Series I		1,968,148		1,699,923
International Equity Index Series NAV		19,817,880		16,927,165
International Small Company Trust Series I		514,725		543,700
International Small Company Trust Series NAV		6,480,230		6,288,300
Investment Quality Bond Trust Series I		3,342,966		3,478,701
Investment Quality Bond Trust Series NAV		12,842,019		8,076,753
Lifestyle Aggressive Portfolio Series NAV		6,799,957		5,030,610
Lifestyle Balanced Portfolio Series NAV		23,188,521		8,352,227
Lifestyle Conservative Portfolio Series NAV		4,906,900		2,179,573
Lifestyle Growth Portfolio Series I		121,225		112,181
Lifestyle Growth Portfolio Series NAV		62,306,554		26,288,496
Lifestyle Moderate Portfolio Series NAV		7,910,094		4,773,378
M Capital Appreciation		5,336,033		1,985,847
M International Equity		1,550,547		1,113,694
M Large Cap Growth		4,729,506		5,407,278

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2020

6. Purchases and Sales of Investments (continued):

Sub-Account	Purchases		Sales
M Large Cap Value	$	2,877,526	$	1,904,568
Managed Volatility Aggressive Portfolio Series I		668,372		633,068
Managed Volatility Aggressive Portfolio Series NAV		15,001,113		15,941,909
Managed Volatility Balanced Portfolio Series I		5,146,705		4,391,914
Managed Volatility Balanced Portfolio Series NAV		54,051,476		25,584,012
Managed Volatility Conservative Portfolio Series I		343,887		588,024
Managed Volatility Conservative Portfolio Series NAV		4,513,856		3,557,629
Managed Volatility Growth Portfolio Series I		6,209,795		5,771,835
Managed Volatility Growth Portfolio Series NAV		76,160,476		54,639,559
Managed Volatility Moderate Portfolio Series I		1,132,386		1,290,725
Managed Volatility Moderate Portfolio Series NAV		13,341,825		7,544,137
Mid Cap Index Trust Series I		3,415,459		2,484,603
Mid Cap Index Trust Series NAV		24,297,127		14,976,195
Mid Cap Stock Trust Series I		5,446,350		5,634,235
Mid Cap Stock Trust Series NAV		24,612,495		20,445,825
Mid Value Trust Series I		702,870		1,346,396
Mid Value Trust Series NAV		5,405,169		5,240,828
Money Market Trust Series I		15,684,925		13,792,600
Money-Market Trust Series NAV		193,852,982		157,690,180
Opportunistic Fixed Income Trust Series I		487,843		716,662
Opportunistic Fixed Income Trust Series NAV		6,368,916		10,382,925
PIMCO All Asset		3,943,167		6,253,391
Real Estate Securities Trust Series I		5,288,995		3,692,131
Real Estate Securities Trust Series NAV		19,320,782		10,494,418
Science & Technology Trust Series I		5,525,267		5,462,513
Science & Technology Trust Series NAV		18,148,642		9,974,019
Select Bond Trust Series I		1,609,235		1,297,325
Select Bond Trust Series NAV		4,595,059		3,110,758
Short Term Government Income Trust Series I		6,053,884		5,455,872
Short Term Government Income Trust Series NAV		9,837,856		9,152,319
Small Cap Index Trust Series I		1,287,065		2,052,489
Small Cap Index Trust Series NAV		13,559,429		7,419,104
Small Cap Opportunities Trust Series I		1,965,882		2,735,494
Small Cap Opportunities Trust Series NAV		4,336,585		2,770,586
Small Cap Stock Trust Series I		3,281,776		550,117
Small Cap Stock Trust Series NAV		10,980,944		6,507,302
Small Cap Value Trust Series I		470,830		594,569
Small Cap Value Trust Series NAV		13,930,045		4,313,724
Small Company Value Trust Series I		1,462,287		1,855,341
Small Company Value Trust Series NAV		9,371,209		3,596,572
Strategic Income Opportunities Trust Series I		608,590		880,417
Strategic Income Opportunities Trust Series NAV		5,958,634		4,170,543
Total Bond Market Series Trust NAV		14,229,602		5,330,219
Total Stock Market Index Trust Series I		3,990,012		3,480,550
Total Stock Market Index Trust Series NAV		24,862,370		13,817,307
Ultra Short Term Bond Trust Series I		334,086		221,894
Ultra Short Term Bond Trust Series NAV		3,549,266		2,853,259

59 of 69

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2020

7. Unit Values

A summary of unit values and units outstanding for variable life contracts and the expense and income ratios, excluding expenses of the underlying Portfolios, were as follows:

	At December 31,				For the years and periods ended December 31,
Sub-account	Year	Units (000s)	Unit Fair Value Highest to Lowest (a)	Assets (000s)	Expense Ratio Highest to Lowest (b)	Investment Income Ratio (c)	Total Return Highest to Lowest (d)
500 Index Fund Series NAV(*)	2020	6,767	$ 86.62 to $ 54.15	$ 528,653	0.00 % to 0.00 %	1.89 %	18.14 % to 18.14 %
	2019	6,833	73.32 to 45.84	448,386	0.00 to 0.00	1.79	31.16 to 31.16
	2018	6,704	55.90 to 34.95	333,002	0.00 to 0.00	1.40	-4.64 to -4.65
	2017	6,784	58.62 to 36.65	348,722	0.00 to 0.00	1.83	21.54 to 9.98
	2016	6,586	48.23 to 30.16	273,254	0.00 to 0.00	1.96	11.64 to 11.64
Active Bond Trust Series I(*)	2020	295	28.22 to 28.22	8,320	0.00 to 0.00	2.95	8.79 to 8.79
	2019	348	25.94 to 25.94	9,033	0.00 to 0.00	2.87	9.26 to 9.26
	2018	297	23.74 to 23.74	7,043	0.00 to 0.00	3.36	-0.60 to -0.60
	2017	271	23.89 to 23.89	6,472	0.00 to 0.00	3.44	4.84 to 4.84
	2016	329	22.78 to 22.78	7,491	0.00 to 0.00	3.82	4.34 to 4.34
Active Bond Trust Series NAV(*)	2020	378	92.17 to 92.17	34,836	0.00 to 0.00	3.07	8.73 to 8.73
	2019	366	84.77 to 84.77	31,011	0.00 to 0.00	2.93	9.29 to 9.29
	2018	329	77.56 to 77.56	25,502	0.00 to 0.00	3.23	-0.55 to -0.55
	2017	339	77.99 to 77.99	26,438	0.00 to 0.00	3.66	4.89 to 1.36
	2016	301	74.36 to 74.36	22,366	0.00 to 0.00	3.88	4.50 to 4.50
American Asset Allocation Trust Series I(*)	2020	7,271	24.97 to 24.97	181,554	0.00 to 0.00	1.41	12.02 to 12.02
	2019	7,175	22.29 to 22.29	159,924	0.00 to 0.00	1.41	20.78 to 20.78
	2018	6,966	18.46 to 18.46	128,553	0.00 to 0.00	1.68	-4.91 to -4.91
	2017	6,625	19.41 to 19.41	128,577	0.00 to 0.00	1.29	15.79 to 6.32
	2016	6,029	16.76 to 16.76	101,053	0.00 to 0.00	1.40	8.99 to 8.99
American Global Growth Trust Series I(*)	2020	869	32.61 to 32.61	28,350	0.00 to 0.00	0.07	29.96 to 29.96
	2019	771	25.09 to 25.09	19,344	0.00 to 0.00	0.67	34.71 to 34.71
	2018	694	18.63 to 18.63	12,930	0.00 to 0.00	0.66	-9.37 to -9.37
	2017	721	20.55 to 20.55	14,814	0.00 to 0.00	0.28	30.92 to 9.48
	2016	588	15.70 to 15.70	9,238	0.00 to 0.00	1.06	0.29 to 0.29
American Growth Trust Series I(*)	2020	2,158	92.82 to 61.65	143,899	0.00 to 0.00	0.09	51.52 to 51.52
	2019	2,167	61.26 to 40.69	95,558	0.00 to 0.00	0.82	30.30 to 30.30
	2018	2,307	47.01 to 31.23	78,465	0.00 to 0.00	0.38	-0.66 to -0.66
	2017	2,412	47.32 to 31.43	83,786	0.00 to 0.00	0.37	27.87 to 10.07
	2016	2,457	37.01 to 24.58	66,671	0.00 to 0.00	0.40	9.08 to 9.07
American Growth-Income Trust Series I(*)	2020	3,202	56.83 to 38.08	138,358	0.00 to 0.00	1.39	13.11 to 13.11
	2019	3,279	50.25 to 33.66	126,148	0.00 to 0.00	1.58	25.70 to 25.70
	2018	3,246	39.97 to 26.78	100,732	0.00 to 0.00	1.38	-2.18 to -2.18
	2017	3,585	40.87 to 27.38	113,859	0.00 to 0.00	1.10	22.03 to 10.24
	2016	3,612	33.49 to 22.44	94,504	0.00 to 0.00	1.67	11.10 to 11.10
American International Trust Series I(*)	2020	2,777	50.02 to 28.41	84,564	0.00 to 0.00	0.40	13.56 to 13.55
	2019	2,401	44.04 to 25.02	64,921	0.00 to 0.00	0.99	22.40 to 22.40
	2018	2,328	35.98 to 20.44	51,790	0.00 to 0.00	2.82	-13.46 to -13.46
	2017	2,135	41.58 to 23.62	55,579	0.00 to 0.00	0.95	31.65 to 10.60
	2016	2,058	31.58 to 17.94	41,108	0.00 to 0.00	1.03	3.12 to 3.12
Blue Chip Growth Trust Series I(*)	2020	392	136.22 to 136.22	53,438	0.00 to 0.00	0.00	34.30 to 34.30
	2019	429	101.43 to 101.43	43,490	0.00 to 0.00	0.00	29.80 to 29.80
	2018	488	78.14 to 78.14	38,127	0.00 to 0.00	0.02	1.97 to 1.97
	2017	556	76.63 to 76.63	42,578	0.00 to 0.00	0.07	36.28 to 36.28
	2016	616	56.23 to 56.23	34,610	0.00 to 0.00	0.01	0.81 to 0.81
Blue Chip Growth Trust Series NAV(*)	2020	488	332.65 to 332.65	162,497	0.00 to 0.00	0.00	34.40 to 34.40
	2019	486	247.50 to 247.50	120,365	0.00 to 0.00	0.01	29.83 to 29.83
	2018	478	190.64 to 190.64	91,092	0.00 to 0.00	0.06	2.03 to 2.03
	2017	464	186.84 to 186.84	86,650	0.00 to 0.00	0.12	36.34 to 13.00
	2016	457	137.04 to 137.04	62,639	0.00 to 0.00	0.05	0.85 to 0.85
Capital Appreciation Trust Series I(*)	2020	610	76.72 to 76.72	46,776	0.00 to 0.00	0.00	56.04 to 56.04
	2019	635	49.17 to 49.17	31,227	0.00 to 0.00	0.04	32.89 to 32.89
	2018	721	37.00 to 37.00	26,690	0.00 to 0.00	0.27	-0.80 to -0.80
	2017	791	37.30 to 37.30	29,496	0.00 to 0.00	0.06	36.53 to 36.53
	2016	863	27.32 to 27.32	23,584	0.00 to 0.00	0.00	-1.08 to -1.08
Capital Appreciation Trust Series NAV(*)	2020	885	75.55 to 75.55	66,872	0.00 to 0.00	0.00	56.29 to 56.29
	2019	1,008	48.34 to 48.34	48,715	0.00 to 0.00	0.04	32.88 to 32.88
	2018	900	36.38 to 36.38	32,748	0.00 to 0.00	0.36	-0.72 to -0.72
	2017	877	36.64 to 36.64	32,135	0.00 to 0.00	0.11	36.51 to 14.35
	2016	812	26.84 to 26.84	21,802	0.00 to 0.00	0.01	-1.00 to -1.00
Capital Appreciation Value Trust Series I(*)	2020	151	33.57 to 33.57	5,061	0.00 to 0.00	0.98	17.40 to 17.40
	2019	220	28.60 to 28.60	6,282	0.00 to 0.00	1.69	24.30 to 24.30
	2018	108	23.01 to 23.01	2,491	0.00 to 0.00	2.14	0.39 to 0.39
	2017	125	22.92 to 22.92	2,863	0.00 to 0.00	1.48	15.14 to 15.14
	2016	132	19.90 to 19.90	2,620	0.00 to 0.00	1.61	8.12 to 8.12

60 of 69

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2020

7. Unit Values (continued):

	At December 31,				For the years and periods ended December 31,
Sub-account	Year	Units (000s)	Unit Fair Value Highest to Lowest (a)	Assets (000s)	Expense Ratio Highest to Lowest (b)	Investment Income Ratio (c)	Total Return Highest to Lowest (d)
Capital Appreciation Value Trust Series NAV(*)	2020	3,910	$ 33.74 to $ 33.74	$ 131,932	0.00 % to 0.00 %	1.17 %	17.41 % to 17.41 %
	2019	3,634	28.74 to 28.74	104,442	0.00 to 0.00	1.54	24.44 to 24.44
	2018	3,058	23.09 to 23.09	70,629	0.00 to 0.00	2.26	0.45 to 0.45
	2017	3,101	22.99 to 22.99	71,301	0.00 to 0.00	1.57	15.13 to 4.72
	2016	2,711	19.97 to 19.97	54,138	0.00 to 0.00	1.58	8.19 to 8.19
Core Bond Trust Series I(*)	2020	635	25.24 to 25.24	16,021	0.00 to 0.00	2.34	8.62 to 8.62
	2019	649	23.23 to 23.23	15,080	0.00 to 0.00	2.39	8.32 to 8.32
	2018	719	21.45 to 21.45	15,421	0.00 to 0.00	2.39	-0.59 to -0.59
	2017	804	21.58 to 21.58	17,353	0.00 to 0.00	2.11	3.40 to 3.40
	2016	857	20.87 to 20.87	17,879	0.00 to 0.00	1.93	2.74 to 2.74
Core Bond Trust Series NAV(*)	2020	3,926	20.33 to 20.33	79,828	0.00 to 0.00	2.46	8.79 to 8.79
	2019	3,753	18.69 to 18.69	70,137	0.00 to 0.00	2.56	8.33 to 8.33
	2018	3,545	17.25 to 17.25	61,160	0.00 to 0.00	2.54	-0.54 to -0.54
	2017	3,874	17.35 to 17.35	67,203	0.00 to 0.00	2.24	3.47 to 0.84
	2016	3,635	16.76 to 16.76	60,928	0.00 to 0.00	2.10	2.73 to 2.73
Disciplined Value International Trust Series I(*)	2020	625	28.61 to 28.61	17,881	0.00 to 0.00	2.14	3.28 to 3.28
	2019	687	27.71 to 27.71	19,028	0.00 to 0.00	2.74	12.33 to 12.33
	2018	787	24.66 to 24.66	19,400	0.00 to 0.00	2.42	-15.03 to -15.03
	2017	866	29.03 to 29.03	25,121	0.00 to 0.00	1.77	17.14 to 17.14
	2016	1,005	24.78 to 24.78	24,904	0.00 to 0.00	3.47	12.24 to 12.24
Disciplined Value International Trust Series NAV(*)	2020	2,281	18.50 to 18.50	42,220	0.00 to 0.00	2.26	3.27 to 3.27
	2019	2,236	17.92 to 17.92	40,069	0.00 to 0.00	2.89	12.40 to 12.40
	2018	2,383	15.94 to 15.94	37,995	0.00 to 0.00	2.61	-14.96 to -14.96
	2017	2,312	18.75 to 18.75	43,337	0.00 to 0.00	1.94	17.25 to 5.47
	2016	2,242	15.99 to 15.99	35,853	0.00 to 0.00	3.12	12.20 to 12.20
Emerging Markets Value Trust Series I(*)	2020	279	17.74 to 17.74	4,954	0.00 to 0.00	2.52	3.56 to 3.56
	2019	286	17.13 to 17.13	4,903	0.00 to 0.00	3.01	10.94 to 10.94
	2018	328	15.44 to 15.44	5,070	0.00 to 0.00	2.56	-13.59 to -13.59
	2017	348	17.87 to 17.87	6,225	0.00 to 0.00	2.15	32.69 to 32.69
	2016	202	13.47 to 13.47	2,721	0.00 to 0.00	2.16	18.00 to 18.00
Emerging Markets Value Trust Series NAV(*)	2020	4,606	14.29 to 14.29	65,837	0.00 to 0.00	2.52	3.72 to 3.72
	2019	4,758	13.78 to 13.78	65,567	0.00 to 0.00	3.30	10.90 to 10.90
	2018	4,738	12.43 to 12.43	58,883	0.00 to 0.00	2.72	-13.48 to -13.48
	2017	4,325	14.36 to 14.36	62,118	0.00 to 0.00	2.07	32.67 to 13.66
	2016	2,747	10.83 to 10.83	29,733	0.00 to 0.00	2.26	18.09 to 18.09
Equity Income Trust Series I(*)	2020	562	68.42 to 68.42	38,420	0.00 to 0.00	3.00	1.02 to 1.02
	2019	645	67.73 to 67.73	43,686	0.00 to 0.00	2.15	26.34 to 26.34
	2018	628	53.61 to 53.61	33,645	0.00 to 0.00	1.81	-9.58 to -9.58
	2017	733	59.29 to 59.29	43,432	0.00 to 0.00	2.26	16.29 to 16.29
	2016	794	50.99 to 50.99	40,460	0.00 to 0.00	2.21	19.13 to 19.13
Equity Income Trust Series NAV(*)	2020	1,643	68.54 to 68.54	112,648	0.00 to 0.00	3.13	1.01 to 1.01
	2019	1,627	67.86 to 67.86	110,432	0.00 to 0.00	2.35	26.47 to 26.47
	2018	1,257	53.66 to 53.66	67,422	0.00 to 0.00	1.93	-9.52 to -9.52
	2017	1,270	59.30 to 59.30	75,291	0.00 to 0.00	2.32	16.28 to 9.05
	2016	1,360	51.00 to 51.00	69,339	0.00 to 0.00	2.35	19.18 to 19.18
Financial Industries Trust Series I(*)	2020	55	36.49 to 36.49	2,018	0.00 to 0.00	1.11	2.17 to 2.17
	2019	79	35.71 to 35.71	2,835	0.00 to 0.00	4.33	31.79 to 31.79
	2018	88	27.10 to 27.10	2,373	0.00 to 0.00	1.07	-14.49 to -14.49
	2017	108	31.69 to 31.69	3,411	0.00 to 0.00	1.12	15.29 to 15.29
	2016	163	27.49 to 27.49	4,468	0.00 to 0.00	1.40	19.37 to 19.37
Financial Industries Trust Series NAV(*)	2020	257	44.06 to 44.06	11,312	0.00 to 0.00	1.41	2.31 to 2.31
	2019	269	43.07 to 43.07	11,579	0.00 to 0.00	4.44	31.71 to 31.71
	2018	287	32.70 to 32.70	9,396	0.00 to 0.00	1.17	-14.38 to -14.38
	2017	312	38.19 to 38.19	11,918	0.00 to 0.00	1.31	15.29 to 9.22
	2016	300	33.13 to 33.13	9,927	0.00 to 0.00	1.56	19.47 to 19.47
Fundamental All Cap Core Trust Series I(*)	2020	21	78.90 to 78.90	1,679	0.00 to 0.00	0.41	26.88 to 26.88
	2019	20	62.18 to 62.18	1,229	0.00 to 0.00	0.43	36.45 to 36.45
	2018	22	45.57 to 45.57	1,023	0.00 to 0.00	0.41	-13.16 to -13.16
	2017	27	52.48 to 52.48	1,407	0.00 to 0.00	0.75	27.70 to 27.70
	2016	26	41.10 to 41.10	1,085	0.00 to 0.00	0.59	8.34 to 8.34
Fundamental All Cap Core Trust Series NAV(*)	2020	666	47.02 to 47.02	31,321	0.00 to 0.00	0.43	26.97 to 26.97
	2019	662	37.03 to 37.03	24,514	0.00 to 0.00	0.50	36.58 to 36.58
	2018	694	27.11 to 27.11	18,813	0.00 to 0.00	0.49	-13.16 to -13.16
	2017	618	31.22 to 31.22	19,288	0.00 to 0.00	0.81	27.77 to 14.16
	2016	599	24.44 to 24.44	14,635	0.00 to 0.00	0.70	8.40 to 8.40

61 of 69

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2020

7. Unit Values (continued):

	At December 31,				For the years and periods ended December 31,
Sub-account	Year	Units (000s)	Unit Fair Value Highest to Lowest (a)	Assets (000s)	Expense Ratio Highest to Lowest (b)	Investment Income Ratio (c)	Total Return Highest to Lowest (d)
Fundamental Large Cap Value Trust Series I(*)	2020	776	$ 45.79 to $ 45.79	$ 35,538	0.00 % to 0.00 %	1.09 %	11.96 % to 11.96 %
	2019	909	40.90 to 40.90	37,175	0.00 to 0.00	1.20	35.85 to 35.85
	2018	919	30.10 to 30.10	27,663	0.00 to 0.00	1.08	-17.03 to -17.03
	2017	1,021	36.28 to 36.28	37,050	0.00 to 0.00	1.60	17.43 to 17.43
	2016	1,166	30.90 to 30.90	36,042	0.00 to 0.00	2.24	10.17 to 10.17
Fundamental Large Cap Value Trust Series NAV(*)	2020	2,124	32.34 to 32.34	68,681	0.00 to 0.00	1.17	12.01 to 12.01
	2019	2,070	28.87 to 28.87	59,773	0.00 to 0.00	1.24	35.97 to 35.97
	2018	2,045	21.23 to 21.23	43,431	0.00 to 0.00	1.22	-17.03 to -17.03
	2017	1,874	25.59 to 25.59	47,967	0.00 to 0.00	1.72	17.54 to 9.65
	2016	1,861	21.77 to 21.77	40,527	0.00 to 0.00	2.31	10.21 to 10.21
Global Trust Series I(*)	2020	237	41.10 to 41.10	9,734	0.00 to 0.00	1.30	6.60 to 6.60
	2019	262	38.56 to 38.56	10,092	0.00 to 0.00	2.15	16.04 to 16.04
	2018	284	33.23 to 33.23	9,424	0.00 to 0.00	1.77	-14.49 to -14.49
	2017	313	38.86 to 38.86	12,176	0.00 to 0.00	1.91	18.88 to 18.88
	2016	335	32.69 to 32.69	10,956	0.00 to 0.00	4.53	9.46 to 9.46
Global Trust Series NAV(*)	2020	1,442	22.30 to 22.30	32,155	0.00 to 0.00	1.37	6.71 to 6.71
	2019	1,483	20.90 to 20.90	30,987	0.00 to 0.00	2.26	16.06 to 16.06
	2018	1,475	18.01 to 18.01	26,553	0.00 to 0.00	1.86	-14.42 to -14.42
	2017	1,515	21.04 to 21.04	31,879	0.00 to 0.00	1.96	18.90 to 7.34
	2016	1,558	17.70 to 17.70	27,563	0.00 to 0.00	4.64	9.46 to 9.46
Health Sciences Trust Series I(*)	2020	95	146.19 to 146.19	13,948	0.00 to 0.00	0.00	27.17 to 27.17
	2019	108	114.96 to 114.96	12,459	0.00 to 0.00	0.00	28.68 to 28.68
	2018	131	89.34 to 89.34	11,663	0.00 to 0.00	0.00	0.69 to 0.69
	2017	156	88.73 to 88.73	13,855	0.00 to 0.00	0.00	27.51 to 27.51
	2016	139	69.59 to 69.59	9,670	0.00 to 0.00	0.06	-10.57 to -10.57
Health Sciences Trust Series NAV(*)	2020	626	114.29 to 114.29	71,507	0.00 to 0.00	0.00	27.26 to 27.26
	2019	611	89.80 to 89.80	54,880	0.00 to 0.00	0.00	28.67 to 28.67
	2018	636	69.79 to 69.79	44,387	0.00 to 0.00	0.00	0.76 to 0.76
	2017	607	69.27 to 69.27	42,047	0.00 to 0.00	0.00	27.61 to 8.33
	2016	636	54.28 to 54.28	34,511	0.00 to 0.00	0.11	-10.54 to -10.54
High Yield Trust Series I(*)	2020	180	43.53 to 43.53	7,857	0.00 to 0.00	6.32	5.81 to 5.81
	2019	204	41.14 to 41.14	8,406	0.00 to 0.00	5.24	15.66 to 15.66
	2018	312	35.57 to 35.57	11,108	0.00 to 0.00	5.98	-3.01 to -3.01
	2017	366	36.68 to 36.68	13,429	0.00 to 0.00	5.49	7.50 to 7.50
	2016	376	34.12 to 34.12	12,841	0.00 to 0.00	6.98	16.26 to 16.26
High Yield Trust Series NAV(*)	2020	1,285	28.85 to 28.85	37,076	0.00 to 0.00	6.29	5.77 to 5.77
	2019	1,400	27.28 to 27.28	38,188	0.00 to 0.00	5.71	15.99 to 15.99
	2018	1,301	23.52 to 23.52	30,597	0.00 to 0.00	6.20	-3.02 to -3.02
	2017	1,313	24.25 to 24.25	31,838	0.00 to 0.00	5.67	7.46 to 2.50
	2016	1,277	22.57 to 22.57	28,818	0.00 to 0.00	7.22	16.56 to 16.56
International Equity Index Series I(*)	2020	967	16.72 to 16.72	16,168	0.00 to 0.00	2.52	10.64 to 10.64
	2019	993	15.11 to 15.11	15,011	0.00 to 0.00	2.54	21.37 to 21.37
	2018	905	12.45 to 12.45	11,271	0.00 to 0.00	2.25	-14.10 to -14.10
	2017	1,025	14.49 to 14.49	14,855	0.00 to 0.00	2.23	27.30 to 27.30
	2016	983	11.39 to 11.39	11,186	0.00 to 0.00	2.65	4.45 to 4.45
International Equity Index Series NAV(*)	2020	1,777	65.78 to 65.78	116,910	0.00 to 0.00	2.59	10.76 to 10.76
	2019	1,786	59.39 to 59.39	106,080	0.00 to 0.00	2.66	21.44 to 21.44
	2018	1,515	48.91 to 48.91	74,077	0.00 to 0.00	2.50	-14.10 to -14.10
	2017	1,283	56.94 to 56.94	73,049	0.00 to 0.00	2.33	27.45 to 10.35
	2016	1,121	44.68 to 44.68	50,084	0.00 to 0.00	2.77	4.43 to 4.43
International Small Company Trust Series I(*)	2020	285	21.76 to 21.76	6,206	0.00 to 0.00	2.09	8.37 to 8.37
	2019	302	20.08 to 20.08	6,060	0.00 to 0.00	2.19	22.60 to 22.60
	2018	328	16.38 to 16.38	5,370	0.00 to 0.00	1.09	-20.10 to -20.10
	2017	457	20.50 to 20.50	9,371	0.00 to 0.00	1.48	29.45 to 29.45
	2016	373	15.83 to 15.83	5,904	0.00 to 0.00	2.13	4.90 to 4.90
International Small Company Trust Series NAV(*)	2020	1,513	21.89 to 21.89	33,125	0.00 to 0.00	2.16	8.41 to 8.41
	2019	1,597	20.19 to 20.19	32,237	0.00 to 0.00	2.37	22.71 to 22.71
	2018	1,548	16.45 to 16.45	25,468	0.00 to 0.00	1.26	-20.07 to -20.07
	2017	1,417	20.59 to 20.59	29,174	0.00 to 0.00	1.52	29.59 to 11.75
	2016	1,306	15.89 to 15.89	20,743	0.00 to 0.00	2.04	4.95 to 4.95
Investment Quality Bond Trust Series I(*)	2020	243	43.48 to 43.48	10,548	0.00 to 0.00	2.24	9.37 to 9.37
	2019	253	39.75 to 39.75	10,048	0.00 to 0.00	2.59	9.37 to 9.37
	2018	258	36.35 to 36.35	9,363	0.00 to 0.00	2.70	-0.82 to -0.82
	2017	280	36.65 to 36.65	10,249	0.00 to 0.00	2.62	4.61 to 4.61
	2016	297	35.03 to 35.03	10,410	0.00 to 0.00	2.27	4.29 to 4.29

62 of 69

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2020

7. Unit Values (continued):

	At December 31,				For the years and periods ended December 31,
Sub-account	Year	Units (000s)	Unit Fair Value Highest to Lowest (a)	Assets (000s)	Expense Ratio Highest to Lowest (b)	Investment Income Ratio (c)	Total Return Highest to Lowest (d)
Investment Quality Bond Trust Series NAV(*)	2020	1,442	$ 20.59 to $ 20.59	$ 29,698	0.00 % to 0.00 %	2.39 %	9.45 % to 9.45 %
	2019	1,235	18.81 to 18.81	23,233	0.00 to 0.00	2.77	9.35 to 9.35
	2018	1,033	17.20 to 17.20	17,772	0.00 to 0.00	2.84	-0.67 to -0.67
	2017	967	17.32 to 17.32	16,752	0.00 to 0.00	2.90	4.67 to 1.34
	2016	763	16.55 to 16.55	12,629	0.00 to 0.00	2.51	4.26 to 4.26
Lifestyle Aggressive Portfolio Series NAV(*)	2020	851	18.78 to 18.78	15,982	0.00 to 0.00	2.19	14.11 to 14.11
	2019	811	16.45 to 16.45	13,349	0.00 to 0.00	1.57	27.16 to 27.16
	2018	814	12.94 to 12.94	10,528	0.00 to 0.00	2.30	-8.87 to -8.87
	2017	455	14.20 to 14.20	6,467	0.00 to 0.00	2.07	21.85 to 21.85
	2016	196	11.65 to 11.65	2,279	0.00 to 0.00	2.87	9.59 to 9.59
Lifestyle Balanced Portfolio Series NAV(*)	2020	7,017	16.26 to 16.26	114,085	0.00 to 0.00	2.79	12.68 to 12.68
	2019	6,441	14.43 to 14.43	92,933	0.00 to 0.00	2.15	17.89 to 17.89
	2018	5,873	12.24 to 12.24	71,880	0.00 to 0.00	2.61	-3.29 to -4.39
	2017	5,051	12.80 to 12.80	64,648	0.00 to 0.00	2.54	12.38 to 4.70
	2016	4,011	11.39 to 11.39	45,689	0.00 to 0.00	2.94	6.17 to 6.17
Lifestyle Conservative Portfolio Series NAV(*)	2020	477	14.49 to 14.49	6,915	0.00 to 0.00	4.39	10.81 to 10.81
	2019	306	13.08 to 13.08	3,999	0.00 to 0.00	2.13	12.52 to 12.52
	2018	364	11.62 to 11.62	4,235	0.00 to 0.00	2.83	-0.28 to -1.92
	2017	304	11.85 to 11.85	3,601	0.00 to 0.00	2.85	7.01 to 2.40
	2016	258	11.07 to 11.07	2,857	0.00 to 0.00	5.16	4.36 to 4.36
Lifestyle Growth Portfolio Series I(*)	2020	82	15.34 to 15.34	1,265	0.00 to 0.00	2.48	13.58 to 13.58
	2019	89	13.51 to 13.51	1,202	0.00 to 0.00	1.79	21.45 to 21.45
	2018	100	11.12 to 11.12	1,107	0.00 to 0.00	1.83	-6.11 to -6.11
	2017	133	11.85 to 11.85	1,580	0.00 to 0.00	4.18	16.14 to 16.14
	2016	49	10.20 to 10.20	501	0.00 to 0.00	9.77	1.99 to 1.99
Lifestyle Growth Portfolio Series NAV(*)	2020	24,463	17.46 to 17.46	427,169	0.00 to 0.00	2.61	13.64 to 13.64
	2019	24,103	15.37 to 15.37	370,380	0.00 to 0.00	1.94	21.52 to 21.52
	2018	24,249	12.64 to 12.64	306,636	0.00 to 0.00	2.29	-6.07 to -6.07
	2017	23,203	13.46 to 13.46	312,362	0.00 to 0.00	3.90	16.20 to 6.72
	2016	8,684	11.59 to 11.59	100,607	0.00 to 0.00	3.93	7.22 to 1.99
Lifestyle Moderate Portfolio Series NAV(*)	2020	2,075	15.66 to 15.66	32,495	0.00 to 0.00	2.88	12.22 to 12.22
	2019	1,985	13.96 to 13.96	27,703	0.00 to 0.00	2.27	15.95 to 15.95
	2018	1,776	12.04 to 12.04	21,382	0.00 to 0.00	2.73	-2.24 to -3.53
	2017	1,505	12.48 to 12.48	18,784	0.00 to 0.00	2.71	10.56 to 3.93
	2016	1,181	11.29 to 11.29	13,334	0.00 to 0.00	3.26	5.54 to 5.54
M Capital Appreciation	2020	161	149.12 to 149.12	24,015	0.00 to 0.00	0.00	17.73 to 17.73
	2019	134	126.67 to 126.67	16,921	0.00 to 0.00	0.33	28.85 to 28.85
	2018	136	98.31 to 98.31	13,343	0.00 to 0.00	0.29	-14.15 to -14.15
	2017	141	114.51 to 114.51	16,198	0.00 to 0.00	0.00	19.02 to 19.02
	2016	151	96.21 to 96.21	14,508	0.00 to 0.00	0.00	21.06 to 21.06
M International Equity	2020	289	40.96 to 40.96	11,819	0.00 to 0.00	1.77	8.90 to 8.90
	2019	281	37.62 to 37.62	10,564	0.00 to 0.00	2.95	20.32 to 20.32
	2018	253	31.26 to 31.26	7,897	0.00 to 0.00	1.24	-20.57 to -20.57
	2017	371	39.36 to 39.36	14,614	0.00 to 0.00	1.70	24.05 to 5.64
	2016	368	31.73 to 31.73	11,682	0.00 to 0.00	1.14	-0.05 to -0.05
M Large Cap Growth	2020	190	122.39 to 122.39	23,305	0.00 to 0.00	0.00	28.89 to 28.89
	2019	223	94.95 to 94.95	21,214	0.00 to 0.00	0.00	36.09 to 36.09
	2018	226	69.77 to 69.77	15,767	0.00 to 0.00	0.00	-4.95 to -4.95
	2017	218	73.41 to 73.41	15,980	0.00 to 0.00	0.00	38.97 to 38.97
	2016	237	52.82 to 52.82	12,511	0.00 to 0.00	0.00	-2.32 to -2.32
M Large Cap Value	2020	499	30.91 to 30.91	15,419	0.00 to 0.00	2.12	-3.16 to -3.16
	2019	479	31.92 to 31.92	15,300	0.00 to 0.00	1.80	21.51 to 21.51
	2018	470	26.27 to 26.27	12,335	0.00 to 0.00	1.49	-12.07 to -12.07
	2017	456	29.87 to 29.87	13,609	0.00 to 0.00	1.52	14.99 to 14.99
	2016	451	25.98 to 25.98	11,704	0.00 to 0.00	2.03	9.64 to 9.64
Managed Volatility Aggressive Portfolio Series I(*)	2020	345	38.68 to 38.68	13,336	0.00 to 0.00	1.51	-4.75 to -4.75
	2019	353	40.61 to 40.61	14,332	0.00 to 0.00	1.34	20.78 to 20.78
	2018	374	33.62 to 33.62	12,566	0.00 to 0.00	2.01	-8.46 to -8.46
	2017	390	36.73 to 36.73	14,339	0.00 to 0.00	1.70	22.82 to 22.82
	2016	451	29.91 to 29.91	13,493	0.00 to 0.00	1.67	1.95 to 1.95
Managed Volatility Aggressive Portfolio Series NAV(*)	2020	8,165	23.23 to 23.23	189,669	0.00 to 0.00	1.55	-4.80 to -4.80
	2019	8,440	24.40 to 24.40	205,955	0.00 to 0.00	1.42	20.82 to 20.82
	2018	8,655	20.19 to 20.19	174,787	0.00 to 0.00	2.09	-8.32 to -8.32
	2017	8,724	22.03 to 22.03	192,188	0.00 to 0.00	1.83	22.88 to 9.63
	2016	9,109	17.93 to 17.93	163,300	0.00 to 0.00	1.71	1.89 to 1.89

63 of 69

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2020

7. Unit Values (continued):

	At December 31,				For the years and periods ended December 31,
Sub-account	Year	Units (000s)	Unit Fair Value Highest to Lowest (a)	Assets (000s)	Expense Ratio Highest to Lowest (b)	Investment Income Ratio (c)	Total Return Highest to Lowest (d)
Managed Volatility Balanced Portfolio Series I(*)	2020	1,178	$ 47.19 to $ 47.19	$ 55,591	0.00 % to 0.00 %	2.51 %	1.81 % to 1.81 %
	2019	1,257	46.35 to 46.35	58,260	0.00 to 0.00	2.01	17.92 to 17.92
	2018	1,333	39.31 to 39.31	52,411	0.00 to 0.00	2.21	-4.88 to -4.88
	2017	1,500	41.33 to 41.33	62,006	0.00 to 0.00	2.26	14.13 to 14.13
	2016	1,543	36.21 to 36.21	55,881	0.00 to 0.00	2.05	4.79 to 4.79
Managed Volatility Balanced Portfolio Series NAV(*)	2020	20,346	23.52 to 23.52	478,629	0.00 to 0.00	2.63	1.77 to 1.77
	2019	20,699	23.11 to 23.11	478,462	0.00 to 0.00	2.07	18.02 to 18.02
	2018	21,264	19.58 to 19.58	416,483	0.00 to 0.00	2.38	-4.82 to -4.82
	2017	21,747	20.58 to 20.58	447,517	0.00 to 0.00	2.28	14.15 to 5.83
	2016	22,207	18.02 to 18.02	400,325	0.00 to 0.00	2.20	4.91 to 4.91
Managed Volatility Conservative Portfolio Series I(*)	2020	56	45.37 to 45.37	2,521	0.00 to 0.00	2.92	3.39 to 3.39
	2019	64	43.88 to 43.88	2,799	0.00 to 0.00	2.28	13.38 to 13.38
	2018	74	38.70 to 38.70	2,870	0.00 to 0.00	2.47	-2.18 to -2.18
	2017	84	39.56 to 39.56	3,314	0.00 to 0.00	2.44	7.82 to 7.82
	2016	90	36.69 to 36.69	3,292	0.00 to 0.00	2.24	4.58 to 4.58
Managed Volatility Conservative Portfolio Series NAV(*)	2020	1,716	21.28 to 21.28	36,518	0.00 to 0.00	3.15	3.43 to 3.43
	2019	1,744	20.58 to 20.58	35,895	0.00 to 0.00	2.48	13.51 to 13.51
	2018	1,822	18.13 to 18.13	33,036	0.00 to 0.00	2.64	-2.21 to -2.21
	2017	1,904	18.54 to 18.54	35,299	0.00 to 0.00	2.57	7.94 to 2.95
	2016	1,978	17.17 to 17.17	33,973	0.00 to 0.00	2.41	4.53 to 4.53
Managed Volatility Growth Portfolio Series I(*)	2020	1,494	43.31 to 43.31	64,692	0.00 to 0.00	2.18	-1.42 to -1.42
	2019	1,605	43.93 to 43.93	70,513	0.00 to 0.00	1.71	19.56 to 19.56
	2018	1,771	36.75 to 36.75	65,071	0.00 to 0.00	2.11	-6.54 to -6.54
	2017	1,865	39.32 to 39.32	73,320	0.00 to 0.00	1.96	18.58 to 18.58
	2016	2,108	33.16 to 33.16	69,872	0.00 to 0.00	1.82	3.34 to 3.34
Managed Volatility Growth Portfolio Series NAV(*)	2020	27,393	23.28 to 23.28	637,831	0.00 to 0.00	2.23	-1.37 to -1.37
	2019	28,696	23.61 to 23.61	677,425	0.00 to 0.00	1.82	19.68 to 19.68
	2018	29,490	19.72 to 19.72	581,696	0.00 to 0.00	2.19	-6.56 to -6.56
	2017	30,337	21.11 to 21.11	640,384	0.00 to 0.00	2.10	18.71 to 7.84
	2016	30,781	17.78 to 17.78	547,356	0.00 to 0.00	1.95	3.38 to 3.38
Managed Volatility Moderate Portfolio Series I(*)	2020	275	48.52 to 48.52	13,328	0.00 to 0.00	2.71	3.31 to 3.31
	2019	300	46.97 to 46.97	14,073	0.00 to 0.00	2.14	16.72 to 16.72
	2018	314	40.24 to 40.24	12,647	0.00 to 0.00	2.40	-3.98 to -3.98
	2017	342	41.91 to 41.91	14,344	0.00 to 0.00	2.30	11.88 to 11.88
	2016	364	37.46 to 37.46	13,629	0.00 to 0.00	2.13	5.30 to 5.30
Managed Volatility Moderate Portfolio Series NAV(*)	2020	4,546	23.41 to 23.41	106,414	0.00 to 0.00	2.80	3.28 to 3.28
	2019	4,625	22.67 to 22.67	104,848	0.00 to 0.00	2.20	16.85 to 16.85
	2018	4,706	19.40 to 19.40	91,292	0.00 to 0.00	2.39	-3.93 to -3.93
	2017	5,140	20.19 to 20.19	103,792	0.00 to 0.00	2.62	12.02 to 4.82
	2016	4,728	18.03 to 18.03	85,239	0.00 to 0.00	2.23	5.25 to 5.25
Mid Cap Index Trust Series I(*)	2020	381	71.78 to 71.78	27,371	0.00 to 0.00	1.61	13.22 to 13.22
	2019	414	63.41 to 63.41	26,239	0.00 to 0.00	1.12	25.59 to 25.59
	2018	471	50.49 to 50.49	23,800	0.00 to 0.00	1.09	-11.46 to -11.46
	2017	517	57.02 to 57.02	29,470	0.00 to 0.00	0.59	15.81 to 15.81
	2016	322	49.24 to 49.24	15,865	0.00 to 0.00	1.16	20.11 to 20.11
Mid Cap Index Trust Series NAV(*)	2020	1,898	47.21 to 47.21	89,597	0.00 to 0.00	1.67	13.27 to 13.27
	2019	1,869	41.68 to 41.68	77,917	0.00 to 0.00	1.23	25.72 to 25.72
	2018	1,815	33.16 to 33.16	60,187	0.00 to 0.00	1.18	-11.45 to -11.45
	2017	1,805	37.45 to 37.45	67,589	0.00 to 0.00	0.60	15.86 to 8.44
	2016	1,331	32.32 to 32.32	43,027	0.00 to 0.00	1.33	20.17 to 20.17
Mid Cap Stock Trust Series I(*)	2020	349	98.79 to 98.79	34,441	0.00 to 0.00	0.00	65.39 to 65.39
	2019	404	59.73 to 59.73	24,126	0.00 to 0.00	0.00	34.53 to 34.53
	2018	441	44.40 to 44.40	19,577	0.00 to 0.00	0.00	-1.56 to -1.56
	2017	476	45.10 to 45.10	21,464	0.00 to 0.00	0.00	28.54 to 28.54
	2016	522	35.09 to 35.09	18,317	0.00 to 0.00	0.00	0.59 to 0.59
Mid Cap Stock Trust Series NAV(*)	2020	349	215.62 to 215.62	75,352	0.00 to 0.00	0.00	65.47 to 65.47
	2019	377	130.31 to 130.31	49,090	0.00 to 0.00	0.00	34.64 to 34.64
	2018	356	96.79 to 96.79	34,453	0.00 to 0.00	0.00	-1.54 to -1.54
	2017	314	98.30 to 98.30	30,903	0.00 to 0.00	0.00	28.66 to 8.17
	2016	321	76.41 to 76.41	24,502	0.00 to 0.00	0.00	0.58 to 0.58
Mid Value Trust Series I(*)	2020	291	40.50 to 40.50	11,787	0.00 to 0.00	1.69	9.60 to 9.60
	2019	323	36.95 to 36.95	11,927	0.00 to 0.00	1.11	19.54 to 19.54
	2018	353	30.91 to 30.91	10,921	0.00 to 0.00	0.77	-10.84 to -10.84
	2017	389	34.67 to 34.67	13,495	0.00 to 0.00	0.97	11.43 to 11.43
	2016	453	31.12 to 31.12	14,082	0.00 to 0.00	1.14	24.02 to 24.02

64 of 69

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2020

7. Unit Values (continued):

	At December 31,				For the years and periods ended December 31,
Sub-account	Year	Units (000s)	Unit Fair Value Highest to Lowest (a)	Assets (000s)	Expense Ratio Highest to Lowest (b)	Investment Income Ratio (c)	Total Return Highest to Lowest (d)
Mid Value Trust Series NAV(*)	2020	560	$ 62.43 to $ 62.43	$ 34,982	0.00 % to 0.00 %	1.76 %	9.72 % to 9.72 %
	2019	579	56.90 to 56.90	32,936	0.00 to 0.00	1.20	19.49 to 19.49
	2018	566	47.62 to 47.62	26,967	0.00 to 0.00	0.85	-10.68 to -10.68
	2017	542	53.32 to 53.32	28,889	0.00 to 0.00	1.06	11.46 to 8.00
	2016	560	47.84 to 47.84	26,795	0.00 to 0.00	1.29	24.09 to 24.09
Money Market Trust Series I(*)	2020	1,104	25.78 to 25.78	28,435	0.00 to 0.00	0.28	0.30 to 0.30
	2019	1,034	25.70 to 25.70	26,542	0.00 to 0.00	1.92	1.94 to 1.94
	2018	1,184	25.21 to 25.21	29,833	0.00 to 0.00	1.54	1.54 to 1.54
	2017	1,046	24.83 to 24.83	25,942	0.00 to 0.00	0.58	0.59 to 0.59
	2016	1,421	24.69 to 24.69	35,040	0.00 to 0.00	0.07	0.08 to 0.08
Money -Market Trust Series NAV(*)	2020	13,093	10.46 to 10.46	137,081	0.00 to 0.00	0.29	0.33 to 0.33
	2019	9,668	10.43 to 10.43	100,918	0.00 to 0.00	1.97	1.97 to 1.97
	2018	10,003	10.23 to 10.23	102,375	0.00 to 0.00	1.59	1.60 to 1.60
	2017	9,104	10.07 to 10.07	91,727	0.00 to 0.00	0.63	0.61 to 0.42
	2016	11,007	10.00 to 10.00	110,182	0.00 to 0.00	0.16	0.05 to 0.05
Opportunistic Fixed Income Trust Series I(*)	2020	122	39.43 to 39.43	4,829	0.00 to 0.00	3.89	13.79 to 13.79
	2019	134	34.65 to 34.65	4,632	0.00 to 0.00	6.37	6.38 to 6.38
	2018	142	32.57 to 32.57	4,624	0.00 to 0.00	2.67	-1.90 to -1.90
	2017	148	33.20 to 33.20	4,904	0.00 to 0.00	2.21	8.75 to 8.75
	2016	169	30.53 to 30.53	5,168	0.00 to 0.00	0.00	3.05 to 3.05
Opportunistic Fixed Income Trust Series NAV(*)	2020	877	39.68 to 39.68	34,819	0.00 to 0.00	3.85	13.90 to 13.90
	2019	1,029	34.84 to 34.84	35,845	0.00 to 0.00	6.51	6.37 to 6.37
	2018	1,106	32.75 to 32.75	36,212	0.00 to 0.00	2.82	-1.74 to -1.74
	2017	864	33.33 to 33.33	28,800	0.00 to 0.00	2.38	8.71 to 3.58
	2016	874	30.66 to 30.66	26,791	0.00 to 0.00	0.00	3.15 to 3.15
PIMCO All Asset	2020	1,539	29.30 to 20.76	32,487	0.00 to 0.00	4.66	7.74 to 7.74
	2019	1,748	27.19 to 19.26	34,209	0.00 to 0.00	2.60	11.44 to 11.44
	2018	1,851	24.40 to 17.29	32,594	0.00 to 0.00	2.93	-5.59 to -5.59
	2017	1,614	25.85 to 18.31	30,167	0.00 to 0.00	4.49	13.19 to 6.12
	2016	1,370	22.84 to 16.18	22,914	0.00 to 0.00	2.31	12.59 to 12.59
Real Estate Securities Trust Series I(*)	2020	95	228.33 to 228.33	21,742	0.00 to 0.00	2.00	-5.64 to -5.64
	2019	104	241.98 to 241.98	25,156	0.00 to 0.00	2.07	29.40 to 29.40
	2018	119	187.00 to 187.00	22,169	0.00 to 0.00	1.65	-3.46 to -3.46
	2017	138	193.71 to 193.71	26,664	0.00 to 0.00	0.52	6.24 to 6.24
	2016	152	182.34 to 182.34	27,761	0.00 to 0.00	3.34	6.92 to 6.92
Real Estate Securities Trust Series NAV(*)	2020	302	191.60 to 191.60	57,956	0.00 to 0.00	2.16	-5.58 to -5.58
	2019	293	202.92 to 202.92	59,531	0.00 to 0.00	2.17	29.47 to 29.47
	2018	282	156.74 to 156.74	44,153	0.00 to 0.00	1.64	-3.43 to -3.43
	2017	327	162.30 to 162.30	53,030	0.00 to 0.00	0.57	6.26 to 1.60
	2016	347	152.74 to 152.74	53,069	0.00 to 0.00	3.56	6.96 to 6.96
Science & Technology Trust Series I(*)	2020	325	119.52 to 119.52	38,807	0.00 to 0.00	0.00	57.46 to 57.46
	2019	362	75.91 to 75.91	27,445	0.00 to 0.00	0.12	38.06 to 38.06
	2018	390	54.98 to 54.98	21,429	0.00 to 0.00	0.00	-0.61 to -0.61
	2017	469	55.32 to 55.32	25,957	0.00 to 0.00	0.05	41.13 to 41.13
	2016	431	39.20 to 39.20	16,892	0.00 to 0.00	0.00	8.39 to 8.39
Science & Technology Trust Series NAV(*)	2020	775	95.00 to 95.00	73,605	0.00 to 0.00	0.00	57.58 to 57.58
	2019	752	60.29 to 60.29	45,338	0.00 to 0.00	0.17	38.09 to 38.09
	2018	728	43.66 to 43.66	31,798	0.00 to 0.00	0.00	-0.57 to -0.57
	2017	646	43.91 to 43.91	28,380	0.00 to 0.00	0.09	41.21 to 14.63
	2016	631	31.10 to 31.10	19,631	0.00 to 0.00	0.00	8.41 to 8.41
Select Bond Trust Series I(*)	2020	235	14.14 to 14.14	3,322	0.00 to 0.00	3.01	9.08 to 9.08
	2019	222	12.96 to 12.96	2,872	0.00 to 0.00	2.60	8.94 to 8.94
	2018	258	11.90 to 11.90	3,069	0.00 to 0.00	2.64	-0.43 to -0.43
	2017	301	11.95 to 11.95	3,592	0.00 to 0.00	2.82	3.67 to 3.67
	2016	331	11.52 to 11.52	3,815	0.00 to 0.00	3.73	3.06 to 3.06
Select Bond Trust Series NAV(*)	2020	2,039	14.20 to 14.20	28,951	0.00 to 0.00	3.13	9.13 to 9.13
	2019	1,998	13.01 to 13.01	25,990	0.00 to 0.00	2.70	9.01 to 9.01
	2018	2,018	11.94 to 11.94	24,089	0.00 to 0.00	2.92	-0.38 to -0.38
	2017	1,946	11.98 to 11.98	23,319	0.00 to 0.00	2.87	3.65 to 0.85
	2016	1,730	11.56 to 11.56	19,996	0.00 to 0.00	3.66	3.19 to 3.19
Short Term Government Income Trust Series I(*)	2020	510	11.68 to 11.68	5,960	0.00 to 0.00	1.71	3.60 to 3.60
	2019	468	11.27 to 11.27	5,271	0.00 to 0.00	1.70	3.39 to 3.39
	2018	487	10.90 to 10.90	5,315	0.00 to 0.00	1.98	0.84 to 0.84
	2017	577	10.81 to 10.81	6,242	0.00 to 0.00	1.41	0.57 to 0.57
	2016	541	10.75 to 10.75	5,814	0.00 to 0.00	1.69	0.57 to 0.57

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2020

7. Unit Values (continued):

	At December 31,					For the years and periods ended December 31,
Sub-account	Year		Units (000s)	Unit Fair Value Highest to Lowest (a)	Assets (000s)	Expense Ratio Highest to Lowest (b)	Investment Income Ratio (c)	Total Return Highest to Lowest (d)
Short Term Government Income Trust Series NAV(*)		2020	2,560	$ 11.74 to $ 11.74	$ 30,067	0.00 % to 0.00 %	1.83 %	3.65 % to 3.65 %
		2019	2,553	11.33 to 11.33	28,925	0.00 to 0.00	1.92	3.44 to 3.44
		2018	1,986	10.95 to 10.95	21,751	0.00 to 0.00	2.19	0.89 to 0.89
		2017	1,796	10.86 to 10.86	19,499	0.00 to 0.00	1.48	0.62 to -0.20
		2016	1,541	10.79 to 10.79	16,626	0.00 to 0.00	1.83	0.63 to 0.63
Small Cap Index Trust Series I(*)		2020	185	56.74 to 56.74	10,517	0.00 to 0.00	1.37	19.29 to 19.29
		2019	218	47.57 to 47.57	10,376	0.00 to 0.00	0.97	25.05 to 25.05
		2018	240	38.04 to 38.04	9,148	0.00 to 0.00	0.96	-11.42 to -11.42
		2017	257	42.95 to 42.95	11,035	0.00 to 0.00	0.45	14.39 to 14.39
		2016	256	37.55 to 37.55	9,614	0.00 to 0.00	1.15	20.98 to 20.98
Small Cap Index Trust Series NAV(*)		2020	1,248	45.40 to 45.40	56,674	0.00 to 0.00	1.50	19.32 to 19.32
		2019	1,170	38.05 to 38.05	44,522	0.00 to 0.00	1.05	25.07 to 25.07
		2018	1,093	30.42 to 30.42	33,259	0.00 to 0.00	1.01	-11.31 to -11.31
		2017	1,034	34.30 to 34.30	35,452	0.00 to 0.00	0.51	14.43 to 8.89
		2016	956	29.98 to 29.98	28,653	0.00 to 0.00	1.27	21.02 to 21.02
Small Cap Opportunities Trust Series I(*)		2020	495	59.02 to 59.02	29,188	0.00 to 0.00	0.71	9.88 to 9.88
		2019	544	53.71 to 53.71	29,196	0.00 to 0.00	0.39	25.54 to 25.54
		2018	600	42.79 to 42.79	25,669	0.00 to 0.00	0.42	-13.84 to -13.84
		2017	677	49.66 to 49.66	33,643	0.00 to 0.00	0.41	11.07 to 11.07
		2016	762	44.71 to 44.71	34,074	0.00 to 0.00	0.46	19.47 to 19.47
Small Cap Opportunities Trust Series NAV(*)		2020	780	29.15 to 29.15	22,742	0.00 to 0.00	0.79	9.93 to 9.93
		2019	754	26.52 to 26.52	19,987	0.00 to 0.00	0.46	25.60 to 25.60
		2018	747	21.11 to 21.11	15,784	0.00 to 0.00	0.45	-13.81 to -13.81
		2017	806	24.50 to 24.50	19,736	0.00 to 0.00	0.46	11.18 to 8.65
		2016	797	22.03 to 22.03	17,570	0.00 to 0.00	0.53	19.51 to 19.51
Small Cap Stock Trust Series I(*)		2020	100	64.63 to 64.63	6,441	0.00 to 0.00	0.00	51.55 to 51.55
		2019	55	42.64 to 42.64	2,345	0.00 to 0.00	0.00	38.02 to 38.02
		2018	64	30.90 to 30.90	1,990	0.00 to 0.00	0.00	-5.19 to -5.19
		2017	74	32.59 to 32.59	2,426	0.00 to 0.00	0.00	26.46 to 26.46
		2016	85	25.77 to 25.77	2,196	0.00 to 0.00	0.00	2.29 to 2.29
Small Cap Stock Trust Series NAV(*)		2020	580	76.89 to 76.89	44,619	0.00 to 0.00	0.00	51.62 to 51.62
		2019	585	50.71 to 50.71	29,683	0.00 to 0.00	0.00	38.10 to 38.10
		2018	565	36.72 to 36.72	20,749	0.00 to 0.00	0.00	-5.22 to -5.22
		2017	600	38.74 to 38.74	23,254	0.00 to 0.00	0.00	26.70 to 10.81
		2016	565	30.58 to 30.58	17,276	0.00 to 0.00	0.00	2.27 to 2.27
Small Cap Value Trust Series I(*)		2020	72	31.89 to 31.89	2,302	0.00 to 0.00	0.98	-6.70 to -6.70
		2019	88	34.18 to 34.18	3,003	0.00 to 0.00	0.58	26.52 to 26.52
		2018	104	27.01 to 27.01	2,814	0.00 to 0.00	0.67	-12.50 to -12.50
		2017	123	30.87 to 30.87	3,783	0.00 to 0.00	0.84	3.73 to 3.73
		2016	177	29.76 to 29.76	5,266	0.00 to 0.00	0.68	22.67 to 22.67
Small Cap Value Trust Series NAV(*)		2020	470	89.94 to 89.94	42,278	0.00 to 0.00	1.23	-6.68 to -6.68
		2019	401	96.38 to 96.38	38,641	0.00 to 0.00	0.65	26.62 to 26.62
		2018	402	76.12 to 76.12	30,610	0.00 to 0.00	0.74	-12.45 to -12.45
		2017	414	86.94 to 86.94	36,029	0.00 to 0.00	1.03	6.06 to 3.79
		2016	406	83.77 to 83.77	34,010	0.00 to 0.00	0.79	22.68 to 22.68
Small Company Value Trust Series I(*)		2020	227	56.99 to 56.99	12,910	0.00 to 0.00	0.30	9.25 to 9.25
		2019	250	52.17 to 52.17	13,032	0.00 to 0.00	0.86	25.53 to 25.53
		2018	277	41.56 to 41.56	11,494	0.00 to 0.00	0.37	-12.94 to -12.94
		2017	302	47.74 to 47.74	14,425	0.00 to 0.00	0.22	11.49 to 11.49
		2016	381	42.82 to 42.82	16,325	0.00 to 0.00	0.82	32.31 to 32.31
Small Company Value Trust Series NAV(*)		2020	1,049	38.04 to 38.04	39,910	0.00 to 0.00	0.36	9.25 to 9.25
		2019	909	34.82 to 34.82	31,655	0.00 to 0.00	0.92	25.65 to 25.65
		2018	915	27.71 to 27.71	25,361	0.00 to 0.00	0.41	-12.93 to -12.93
		2017	858	31.83 to 31.83	27,311	0.00 to 0.00	0.25	11.58 to 9.05
		2016	844	28.53 to 28.53	24,090	0.00 to 0.00	0.87	32.33 to 32.33
Strategic Income Opportunities Trust Series I(*)		2020	214	33.19 to 33.19	7,113	0.00 to 0.00	1.66	8.59 to 8.59
		2019	227	30.56 to 30.56	6,951	0.00 to 0.00	2.71	10.91 to 10.91
		2018	278	27.56 to 27.56	7,670	0.00 to 0.00	3.70	-5.03 to -5.03
		2017	316	29.02 to 29.02	9,154	0.00 to 0.00	3.20	5.59 to 5.59
		2016	307	27.48 to 27.48	8,445	0.00 to 0.00	2.36	5.12 to 5.12
Strategic Income Opportunities Trust Series NAV(*)		2020	1,602	24.69 to 24.69	39,533	0.00 to 0.00	1.76	8.61 to 8.61
		2019	1,557	22.73 to 22.73	35,396	0.00 to 0.00	2.82	11.00 to 11.00
		2018	1,610	20.48 to 20.48	32,957	0.00 to 0.00	4.07	-5.00 to -5.00
		2017	1,486	21.56 to 21.56	32,035	0.00 to 0.00	3.34	5.66 to 2.07
		2016	1,317	20.40 to 20.40	26,859	0.00 to 0.00	2.48	5.19 to 5.19

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2020

7. Unit Values (continued):

	At December 31,				For the years and periods ended December 31,
Sub-account	Year	Units (000s)	Unit Fair Value Highest to Lowest (a)	Assets (000s)	Expense Ratio Highest to Lowest (b)	Investment Income Ratio (c)	Total Return Highest to Lowest (d)
Total Bond Market Series Trust NAV(*)	2020	1,458	$ 29.10 to $ 29.10	$ 42,435	0.00 % to 0.00 %	2.45 %	7.38 % to 7.38 %
	2019	1,179	27.10 to 27.10	31,950	0.00 to 0.00	2.43	8.30 to 8.30
	2018	1,072	25.02 to 25.02	26,819	0.00 to 0.00	2.82	-0.24 to -0.24
	2017	972	25.08 to 25.08	24,385	0.00 to 0.00	3.06	3.34 to 0.84
	2016	804	24.27 to 24.27	19,505	0.00 to 0.00	2.76	2.45 to 2.45
Total Stock Market Index Trust Series I(*)	2020	381	47.86 to 47.86	18,223	0.00 to 0.00	1.77	21.44 to 21.44
	2019	417	39.41 to 39.41	16,448	0.00 to 0.00	1.57	29.63 to 29.63
	2018	461	30.40 to 30.40	14,004	0.00 to 0.00	1.15	-5.70 to -5.70
	2017	503	32.24 to 32.24	16,221	0.00 to 0.00	1.59	20.59 to 20.59
	2016	250	26.73 to 26.73	6,683	0.00 to 0.00	1.49	12.38 to 12.38
Total Stock Market Index Trust Series NAV(*)	2020	606	159.85 to 159.85	96,927	0.00 to 0.00	1.84	21.50 to 21.50
	2019	582	131.56 to 131.56	76,514	0.00 to 0.00	1.66	29.70 to 29.70
	2018	570	101.44 to 101.44	57,849	0.00 to 0.00	1.25	-5.66 to -5.66
	2017	570	107.52 to 107.52	61,254	0.00 to 0.00	1.49	20.65 to 9.95
	2016	436	89.11 to 89.11	38,852	0.00 to 0.00	1.55	12.38 to 12.38
Ultra Short Term Bond Trust Series I(*)	2020	150	10.78 to 10.78	1,619	0.00 to 0.00	1.95	1.46 to 1.46
	2019	143	10.63 to 10.63	1,515	0.00 to 0.00	1.97	3.12 to 3.12
	2018	127	10.31 to 10.31	1,312	0.00 to 0.00	1.49	1.40 to 1.40
	2017	177	10.17 to 10.17	1,798	0.00 to 0.00	1.60	0.66 to 0.66
	2016	121	10.10 to 10.10	1,217	0.00 to 0.00	1.83	0.52 to 0.52
Ultra Short Term Bond Trust Series NAV(*)	2020	878	10.85 to 10.85	9,525	0.00 to 0.00	2.05	1.62 to 1.62
	2019	831	10.68 to 10.68	8,873	0.00 to 0.00	2.06	3.08 to 3.08
	2018	649	10.36 to 10.36	6,727	0.00 to 0.00	1.94	1.53 to 1.53
	2017	510	10.20 to 10.20	5,199	0.00 to 0.00	1.72	0.62 to 0.27
	2016	386	10.14 to 10.14	3,917	0.00 to 0.00	1.57	0.67 to 0.67

67 of 69

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2020

7. Unit Values (continued):

(*) Sub-account that invests in affiliated Trust.

(a) As the unit fair value is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract unit values are not within the ranges presented.

(b) These ratios represent the annualized contract expenses of the separate account, consisting primarily of the items known as “Revenue from underlying fund (12b-1, STA, Other)” and “Revenue from Sub-account” (formerly referred to as the administrative maintenance charges and sales and service fees (AMC and SSF)). The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to unitholder accounts through the redemption of units and expenses of the underlying fund are excluded.

(c) These ratios represent the distributions from net investment income received by the sub-account from the underlying Portfolio, net of management fees assessed by the portfolio manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against policyholder accounts either through the reductions in the unit values or the redemptions of units. The recognition of investment income by the sub-account is affected by the timing of the declaration of dividends by the underlying Portfolio in which the sub-accounts invest.

(d) These ratios, represent the total return for the periods indicated, including changes in the value of the underlying Portfolio, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options indicated in footnote 1 with a date notation, if any, denote the effective date of that investment option in the variable account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period. For closed sub-accounts, the total return is calculated from the beginning of the reporting period to the date the sub-account closed. As the total return is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract total returns are not within the ranges presented.

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

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2020

8. Diversification Requirements

The Internal Revenue Service has issued regulations under Section 817(h) of the Internal Revenue Code (“the Code”). Under the provisions of Section 817(h) of the Code, a Contract will not be treated as a variable life contract for federal tax purposes for any period for which the investments of the Account on which the contract is based are not adequately diversified. The Code provides that the “adequately diversified” requirement may be met if the underlying investments satisfy either a statutory safe harbor test or diversification requirement set forth in regulations issued by the Secretary of the Treasury. The Company believes that the Account satisfies the current requirements of the regulations, and the Account will continue to meet such requirements.

9. Contract Charges

The 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-accounts and are reflected as terminations.

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